Business
MCAN Mortgage Corporation Reports Second Quarter Earnings
Stock market symbol TSX: MKP TORONTO , Aug. 13, 2014 /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. 13, 2014 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the \"Company\" or \"we\") net income for the second quarter of 2014 was $6.1 million, a 36% increase from $4.5 million (on a restated basis for our change in income tax accounting noted below) in 2013.  Earnings per share were $0.30, a 20% increase from $0.25 (restated) in the prior year.  Return on average shareholders' equity was 11.01% for the quarter, up from 9.91% (restated) in the second quarter of 2013. \n\nThe increase in net income was primarily due to higher mortgage interest income and interest on financial investments and other loans, a smaller loss on securitization assets and whole loan gains on sale earned in the current year.  These increases were partially offset by higher term deposit interest and expenses and lower income from our equity investment in MCAP Commercial LP (\"MCAP\") in the current year, in addition to higher operating expenses as our scale of operations has increased since the acquisition of Xceed Mortgage Corporation (\"Xceed\") in the third quarter of 2013.\n\nYear to date net income increased to $13.5 million from $8.6 million in the prior year, primarily due to the same reasons noted above for the increase in quarterly income.  For the year to date, earnings per share were $0.66, up from $0.46 in the prior year.  Return on average shareholders' equity was 12.24% for the year to date, up from 9.34% in the prior year.\n\nThe Board of Directors (the \"Board\") declared a third quarter regular dividend of $0.28 per share to be paid September 30, 2014 to shareholders of record as of September 16, 2014. \n\nCorporate assets totalled $1.07 billion as at June 30, 2014, an increase of $63 million from March 31, 2014.  The increase consisted of a $44 million increase in mortgages (primarily due to the acquisition of $41 million of mortgages for securitization through the market mortgage-backed securities (\"MBS\") program) and a $19 million increase in cash and cash equivalents. \n\nDuring the quarter, we executed a reorganization through a transfer of our equity investment in MCAP to a wholly-owned subsidiary.   We estimate that this reorganization will create $112 million of additional MIC asset capacity and will generate a $23.6 million gain on...