Full-year financial results for First National Financial Corporation show a 9% increase in new mortgage originations in 2018.
The lender saw originations rise to $18.5 billion from $16.9 billion in 2017. This was achieved through 10% growth in new single-family originations (to $12.2bn) and 8% growth in commercial originations (to $6.2bn).
Total mortgage renewals increased 17% to $7.4 billion from $6.3 billion reflecting: 17% growth in single-family mortgage renewals and 19% growth in commercial mortgage renewals.
Mortgages under administration increased 5% to a record $106.2 billion compared to $101.6 billion at December 31, 2017
"The single-family team responded exceptionally well to the new realities of the marketplace by winning over new customers and renewing more mortgage business than ever," said Moray Tawse, Executive Vice President. "We are particularly pleased with the contribution made by our alternative lending product, Excalibur, which allowed us to address a significant group of credit-worthy borrowers, including the self-employed, many who fall just outside traditional lending guidelines.”
Tawse said the commercial team also did an outstanding job of meeting market demands.
Overall strength
The company posted strong results overall with revenue up 10% to $1.2 billion from $1.1 billion in 2017; and net income of $166.4 million ($2.73 per share) compared to $209.7 million ($3.42 per common share) in 2017.
"First National marked its 30th consecutive year of profitable operations in 2018 with strong growth in MUA reflecting a diligent focus on service and expanded market coverage," said Stephen Smith, Chairman and Chief Executive Officer. "Despite tighter mortgage spreads and our decision to increase securitization activity, which delays the earnings process, EPS performance was solid and we were pleased to reward fellow shareholders with an increase in the common share dividend in December along with the payment of a special dividend. Since MUA is the source of most of the Company's earnings, the stage is set for continued progress."
