The purchase of Street Capital by TSX-listed Counsel Corp is affording brokers a better glimpse of the lender’s book, which grew by more than $1 billion in the third quarter, according to financials released Monday.
“The 2011 third quarter results include the first full quarter for Counsel's subsidiary Street Capital Financial Corporation,” says Counsel in its Q3 report. “Mortgage originations for the quarter exceeded $1 billion and Street Capital now has over $7 billion of mortgages under administration.”
For Counsel, that translated into a shot in the arm for its balance sheet. Specifically, Street Capital contributed $19.9 million to its new parent company’s Q3 2011 revenues and $3.5 million to its income from continuing operations.
The positive results come despite a slowing real estate market that has zapped some of the momentum of broker channel players, also squeezed this year by interest rate spreads that have only now started to widen.
“The acquisition of Street Capital has provided a major boost to our top and bottom line," said Allan Silber, Chairman and CEO of Counsel.
In May, he announced that public equity investor’s $33 million acquisition of Street was a done deal.
The completed transaction hasn’t alter the relationship brokers have with the mono-line, although Counsel fleshed out Street’s coffers by an additional $7.6 million, specifically directed at working capital.