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Atrium Mortgage Investment Corporation Announces Year End Results and Special Dividend

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Toronto, Ontario–(Newsfile Corp. – February 9, 2021) –  Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.B) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) today released its financial results for the year ended December 31, 2020.

Highlights

  • Mortgage portfolio of $745.3 million, 2.1% increase from prior year

  • High quality mortgage portfolio

    • 81.7% of portfolio in first mortgages

    • 91.4% of portfolio is less than 75% loan to value

    • average loan-to-value is 61.0%

  • Revenues of $65.0 million

  • Net income of $39.2 million

  • $0.93 basic and diluted earnings per share for the year ended December 31, 2020

  • $0.02 per share special dividend to shareholders of record December 31, 2020

“We are very pleased with our 2020 results. Our mortgage portfolio grew by 6.5%, or $45.5 million, in Q4 on the strength of a record dollar volume of new loan originations. Our mortgage portfolio continues to show strong resilience to the economic downturn caused by COVID-19 and we continue to have very little exposure to the hardest hit sectors- retail, hospitality and long-term care/retirement homes. The mortgage portfolio ended the year with an average loan to value of 61.0%. Atrium earned net income of $39.2 million in 2020, a record for the company, and up 1.6% from the prior year. Earnings per share exceed our total dividends for the year, even after expensing a $3.8 million loan loss provision in 2020. Atrium increased its aggregate loan loss provision to 1.23% of our mortgage portfolio, which will help protect the balance sheet from the continuing impact of COVID-19 in 2021,” said Rob Goodall, CEO of Atrium. “Lastly, we are in the process of significantly increasing the size of our loan origination team and feel optimistic about our ability to grow our portfolio in 2021.”

Conference call

Interested parties are invited to participate in a conference call with management Wednesday, February 10, 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 5157028. For a replay of the conference call (available until February 23, 2021) please call 1 (855) 859-2056, conference ID 5157028.

Results of operations

Atrium ended the year with assets of $755.3 million, up from $743.6 million at the end of 2019. Revenues were $65.0 million, a decrease of 1.7% from the prior year. Net income for 2020 was a record $39.2 million, an increase of 1.6% from the prior year. Revenues fell slightly as a result of a lower weighted average interest rate in 2020 due to the drop in the Prime Rate in March 2020, coupled with a lower mortgage portfolio balance in the second quarter of 2020 as we scaled back lending at the beginning of the COVID-19 pandemic. Net income increase as a result of lower interest expenses due to the repayment of convertible debentures and a lower weighted average cost of borrowing on our credit facility in 2020 compared to 2019. These lower interest expenses were offset largely by the higher provision for mortgage losses. Atrium’s allowance for mortgage losses at December 31, 2020 totaled $9.2 million, or 1.23% of the mortgage portfolio.

Basic and diluted earnings per common share were $0.93 for the year ended December 31, 2020, compared with $0.97 basic and $0.96 diluted earnings per common share for the prior year.

Mortgages receivable as at December 31, 2020 were $739.0 million, an increase of 1.6% from December 31, 2019. During the year ended December 31, 2020, $271.3 million of mortgage principal was advanced and $254.7 million was repaid. The weighted average interest rate on the mortgage portfolio at December 31, 2020 was 8.65%, compared to 8.81% at December 31, 2019.

Atrium collected 98% of the mortgage interest due in January, which is in line with historical collection rates.

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Financial summary
Consolidated Condensed Statements of Income and Comprehensive Income

Year
ended
December 31
2020
Year
ended
December 31
2019
Year
ended
December 31
2018
Revenue $ 65,019 $ 66,171 $ 58,316
Mortgage servicing and management fees (7,036 ) (6,996 ) (6,279 )
Other expenses (1,410 ) (1,086 ) (1,142 )
Impairment loss on investment property (806 )
Provision for mortgage losses (3,760 ) (1,490 ) (1,800 )
Income before financing costs 52,813 55,793 49,095
Financing costs (13,625 ) (17,225 ) (15,326 )
Net income and comprehensive income $ 39,188 $ 38,568 $ 33,769
     
Basic earnings per share $ 0.93 $ 0.97 $ 0.95
Diluted earnings per share $ 0.93 $ 0.96 $ 0.94
     
Dividends declared $ 38,970 $ 38,314 $ 33,658
     
Mortgages receivable, end of year $ 739,025 $ 727,325 $ 682,721
Total assets, end of year $ 755,315 $ 743,631 $ 699,750
Shareholders’ equity, end of year $ 462,887 $ 455,520 $ 387,306

 

Analysis of mortgage portfolio

December 31, 2020 December 31, 2019
Property Type Number Outstanding amount % of Portfolio Number Outstanding
amount
% of
Portfolio
(outstanding amounts in 000s)            
Mid-rise residential 25 $ 199,525 26.8% 23 $ 177,242 24.3%
Low-rise residential 21 174,362 23.4% 32 216,144 29.6%
High-rise residential 16 170,074 22.8% 13 157,758 21.6%
House and apartment 63 45,522 6.1% 91 66,083 9.1%
Condominium corporation 13 2,165 0.3% 14 2,659 0.4%
Residential portfolio 138 591,648 79.4% 173 619,886 85.0%
Commercial 20 153,666 20.6% 19 109,859 15.0%
Mortgage portfolio 158 $ 745,314 100.0% 192 $ 729,745 100.0%

 

  December 31, 2020
Location of underlying property   Number of mortgages Outstanding amount Percentage outstanding Weighted average loan to value Weighted average interest rate
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% 98.5% 8.94%
  158 $ 745,314 100.0% 61.0% 8.65%

 

  December 31, 2019
Location of underlying property   Number of
mortgages
Outstanding
amount
Percentage
outstanding
Weighted
average
loan to value
Weighted average
interest rate
Greater Toronto Area 153 $ 509,299 69.8% 64.1% 8.85%
Non-GTA Ontario 20 20,625 2.8% 57.6% 8.33%
British Columbia 15 184,680 25.3% 46.9% 8.77%
Alberta 4 15,141 2.1% 64.0% 8.80%
  192 $ 729,745 100.0% 59.5% 8.81%

 

For further information on the financial results, and further analysis of the company’s mortgage portfolio, please refer to Atrium’s consolidated financial statements and its management’s discussion and analysis for the year ended December 31, 2020, 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

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Robert G. Goodall
President and Chief Executive Office
(416) 867-1053

Jennifer Scoffield

Chief Financial Officer

[email protected]
www.atriummic.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/74092

Fintech

Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA)

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As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.

Chime’s Quiet Step Toward Public Markets

Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.

With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.

Source: Bloomberg

ZBD’s Pioneering Achievement: EU MiCA License Approval

ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.

MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.

Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.

Source: Coindesk, PR Newswire

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The Fintech-Credit Union Synergy: A Blueprint for Innovation

The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.

This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.

Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.

Source: PYMNTS

Tackling Student Loan Debt: A Fintech’s Mission

Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.

The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.

As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.

Source: RBJ

Industry Implications and Takeaways

Today’s updates underscore several key themes shaping the fintech landscape:

  1. Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
  2. Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
  3. Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
  4. Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.

 

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SPAYZ.io prepares for iFX EXPO Dubai 2025

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Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.

SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.

Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.

“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”

Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.

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Airtm Enhances Its Board of Directors with Two Strategic Appointments

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Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.

“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”

Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.

Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.

The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.

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