Firm Capital Mortgage Investment Corporation Announces Year Ended and Q4/2023 Results, as well as the Declaration of April, May, and June Monthly Cash Dividends

TORONTO, March 20, 2024 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX FC, FC.DB,H, FC.DB.I, FC.DB.J ,FC.DB. K and FC.DB.L) released its financial statements for the three and twelve months ended December 31, 2023.

NET INCOME
For the three months ended December 31, 2023, net income increased by 4.8% to $8,335,525 as compared to $7,955,086 for the same period in 2022. For the year ended December 31, 2023, net income increased by 6.0% to $34,164,416 as compared to $32,234,067 for the year ended December 31, 2022.

The increase is primarily a result of higher interest income due to a higher weighted average interest rate (2023 weighted average interest rate – 11.15% vs 2022 weighted average interest rate – 9.28%) offset by a reduction in overall portfolio size.

EARNINGS PER SHARE
Basic weighted average profit per share for the three months ended December 31, 2023, was $0.242, as compared to the $0.231 per share reported for the three months ended December 31, 2022. Basic weighted average profit per share for the year ended December 31, 2023, was $0.991, compared to the $0.939 per share reported for the year ended December 31, 2022.

PORTFOLIO
The Corporation’s Investment Portfolio decreased by $63 million to $598.1 as at December 31, 2023, in comparison to $661.0 million as at December 31, 2022 (in each case, gross of impairment allowance, fair value adjustment, and unamortized fees). During 2023, new investment funding was $249.5 million (2022 – $461.8 million), and repayments were $312.3 million (2022 – $443.0 million). On December 31, 2023, the Investment Portfolio comprised of 243 investments (2022 – 252). The average gross investment size was approximately $2.4 million, with 14 investments exceeding $7.5 million.

PRUDENT IMPAIRMENT ALLOWANCE

The allowance for impairment and fair value adjustment as of December 31, 2023 was $22.7 million (2022 – $10.16 million), comprising (i) $10.65 million (2022 – $3.70 million) representing the total amount of management’s estimate of the shortfall between the investment balances and the estimated recoverable amount from the security under the specific loans, (ii) $10.38 million (2022 – $4.70) representing the total amount of management’s estimate of fair value adjustment on an investment stated at fair value through profit or loss; and (iii) a collective allowance balance of $1.7 million (2022 – $1.76 million).