Toronto, Ontario--(Newsfile Corp. - July 24, 2014) - Atrium Mortgage Investment Corporation
(TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) today released its financial results for the three and
six month periods ended June 30, 2014.
Highlights
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Earnings up 8.9% over previous
quarter to $5.3 million |
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$0.23 earnings per share for the
quarter – 4.5% increase over previous year |
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$0.46 earnings per share
year-to-date – 9.5% increase over previous year |
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Mortgages increased to $382
million, 36% increase over two quarters |
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High quality mortgage
portfolio |
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86.7% first mortgages |
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96.1% of loan portfolio is less than 75%
loan to value |
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Continued focus on lower risk real estate
sectors |
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"We are delighted to report continued strong growth of our
mortgage portfolio and earnings" noted Robert Goodall, CEO of Atrium. He
continued, "Our strategy of focusing on quality loans with long-term customers
has resulted in us achieving record earnings and a high quality portfolio
consisting of 87% first mortgages."
Interested parties are invited to participate in a conference
call with management on Friday, July 25, 2014 at 9:00 a.m. EDT. Please refer to
the call-in information at the end of this news release.
Results of operations
For the three months ended June 30, 2014, mortgage interest and
fees aggregated $8.3 million, compared to $5.8 million in the comparative
period, an increase of 41.9% . The weighted average interest rate on our
mortgage portfolio stayed constant at 8.7% at June 30, 2014, the same as it was
at December 31, 2013. Operating expenses, excluding the provision for mortgage
losses, for the three months ended June 30, 2014 were $1.0 million, or 12.5% of
revenues, compared to $0.8 million or 13.4% of revenues in the comparative
period. Net earnings for the three months ended June 30, 2014 aggregated $5.3
million, an increase of 15.3% from net earnings of $4.6 million in the
comparative quarter. Basic and diluted earnings per common share were $0.23, for
the period ended June 30, 2014, compared with basic and diluted earnings of
$0.22 per common share for the comparative period in June 30, 2013.
For the six months ended June 30, 2014, mortgage interest and
fees aggregated $15.9 million, compared to $10.9 million in the comparative
period, an increase of 45.8% . Operating expenses, excluding the provision for
mortgage losses, for the six months ended June 30, 2014 were $2.0 million, or
12.6% of revenues, compared to $1.6 million or 14.2% of revenues in the
comparative period. Net earnings for the six months ended June 30, 2014
aggregated $10.1 million, an increase of 15.4% from net earnings of $8.8 million
in the comparative quarter. Basic and diluted earnings per common share were
$0.46, for the six months ended June 30, 2014, compared with basic and diluted
earnings of $0.42 and $0.41, respectively, per common share for the comparable
period in the previous year.
Mortgage portfolio
Atrium's mortgage portfolio consist of 160 mortgage loans and
aggregated $382 million at June 30, 2014, an increase of 35% from December 31,
2013.
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June 30, 2014 |
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December 31, 2013 |
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Outstanding |
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% of |
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|
Outstanding |
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% of |
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| Mortgage category |
|
Number |
|
|
amount |
|
|
Portfolio |
|
|
Number |
|
|
amount |
|
|
Portfolio |
|
| Commercial/mixed use |
|
34 |
|
$ |
142,408,500 |
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37.3% |
|
|
27 |
|
$ |
89,475,297 |
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31.7% |
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| House and apartment |
|
73 |
|
|
83,476,846 |
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21.8% |
|
|
59 |
|
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69,484,828 |
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24.6% |
|
| Low-rise residential |
|
17 |
|
|
70,860,143 |
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18.5% |
|
|
17 |
|
|
58,465,947 |
|
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20.7% |
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| Construction |
|
14 |
|
|
37,988,213 |
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9.9% |
|
|
9 |
|
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22,093,399 |
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7.8% |
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| High-rise residential |
|
5 |
|
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33,565,786 |
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8.9% |
|
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5 |
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32,966,568 |
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11.7% |
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| Mid-rise residential |
|
6 |
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11,602,698 |
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3.0% |
|
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3 |
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7,440,000 |
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2.6% |
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| Condominium corporation |
|
11 |
|
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2,336,114 |
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0.6% |
|
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11 |
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2,433,526 |
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0.9% |
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| Mortgage portfolio |
|
160 |
|
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382,238,300 |
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100% |
|
|
131 |
|
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282,359,565 |
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100% |
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| Accrued interest receivable |
|
|
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1,965,091 |
|
|
|
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|
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1,562,173 |
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| Mortgage discount |
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|
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(252,802 |
) |
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|
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(338,480 |
) |
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| Mortgage origination fees |
|
|
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(925,097 |
) |
|
|
|
|
|
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(724,452 |
) |
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| Provision for mortgage losses |
|
|
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(1,146,715 |
) |
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(1,150,667 |
) |
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| Mortgage receivable |
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$ |
381,878,777 |
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$ |
281,708,139 |
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We actively manage the exposure of our mortgage portfolio, and
continued to shift our mortgage portfolio towards lower risk sectors in 2014:
commercial/mixed use, single family homes and apartments, and low rise
residential, which together comprised 77.6% of our mortgage portfolio at June
30, 2014, an increase of 0.6 percentage points since December 31, 2013.
A summary of mortgages by size is presented below.
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June 30, 2014 |
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December 31, 2013 |
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Outstanding |
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% of |
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|
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Outstanding |
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% of |
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| Mortgage amount |
|
Number |
|
|
amount |
|
|
Portfolio |
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|
Number |
|
|
amount |
|
|
Portfolio |
|
| $0 - $2,500,000 |
|
116 |
|
$ |
111,325,283 |
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29.1% |
|
|
95 |
|
$ |
98,811,649 |
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35.0% |
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| $2,500,001 - $5,000,000 |
|
25 |
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88,846,996 |
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23.3% |
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|
24 |
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81,089,475 |
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28.7% |
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| $5,000,001 - $7,500,000 |
|
6 |
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40,253,160 |
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10.5% |
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7 |
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46,820,000 |
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16.6% |
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| $7,500,001 + |
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13 |
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141,812,861 |
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37.1% |
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|
5 |
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55,638,441 |
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19.7% |
|
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|
160 |
|
$ |
382,238,300 |
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|
100.0% |
|
|
131 |
|
$ |
282,359,565 |
|
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100.0% |
|
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As of June 30, 2014 the average outstanding mortgage balance
was $2.4 million (December 31, 2013 – $2.2 million), and the median outstanding
mortgage balance was $1.4 million (December 31, 2013 – $1.4 million).
Further information
For further details please refer to Atrium's financial
statements for the three and six month periods ended June 30, 2014, and its
management's discussion and analysis for the same period, available on SEDAR at
www.sedar.com, and on the company's website at
www.atriummic.com.
Conference call
Interested parties are invited to participate in a conference
call with management on Friday, July 25, 2014 at 9:00 a.m. EDT. To participate
or listen to the conference call live, please call 1 (866) 222-0265 or (416)
640-5942. For a replay of the conference call (available until August 10, 2014)
please call 1 (866) 245-6755, Passcode 706248.
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 Income Tax Act. Accordingly, Atrium 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, please refer to regulatory
filings available at www.sedar.com or Atrium's website at
www.atriummic.com.
For additional information, please contact
| Robert G. Goodall |
Jeffrey D. Sherman |
| President and Chief Executive Officer |
Chief Financial Officer |
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(416) 607-4200
ir@atriummic.com
www.atriummic.com
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