MCAN FINANCIAL GROUP RELEASES Q2 2025 RESULTS AND DECLARES 41 CENTS CASH DIVIDEND

Executive Summary

• MCAN Financial Group reported Q2 2025 net income of $20.2 million ($0.51 EPS), an increase from $19.7 million ($0.52 EPS) in Q2 2024, driven by higher mortgage spread income and MCAP equity income, partially offset by higher credit loss provisions.
• The company declared a third-quarter cash dividend of $0.41 per share, payable on September 29, 2025.
• Total assets reached $5.7 billion at June 30, 2025, with significant growth in the non-securitized mortgage portfolio and a new uninsured residential mortgage securitization program launched with a major Canadian bank.

Key Details

• Q2 2025 Financial Performance:
  • Net Income: $20.2 million ($0.51 EPS) vs. $19.7 million ($0.52 EPS) in Q2 2024.
  • Return on Average Shareholders' Equity: 13.19% vs. 13.63% in Q2 2024.
  • YTD 2025 Net Income: $36.8 million ($0.94 EPS) vs. $43.0 million ($1.17 EPS) in YTD 2024.
  • YTD Return on Average Shareholders' Equity: 12.10% vs. 15.31% in YTD 2024.
• Dividend Declaration:
  • Board declared a regular cash dividend of $0.41 per share.
  • Record Date: September 15, 2025.
  • Payment Date: September 29, 2025.
• Portfolio Composition & Growth (as of June 30, 2025):
  • Total Assets: $5.7 billion (up $391 million or 7.3% from Dec 31, 2024).
  • Non-securitized Mortgage Portfolio: $2.7 billion (up $277 million or 11% from Dec 31, 2024).
  • Uninsured Residential Mortgages: $1.2 billion (up $53 million or 5% from Dec 31, 2024).
  • Construction and Commercial Mortgages: $1.2 billion (up $77 million or 7% from Dec 31, 2024).
  • Securitized Mortgages: $2.4 billion (up $9 million or 0.4% from Dec 31, 2024).
• Operational Metrics:
  • Uninsured Residential Originations (YTD 2025): $231 million (up $34 million or 17% from YTD 2024).
  • Insured Residential Securization Volumes (Q2 2025): $211 million (up $54 million or 34% from Q2 2024).
  • New Uninsured Securitization Program: Launched in July 2025 with a Canadian Schedule I Chartered bank; $80.2 million sold into the program in July 2025.
• Credit Quality & Provisions:
  • Provision for Credit Losses (Q2 2025): $2.2 million (vs. $1.4 million in Q2 2024).
  • Provision for Credit Losses (YTD 2025): $5.3 million (vs. $0.8 million in YTD 2024).
  • Arrears Total Mortgage Ratio: 2.49% at June 30, 2025.
  • Impaired Non-securitized Mortgage Ratio: 2.34% at June 30, 2025.
  • Average LTV for Uninsured Residential Mortgages: 64.0% at June 30, 2025.
• Capital & Financing Activities:
  • ATM Program (Q2 2025): Sold 305,700 shares at weighted avg price of $19.37 for gross proceeds of $5.9 million.
  • ATM Program (YTD 2025): Sold 366,900 shares at weighted avg price of $19.19 for gross proceeds of $7.0 million.
  • Remaining ATM Capacity: $13.9 million as of June 30, 2025.
  • DRIP (Q2 2025): Issued $2.5 million in new common shares; participation rate was 15%.
  • CET 1 Ratio: 18.90% at June 30, 2025.
  • Total Capital to Risk-Weighted Assets Ratio: 19.22% at June 30, 2025.
  • Leverage Ratio: 9.32% at June 30, 2025.

Notable Quotes

• "We recorded quality results for the second quarter of 2025 up 22% from Q1 2025 and 2% from Q2 2024. We continue to leverage our brand and exceptional customer service to take advantage in the marketplace, with record originations in our insured residential lending business while maintaining our spreads." — Derek Sutherland, CEO
• "In July 2025, we launched a new uninsured residential mortgage third-party securitization program with one of the major Canadian banks which will add to our securitization income and allow us to grow our uninsured originations." — Derek Sutherland, CEO