Atrium Mortgage Investment Corporation Announces Second Quarter Results and Record Mortgage Portfolio Balance
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 | |||
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Basic earnings per share | $ | 0.25 | $ | 0.25 | $ | 0.50 | $ | 0.48 | |||
Diluted earnings per share | $ | 0.25 | $ | 0.25 | $ | 0.50 | $ | 0.48 | |||
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Dividends declared | $ | 9,675 | $ | 9,575 | $ | 19,323 | $ | 19,125 | |||
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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) |
|
|
|
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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) |
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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
