Atrium Mortgage Investment Corporation Announces Strong Second Quarter Earnings per Share
Rhea-AI Summary
Atrium Mortgage Investment Corporation (TSX: AI) reported strong financial results for Q2 2025, with net income reaching $13.1 million, a 13.7% increase year-over-year. The company achieved quarterly basic and diluted earnings per share of $0.28 and $0.27 respectively, up from $0.26 in the previous year.
The company maintains a high-quality mortgage portfolio valued at $921.2 million, with 96.8% in first mortgages and 94.8% of the portfolio below 75% loan-to-value. The weighted average interest rate on the portfolio stands at 9.30%, down from 9.98% at the end of 2024. The portfolio demonstrates strong risk management with an average loan-to-value of 61.3%.
Notable metrics include total assets of $899.0 million, up from $864.3 million at 2024 year-end, and an allowance for mortgage losses of $28.9 million, representing 3.14% of the mortgage portfolio.
Positive
- Net income increased by 13.7% year-over-year to $13.1 million in Q2 2025
- Basic EPS grew 7.7% to $0.28 in Q2 2025
- Strong portfolio quality with 96.8% in first mortgages and conservative 61.3% average loan-to-value
- Mortgage portfolio expanded to $921.2 million with $223.5 million in new advances
- Credit facility extended to May 15, 2027, improving financial flexibility
Negative
- Weighted average interest rate decreased to 9.30% from 9.98% at year-end 2024
- Management expects reduced new business volume in second half of 2025
- Book value per share slightly decreased to $11.02 from $11.06 year-over-year
News Market Reaction
On the day this news was published, AMIVF gained 0.73%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - August 7, 2025) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.D) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three and six months periods ended June 30, 2025.
Highlights
Quarterly basic and diluted earnings per share of
$0.28 and$0.27 , respectively, compared with$0.26 and$0.26 in the previous yearQuarterly net income of
$13.1 million , an increase of13.7% from the previous yearMortgage portfolio of
$921.2 million Extended the credit facility to May 15, 2027
High quality mortgage portfolio
96.8% of portfolio in first mortgages94.8% of portfolio is less than75% loan-to-valueaverage loan-to-value is
61.3%
"I am pleased with our results for Q2 and for the first six months of 2025. We continue to generate earnings per share well above our dividend. Our underwriting teams had another strong quarter of loan origination, although we expect the volume of new business to taper off somewhat in the second half of 2025 due to a reduced level of market activity. We are focused on preserving a low risk profile for the overall portfolio by maintaining a conservative portfolio loan to value ratio and a very high percentage of conventional mortgages (loans no greater than
Conference call
Interested parties are invited to participate in a conference call with management on Friday, August 8, 2025, at 9:00 a.m. ET to discuss the results. To participate or listen to the conference call live, please call 1-833-491-0507 (call topic: Second quarter results). For a replay of the conference call (available until August 22, 2025) please call 1-833-607-0619, passcode 7529494#.
Results of operations
For the three months ended June 30, 2025, Atrium reported assets of
Basic and diluted earnings per common share were
Mortgages receivable as at June 30, 2025 were
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| Three months ended | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenue | $ | 21,185 | $ | 24,930 | $ | 43,148 | $ | 50,123 | ||||
| Mortgage servicing and management fees | (2,190 | ) | (2,170 | ) | (4,366 | ) | (4,246 | ) | ||||
| Other expenses | (794 | ) | (244 | ) | (1,145 | ) | (650 | ) | ||||
| Recovery of prior mortgage loss | 95 | 183 | 138 | 183 | ||||||||
| Provision for mortgage losses | (89 | ) | (4,365 | ) | (2,293 | ) | (8,219 | ) | ||||
| Income before financing costs | 18,207 | 18,334 | 35,482 | 37,191 | ||||||||
| Financing costs | (5,094 | ) | (6,805 | ) | (10,468 | ) | (13,621 | ) | ||||
| Net income and comprehensive income | $ | 13,113 | $ | 11,529 | $ | 25,014 | $ | 23,570 | ||||
| Basic earnings per share | $ | 0.28 | $ | 0.26 | $ | 0.53 | $ | 0.53 | ||||
| Diluted earnings per share | $ | 0.27 | $ | 0.26 | $ | 0.52 | $ | 0.53 | ||||
| Dividends declared | $ | 11,048 | $ | 9,971 | $ | 22,043 | $ | 19,902 | ||||
| Mortgages receivable, end of period | $ | 897,767 | $ | 884,401 | $ | 897,767 | $ | 884,401 | ||||
| Total assets, end of period | $ | 898,961 | $ | 885,569 | $ | 898,961 | $ | 885,569 | ||||
| Shareholders' equity, end of period | $ | 524,306 | $ | 490,455 | $ | 524,306 | $ | 490,455 | ||||
| Book value per share, end of period | $ | 11.02 | $ | 11.06 | $ | 11.02 | $ | 11.06 | ||||
Analysis of mortgage portfolio
| As at June 30, 2025 | As at December 31, 2024 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| High-rise residential | 19 | $ | 272,532 | 17 | $ | 247,202 | ||||||||||||
| Mid-rise residential | 16 | 113,610 | 20 | 139,738 | ||||||||||||||
| Low-rise residential | 11 | 118,017 | 12 | 152,827 | ||||||||||||||
| House and apartment | 249 | 169,167 | 219 | 154,713 | ||||||||||||||
| Condominium corporation | 6 | 1,163 | 6 | 1,279 | ||||||||||||||
| Residential portfolio | 301 | 674,489 | 274 | 695,759 | ||||||||||||||
| Commercial | 25 | 246,706 | 24 | 190,939 | ||||||||||||||
| Mortgage portfolio | 326 | $ | 921,195 | 298 | $ | 886,698 | ||||||||||||
| As at June 30, 2025 | |||||||||||||||
| 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 | 245 | $ | 815,260 | ||||||||||||
| Non-GTA Ontario | 67 | 53,004 | |||||||||||||
| British Columbia | 14 | 52,931 | |||||||||||||
| 326 | $ | 921,195 | |||||||||||||
| As at December 31, 2024 | |||||||||||||||
| 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 | 211 | $ | 791,809 | ||||||||||||
| Non-GTA Ontario | 73 | 40,816 | |||||||||||||
| British Columbia | 14 | 54,073 | |||||||||||||
| 298 | $ | 886,698 | |||||||||||||
Loan-to-value is calculated as a weighted average of the mortgage commitment, including loans outstanding, divided by the value of the underlying asset. Book value per share is calculated as shareholders' equity divided by the number of shares outstanding at the reporting date.
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 three- and six-month periods ended June 30, 2025, available on SEDAR+ at www.sedarplus.ca, 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.sedarplus.ca or investor information on Atrium's website at www.atriummic.com.
For additional information, please contact
Robert G. Goodall
Chief Executive Officer
Jeffrey D. Sherman
Interim 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/261731
FAQ
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