Mcan Mortgage Corporation · TSX:MKP
Mcan Mortgage — Shareholder Meeting (May 2020)
44 slides from Mcan Mortgage's shareholder meeting presentation, May 12, 2020
Slide 1: MCAN Mortgage Corporation Annual General Meeting – May 12, 2020
MCAN MORTGAGE CORPORATION ANNUAL GENERAL MEETING – May 12, 2020
Slide 2: Derek Sutherland, Chair of the Board
Mean... MCAN Mortgage Corporation DEREK SUTHERLAND CHAIR OF THE BOARD
Slide 3: Thank You to Our Retiring Directors
THANK YOU TO OUR RETIRING DIRECTORS Susan Doré Verna Cuthbert Director since Director since May 2010 September 2013 MCAN Mortgage Corporation 3
Slide 4: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation may contain forward-looking statements for the purposes of applicable securities laws, including statements regarding the business and anticipated financial performance of MCAN Mortgage Corporation and its subsidiaries. These statements are based on curr
Slide 5: Notice of Meeting and Establishment of Quorum
. Mcan Notice OF MEETING AND ESTABLISHMENT OF QUORUM
Slide 6: 2019 Financial Statements
~ iMcan 2019 FINANCIAL STATEMENTS
Slide 7: Election of Directors
5 iM can ELECTION OF DIRECTORS
Slide 8: Appointment of Auditors
4 iMcan APPOINTMENT OF AUDITORS
Slide 9: Scrutineer's Preliminary Report
5 Mcan SCRUTINEER’S PRELIMINARY REPORT
Slide 10: MCAN Mortgage Corporation
10 MCAN Mortgage Corporation
Slide 11: MCAN Mortgage Corporation
11 MCAN Mortgage Corporation
Slide 12: MCAN Mortgage Corporation
MCAN Mortgage Corporation 12
Slide 13: Introduction of Elected Directors
INTRODUCTION OF ELECTED DIRECTORS Glenn Doré Philip Gillin Gordon Herridge Loraine McIntosh Director elect Director elect Director since Director since May 2020 May 2020 May 2018 May 2017 Gaelen Morphet Derek Sutherland Ian Sutherland Karen Weaver Director since Director since Director since Directo
Slide 14: MCAN Mortgage Corporation
14 MCAN Mortgage Corporation
Slide 15: MCAN Mortgage Corporation
MCAN Mortgage Corporation 15
Slide 16: May 12, 2020
May 12, 2020 16 MCAN Mortgage Corporation
Slide 17: Welcome
WELCOME Investors Depositors Borrowers MCAN Regulatory Team Bodies Members Valued Business Partners 17 MCAN Mortgage Corporation
Slide 18: Today
TODAY 1. COVID-19 and Business Impact 2. 2019 Year in Review 3. First Quarter 2020 Highlights 4. Strategy and Outlook 18 MCAN Mortgage Corporation
Slide 19: COVID-19 and Business Impact
COVID-19 AND BUSINESS IMPACT • Strong momentum and growth in our operations • Board and management team experience • Well capitalized and solid liquidity • Focus on residential lending - Single Family, Construction and Commercial • Rigorous and conservative polices and practices • Well positioned ot
Slide 20: MCAN Business
MCAN BUSINESS Our focus since founding in 1991 20 MCAN Mortgage Corporation
Slide 21: Diversified Quality Real Estate Investments
DIVERSIFIED QUALITY REAL ESTATE INVESTMENTS MCAN'S Real Estate Investments $1.36 Billion Total Corporate Assets $2.18 Billion Total Assets • 10.7 months average term to maturity of the corporate mortgage portfolio • Data presented as at December 31, 2019 21 MCAN Mortgage Corporation
Slide 22: Deposit Funding
DEPOSIT FUNDING MCAN's Term Deposits: • Since 1993 • Non-redeemable prior to maturity • Eligible for CDIC insurance coverage • $1,034 million at December 31, 2019 • 18.4 months average term to maturity 22 MCAN Mortgage Corporation
Slide 23: 10 Year History of Net Income and Earnings per Share
10 YEAR HISTORY OF NET INCOME AND EARNINGS PER SHARE $2.01 EPS 23 MCAN Mortgage Corporation
Slide 24: Investments and Capital Recycling
INVESTMENTS AND CAPITAL RECYCLING • Disposition of REITs in the portfolio • Disposition of investment in Crown Core Fund • New investment in Securitization notes • Increased participation in KingSett • Focused on opportunistic investments 24 MCAN Mortgage Corporation
Slide 25: MCAN's Capital History
MCAN’S CAPITAL HISTORY Q4 2019 book value $13.64 10 Year History - Capital Growth and Book Value per Share per share 25 MCAN Mortgage Corporation
Slide 26: 10 Year History Dividend Growth & Yield
10 YEAR HISTORY DIVIDEND GROWTH & YIELD Avg yield 8.33% 10yr ** MKP CN Equity - Dividend Indicated Yield – Gross; monthly data 2010 to 2019 26 MCAN Mortgage Corporation
Slide 27: 2019 Year in Review
2019 YEAR IN REVIEW 27 MCAN Mortgage Corporation
Slide 28: 2019 Performance
2019 PERFORMANCE 2019 2018 Mortgage Interest - Corporate Assets $56.4 million $51.6 million Net Investment Income - Corporate $64.9 million $50.1 million Net Investment Income - Securitization $4.0 million $5.0 million Net Gain (Loss) on Securities $14.0 million $(0.5) million Provision for (Recover
Slide 29: Corporate Mortgage Portfolio
CORPORATE MORTGAGE PORTFOLIO Total Corporate Mortgages - Single Family and Construction & Commercial ($ millions) YoY Growth 18% 29 MCAN Mortgage Corporation
Slide 30: Impaired Mortgages as a % of Total Corporate Mortgages
IMPAIRED MORTGAGES AS A % OF TOTAL CORPORATE MORTGAGES 0.94% 0.03% Avg. 5yr loan losses 0.53% 0.34% 0.32% 0.29% Dec Dec Dec Dec Dec 2015 2016 2017 2018 2019 30 MCAN Mortgage Corporation
Slide 31: 2019 Performance Overall
2019 PERFORMANCE OVERALL • Growing balance sheet • Asset mix and risk profile • Successful marketing and sales • Timely capital recycling and new investments • Focused improvements on infrastructure • Focused management team 31 MCAN Mortgage Corporation
Slide 32: First Quarter 2020 Highlights
FIRST QUARTER 2020 HIGHLIGHTS 32 MCAN Mortgage Corporation
Slide 33: Q1 2020 Performance
Q1 2020 PERFORMANCE Q1 2020 Q1 2019 Mortgage Interest - Corporate Assets $15.4 million $13.2 million Net Investment Income (Loss) - Corporate $(5.0) million $18.8 million Net Investment Income - Securitization $0.8 million $1.1 million Net Gain (Loss) on Securities $(15.7) million $8.0 million Provi
Slide 34: Q1 2020 Performance: Highlights
Q1 2020 PERFORMANCE: HIGHLIGHTS Q1 2020 Q4 2019 USF Balance $437 million $428 million USF Originations $71 million $58 million ISF Originations $100 million $60 million Corporate Assets $1.43 billion $1.36 billion Book Value per Common Share $12.90 $13.64 34 MCAN Mortgage Corporation
Slide 35: Q1 2020 Performance: Capital, Leverage & Dividends
Q1 2020 PERFORMANCE: CAPITAL, LEVERAGE & DIVIDENDS Q1 2020 Q4 2019 CET 1 Ratio 21.80% 22.52% Total Capital Ratio 22.17% 22.52% Leverage ratio 11.70% 12.58% Income tax assets to 5.03x 4.93x capital Dividends per share $0.34 $0.32 35 MCAN Mortgage Corporation
Slide 36: MCAN 5 Year Total Return vs. Index
MCAN 5 YEAR TOTAL RETURN VS. INDEX 5 year 14.4% CAGR 1 year 38.8% Total Return 36 MCAN Mortgage Corporation
Slide 37: Strategy and Outlook
STRATEGY AND OUTLOOK 37 MCAN Mortgage Corporation
Slide 38: 2020 Business Focus: Single Family
2020 BUSINESS FOCUS Single Family: • Uninsured single family • Insured single family and securitization • Sales and marketing • Underwriting platform 38 MCAN Mortgage Corporation
Slide 39: 2020 Business Focus: Construction & Commercial
2020 BUSINESS FOCUS Construction & Commercial: • Construction mortgage portfolio • Commercial mortgages • Underwriting and asset management platform 39 MCAN Mortgage Corporation
Slide 40: 2020 Business Focus: Other
2020 BUSINESS FOCUS Other: • Marketable securities • Non-marketable securities • Liquidity and balance sheet management • Proactive COVID-19 response 40 MCAN Mortgage Corporation
Slide 41: MCAN's Mission
MCAN’S MISSION • Provide sustainable growth and returns for our shareholders: ◦ through relationship-driven mortgage lending and investing ◦ anchored by quality work delivered by an expert, engaged and committed team ◦ focused on our customers (internal and external) and partners 41 MCAN Mortgage Co
Slide 42: Thank You Retiring Directors
THANK YOU RETIRING DIRECTORS Susan Dore and Verna Cuthbert Thank you Susan Doré and Verna Cuthbert 42 MCAN Mortgage Corporation
Slide 43: MCAN Mortgage Corporation
43 MCAN Mortgage Corporation
Slide 44: MCAN Mortgage Corporation
44 MCAN Mortgage Corporation