TORONTO, Nov. 07, 2022 (GLOBE NEWSWIRE) — Farm Capital Mortgage Investment Corporation (“The Corporation”) (TSX FC, FC.DB.F, FC.DB.G, FC.DB.H, FC.DB. I , FC.DB.J, FC.DB.K and FC.DB.L) has released financial statements for the three and nine months ended September 30, 2022.
Net income for the three months ended September 30, 2022 increased 8.1% to $8,179,541 compared to $7,565,816 reported for the same period in 2021. Net income for the nine months ended September 30, 2022 was $22,251,107 as reported for the same period in 2021. The increase is primarily a result of higher interest income due to higher average interest rates on investment portfolio sizes (an average increase of $100 million over a similar period in 2021) and higher corporate investment. Portfolio average interest rates were partially offset by higher interest expense.
earnings per share
Underlying weighted average earnings per share for the three months ended September 30, 2022 compared to $0.241 per share reported for the three months ended September 30, 2021 It was $0.237. Underlying weighted average earnings per share for the nine months ended September 30, 2022 compared to $0.716 per share reported for the nine months ended September 30, 2021 and was $0.708.
Our investment portfolio decreased $6.5 million to $636 million as of September 30, 2022, compared to $642.5 million on December 31, 2021 (both total of impairment allowances and fair value adjustments, if applicable). New investment funds of $326 million (2021 – $346 million) and repayments of $333 million (2021 – $330 million) for the nine months ended September 30, 2022 dollars) was
return on equity
The company continues to exceed its yield target of generating a return on equity in excess of the Canadian Treasury bill yield of 400 basis points average. Earnings for the quarter ended September 30, 2022 represented an annualized return on total equity of 8.20% (based on average end-of-quarter equity), representing an annualized return on total equity of 424. It beats his average annual yield of 3.96% on Canadian Treasury Bills by basis points per year.
discreet disability allowance
Management has always taken a proactive approach to our loan impairment reserves. This is a prudent approach to providing shareholders with a stable dividend in the event of future problems with any loan within our investment portfolio. Impairment reserves and fair value adjustments at September 30, 2022 were $7,360,000 (December 31, 2021, impairment reserves – $5,750,000).
Investment portfolio details
Details of our investment portfolio as of September 30, 2022 are as follows:
A total investment portfolio of $636,053,388, down 1% from $642,531,533 reported on December 31, 2021.
Traditional 1st Mortgage is the first mortgage with less than 75% loan-to-value, 75% of the total portfolio (73% as of December 2021) and traditional mortgage with less than 75% loan-to-value is the sum of 84% of the total portfolio (82% as of December 2021).
Approximately 83% of the portfolio will mature by December 31, 2023.
The portfolio’s average par interest rate is 10.36% per annum, compared to 7.91% on 31 December 2021.
Geographically, the mortgage investment portfolio is diversified as Ontario (82%), Quebec (10.4%), Western Canada (5.4%), and the United States (2.2%).
Dividend and Stock Purchase Plan
The Company has implemented a Dividend Reinvestment Plan (DRIP) and Stock Purchase Plan available to shareholders. DRIP allows participants to reinvest their monthly cash dividends into additional shares. The price paid per share is 97% of the weighted average trading price (if the stock is higher than $14.85) calculated on his 5 trading days immediately preceding each dividend date, without commission. When enrolled in the Stock Purchase Plan, participants have the right to purchase additional stock totaling no more than $12,000 per year and no less than $250 per month. Participating shareholders do not have to pay any fees.
For the three and nine months ended September 30, 2022, the Company declared dividends on its shares totaling $8,069,360 and $24,079,389, or $0.234 and $0.702 per share, respectively. Nine months ended September 30, 2021.
About the company
Where mortgage transactions take place®
The Corporation, through its mortgage banker Firm Capital Corporation, is a non-bank lender that provides residential and commercial short-term bridge and traditional real estate financing, including construction, mezzanine and equity investments. Our investment objective is to protect shareholders’ equity while providing our shareholders with a steady monthly dividend stream from our investments. The Corporation achieves its investment objectives through investments in specific niche markets that are underserved by large lending institutions. Lending activity to date continues to develop a diversified mortgage portfolio, delivering consistent returns to shareholders. A complete report of Kommuninvest’s financial results for the quarter, outlined in the unaudited interim consolidated financial statements and related management discussions and company analysis, is available on the SEDAR website www.sedar.com. Additionally, supplemental information is available on our website at www.firmcapital.com.
This news release contains forward-looking statements within the meaning of applicable securities laws. This includes, among other things, statements regarding our objectives, strategies for achieving those objectives, results of operations, investment portfolios, dividends, and management. beliefs, assumptions and intentions and similar statements regarding anticipated future events, results, circumstances, performance or expectations that are not historical facts; Forward-looking statements generally use words such as “outlook,” “objective,” “potential,” “intend,” “anticipate,” “intend,” “estimate,” “expect,” etc. can be identified using forward-looking terms in “believe,” “should,” “plan,” “continue,” or similar expressions that imply future results or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management.
These statements are not guarantees of future performance and our estimates and estimates are subject to risks and uncertainties, including those described under “Risk Factors” on our current Annual Information Form. Based on assumptions (a copy is available at www.sedar). As a result, actual results and performance may differ materially from the forward-looking statements contained in this news release.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Farm Capital Mortgage Investment Corporation
President and Chief Executive Officer
Boutique Mortgage Lenders®