Toronto, Ontario--(Newsfile Corp. - November 8, 2022) - Atrium Mortgage Investment Corporation (TSX: AI) today released its financial results for the three and nine months ended September 30, 2022.
Highlights
-
Record quarterly basic and diluted earnings per share of $0.27 compared to $0.25 per share in the comparative period
-
Record nine month basic and diluted earnings per share of $0.77 and $0.76, respectively compared to $0.73 basic and diluted per share in the prior year
-
Record quarterly net income of $11.8 million, up 12.0% from the comparative period
-
Record gross mortgage portfolio of $856.9 million, an 11.7% increase from December 31, 2021
-
High quality mortgage portfolio
-
92.0% of portfolio in first mortgages
-
99.1% of portfolio is less than 75% loan to value
-
average loan-to-value of 61.4%
"Atrium MIC generated record basic earnings per share in Q3 of $0.27, despite the downturn in real estate values over the last six months. Year to date, our basic earnings per share is $0.77 versus $0.73 per share last year. Our business continued to benefit from higher interest rates as more than 70% of our loans are variable with interest rates that fluctuate with changes in prime. As importantly, loan quality remained high in Q3, with arrears representing less than 1.0% of the total mortgage portfolio. Atrium's percentage of first mortgages continued to be high at 92.0%, and the portfolio loan to value remains very conservative at 61.4%. In fact, there is only one high ratio loan (a loan with a loan to value of greater than 75%), representing less than 0.90% of the mortgage portfolio. We have arranged an additional $25 million on our bank line of credit which will allow us to take advantage of high quality lending opportunities as the major banks tighten their credit standards and narrow their customer base. On a final note, I am very pleased to announce that Jennifer Scoffield, our former CFO, has been appointed to the board of directors of Atrium," said Robert Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management Wednesday, November 9, 2022 at 4:00 p.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 01533012. For a replay of the conference call (available until November 22, 2022) please call 1 (877) 674-6060, conference ID 533012 #.
Results of operations
For the three months ended September 30, 2022, Atrium reported record assets of $871.3 million, up from $775.5 million at the end of 2021. Revenues were $20.6 million, an increase of 30.0% from the third quarter of the prior year. Net income for the third quarter of 2022 was $11.8 million, an increase of 12.0% from the comparative period. Atrium's allowance for mortgage losses at September 30, 2022 totaled $9.5 million, or 1.11% of the gross mortgage portfolio.
For the nine months ended September 30, 2022, revenues were $55.2 million, an increase of 13.9% from the nine months ended September 30, 2021. Net income for the nine months ended September 30, 2022 was $33.1 million, an increase of 6.6% from the prior year period.
Basic and diluted earnings per common share were $0.27 for the three months ended September 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 $0.77 and $0.76, respectively, for the nine months ended September 30, 2022, compared with $0.73 basic and diluted earnings per common share for the nine months ended September 30, 2021.
Mortgages receivable as at September 30, 2022 were a record $850.9 million, up from $759.2 million as at December 31, 2021. During the nine months ended September 30, 2022, $454.5 million of mortgage principal was advanced and $373.5 million was repaid. The weighted average interest rate on the mortgage portfolio at September 30, 2022 was 10.04%, 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 |
|
|
Nine months ended |
|
|
|
September 30 |
|
|
September 30 |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Revenue |
$ |
20,634 |
|
$ |
15,870 |
|
$ |
55,212 |
|
$ |
48,468 |
|
| Mortgage servicing and management fees |
|
(2,056 |
) |
|
(1,792 |
) |
|
(6,395 |
) |
|
(5,463 |
) |
| Other expenses |
|
(292 |
) |
|
(283 |
) |
|
(828 |
) |
|
(1,133 |
) |
| Impairment of investment property held for sale |
|
− |
|
|
− |
|
|
(1,832 |
) |
|
− |
|
| Recovery of (provision for) mortgage losses |
|
(1,114 |
) |
|
(400 |
) |
|
316 |
|
|
(1,269 |
) |
| Income before financing costs |
|
17,172 |
|
|
13,395 |
|
|
46,473 |
|
|
40,603 |
|
| Financing costs |
|
(5,346 |
) |
|
(2,840 |
) |
|
(13,374 |
) |
|
(9,549 |
) |
| Net income and total comprehensive income |
$ |
11,826 |
|
$ |
10,555 |
|
$ |
33,099 |
|
$ |
31,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
0.27 |
|
$ |
0.25 |
|
$ |
0.77 |
|
$ |
0.73 |
|
| Diluted earnings per share |
$ |
0.27 |
|
$ |
0.25 |
|
$ |
0.76 |
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared |
$ |
9,706 |
|
$ |
9,601 |
|
$ |
29,029 |
|
$ |
28,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgages receivable, end of period |
$ |
850,920 |
|
$ |
758,007 |
|
$ |
850,920 |
|
$ |
758,007 |
|
| Total assets, end of period |
$ |
871,302 |
|
$ |
774,353 |
|
$ |
871,302 |
|
$ |
774,353 |
|
| Shareholders' equity, end of period |
$ |
480,462 |
|
$ |
469,372 |
|
$ |
480,462 |
|
$ |
469,372 |
|
Analysis of mortgage portfolio
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
|
|
Outstanding |
|
|
% of |
|
|
|
|
|
Outstanding |
|
|
% of |
|
| Property Type |
Number |
|
|
amount |
|
|
Portfolio |
|
|
Number |
|
|
amount |
|
|
Portfolio |
|
| (outstanding amounts in 000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| High-rise residential |
21 |
|
$ |
300,850 |
|
|
35.1% |
|
|
18 |
|
$ |
234,847 |
|
|
30.6% |
|
| Mid-rise residential |
31 |
|
|
243,816 |
|
|
28.5% |
|
|
34 |
|
|
253,507 |
|
|
33.0% |
|
| Low-rise residential |
13 |
|
|
121,128 |
|
|
14.1% |
|
|
15 |
|
|
122,569 |
|
|
16.0% |
|
| House and apartment |
141 |
|
|
101,084 |
|
|
11.8% |
|
|
101 |
|
|
70,944 |
|
|
9.3% |
|
| Condominium corporation |
14 |
|
|
2,302 |
|
|
0.3% |
|
|
13 |
|
|
1,752 |
|
|
0.2% |
|
| Residential portfolio |
220 |
|
|
769,180 |
|
|
89.8% |
|
|
181 |
|
|
683,619 |
|
|
89.1% |
|
| Commercial |
24 |
|
|
87,675 |
|
|
10.2% |
|
|
16 |
|
|
83,512 |
|
|
10.9% |
|
| Mortgage portfolio |
244 |
|
$ |
856,855 |
|
|
100.0% |
|
|
197 |
|
$ |
767,131 |
|
|
100.0% |
|
|
September 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 |
161 |
|
$ |
582,797 |
|
|
68.0% |
|
|
61.6% |
|
|
10.28% |
|
| Non-GTA Ontario |
55 |
|
|
34,642 |
|
|
4.0% |
|
|
68.9% |
|
|
7.65% |
|
| British Columbia |
26 |
|
|
231,076 |
|
|
27.0% |
|
|
59.5% |
|
|
9.75% |
|
| Alberta |
2 |
|
|
8,340 |
|
|
1.0% |
|
|
71.2% |
|
|
11.73% |
|
|
244 |
|
$ |
856,855 |
|
|
100.0% |
|
|
61.4% |
|
|
10.04% |
|
|
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 nine month period ended September 30, 2022, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
Appointment of Board Member
Atrium is pleased to announce the appointment of Jennifer Scoffield as a Board Member, effective November 8, 2022. Jennifer is the former CFO of Atrium and retired from that position in September 2022. Jennifer brings a wealth of experience from leadership positions in both public and private companies throughout her career.
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
John Ahmad
Executive Officer 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/143544
