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CHIMERA INVESTMENT CORPORATION RELEASES 4TH QUARTER 2017 EARNINGS

CIM | February 14, 2018

CHIMERA INVESTMENT CORPORATION RELEASES 4TH QUARTER 2017 EARNINGS

4^TH QUARTER GAAP EARNINGS OF $0.52 PER COMMON SHARE
4^TH QUARTER CORE EARNINGS⁽¹⁾ OF $0.62 PER COMMON SHARE
FULL YEAR GAAP EARNINGS OF $2.61 PER COMMON SHARE
FULL YEAR CORE EARNINGS⁽¹⁾ OF $2.34 PER COMMON SHARE
GAAP BOOK VALUE OF $16.85 PER COMMON SHARE

Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the fourth quarter ended December 31, 2017. The Company’s GAAP net income fourth quarter and full year ended December 31, 2017 was $98 million or $0.52 per common share and $491 million or $2.61 per common share respectively. Core earnings⁽¹⁾ for the fourth quarter and full year ended December 31, 2017 were $116 million or $0.62 and $440 million or $2.34 per common share respectively. Economic return on book value for the fourth quarter was 2.6%.⁽²⁾ The Company sponsored one unrated mortgage loan securitization during the fourth quarter for $1.1 billion and also incurred $5.2 million in securitization deal related expenses.

“2017 was another good year for Chimera”, said Matthew Lambiase, Chimera’s CEO and President. “Housing fundamentals remain favorable, which should continue to benefit our investment portfolio. During the fourth quarter the Company purchased approximately $704 million in loans bringing loan purchases for the year to $6.5 billion. Chimera generated an 18.8%⁽²⁾ economic return on book value for the year.”


(1)		Core earnings is a non-GAAP measure. See additional discussion on page 5.
(2)		Economic return on book value is based on the change in GAAP book value per common share plus the dividend declared per common share.

Other Information

Chimera Investment Corporation is a publicly traded real estate investment trust, or REIT, that is primarily engaged in real estate finance. We were incorporated in Maryland on June 1, 2007 and commenced operations on November 21, 2007. We invest, either directly or indirectly through our subsidiaries, in RMBS, residential mortgage loans, Agency CMBS, commercial mortgage loans, real estate-related securities and various other asset classes. We have elected and believe that we are organized and operate in a manner that enables us to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code.

Please visit www.chimerareit.com and click on Investor Relations for additional information about us.


CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share and per share data)
	December 31, 2017			December 31, 2016
Assets:
Cash and cash equivalents	$	63,569		$	177,714
Non-Agency RMBS, at fair value	2,851,316			3,330,063
Agency MBS, at fair value	4,364,828			4,167,754
Loans held for investment, at fair value	13,678,263			8,753,653
Accrued interest receivable	100,789			79,697
Other assets	114,391			166,350
Derivatives, at fair value, net	48,914			9,677
Total assets ⁽¹⁾	$	21,222,070		$	16,684,908
Liabilities:
Repurchase agreements ($8.8 billion and $7.0 billion, pledged as collateral, respectively)	$	7,250,452		$	5,600,903
Securitized debt, collateralized by Non-Agency RMBS ($1.6 billion and $1.8 billion pledged as collateral, respectively)	205,780			334,124
Securitized debt at fair value, collateralized by loans held for investment ($13.3 billion and $8.8 billion pledged as collateral, respectively)	9,388,657			6,941,097
Payable for investments purchased	567,440			520,532
Accrued interest payable	61,888			48,670
Dividends payable	95,365			97,005
Accounts payable and other liabilities	17,191			16,694
Derivatives, at fair value	320			2,350
Total liabilities ⁽¹⁾	$	17,587,093		$	13,561,375

Stockholders' Equity:
Preferred Stock, par value of $0.01 per share, 100,000,000 shares authorized:
8.00% Series A cumulative redeemable: 5,800,000 shares issued and outstanding, respectively ($145,000 liquidation preference)	$	58		$	58
8.00% Series B cumulative redeemable: 13,000,000 and 0 shares issued and outstanding, respectively ($325,000 liquidation preference)	130			—
Common stock: par value $0.01 per share; 300,000,000 shares authorized, 187,809,288 and 187,739,634 shares issued and outstanding, respectively	1,878			1,877
Additional paid-in-capital	3,826,691			3,508,779
Accumulated other comprehensive income	796,902			718,106
Cumulative earnings	2,967,852			2,443,184
Cumulative distributions to stockholders	(3,958,534		)	(3,548,471		)
Total stockholders' equity	$	3,634,977		$	3,123,533
Total liabilities and stockholders' equity	$	21,222,070		$	16,684,908

(1)		The Company's consolidated statements of financial condition include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (Chimera Investment Corporation). As of December 31, 2017 and December 31, 2016, total assets of consolidated VIEs were $14,987,464 and $10,761,954, respectively, and total liabilities of consolidated VIEs were $9,631,820 and $7,302,905, respectively.


CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
	For the Year Ended
	December 31, 2017			December 31, 2016			December 31, 2015
Net interest income:
Interest income ⁽¹⁾	$	1,138,758		$	934,068		$	872,737
Interest expense ⁽²⁾	532,748			347,857			259,365
Net interest income	606,010			586,211			613,372
Other-than-temporary impairments:
Total other-than-temporary impairment losses	(5,169		)	(9,589		)	(8,700		)
Portion of loss recognized in other comprehensive income	(56,687		)	(48,398		)	(58,744		)
Net other-than-temporary credit impairment losses	(61,856		)	(57,987		)	(67,444		)
Other investment gains (losses):
Net unrealized gains (losses) on derivatives	47,976			50,093			67,385
Realized gains (losses) on terminations of interest rate swaps	(16,143		)	(60,616		)	(98,949		)
Net realized gains (losses) on derivatives	(25,645		)	(44,886		)	(83,073		)
Net gains (losses) on derivatives	6,188			(55,409		)	(114,637		)
Net unrealized gains (losses) on financial instruments at fair value	111,410			59,552			(158,433		)
Net realized gains (losses) on sales of investments	9,123			18,155			77,074
Gain (loss) on deconsolidation	—			—			(256		)
Gains (losses) on extinguishment of debt	(35,274		)	(477		)	(5,930		)
Total other gains (losses)	91,447			21,821			(202,182		)

Other income:
Other income	—			95,000			—
Total other income	—			95,000			—

Other expenses:
Management fees (net of recoveries)	—			—			17,703
Compensation and benefits	30,212			26,901			10,544
General and administrative expenses	17,650			17,516			31,633
Servicing fees	41,690			31,178			25,244
Deal expenses	21,273			17,424			8,272
Total other expenses	110,825			93,019			93,396
Income (loss) before income taxes	524,776			552,026			250,350
Income taxes	108			83			1
Net income (loss)	$	524,668		$	551,943		$	250,349

Dividend on preferred stock	33,484			2,449			—

Net income (loss) available to common shareholders	$	491,184		$	549,494		$	250,349

Net income (loss) per share available to common shareholders:
Basic	$	2.62		$	2.93		$	1.25
Diluted	$	2.61		$	2.92		$	1.25

Weighted average number of common shares outstanding:
Basic	187,780,355			187,728,634			199,563,196
Diluted	188,287,320			188,024,838			199,650,177

Dividends declared per share of common stock	$	2.00		$	2.44		$	1.92

(1)		Includes interest income of consolidated VIEs of $914,022, $678,623 and $575,715 for the years ended December 31, 2017, 2016 and 2015, respectively.
(2)		Includes interest expense of consolidated VIEs of $390,858, $249,708 and $191,922 for the years ended December 31, 2017, 2016 and 2015, respectively.


CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands, except share and per share data)

	For the Year Ended
	December 31, 2017			December 31, 2016			December 31, 2015
Comprehensive income (loss):
Net income (loss)	$	524,668		$	551,943		$	250,349
Other comprehensive income:
Unrealized gains (losses) on available-for-sale securities, net	24,218			(88,527		)	(263,049		)
Reclassification adjustment for net losses included in net income for other-than-temporary credit impairment losses	61,856			57,987			67,444
Reclassification adjustment for net realized losses (gains) included in net income	(7,278		)	(25,145		)	(77,284		)
Other comprehensive income (loss)	78,796			(55,685		)	(272,889		)
Comprehensive income (loss) before preferred stock dividends	$	603,464		$	496,258		$	(22,540	)
Dividends on preferred stock	$	33,484		$	2,449		$	—
Comprehensive income (loss) available to common stock shareholders	$	569,980		$	493,809		$	(22,540	)

Core earnings

Core earnings is a non-GAAP measure and is defined as GAAP net income excluding unrealized gains on the aggregate portfolio, impairment losses, realized gains on sales of investments, realized gains or losses on futures, realized gains or losses on swap terminations, gain on deconsolidation, extinguishment of debt and certain other non-recurring gains or losses. As defined, core earnings include interest income and expense as well as realized losses on interest rate swaps used to hedge interest rate risk. Management believes that the presentation of core earnings is useful to investors because it can provide a useful measure of comparability to our other REIT peers, but has important limitations. We believe core earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, core earnings should not be viewed in isolation and is not a substitute for net income or net income per basic share computed in accordance with GAAP.

The following table provides GAAP measures of net income and net income per basic share available to common stockholders for the periods presented and details with respect to reconciling the line items to core earnings and related per average basic common share amounts:


	For the Quarters Ended
	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
	(dollars in thousands, except per share data)
GAAP Net income available to common stockholders	$	98,208		$	129,832		$	105,617		$	157,524		$	219,454
Adjustments:
Net other-than-temporary credit impairment losses	18,179			11,468			13,509			18,701			14,780
Net unrealized (gains) losses on derivatives	(28,074		)	(9,204		)	(5,802		)	(4,896		)	(101,475		)
Net unrealized (gains) losses on financial instruments at fair value	47,637			(19,042		)	(67,762		)	(72,243		)	20,664
Net realized (gains) losses on sales of investments	586			(1		)	(4,541		)	(5,167		)	(11,121		)
(Gains) losses on extinguishment of debt	(12,742		)	1			48,014			—			(1,334		)
Realized (gains) losses on terminations of interest rate swaps	—			—			16,143			—			—
Net realized (gains) losses on Futures ⁽¹⁾	(8,204		)	3,267			6,914			2,084			(19,628		)
Core Earnings	$	115,590		$	116,321		$	112,092		$	96,003		$	121,340

GAAP net income per basic common share	$	0.52		$	0.69		$	0.56		$	0.84		$	1.17
Core earnings per basic common share⁽²⁾	$	0.62		$	0.62		$	0.60		$	0.51		$	0.65

(1)		Included in net realized gains (losses) on derivatives in the Consolidated Statements of Operations.
(2)		We note that core and taxable earnings will typically differ, and may materially differ, due to differences on realized gains and losses on investments and related hedges, credit loss recognition, timing differences in premium amortization, accretion of discounts, equity compensation and other items.

The following tables provide a summary of the Company’s MBS portfolio at December 31, 2017 and December 31, 2016.

	December 31, 2017
	Principal or Notional Value at Period-End (dollars in thousands)		Weighted Average Amortized Cost Basis		Weighted Average Fair Value		Weighted Average Coupon		Weighted Average Yield at Period-End ⁽¹⁾
Non-Agency RMBS
Senior	$	2,733,926	$	54.04	$	81.62	4.6	%	16.7	%
Senior, interest-only	4,862,461		5.41		4.34		1.3	%	8.0	%
Subordinated	501,455		66.77		80.01		4.1	%	9.6	%
Subordinated, interest-only	201,378		3.66		3.89		0.8	%	11.8	%
Agency MBS
Residential pass-through	2,227,128		105.53		104.27		3.8	%	2.9	%
Commercial pass-through	1,894,594		102.26		102.31		3.6	%	3.2	%
Interest-only	3,021,840		3.68		3.45		0.7	%	3.4	%

	December 31, 2016
	Principal or Notional Value at Period-End (dollars in thousands)		Weighted Average Amortized Cost Basis		Weighted Average Fair Value		Weighted Average Coupon		Weighted Average Yield at Period-End ⁽¹⁾
Non-Agency RMBS
Senior	$	3,190,947	$	55.76	$	78.69	4.3	%	15.5	%
Senior, interest-only	5,648,339		5.18		4.49		1.5	%	11.7	%
Subordinated	673,259		70.83		82.21		3.8	%	9.2	%
Subordinated, interest-only	266,927		5.20		4.50		1.1	%	13.5	%
Agency MBS
Residential pass-through	2,594,570		105.78		104.29		3.9	%	3.0	%
Commercial pass-through	1,331,543		102.64		98.91		3.6	%	2.9	%
Interest-only	3,356,491		4.53		4.31		0.8	%	3.5	%

(1)		Bond Equivalent Yield at period end.

At December 31, 2017 and December 31, 2016, the repurchase agreements collateralized by MBS had the following remaining maturities.


	December 31, 2017		December 31, 2016
	(dollars in thousands)
Overnight	$	—	$	—
1 to 29 days	5,092,458		2,947,604
30 to 59 days	1,206,769		958,956
60 to 89 days	592,865		407,625
90 to 119 days	—		559,533
Greater than or equal to 120 days	358,360		727,185
Total	$	7,250,452	$	5,600,903

The following table summarizes certain characteristics of our portfolio at December 31, 2017 and December 31, 2016.


	For the Year Ended			For the Year Ended
	December 31, 2017			December 31, 2016
Interest earning assets at period-end ⁽¹⁾	$	20,894,407		$	16,251,470
Interest bearing liabilities at period-end	$	16,844,889		$	12,876,124
GAAP Leverage at period-end	4.6:1			4.1:1
GAAP Leverage at period-end (recourse)	2.0:1			1.8:1
Portfolio Composition, at amortized cost
Non-Agency RMBS	5.9		%	9.0		%
Senior	2.9		%	3.9		%
Senior, interest only	1.3		%	1.9		%
Subordinated	1.7		%	3.1		%
Subordinated, interest only	0.0		%	0.1		%
RMBS transferred to consolidated VIEs	4.6		%	7.6		%
Agency MBS	22.2		%	27.7		%
Residential	11.8		%	17.8		%
Commercial	9.8		%	8.9		%
Interest-only	0.6		%	1.0		%
Loans held for investment	67.3		%	55.7		%
Fixed-rate percentage of portfolio	93.7		%	88.4		%
Adjustable-rate percentage of portfolio	6.3		%	11.6		%
Annualized yield on average interest earning assets for the periods ended	6.3		%	6.4		%
Annualized cost of funds on average borrowed funds for the periods ended ⁽²⁾	3.6		%	3.0		%

(1)		Excludes cash and cash equivalents.
(2)		Includes the effect of realized losses on interest rate swaps.

Economic Net Interest Income

Our “Economic net interest income” is a non-GAAP financial measure, that equals interest income, less interest expense and realized losses on our interest rate swaps. Realized losses on our interest rate swaps are the periodic net settlement payments made or received. For the purpose of computing economic net interest income and ratios relating to cost of funds measures throughout this section, interest expense includes net payments on our interest rate swaps, which is presented as a part of Realized gains (losses) on derivatives in our Consolidated Statements of Operations and Comprehensive Income. Interest rate swaps are used to manage the increase in interest paid on repurchase agreements in a rising rate environment. Presenting the net contractual interest payments on interest rate swaps with the interest paid on interest-bearing liabilities reflects our total contractual interest payments. We believe this presentation is useful to investors because it depicts the economic value of our investment strategy by showing actual interest expense and net interest income. Where indicated, interest expense, including interest payments on interest rate swaps, is referred to as economic interest expense. Where indicated, net interest income reflecting interest payments on interest rate swaps, is referred to as economic net interest income.

The following table reconciles the GAAP and non-GAAP measurements reflected in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.

	GAAP Interest Income		GAAP Interest Expense		Net Realized Losses on Interest Rate Swaps		Other ⁽²⁾			Economic Interest Expense		GAAP Net Interest Income		Net Realized Losses on Interest Rate Swaps			Other ^{(1) (2)}			Economic Net Interest Income
For the Year Ended December 31, 2017	$	1,138,758	$	532,748	$	15,450	$	—		$	548,198	$	606,010	$	(15,450	)	$	(1,097	)	$	589,463
For the Year Ended December 31, 2016	$	934,068	$	347,857	$	28,107	$	—		$	375,964	$	586,211	$	(28,107	)	$	(882	)	$	557,222
For the Year Ended December 31, 2015	$	872,737	$	259,365	$	47,227	$	(2,217	)	$	304,375	$	613,372	$	(47,227	)	$	1,218		$	567,363

For the Quarter Ended December 31, 2017	$	301,957	$	144,204	$	4,369	$	—		$	148,573	$	157,753	$	(4,369	)	$	(61	)	$	153,323
For the Quarter Ended September 30, 2017	$	296,813	$	140,358	$	3,489	$	—		$	143,847	$	156,455	$	(3,489	)	$	(167	)	$	152,799
For the Quarter Ended June 30, 2017	$	288,644	$	137,955	$	3,486	$	—		$	141,441	$	150,689	$	(3,486	)	$	(350	)	$	146,853
For the Quarter Ended March 31, 2017	$	251,344	$	110,231	$	4,106	$	—		$	114,337	$	141,113	$	(4,106	)	$	(519	)	$	136,488

(1)		Primarily interest income on cash and cash equivalents.
(2)		Other includes $2 million of deferred financing expenses written off during the quarter ended September 30, 2015.

The table below shows our average earning assets held, interest earned on assets, yield on average interest earning assets, average debt balance, economic interest expense, economic average cost of funds, economic net interest income, and net interest rate spread for the periods presented.

	For the Quarters Ended

	December 31, 2017						December 31, 2016
	(dollars in thousands)						(dollars in thousands)
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Assets:
Interest-earning assets ⁽¹⁾ :
Agency MBS	$	3,847,658	$	28,812	3.0	%	$	3,730,032	$	38,494	4.1	%
Non-Agency RMBS	1,187,349		24,608		8.3	%	1,390,837		32,098		9.2	%
Non-Agency RMBS transferred to consolidated VIEs	940,931		55,916		23.8	%	1,208,217		61,022		20.2	%
Residential mortgage loans held for investment	13,048,375		192,560		5.9	%	8,693,303		129,249		5.9	%
Total	$	19,024,313	$	301,896	6.3	%	$	15,022,389	$	260,863	6.9	%

Liabilities and stockholders' equity:
Interest-bearing liabilities:
Repurchase agreements collateralized by:
Agency MBS ⁽²⁾	$	3,090,155	$	15,651	2.0	%	$	3,199,755	$	11,340	1.4	%
Non-Agency RMBS	497,073		3,896		3.1	%	795,900		5,668		2.9	%
Re-Remic repurchase agreements	867,882		7,193		3.3	%	641,137		4,761		3.0	%
RMBS from loan securitizations	2,573,351		21,236		3.3	%	1,062,276		8,149		3.1	%
Securitized debt, collateralized by Non-Agency RMBS	219,446		3,796		6.9	%	357,422		5,610		6.3	%
Securitized debt, collateralized by loans	9,451,052		96,801		4.1	%	6,982,205		75,360		4.3	%
Total	$	16,698,959	$	148,573	3.6	%	$	13,038,695	$	110,888	3.4	%

Economic net interest income/net interest rate spread			$	153,323	2.7	%			$	149,975	3.6	%

Net interest-earning assets/net interest margin	$	2,325,354			3.2	%	$	1,983,694			3.9	%

Ratio of interest-earning assets to interest bearing liabilities	1.14						1.15

(1)		Interest-earning assets at amortized cost
(2)		Interest includes cash paid on swaps

The table below shows our Net Income, Economic Net Interest Income and Core Earnings, each as a percentage of average equity. Return on average equity is defined as our GAAP net income (loss) as a percentage of average equity. Average equity is defined as the average of Company’s beginning and ending equity balance for the period reported. Economic Net Interest Income is a non-GAAP financial measure, that equals interest income, less interest expense and realized losses on our interest rate swaps. Core Earnings is a non-GAAP measures as defined in previous section.


	Return on Average Equity		Economic Net Interest Income/Average Equity *		Core Earnings/Average Equity
	(Ratios have been annualized)
For the Year Ended December 31, 2017	15.00	%	16.85	%	12.58	%
For the Year Ended December 31, 2016	18.42	%	18.59	%	15.18	%
For the Year Ended December 31, 2015	7.52	%	17.12	%	14.20	%

For the Quarter Ended December 31, 2017	11.82	%	16.85	%	12.70	%
For the Quarter Ended September 30, 2017	15.42	%	16.92	%	12.88	%
For the Quarter Ended June 30, 2017	12.98	%	16.57	%	12.65	%
For the Quarter Ended March 31, 2017	19.63	%	16.46	%	11.57	%

The following table presents changes to Accretable Discount (net of premiums) as it pertains to our Non-Agency RMBS portfolio, excluding premiums on IOs, during the previous five quarters.

	For the Quarters Ended
Accretable Discount (Net of Premiums)	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
	(dollars in thousands)
Balance, beginning of period	$	622,982		$	627,724		$	648,659		$	683,648		$	733,060
Accretion of discount	(39,640		)	(43,502		)	(42,625		)	(43,715		)	(44,427		)
Purchases	(2,914		)	1,723			(108		)	(3,642		)	(33,987		)
Sales and deconsolidation	—			5,792			212			(7,303		)	(2,138		)
Transfers from/(to) credit reserve, net	1,765			31,245			21,586			19,671			31,140
Balance, end of period	$	582,193		$	622,982		$	627,724		$	648,659		$	683,648

Disclaimer

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: the state of credit markets and general economic conditions; changes in interest rates and the market value of our assets; the rates of default or decreased recovery on the mortgages underlying our target assets; the occurrence, extent and timing of credit losses within our portfolio; the credit risk in our underlying assets; declines in home prices; our ability to establish, adjust and maintain appropriate hedges for the risks in our portfolio; the availability and cost of our target assets; our ability to borrow to finance our assets and the associated costs; changes in the competitive landscape within our industry; our ability to manage various operational risks and costs associated with our business; interruptions in or impairments to our communications and information technology systems; our ability to acquire residential mortgage loans and successfully securitize the residential mortgage loans we acquire; our ability to oversee our third party sub-servicers; the impact of any deficiencies in the servicing or foreclosure practices of third parties and related delays in the foreclosure process; our exposure to legal and regulatory claims; legislative and regulatory actions affecting our business; the impact of new or modified government mortgage refinance or principal reduction programs; our ability to maintain our REIT qualification; and limitations imposed on our business due to our REIT status and our exempt status under the Investment Company Act of 1940.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

Readers are advised that the financial information in this press release is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the Company’s independent auditors.