Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Atrium Mortgage Investment Corporation Achieves Record Revenues and Earnings in 2017

Toronto, Ontario--(Newsfile Corp. - February 8, 2018) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) (TSX: AI.DB.C) today released its financial results for the year ended December 31, 2017.

Highlights

  • Record revenues of $50.4 million, up 14.3% from prior year
  • Earnings of $29.1 million, up 11.3% from prior year
  • $0.95 basic and $0.94 diluted earnings per share for the year ended December 31, 2017
  • $0.04 per share special dividend to shareholders of record December 31, 2017
  • $0.92 total dividends per share in 2017
  • 2018 regular monthly dividend increased to $0.90 per annum
  • Mortgage portfolio increased 18.1% year-over-year to $632 million at December 31, 2017
  • High quality mortgage portfolio
    • 81.8% of portfolio in first mortgages
    • 85.9% of loan portfolio is less than 75% loan to value
    • average loan-to-value is 61.5%

"Overall, I am pleased with Atrium's performance in 2017. We had a record level of loan advances during the year of $353.7 million, which resulted in an 18% growth in our Portfolio. Our new loans continue to be strategically diversified by real estate sector. We continue to lend conservatively, with a high percentage of first mortgages and an overall portfolio loan-to-value ratio below historic levels," said Rob Goodall, CEO of Atrium.

"Once again we would like to thank our real estate clients for their continued loyalty, and our shareholders for their continuing support. We are proud to state that Atrium continues to be regarded as Canada's premier non-bank lender™."

Interested parties are invited to participate in a conference call with management on Friday, February 9, 2018 at 4:00 p.m. EST. Please refer to the call-in information at the end of this news release.

Results of operations

Atrium achieved record results, as its assets grew to $627.9 million, and revenues for the year were $50.4 million, an increase of 14.3% from the prior year. For the year ended December 31, 2017, earnings were $29.1 million, an increase of 11.3% from the prior year.

Basic and diluted earnings per common share were $0.95 and $0.94, respectively, for the year ended December 31, 2017, compared with $0.97 basic and $0.95 diluted earnings per common share in the previous year.

The company had $626.8 million of mortgages receivable as at December 31, 2017, an increase of 18.1% from the previous year. During the year, $353.7 million of mortgages were advanced, and $263.2 million of mortgages were repaid.

The weighted average interest rate on the mortgage portfolio was 8.44% at December 31, 2017, compared with 8.34% at September 30, 2017 and 8.50% at December 31, 2016.

Condensed Statements of Earnings and Comprehensive Income
($000s, except per share amounts)

    Year     Year     Year  
    ended     ended     ended  
    December 31     December 31     December 31  
    2017     2016     2015  
Revenue $  50,359   $  44,042   $  40,206  
Mortgage servicing and management fees   (5,470 )   (4,661 )   (4,173 )
Other expenses   (1,251 )   (1,221 )   (1,187 )
Provision for mortgage losses   (1,850 )   (1,519 )   (1,912 )
Income before financing costs   41,788     36,641     32,934  
Financing costs   (12,729 )   (10,521 )   (9,597 )
Earnings and total comprehensive income $  29,059   $  26,120   $  23,337  
                   
Basic earnings per share $  0.95   $  0.97   $  0.94  
Diluted earnings per share $  0.94   $  0.95   $  0.93  

For further information on the financial results, please refer to Atrium's financial statements for the year ended December 31, 2017, and its management's discussion and analysis for the same period, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.

Mortgage portfolio                                    
($000s)   December 31, 2017     December 31, 2016  
          Outstanding     % of           Outstanding     % of  
Mortgage category   Number     amount     Portfolio     Number     amount     Portfolio  
(outstanding amounts in 000s)                                    
Low-rise residential   36   $  234,343     37.1%     30   $  135,701     25.4%  
House and apartment   120     86,287     13.6%     102     99,456     18.6%  
Construction   8     64,828     10.3%     8     49,345     9.2%  
High-rise residential   7     44,949     7.1%     7     53,182     9.9%  
Mid-rise residential   4     31,471     5.0%     5     28,787     5.4%  
Condominium corporation   14     2,887     0.4%     16     3,548     0.7%  
   Residential portfolio   189     464,765     73.5%     168     370,019     69.2%  
Commercial/mixed use   27     167,622     26.5%     29     165,231     30.8%  
   Mortgage portfolio   216     632,387     100.0%     197     535,250     100.0%  
Accrued interest receivable         2,537                 2,126        
Mortgage discount         (262 )               (360 )      
Unamortized origination fees         (706 )               (626 )      
Provision for mortgage losses         (7,200 )               (5,800 )      
   Mortgages receivable       $  626,756               $  530,590        

 

A summary of mortgages by size is presented below.

($000s)   December 31, 2017     December 31, 2016  
          Outstanding     % of           Outstanding     % of  
Mortgage amount   Number     amount     Portfolio     Number     amount     Portfolio  
(outstanding amounts in 000s)                                    
$0 - $2,500,000   161   $  105,386     16.7%     145   $  102,656     19.2%  
$2,500,001 - $5,000,000   19     69,755     11.0%     24     89,340     16.7%  
$5,000,001 - $7,500,000   10


This post first appeared on Newsfile Corp News Releases, please read the originial post: here

Share the post

Atrium Mortgage Investment Corporation Achieves Record Revenues and Earnings in 2017

×

Subscribe to Newsfile Corp News Releases

Get updates delivered right to your inbox!

Thank you for your subscription

×