Business
MCAP Inc. reports second quarter earnings
MCAP Inc. reports second quarter earnings.
About this update from Mcan Mortgage Corporation
[{"type":"text","content":"\n\n\n\n\nStock market symbol\nTSX: MKP\n\nTORONTO, Aug. 4 /CNW/ - MCAP Inc. (\"MCAP\", the \"Company\" or \"we\")\nreported net income of $3.5 million for the second quarter of 2006, up from\n$2.9 million a year earlier. Earnings per share for the quarter were $0.28\ncompared to $0.25 last year. Net income for the six months ended June 30, 2006\nwas $6.5 million, up from $6.0 million a year earlier, while earnings per\nshare in the same period were $0.53 compared to $0.51 in 2005.\n\nNet Investment Income: Net investment income for the quarter was $4.4\nmillion compared to $3.7 million in 2005.\nMortgage interest income was $6.0 million in the quarter versus\n$5.0 million last year. The increase of $1.0 million over last year was\nprimarily due to an increase in the average mortgage yield to 7.01% in 2006\nfrom 5.94% last year. The increase in the average mortgage yield is mostly due\nto an increase in the prime rate from 4.25% in the second quarter of 2005 to\n6% at June 30, 2006, as approximately 55% of our mortgages at June 30, 2006\nare floating rate.\nFees of $666,000 were earned in the quarter compared to $891,000 in the\nsame period of last year. The decrease is mostly due to a high volume of\nconstruction loan repayments in the second quarter of 2005 versus the current\nyear.\nMarketable securities income was $607,000 in the quarter compared to\n$323,000 last year due to a larger average portfolio and higher gains from\nsales. Unrealized gains on the portfolio at the end of June were $2.8 million\ncompared to $3.8 million at March 31, 2006.\nThe equity loss from our ownership interest in MCAP Commercial Limited\nPartnership (\"MCLP\") was $169,000 in the quarter compared to equity income of\n$374,000 last year as a result of lower production on commercial term loans\nand lower commitment fees recognized in the quarter.\nOther income, consisting of interest on loans and other investments, was\n$991,000 in the quarter compared to $693,000 in 2005. The increase is due to a\nlarger average portfolio and an increase in prime over last year, as over half\nof the portfolio is prime-based.\nDebenture interest and expenses were $3.3 million in the quarter compared\nto $2.8 million in 2005. The increase over last year is a result of an\nincrease in the average debenture interest rate to 3.65% in 2006 from 3.13%\nlast year and an ...