Mr. Robert Goodall reports
ATRIUM MORTGAGE INVESTMENT CORPORATION ACHIEVES RECORD Q1 EARNINGS - 16.9% INCREASE OVER PRIOR YEAR
Atrium Mortgage Investment Corp. has released its unaudited financial results for the three-month period ended March 31, 2017.
Highlights for the quarter
- Record earnings of $7.2-million, up 16.9 per cent from the same period last year;
- Basic earnings per share of 25 cents, compared with 23 cents in the same period last year;
- Revenues of $12.0-million, up 18.3 per cent from the same period last year;
- Portfolio of $569-million, up 6.3 per cent from year-end;
- High-quality mortgage portfolio:
- 80.5 per cent of portfolio in first mortgages;
- 89.9 per cent of portfolio is less than 75 per cent loan to value; average loan to value is 61.8 per cent;
- Exposure in Alberta reduced to 5.1 per cent of portfolio.
Interested parties are invited to participate in a conference call with management on Thursday, April 27, 2017, at 4 p.m. ET. Please refer to the call-in information at the end of this news release.
Results of operations
Atrium achieved record results in the quarter, as its assets grew to $565-million. For the three months ended March 31, 2017, mortgage interest and fee revenue totalled $12.0-million, an increase of 18.3 per cent from the prior year.
Net earnings for the three months ended March 31, 2017, were $7.2-million, an increase of 16.9 per cent from the prior year. Basic and diluted earnings per common share were 25 cents and 24 cents, respectively, for the three months ended March 31, 2017, compared with 23-cent basic and diluted earnings per common share for the prior year. Dividends paid to date total 22 cents, with any excess of earnings over dividends for the year to be paid in February, 2018, to shareholders of record on Dec. 29, 2017.
The company had $564-million of mortgages receivable as at March 31, 2017, an increase of 6.3 per cent from the prior year-end. During the quarter, a record $84.7-million of mortgages was advanced, and $51.0-million of mortgages was repaid.
The weighted average interest rate on the mortgage portfolio decreased slightly to 8.46 per cent at March 31, 2017, compared with 8.50 per cent at Dec. 31, 2016.
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(in thousands of dollars, except per-share amounts)
Three months ended March 31,
2017 2016
Revenue $ 11,966 $ 10,116
Mortgage servicing and management fees (1,292) (1,066)
Other expenses (285) (271)
Provision for mortgage losses (303) (300)
------------ -------------
Income before financing costs 10,086 8,479
Financing costs (2,928) (2,357)
------------ -------------
Earnings and total comprehensive income $ 7,158 $ 6,122
============ =============
Basic earnings per share $ 0.25 $ 0.23
Diluted earnings per share $ 0.24 $ 0.23
Dividends declared $ 6,404 $ 5,781
Mortgages receivable, end of period $ 564,031 $ 460,244
Total assets, end of period $ 565,365 $ 460,349
Shareholder equity, end of period $ 313,348 $ 276,280
============ =============
ANALYSIS OF MORTGAGE PORTFOLIO
March 31, 2017 Dec. 31, 2016
Outstanding % of Outstanding % of
Mortgage category Number amount portfolio Number amount portfolio
(outstanding amounts in 000s)
Low-rise residential 34 $ 162,983 28.7% 30 $ 135,701 25.4%
House and apartment 85 84,017 14.8% 102 99,456 18.6%
High-rise residential 7 53,979 9.5% 7 53,182 9.9%
Construction 7 48,146 8.5% 8 49,345 9.2%
Mid-rise residential 6 26,584 4.7% 5 28,787 5.4%
Condominium corporation 16 3,454 0.6% 16 3,548 0.7%
--- --------- ----- --- --------- -----
Residential portfolio 155 379,163 66.8% 168 370,019 69.2%
Commercial/mixed use 31 189,548 33.2% 29 165,231 30.8%
--- --------- ----- --- --------- -----
Mortgage portfolio 186 568,711 100.0% 197 535,250 100.0%
=== ========= ===== === ========= =====
March 31, 2017
Weighted Weighted
Location of underlying property Number of Outstanding Percentage average average
(outstanding amounts in 000s) mortgages amount outstanding loan to value interest rate
Greater Toronto Area 133 $ 373,279 65.6% 62.4% 8.39%
Non-GTA Ontario 30 20,980 3.7% 65.3% 8.76%
Saskatchewan 2 13,088 2.3% 100.0% 8.50%
Alberta 9 29,102 5.1% 60.0% 9.42%
British Columbia 12 132,262 23.3% 56.1% 8.41%
--- --------- ----- ----- ----
186 568,711 100.0% 61.8% 8.46%
=== ========= ===== ===== ====
Dec. 31, 2016
Weighted Weighted
Location of underlying property Number of Outstanding Percentage average average
(outstanding amounts in 000s) mortgages amount outstanding loan to value interest rate
Greater Toronto Area 148 $ 350,026 65.4% 63.9% 8.47%
Non-GTA Ontario 24 16,009 3.0% 65.4% 8.91%
Saskatchewan 2 12,375 2.3% 97.1% 8.50%
Alberta 11 37,032 6.9% 62.0% 9.24%
British Columbia 12 119,808 22.4% 55.6% 8.27%
--- --------- ----- ---- ----
197 535,250 100.0% 62.7% 8.50%
=== ========= ===== ==== ====
For further information on the financial results, and analysis of the company's mortgage portfolio in addition to that set out herein, please refer to Atrium's unaudited interim financial statements and its management's discussion and analysis for the three-month period ended March 31, 2017, available on SEDAR and on the company's website.
Conference call
Interested parties are invited to participate in a conference call with management on Thursday, April 27, 2017, at 4 p.m. ET to discuss the results.
To participate or listen to the conference call live, please call 1-888-241-0551 or 647-427-3415.
For a replay of the conference call (available until May 10, 2017), please call 1-855-859-2056 and use conference code 19835866.
© 2024 Canjex Publishing Ltd. All rights reserved.