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Firm Capital Mortgage Investment Corporation has announced its financial results for the three and six months ending June 30.
The company’s net income increased by 11.6% to nearly $8.238 million in Q2 2022, versus the $7.378 million seen during the same period last year. Net income for the first half of the year increased by 9.6% annually, from $14.685 million to $16.099 million.
The half-year gains were driven by higher interest income due to a larger average investment portfolio, which was on average $104 million higher over a similar period in 2021, Firm Capital said.
Firm Capital’s investment portfolio increased by $38.9 million to reach $681.4 million as of June 30, versus the $642.5 million level as at December 31, 2021. During the first half of 2022, new investment funding stood at $274 million (2021: $203.3 million), and repayments were at $235.1 million (2021: $232.5 million).
Read more: Firm Capital expands lending presence in Western Canada
Total gross investment portfolio as of June 30 was at roughly $681.398 million, approximately 6% higher than the $642.531 million at the end of 2021. Conventional first mortgages (LTV less than 75%) amounted to 78% of the total portfolio.
Income for Q2 represented a return on total shareholders’ equity (based on the average of the month end shareholders’ equity in the year) of 8.09%, amounting to a return on total shareholders’ equity of 479 basis points per annum.
“The corporation continues to exceed its yield objective of producing a return on shareholders’ equity in excess of 400 basis points over the average one-year government of Canada treasury bill yield,” Firm Capital said.