CWB Optimum Mortgage has reported a 12% year-over-year rise in total loans in the third quarter of 2018.
Financial results reported by parent CWB Financial show that the $2.982 billion total is a 3% gain from the second quarter.
Alternative mortgage originations were down 7% in dollar terms from a year earlier while renewals increased from 70% in Q3, 2017 to 78% in Q3, 2018. However, this was expected.
Growth for the quarter was driven almost exclusively by alternative mortgages secured via first mortgages carrying a weighted average loan-to-value at initiation of approximately 69%.
The book value of alternative mortgages represented 94% of CWB Optimum’s total portfolio which is consistent with the prior quarter and last year.
The bulk of the firm’s portfolio is in Ontario (56%) followed by BC (18%) and Alberta (17%).
The average size of CWB Optimum mortgages originated in the third quarter was approximately $353,000, and the average size of mortgages outstanding at July 31, 2018 was $295,000.
Overall, CWB Financial Group announced strong third quarter financial performance with record common shareholders’ net income of $62 million and pre-tax, pre-provision income of $111 million, up 11% and 10%, respectively, from the third quarter last year.