Firm Capital releases results for Q2, first half of 2022

Find out how the MIC fared…

Firm Capital releases results for Q2, first half of 2022

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.