Mr. Rob Goodall reports

ATRIUM MORTGAGE INVESTMENT CORPORATION ANNOUNCES HIGHEST ANNUAL NET INCOME IN ITS HISTORY AND A RECORD SPECIAL DIVIDEND

Atrium Mortgage Investment Corp. today released its financial results for the year ended Dec. 31, 2023.

Highlights

• Record annual basic and diluted earnings per share of $1.18 and $1.14, respectively, compared with $1.08 and $1.06 basic and diluted per share in 2022;
• Record net income of $51.5-million, up 11.1 per cent from prior year;
• Record gross mortgage portfolio of $893.6-million, a 3.2-per-cent increase over prior year;
• Record special dividend of 29 cents per share to shareholders of record on Dec. 29, 2023;
• Prudent allowance for mortgages losses of 2.53 per cent on the gross mortgage portfolio;
• High-quality mortgage portfolio;
• 94.6 per cent of portfolio in first mortgages;
• 94.0 per cent of portfolio is less than 75 per cent loan to value;
• Average loan-to-value is 61.4 per cent.

"Two thousand twenty-three proved to be an exceptional year for Atrium and its shareholders. The business posted record earnings per share of $1.18 and an outsized special dividend of 29 cents per share. These results were achieved amid one of the most challenging real estate markets since the early 1990s. In 2023, we managed to capitalize on high-quality opportunities arising from reduced activity by institutional lenders, while still maintaining a conservative portfolio loan to value of 61.4 per cent and increasing our percentage of first mortgages to 94.6 per cent. Our total allowance for mortgage losses of 253 bps reflects a pro-active approach of recognizing increased credit risk in these uncertain economic conditions. We are hopeful that market conditions will improve in the latter half of 2024 but remain prepared to navigate through the current cycle with ample liquidity and tight risk parameters.

"Lastly, I am pleased to announce that Richard Munroe, chief operating officer, has been appointed to the role of president and chief operating officer. This promotion recognizes Richard's increased role and importance at Atrium, and positions the company to prosper for many years to come. I will continue to act as CEO for the foreseeable future and will remain fully engaged in the business," said Rob Goodall, chief executive officer of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management on Friday, Feb. 16, 2024, at 9 a.m. ET, to discuss the results. To participate or listen to the conference call live, please call 1-833-491-0507 (call topic: fourth quarter results). For a replay of the conference call (available until Feb. 28, 2024), please call 1-833-607-0619, password 9177343 followed by the pound key.

Results of operations

For the year ended Dec. 31, 2023, Atrium reported record assets of $877.9-million, up from $874.8-million at the end of 2022. Revenues were $98.6-million, an increase of 25.8 per cent from the prior year. Net income for 2023 was $51.5-million, an increase of 11.1 per cent from the prior year. Atrium's allowance for mortgage losses at Dec. 31, 2023, totalled $22.6-million or 2.53 per cent of the gross mortgage portfolio.

Basic and diluted earnings per common share were $1.18 and $1.14, respectively, for the year ended Dec. 31, 2023, compared with $1.08 and $1.06 of basic and diluted earnings per common share in the prior year, an increase of 9.3 per cent (basic). Basic and diluted earnings per common share were 27 cents and 26 cents, respectively, for the fourth quarter, compared with 31 cents and 30 cents basic and diluted in the comparative quarter.

The board of directors declared a special dividend of 29 cents for 2023, resulting in a total dividend of $1.19 per common share paid to shareholders for the year, compared with $1.13 for the prior year.

Mortgages receivable as at Dec. 31, 2023, was a record $876.7-million, up from $860.4-million as at Dec. 31, 2022. During the year ended Dec. 31, 2023, $281.5-million of mortgage principal was advanced and $263.6-million was repaid. The weighted average interest rate on the mortgage portfolio at Dec. 31, 2023, was 11.42 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 year ended Dec. 31, 2023, available on SEDAR+ and on the company's website.

Appointment to president and COO

Atrium is pleased to announced that Mr. Munroe has been appointed to the role of president and COO, effective Feb. 15, 2024. Mr. Munroe joined Atrium in September, 2006, and was most recently appointed COO in February, 2022. Prior to that appointment, Mr. Munroe held the title of managing director, Ontario. He brings over 18 years of experience sourcing and managing mortgage investments.

About Atrium Mortgage Investment Corp.

Canada's Premier Non-Bank Lender, 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 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. For further information about Atrium, please refer to regulatory filings available on SEDAR+ or investor information on Atrium's website.