Chimera Investment Corporation reported its financial results for the quarter and nine months ended September 30, 2024, highlighting a mixed performance amid changing market conditions. Total assets decreased to $10.45 billion from $10.50 billion at the end of 2023, while total liabilities rose to $7.74 billion from $7.35 billion, indicating a shift in the company's financial structure.
Net interest income for the third quarter of 2024 was $146.0 million, down from $153.7 million in the same quarter of 2023. For the nine months ended September 30, 2024, net interest income totaled $437.0 million, slightly lower than $443.3 million in the prior year. The decline in net interest income was attributed to a decrease in average interest-earning assets, despite an increase in yields on those assets.
The company reported a net income available to common shareholders of $214.5 million for Q3 2024, compared to $208.7 million in Q3 2023. This increase was driven by higher unrealized gains on financial instruments, which rose significantly to $104 million in Q3 2024 from $11 million in the previous year. The net income per share for Q3 2024 was $1.41, a substantial improvement from a loss of $0.22 per share in Q3 2023.
Chimera's investment strategy has evolved, with a notable shift in its portfolio composition. As of September 30, 2024, 84% of its investments were in residential mortgage loans, compared to 91% at the end of 2023. The company also completed a $468 million securitization of seasoned reperforming loans during the quarter, reflecting its ongoing commitment to managing and optimizing its mortgage asset portfolio.
In terms of strategic developments, Chimera announced an agreement to acquire Palisades Group for $30 million, with potential earnouts based on performance. This acquisition is expected to enhance the company's operational capabilities and market position. Additionally, the company has maintained a robust share repurchase program, with $250 million authorized for future buybacks.
The company declared dividends totaling $30 million to common shareholders for Q3 2024, a decrease from $42 million in the same quarter of 2023. However, dividends to preferred stockholders increased, particularly for Series B and D shares, reflecting a commitment to returning value to shareholders.
Overall, Chimera Investment Corporation's financial results for Q3 2024 demonstrate resilience in a challenging market, with strategic acquisitions and a focus on optimizing its investment portfolio amid fluctuating interest rates and economic conditions.
About CHIMERA INVESTMENT CORP
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