First National Financial Corporation
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About the company
First National Financial Corporation, along with its various subsidiaries, is primarily involved in the generation, evaluation, and servicing of both business and personal property loans throughout Canada. The organization operates within two distinct operational segments: Residential and Commercial. Its product portfolio includes financing for single-family residences, multi-unit residential complexes, and a range of commercial real estate ventures.
- CEO
- Jason Ellis
- IPO
- 2008
- Employees
- 1,773
- HQ
- Toronto, ON, CA
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- Market Cap
- $2.88B
- P/E
- 33.55
- Fwd P/E
- 13.15
- PEG
- -1.70
- P/S
- 2.64
- P/B
- 3.85
- EV/EBITDA
- 423.30
- Div Yield
- 1.30%
- Gross Margin
- 26.37%
- Op Margin
- 10.92%
- Net Margin
- 8.05%
- ROE
- 12.02%
- ROIC
- 0.17%
Latest fiscal year · YoY change
- Revenue
- $2.12B+12.5%
- Gross Profit
- $587.61M-4.0%
- Op Income
- $276.65M
- Net Income
- $203.39M-19.5%
- EPS
- $3.33-19.8%
- OCF Growth
- -637.8%
- FCF Growth
- -600.1%
- 52W High
- $49.00
- 52W Low
- $35.50
- 50D MA
- $48.10
- 200D MA
- $42.42
- Beta
- 0.60
- RSI (14)
- 52
- Avg Volume
- 90.70K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
First National delivered solid mortgage volume growth in Q1, but profitability was lower as revenue gains were offset by securitization margin compression, lower servicing-related income, and higher operating costs.· April 30, 2025
- Pre-fair market value income was $52.6 million, down 16% year over year, or $10.1 million.
- MUA rose 7% year over year, or $10.3 billion, with annualized Q1 growth of 4%.
- Single-family funding increased 34% year over year, while commercial originations rose 18%.
- Revenue increased 2% year over year, but net interest margin compressed about 7 basis points and securitization NIM was 48 bps.
- Management expects year-over-year growth in originations to continue into Q2 based on commitments already issued and outstanding.
- results
- As reported, pre-fair market value income was $52.6 million, down 16% year over year, or $10.1 million. Revenue increased 2% year over year, while MUA increased 7% year over year, or $10.3 billion, and annualized Q1 MUA growth was 4%. Single-family funding increased 34% year over year, commercial originations increased 18%, and about $3.2 billion of volume was originated for direct securitization into NHA-MBS, CMB and ABCP programs. Management said securitization NIM was about 48 bps in the quarter, down from 52 bps quarter over quarter and 54 bps year over year, and the company maintained an annualized dividend rate of $2.5 per share with a payout ratio of about 98%. For Q2, management expects year-over-year growth in originations to continue; they also said there is a chance to recover a couple of basis points of securitization margin as ABCP spreads normalize and indemnity payments on single-family pools revert.
- ceo
- Jason Ellis sounded constructive on volume trends and said First National is outperforming a soft housing backdrop because of stronger broker engagement, better pricing from third-party investors, and favorable CMHC rule changes, including the higher purchase price cap and 30-year amortization for qualifying insured mortgages. He emphasized that the company did not loosen credit or pricing standards to get higher commitments. On credit, he said prime arrears remain below pre-pandemic levels, while Alt A arrears are elevated but improved month over month in February and March.
- cfo
- Rob Inglis said the quarter’s financials were shaped by volume growth that does not immediately convert into earnings, along with margin pressure and higher operating costs. He highlighted 7% year-over-year MUA growth, a 2% revenue increase, a 7% NIM compression, a 7% increase in salaries and benefits from headcount growth, a 20% increase in interest expense, and a 7% rise in other operating expenses tied to IT re-platforming. He also said mortgage investment income increased 15% due mainly to a larger securitization balance, and he reiterated that IT spending should stay elevated for a few quarters as the company migrates to the cloud.
- qanda
- Analysts focused on why First National’s single-family originations were growing despite sluggish resale activity, and management pointed to a better mix toward insured mortgages, larger average mortgage size, and stronger investor engagement. Questions also centered on securitization NIM compression; Jason Ellis said the main pressures were runoff of older high-spread pools, temporary ABCP funding cost compression, and a one-time negative indemnity effect, and he said none of those should be a major ongoing issue. On commercial mortgages, management said CMHC has become more risk-off, which should affect construction more than term lending, but they still see resilient demand and noted a built-in pipeline from construction loans converting into term mortgages.
- bull
- The bull case from this call is that funding and commitment momentum remains strong even in a softer housing market, with single-family funding up 34% and commercial originations up 18%. Management also sees Q2 originations continuing to grow year over year, and says the business is benefiting from recurring revenue buildup through higher MUA and servicing balances.
- bear
- The main risks are that profitability lagged volume growth in Q1, with pre-fair market value income down 16% as margins compressed and costs rose. Management also flagged softer third-party underwriting revenue, elevated Alt A arrears versus prime, potential caution from CMHC on underwriting, and several quarters of elevated IT spending.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 28.5%
- Shares Outstanding
- 59.97M
- Float Shares
- 17.07M
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