Concentra Bank (Concentra) posted strong second quarter financial results, as reported to shareholders earlier today via the company's Q2 Investor Relations update.
Also reported, the Concentra Board of Directors declared a second quarter cash dividend of $0.139539 per common share, representing a $1.34 million total quarterly payment to common shareholders.
Concentra's financial performance was highlighted in the Q2 year-to-date results with Concentra recording a net income of $8.8 million, down from $10.7 million in Q1; and generating a return on equity of 9.9%, down from 11.1% reported in Q1.
Concentra ended the quarter with total reported assets of $9.4 billion, with CET1-RWA and leverage ratios of 12.1% and 4.5%, respectively. Concentra maintains a high quality composition of capital, with levels remaining stable through 2018, and in excess of regulatory minimum requirements.
Notable business highlights from Q2 include:
- strong origination growth in commercial lending
- Alt A mortgage volumes continue to grow, offsetting market headwinds for insured residential mortgages
- steady results in consumer lending
- continued improvement in portfolio credit quality
- stable diversification of funding sources
In summary for Q2, Concentra remains focused on delivering value to owners through consistent dividends, and building a stronger franchise model.
Since 2005, Concentra has returned over $76 million in dividend payments to common shareholders
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Quarterly Results Materials
Detailed quarterly results materials, including the webcast, presentation, and the Investor Fact Sheet are available
Caution Regarding Forward-Looking Statements
From time to time Concentra makes written and verbal forward-looking statements. These are included in the MD&A, periodic reports to shareholders, regulatory filings, press releases, Concentra presentations and other Concentra communications. Forward-looking statements are made in connection with business objectives and targets, Concentra strategies, operations, anticipated financial results and the outlook for Concentra, its industry, and the Canadian economy. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of Concentra to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, competition, and other.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting Concentra and the Canadian economy. Although Concentra believes the assumptions used to make such statements are reasonable at this time there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by Concentra in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its lending business, a continuation of the current level of economic uncertainty that affects market conditions, continued acceptance of its products in the marketplace, and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Concentra does not undertake to update any forward-looking statements that are contained herein.
1 Formerly Class A shares.