Business
MCAP Inc. reports fourth quarter earnings
MCAP Inc. reports fourth quarter earnings.
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n\n\nStock market symbol \nTSX: MKP \n\nTORONTO, Feb. 17 /CNW/ - MCAP Inc. (\"MCAP\" or the \"Company\") reported net\nincome of $5.0 million for the fourth quarter of 2005, up from $2.7 million a\nyear earlier. Earnings per share for the quarter were $0.41 compared to $0.23\nlast year. For the year ended December 31, 2005, net income was $14.1 million,\nup from $11.6 million in the prior year, and earnings per share were $1.18\ncompared to $1.12 in the prior year.\nIn April 2004, MCAP reorganized its involvement in the mortgage\norigination and servicing business (the \"Business Reorganization\"). The\ntransactions comprising the Business Reorganization included the sale of MCAP\nFinancial Corporation (\"MFC\") to MCAP Commercial Limited Partnership (\"MCLP\")\nand the acquisition of a 25% limited partnership interest in MCLP. Prior to\nthe Business Reorganization, the Company consolidated MFC. The Company now\nequity accounts for the income from the mortgage origination and servicing\nbusiness based on its 25% minority interest in MCLP.\n\nNet Investment Income: Net investment income in the quarter was \n$6.2 million compared to $3.5 million in 2004. The majority of the increase\nover the prior year relates to gains from sales of marketable securities.\nMortgage interest income was $5.5 million compared to $4.9 million last\nyear, an increase of $572,000. Approximately 60% of MCAP's mortgages are\nfloating rate, and increases in the bank prime rate gave rise to a 0.46%\nincrease in the yield on the portfolio.\nFee income was $928,000 compared to $755,000 last year. MCAP has\nincreased its portfolio of residential construction loans and the fees are\nlargely attributable to these mortgages.\nMarketable securities income was $1.8 million compared to $68,000 last\nyear. Gains from sales of marketable securities were $1.4 million in the\nquarter including the reversal of prior write-downs of $468,000 as MCAP sold\ndown its portfolio in the face of market uncertainty regarding the taxation of\nincome trusts. This compared to losses of $227,000 in the fourth quarter last\nyear, including a write-down of $224,000 taken on two securities in the\nportfolio. Unrealized gains on the portfolio at the end of December were \n$2.5 million compared to $5.3 million at September 30, 2005.\nEquity income from the Company's 25% ownership in ...