First National profit rises 28 per cent

The Canadian Press

July 30, 2008 at 10:53 AM EDT

TORONTO — First National Financial Income Fund reported “record profitability” in the second quarter, with revenue rising 23 per cent to $76.9-million from a year earlier and net income up 28 per cent at $30.1 million.

Canada’s largest non-bank originator and underwriter of mortgages raised its monthly distribution to 11.25 cents per unit, or $1.35 annualized, up eight per cent from $1.25.

First National Financial said Wednesday its mortgages under administration increased 28 per cent year-over-year to $36.6-billion at June 30, as originations grew 14 per cent to $3.2-billion.

This growth was attributed to a rising market share in the single-family residential mortgage broker channel and a strengthened position in commercial mortgages.

“First National reached new heights of profitability in the second quarter of 2008, driven by strong volume growth in mortgages under administration and originations, the revitalization of our NHA-MBS program and higher margins on our core mortgage solutions,” stated chairman and president Stephen Smith.

“Although credit markets continued to show volatility, First National’s performance has continued to thrive because of our diversity in funding and revenue sources.”

April-June distributable cash was calculated at $5.3-million or 43 cents per unit. Net income compared with $23.5-million a year earlier, when revenue was $62.6-million.

First National also said it is suspending its distribution reinvestment program. The program raised capital of $10.5-million during the second quarter. “However, it became clear as the quarter progressed that additional capital was not required,” the company said.

Why is this important to you? First National is an “A” lender and has the best support and service in the industry. They get all my “A” business because of this. All their underwriting is done on their fantastic Merlin system, which means if you have a question it is answered quickly. After your mortgage closes you are given access to the system to keep tabs on your mortgage, so you can make extra payments if needed, change payment dates, go from a variable to a fixed or change the account it is coming out of all at a touch of a button. These are just some of the reason why they are my choice for my clients mortgage. To sum it up they just make it easy to do business with them.

Cheers,

Pat