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Atrium Mortgage Investment Corporation Announces Third Quarter Results
October 28, 2021 5:00 PM EDT | Source: Atrium Mortgage Investment Corporation
Toronto, Ontario--(Newsfile Corp. - October 28, 2021) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) today released its financial results for the three and nine month periods ended September 30, 2021.
Highlights
- Mortgage portfolio of $765.7 million, 2.7% increase from December 31, 2020
- High quality mortgage portfolio
- 87.8% of portfolio in first mortgages
- 96.0% of portfolio is less than 75% loan to value
- average loan-to-value is 60.9%
- 87.8% of portfolio in first mortgages
- Quarterly net income of $10.6 million, up 11.4% from the third quarter of the prior year
- Quarterly basic and diluted earnings per share of $0.25
"We are very pleased with our Q3 and year to date results, and we are on track for a very successful year. We had one of our strongest quarters ever for loan originations at $118.6 million, with Ontario contributing 62% of funded loans and BC contributing 38%. The BC portfolio has grown significantly from $164 million at the beginning of the year, to $245 million today. The Ontario team has also been very productive, but there has been much more loan turnover in that province. Overall, the Atrium portfolio grew to a record $766 million by the end of the quarter. While we expect a higher level of repayments in Q4, we do have a solid pipeline of new loans. The mortgage portfolio remains defensively positioned with a modest average loan to value of 60.9%, and 96% of the portfolio being conventional mortgages (less than 75% loan to value)," said Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management Friday, October 29, 2021 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1 (888) 241-0551 or (647) 427-3415, conference ID 9683557. For a replay of the conference call (available until November 11, 2021) please call 1 (855) 859-2056, conference ID 9683557.
Results of operations
For the three months ended September 30, 2021, Atrium reported assets of $774.4 million, up from $755.3 million at the end of 2020. Revenues were $15.9 million, an increase of 4.0% from the third quarter of the prior year. Net income for the third quarter of 2021 was $10.6 million, an increase of 11.4% from the third quarter of the prior year. Atrium's allowance for mortgage losses at September 30, 2021 totaled $10.4 million, or 1.36% of the mortgage portfolio.
For the nine months ended September 30, 2021, revenues were $48.5 million, down slightly from $48.6 million for nine months of the prior year. Net income for the nine months ended September 30, 2021 was $31.1 million, up from net income of $29.2 million from the prior year period.
Basic and diluted earnings per common share were $0.25 for the three months ended September 30, 2021, compared with $0.22 basic and diluted earnings per common share in the comparable period. Basic and diluted earnings per common share were $0.73 for the nine months ended September 30, 2021, compared with $0.69 basic and diluted earnings per common share for the nine months ended September 30, 2020.
Mortgages receivable as at September 30, 2021 were $758.0 million, an increase of 2.6% from December 31, 2020. During the nine months ended September 30, 2021, $304.8 million of mortgage principal was advanced and $287.7 million was repaid. The weighted average interest rate on the mortgage portfolio at September 30, 2021 was 8.42%, compared to 8.65% at December 31, 2020 and 8.53% at September 30, 2020.
Interest collections for the period remain in line with historical collection rates.
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 | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Revenue | $ | 15,870 | $ | 15,254 | $ | 48,468 | $ | 48,552 | ||||
| Mortgage servicing and management fees | (1,792 | ) | (1,655 | ) | (5,463 | ) | (5,132 | ) | ||||
| Other expenses | (283 | ) | (341 | ) | (1,133 | ) | (1,025 | ) | ||||
| Provision for mortgage losses | (400 | ) | (850 | ) | (1,269 | ) | (2,850 | ) | ||||
| Income before financing costs | 13,395 | 12,408 | 40,603 | 39,545 | ||||||||
| Financing costs | (2,840 | ) | (2,932 | ) | (9,549 | ) | (10,384 | ) | ||||
| Net income and comprehensive income | $ | 10,555 | $ | 9,476 | $ | 31,054 | $ | 29,161 | ||||
| Basic earnings per share | $ | 0.25 | $ | 0.22 | $ | 0.73 | $ | 0.69 | ||||
| Diluted earnings per share | $ | 0.25 | $ | 0.22 | $ | 0.73 | $ | 0.69 | ||||
| Dividends declared | $ | 9,601 | $ | 9,539 | $ | 28,726 | $ | 28,579 | ||||
| Mortgages receivable, end of period | $ | 758,007 | $ | 694,511 | $ | 758,007 | $ | 694,511 | ||||
| Total assets, end of period | $ | 774,353 | $ | 710,826 | $ | 774,353 | $ | 710,826 | ||||
| Shareholders' equity, end of period | $ | 469,372 | $ | 463,133 | $ | 469,372 | $ | 463,133 | ||||
Analysis of mortgage portfolio
| September 30, 2021 | December 31, 2020 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| Mid-rise residential | 31 | $ | 251,201 | 32.8% | 25 | $ | 199,525 | 26.8% | ||||||||||
| High-rise residential | 14 | 207,396 | 27.1% | 16 | 170,074 | 22.8% | ||||||||||||
| Low-rise residential | 14 | 103,355 | 13.5% | 21 | 174,362 | 23.4% | ||||||||||||
| House and apartment | 88 | 62,118 | 8.1% | 63 | 45,522 | 6.1% | ||||||||||||
| Condominium corporation | 13 | 1,858 | 0.2% | 13 | 2,165 | 0.3% | ||||||||||||
| Residential portfolio | 160 | 625,928 | 81.7% | 138 | 591,648 | 79.4% | ||||||||||||
| Commercial | 19 | 139,761 | 18.3% | 20 | 153,666 | 20.6% | ||||||||||||
| Mortgage portfolio | 179 | $ | 765,689 | 100.0% | 158 | $ | 745,314 | 100.0% | ||||||||||
| September 30, 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 | 113 | $ | 481,406 | 62.9% | 62.9% | 8.55% | |||||||||
| Non-GTA Ontario | 42 | 32,024 | 4.2% | 66.5% | 7.71% | ||||||||||
| British Columbia | 22 | 245,359 | 32.0% | 55.5% | 8.23% | ||||||||||
| Alberta | 2 | 6,900 | 0.9% | 94.2% | 8.90% | ||||||||||
| 179 | $ | 765,689 | 100.0% | 60.9% | 8.42% | ||||||||||
| December 31, 2020 | |||||||||||||||
| 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 | 119 | $ | 548,447 | 73.6% | 63.2% | 8.68% | |||||||||
| Non-GTA Ontario | 21 | 21,706 | 2.9% | 64.7% | 8.32% | ||||||||||
| British Columbia | 16 | 163,685 | 22.0% | 51.0% | 8.57% | ||||||||||
| Alberta | 2 | 11,476 | 1.5% | 96.5% | 8.94% | ||||||||||
| 158 | $ | 745,314 | 100.0% | 61.0% | 8.65% | ||||||||||
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 quarter ended September 30, 2021, available on SEDAR at www.sedar.com, 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.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
(416) 867-1053
info@atriummic.com
www.atriummic.com
Jennifer Scoffield
Chief Financial Officer
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/101202