Toronto, Ontario–(Newsfile Corp. – November 8, 2022) – Atrium Mortgage Investment Corporation (TSX: AI) today released its financial results for the three and nine months ended September 30, 2022.

Strong points

  • Record quarterly basic and diluted earnings per share of $0.27 compared to $0.25 per share in the comparative period

  • Record nine-month basic and diluted earnings per share of $0.77 and $0.76, respectively, compared to basic and diluted $0.73 per share a year earlier

  • Record quarterly net income of $11.8 million, up 12.0% over the comparative period

  • Record gross mortgage portfolio of $856.9 million, an increase of 11.7% from December 31, 2021

  • High quality mortgage portfolio

    • 92.0% of the portfolio in first mortgages

    • 99.1% of the portfolio is below 75% loan to value

    • average loan-to-value ratio of 61.4%

“Atrium MIC generated record third quarter basic earnings per share of $0.27, despite declining real estate values ​​over the past six months. Year-to-date, our basic earnings per share are $0.77 compared to $0.73 per share last year. higher interest rates since more than 70% of our loans are variable with interest rates that fluctuate according to variations in the prime rate. Equally important, loan quality remained strong in Q3, with arrears accounting for less than 1.0% of the total mortgage portfolio. first mortgages remain high at 92.0% and the loan to value ratio of the portfolio remains very conservative at 61.4%. more than 0.90% of the mortgage loan portfolio. We secured an additional $25 million in our bank line of credit, which will allow us to take advantage of high-quality lending opportunities as the big banks tighten their credit standards and n swell their customer base. Finally, I am very pleased to announce that Jennifer Scoffield, our former Chief Financial Officer, has been appointed to the Atrium Board of Directors,” said Robert Goodall, CEO of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management on Wednesday, November 9, 2022 at 4 p.m. ET to discuss the results. To join or listen to the live conference call, please call
1 (888) 886-7786 or (416) 764-8658, conference number 01533012. For a replay of the conference call (available until November 22, 2022), please call 1 (877) 674-6060, telephone number conference 533012#.

Operating results

For the three months ended September 30, 2022, Atrium reported record assets of $871.3 million, compared to $775.5 million at the end of 2021. Revenue was $20.6 million, an increase of 30.0% compared to the third quarter of the previous year. Net income for the third quarter of 2022 was $11.8 million, an increase of 12.0% over the comparative period. Atrium’s provision for mortgage losses as of September 30, 2022 totaled $9.5 million, or 1.11% of the gross mortgage portfolio.

For the nine months ended September 30, 2022, revenue was $55.2 million, an increase of 13.9% over the nine months ended September 30, 2021. Net income for the nine months ended September 30, 2022 was $33.1 million, an increase of 6.6%. of the period of the previous year.

Basic and diluted earnings per common share were $0.27 for the three months ended September 30, 2022, compared to basic and diluted earnings per common share of $0.25 the prior year. Basic and diluted earnings per common share were $0.77 and $0.76, respectively, for the nine months ended September 30, 2022, compared to basic and diluted earnings per common share of $0.73 for the nine months ended September 30, 2021.

Mortgage receivables at September 30, 2022 were a record $850.9 million, up from $759.2 million at December 31, 2021. During the nine months ended September 30, 2022, 454 $.5 million of mortgage principal was advanced and $373.5 million was repaid. The weighted average interest rate of the mortgage loan portfolio as at September 30, 2022 was 10.04%, compared to 8.26% as at December 31, 2021.

Financial Summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, in thousands, except per share amounts)

Three months completed

End of nine months

September 30

September 30

2022

2021

2022

2021

Revenue

$

20,634

$

15,870

$

55,212

$

48,468

Mortgage service and management fees

(2,056

)

(1,792

)

(6,395

)

(5,463

)

Other expenses

(292

)

(283

)

(828

)

(1,133

)

Impairment of investment properties held for sale

(1,832

)

Recovery of (provision for) mortgage losses

(1,114

)

(400

)

316

(1,269

)

Earnings before financing costs

17,172

13,395

46,473

40,603

Funding costs

(5,346

)

(2,840

)

(13,374

)

(9,549

)

Net income and total comprehensive income

$

11,826

$

10,555

$

33,099

$

31,054

Basic earnings per share

$

0.27

$

0.25

$

0.77

$

0.73

Diluted earnings per share

$

0.27

$

0.25

$

0.76

$

0.73

Dividends declared

$

9,706

$

9,601

$

29,029

$

28,726

Mortgages receivable, end of period

$

850 920

$

758,007

$

850 920

$

758,007

Total assets, end of period

$

871 302

$

774,353

$

871 302

$

774,353

Equity at the end of the period

$

480 462

$

469 372

$

480 462

$

469 372

Mortgage portfolio analysis

September 30, 2022

December 31, 2021

Exceptional

% of

Exceptional

% of

Property type

Number

amount

Wallet

Number

amount

Wallet

(outstandings in thousands)

High rise residential

21

$

300 850

35.1%

18

$

234,847

30.6%

Mid-Rise Residential

31

243,816

28.5%

34

253,507

33.0%

Low Rise Residential

13

121 128

14.1%

15

122,569

16.0%

House and apartment

141

101,084

11.8%

101

70,944

9.3%

condominium corporation

14

2,302

0.3%

13

1,752

0.2%

Residential portfolio

220

769 180

89.8%

181

683 619

89.1%

Commercial

24

87,675

10.2%

16

83,512

10.9%

Mortgage portfolio

244

$

856 855

100.0%

197

$

767 131

100.0%

September 30, 2022

Weighted

Weighted

Number of

Exceptional

Percentage

medium

medium

Location of the underlying property

mortgages

amount

exceptional

loan to value

interest rate

(outstandings in thousands)

Greater Toronto Area

161

$

582,797

68.0%

61.6%

10.28%

Non-GTA Ontario

55

34,642

4.0%

68.9%

7.65%

British Columbia

26

231,076

27.0%

59.5%

9.75%

alberta

2

8,340

1.0%

71.2%

11.73%

244

$

856 855

100.0%

61.4%

10.04%

December 31, 2021

Weighted

Weighted

Number of

Exceptional

Percentage

medium

medium

Location of the underlying property

mortgages

amount

exceptional

loan to value

interest rate

(outstandings in thousands)

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 more information on financial results and a more in-depth analysis of the Company’s mortgage loan portfolio, please refer to Atrium’s interim consolidated financial statements and MD&A for the three and nine month periods ended September 30, 2022, available on SEDAR at www.sedar.comand on the company’s website at www.atriummic.com.

Appointment of a board member

Atrium is pleased to announce the appointment of Jennifer Scoffield as a member of the Board of Directors, effective November 8, 2022. Jennifer is the former Chief Financial Officer of Atrium and retired from this role in September 2022 Jennifer brings a wealth of experience gained in leadership positions in the public and public sectors. private companies throughout his career.

About Atrium

First non-bank lender in Canada™
Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centers across Canada where real estate stability and liquidity is high. Atrium’s objectives are to provide its shareholders with stable and secure dividends and to preserve equity by lending within prudent risk parameters. Atrium is a mortgage investment company (MIC) as defined in the income tax law, is therefore not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days of December 31 of each year. These 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 more information on Atrium, please consult the regulatory documents available at www.sedar.com or investor information on Atrium’s website at www.atriummic.com.

For more information, please contact
Robert G. Goodall
President and Chief

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/143544