Lender saw strong Q4 mortgage growth, increased revenue, and record-high mortgage servicing volumes
First National Financial Corporation, one of Canada’s largest non-bank mortgage lenders, posted strong financial results for 2024, highlighting its ability to adapt to shifting market conditions.
Despite a volatile rate environment, the company grew its mortgage portfolio, increased revenue, and maintained solid profitability.
The lender ended the year with $153.7 billion in mortgages under administration (MUA), a 7% increase from $143.5 billion in 2023. Fourth-quarter originations, including renewals, surged 27% year over year, offsetting weaker activity earlier in the year.
First National's single-family mortgage originations, including renewals, totalled $6.3 billion in Q4, a 43% jump from $4.4 billion in the same period in 2023. The growth was driven by increased borrower activity as competition in the mortgage broker channel normalized and interest rates eased.
On the commercial lending side, First National originated $4.1 billion in Q4, an 8% increase from $3.8 billion the previous year, reflecting strong demand for insured multi-unit property mortgages. By year-end, commercial mortgages under administration had grown 18% to $57.9 billion from $49.0 billion in 2023.
Across all segments, total mortgage originations (including renewals) remained flat at $37.5 billion in 2024, as fourth-quarter strength helped compensate for earlier softness in the market.
Revenue for Q4 jumped 19% to $600.1 million, up from $503.4 million in Q4 2023. The full-year revenue came in at $2.2 billion, a 10% increase from 2023, driven largely by the company’s strategy of securitizing more of its mortgage originations.
Despite the revenue gains, Pre-FMV Income declined 3% in Q4 to $74.8 million from $77.1 million the previous year. For the full year, Pre-FMV Income fell 10% to $290.3 million, reflecting tighter spreads on mortgage placements and a shift toward commercial securitization, which delays revenue recognition.
Net income for Q4 came in at $63.0 million ($1.04 per share), a significant jump from $44.2 million ($0.72 per share) a year ago. However, full-year net income declined to $203.4 million ($3.33 per share) from $252.8 million ($4.15 per share) in 2023.
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President and CEO Jason Ellis credited the company’s business model and strong partnerships for its ability to navigate the year’s challenges.
“First National’s 2024 performance reflected the resilient nature of our business in the context of changing market and competitive conditions,” Ellis said in a press release. “This was particularly evident in the fourth quarter. With the support of our partners and hard work by our team, we responded well to a surge in available opportunities to grow total fourth-quarter originations, including renewals, 27% year over year.”
Trump weighs in on Canadian banking space
Meanwhile, US president Donald Trump made another unexpected foray into commenting on the Canadian banking scene this week when he falsely claimed US banks are not allowed to operate in Canada.
"Canada doesn’t allow American banks to do business in Canada, but their banks flood the American market. Oh, that seems fair to me, doesn’t it?" Trump wrote in a post on Truth Social.
Trump had previously made similar remarks, refuted in February by the Canadian Banking Association (CBA) which noted that 16 US banks currently operate in Canada.
"These banks specialize in a range of financial services, including corporate and commercial lending, treasury services, credit card products, investment banking, and mortgage financing," the CBA said. "They serve not only customers with cross-border business activities but also Canada’s domestic retail market. US banks now make up half of all foreign bank assets in Canada."
The claim comes at a time of heightened US-Canada trade tensions, with Trump’s proposed economic policies potentially impacting cross-border financial relationships.
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