The company’s performance continues to reflect the effectiveness of its business model, executives say
In its latest report, First National Financial announced that the second quarter represented its 60th consecutive quarter of growth since it went public in 2006.
Mortgages under administration saw a 6% annual increase to $121.5 billion, representing the latest in a 15-year streak of robust performance that “reflects the effectiveness of our business model,” said Stephen Smith, CEO of First National.
Single-family originations set a new quarterly record with a 71% increase to $7.6 billion, surpassing the previous record by more than $1.5 billion.
“We continue to benefit from a strong share of the mortgage broker distribution channel, which is our exclusive source for single-family production,” Smith said. “Technology-enabled service through Nolan continues to be a differentiator. Not only is Nolan a long-time driver of our brokerage partnerships, it has been the foundation of our strong results during the pandemic.”
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First National pointed to the increase in interest from securitized mortgages as the major driver of revenue growth. Net interest of this mortgage type grew by 82% year over year, amounting to an increase of $17.3 million.
“As a result of the substantial amount of liquidity in the financial system, there continues to be strong mortgage demand from institutional investors,” said Jason Ellis, president and COO of First National. “And as you saw from Q2 results, securitization markets are robust and continue to provide consistent and reliable funding for First National.”
The company said that it also continues to diversify its offerings to ensure long-term stability.
“While prime mortgages are our core offering in single-family, we continue to build our all-day presence with the originations for our Excalibur program,” Smith said. “Growth in the BC market now complements our activities in Ontario, where the majority of production takes place.”
