Chimera Investment Corporation

Greetings and welcome to the Chimera Investment Corporation first quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Tyra Walton, head of Investor Relations. Thank you. You may begin.

Thank you, Operator, and thank you, everyone, for joining us today. I'm Tyra Welton, Head of Investor Relations. This morning, Chimera released its results for the first quarter of 2026. The earnings release and presentation for the quarter are both available on our website at chimeraread.com. Before we begin, I'd like to review the Safe Harbor Statement. Today's remarks may contain forward-looking statements, which are predictions, projections, or other statements about future events. These events are based on current expectations and assumptions that are subject to risks and uncertainties which are outlined in the risk factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements. We encourage you to read the forward-looking statements disclaimers in our earnings release in our quarterly and annual filings. During the call, we may also discuss non-GAAP financial measures. please refer to our SEC filings and earnings supplements for reconciliation to the most comparable gap measures. Additionally, the contents of this conference call may contain time-sensitive information that is accurate only as of the date of this earnings call. We do not undertake and specifically disclaim any obligation to update or revise this information. I will now turn the call over to our President and Chief Executive Officer, Phil Curtis.

Thanks, Tyra. Good morning and welcome to Chimera Investment Corporation's first quarter 2026 earnings call. Joining me on the call are Subra Viswanathan, our Chief Financial Officer, Jack McDowell, our Chief Investment Officer, and Kyle Walker, the President and CEO of Home Express Mortgage. After my remarks, Subra will review the financial results, Jack will review the investment portfolio, and then Kyle will review Home Express's results. We operate in a market where conditions change constantly. can change quickly. Rates move, spreads widen, liquidity tightens, and then rarely in a straight line. This year has been a clear reminder of that reality. During the quarter, Treasury yields moved higher across the curve while the 210s spread flat. Prior to the up-and-down conflict, mortgage rates briefly touched the three-and-a-half-year low, only to reverse higher by 40 basis points as volatility returned. Mortgage basis widened relative to Treasuries and swaps. Equity volatility spiked. at one point doubling before stabilizing. Oil prices moved sharply higher, and at the same time, rate markets alternated between periods of calm and episodes of rapid repricing. Overlaying this, the market expectations for monetary policy shifted meaningfully. At the start of the year, the market anticipated two to three rate cuts in 2026. By quarter end, those expectations had largely dissipated. And in fact, there's now some discussion of the possibility of rate hikes. I highlight these dynamics to underscore a central point. We are operating in a market where uncertainty is not episodic. It's structural. We don't try to predict where the market will be. We focus on being prepared for wherever it goes. Our objective is clear, to build a company that's not dependent on any single market environment. The question then is straightforward. How did we perform in this environment, and how are we positioned going forward? I'll give you a sneak peek. We think we did very well. and believe we're well-positioned to take advantage of opportunities throughout the rest of the year. So let's start with Home Express. Home Express had another strong quarter. Despite volatility, origination volume increased 39% compared to the first quarter of 2025, reaching $884 million. Moreover, they were able to generate $11 million of earnings before taxes, depreciation, and amortization, representing an annualized return on equity of 16.8%. This is what we aim for. growth with discipline, and returns that justify the capital employed. Turning next to our investment portfolio, we continue to reposition the portfolio to unlock value and build more durable earnings. During the quarter, our allocations of loans decreased from 62% to 55%, and our allocation to agency RMBS increased from 15% to 21%. The primary driver for this shift was the redemption of eight securitizations backed by $1.5 billion of season-reperforming loans. We sold $1.2 billion of those loans, generating $195 million in net proceeds, and retained $287 million for current income and future securitization. With an estimated breakeven ROE of just under 8%, the reinvestment of these proceeds has the potential to generate an additional $15 million in annual earnings. The takeaway? We increase earnings power while improving portfolio flexibility. As we look at our portfolio repositioning over the past 15 months, our estimated investment levered returns, including the addition of Home Express, have increased by approximately 20%. Also, since the beginning of the year, we have been purchasing newly originated loans from Home Express. We plan to launch the new SIM Home X securitization program later this quarter or early next. Overall, our portfolio had a very strong quarter. And as a REIT, the real test is our dividend. So how are we doing? First quarter earnings available for distribution EAD was $0.54 per share, which covered the $0.45 dividend by 120%. Over the past 10 quarters, our EAD has exceeded our dividend in nine, missing once by a single penny. Over that same period, we increased the dividend from $0.33 to $0.45 per share, a 36% increase, while maintaining EAD coverage of more than 1.1 times. I want to let that sink in for a minute. We've grown and covered our dividend for the past two and a half years. That consistency is not accidental. It reflects a focus on generating durable earnings. But what's our outlook for the remainder of the year, and how are we positioned? Looking ahead, we expect continued uncertainty, political, geopolitical, and market-driven. But despite that uncertainty, we remain optimistic about the future. We have structured the platform to preserve optionality across origination, investment, and asset management so that we can adapt as conditions evolve. And more than that, we have the capital and the liquidity to take advantage of that optionality. We ended the quarter with $476 million of cash, approximately $200 million of unencumbered assets, and nearly $500 million of equity allocated to agency RMVS. So, as we look over the rest of the year, we believe we have both the liquidity and the flexibility to continue to play offense and act when opportunities arise. Specifically, we will continue to grow and diversify the portfolio, expand originations, build fee-based income, and pursue acquisitions. With that, I'll turn it over to Subra to walk you through the financials.