Post-Earnings Review - Chimera Investment

LONDON, August 20, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings report and analysis on Chimera Investment Corp. (NYSE: CIM) as the company featured in the headlines on Monday, August 11, 2014, after reporting its Q2 2014 financial results. The company's GAAP book value per share advanced 2% from March 31, 2014. Meanwhile, its net income improved by $5 million Q-o-Q during the reported period. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

For the second quarter of 2014, Chimera Investment Corp.'s yield on average interest earning assets was 7.84%, compared to 8.80% in the year ago period. The annualized cost of average borrowed funds, including the net interest payments on interest rate swaps, for the reported period decreased to 2.92% from 3.64% in second quarter of 2013. Additionally, the company recorded net interest spread and net interest rate margin of 4.92% and 5.93%, respectively, as compared to 5.16% and 6.59%, respectively in the prior year quarter. The company reported leverage of 2.6:1 with recourse leverage of 2.4:1 as of June 30, 2014, compared to 0.9:1 of leverage and 0.5:1 of recourse leverage as of March 31, 2014 and 1.0:1 of leverage and 0.5:1 of recourse leverage as of December 31, 2013. The free research on CIM can be downloaded as in PDF format at:

http://www.Investor-Edge.com/CIMFreeReport

The increase in Chimera Investment Corp.'s book value reflected favorable market fundamentals for both Agency and Non-Agency RMBS (residential mortgage-backed security) during the reported quarter with the GAAP book value coming at $3.35 per share as of June 30, 2014, up $0.11 per share from $3.24 as of December 31, 2013. Chimera Investment Corp.'s economic book value stood at $3.09 per share as of June 30, 2014, up 10% from $2.82 per share as of December 31, 2013. During the reported period, the company purchased $6 billion of Agency RMBS and deconsolidated portions of a re-securitization. The re-securitization transaction resulted in a $48 million gain for GAAP reporting and approximately $25 million on a tax basis. Meanwhile, the company also purchased $52 million of Non-Agency RMBS and sold $38 million, bringing Non-Agency RMBS purchases to $189 million and sales to $51 million in the first half of 2014. The Non-Agency RMBS purchases made in H1 2014 were primarily focused on Non-Agency senior positions, while the sales were focused on senior Interest Only positions.

In Q2 2014, the company declared a common stock dividend of $0.09 per share and also announced the continuation of $0.09 per share dividend for the third and fourth quarter of 2014. The annualized dividend yield on the company's common stock for Q2 2014 was 11.3%, based on the June 30, 2014 closing price of $3.19. Sign up and read the free analyst's notes on CIM at:

http://www.Investor-Edge.com/CIM-20082014

The New York-based mortgage REIT reported net investment income of $115.30 million in second quarter of 2014 as compared to $149.88 million in the year ago quarter and Bloomberg expectations of $99.95 million. The company's net income stood at $104.77 million, or $0.10 per diluted share in Q2 2014, compared with $143.21 million, or $0.14 per diluted share in prior year period, and Bloomberg consensus estimate of $80 million, or $0.08 per share. Visit Investor-Edge and access the latest research on CIM at:

http://www.Investor-Edge.com/CIMEarningsCoverage

Stock Performance 

A day after the earnings release, Chimera Investment Corp.'s shares lost 1.54% to close Tuesday's session, August 12, 2014, at $3.19. On the last close, Tuesday, August 19, 2014, Chimera Investment Corp.'s shares further edged 0.31% lower to end the day at $3.24, after vacillating between $3.24 and $3.26. A total of 3.53 million shares were traded, which was below its three months average volume of 5.22 million shares. Chimera Investment Corp.'s shares have advanced 0.31% in the previous three trading sessions, 1.57% in the last one month, and 11.63% on YTD basis. The company's shares are trading above their 50-day and 200-day moving averages of $3.20 and $3.07, respectively. The stock traded at a PE ratio of 9.54 and has a Relative Strength Index (RSI) of 59.53.

Sneak Peek to Corporate Insider Trading 

In the last one month, two insiders, namely, Matthew J. Lambiase, Chimera Investment Corp.'s President and CEO, and Robert Colligan, the company's CFO, have bought a combined total of 130,000 shares worth $416,300 at an average price of $3.20. Mr. Lambiase bought 100,000 shares on August 13, 2014, while Mr. Colligan bought 30,000 shares on August 14, 2014. Complimentary in-depth research on CIM is available at:

http://www.Investor-Edge.com/CIMInsiderTrading

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