Mr. Simon Hitzig reports

ACCORD ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND

Accord Financial Corp. has released its financial results for the quarter ended March 31, 2023. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with international financial reporting standards.

Commenting on the financial results, the company's president and chief executive officer, Simon Hitzig, stated: "Turning the page from a challenging 2022 we are laser-focused on building back to the record performance in 2021. The first quarter reflected a strong earnings rebound from fiscal 2022, with earnings per common share (EPS) coming in at 24 cents, eclipsing EPS of 17 cents for all of 2022. While not back to where Accord was prior to 2022, it's a firm step in the right direction."

Accord's finance receivables and loans declined slightly over the quarter to $450-million at March 31, 2023. Revenue remained steady to start the year, at $18.4-million for the quarter, flat to the fourth quarter and up 14 per cent compared with $16.2-million in the first quarter last year. Net earnings attributable to shareholders were $2-million in the quarter, down from $3.1-million in the same quarter last year, and up from the $3.7-million loss in the fourth quarter of 2022. Book value per common share rose to $11.96, up from $11.75 on March 31, 2022, and $11.80 at the start of this year.

Mr. Hitzig noted: "The rapid change in business conditions through 2022 created challenges within our core markets and headwinds to growth and earnings. We now see signs that the tide is turning; the economic environment is beginning to provide the ingredients for increasing growth and earnings. Economic uncertainty often leads the major banks to narrow their lending appetite, which opens the door for Accord to step in. While the portfolio remained flat in the first quarter, new business activity across all of our operating companies is building."

While the uncertain economic environment is beginning to spur new business activity, it can also create challenges for certain businesses in the portfolio. In this context the company continues to carry a significant allowance for expected credit losses on the balance sheet: $7.4-million at March 31, 2023, compared with $5.1-million a year earlier.

Looking ahead, Mr. Hitzig added: "Our team's deep experience, through multiple economic cycles, gives us valuable perspective as the current environment unfolds. With the strength of our past, now focused on the future, Accord is poised to unlock potential for our investors in the year ahead."

On May 3, the company's board of directors declared a quarterly dividend of 7.5 cents per common share, payable June 1, 2023, to shareholders of record at the close of business May 15, 2023.

About Accord Financial Corp.

Accord Financial is North America's most dynamic commercial finance company providing fast, versatile financing solutions for companies in transition, including factoring, inventory finance, equipment leasing, trade finance and film/media finance. By leveraging its unique combination of financial strength, deep experience and independent thinking, the company crafts winning financial solutions for small and medium-sized businesses, simply delivered, so its clients can thrive. For 45 years, Accord has helped businesses manage their cash flows and maximize financial opportunities.