Highlights 2016

Net_Income_2016

Net Income

  • We earned record net income of $40.2 million in 2016, an increase of $7.3 million (22%) from $32.9 million in 2015.
  • Earnings per share increased by $0.24 (16%) to $1.75 in 2016 from $1.51 in 2015.
  • Return on average shareholders’ equity* increased to 14.74% in 2016 from 13.45% in 2015.
  • Our equity investment in MCAP Commercial LP (“MCAP”) continued to provide strong equity income of $13.5 million in 2016, an increase of 34% from $10.1 million in 2015.
  • Increase of 29% in securitization income from our continued participation in the market MBS program and re-entry into the CMB program in 2016.


Corporate Activity

  • Corporate assets, which totalled $1.19 billion at December 31, 2016, increased by $33 million from December 31, 2015.
  • The corporate mortgage portfolio decreased by $40 million during 2016 to $904 million from $944 million, which included increases of $32 million in construction, $28 million in commercial and $25 million in insured single family, and decreases of $111 million in uninsured single family and $13 million in completed inventory loans.
  • Increase of $36 million during 2016 in our higher-yielding corporate non-mortgage investments, consisting of marketable securities, our equity investment in MCAP and financial investments. Increases in the fair value of marketable securities and financial investments led to a $5.8 million increase in accumulated other comprehensive income during 2016, up from a $2.9 million increase in 2015.
  • Consistent with the prior quarter dividend increase, the Board of Directors (the “Board”) declared a 2017 first quarter dividend of $0.30 per share to be paid on March 30, 2017 to shareholders of record as of March 15, 2017.


Securitization Activity

  • We recommenced our participation in the CMB program in 2016 by securitizing $100 million of insured single family mortgages and $86 million of insured multi family loans. We recognized upfront gains of $394,000 on securitization of the multi family loans, while the single family mortgages remained on our balance sheet after securitization.
  • We securitized $42 million of new MBS to third parties through the market MBS program.


Credit Quality

  • The impaired total mortgage ratio* increased to 0.14% at December 31, 2016 from 0.11% at December 31, 2015.
  • The impaired corporate mortgage ratio* increased to 0.31% at December 31, 2016 from 0.23% at December 31, 2015.
  • Total mortgage arrears* were $27 million at December 31, 2016, down $7 million (22%) from $34 million at December 31, 2015.
  • Net write-offs were 2.4 basis points of the average corporate portfolio in 2016, improved from 4.2 basis points in 2015.
  • The average loan to value ratio (“LTV”) of our uninsured single family portfolio was 56.5% at December 31, 2016, improved from 63.4% at December 31, 2015.


Capital

  • Our Common Equity Tier 1, Tier 1 and Total Capital to risk-weighted assets ratios* were 22.98% on the transitional basis and 22.55% on the “all-in” basis at December 31, 2016 compared to 23.58% and 23.02%, respectively, at December 31, 2015.
  • Our leverage ratio* was 10.46% at December 31, 2016 compared to 9.96% at December 31, 2015.
  • Income tax asset capacity* was $209 million at December 31, 2016 compared to $141 million at December 31, 2015.


* Considered to be a “Non-IFRS Measure”. For further details, refer to the “Non-IFRS Measures” section of our 2016 Annual MD&A.

 

Corporate_Mortgage_Portfolio_2016

Annual_Dividends_Paid_2016