Xceed Mortgage Corporation Reports Fiscal 2011 Second-Quarter Financial Results

TORONTO, June 9, 2011 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian provider of insured residential mortgages, today announced its financial results for the second quarter of fiscal 2011 ended April 30, 2011.

  • Company reported $0.7 million net income for the quarter, increased from net income of $0.045 million in the first quarter of 2011 and net income of $0.4 million in the second quarter of 2010.
  • Results included a $1.2 million net gain reflecting the successful closing of the $64.0 million Okanagan Funding Trust refinancing on March 3, 2011.  This transaction included both a repurchase of $19.0 million of mortgages and the purchase of a $3.9 million participation interest note from a Canadian Financial institution.
  • The company continues to originate through its Internal Sales group to offer renewals, refinancings, and originations to both existing clients and the company's "friends and family program."   The company also launched a new client blog Xceed Xpress, which can be found at http://xceedxpress.wordpress.com.
  • Mortgage and other assets under administration are $1.3 billion, as at April 30, 2011.

In the second quarter, 2011, the company eliminated its exposure to the OFT securitization conduit by closing a refinancing of the mortgages within the conduit.  As a result, the company materially reduced its exposure to its legacy securitization conduit business by converting its B-note investment in OFT into a combination of mortgages and a significantly smaller participation note of $3.9 million.

Subsequent to the quarter end, the company entered into a new CMB aggregator arrangement with another financial institution that will aim to provide consistent selling spreads for the company to sell whole-loan mortgages for onward sale into the Canadian CMB market.  The combination of improved mortgage spreads and consistent CMB selling spreads will assist the company in planning for future growth.

Xceed has filed its financial statements and management's discussion and analysis (MD&A) for the second quarter of 2011 with SEDAR and they are posted on the company's website. They can be accessed by clicking here (http://investors.xceedmortgage.com/financialreports.asp?ticker=t.xmc).

Investor Inquiries

Michael Jones, President and Chief Executive Officer, and Jeff Bouganim, Chief Financial Officer will be available from Thursday, June 9 onwards to respond to investor inquiries regarding these results.

About Xceed Mortgage

Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured residential mortgages that it originates in Canada.  The company has approximately $1.3 billion of mortgages and other assets under administration.  Xceed's shares are traded on the Toronto Stock Exchange.  To find out more about Xceed Mortgage Corporation [TSX: XMC], visit our website at www.xceedmortgage.com.

SOURCE Xceed Mortgage Corporation

For further information:

Michael Jones can be reached at:
  Telephone: (416) 364-7944 Ext.3434 
E-mail: MJones@XceedMortgage.com
Jeff Bouganim can be reached at:
  Telephone: (416) 364-7944 Ext.3335 
E-mail: JBouganim@XceedMortgage.com


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Xceed Mortgage Corporation

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