First National Financial Corporation Reports Third Quarter 2024 Results, Increases Common Share Dividend and Announces Special Dividend
TORONTO, Oct. 29, 2024 /CNW/ - First National Financial Corporation (TSX:FN) (TSX:FN) (TSX:FN) (the "Company" or "FNFC") today announced its financial results for the three and nine months ended September 30, 2024. The Company derives virtually all of its earnings from its wholly owned subsidiary, First National Financial LP ("FNFLP" or "First National"), one of Canada's largest non-bank mortgage originators and underwriters.
Third Quarter Summary
Mortgages Under Administration ("MUA") increased 6% to a record $150.6 billion from $141.9 billion at September 30, 2023
Revenue decreased 1% to $560.4 from $562.9 million a year ago
Pre-FMV Income(1) decreased 21% to $75.3 million from $95.5 million a year ago
Net income was $36.4 million ($0.59 cents per share) compared to $83.6 million ($1.38 per share) a year ago
1
This non-IFRS measure adjusts income before income taxes by eliminating the impact of changes in fair value by adding back losses on the valuation of financial instruments (except those on mortgage investments) and deducting gains on the valuation of financial instruments (except those on mortgage investments). See Non-GAAP measures.
Increase in Common Share Dividend
The Board of Directors today announced an increase in the Company's regular monthly dividend to an annualized rate of $2.50 per common share from $2.45 per share annualized, effective with the payment on December 13, 2024, for shareholders of record November 29, 2024.
Special Dividend
The Board of Directors also announced a special dividend of $0.50 per common share to be paid on December 13, 2024 to shareholders of record on November 29, 2024. This payment reflects the Board's determination that First National has generated excess capital in the past year and that the capital needed for near-term growth can be generated from current operations.
Management Commentary
"The third quarter unfolded as we expected with First National's diverse revenue sources helping to offset the effects of a challenging marketplace on mortgage origination activity," said Jason Ellis, President and CEO. "With recent action by the Bank of Canada to reduce interest rates, we are now seeing a marked increase in residential mortgage commitments which should translate well in coming quarters. The strength of our business model and confidence in the future are reflected in the Board's decision to increase the common share dividend, for the 18th time in the 18 years since FN listed on the S&P/TSX. Going forward, our focus remains squarely on delivering good service for our customers and partners, which is our foundation for value creation."
Third Quarter Review
Quarter ended
Nine months ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
For the Period
($000s)
Revenue
560,386
562,861
1,616,881
1,520,844
Income before income taxes
49,689
113,830
191,071
284,012
Pre-FMV Income (1)
75,254
95,456
215,497
245,058
At Period End
Total assets
50,460,286
45,176,543
50,460,286
45,176,543
Mortgages Under Administration
150,568,194
141,915,465
150,568,194
