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Atrium Mortgage Investment Corporation Achieves Record Q3 Earnings– 11.9% Increase Over Prior Year

TORONTO, Oct. 20, 2016 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) today released its unaudited financial results for the three and nine month periods ended September 30, 2016.

Highlights for the quarter

  • Record earnings of $6.8 million, up 11.9% from prior year
  • Record $0.72 basic earnings per share year-to-date
  • $0.25 earnings per share in third quarter
  • Revenues of $11.5 million, up 8.7% from prior year
  • Portfolio of $526 million, up 16.4% from prior year
  • High quality mortgage portfolio
    • 81% of portfolio in first mortgages
    • 88% of portfolio is less than 75% loan to value; average loan-to-value is 64%
    • Exposure in Alberta reduced to 7.5% of portfolio, ahead of schedule

Interested parties are invited to participate in a conference call with management on Wednesday, October 26, 2016 at 9:00 a.m. EDT. Please refer to the call-in information at the end of this news release.

Results of operations

Atrium achieved record results in the quarter, as its assets grew to $523 million. For the three months ended September 30 2016, mortgage interest and fee revenue aggregated $11.5 million, an increase of 8.7% from the prior year. For the nine months ended September 30, 2016, mortgage interest and fees revenue aggregated $32.3 million, an increase of 8.8% from the prior year.

Net earnings for the three months ended September 30, 2016 were $6.8 million, an increase of 11.9% from the prior year. Basic and diluted earnings per common share were $0.25, for the three months ended September 30, 2016, compared with $0.25 basic and $0.24 diluted earnings per common share for the prior year. Net earnings for the nine months ended September 30, 2016 were $19.4 million, an increase of 10.6% from the prior year. Basic and diluted earnings per common share were $0.72 and $0.71, respectively, for the nine months ended September 30, 2016, compared with $0.71 basic and $0.70 diluted earnings per common share for the comparable period in the previous year. Dividends paid to date aggregate $0.645: any excess of earnings over dividends for the year will be paid in February 2017 to shareholders of record December 31, 2016.

The company had $521 million of mortgages receivable as at September 30, 2016, an increase of 4.1% from the prior quarter and 16.4% from the prior year end. During the quarter, $60 million of mortgages were advanced, and $38 million of mortgages were repaid.

Atrium had previously indicated that it expected to reduce exposure in Alberta to 10% of its total mortgage portfolio by year-end; we are pleased that this objective has been achieved ahead of schedule. Atrium’s exposure in Alberta has been reduced from 25 loans constituting 13.5% of the portfolio at December 31, 2015 to 13 loans and 7.5% of the portfolio at September 30, 2016.

In May, 2016, Atrium noted that it had three mortgage loans outstanding to Urbancorp and related parties of Urbancorp. Subsequent to September 30, 2016, all loans have been repaid in full.

The weighted average interest rate on the mortgage portfolio decreased slightly to 8.56% at September 30, 2016, compared with 8.66% at December 31, 2015 and 8.60% at June 30, 2016.

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

Three months endedNine months ended
September 30
September 30
2016 2015 2016 2015
Revenue$11,459 $10,542 $32,266 $29,660
Mortgage servicing and management fees (1,185) (1,085) (3,363) (3,074)
Other expenses (287) (288) (844) (804)
Provision for mortgage losses (350) (600) (600) (969)
Income before financing costs 9,637 8,569 27,090 24,570
Financing costs (2,832) (2,488) (7,730) (7,067)
Earnings and total comprehensive income$6,805 $6,081 $19,360 $17,503
Basic earnings per share$0.25 $0.25 $0.72 $0.71
Diluted earnings per share$0.25 $0.24 $0.71 $0.70
Dividends declared$5,809 $5,163 $17,384 $15,452
Dividends declared per share$0.215 $0.210 $0.645 $0.630
Mortgages receivable, end of period$521,405 $459,033 $521,405 $459,033
Total assets, end of period$522,634 $459,603 $522,634 $459,603
Shareholders’ equity, end of period$279,499 $252,566 $279,499 $252,566

Analysis of mortgage portfolio

September 30, 2016
December 31, 2015
Outstanding% of Outstanding% of
Mortgage categoryNumberamountPortfolioNumberamountPortfolio
(outstanding amounts in 000s)
Low-rise residential31$151,244 28.8%23$110,034 24.3%
House and apartment110 90,284 17.2%110 84,755 18.8%
Construction6 48,365 9.2%9 44,701 9.9%
High-rise residential7 46,608 8.9%9 42,245 9.4%
Mid-rise residential5 26,524 5.0%7 14,662 3.2%
Condominium corporation18 4,224 0.8%18 4,111 0.9%
Residential portfolio177 367,249 69.9%176 300,508 66.5%
Commercial/mixed use30 158,437 30.1%31 151,083 33.5%
Mortgage portfolio207 525,686 100.0%207 451,591 100.0%


September 30, 2016
WeightedWeighted
Number ofOutstandingPercentageaverageaverage
Location of underlying propertymortgagesamountoutstandingloan to valueinterest rate
(outstanding amounts in 000s)
Greater Toronto Area161$358,630 68.2% 64.9% 8.51%
Non-GTA Ontario20 13,933 2.6% 66.0% 9.00%
Saskatchewan1 11,810 2.3% 97.0% 8.50%
Alberta13 39,297 7.5% 63.0% 9.28%
British Columbia12 102,016 19.4% 56.4% 8.45%
207$525,686 100.0% 63.9% 8.56%


December 31, 2015
WeightedWeighted
Number ofOutstandingPercentageaverageAverage
Location of underlying propertymortgagesamountoutstandingloan to valueinterest rate
(outstanding amounts in 000s)
Greater Toronto Area152$292,547 64.8% 66.1% 8.61%
Non-GTA Ontario15 11,436 2.5% 67.3% 8.99%
Saskatchewan1 10,822 2.4% 71.1% 8.50%
Alberta25 61,078 13.5% 59.7% 8.68%
British Columbia14 75,708 16.8% 62.6% 8.83%
207$451,591 100.0% 64.7% 8.66%

For further information on the financial results, and analysis of the company’s mortgage portfolio in addition to that set out above, please refer to Atrium’s unaudited interim financial statements and its management’s discussion and analysis for the three and nine month periods ended September 30, 2016, 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 on Wednesday, October 26, 2016 at 9:00 a.m. EDT to discuss the results. 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 November 2, 2016) please call 1 (855) 859-2056, Conference ID 95334979.

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 Jeffrey D. Sherman Chief Financial Officer (416) 867-1053 info@atriummic.com www.atriummic.com

Source:Atrium Mortgage Investment Corporation