Atrium Mortgage Investment Corporation Announces Second Quarter Results and Record Mortgage Portfolio Balance

·7 min read

Toronto, Ontario--(Newsfile Corp. - August 10, 2022) - Atrium Mortgage Investment Corporation (TSX: AI) today released its financial results for the three and six months ended June 30, 2022.

Highlights

  • Record mortgage portfolio of $817.0 million, a 6.5% increase from December 31, 2021

  • High quality mortgage portfolio

    • 91.9% of portfolio in first mortgages

    • 99.1% of portfolio is less than 75% loan to value

    • average loan-to-value is 62.3%

  • Quarterly net income of $10.7 million, up 0.5% from the comparative period

  • Quarterly basic and diluted earnings per share of $0.25

"We had a very busy Q2, with a record level of mortgage advances of $223.9 million and record repayments of $199.5 million in the quarter. We ended the second quarter with assets of $830.4 million and mortgages of $817.0 million, both being the highest recorded in Atrium's history. We had record quarterly revenues of $18.2 million and earned $0.25 per share. The quality of our loan book remains strong, as evidenced by very low arrears levels, 99.1% of the mortgage portfolio being conventional mortgages (defined as less than 75% loan to value), and the portfolio loan to value average being only 62.3%. I believe that we are defensively positioned to withstand the impact of softening market conditions over the next several quarters. And with over 66% of our mortgage portfolio being priced off of prime, our average mortgage rate should continue to increase in future quarters," said Rob Goodall, CEO of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management Thursday, August 11, 2022 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1 (888) 241-0551 or (647) 427-3415, conference ID 6278637. For a replay of the conference call (available until August 24, 2022) please call 1 (855) 859-2056, conference ID 6278637.

Results of operations

For the three months ended June 30, 2022, Atrium reported record assets of $830.4 million, up from $775.5 million at the end of 2021. Revenues were $18.2 million, an increase of 12.7% from the second quarter of the prior year. Net income for the second quarter of 2022 was $10.7 million, an increase of 0.5% from the comparative period. Atrium's allowance for mortgage losses at June 30, 2022 totaled $8.4 million, or 1.02% of the gross mortgage portfolio.

For the six months ended June 30, 2022, revenues were $34.6 million, an increase of 6.1% from the six months ended June 30, 2021. Net income for the six months ended June 30, 2022 was $21.3 million, an increase of 3.8% from the prior year period.

Basic and diluted earnings per common share were $0.25 for the three months ended June 30, 2022, compared with $0.25 basic and diluted earnings per common share in the prior year. Basic and diluted earnings per common share were $0.50 for the six months ended June 30, 2022, compared with $0.48 basic and diluted earnings per common share for the six months ended June 30, 2021.

Mortgages receivable as at June 30, 2022 were a record $811.7 million, up from $759.2 million as at December 31, 2021. During the six months ended June 30, 2022, $363.5 million of mortgage principal was advanced and $316.1 million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2022 was 8.90%, compared to 8.26% at December 31, 2021.

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



2022



2021



2022



2021

Revenue

$

18,201


$

16,147


$

34,578


$

32,598

Mortgage servicing and management fees


(2,461)



(1,775)



(4,339)



(3,671)

Other expenses


(212)



(388)



(536)



(850)

Impairment of investment property held for sale






(1,832)



Recovery of (provision for) mortgage losses


(383)





1,430



(869)

Income before financing costs


15,145



13,984



29,301



27,208

Financing costs


(4,470)



(3,359)



(8,028)



(6,709)

Net income and comprehensive income

$

10,675


$

10,625


$

21,273


$

20,499



 



 



 



 

Basic earnings per share

$

0.25


$

0.25


$

0.50


$

0.48

Diluted earnings per share

$

0.25


$

0.25


$

0.50


$

0.48



 



 



 



 

Dividends declared

$

9,675


$

9,575


$

19,323


$

19,125



 



 



 



 

Mortgages receivable, end of period

$

811,699


$

702,969


$

811,699


$

702,969

Total assets, end of period

$

830,357


$

719,331


$

830,357


$

719,331

Shareholders' equity, end of period

$

476,839


$

467,033


$

476,839


$

467,033

 

Analysis of mortgage portfolio




June 30, 2022



December 31, 2021




 



Outstanding



 

% of



 



Outstanding



 

% of

Property Type



Number



amount



 

Portfolio



Number



amount



 

Portfolio

(outstanding amounts in 000s)



 






 




 






 


High-rise residential



17


$

256,818



 

31.4%



18


$

234,847



 

30.6%

Mid-rise residential



32



245,015



 

30.0%



34



253,507



 

33.0%

Low-rise residential



13



119,655



 

14.7%



15



122,569



 

16.0%

House and apartment



145



104,972



 

12.8%



101



70,944



 

9.3%

Condominium corporation



12



1,545



 

0.2%



13



1,752



 

0.2%

Residential portfolio



219



728,005



 

89.1%



181



683,619



 

89.1%

Commercial



24



88,981



 

10.9%



16



83,512



 

10.9%

Mortgage portfolio



243


$

816,986



 

100.0%



197


$

767,131



 

100.0%

 




June 30, 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



163


$

546,510



66.9%



62.1%



9.06%

Non-GTA Ontario



55



34,470



4.2%



70.5%



7.44%

British Columbia



23



227,765



27.9%



61.0%



8.70%

Alberta



2



8,241



1.0%



71.2%



10.15%




243


$

816,986



100.0%



62.3%



8.90%

 




December 31, 2021













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



126


$

472,851



61.6%



62.3%



8.34%

Non-GTA Ontario



44



33,361



4.4%



67.4%



7.65%

British Columbia



25



253,771



33.1%



56.7%



8.17%

Alberta



2



7,148



0.9%



94.4%



8.90%




197


$

767,131



100.0%



60.9%



8.26%

 

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, 2022, available on SEDAR at www.sedar.com, 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.sedar.com or investor information on Atrium's website at www.atriummic.com.

For additional information, please contact
Robert G. Goodall
President and Chief Executive Officer

Jennifer Scoffield
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/133427