The firm’s financial position continues to be robust
MCAN Mortgage Corporation has announced a substantial boost to its financial position during the second quarter.
The company reported net income of $19.4 million ($0.73 earnings per share) in Q2, versus the $7.8 million ($0.32 earnings per share) seen during the same time last year.
Over the first half of 2021, MCAN’s net income was at $35.3 million ($1.38 earnings per share), a stark contrast to the net loss of $1.9 million ($0.08 loss per share) in Q2 2020.
The substantial annual increases of 149% for the quarter and 1,925% year to date were spurred by growth in corporate and securitization assets, MCAN said. Other major factors in this surge were the increase in the market value of MCAN’s REIT portfolio this year (versus the market value losses in 2020), and lower credit loss provisions stemming from better economic prospects.
“We also realized higher net corporate and securitized mortgage spread income and higher equity income from MCAP compared to the same periods in 2020,” MCAN said.
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During the second quarter, MCAN raised $20.4 million in capital stemming from its growth and boosted support from its shareholders.
Corporate assets grew by 17% from the end of 2020 to reach $1.82 billion as of June 30, while securitized mortgages had a 26% increase during the same period to reach $1.43 billion, “primarily due to an increase in originations and securitizations.”
“Our mortgage portfolio continues to grow in response to a buoyant housing market propelled by very low interest rates. We have been enhancing our sales and marketing capabilities, services to our mortgage brokers, and our underwriting efficiency,” said Karen Weaver, president and chief executive officer MCAN Mortgage Corporation. “We continue to focus on sustainable growth, reliable dividends and increasing return on equity for our shareholders.”
