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
info@atriummic.com
www.atriummic.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/154820