Fintech
Atrium Mortgage Investment Corporation Announces Special Dividend, Record Earnings and Appointment of Chief Operating Officer
Toronto, Ontario–(Newsfile Corp. – February 15, 2022) – Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) today released its financial results for the year ended December 31, 2021.
Highlights
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Mortgage portfolio of $767.1 million, 2.9% increase from December 31, 2020
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High quality mortgage portfolio
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91.4% of portfolio in first mortgages
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99.3% of portfolio is less than 75% loan to value
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average loan-to-value is 60.9%
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Record net income of $41.8 million, up 6.7% from the prior year
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Record basic and diluted earnings per share of $0.98, up 5.4% from prior year
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$0.07 per share special dividend to shareholders of record December 31, 2021
“We are very pleased with our 2021 results on a number of different levels. First, our earnings of $0.98 per share was the highest result in our history as a public company. Secondly, this result was achieved despite much higher than normal loan repayments in Ontario, where the annual loan turnover rate was 73%. It is a real testament to our underwriting team across Canada that we were able to increase the overall portfolio size in 2021 despite this unprecedented level of loan turnover. Lastly, we are also proud of the fact that we reduced our percentage of high ratio loans (loans with a loan to value greater than 75%) in the portfolio from 8.6% at the beginning of the year to less than 1.0% by year end. So, our record earnings per share was achieved even as we succeeded in deliberately lowering the risk profile of the portfolio. The mortgage portfolio remains defensively positioned with a modest average loan to value of 60.9%,” said Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management Wednesday, February 16, 2022 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 2599690. For a replay of the conference call (available until March 1, 2022) please call 1 (855) 859-2056, conference ID 2599690.
Results of operations
For the year ended December 31, 2021, Atrium reported assets of $775.5 million, up from $755.3 million at the end of 2020. Revenues were $64.2 million, a decrease of 1.2% from the prior year. Net income for 2021 was a record $41.8 million, an increase of 6.7% from the prior year. Atrium’s allowance for mortgage losses at December 31, 2021 totaled $10.4 million, or 1.36% of the mortgage portfolio.
Basic and diluted earnings per common share were $0.98 for the year ended December 31, 2021, compared with $0.93 basic and diluted earnings per common share in the prior year, an increase of 5.4%.
The board of directors declared a special dividend of $0.07 per share for 2021, resulting in a total dividend of $0.97 per common share paid to shareholders in the year, compared to $0.92 for the prior year.
Mortgages receivable as at December 31, 2021 were $759.2 million, up from $739.0 as at December 31, 2020. During the year ended December 31, 2021, $470.0 million of mortgage principal was advanced and $436.9 million was repaid. The weighted average interest rate on the mortgage portfolio at December 31, 2021 was 8.26%, compared to 8.65% at December 31, 2020.
Financial summary
Consolidated Statements of Income and Comprehensive Income
| (000s, except per share amounts) | Year | Year | Year | ||||||
| ended | ended | ended | |||||||
| December 31 | December 31 | December 31 | |||||||
| 2021 | 2020 | 2019 | |||||||
| Revenue | $ | 64,235 | $ | 65,019 | $ | 66,171 | |||
| Mortgage servicing and management fees | (7,241 | ) | (7,036 | ) | (6,996 | ) | |||
| Other expenses | (1,382 | ) | (1,410 | ) | (1,086 | ) | |||
| Impairment loss on investment property | − | − | (806 | ) | |||||
| Provision for mortgage losses | (1,289 | ) | (3,760 | ) | (1,490 | ) | |||
| Income before financing costs | 54,323 | 52,813 | 55,793 | ||||||
| Financing costs | (12,530 | ) | (13,625 | ) | (17,225 | ) | |||
| Net income and comprehensive income | $ | 41,793 | $ | 39,188 | $ | 38,568 | |||
| Basic earnings per share | $ | 0.98 | $ | 0.93 | $ | 0.97 | |||
| Diluted earnings per share | $ | 0.98 | $ | 0.93 | $ | 0.96 | |||
| Dividends declared | $ | 41,346 | $ | 38,970 | $ | 38,314 | |||
| Mortgages receivable, end of year | $ | 759,225 | $ | 739,025 | $ | 727,325 | |||
| Total assets, end of year | $ | 775,487 | $ | 755,315 | $ | 743,631 | |||
| Shareholders’ equity, end of year | $ | 470,167 | $ | 462,887 | $ | 455,520 |
Analysis of mortgage portfolio
| December 31, 2021 | December 31, 2020 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| Mid-rise residential | 34 | $ | 253,507 | 33.0% | 25 | $ | 199,525 | 26.8% | ||||||||||
| High-rise residential | 18 | 234,847 | 30.6% | 16 | 170,074 | 22.8% | ||||||||||||
| Low-rise residential | 15 | 122,569 | 16.0% | 21 | 174,362 | 23.4% | ||||||||||||
| House and apartment | 101 | 70,944 | 9.3% | 63 | 45,522 | 6.1% | ||||||||||||
| Condominium corporation | 13 | 1,752 | 0.2% | 13 | 2,165 | 0.3% | ||||||||||||
| Residential portfolio | 181 | 683,619 | 89.1% | 138 | 591,648 | 79.4% | ||||||||||||
| Commercial | 16 | 83,512 | 10.9% | 20 | 153,666 | 20.6% | ||||||||||||
| Mortgage portfolio | 197 | $ | 767,131 | 100.0% | 158 | $ | 745,314 | 100.0% | ||||||||||
| December 31, 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 | 126 | $ | 472,851 | 61.6% | 62.3% | 8.34% | |||||||||
| Non-GTA Ontario | 44 | 33,361 | 4.4% | 67.4% | 7.65% | ||||||||||
| British Columbia | 25 | 253,771 | 33.1% | 56.7% | 8.17% | ||||||||||
| Alberta | 2 | 7,148 | 0.9% | 94.4% | 8.90% | ||||||||||
| 197 | $ | 767,131 | 100.0% | 60.9% | 8.26% | ||||||||||
| 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 consolidated financial statements and its management’s discussion and analysis for the year ended December 31, 2021, available on SEDAR at www.sedar.com, and on the company’s website at www.atriummic.com.
Appointment of Chief Operating Officer
Atrium is pleased to announce the appointment of Richard Munroe as Chief Operating Officer, effective February 15, 2022. Richard joined Atrium in September 2006 and most recently held the title of Managing Director, Ontario. Richard has over 15 years of experience underwriting commercial and multi-residential mortgages on behalf of Atrium.
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
[email protected]
www.atriummic.com
Jennifer Scoffield
Chief Financial Officer
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
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:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- 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.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
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.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
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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