Atrium Mortgage Investment Corporation Announces Strong Third Quarter Earnings per Share and an Increase in Monthly Dividend

Core Insights - Atrium Mortgage Investment Corporation reported strong third-quarter earnings, with basic and diluted earnings per share of $0.26, an increase from $0.25 in the prior year [3][7] - The company announced a 3.3% increase in the annual dividend rate from $0.90 to $0.93 per common share, effective December 2024 [3] - Atrium's mortgage portfolio reached a record $926.3 million, with 97.3% in first mortgages and an average loan-to-value ratio of 64.1% [3][8] Financial Performance - For Q3 2024, Atrium reported net income of $11.6 million, up from $11.0 million in the prior year, while revenues decreased by 3.5% to $24.5 million [5][6] - Year-to-date earnings per share were $0.79, representing a decline from $0.91 in the same period last year [7] - The allowance for mortgage losses increased to $29.9 million, or 3.23% of the gross mortgage portfolio, compared to $22.6 million or 2.53% at the end of 2023 [5] Mortgage Portfolio Analysis - The mortgage portfolio consists of 287 mortgages, with 83.9% in residential properties and 16.1% in commercial properties [11] - The Greater Toronto Area accounts for 79.2% of the outstanding mortgage amount, with a weighted average interest rate of 10.62% [12] - The company has maintained a conservative approach, with 90.3% of the portfolio having a loan-to-value ratio of less than 75% [3][10] Future Outlook - Atrium expects a significant reduction in Stage 2 and 3 loans as a percentage of the total portfolio by year-end, based on recent repayments and market stabilization [3] - The company completed a common share offering that raised $28.8 million to support growth and liquidity, indicating strong investor demand [3]