Business
MCAP Inc. reports first quarter earnings
MCAP Inc. reports first quarter earnings.
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n\n\nStock market symbol\nTSX: MKP\n\nTORONTO, May 5 /CNW/ - MCAP Inc. (\"MCAP\", the \"Company\", or \"we\")\nreported net income of $3.1 million for the first quarter of 2006, up from\n$3.0 million a year earlier. Earnings per share for the quarter were $0.25\ncompared to $0.26 last year.\n\nNet Investment Income: Net investment income in the quarter was $4.0\nmillion compared to $3.9 million in the same period of 2005.\n\nMortgage interest income was $5.4 million in the quarter compared to $4.8\nmillion last year. The increase of $659,000 over last year was a result of an\nincrease in the average mortgage yield to 6.47% in 2006 from 5.98% last year\nand a $6 million increase in the average portfolio. The increase in the\naverage mortgage yield is mostly due to an increase in the prime rate from\n4.25% in the first quarter of 2005 to 5.50% at March 31, 2006, as\napproximately 60% of our mortgages are floating rate.\nFees of $867,000 were earned in the quarter compared to $571,000 in the\nsame period last year. The increase is mostly due to higher commitment fee\nincome earned in 2006 as a result of a larger portfolio of residential\nconstruction loans.\nMarketable securities income was $406,000 in the quarter compared to $1.2\nmillion last year. Gains from sales of marketable securities were $6,000 in\nthe quarter compared to $837,000 in the same period last year. Unrealized\ngains on the portfolio at the end of March were $3.8 million compared to $2.5\nmillion at December 31, 2005.\nEquity income from our ownership interest in MCAP Commercial Limited\nPartnership (\"MCLP\") was $135,000 in the quarter compared to $118,000 last\nyear. Current quarter equity income includes a $201,000 gain on the dilution\nof our interest in MCLP. MCLP issued non-voting units to a partnership of\nsenior managers of MCLP such that our interest in MCLP was reduced from 25% to\n22.8%. The equity loss of $66,000 is due to the seasonality of MCLP's\nbusiness.\nDebenture interest and expenses were $3.0 million compared to $2.8\nmillion in 2005. The increase over last year is primarily due to an increase\nin the average debenture interest rate to 3.35% in the first quarter of 2006\nfrom 3.12% in the same period last year.\nMortgage expenses were $718,000 in the quarter compared to $610,000 in\nthe same period last year. The increase is largely du...