Business
Builders Capital Mortgage Corp. Reports Third Quarter Results
Advancing Strength of Mortgage Portfolio Continues to Drive Income Growth Calgary, Alberta--(...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Third Quarter ResultsAdvancing Strength of Mortgage Portfolio Continues to Drive Income GrowthCalgary, Alberta--(Newsfile Corp. - November 29, 2021) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announces that it has released its third quarter financial results for the period ending September 30, 2021.Highlights include:Increase of earnings per share to $0.20 in the third quarter of 2021, up 18% over Q3 2020. Q3 total comprehensive income of $1.7 million and earnings per share of $0.58 or an increase of 5% from $1.6 million and $0.55, respectively, over the comparable period of 2020.Consistent with targeted distribution program, quarterly dividends paid to Class A shareholders were $0.2016 per share, representing an 8% annual return on the original $10.00 issue price for the 31st consecutive quarter since inception.Mortgage assets have increased by 56% from their low point in April 2021.Current mortgage portfolio has achieved a weighted average loan-to-value ratio of 72%, a full three percentage points below our 75% target level.Portfolio has strengthened such that the provision required for loan losses was the lowest it has been for any nine-month period since inception in 2013. In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"During the first 9 months of 2021, Builders Capital has been able to substantially strengthen our mortgage portfolio on a number of fronts. We have redeployed unproductive assets into new loans, growing the portfolio, reduced the weighted average loan-to-value ratio of the portfolio, and successfully resolved issues with a couple of older, problem loans. The upshot of these efforts is that interest and lender fee revenues are growing, and the required provision for mortgage losses for the nine-month period has dropped to the lowest it's been in any nine-month period since the formation of the Company.\"Real estate markets and housing starts remain strong in the markets that we serve, resulting in continuing strong demand for our construction finance product. As well, we are continuing to pursue additional geographic diversity where we predict demand for our service will be strong. Our business model and our management team were successful in navigating recent difficulties and now, with i...