Atrium Mortgage Investment Corporation Announces First Quarter Results with Record Quarterly Net Income

Toronto, Ontario--(Newsfile Corp. - May 10, 2023) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three month period ended March 31, 2023.

Highlights

• Record quarterly basic and diluted earnings per share since going public of $0.33 and $0.31, respectively, compared to $0.25 basic and diluted per share in the comparative period
  
  
• Record quarterly net income of $14.2 million, up 34.1% from comparative period
  
  
• High quality mortgage portfolio
  
  
  • 95.4% of portfolio in first mortgages
    
    
  • 96.3% of portfolio is less than 75% loan to value
    
    
  • average loan-to-value of 60.8%

"Atrium continued to post strong financial results in the first quarter with record net income of $14.2 million. This translated into an EPS of $0.33 which was also a record since becoming a public company over 10 years ago. Our gross mortgage portfolio of $846 million was down marginally over the quarter but remains meaningfully higher on year-over-year basis. The elevated interest rate environment combined with our conservative approach to risk management drove our results. We continue to lend defensively given soft real estate market conditions and uncertainties in the broader economy. The portfolio remained strong at quarter end with no impairments, a weighted average LTV of 60.8% and 95.4% of our mortgages in first position. I am confident that our team has the right depth and experience to manage through the current real estate cycle" said Robert Goodall, CEO of Atrium.

Results of operations

For the three month period ended March 31, 2023, Atrium reported assets of $854.5 million, down from $874.8 million at the end of 2022. Revenues were $23.7 million, an increase of 44.8% from the first quarter of the prior year. Net income for first quarter of 2023 was $14.2 million, an increase of 34.1% from the first quarter of the prior year. Atrium's allowance for mortgage losses at March 31, 2023 totaled $11.7 million, or 1.38% of the gross mortgage portfolio.

Basic and diluted earnings per common share were $0.33 and $0.31, respectively, for the three months ended March 31, 2023, compared with $0.25 basic and diluted earnings per common share in the comparative period, an increase of 32.0% (basic).

Mortgages receivable as at March 31, 2023 was $840.0 million, down from $860.4 million as at December 31, 2022. During the three month period ended March 31 2023, $65.2 million of mortgage principal was advanced and $87.9 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2023 was 11.04%, compared to 10.77% at December 31, 2022.

Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)

		Three months ended
		March 31
		2023			2022
Revenue	$	23,707		$	16,377
Mortgage servicing and management fees		(2,054)			(1,878)
Other expenses		(444)			(324)
Impairment of investment property held for sale		-			(1,832)
Recovery of prior mortgage losses		157			800
Recovery of (provision for) mortgage losses		(952)			1,013
Income before financing costs		20,414			14,156
Financing costs		(6,202)			(3,558)
Net income and comprehensive income	$	14,212		$	10,598
Basic earnings per share	$	0.33		$	0.25
Diluted earnings per share	$	0.31		$	0.25
Dividends declared	$	9,785		$	9,648
Mortgages receivable, end of period	$	840,019		$	785,588
Total assets, end of period	$	854,511		$	824,886
Shareholders' equity, end of period	$	482,763		$	474,364

 

Analysis of mortgage portfolio

		As at March 31, 2023										As at December 31, 2022
						Outstanding			% of						Outstanding			% of
Property Type		Number				amount			Portfolio			Number			amount			Portfolio
(outstanding amounts in 000s)
High-rise residential		19			$	272,326			32.2%			20		$	300,989			34.7%
Mid-rise residential		31				240,154			28.4%			30			225,281			26.0%
Low-rise residential		13				129,676			15.3%			14			128,244			14.8%
House and apartment		150				108,528			12.8%			158			108,124			12.5%
Condominium corporation		12				2,082			0.3%			12			2,189			0.3%
Residential portfolio		225				752,766			89.0%			234			764,827			88.3%
Commercial		23				93,138			11.0%			26			101,435			11.7%
Mortgage portfolio		248			$	845,904			100.0%			260		$	866,262			100.0%

 

		As at March 31, 2023
												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		159			$	571,228			67.5%			61.6%			11.36%
Non-GTA Ontario		59				39,004			4.6%			68.0%			8.83%
British Columbia		28				226,800			26.8%			57.2%			10.57%
Alberta		2				8,872			1.1%			76.0%			12.77%
		248			$	845,904			100.0%			60.8%			11.04%
		As at December 31, 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		169			$	598,207			69.0%			59.7%			11.04%
Non-GTA Ontario		61				38,950			4.5%			68.7%			8.25%
British Columbia		28				220,727			25.5%			56.4%			10.41%
Alberta		2				8,378			1.0%			71.2%			12.55%
		260			$	866,262			100.0%			59.4%			10.77%

 

For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's consolidated financial statements and its management's discussion and analysis for the quarter ended March 31, 2023, 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 Thursday, May 11, 2023 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 48720415. For a replay of the conference call (available until May 24, 2023) please call 1 (877) 674-6060, conference ID 720415 #.

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

John Ahmad
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/165608