Fintech

Atrium Mortgage Investment Corporation Announces First Quarter Results with Record Quarterly Net Income

Published

2 years ago

May 10, 2023

Toronto, Ontario–(Newsfile Corp. – May 10, 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 three month period ended March 31, 2023.

Highlights

Record quarterly basic and diluted earnings per share since going public of $0.33 and $0.31, respectively, compared to $0.25 basic and diluted per share in the comparative period
Record quarterly net income of $14.2 million, up 34.1% from comparative period
High quality mortgage portfolio
- 95.4% of portfolio in first mortgages
- 96.3% of portfolio is less than 75% loan to value
- average loan-to-value of 60.8%

“Atrium continued to post strong financial results in the first quarter with record net income of $14.2 million. This translated into an EPS of $0.33 which was also a record since becoming a public company over 10 years ago. Our gross mortgage portfolio of $846 million was down marginally over the quarter but remains meaningfully higher on year-over-year basis. The elevated interest rate environment combined with our conservative approach to risk management drove our results. We continue to lend defensively given soft real estate market conditions and uncertainties in the broader economy. The portfolio remained strong at quarter end with no impairments, a weighted average LTV of 60.8% and 95.4% of our mortgages in first position. I am confident that our team has the right depth and experience to manage through the current real estate cycle” said Robert Goodall, CEO of Atrium.

Results of operations

For the three month period ended March 31, 2023, Atrium reported assets of $854.5 million, down from $874.8 million at the end of 2022. Revenues were $23.7 million, an increase of 44.8% from the first quarter of the prior year. Net income for first quarter of 2023 was $14.2 million, an increase of 34.1% from the first quarter of the prior year. Atrium’s allowance for mortgage losses at March 31, 2023 totaled $11.7 million, or 1.38% of the gross mortgage portfolio.

Basic and diluted earnings per common share were $0.33 and $0.31, respectively, for the three months ended March 31, 2023, compared with $0.25 basic and diluted earnings per common share in the comparative period, an increase of 32.0% (basic).

Mortgages receivable as at March 31, 2023 was $840.0 million, down from $860.4 million as at December 31, 2022. During the three month period ended March 31 2023, $65.2 million of mortgage principal was advanced and $87.9 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2023 was 11.04%, compared to 10.77% at December 31, 2022.

Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)

		Three months ended
		March 31
		2023		2022
Revenue	$	23,707	$	16,377
Mortgage servicing and management fees		(2,054)		(1,878)
Other expenses		(444)		(324)
Impairment of investment property held for sale		–		(1,832)
Recovery of prior mortgage losses		157		800
Recovery of (provision for) mortgage losses		(952)		1,013
Income before financing costs		20,414		14,156
Financing costs		(6,202)		(3,558)
Net income and comprehensive income	$	14,212	$	10,598
Basic earnings per share	$	0.33	$	0.25
Diluted earnings per share	$	0.31	$	0.25
Dividends declared	$	9,785	$	9,648
Mortgages receivable, end of period	$	840,019	$	785,588
Total assets, end of period	$	854,511	$	824,886
Shareholders’ equity, end of period	$	482,763	$	474,364

Analysis of mortgage portfolio

	As at March 31, 2023				As at December 31, 2022
			Outstanding	% of			Outstanding	% of
Property Type	Number		amount	Portfolio	Number		amount	Portfolio
(outstanding amounts in 000s)
High-rise residential	19	$	272,326	32.2%	20	$	300,989	34.7%
Mid-rise residential	31		240,154	28.4%	30		225,281	26.0%
Low-rise residential	13		129,676	15.3%	14		128,244	14.8%
House and apartment	150		108,528	12.8%	158		108,124	12.5%
Condominium corporation	12		2,082	0.3%	12		2,189	0.3%
Residential portfolio	225		752,766	89.0%	234		764,827	88.3%
Commercial	23		93,138	11.0%	26		101,435	11.7%
Mortgage portfolio	248	$	845,904	100.0%	260	$	866,262	100.0%

	As at March 31, 2023
					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	159	$	571,228	67.5%	61.6%	11.36%
Non-GTA Ontario	59		39,004	4.6%	68.0%	8.83%
British Columbia	28		226,800	26.8%	57.2%	10.57%
Alberta	2		8,872	1.1%	76.0%	12.77%
	248	$	845,904	100.0%	60.8%	11.04%

	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%

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 quarter ended March 31, 2023, 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 Thursday, May 11, 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 48720415. For a replay of the conference call (available until May 24, 2023) please call 1 (877) 674-6060, conference ID 720415 #.

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/165608

Fintech

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

Published

2 weeks ago

December 19, 2024

Peter Tolan

fintech-pulse:-your-daily-industry-brief-(chime,-zbd,-mica)

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.

Fintech

SPAYZ.io prepares for iFX EXPO Dubai 2025

Published

2 weeks ago

December 19, 2024

Adrienn Sarkany

spayz.io-prepares-for-ifx-expo-dubai-2025

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.

Fintech

Airtm Enhances Its Board of Directors with Two Strategic Appointments

Published

2 weeks ago

December 19, 2024

Adrienn Sarkany

airtm-enhances-its-board-of-directors-with-two-strategic-appointments

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.

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