Atrium Mortgage Investment Corporation Announces Second Quarter Results with Record Quarterly Net Income
Toronto, Ontario--(Newsfile Corp. - August 3, 2023) - Atrium Mortgage Investment Corporation (TSX: AI) 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% from the comparative period
Quarterly basic and diluted earnings per share of $0.33 and $0.32 respectively
High quality mortgage portfolio of $824.6 million
96.2% of portfolio in first mortgages
98.0% of portfolio is less than 75% loan to value
average loan-to-value is 59.8%
"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 $0.33 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% 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%, and 96.2% 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, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management on Friday, August 4, 2023 at 9:00 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 16843847. For a replay of the conference call (available until August 17, 2023) please call 1 (877) 674-6060, conference ID 843847 #.
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% 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% from the comparative period. Atrium's allowance for mortgage losses at June 30, 2023 totaled $12.3 million, or 1.5% of the gross mortgage portfolio.
For the six months ended June 30, 2023, revenues were $47.3 million, an increase of 36.7% 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% from the prior year period.
Basic and diluted earnings per common share were $0.33 and $0.32 respectively for the three months ended June 30, 2023, compared with $0.25 basic and diluted earnings per common share in the comparable period. Basic and diluted earnings per common share were $0.66 and $0.63 respectively for the six months ended June 30, 2023, compared with $0.50 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 December 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%, compared to 10.77% at December 31, 2022.
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
Three months ended | Six months ended | ||||||||||
June 30 | June 30 | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Revenue | $ | 23,548 | $ | 18,201 | $ | 47,255 | $ | 34,578 | |||
Mortgage servicing and management fees | (2,052) | (2,461) | (4,106) | (4,339) | |||||||
Other expenses | (332) | (212) | (776) | (536) | |||||||
Impairment of investment property held for sale | − | − | − | (1,832) | |||||||
Recovery of (provision for) mortgage losses | (690) | (383) | (1,485) | 1,430 | |||||||
Income before financing costs | 20,474 | 15,145 | 40,888 | 29,301 | |||||||
Financing costs | (6,045) | (4,470) | (12,247) | (8,028) | |||||||
Net income and comprehensive income | $ | 14,429 | $ | 10,675 | $ | 28,641 | $ | 21,273 | |||
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Basic earnings per share | $ | 0.33 | $ | 0.25 | $ | 0.66 | $ | 0.50 | |||
Diluted earnings per share | $ | 0.32 | $ | 0.25 | $ | 0.63 | $ | 0.50 | |||
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Dividends declared | $ | 9,822 | $ | 9,675 | $ | 19,607 | $ | 19,323 | |||
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Mortgages receivable, end of period | $ | 817,421 | $ | 811,699 | $ | 817,421 | $ | 811,699 | |||
Total assets, end of period | $ | 831,917 | $ | 830,357 | $ | 831,917 | $ | 830,357 | |||
Shareholders' equity, end of period | $ | 489,010 | $ | 476,839 | $ | 489,010 | $ | 476,839 | |||
Analysis of mortgage portfolio
As at June 30, 2023 | As at December 31, 2022 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | ||||||||||||||
Property Type | Number |
| amount | Portfolio | Number | amount | Portfolio | |||||||||||
(outstanding amounts in 000s) |
| |||||||||||||||||
High-rise residential | 19 |
| $ | 279,332 | 33.9% | 20 | $ | 300,989 | 34.7% | |||||||||
Mid-rise residential | 27 |
| 216,913 | 26.3% | 30 | 225,281 | 26.0% | |||||||||||
Low-rise residential | 13 |
| 129,371 | 15.7% | 14 | 128,244 | 14.8% | |||||||||||
House and apartment | 139 |
| 102,490 | 12.4% | 158 | 108,124 | 12.5% | |||||||||||
Condominium corporation | 11 | 1,980 | 0.2% | 12 | 2,189 | 0.3% | ||||||||||||
Residential portfolio | 209 |
| 730,086 | 88.5% | 234 | 764,827 | 88.3% | |||||||||||
Commercial | 21 | 94,521 | 11.5% | 26 | 101,435 | 11.7% | ||||||||||||
Mortgage portfolio | 230 | $ | 824,607 | 100.0% | 260 | $ | 866,262 | 100.0% | ||||||||||
As at June 30, 2023 | |||||||||||||||
| Weighted | Weighted | |||||||||||||
Number of |
| Outstanding | Percentage | average | average | ||||||||||
Location of underlying property | mortgages |
| amount | outstanding | loan to value | interest rate | |||||||||
(outstanding amounts in 000s) |
| ||||||||||||||
Greater Toronto Area | 148 |
| $ | 591,157 | 71.7% | 61.1% | 11.57% | ||||||||
Non-GTA Ontario | 51 |
| 30,624 | 3.7% | 65.4% | 9.04% | |||||||||
British Columbia | 30 |
| 195,376 | 23.7% | 54.7% | 10.62% | |||||||||
Alberta | 1 | 7,450 | 0.9% | 71.0% | 13.75% | ||||||||||
230 | $ | 824,607 | 100.0% | 59.8% | 11.27% | ||||||||||
As at December 31, 2022 | |||||||||||||||
| Weighted | Weighted | |||||||||||||
Number of |
| Outstanding | Percentage | average | average | ||||||||||
Location of underlying property | mortgages |
| amount | outstanding | loan to value | interest rate | |||||||||
(outstanding amounts in 000s) |
| ||||||||||||||
Greater Toronto Area | 169 |
| $ | 598,207 | 69.0% | 59.7% | 11.04% | ||||||||
Non-GTA Ontario | 61 |
| 38,950 | 4.5% | 68.7% | 8.25% | |||||||||
British Columbia | 28 |
| 220,727 | 25.5% | 56.4% | 10.41% | |||||||||
Alberta | 2 | 8,378 | 1.0% | 71.2% | 12.55% | ||||||||||
260 | $ | 866,262 | 100.0% | 59.4% | 10.77% | ||||||||||
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 and six month period ended June 30, 2023, available on SEDAR+ at www.sedarplus.ca, and on the company's website at www.atriummic.com.
About Atrium
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 is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 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 at www.sedarplus.ca or investor information on Atrium's website at www.atriummic.com.
For additional information, please contact
Robert G. Goodall
President and Chief Executive Officer
John Ahmad
Chief Financial Officer
(416) 867-1053
info@atriummic.com
www.atriummic.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176059
