Lender announces latest earnings amid bumpy economy, mortgage market
Higher provisions for credit losses linked to economic and geopolitical forecasts contributed to a year-to-date decline in net income for MCAN Mortgage Corp., which reported $36.8 million in earnings for the first half of 2025, down from $43.0 million in the same period last year.
Second-quarter 2025 net income was $20.2 million, or $0.51 per share, compared to $19.7 million, or $0.52 per share, in Q2 2024. Return on average shareholders’ equity for the quarter was 13.19%, compared to 13.63% a year earlier. For the year to date, return on average shareholders’ equity was 12.10%, down from 15.31% in the first half of 2024.
Total assets stood at $5.7 billion as of June 30, 2025, up $391 million, or 7.3%, from December 31, 2024. The non-securitized mortgage portfolio rose to $2.7 billion, an 11% increase. Uninsured residential mortgages reached $1.2 billion, up $53 million or 5%, with $231 million in originations, 17% higher than the same period in 2024. Renewals totaled $245 million, compared to $259 million year-to-date 2024.
Construction and commercial mortgages increased 7% to $1.2 billion, driven by $323 million in new loan advances. Securitized mortgages totaled $2.4 billion, up 0.4%. Insured mortgage securitization volumes were $211 million in Q2 2025, up 34% from Q2 2024. Year-to-date volumes decreased 29% to $264 million.
MCAN CEO Derek Sutherland said the company delivered strong second-quarter results for 2025, with earnings rising 22% from the previous quarter and 2% year-over-year. He noted that MCAN achieved record originations in its insured residential lending business while maintaining spreads, driven by its brand and customer service.
“Although we recorded higher provisions for credit losses than the prior year, our credit quality remains resilient as it has since our founding,” Sutherland said.
In July 2025, MCAN began participating in an uninsured residential mortgage third-party securitization program with a Canadian Schedule I Chartered bank, selling $80.2 million into the program.
Provisions for credit losses on the non-securitized mortgage portfolio totaled $2.2 million in Q2 2025, up from $1.4 million in Q2 2024. For the year to date, provisions increased to $5.3 million from $0.8 million a year earlier. Equity income from MCAP Commercial LP was $9.7 million in Q2, up from $7.7 million, and $15.3 million year to date, up from $14.9 million.
The Board declared a third-quarter dividend of $0.41 per share, payable September 29. Under its ATM program, MCAN issued 305,700 shares in Q2, raising $5.9 million. The DRIP participation rate was 15% for Q2, compared to 30% in the prior year.
Capital ratios remained above regulatory requirements, with CET1 at 18.90% and a leverage ratio of 9.32% as of June 30, 2025.
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