Mr. Robert Goodall reports

ATRIUM MORTGAGE INVESTMENT CORPORATION ANNOUNCES FIRST QUARTER RESULTS WITH RECORD QUARTERLY NET INCOME

Atrium Mortgage Investment Corp. today released its financial results for the three-month period ended March 31, 2023.

Highlights

• Record quarterly basic and diluted earnings per share since going public of 33 cents and 31 cents, respectively, compared with 25 cents basic and diluted per share in the comparative period;
• Record quarterly net income of $14.2-million, up 34.1 per cent from comparative period;
• High-quality mortgage portfolio:
  • 95.4 per cent of portfolio in first mortgages;
  • 96.3 per cent of portfolio is less than 75 per cent loan to value;
  • Average loan to value of 60.8 per cent.

"Atrium continued to post strong financial results in the first quarter with record net income of $14.2-million. This translated into an EPS of 33 cents which was also a record since becoming a public company over 10 years ago. Our gross mortgage portfolio of $846-million was down marginally over the quarter but remains meaningfully higher on year-over-year basis. The elevated interest rate environment combined with our conservative approach to risk management drove our results. We continue to lend defensively given soft real estate market conditions and uncertainties in the broader economy. The portfolio remained strong at quarter-end with no impairments, a weighted average LTV of 60.8 per cent and 95.4 per cent of our mortgages in first position. I am confident that our team has the right depth and experience to manage through the current real estate cycle," said Robert Goodall, chief executive officer of Atrium.

Results of operations

For the three month period ended March 31, 2023, Atrium reported assets of $854.5-million, down from $874.8-million at the end of 2022. Revenues were $23.7-million, an increase of 44.8 per cent from the first quarter of the prior year. Net income for first quarter of 2023 was $14.2-million, an increase of 34.1 per cent from the first quarter of the prior year. Atrium's allowance for mortgage losses at March 31, 2023, totalled $11.7-million, or 1.38 per cent of the gross mortgage portfolio.

Basic and diluted earnings per common share were 33 cents and 31 cents, respectively, for the three months ended March 31, 2023, compared with 25 cents basic and diluted earnings per common share in the comparative period, an increase of 32.0 per cent (basic).

Mortgages receivable as at March 31, 2023, was $840.0-million, down from $860.4-million as at Dec. 31, 2022. During the three-month period ended March 31, 2023, $65.2-million of mortgage principal was advanced and $87.9-million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2023, was 11.04 per cent, compared with 10.77 per cent at Dec. 31, 2022.

For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's consolidated financial statements and its management's discussion and analysis for the quarter ended March 31, 2023, available on SEDAR and on the company's website.

Conference call

Interested parties are invited to participate in a conference call with management Thursday, May 11, 2023, at 4 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1-888-886-7786 or 416-764-8658, conference ID 48720415. For a replay of the conference call (available until May 24, 2023) please call 1-877-674-6060, conference ID 720415 followed by the pound key.

About Atrium Mortgage Investment Corp.

Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders equity by lending within conservative risks. Atrium is a mortgage investment corporation (MIC) as defined in the Canada Income Tax Act, so it is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after Dec. 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder.