The firm credits performance to higher interest income due to a larger average investment portfolio size
Firm Capital Mortgage Investment Corporation’s latest earnings report saw the non-bank lender’s net income increase by 27.6% to $7,565,816 over the three months ended Sept. 30.
Firm Capital’s net income for the nine months ended Sept. 30 increased by 16.9% to $22,251,107, from $19,035,107 for the same period in 2020.
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The lender said the increase is mainly a result of “higher interest income due to a larger average investment portfolio size (on average, $58 million higher in the third quarter of 2021 relative to the third quarter of 2020), offset by a decrease in average interest rate of 0.28% per annum.”
Firm Capital also said that its investment portfolio “increased by $16 million to $575.2 million as at September 30, 2021, in comparison to $559.0 million as at December 31, 2020.”
“Conventional first mortgages, being those first mortgages with loan-to-values less than 75%, comprise 67% of the total portfolio (71% as at December 2020), and total conventional mortgages with loan-to-values less than 75%, comprise 78% of the total portfolio, same as at December 2020,” the firm said, adding that its mortgage investment portfolio is diversified per region between Ontario (85%), Western Canada (8.5%), Quebec (4.8%), and the US (1.7%).
Last week, Firm Capital closed a bought deal public offering involving 1,936,600 common shares valued at $14.85 per share, with gross proceeds totalling more than $28 million.
