Home Capital Reports fourth quarter and full year 2017 Results English
Feb 14, 2018, 19:49 ET
TORONTO, Feb. 14, 2018 /CNW/ - Home Capital Group ("Home Capital" or "the Company") (TSX: HCG) today reported financial results for the three and twelve months ended December 31, 2017. This press release should be read in conjunction with the Company's 2017 Annual and Fourth Quarter Consolidated Financial Report including Financial Statements and Management's Discussion and Analysis (MD&A), which are available on Home Capital's website at www.homecapital.com and on SEDAR at www.sedar.com.
"Our improved fourth quarter performance capped an important year for Home Capital employees, customers, brokers and shareholders," said Yousry Bissada, President and Chief Executive Officer, Home Capital Group. "We have demonstrated progress towards growing our residential and commercial business lines to more normal and sustainable levels and our employees delivered improved service. The steps we have taken to ensure we provide efficient and effective service to brokers and customers will help us to drive profitable growth going forward."
"We are entering 2018 with positive momentum in our business. We have turned the corner and expect to grow from here, responsibly, with sustainable risk management practices embedded in our culture," Mr. Bissada continued. "We have a strong capital position and balance sheet. We will use our position of strength to seize opportunities to invest in, and grow, our business to create value."
Fourth Quarter 2017, compared with the Third Quarter 2017:
- Net income of $30.6 million, an increase of 2.1% or $0.6 million from $30.0 million.
- Diluted earnings per share of $0.38, an increase of 2.7% from $0.37.
- Non-interest expense of $65.5 million, an increase of 9.3% or $5.6 million from $59.9 million.
- Non-securitized single-family residential mortgages of $10.04 billion, a decrease of 3.5% or $0.36 billion from $10.40 billion.
- Total mortgage originations of $872.1 million, an increase of 126% or $487.0 million from $385.1 million.
- Provision for credit losses as a percentage of gross uninsured loans of 0.12%, compared to (0.14)% where Q3 2017 included a reduction of $6.5 million in the collective allowance (0.07% in the absence of this reduction).
Fourth Quarter 2017, compared with the Fourth Quarter 2016:
- Net income of $30.6 million, a decrease of 39.6% or $20.1 million from $50.7 million.
- Net income in Q4 2017 includes the impact of reduced loan balances and lower securitization income, partially offset by lower non-interest expenses.
- Diluted earnings per share of $0.38, a decrease of 51.9% from $0.79.
- Non-interest expenses were $65.5 million, a $5.5 million decline and 7.8% improvement from $71.0 million.
- Total mortgage originations of $872.1 million, a decrease of 64.1% or $1.56 billion from $2.43 billion.
- Provision for credit losses as a percentage of gross uninsured loans was 0.12% compared to 0.07%.
Year Ended December 31, 2017, compared with the Year Ended December 31, 2016:
- Net income of $7.5 million, compared with $247.4 million.
- Net income includes $223.6 million of expenses directly associated with the Q2 2017 liquidity event.
- Diluted earnings per share of $0.10 compared to diluted earnings per share of $3.71.
- Total loans under administration of $22.51 billion, a decrease of 14.8% or $3.91 billion from $26.42 billion.
- Provision for credit losses as a percentage of gross uninsured loans was 0.07%, compared to 0.05%.
Corporate Update
Home Capital ended 2017 with a strong capital position, poised for sustainable growth and with a clear goal of regaining its leading market share position in Canada's Alt-A mortgage market.
Management and the Board of Directors are focused on completing a strategy that will take advantage of the Company's capital position and balance sheet to invest in the business, drive profitable growth and create long-term shareholder value.
In the near term, management's key areas of focus are:
| 1. |
Profitably growing residential and commercial business lines to more sustainable levels and increasing market share. |
| 2. |
Improving service levels through training initiatives that will empower employees to deliver best-in-class service. |
| 3. |
Increasing renewal and retention rates. |
| 4. |
Increasing broker outreach to advance higher-quality applications. |
| 5. |
Maintaining competitive product offerings. |
| 6. |
Innovating and applying technology in the mortgage business to enhance customer and broker experiences. |
In addition, the Company is operating in the context of an evolving regulatory landscape that will affect its primary residential mortgage market, although the extent of any impact is not yet clear. Management and the Board of Directors will continue to assess opportunities for the business as it relates to the current environment during the first and second quarters of 2018.
Fourth Quarter 2017 Financial Position
- Total loans under administration of $22.51 billion, which includes securitized mortgages that qualify for off-balance sheet accounting, decreased by 14.8% or $3.91 billion from $26.42 billion at the end of 2016, and 3.1% or $719.2 million from $23.23 billion at the end of Q3 2017.
- Total loans of $15.06 billion declined 16.5% from $18.04 billion at the end of 2016, and 2.4% from $15.43 billion at the end of Q3 2017.
- Total mortgages originated of $872.1 million, compared to $2.43 billion in Q4 2016 and $385.1 million in Q3 2017.
- Single-family residential mortgage originations of $566.0 million in Q4 2017, compared with $1.78 billion in Q4 2016 and $224.0 million in Q3 2017.
- Multi-unit residential mortgage originations of $194.8 million, compared to $371.5 million in Q4 2016 and $99.1 million in Q3 2017. Multi-unit residential mortgage originations are mostly insured and subsequently securitized through programs that qualify for off-balance sheet accounting.
- Non-residential commercial mortgage originations, which include store and apartment mortgages, of $111.2 million, compared to $277.3 million in Q4 2016 and $62.0 million in Q3 2017.
- Liquid assets were $1.65 billion, compared to $2.07 billion at the end of 2016 and $2.66 billion at September 30, 2017. The Company maintains a prudent level of liquidity, given the current level of operations, loan balances and the Company's obligations.
- Total deposits were $12.17 billion, compared to $15.89 billion at the end of 2016 and $13.36 billion at the end of Q3 2017.
- The decrease in deposits from the end of last year reflects the elevated level of redemptions of the Company's High-Interest Savings Accounts during the Q2 2017 liquidity event and lower funding requirements due to lower loan balances.
- The decrease in deposits from the end of last quarter reflects the Company's intentional actions to slow the inflow of deposits to match expected mortgage originations. During the third quarter, the Company decided to offer premium rates on deposits to increase inflows following the Q2 2017 liquidity event. The growth of deposits outpaced loan growth and created a drag on earnings. Consequently, by the end of the third quarter, the Company reduced interest rates on new deposits to intentionally lower deposits until mortgage balances began to grow.
- The Company created net deposits inflows mid-way through the fourth quarter by increasing interest rates paid on new and renewed deposits to meet expected mortgage funding requirements. It is expected that the Company may be required to offer higher interest rates on new deposits in future periods. It is assumed that any such increases could be offset by increased interest rates charged on mortgages originated or renewed in future periods. Any inability to pass on any increased funding costs would negatively impact net interest margins.
Credit Quality
The loan portfolio remained strong with the level of credit losses and non-performing loans remaining low. Provision for credit losses (PCL) for the quarter was $3.4 million, compared to $2.4 million in Q4 2016 and a $4.3 million release in Q3 2017.
- The annualized credit provision as a percentage of gross uninsured loans was 0.12%, compared to 0.07% in Q4 2016 and (0.14)% in Q3 2017.
- The increase in the PCL ratio over last year resulted from a specific provision of $2.2 million against one non-residential commercial mortgage. The negative PCL ratio in the third quarter resulted from the reduction of $6.5 million in the collective allowance for the non-residential commercial portfolio related to asset sales (see Note 5(H) of the consolidated financial statements for more information). In the absence of this reduction, the PCL ratio in Q3 2017 would have been 0.07%.
- Net non-performing loans as a percentage of gross loans ended 2017 at 0.30%, compared to 0.28% at the end of Q3 2017 and unchanged from the end of 2016.
- Although the percentage of net non-performing loans over gross loans was consistent year over year and sequentially, there was a significant change in the mix of net non-performing residential and commercial mortgages.
- The net amount of non-performing non-residential commercial mortgages increased to $13.7 million at Q4 2017 from $4.5 million at Q4 2016 and $6.2 million at Q3 2017, and the net amount of non-performing single-family residential mortgages decreased to $30.1 million from $47.9 million at Q4 2016 and $36.1 million at Q3 2017.
- Total net non-performing loan balances decreased to $45.4 million at Q4 2017 from $53.7 million at Q4 2016 and increased from $43.6 million at Q3 2017.
- The Company adopted IFRS 9 beginning January 1, 2018. The impact of the adoption of IFRS 9 is not expected to be significant. Additional information on the impacts of IFRS 9 will be made available in the Company's Report to Shareholders for the first quarter of 2018.
Capital Position
The Company maintained strong capital ratios well above Company targets and regulatory minimums at the end of 2017. Management continues to review opportunities to deploy capital in the most efficient manner to maximize shareholder value.
- Home Trust's Common Equity Tier 1 and Total capital ratios remained very strong at 23.17% and 23.68%, respectively, at December 31, 2017. The comparative balances were 16.55% and 16.97%, respectively, at December 31, 2016.
- Home Trust's Leverage ratio was 8.70% at December 31, 2017 and 7.20% at December 31, 2016.
Looking Forward
Looking to 2018, the Company's strong capital position and balance sheet, stable deposit funding base and ample liquidity provide a solid foundation for future investment in the business and to be competitive in the Canadian market.
Management is confident it is well-positioned to deliver sustainable loan growth as well as improved execution and service levels to increase market share. As the business grows, management and the Board are committed to the ongoing enhancement of risk management and corporate governance practices to grow the business responsibly. Creating long-term shareholder value and resuming Home Capital's nearly 30-year track record of profitable growth are priorities for the Company.
| (signed) |
(signed) |
| YOUSRY BISSADA |
BRENDA EPRILE |
| President & Chief Executive Officer |
Chair of the Board |
| February 14, 2018 |
The Company's 2017 Annual and Fourth Quarter Consolidated Financial Report, including Management's Discussion and Analysis, for the three and twelve months ended December 31, 2017 is available at www.homecapital.com and on the Canadian Securities Administrators' website at www.sedar.com.
Fourth Quarter and Year-End 2017 Results Conference Call and Webcast
The conference call will take place on Thursday, February 15, 2018, at 8:00 a.m. ET. Participants are asked to call approximately 10 minutes in advance at 647-427-7450 in Toronto or toll-free 1-888-231-8191 throughout North America. A webcast slide presentation will also be accessible in listen-only mode on Home Capital's website at www.homecapital.com in the Investor Relations section of the website.
Conference Call Archive
A telephone replay of the call will be available between 11:00 a.m. ET Thursday, February 15, 2018 and 12:00 a.m. ET Thursday, February 22, 2018 by calling 416-849-0833 or 1-855-859-2056 (enter passcode 8574149). The archived audio webcast will be available for 90 days on CNW Group's website at www.newswire.ca and Home Capital's website at www.homecapital.com.
| Financial Highlights
|
||||||||||
| For the three months ended |
For the year ended |
|||||||||
| (000s, except Percentage and Per Share Amounts) |
December 31 |
September 30 |
December 31 |
December 31 |
December 31 |
|||||
| 2017 |
2017 |
2016 |
2017 |
2016 |
||||||
| OPERATING RESULTS |
||||||||||
| Net Income |
$ |
30,619 |
$ |
29,983 |
$ |
50,706 |
$ |
7,527 |
$ |
247,396 |
| Net Interest Income |
91,718 |
88,762 |
120,620 |
302,930 |
485,164 |
|||||
| Total Revenue1 |
109,455 |
95,407 |
144,597 |
291,311 |
581,959 |
|||||
| Diluted Earnings per Share |
$ |
0.38 |
$ |
0.37 |
$ |
0.79 |
$ |
0.10 |
$ |
3.71 |
| Return on Shareholders' Equity |
6.8% |
6.8% |
12.6% |
0.4% |
15.1% |
|||||
| Return on Average Assets |
0.7% |
0.6% |
1.0% |
0.0% |
1.2% |
|||||
| Net Interest Margin (TEB)2 |
2.02% |
1.85% |
2.38% |
1.55% |
2.37% |
|||||
| Provision as a Percentage of Gross Uninsured Loans (annualized)3 |
0.12% |
(0.14)% |
0.07% |
0.07% |
0.05% |
|||||
| Provision as a Percentage of Gross Loans (annualized)3 |
0.09% |
(0.11)% |
0.05% |
0.05% |
0.04% |
|||||
| Efficiency Ratio (TEB)2 |
59.8% |
62.7% |
48.8% |
94.0% |
40.8% |
|||||
| As at |
||||||||||
| December 31 |
September 30 |
December 31 |
||||||||
| 2017 |
2017 |
2016 |
||||||||
| BALANCE SHEET HIGHLIGHTS |
||||||||||
| Total Assets |
$ |
17,591,143 |
$ |
18,856,294 |
$ |
20,528,777 |
||||
| Total Assets Under Administration4 |
25,040,182 |
26,659,330 |
28,917,534 |
|||||||
| Total Loans5 |
15,064,424 |
15,429,650 |
18,035,317 |
|||||||
| Total Loans Under Administration4,5 |
22,513,463 |
23,232,686 |
26,424,074 |
|||||||
| Liquid Assets |
1,654,718 |
2,657,055 |
2,067,981 |
|||||||
| Deposits |
12,170,454 |
13,358,618 |
15,886,030 |
|||||||
| Shareholders' Equity |
1,813,505 |
1,781,741 |
1,632,587 |
|||||||
| FINANCIAL STRENGTH |
||||||||||
| Capital Measures6 |
||||||||||
| Risk-Weighted Assets |
$ |
6,532,130 |
$ |
6,890,938 |
$ |
8,643,267 |
||||
| Common Equity Tier 1 Capital Ratio |
23.17% |
21.25% |
16.55% |
|||||||
| Tier 1 Capital Ratio |
23.17% |
21.25% |
16.54% |
|||||||
| Total Capital Ratio |
23.68% |
21.74% |
16.97% |
|||||||
| Leverage Ratio |
8.70% |
7.89% |
7.20% |
|||||||
| Credit Quality |
||||||||||
| Net Non-Performing Loans as a Percentage of Gross Loans |
0.30% |
0.28% |
0.30% |
|||||||
| Allowance as a Percentage of Gross Non-Performing Loans |
79.5% |
82.6% |
73.4% |
|||||||
| Share Information |
||||||||||
| Book Value per Common Share |
$ |
22.60 |
$ |
22.20 |
$ |
25.36 |
||||
| Common Share Price – Close |
$ |
17.31 |
$ |
13.89 |
$ |
31.34 |
||||
| Dividend paid during the period ended |
$ |
- |
$ |
- |
$ |
0.26 |
||||
| Dividend Payout Ratio |
- |
- |
32.9% |
|||||||
| Market Capitalization |
$ |
1,389,058 |
$ |
1,114,617 |
$ |
2,017,920 |
||||
| Number of Common Shares Outstanding |
80,246 |
80,246 |
64,388 |
|||||||
| 1The Company has revised its definition of Total Revenue and restated amounts in prior periods accordingly. Please see the definition under Non-GAAP Measures in the Company's 2017 Annual and Fourth Quarter Consolidated Financial Report. |
| 2See definition of Taxable Equivalent Basis (TEB) under Non-GAAP Measures in the Company's 2017 Annual and Fourth Quarter Consolidated Financial Report. |
| 3Provision as a percentage of both gross uninsured loans and gross loans for the three months ended September 30, 2017 include a release of $6.5 million in the collective allowance (please see Note 5(H) to the audited consolidated financial statements included in the Company's 2017 Annual and Fourth Quarter Consolidated Financial Report). In the absence of this release, annualized provision for credit losses was 0.07% of gross uninsured loans and 0.06% of gross loans for the three months ended September 30, 2017. |
| 4Total assets and loans under administration include both on- and off-balance sheet amounts. |
| 5Total loans include loans held for sale. |
| 6These figures relate to the Company's operating subsidiary, Home Trust Company. |
| Consolidated Balance Sheets |
|||||||
| As at |
|||||||
| December 31 |
September 30 |
December 31 |
|||||
| thousands of Canadian dollars |
2017 |
2017 |
2016 |
||||
| ASSETS |
|||||||
| Cash and Cash Equivalents |
$ |
1,336,138 |
$ |
1,058,940 |
$ |
1,205,394 |
|
| Available for Sale Securities |
332,468 |
523,482 |
534,924 |
||||
| Loans Held for Sale |
165,947 |
74,207 |
77,918 |
||||
| Loans |
|||||||
| Securitized mortgages |
2,993,250 |
2,549,205 |
2,526,804 |
||||
| Non-securitized mortgages and loans |
11,905,227 |
15,378,826 |
15,430,595 |
||||
| 14,898,477 |
17,928,031 |
17,957,399 |
|||||
| Collective allowance for credit losses |
(33,563) |
(37,063) |
(37,063) |
||||
| 14,864,914 |
17,890,968 |
17,920,336 |
|||||
| Other |
|||||||
| Restricted assets |
437,011 |
231,235 |
265,374 |
||||
| Derivative assets |
7,325 |
52,178 |
37,524 |
||||
| Other assets |
336,770 |
336,077 |
348,638 |
||||
| Deferred tax assets |
9,577 |
16,362 |
16,914 |
||||
| Goodwill and intangible assets |
100,993 |
133,581 |
121,755 |
||||
| 891,676 |
769,433 |
790,205 |
|||||
| $ |
17,591,143 |
$ |
20,317,030 |
$ |
20,528,777 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
| Liabilities |
|||||||
| Deposits |
|||||||
| Deposits payable on demand |
$ |
539,364 |
$ |
2,432,283 |
$ |
2,531,803 |
|
| Deposits payable on a fixed date |
11,631,090 |
13,261,819 |
13,354,227 |
||||
| 12,170,454 |
15,694,102 |
15,886,030 |
|||||
| Securitization Liabilities |
|||||||
| CMHC-sponsored mortgage-backed security liabilities |
1,562,152 |
930,614 |
898,386 |
||||
| CMHC-sponsored Canada Mortgage Bond liabilities |
1,473,318 |
1,610,482 |
1,637,117 |
||||
| Bank-sponsored securitization conduit liabilities |
142,279 |
139,115 |
114,146 |
||||
| 3,177,749 |
2,680,211 |
2,649,649 |
|||||
| Other |
|||||||
| Derivative liabilities |
38,728 |
959 |
3,490 |
||||
| Other liabilities |
360,477 |
324,070 |
320,737 |
||||
| Deferred tax liabilities |
30,230 |
38,210 |
36,284 |
||||
| 429,435 |
363,239 |
360,511 |
|||||
| 15,777,638 |
18,737,552 |
18,896,190 |
|||||
| Shareholders' Equity |
|||||||
| Capital stock |
231,156 |
83,975 |
84,910 |
||||
| Contributed surplus |
4,978 |
4,588 |
4,562 |
||||
| Retained earnings |
1,583,265 |
1,554,258 |
1,598,180 |
||||
| Accumulated other comprehensive loss |
(5,894) |
(63,343) |
(55,065) |
||||
| 1,813,505 |
1,579,478 |
1,632,587 |
|||||
| $ |
17,591,143 |
$ |
20,317,030 |
$ |
20,528,777 |
||
| Consolidated Statements of Income |
|||||||||||
| For the three months ended |
For the year ended |
||||||||||
| December 31 |
September 30 |
December 31 |
December 31 |
December 31 |
|||||||
| thousands of Canadian dollars, except per share amounts |
2017 |
2017 |
2016 |
2017 |
2016 |
||||||
| Net Interest Income Non-Securitized Assets |
|||||||||||
| Interest from loans |
$ |
158,938 |
$ |
167,159 |
$ |
190,389 |
$ |
710,926 |
$ |
768,034 |
|
| Dividends from securities |
278 |
253 |
2,614 |
3,117 |
10,112 |
||||||
| Other interest |
6,417 |
4,303 |
2,514 |
15,267 |
11,073 |
||||||
| 165,633 |
171,715 |
195,517 |
729,310 |
789,219 |
|||||||
| Interest on deposits and other |
70,330 |
75,430 |
78,868 |
294,685 |
318,162 |
||||||
| Interest and fees on line of credit facility |
6,215 |
11,368 |
- |
148,213 |
- |
||||||
| Net interest income non-securitized assets |
89,088 |
84,917 |
116,649 |
286,412 |
471,057 |
||||||
| Net Interest Income Securitized Loans and Assets |
|||||||||||
| Interest income from securitized loans and assets |
22,563 |
23,130 |
19,923 |
89,929 |
81,705 |
||||||
| Interest expense on securitization liabilities |
19,933 |
19,285 |
15,952 |
73,411 |
67,598 |
||||||
| Net interest income securitized loans and assets |
2,630 |
3,845 |
3,971 |
16,518 |
14,107 |
||||||
| Total Net Interest Income |
91,718 |
88,762 |
120,620 |
302,930 |
485,164 |
||||||
| Provision for credit losses |
3,434 |
(4,257) |
2,400 |
7,516 |
7,890 |
||||||
| 88,284 |
93,019 |
118,220 |
295,414 |
477,274 |
|||||||
| Non-Interest Income (Loss) |
|||||||||||
| Fees and other income |
16,346 |
18,087 |
17,613 |
67,932 |
71,329 |
||||||
| Securitization income |
1,695 |
2,525 |
9,064 |
12,529 |
33,797 |
||||||
| Gain on acquisition of CFF Bank |
- |
- |
- |
- |
651 |
||||||
| Net realized and unrealized losses on securities |
- |
(13,155) |
- |
(90,070) |
(175) |
||||||
| Net realized and unrealized losses on derivatives |
(304) |
(812) |
(2,700) |
(2,010) |
(8,807) |
||||||
| 17,737 |
6,645 |
23,977 |
(11,619) |
96,795 |
|||||||
| 106,021 |
99,664 |
142,197 |
283,795 |
574,069 |
|||||||
| Non-Interest Expenses |
|||||||||||
| Salaries and benefits |
17,063 |
22,610 |
24,134 |
98,595 |
101,880 |
||||||
| Premises |
3,478 |
3,283 |
3,607 |
13,878 |
14,505 |
||||||
| Other operating expenses |
44,949 |
34,031 |
43,287 |
162,407 |
122,554 |
||||||
| 65,490 |
59,924 |
71,028 |
274,880 |
238,939 |
|||||||
| Income Before Income Taxes |
40,531 |
39,740 |
71,169 |
8,915 |
335,130 |
||||||
| Income taxes |
|||||||||||
| Current |
8,160 |
5,839 |
22,941 |
(2,475) |
90,895 |
||||||
| Deferred |
1,752 |
3,918 |
(2,478) |
3,863 |
(3,161) |
||||||
| 9,912 |
9,757 |
20,463 |
1,388 |
- |
87,734 |
||||||
| NET INCOME |
$ |
30,619 |
$ |
29,983 |
$ |
50,706 |
$ |
7,527 |
$ |
247,396 |
|
| NET INCOME PER COMMON SHARE |
|||||||||||
| Basic |
$ |
0.38 |
$ |
0.37 |
$ |
0.79 |
$ |
0.10 |
$ |
3.71 |
|
| Diluted |
$ |
0.38 |
$ |
0.37 |
$ |
0.79 |
$ |
0.10 |
$ |
3.71 |
|
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|||||||||||
| Basic |
80,246 |
80,246 |
64,479 |
72,349 |
66,601 |
||||||
| Diluted |
80,286 |
80,246 |
64,519 |
72,358 |
66,668 |
||||||
| Total number of outstanding common shares |
80,246 |
80,246 |
64,388 |
80,246 |
64,388 |
||||||
| Book value per common share |
$ |
22.60 |
$ |
22.20 |
$ |
25.36 |
$ |
22.60 |
$ |
25.36 |
|
| Consolidated Statements of Comprehensive Income |
||||||||||
| For the three months ended |
For the year ended |
|||||||||
| December 31 |
September 30 |
December 31 |
December 31 |
December 31 |
||||||
| thousands of Canadian dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
|||||
| NET INCOME |
$ |
30,619 |
$ |
29,983 |
$ |
50,706 |
$ |
7,527 |
$ |
247,396 |
| OTHER COMPREHENSIVE INCOME |
||||||||||
| Available for Sale Securities and Retained Interests |
||||||||||
| Net unrealized gains |
1,431 |
1,483 |
12,774 |
19,878 |
11,852 |
|||||
| Net losses reclassified to net income |
- |
- |
- |
46,650 |
204 |
|||||
| 1,431 |
1,483 |
12,774 |
66,528 |
12,056 |
||||||
| Income tax expense |
378 |
394 |
3,391 |
17,644 |
3,179 |
|||||
| 1,053 |
1,089 |
9,383 |
48,884 |
8,877 |
||||||
| Cash Flow Hedges |
||||||||||
| Net unrealized gains (losses) |
356 |
(467) |
(1,677) |
(721) |
1,035 |
|||||
| Net (gains) losses reclassified to net income |
(68) |
287 |
174 |
1,120 |
1,147 |
|||||
| 288 |
(180) |
(1,503) |
399 |
2,182 |
||||||
| Income tax expense (recovery) |
78 |
(50) |
(398) |
112 |
580 |
|||||
| 210 |
(130) |
(1,105) |
287 |
1,602 |
||||||
| Total other comprehensive income |
1,263 |
959 |
8,278 |
49,171 |
10,479 |
|||||
| COMPREHENSIVE INCOME |
$ |
31,882 |
$ |
30,942 |
$ |
58,984 |
$ |
56,698 |
$ |
257,875 |
| Consolidated Statements of Changes in Shareholders' Equity |
|||||||||||||||
| Net Unrealized |
|||||||||||||||
| Losses |
Net Unrealized |
Total |
|||||||||||||
| on Securities and |
Losses on |
Accumulated |
|||||||||||||
| Retained |
Cash Flow |
Other |
Total |
||||||||||||
| thousands of Canadian dollars, |
Capital |
Contributed |
Retained |
Interests Available |
Hedges, |
Comprehensive |
Shareholders' |
||||||||
| except per share amounts |
Stock |
Surplus |
Earnings |
for Sale, After Tax |
After Tax |
Loss |
Equity |
||||||||
| Balance at December 31, 2016 |
$ |
84,910 |
$ |
4,562 |
$ |
1,598,180 |
$ |
(53,589) |
$ |
(1,476) |
$ |
(55,065) |
$ |
1,632,587 |
|
| Comprehensive income |
- |
- |
7,527 |
48,884 |
287 |
49,171 |
56,698 |
||||||||
| Stock options settled |
548 |
(141) |
- |
- |
- |
- |
407 |
||||||||
| Amortization of fair value of |
|||||||||||||||
| employee stock options |
- |
557 |
- |
- |
- |
- |
557 |
||||||||
| Repurchase of shares |
(267) |
- |
(5,732) |
- |
- |
- |
(5,999) |
||||||||
| Issuance of shares |
145,965 |
- |
- |
- |
- |
- |
145,965 |
||||||||
| Dividends |
|||||||||||||||
| ($0.26 per share) |
- |
- |
(16,710) |
- |
- |
- |
(16,710) |
||||||||
| Balance at December 31, 2017 |
$ |
231,156 |
$ |
4,978 |
$ |
1,583,265 |
$ |
(4,705) |
$ |
(1,189) |
$ |
(5,894) |
$ |
1,813,505 |
|
| Balance at December 31, 2015 |
$ |
90,247 |
$ |
3,965 |
$ |
1,607,833 |
$ |
(62,466) |
$ |
(3,078) |
$ |
(65,544) |
$ |
1,636,501 |
|
| Comprehensive income |
- |
- |
247,396 |
8,877 |
1,602 |
10,479 |
257,875 |
||||||||
| Stock options settled |
1,984 |
(530) |
- |
- |
- |
- |
1,454 |
||||||||
| Amortization of fair value of |
|||||||||||||||
| employee stock options |
- |
1,127 |
- |
- |
- |
- |
1,127 |
||||||||
| Repurchase of shares |
(7,321) |
- |
(191,875) |
- |
- |
- |
(199,196) |
||||||||
| Dividends |
|||||||||||||||
| ($0.98 per share) |
- |
- |
(65,174) |
- |
- |
- |
(65,174) |
||||||||
| Balance at December 31, 2016 |
$ |
84,910 |
$ |
4,562 |
$ |
1,598,180 |
$ |
(53,589) |
$ |
(1,476) |
$ |
(55,065) |
$ |
1,632,587 |
|
| Consolidated Statements of Cash Flows |
||||||||||
| For the three months ended |
For the year ended |
|||||||||
| December 31 |
December 31 |
December 31 |
December 31 |
|||||||
| thousands of Canadian dollars |
2017 |
2016 |
2017 |
2016 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||
| Net income for the year |
$ |
30,619 |
$ |
50,706 |
$ |
7,527 |
$ |
247,396 |
||
| Adjustments to determine cash flows relating to operating activities: |
||||||||||
| Amortization of net discount on securities |
- |
(79) |
(330) |
(458) |
||||||
| Provision for credit losses |
3,434 |
2,400 |
7,516 |
7,890 |
||||||
| Loss on sale of loan portfolio |
- |
- |
18,160 |
- |
||||||
| Gain on sale of mortgages or residual interest |
(163) |
(7,006) |
(5,695) |
(26,972) |
||||||
| Net realized and unrealized losses on securities |
- |
- |
71,910 |
175 |
||||||
| Amortization and impairment losses¹ |
12,035 |
18,104 |
34,345 |
29,686 |
||||||