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,
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).
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: