FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION ANNOUNCES YEAR ENDED AND Q4/2019 RESULTS - Seite 2

On May 15, 2019, the Corporation completed a non-brokered private placement of 209,630 common shares at a price of $13.20 per share for gross proceeds of $2,767,116.

PRUDENT IMPAIRMENT ALLOWANCE
Management has always taken a proactive approach to loan impairment allowance. This is a prudent approach to protecting the stability of dividends to shareholders in the event there are any future issues with any of the investments within the Corporation’s investment portfolio. The impairment allowance as at December 31, 2019 stood at $5,480,000 and represents approximately 1% of the Corporation’s investment portfolio.

INVESTMENT PORTFOLIO DETAILS
Details on the Corporation’s investment portfolio as at December 31, 2019 are as follows:

• Total gross investment portfolio of $480,925,143, which is lower than the $520,944,509 reported at December 31, 2018.
• Conventional first mortgages, being those first mortgages with loan-to-values less than 75%, comprise 70.0% of the total portfolio, and total conventional mortgages with loan-to-values less than 75%, comprise 79.0 of the total portfolio.
• Approximately 76.0% of the portfolio matures by December 31, 2020.
• The average face interest rate on the portfolio, as at December 31, 2019, is 8.49%.
• Regionally, the mortgage investment portfolio is diversified approximately as follows: Ontario (93.0%), Quebec (2.7%), Western Canada (3.7%), and Other (0.6%).

DIVIDEND AND SHARE PURCHASE PLAN
The Corporation has in place a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan that is available to its Shareholders. The DRIP allows participants to have their monthly cash dividends reinvested in additional shares. The Price paid per share is 97% (if the share price is higher than $14.10) of the weighted average trading price calculated five trading days immediately preceding each dividend date with no commission cost. Once registered with the Share Purchase Plan, participants have the right to purchase additional shares, totaling no greater than $12,000 per year and no less than $250 per month. Shareholders participating pay no commission.

SUBSEQUENT EVENT
Subsequent to year end, the COVID-19 pandemic is causing significant financial market and social dislocation. The situation is dynamic with various cities and countries around the world responding in different ways to address the outbreak. The Corporation continues to monitor the investment portfolio and assess the impact COVID-19 will have on its business activities. The extent of the effect of the COVID-19 pandemic on the Corporation is uncertain.