MCAN Mortgage Corporation reports third quarter earnings

About this update from Mcan Mortgage Corporation

[{"type":"text","content":"\n\n\n\nStock market symbol TSX: MKP \n\n\n\n\n\nTORONTO, Nov. 6, 2014 /CNW/ - MCAN Mortgage Corporation's (\"MCAN\", the \"Company\" or \"we\") net income for the third quarter of 2014 was $4.9 million, down from $9.3 million (on a restated basis for our change in income tax accounting noted below) in 2013.  Earnings per share were $0.23, down from $0.46 (restated) in the prior year.  Return on average shareholders' equity was 8.74% for the quarter, down from 18.40% (restated) in the third quarter of 2013. \n\nNet income in the third quarter of 2013 was significantly higher than the current year due to the non-recurring benefits from our acquisition of Xceed Mortgage Corporation (\"Xceed\") completed on July 4, 2013.  These non-recurring items included the bargain purchase gain, partially offset by transaction related expenses, and income from a higher-yielding mortgage portfolio purchased at a discount to its net book value, which was realized primarily during fiscal 2013.  In terms of recurring items, equity income from MCAP Commercial LP (\"MCAP\") decreased significantly from the prior year, however securitization income increased as a result of growth in the market mortgage-backed securities (\"MBS\") program.\n\nQuarterly net income decreased by $1.2 million from the prior quarter ended June 30, 2014.  The decrease is primarily due to a $650,000 decrease in equity income from MCAP and a $676,000 non-recurring income distribution from a commercial real estate investment received in the second quarter.  In addition, operating expenses increased in the third quarter as a result of certain non-recurring expenses.\n\nYear to date net income increased to $18.3 million from $17.8 million in the prior year, primarily due to increases in mortgage interest income, income from the market MBS program and whole loan gains on sale.  These increases were primarily offset by lower equity income from MCAP, higher operating expenses and the non-recurring items noted above.  For the year to date, earnings per share totalled $0.89, down from $0.92 per share in the prior year.  Return on average shareholders' equity was 11.10% for the year to date, down from 12.56% in the prior year.\n\nThe Board of Directors (the \"Board\") declared a fourth quarter regular dividend of $0.28 per share to be paid J...

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