Firm Capital Mortgage Investment Corporation Announces Q4 2025 Results And Declares Monthly Cash Dividends For April, May And June 2026
MWN-AI** Summary
Firm Capital Mortgage Investment Corporation (TSX: FC) announced its Q4 2025 financial results on March 12, 2026, reporting a 4.7% decline in net income for the quarter, totaling $8.7 million, compared to $9.2 million in Q4 2024. However, the full year reflected growth, with net income rising 6.4% to $37.5 million from $35.2 million in the previous year. The basic earnings per share (EPS) for Q4 was $0.238, down from $0.249 in Q4 2024, whereas the annual EPS increased slightly to $1.020 from $0.996.
The corporation's investment portfolio contracted by 6.5%, reaching $610.9 million as of December 31, 2025, down from $653.8 million one year prior. In 2025, new investment funding totaled $278.0 million, compared to $329.0 million in 2024, and repayments climbed to $320.7 million from $265.3 million in the prior year. As of the end of 2025, the company reported 242 investments, with 95.2% in conventional first mortgages. The allowance for expected credit losses rose to $36.8 million, reflecting increased caution in the lending environment.
In addition to the results, Firm Capital declared monthly cash dividends of $0.078 per share for April, May, and June 2026. The corporation also facilitates a Dividend Reinvestment Plan (DRIP) for shareholders wishing to reinvest dividends into additional shares, typically at discounted rates. The reported dividends for 2025 amounted to $37.5 million, yielding an annual payout of $1.020 per share.
Firm Capital continues its mission to provide stable dividends and preserve shareholders' equity by focusing on niche markets underserved by larger lending institutions.
MWN-AI** Analysis
Firm Capital Mortgage Investment Corporation (FCMIC) has recently reported its Q4 2025 results, highlighting a modest decline in net income for the quarter, yet a robust annual performance. The net income for Q4 fell by 4.7% year-over-year to approximately $8.74 million, while full-year net income rose 6.4% to $37.47 million. This reflects the resilience of the corporation amid a competitive and potentially volatile mortgage market.
The decrease in the quarterly net income can be attributed to various factors, including a 6.5% reduction in the investment portfolio size and increased expected credit losses, which rose to $36.8 million from $29.6 million. Despite this, the corporation demonstrated strong yearly growth, showcasing its ability to adapt, especially in the face of $320.7 million in repayments exceeding new funding of $278 million for the year.
From a dividend perspective, FCMIC displayed stability by announcing a continued monthly cash dividend of $0.078 per share for the second quarter of 2026. Shareholders also have the opportunity to reinvest dividends through the Dividend Reinvestment Plan (DRIP), which could enhance shareholder value over time, especially when investing in the current dividend yield of approximately 7.8%.
In light of these factors, FCMIC appears to be a solid long-term investment for those prioritizing stable income and exposure to the mortgage sector. However, potential investors should remain cautious due to the rising credit loss estimates and portfolio contraction. It’s advisable to monitor the corporation’s future performance closely and consider potential interest rate fluctuations that could affect mortgage returns. Investors may want to evaluate the sustainability of FCMIC’s dividend in relation to underlying financial health, but the commitment to shareholder value and a diverse investment portfolio positions this corporation favorably in the niche market it serves.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
TORONTO, March 12, 2026 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX FC, FC.DB.J, FC.DB.K ,FC.DB.L and FC.DB.M) today released its financial statements for the three and twelve months ended December 31, 2025.
NET INCOME
For the three months ended December 31, 2025, net income decreased by 4.7% to $8,735,874 as compared to $9,164,362 for the same period in 2024. Net income for the year ended December 31, 2025, increased by 6.4% to $37,471,563, as compared to $35,228,450 reported for the same period in 2024.
EARNINGS PER SHARE
Basic weighted average earnings per share for the three months ended December 31, 2025 was $0.238, as compared to the $0.249 per share reported for the three months ended December 31, 2024. Basic weighted average earnings per share for the year ended December 31, 2025 was $1.020 (December 31, 2024 - $0.996).
PORTFOLIO
The Corporation’s investment portfolio decreased by 6.5% to $610.9 million as at December 31, 2025, in comparison to $653.8 million as at December 31, 2024 (in each case, gross impairment allowance, fair value adjustment, and unamortized fees). For the year ended December 31, 2025, new investment funding was $278.0 million (2024 – $329.0 million), and repayments were $320.7 million (2024 – $265.3 million). On December 31, 2025, the Investment Portfolio was comprised of 242 investments (2024 – 286). The average gross investment size was approximately $2.5 million, with 13 investments individually exceeding $7.5 million.
ALLOWANCE FOR EXPECTED CREDIT LOSSES AND FAIR VALUE ADJUSTMENTS
The allowance for expected credit losses and fair value adjustment as of December 31, 2025 was $36.8 million (December 31, 2024 – $29.6 million), comprising (i) $29.1 million (December 31, 2024 – $21.9 million) representing the total amount of management’s estimate of the shortfall between the investment balances and the estimated recoverable amount from the security under the specific loans, (ii) $4.5 million (2024 – $6.0 million) representing the total amount of management’s estimate of fair value adjustment on investments stated at fair value through profit or loss; and (iii) a collective allowance balance of $3.2 million (2024 – $1.7 million).
INVESTMENT PORTFOLIO DETAILS
Details on the Corporation’s investment portfolio as at December 31, 2025, are as follows:
- The total gross carrying amount of the investment portfolio was $610,923,271, a decrease of 6.6% from the $653,767,443 reported at December 31, 2024.
- Conventional first mortgages comprise 95.2% of the total investment portfolio (92.4% as at December 31, 2024).
- Approximately 85.7% of the total gross carrying amount of the investment portfolio matures by December 31, 2026.
- The average face interest rate on the total gross carrying amount of the investment portfolio is 9.50% per annum, as compared to 10.07% at December 31, 2024.
- Regionally, the gross mortgage investment portfolio is diversified as follows: Ontario (89.0%), Quebec (6.5%), Western Canada (1.6%) and USA (2.9%).
- Of the 242 investments, 230 were underwritten (as part of a renewal process or for new fundings) between 2024 and 2025, representing 92.0% of the investment portfolio, while the remaining 8.0% were underwritten in 2023 or prior.
CASH DIVIDEND DISTRIBUTION
The Corporation is pleased to announce that its board of directors has declared a monthly cash dividend of $0.078 per common share (subject to adjustment at the discretion of the board of directors) payable on each dividend payment date set out below to holders of common shares of record at the close of business on each record date set out below:
| Record Date | Dividend Payment Date |
| April 30, 2026 | May 15, 2026 |
| May 29, 2026 | June 15, 2026 |
| June 30, 2026 | July 15, 2026 |
DIVIDEND AND SHARE PURCHASE PLAN
The Corporation has in place a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan that is available to its shareholders. The DRIP allows participants to have their monthly cash dividends reinvested in additional shares. The price paid per share is 97% (if the share price is higher than $12.50) of the weighted average trading price calculated five trading days immediately preceding each dividend date with no commission cost. Once registered with the Share Purchase Plan, participants have the right to purchase additional shares, totaling no greater than $12,000 per year and no less than $250 per month. Shareholders participating pay no commission.
For the year ended December 31, 2025, the Corporation declared dividends on its common shares totaling $37,471,563 or $1.020 per share, versus $35,215,038, or $0.9920 per share for the year ended December 31, 2024. The number of common shares outstanding at December 31, 2025 was 36,738,425, as compared to 36,734,405 at December 31, 2024.
ABOUT THE CORPORATION
Where Mortgage Deals Get Done®
The Corporation is an investor in mortgages through a mortgage banker, Firm Capital Corporation, a non-bank lender providing residential home and commercial short-term bridge and conventional real estate financing, including construction financing, mezzanine debt, and equity investments. Since October 1999, the Corporation’s investment objective is the preservation of shareholders’ equity, while providing shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives in select niche markets that are underserviced by large lending institutions. Lending activities are designed to develop a diversified mortgage portfolio, producing a stable return to shareholders. Full reports of the financial results of the Corporation are outlined in the audited consolidated financial statements and the related management’s discussion and analysis of the Corporation, available on the SEDAR+ website at www.sedarplus.ca. In addition, supplemental information is available on the Corporation’s website at www.firmcapital.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve those objectives, our performance, our investment portfolio and our dividends, as well as statements with respect to management’s beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “should”, “plans”, or “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management.
These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our current Annual Information Form under “Risk Factors” (a copy of which can be obtained at www.sedarplus.ca), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this news release.
Those risks and uncertainties include, among others, risks associated with mortgage lending, dependence on the Corporation’s manager and mortgage banker, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, and shareholder liability. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among others, that the Corporation is able to invest in mortgages at rates consistent with rates historically achieved; adequate mortgage investment opportunities are presented to the Corporation; and adequate bank indebtedness and bank loans are available to the Corporation. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
For further information, please contact:
Firm Capital Mortgage Investment Corporation
Eli Dadouch
President & Chief Executive Officer
(416) 635-0221
Boutique Mortgage Lenders®
FAQ**
How does the recent performance of Firm Capital Mortgage Investment Corporation, compared to previous years, affect the outlook for Firm Capital Property Trust - Unit FRMUF, particularly in terms of portfolio growth and net income?
Given the decrease in the total gross carrying amount of the investment portfolio, what strategies is Firm Capital Mortgage Investment Corporation implementing to enhance the value of Firm Capital Property Trust - Unit FRMUF for its shareholders?
With new investment funding decreasing while repayments increased, how might this impact the future cash flow and dividend stability for investors in Firm Capital Property Trust - Unit FRMUF?
What measures is Firm Capital Mortgage Investment Corporation taking to manage the expected credit losses as reported, and how could this affect the long-term performance of Firm Capital Property Trust - Unit FRMUF?
**MWN-AI FAQ is based on asking OpenAI questions about Firm Capital Property Trust - Unit (OTC: FRMUF).
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