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CHIMERA INVESTMENT CORP COMMON STOCK Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 18, 2011 02:39PM

CHIMERA INVESTMENT CORP COMMON STOCK (CIM) filed Quarterly Report for the period ended 2011-09-30. Chimera Investment has a market cap of $2.75 billion; its shares were traded at around $2.68 with a P/E ratio of 4.5 and P/S ratio of 4.7. The dividend yield of Chimera Investment stocks is 19.4%.



Highlight of Business Operations:

We had average earning assets of $11.8 billion and $8.8 billion for the quarters ended September 30, 2011 and 2010, respectively, and $11.7 billion and $8.2 billion for the nine months ended September 30, 2011 and 2010, respectively. Our interest income was $212.7 million and $194.8 million for the quarters ended September 30, 2011 and 2010, respectively, and $708.1 million and $571.7 million for the nine months ended September 30, 2011 and 2010, respectively. Economic net interest income increased for the quarter and nine months ended September 30, 2011 as compared to the respective periods ended September 30, 2010 due to the increase in average earning assets over the period. The annualized yield on our portfolio was 7.21% and 8.85% for the quarters ended September 30, 2011 and 2010, respectively, and 8.07% and 9.29% for the nine months ended September 30, 2011 and 2010, respectively. The decrease in the annualized yield is attributed to a decline in weighted average coupon on our portfolio and a decline in the net accretion of discounts.

Our economic net interest income, which equals interest income less interest expense and realized losses on interest rate swaps, totaled $175.4 million and $152.0 million for the quarters ended September 30, 2011 and 2010, respectively, and $592.3 million and $459.1 million for the nine months ended September 30, 2011 and 2010, respectively. Our net interest spread, which equals the yield on our average assets for the period less the economic average cost of funds for the period, was 4.88% and 4.27% for the quarters ended September 30, 2011 and 2010, respectively, and 5.58% and 5.30% for the nine months ended September 30, 2011 and 2010, respectively. We attribute the increase in economic net interest income to the increase in the amount of interest earning assets following our 2010 secondary offerings. We attribute the increase in net interest spread to the increase in discount accretion on our non-Agency RMBS.

Our investing activities used net cash of $2.0 billion and net cash $903.0 million for the nine months ended September 30, 2011 and 2010, respectively. During the nine months ended September 30, 2011 we utilized cash to purchase $3.7 billion in securities which were offset by proceeds from asset sales of $670.9 million and principal repayments of $1.0 billion. During the nine months ended September 30, 2010 we utilized cash to purchase $2.3 billion in securities which were offset by proceeds from asset sales that provided $298.3 million and principal repayments of $1.1 billion. The increase in cash used for investing activities is the result of increasing leverage on the Agency RMBS portfolio.

Read the The complete Report



Stocks Discussed: CIM,
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