Atrium Mortgage Investment Corporation Announces Strong Second Quarter Results with Record Mortgage Portfolio Balance

About this update from Atrium Mortgage Investment Corp.

Toronto, Ontario--(Newsfile Corp. - August 8, 2024) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three and six months period ended June 30, 2024. Highlights Quarterly basic and diluted earnings per share of $0.26 Quarterly net income of $11.5 million Record mortgage portfolio of $907.8 million Amended the credit facility to increase the maximum available amount to $340 million High quality mortgage portfolio 96.8% of portfolio in first mortgages 89.5% of portfolio is less than 75% loan to value average loan-to-value is 64.4% "Atrium continued to deliver strong returns for shareholders by posting earnings per share of $0.26 for the second quarter and $0.53 year to date. These results are comfortably above our regular divided rates of $0.225 for the quarter and $0.45 year to date. Our focus remains on navigating through challenging real estate market conditions and the portfolio composition now has 96.8% of the portfolio in first mortgages and 89.5% with a loan to value less than 75%. Despite slower market activity, we managed to source high quality opportunities that increased the mortgage portfolio to a record $908 million at quarter end. We also solidified our funding sources during the quarter by adding Royal Bank to our lending syndicate which is a testament to our strong financial performance and portfolio quality. We continue to believe that credit risk remains elevated across the industry and have prudently increased our provisions accordingly. While we remain hopeful that lower inflation and interest rates will help improve market conditions over the coming quarters, we continue to lend defensively in our preferred sectors," said Rob Goodall, CEO of Atrium. Conference call Interested parties are invited to participate in a conference call with management on Friday, August 9, 2024 at 9:00 a.m. ET to discuss the results. To participate or listen to the conference call live, please call 1-833-491-0507 (call topic: Second quarter results). For a replay of the conference call (available until August 22, 2024) please call 1-833-607-0619, password 5756717#. Results of operations For the three months ended June 30, 2024, Atrium reported assets of $885.6 million, up from $877.9 million at the end of 2023. Revenues were $24.9 million, an increase of 5.9% from the second quarter of the prior year. Net income for the second quarter of 2024 was $11.5 million, a decrease of 20.1% from the comparative period. Atrium's allowance for mortgage losses at June 30, 2024 totaled $29.3 million, or 3.23% of the gross mortgage portfolio, which is up from $22.6 million or 2.53% of the mortgage portfolio at December 31, 2023. For the six months ended June 30, 2024, revenues were $50.1 million, an increase of 6.1% from the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 was $23.6 million, a decrease of 17.7% from the prior year period. Basic and diluted earnings per common share were $0.26 for the three months ended June 30, 2024, compared with $0.33 and $0.32 basic and diluted earnings per common share respectively in the comparable period. Basic and diluted earnings per common share were $0.53 for the six months ended June 30, 2024, compared with $0.66 and $0.63 basic and diluted earnings per common share respectively for the six months ended June 30, 2023. Mortgages receivable as at June 30, 2024 was $884.4 million, up from $876.7 million as at December 31, 2023. During the six months ended June 30, 2024, $174.4 million of mortgage principal was advanced and $159.8 million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2024 was 10.93%, compared to 11.42% at December 31, 2023. Financial summary Interim Consolidated Statements of Income and Comprehensive Income (Unaudited, 000s, except per share amounts) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Revenue $ 24,930 $ 23,548 $ 50,123 $ 47,255 Mortgage servicing and management fees (2,170 ) (2,052 ) (4,246 ) (4,106 ) Other expenses (244 ) (332 ) (650 ) (776 ) Recovery of prior mortgage loss 183 − 183 157 Provision for mortgage losses (4,365 ) (690 ) (8,219 ) (1,642 ) Income before financing costs 18,334 20,474 37,191 40,888 Financing costs (6,805 ) (6,045 ) (13,621 ) (12,247 ) Net income and comprehensive income $ 11,529 $ 14,429 $ 23,570 $ 28,641         Basic earnings per share $ 0.26 $ 0.33 $ 0.53 $ 0.66 Diluted earnings per share $ 0.26 $ 0.32 $ 0.53 $ 0.63         Dividends declared $ 9,971 $ 9,822 $ 19,902 $ 19,607         Mortgages receivable, end of period $ 884,401 $ 817,421 $ 884,401 $ 817,421 Total assets, end of period $ 885,569 $ 831,917 $ 885,569 $ 831,917 Shareholders' equity, end of period $ 490,455 $ 489,010 $ 490,455 $ 489,010 Book value per share, end of period $ 11.06 $ 11.19 $ 11.06 $ 11.19   Analysis of mortgage portfolio As at June 30, 2024 As at December 31, 2023 Outstanding % of Outstanding % of Property Type Number amount Portfolio Number amount Portfolio (outstanding amounts in 000s) High-rise residential 21   $ 313,174 34.5% 22 $ 323,340 36.2% Mid-rise residential 21 165,852 18.3% 25 208,289 23.3% Low-rise residential 15 163,292 18.0% 14 153,561 17.2% House and apartment 177 132,000 14.5% 153 117,943 13.2% Condominium corporation 8 1,612 0.2% 10 1,786 0.2% Residential portfolio 242 775,930 85.5% 224 804,919 90.1% Commercial 19 131,882 14.5% 19 88,640 9.9% Mortgage portfolio 261 $ 907,812 100.0% 243 $ 893,559 100.0%   As at June 30, 2024 Weighted Weighted Number of Outstanding Percentage average average Location of underlying property mortgages   amount outstanding loan to value interest rate (outstanding amounts in 000s) Greater Toronto Area 186 $ 711,657 78.4% 60.9% 11.05% Non-GTA Ontario 55 39,033 4.3% 65.5% 9.71% British Columbia 20 157,122 17.3% 80.0% 10.71% 261 $ 907,812 100.0% 64.4% 10.93%   As at December 31, 2023 Weighted Weighted Number of Outstanding Percentage average average Location of underlying property mortgages amount outstanding loan to value interest rate (outstanding amounts in 000s) Greater Toronto Area 166 $ 653,401 73.1% 61.4% 11.63% Non-GTA Ontario 52   40,753 4.6% 64.6% 9.81% British Columbia 24 191,955 21.5% 60.6% 10.95% Alberta 1 7,450 0.8% 71.0% 14.00% 243 $ 893,559 100.0% 61.4% 11.42%   For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's interim consolidated financial statements and its management's discussion and analysis for the three and six month period ended June 30, 2024, available on SEDAR+ at www.sedarplus.ca , and on the company's website at www.atriummic.com . About Atrium Canada's Premier Non-Bank Lender™ Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders' equity by lending within conservative risk parameters. Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act , so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information about Atrium, please refer to regulatory filings available at www.sedarplus.ca or investor information on Atrium's website at www.atriummic.com . For additional information, please contact Robert G. Goodall Chief Executive Officer John Ahmad Chief Financial Officer (416) 867-1053 [email protected] www.atriummic.com To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219303

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