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

Rhea-AI Summary

Atrium Mortgage Investment Corporation (TSX: AI) reported a record quarterly net income of $14.4 million, up 35.2% from the comparative period, with revenues growing due to higher interest rates. The mortgage portfolio of $824.6 million is focused on low-risk first mortgages, with no impaired loans reported and a healthy 150 basis point loan loss provision. The financial results for the three and six months ended June 30, 2023, show a significant increase in revenues and net income compared to the prior year period.

Toronto, Ontario--(Newsfile Corp. - August 3, 2023) - Atrium Mortgage Investment Corporation (TSX: AI) today released its financial results for the three and six months ended June 30, 2023.

Highlights

• Record quarterly net income of $14.4 million, up 35.2% from the comparative period
  
  
• Quarterly basic and diluted earnings per share of $0.33 and $0.32 respectively
  
  
• High quality mortgage portfolio of $824.6 million
  
  
  • 96.2% of portfolio in first mortgages
    
    
  • 98.0% of portfolio is less than 75% loan to value
    
    
  • average loan-to-value is 59.8%

"Atrium continued to produce outstanding results for shareholders in the second quarter. We posted record net income of $14.4 million, and our EPS of $0.33 matched the record set in the first quarter. Our mortgage portfolio was down marginally over the quarter to $824.6 million due to slower market conditions, and delayed closings. But revenues grew on the heels of higher interest rates because 84.6% of our loans are now structured on a floating rate basis. Our main focus continues to be maintaining a low risk and resilient mortgage portfolio that can withstand the stresses of the current real estate downturn. For example, the average loan to value in the portfolio is only 59.8%, and 96.2% of our mortgage portfolio are first mortgages which is the highest percentage in our history as a public company. We also have no impaired loans to report, but we still have a healthy 150 basis point loan loss provision in place. We continue to evaluate new loan opportunities within our tight risk parameters and remain cautiously optimistic that we can increase the size of our portfolio over the balance of the year," said Rob Goodall, CEO of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management on Friday, August 4, 2023 at 9:00 a.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 16843847. For a replay of the conference call (available until August 17, 2023) please call 1 (877) 674-6060, conference ID 843847 #.

Results of operations

For the three months ended June 30, 2023, Atrium reported assets of $831.9 million, down from $874.8 million at the end of 2022. Revenues were $23.5 million, an increase of 29.4% from the second quarter of the prior year. Net income for the second quarter of 2023 was $14.4 million, an increase of 35.2% from the comparative period. Atrium's allowance for mortgage losses at June 30, 2023 totaled $12.3 million, or 1.5% of the gross mortgage portfolio.

For the six months ended June 30, 2023, revenues were $47.3 million, an increase of 36.7% from the six months ended June 30, 2022. Net income for the six months ended June 30, 2023 was $28.6 million, an increase of 34.6% from the prior year period.

Basic and diluted earnings per common share were $0.33 and $0.32 respectively for the three months ended June 30, 2023, compared with $0.25 basic and diluted earnings per common share in the comparable period. Basic and diluted earnings per common share were $0.66 and $0.63 respectively for the six months ended June 30, 2023, compared with $0.50 basic and diluted earnings per common share for the six months ended June 30, 2022.

Mortgages receivable as at June 30, 2023 was $817.4 million, down from $860.4 million as at December 31, 2022. During the six months ended June 30, 2023, $127.9 million of mortgage principal was advanced and $174.4 million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2023 was 11.27%, 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						Six months ended
		June 30						June 30
		2023			2022			2023			2022
Revenue	$	23,548		$	18,201		$	47,255		$	34,578
Mortgage servicing and management fees		(2,052)			(2,461)			(4,106)			(4,339)
Other expenses		(332)			(212)			(776)			(536)
Impairment of investment property held for sale		−			−			−			(1,832)
Recovery of (provision for) mortgage losses		(690)			(383)			(1,485)			1,430
Income before financing costs		20,474			15,145			40,888			29,301
Financing costs		(6,045)			(4,470)			(12,247)			(8,028)
Net income and comprehensive income	$	14,429		$	10,675		$	28,641		$	21,273
Basic earnings per share	$	0.33		$	0.25		$	0.66		$	0.50
Diluted earnings per share	$	0.32		$	0.25		$	0.63		$	0.50
Dividends declared	$	9,822		$	9,675		$	19,607		$	19,323
Mortgages receivable, end of period	$	817,421		$	811,699		$	817,421		$	811,699
Total assets, end of period	$	831,917		$	830,357		$	831,917		$	830,357
Shareholders' equity, end of period	$	489,010		$	476,839		$	489,010		$	476,839

 

Analysis of mortgage portfolio

		As at June 30, 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			$	279,332			33.9%			20		$	300,989			34.7%
Mid-rise residential		27				216,913			26.3%			30			225,281			26.0%
Low-rise residential		13				129,371			15.7%			14			128,244			14.8%
House and apartment		139				102,490			12.4%			158			108,124			12.5%
Condominium corporation		11				1,980			0.2%			12			2,189			0.3%
Residential portfolio		209				730,086			88.5%			234			764,827			88.3%
Commercial		21				94,521			11.5%			26			101,435			11.7%
Mortgage portfolio		230			$	824,607			100.0%			260		$	866,262			100.0%

 

		As at June 30, 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		148			$	591,157			71.7%			61.1%			11.57%
Non-GTA Ontario		51				30,624			3.7%			65.4%			9.04%
British Columbia		30				195,376			23.7%			54.7%			10.62%
Alberta		1				7,450			0.9%			71.0%			13.75%
		230			$	824,607			100.0%			59.8%			11.27%

 

		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 interim consolidated financial statements and its management's discussion and analysis for the three and six month period ended June 30, 2023, available on SEDAR+ at www.sedarplus.ca, 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.sedarplus.ca 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/176059

FAQ

What is Atrium Mortgage Investment Corporation's ticker symbol?

The ticker symbol for Atrium Mortgage Investment Corporation is TSX: AI.

What is the quarterly net income reported by Atrium Mortgage Investment Corporation?

Atrium Mortgage Investment Corporation reported a record quarterly net income of $14.4 million, up 35.2% from the comparative period.

What is the focus of Atrium Mortgage Investment Corporation's mortgage portfolio?

Atrium Mortgage Investment Corporation's mortgage portfolio is focused on low-risk first mortgages, with no impaired loans reported and a healthy 150 basis point loan loss provision.

Where can I find Atrium Mortgage Investment Corporation's financial statements and management's discussion and analysis?

Atrium's interim consolidated financial statements and its management's discussion and analysis for the three and six month period ended June 30, 2023, are available on SEDAR+ at www.sedarplus.ca, and on the company's website at www.atriummic.com.