Atrium Mortgage Investment Corporation Announces First Quarter Results

Toronto, Ontario--(Newsfile Corp. - May 12, 2021) - Atrium Mortgage Investment Corporation (TSX: AI) today released its financial results for the three months ended March 31, 2021.

Highlights

• Mortgage portfolio of $765.2 million, 2.7% increase from December 31, 2020
  
  
• High quality mortgage portfolio
  
  
  • 82.7% of portfolio in first mortgages
    
    
  • 92.1% of portfolio is less than 75% loan to value
    
    
  • average loan-to-value is 60.7%
    
    
• Quarterly net income of $9.9 million, consistent with the first quarter of the prior year
  
  
• $0.23 basic and diluted earnings per share for the quarter

"Atrium had a solid start to 2021 with $0.23 earnings per share. Our mortgage portfolio grew by $20 million in Q1 with strong originations of $93.2 million. Looking forward, we are cautiously optimistic that the commercial and multi-residential real estate markets, and the economy overall, will gradually strengthen as the vaccination roll out accelerates in Canada. Accordingly, the underwriting team has been expanded by three people since the beginning of the year, giving us more depth in the Toronto and Vancouver offices. The mortgage portfolio remains conservatively positioned with an average loan to value of 60.7%. Notwithstanding this defensive orientation, we continued to increase our aggregate loan loss provision to $10.0 million, which will protect the balance sheet from the effects of pandemic, even if it lingers longer than expected," said Rob Goodall, CEO of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management Thursday, May 13, 2021 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call
1 [phone] or [phone], conference ID 5699484. For a replay of the conference call (available until May 26, 2021) please call 1 [phone], conference ID 5699484.

Results of operations

For the three months ended March 31, 2021, Atrium reported assets of $774.7 million, up from $755.3 million at the end of 2020. Revenues were $16.5 million, a decrease of 3.6% from the first quarter of the prior year. Net income for the first quarter of 2021 was $9.9 million, consistent with the first quarter of the prior year. Revenues fell slightly as a result of a lower weighted average interest rate in the first quarter of 2021 and timing differences of mortgage advances made during the comparable quarters. This was offset by lower interest expenses during the current quarter due to a lower weighted average cost of borrowing on our credit facility. Atrium's allowance for mortgage losses at March 31, 2021 totaled $10.0 million, or 1.31% of the mortgage portfolio.

Basic and diluted earnings per common share were $0.23 for the three months ended March 31, 2021, compared with $0.23 basic and diluted earnings per common share in the comparable period.

Mortgages receivable as at March 31, 2021 were $758.2 million, an increase of 2.6% from December 31, 2020. During the three months ended March 31, 2021, $93.2 million of mortgage principal was advanced and $72.2 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2021 was 8.58%, compared to 8.65% at December 31, 2020.

Atrium collected 95% of the mortgage interest due in the quarter, which is in line with historical collection rates.

Financial summary

Interim Consolidated Statements of Income and Comprehensive Income

(Unaudited, 000s, except per share amounts)

		Three months ended
		March 31
		2021			2020
Revenue	$	16,451		$	17,057
Mortgage servicing and management fees		(1,896)			(1,777)
Other expenses		(462)			(349
Provision for mortgage losses		(869)			(1,000)
Income before financing costs		13,224			13,931
Financing costs		(3,350)			(4,067)
Net income and comprehensive income	$	9,874		$	9,864
Basic earnings per share	$	0.23		$	0.23
Diluted earnings per share	$	0.23		$	0.23
Dividends declared	$	9,550		$	9,504
Mortgages receivable, end of period	$	758,221		$	743,070
Total assets, end of period	$	774,657		$	759,494
Shareholders' equity, end of period	$	464,147		$	462,249

Analysis of mortgage portfolio

		March 31, 2021										December 31, 2020
						Outstanding			% of						Outstanding			% of
Property Type		Number				amount			Portfolio			Number			amount			Portfolio
(outstanding amounts in 000s)
Mid-rise residential		24			$	197,825			25.9%			25		$	199,525			26.8%
Low-rise residential		21				186,292			24.3%			21			174,362			23.4%
High-rise residential		14				173,122			22.6%			16			170,074			22.8%
House and apartment		72				51,035			6.7%			63			45,522			6.1%
Condominium corporation		13				2,064			0.3%			13			2,165			0.3%
Residential portfolio		144				610,338			79.8%			138			591,648			79.4%
Commercial		20				154,888			20.2%			20			153,666			20.6%
Mortgage portfolio		164			$	765,226			100.0%			158		$	745,314			100.0%

		March 31, 2021
												Weighted			Weighted
		Number of				Outstanding			Percentage			average			average
Location of underlying property		mortgages				amount			outstanding			loan to value			interest rate
Greater Toronto Area		117			$	550,018			71.9%			62.8%			8.63%
Non-GTA Ontario		28				26,095			3.4%			65.3%			8.10%
British Columbia		17				182,342			23.8%			52.6%			8.51%
Alberta		2				6,771			0.9%			94.1%			8.89%
		164			$	765,226			100.0%			60.7%			8.58%

		December 31, 2020
												Weighted			Weighted
		Number of				Outstanding			Percentage			average			average
Location of underlying property		mortgages				amount			outstanding			loan to value			interest rate
Greater Toronto Area		119			$	548,447			73.6%			63.2%			8.68%
Non-GTA Ontario		21				21,706			2.9%			64.7%			8.32%
British Columbia		16				163,685			22.0%			51.0%			8.57%
Alberta		2				11,476			1.5%			96.5%			8.94%
		158			$	745,314			100.0%			61.0%			8.65%

For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's interim consolidated financial statements and its management's discussion and analysis for the quarter ended March 31, 2021, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.

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

Jennifer Scoffield
Chief Financial Officer

[phone]
[e-mail]
www.atriummic.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/83843