Mr. Robert Goodall reports

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

Atrium Mortgage Investment Corp. today released its financial results for the three and six months ended June 30, 2023.

Highlights:

• Record quarterly net income of $14.4-million, up 35.2 per cent from the comparative period;
• Quarterly basic and diluted earnings per share of 33 cents and 32 cents, respectively;
• High-quality mortgage portfolio of $824.6-million:
  • 96.2 per cent of portfolio in first mortgages;
  • 98.0 per cent of portfolio is less than 75 per cent loan to value;
  • Average loan-to-value is 59.8 per cent.

"Atrium continued to produce outstanding results for shareholders in the second quarter. We posted record net income of $14.4-million and our EPS of 33 cents matched the record set in the first quarter. Our mortgage portfolio was down marginally over the quarter to $824.6-million due to slower market conditions and delayed closings. But revenues grew on the heels of higher interest rates because 84.6 per cent of our loans are now structured on a floating rate basis. Our main focus continues to be maintaining a low risk and resilient mortgage portfolio that can withstand the stresses of the current real estate downturn. For example, the average loan to value in the portfolio is only 59.8 per cent and 96.2 per cent of our mortgage portfolio are first mortgages, which is the highest percentage in our history as a public company. We also have no impaired loans to report, but we still have a healthy 150 basis point loan loss provision in place. We continue to evaluate new loan opportunities within our tight risk parameters and remain cautiously optimistic that we can increase the size of our portfolio over the balance of the year," said Rob Goodall, chief executive officer of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management on Friday, Aug. 4, 2023, at 9 a.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 No. 16843847. For a replay of the conference call (available until Aug. 17, 2023), please call 1-877-674-6060, conference ID No. 843847 followed by the pound key.

Results of operations

For the three months ended June 30, 2023, Atrium reported assets of $831.9-million, down from $874.8-million at the end of 2022. Revenues were $23.5-million, an increase of 29.4 per cent from the second quarter of the prior year. Net income for the second quarter of 2023 was $14.4-million, an increase of 35.2 per cent from the comparative period. Atrium's allowance for mortgage losses at June 30, 2023, totalled $12.3-million or 1.5 per cent of the gross mortgage portfolio.

For the six months ended June 30, 2023, revenues were $47.3-million, an increase of 36.7 per cent from the six months ended June 30, 2022. Net income for the six months ended June 30, 2023, was $28.6-million, an increase of 34.6 per cent from the prior-year period.

Basic and diluted earnings per common share were 33 cents and 32 cents, respectively, for the three months ended June 30, 2023, compared with 25 cents of basic and diluted earnings per common share in the comparable period. Basic and diluted earnings per common share were 66 cents and 63 cents, respectively, for the six months ended June 30, 2023, compared with 50 cents of basic and diluted earnings per common share for the six months ended June 30, 2022.

Mortgages receivable as at June 30, 2023, was $817.4-million, down from $860.4-million as at Dec. 31, 2022. During the six months ended June 30, 2023, $127.9-million of mortgage principal was advanced and $174.4-million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2023, was 11.27 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 interim consolidated financial statements and its management's discussion and analysis for the three-month and six-month periods ended June 30, 2023, available on SEDAR and on the company's website.

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 risk parameters. Atrium is a mortgage investment corporation (MIC) as defined in the Canada Income Tax Act, so 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. For further information about Atrium, please refer to regulatory filings available on SEDAR+ or investor information on Atrium's website.