Leading non-bank lender Atrium Mortgage Investment Corporation has offered assurances that it’s more than ready to continue operating despite the COVID-19 pandemic, in the wake of robust first-quarter performance.
“The operating results for Q1 were relatively strong, and even after taking a provision for mortgage losses of $1 million this quarter, our earnings exceeded our quarterly dividend,” Atrium CEO Rob Goodall said. “Our increased provision for mortgage losses is consistent with the some of the largest banks in the world, and reflects the common belief that the financial impact of COVID-19 will increase in future quarters.”
The company’s mortgage portfolio as of the end of the first quarter stood at $746.5 million, which was 2.3% higher annually. The first quarter also saw Atrium’s revenues hit $17.1 million (up 8% year-over-year), along with a net income of $9.9 million (up 6.8% during the same period).
Overall, these numbers have placed Atrium on sufficiently solid footing to navigate through the worst economic effects of the coronavirus.
“We feel that Atrium is well positioned to endure the downturn. as we have very little exposure to the hardest hit sectors – retail, hospitality and long-term care/retirement homes,” Goodall told Yahoo! Finance. “Our strategy in Q2 is to scale back lending in the short term in order to be in a position to lend actively when the real estate market emerges from the downturn.”