The company says it continues to respond to the shifting, pandemic-driven dynamics in the Canadian mortgage market
MCAN Mortgage Corporation reported strong net income for Q1 2021, impelled by an increase in fair value gains on its marketable securities, increased equity income, and growth in its core business.
The company saw net income of $15.9 million ($0.64 earnings per share) in the quarter ending March 31, versus a net loss of $9.7 million ($0.40 loss per share) during the same period last year.
“We continue to grow our mortgage portfolio through the pandemic in response to the housing and mortgage market dynamics which were fuelled by reduced interest rates and remote working,” said Karen Weaver, president and chief executive officer of MCAN.
MCAN’s income benefited from exceptional strength in the firm’s single family monthly mortgage originations, which reached their highest Q1 reading in the company’s history.
Uninsured single family originations amounted to $105 million, growing by 101% ($53 million) annually. During the same time frame, insured single family originations totalled $210 million, an increase of 111% ($110 million) from Q1 2020.
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Insured single family securitizations amounted to $228 million (up by 184% year over year), while securitized mortgages totalled $1.33 billion (up by 17%).
Construction and commercial originations amounted to $121 million in Q1, an increase of 34% ($31 million) annually.
MCAN’s assets totalled $1.61 billion during the quarter, an increase of $53 million (3%) from the quarter ending December 31, 2020.
The company also reported that its provisions for credit losses on its mortgage portfolio fell by $1.5 million annually “due to refinements in model parameters to reflect our policies and business practices in our commercial and construction portfolio and improved economic forecasts, partially offset by growth in the corporate mortgage portfolio balance compared to Q1 2020.”
“Compared to Q4 2020, our provision for credit losses on our corporate mortgage portfolio increased by $0.3 million mainly due to a higher corporate mortgage portfolio balance,” MCAN said.
