Business
MCAN Mortgage Corporation Reports 96% Increase in Second Quarter Net Income and Declares Dividend
Stock market symbol TSX: MKP TORONTO , Aug. 12, 2015 /CNW/ - MCAN Mortgage C...
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\nStock market symbol TSX: MKP \n\n\n\nTORONTO, Aug. 12, 2015 /CNW/ - MCAN Mortgage Corporation (\"MCAN\", the \"Company\" or \"we\") reported second quarter 2015 earnings today.  Q2 2015 highlights are as follows:\n\n\nSecond quarter net income of $11.9 million ($0.56 per share) increased 96% from $6.1 million ($0.30 per share) in the prior year. Return on average shareholders' equity increased from 11.01% to 20.16%. Earnings per share were up $0.26 from last year, $0.35 from the prior quarter and are up $0.11 year to date. \nThe increase was due to higher equity income from MCAP Commercial LP (\"MCAP\") and securitization income from the market mortgage-backed securities (\"MBS\") program, and discount income earned from a construction loan.\nWe sold $172 million of new MBS through the market MBS program. Income from the market MBS program increased from significant growth in the portfolio.\nThe Board of Directors (the \"Board\") declared a 2015 third quarter dividend of $0.28 per share to be paid on September 30, 2015.\n\nQ2 2015 Operating Results\n\nNet income for the second quarter of 2015 was $11.9 million, up 96% from $6.1 million in 2014.  Earnings per share were $0.56, up from $0.30 in the prior year.  Return on average shareholders' equity was 20.16% for the quarter, up from 11.01% in the prior year. \n\nThe increase in net income from the second quarter of 2014 and the first quarter of 2015 was primarily due to significantly higher equity income from MCAP in the current quarter, higher securitization income from a significant increase in our participation in the market MBS program and discount income earned on the payout of a previously impaired construction loan.  Additionally, the first quarter of 2015 had a significant loss on realized and unrealized financial instruments. \n\nYear to date net income increased to $16.2 million from $13.5 million in the prior year, primarily due to increases in equity income from MCAP, corporate mortgage interest income and income from the market MBS program. These increases were partially offset by a higher realized and unrealized loss on financial instruments.  For the year to date, earnings per share totalled $0.77, up from $0.66 per share in the prior year. Return on average shareholders' equity was 13.99% for the year to date, up from 12.24% in t...