Business
MCAN Mortgage Corporation reports first quarter earnings
Stock market symbol TSX: MKP TORONTO , May 7, 2014 /CNW/ - MCAN Mortgage Corp...
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\nStock market symbol \nTSX: MKP \n\n\nTORONTO, May 7, 2014 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the\n \"Company\" or \"we\") net income for the first quarter of 2014 was $7.4\n million, an 83% increase from $4.0 million (on a restated basis for our\n change in income tax accounting noted below) in 2013. Earnings per\n share were $0.36, a 71% increase from $0.21 (restated) in the prior\n year. Return on average shareholders' equity was 13.52% for the quarter\n compared to 8.77% (restated) in the first quarter of 2013.\n\n\nThe increase in net income was primarily due to higher mortgage interest\n income, higher income from our equity investment in MCAP Commercial LP\n (\"MCAP\"), recoveries of provisions for credit losses and the gain from\n the partial sale of our investment in MCAP.  These increases were\n partially offset by higher operating expenses, as our scale of\n operations has increased since the acquisition of Xceed Mortgage\n Corporation (\"Xceed\") in the third quarter of 2013.\n\n\nThe Board of Directors (the \"Board\") declared a second quarter regular\n dividend of $0.28 per share to be paid June 30, 2014 to shareholders of\n record as of June 16, 2014.\n\n\nCorporate assets totalled $1.0 billion as at March 31, 2014, comparable\n to the balance as at December 31, 2013.  Excluding the conversion of\n $46 million of corporate mortgages into market mortgage-backed\n securities (\"MBS\"), corporate assets increased by $31 million.\n\n\nOur primary focus this quarter was on core operations and origination\n activities.  On the construction side of the business, we have been\n managing operations at target levels in terms of both commitments and\n outstanding balances.  The spring market, with the unusually harsh\n winter of 2013/2014, has also caused an estimated delay of six weeks in\n the funding of certain construction projects.  These projects are\n anticipated to fund later into the second quarter, thereby ensuring we\n will have a solid level of fundings through 2014.\n\n\nThe single family business, which started slowly given the winter effect\n noted above, has been very active through the spring market both on the\n mortgage purchase and origination sides.  During the first quarter, we\n securitized $46 million of single family mortgages through the market\n M...