Atrium Mortgage Investment Corporation Achieves Record Q3 Earnings – 8.7% Increase Over Prior Year

TORONTO, Oct. 21, 2015 (GLOBE NEWSWIRE) — Atrium Mortgage Investment Corporation (TSX:AI) today released its unaudited financial results for the three and nine month periods ended September 30, 2015.

Highlights for the quarter

  • Record revenues of $10.5 million, up 16% from prior year
  • Record earnings of $6.1 million, up 10% from prior year
  • Record earnings of $0.25 basic per share, up from $0.23 prior year – 8.7% increase
  • Regular monthly dividend continues at $0.07 per month − $0.84 annual rate, plus special dividend at year-end, as determined by the board of directors
  • High quality mortgage portfolio

    • 75% of portfolio in first mortgages
    • 96% of loan portfolio is less than 75% loan to value
    • Mortgages receivable grew to $459 million
    • Continued focus on low risk real estate sectors

Interested parties are invited to participate in a conference call with management on Thursday, October 22, 2015 at 4:00 p.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 third quarter, as its assets grew to $460 million. For the three months ended September 30, 2015, mortgage interest and fees revenue aggregated $10.5 million, an increase of 16% from the prior year. For the nine months ended September 30, 2015, mortgage interest and fees revenue aggregated $29.7 million, an increase of 18% from the prior year.

Net earnings for the three months ended September 30, 2015 were $6.1 million, an increase of 10% from the prior year. Basic and diluted earnings per common share were $0.25 and $0.24 respectively, for the three months ended September 30, 2015, compared with $0.23 basic and diluted per common share for prior year. Net earnings for the nine months ended September 30, 2015 were $17.5 million, an increase of 12% from the prior year. Basic and diluted earnings per common share were $0.71 and $0.70, respectively, for the nine months ended September 30, 2015, compared with $0.69 basic and $0.68 diluted earnings per common share for the comparable period in the previous year.

The weighted average interest rate on the mortgage portfolio was almost unchanged at 8.77% at September 30, 2015, compared with 8.81% at December 31, 2014. Mortgages portfolio increased by 6% from December 31, 2014 to $462.2 million at September 30, 2015.

Condensed Interim Statements of Earnings and Comprehensive Income      
(Unaudited, 000s, except per share amounts)        
     
  Three months ended
September 30
Nine months ended
September 30
  2015 2014 2015 2014
Revenue  $ 10,542  $ 9,096  $ 29,660  $ 25,037
Mortgage servicing and management fees (1,085) (916) (3,074) (2,459)
Other expenses (288) (213) (804) (679)
Provision for mortgage losses (600) (504) (1,212) (1,080)
Income before financing costs 8,569 7,463 24,570 20,819
Financing costs (2,488) (1,920) (7,067) (5,171)
Earnings and total comprehensive income  $ 6,081  $ 5,543  $ 17,503  $ 15,648
         
Basic earnings per share  $ 0.25  $ 0.23  $ 0.71  $ 0.69
Diluted earnings per share  $ 0.24  $ 0.23  $ 0.70  $ 0.68
         
Dividends declared  $ 5,163  $ 4,994  $ 15,452  $ 14,124
         
Mortgages receivable, end of period  $ 459,033  $ 412,043  $ 459,033  $ 412,043
Total assets, end of period  $ 459,603  $ 412,145  $ 459,603  $ 412,145
Shareholder’ equity, end of period  $ 252,566  $ 248,828  $ 252,566  $ 248,828

For further information on the financial results, and analysis of the company’s mortgage portfolio in addition to that set out below, please refer to Atrium’s unaudited condensed interim financial statements and its management’s discussion and analysis for the three and nine month periods ended September 30, 2015, available on SEDAR at www.sedar.com, and on the company’s website at www.atriummic.com.

Analysis of mortgage portfolio            
  September 30, 2015 December 31, 2014
Mortgage category Number Outstanding
amount
% of
Portfolio
Number Outstanding
amount
% of
Portfolio
(outstanding amounts in 000s)            
Low-rise residential 25  $ 113,404 24.5% 23  $ 85,678 19.7%
House and apartment 117 80,052 17.3% 90 93,070 21.4%
Construction 16 66,894 14.5% 17 61,095 14.1%
High-rise residential 9 35,561 7.7% 8 44,048 10.1%
Mid-rise residential 8 17,554 3.8% 8 12,127 2.8%
Condominium corporation 20 4,568 1.0% 13 3,260 0.8%
Residential portfolio 195 318,033 68.8% 159 299,278 68.9%
Commercial/mixed use 31 144,118 31.2% 31 134,990 31.1%
Mortgage portfolio 226 462,151 100.0% 190 434,268 100.0%
     
  September 30, 2015 December 31, 2014
Mortgage amount Number Outstanding
amount
% of
Portfolio
Number Outstanding
amount
% of
Portfolio
(outstanding amounts in 000s)            
$0 — $2,500,000 174  $ 126,870 27.4% 139  $ 119,655 27.6%
$2,500,001 — $5,000,000 25 90,821 19.7% 26 90,602 20.9%
$5,000,001 — $7,500,000 12 74,037 16.0% 9 54,931 12.6%
$7,500,001 + 15 170,423 36.9% 16 169,080 38.9%
  226 $ 462,151 100.0% 190 $ 434,268 100.0%

As of September 30, 2015, the average outstanding mortgage balance was $2.0 million (December 31, 2014 – $2.3 million), and the median outstanding mortgage balance was $0.9 million (December 31, 2014 – $1.1 million).

Conference call

Interested parties are invited to participate in a conference call with management on Thursday, October 22, 2015 at 4:00 p.m. EDT.

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 5, 2015) please call 1 (855) 859-2056, Conference ID 9453413.

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, please refer to regulatory filings available at www.sedar.com or Atrium’s website at www.atriummic.com.

CONTACT: For additional information, please contact
         
         Robert G. Goodall
         President and Chief Executive Officer
         
         Jeffrey D. Sherman
         Chief Financial Officer
         
         (416) 607-4200
         ir@atriummic.com
         www.atriummic.com