Fintech
Atrium Mortgage Investment Corporation Announces Highest Quarterly and Annual Net Income in Its History and a Record Special Dividend
Toronto, Ontario–(Newsfile Corp. – February 14, 2023) – Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the year ended December 31, 2022.
Highlights
- Record annual basic and diluted earnings per share since going public 10 years ago of $1.08 and $1.06, respectively, compared to $0.98 basic and diluted per share in the prior year
- Record quarterly basic and diluted earnings per share since going public of $0.31 and $0.30, respectively, compared to $0.25 basic and diluted per share in the comparative period
- Record net income of $46.3 million, up 10.9% from prior year
- Record gross mortgage portfolio of $866.3 million, an 12.9% increase from December 31, 2021
- $0.23 per share special dividend to shareholders of record on December 30, 2022
- High quality mortgage portfolio
- 92.5% of portfolio in first mortgages
- 97.1% of portfolio is less than 75% loan to value
- average loan-to-value of 59.4%
“2022 proved to be a record year for Atrium in terms of portfolio growth and earnings. Our EPS of $1.08 was the highest in our company’s history as a publicly traded company. The mortgage portfolio of $866 million was almost $100 million larger than last year, which reflects the increased size and quality of our underwriting teams in Toronto and Vancouver. Over the course of the year, we repositioned the portfolio to benefit from rising short term rates and by year end over 75% of the portfolio had prime-based pricing, compared to 60% at the start of the year. Most importantly, we continued to lend on a disciplined basis through conservative underwriting, active portfolio management, and a focus on high quality borrowers in large urban centers. As a result, the mortgage portfolio was defensively positioned at year end with a weighted average portfolio loan to value of 59.4%, only 1.1% of the portfolio in default, and first mortgages representing 92.5% of the portfolio. Our primary focus in 2023 will be maintaining a resilient mortgage portfolio that can withstand an economic slowdown and soft real estate market conditions,” said Robert Goodall, CEO of Atrium.
Results of operations
For the year ended December 31, 2022, Atrium reported record assets of $874.8 million, up from $775.5 million at the end of 2021. Revenues were $78.4 million, an increase of 22.0% from the prior year. Net income for 2022 was $46.3 million, an increase of 10.9% from the prior year. Atrium’s allowance for mortgage losses at December 31, 2022 totaled $10.7 million, or 1.24% of the gross mortgage portfolio.
Basic and diluted earnings per common share were $1.08 and $1.06, respectively, for the year ended December 31, 2022, compared with $0.98 basic and diluted earnings per common share in the prior year, an increase of 10.2% (basic). Basic and diluted earnings per common share were $0.31 and $0.30, respectively, for the fourth quarter compared to $0.25 basic and diluted in the comparative quarter.
The board of directors declared a special dividend of $0.23 for 2022, resulting in a total dividend of $1.13 per common share paid to shareholders in the year, compared to $0.97 for the prior year.
Mortgages receivable as at December 31, 2022 was a record $860.4 million, up from $759.2 million as at December 31, 2021. During the year ended December 31, 2022, $517.6 million of mortgage principal was advanced and $429.8 million was repaid. The weighted average interest rate on the mortgage portfolio at December 31, 2022 was 10.77%, compared to 8.26% at December 31, 2021.
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 | |||||||
| 2022 | 2021 | 2020 | |||||||
| Revenue | $ | 78,371 | $ | 64,235 | $ | 65,019 | |||
| Mortgage servicing and management fees | (8,526 | ) | (7,241 | ) | (7,036 | ) | |||
| Other expenses | (1,098 | ) | (1,382 | ) | (1,410 | ) | |||
| Impairment loss on investment property held for sale | (1,832 | ) | − | − | |||||
| Recovery of prior mortgage losses | 1,050 | − | − | ||||||
| Provision for mortgage losses | (1,914 | ) | (1,289 | ) | (3,760 | ) | |||
| Income before financing costs | 66,051 | 54,323 | 52,813 | ||||||
| Financing costs | (19,719 | ) | (12,530 | ) | (13,625 | ) | |||
| Net income and comprehensive income | $ | 46,332 | $ | 41,793 | $ | 39,188 | |||
| Basic earnings per share | $ | 1.08 | $ | 0.98 | $ | 0.93 | |||
| Diluted earnings per share | $ | 1.06 | $ | 0.98 | $ | 0.93 | |||
| Dividends declared | $ | 48,736 | $ | 41,346 | $ | 38,970 | |||
| Mortgages receivable, end of year | $ | 860,374 | $ | 759,225 | $ | 739,025 | |||
| Total assets, end of year | $ | 874,780 | $ | 775,487 | $ | 755,315 | |||
| Shareholders’ equity, end of year | $ | 475,564 | $ | 470,167 | $ | 462,887 |
Analysis of mortgage portfolio
| As at December 31, 2022 | As at December 31, 2021 | |||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||
| High-rise residential | 20 | $ | 300,989 | 34.7% | 18 | $ | 234,847 | 30.6% | ||||||||
| Mid-rise residential | 30 | 225,281 | 26.0% | 34 | 253,507 | 33.0% | ||||||||||
| Low-rise residential | 14 | 128,244 | 14.8% | 15 | 122,569 | 16.0% | ||||||||||
| House and apartment | 158 | 108,124 | 12.5% | 101 | 70,944 | 9.3% | ||||||||||
| Condominium corporation | 12 | 2,189 | 0.3% | 13 | 1,752 | 0.2% | ||||||||||
| Residential portfolio | 234 | 764,827 | 88.3% | 181 | 683,619 | 89.1% | ||||||||||
| Commercial | 26 | 101,435 | 11.7% | 16 | 83,512 | 10.9% | ||||||||||
| Mortgage portfolio | 260 | $ | 866,262 | 100.0% | 197 | $ | 767,131 | 100.0% | ||||||||
| As at December 31, 2022 | |||||||||||||||
| 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 | 169 | $ | 598,207 | 69.0% | 59.7% | 11.04% | |||||||||
| Non-GTA Ontario | 61 | 38,950 | 4.5% | 68.7% | 8.25% | ||||||||||
| British Columbia | 28 | 220,727 | 25.5% | 56.4% | 10.41% | ||||||||||
| Alberta | 2 | 8,378 | 1.0% | 71.2% | 12.55% | ||||||||||
| 260 | $ | 866,262 | 100.0% | 59.4% | 10.77% | ||||||||||
| As at 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% | ||||||||||
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, 2022, 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 Wednesday, February 15, 2023 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1 (888) 886-7786 or (416) 764-8658, conference ID 01171657. For a replay of the conference call (available until February 28, 2023) please call 1 (877) 674-6060, conference ID 171657#.
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
John Ahmad
Chief Financial Officer
(416) 867-1053
[email protected]
www.atriummic.com
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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