News Press Releases

Atrium Mortgage Investment Corporation Generates Record Earnings in 2014

T.AI | February 10, 2015

Toronto, Ontario--(Newsfile Corp. - February 10, 2015) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) today released its financial results for the year ended December 31, 2014.

Highlights

$0.91 basic and fully diluted earnings per share for the year ended December 31, 2014, up over 7% from the previous year
$0.07 per share special dividend to shareholders of record December 31, 2014
$0.89 total dividends per share in 2014, representing a yield of 8.8% on book value
Regular monthly dividend increased in 2015 to $0.84 annual rate, $0.07 per month
Mortgage portfolio increased 53.8% year-over-year to $434 million at December 31, 2014
High quality mortgage portfolio

80.2% of portfolio in conventional first mortgages
97.2% of loan portfolio is less than 75% loan to value
Continued focus on low risk real estate sectors

"We are very pleased with our results for 2014," said Robert Goodall, CEO of Atrium. He continued, "Our lending team across the country did an extraordinary job of originating high quality loan opportunities throughout the year, which allowed us to grow the portfolio and generate substantially higher earnings per share in 2014. Our five offices across Canada have allowed us to become one of the largest MICs on the TSX."

"We would like to thank our real estate clients for their loyalty, and our new and existing shareholders who allowed us to successfully complete three financings in 2014 totaling over $100 million - common shares, and two issues of convertible debentures. I believe that Atrium is now regarded as 'Canada's premier non-bank lender™'."

Interested parties are invited to participate in a conference call with management on Wednesday, February 11, 2015 at 4:00 p.m. EST. Please refer to the call-in information at the end of this news release.

Results of operations

For the year ended December 31, 2014, mortgage interest and fees revenue aggregated $35.0 million, compared to $23.8 million in the prior year, an increase of 47%. The weighted average interest rate on the mortgage portfolio increased to 8.81% at December 31, 2014, slightly higher than the 8.72% at December 31, 2013. Earnings and total comprehensive income were up 16.9% from the previous year.

Condensed Statements of Earnings and Comprehensive Income
($000s, except per share amounts)

		Year		Year		Year
		ended		ended		ended
		December 31		December 31		December 31
		2014		2013		2012
Revenue	$	34,956	$	23,760	$	17,235
Mortgage servicing and management fees		3,553		2,468		1,568
Other expenses		1,014		845		935
Provision for mortgage losses		1,817		63		193
Income before financing costs		28,572		20,384		14,539
Financing costs		7,535		2,384		1,181
Earnings and total comprehensive income	$	21,037	$	18,000	$	13,358

Basic earnings per share	$	0.91	$	0.85	$	0.86
Diluted earnings per share	$	0.91	$	0.85	$	0.86

For further information on the financial results, please refer to Atrium's financial statements for the year ended December 31, 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.

Mortgage portfolio
($000s)

	December 31, 2014					December 31, 2013
			Outstanding		% of			Outstanding		% of
Mortgage category	Number		amount		Portfolio	Number		amount		Portfolio
Commercial/mixed use	31	$	134,990		31.1%	27	$	89,475		31.7%
House and apartment	90		93,070		21.4%	59		69,485		24.6%
Low-rise residential	23		85,678		19.7%	17		58,466		20.7%
Construction	17		61,095		14.1%	9		22,093		7.8%
High-rise residential	8		44,048		10.1%	5		32,967		11.7%
Mid-rise residential	8		12,127		2.8%	3		7,440		2.6%
Condominium corporation	13		3,260		0.8%	11		2,434		0.9%
Mortgage portfolio	190		434,268		100.0%	131		282,360		100.0%
Accrued interest receivable			2,177					1,562
Mortgage discount			(465	)				(339	)
Mortgage origination fees			(835	)				(724	)
Provision for mortgage losses			(2,388	)				(1,151	)
Mortgages receivable		$	432,757				$	281,708

A summary of mortgages by size is presented below.
($000s)

	December 31, 2014				December 31, 2013
			Outstanding	% of			Outstanding	% of
Mortgage amount	Number		amount	Portfolio	Number		amount	Portfolio
$0 - $2,500,000	139	$	119,655	27.6%	95	$	98,812	35.0%
$2,500,001 - $5,000,000	26		90,602	20.9%	24		81,090	28.7%
$5,000,001 - $7,500,000	9		54,931	12.6%	7		46,820	16.6%
$7,500,001 +	16		169,080	38.9%	5		55,638	19.7%
	190	$	434,268	100.0%	131	$	282,360	100.0%

As of December 31, 2014, the average outstanding mortgage balance was $2.3 million (December 31, 2013 - $2.2 million), and the median outstanding mortgage balance was $1.1 million (December 31, 2013 - $1.4 million).

Conference call

Interested parties are invited to participate in a conference call with management on Wednesday, February 11, 2015 at 4:00 p.m. EST.

To participate or listen to the conference call live, please call 1 (888) 241-0551 or (647) 427-3415.

For a replay of the conference call (available until February 25, 2015) please call 1 (855) 859-2056, Conference ID 63676629.

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