AI Atrium Mortgage Investment Corporation

Atrium Mortgage Investment Corporation (TSX:AI) today released its unaudited financial results for the three month period ended March 31, 2016.

Highlights for the quarter

• Record earnings of $6.1 million, up 9.3% from prior year
• Earnings of $0.23 per share
• Revenues of $10.1 million, up 6.6% from prior year
• Regular monthly dividend increased to $0.215 for the quarter (annualized rate of $0.86)
• High quality mortgage portfolio
  • 83% of portfolio in first mortgages
  • 96% of portfolio is less than 75% loan to value
  • Mortgage portfolio grew to $464 million
  • Continued focus on low risk real estate sectors

Interested parties are invited to participate in a conference call with management on Thursday, April 21, 2016 at 4:00 p.m. EDT. Please refer to the call-in information at the end of this news release.

Results of operations

Atrium achieved record results in the quarter, as its assets grew to $460 million. For the three months ended March 31, 2016, mortgage interest and fees revenue aggregated $10.1 million, an increase of 6.6% from the prior year.

Net earnings for the three months ended March 31, 2016 were $6.1 million, an increase of 9.3% from the prior year. Basic and diluted earnings per common share were $0.23, for the three months ended March 31, 2016, compared with $0.23 basic and diluted per common share for the prior year.

The company had $460 million of mortgages receivable as at March 31, 2016, an increase of 2.7% from the prior quarter. During the quarter, $59.8 million of gross new mortgages were advanced, and $49.3 million of gross mortgages were repaid. Atrium’s focus continues to be on lending in the major metropolitan areas of Ontario and British Columbia. During the quarter, exposure to Alberta was reduced from 25 loans constituting 13.5% of the portfolio at December 31, 2015 to 21 loans and 12.7% of the portfolio at March 31, 2016.

The weighted average interest rate on the mortgage portfolio decreased slightly to 8.64% at March 31, 2016, compared with 8.66% at December 31, 2015 and 8.82% at March 31, 2015. The mortgage portfolio increased by 2.7% from December 31, 2015 to $464.0 million at March 31, 2016.

Interim Statements of Earnings and Comprehensive Income
(Unaudited, 000s, except per share amounts)
		Three months ended March 31
		2016			2015
Revenue	$	10,116		$	9,492
Mortgage servicing and management fees		(1,066	)		(984	)
Other expenses		(271	)		(271	)
Provision for mortgage losses		(300	)		(362	)
Income before financing costs		8,479			7,875
Financing costs		(2,357	)		(2,273	)
Earnings and total comprehensive income	$	6,122		$	5,602
Basic earnings per share	$	0.23		$	0.23
Diluted earnings per share	$	0.23		$	0.23
Dividends declared	$	5,781		$	5,138
Mortgages receivable, end of period	$	460,244		$	390,152
Total assets, end of period	$	460,349		$	390,248
Shareholder' equity, end of period	$	276,280		$	249,548

For further information on the financial results, and analysis of the company’s mortgage portfolio in addition to that set out below, please refer to Atrium’s unaudited interim financial statements and its management’s discussion and analysis for the three month period ended March 31, 2016, available on SEDAR at www.sedar.com, and on the company’s website at www.atriummic.com.

Analysis of mortgage portfolio
		March 31, 2016											December 31, 2015
					Outstanding			% of								Outstanding			% of
Mortgage category		Number			amount			Portfolio					Number			amount			Portfolio
(outstanding amounts in 000s)
Low-rise residential		22		$	105,745				22.8	%			23		$	110,034				24.3	%
House and apartment		109			92,365				19.9	%			110			84,755				18.8	%
Construction		8			39,365				8.5	%			9			44,701				9.9	%
High-rise residential		7			37,990				8.2	%			9			42,245				9.4	%
Mid-rise residential		7			16,259				3.5	%			7			14,662				3.2	%
Condominium corporation		17			3,978				0.8	%			18			4,111				0.9	%
Residential portfolio		170			295,702				63.7	%			176			300,508				66.5	%
Commercial/mixed use		34			168,302				36.3	%			31			151,083				33.5	%
Mortgage portfolio		204			464,004				100.0	%			207			451,591				100.0	%

		March 31, 2016
													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		155		$	305,000				65.7	%				63.6	%				8.50	%
Non-GTA Ontario		14			8,222				1.8	%				66.8	%				9.17	%
Saskatchewan		1			11,444				2.5	%				71.1	%				8.50	%
Alberta		21			58,822				12.7	%				59.9	%				9.04	%
British Columbia		13			80,516				17.3	%				60.4	%				8.88	%
		204		$	464,004				100.0	%				62.8	%				8.64	%

		December 31, 2015
													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		152		$	292,547				64.8	%				66.1	%				8.61	%
Non-GTA Ontario		15			11,436				2.5	%				67.3	%				8.99	%
Saskatchewan		1			10,822				2.4	%				71.1	%				8.50	%
Alberta		25			61,078				13.5	%				59.7	%				8.68	%
British Columbia		14			75,708				16.8	%				62.6	%				8.83	%
		207		$	451,591				100.0	%				64.7	%				8.66	%

Conference call

Interested parties are invited to participate in a conference call with management on Thursday, April 21, 2016 at 4:00 p.m. EDT. To participate or listen to the conference call live, please call 1 (888) 241-0551 or (647) 427-3415. For a replay of the conference call (available until May 4, 2016) please call 1 (855) 859-2056, Conference ID 95322486.

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, please refer to regulatory filings available at www.sedar.com or Atrium’s website at www.atriummic.com.

 

For additional information, please contact

Robert G. Goodall                               
President and Chief Executive Officer

Jeffrey D. Sherman
Chief Financial Officer
                
(416) 607-4200
ir@atriummic.com 
www.atriummic.com