TORONTO–(BUSINESS WIRE)–Home Capital Group Inc. (“Home Capital” or “the Company”) (TSX: HCG) today announced that its Board of Directors declared a common share dividend of $0.15 per share for the second quarter 2022. The dividend is payable on June 15, 2022 to shareholders of record on May 31, 2022. The dividend is designated as an “eligible” dividend for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.

About Home Capital

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank, offer deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, and Quebec.

Contacts

Jill MacRae

VP, Investor Relations and ESG

(416) 933-4991

investor.relations@hometrust.ca

Double-digit loan growth driven by 72% increase in originations

TORONTO–(BUSINESS WIRE)–Home Capital Group Inc. (“Home Capital” or “the Company”) (TSX: HCG) today reported financial results for the three months ended March 31, 2022. This press release should be read in conjunction with the Company’s 2022 First Quarter Report including Financial Statements and Management’s Discussion and Analysis which are available on Home Capital’s website at www.homecapital.com and on SEDAR at www.sedar.com.

“We are starting off with good momentum in growing our mortgage book including record originations in our Classic single-family mortgages,” said Yousry Bissada, President and Chief Executive Officer. “We are pleased with the rate of our asset growth. The assets we add now will generate income well into the future. Although our net interest margin fell this quarter due to increases in our cost of funds outpacing increases in mortgage rates, we expect to benefit over time from margin increases as spreads normalize.”

Net Income: Diluted earnings per share of $1.02 in Q1 2022 compared with $1.24 in Q1 2021

• Net income of $44.7 million or $1.02 diluted earnings per share in Q1 2022, a decrease of 1.9% from $1.04 per share in Q4 2021 and a decrease of 17.7% from $1.24 per share in Q1 2021.
• Net interest margin of 2.18% in Q1 2022, compared with 2.46% in Q4 2021 and 2.61% in Q1 2021.
• Non-interest expenses of $65.0 million in Q1 2022, compared with $61.7 million in Q4 2021 and $64.1 million in Q1 2021.

Asset Growth: Mortgage originations increased 72.5% over Q1 2021

• Mortgage originations of $2.76 billion in Q1 2022, compared with $2.72 billion in Q4 2021 and $1.60 billion in Q1 2021.
• Single-family mortgage originations of $2.30 billion in Q1 2022, compared with $2.27 billion in Q4 2021 and $1.33 billion in Q1 2021.
• Total loan portfolio of $19.47 billion at the end of Q1 2022, an increase of 5.6% from the end of Q4 2021 and 12.7% from the end of Q1 2021.
• Loans under administration of $25.37 billion at the end of Q1 2022, up 5.0% from the end of Q4 2021 and 11.4% from the end of Q1 2021.

Funding: Deposits through our Oaken channel of $4.53 billion make up 31.5% of total deposits

• Total deposits of $14.39 billion at the end of Q1 2022, compared with $14.01 billion at the end of Q4 2021 and $13.77 billion at the end of Q1 2021.
• Total Oaken deposits of $4.53 billion at the end of Q1 2022, an increase of 3.3% from the end of Q4 2021 and 11.5% from the end of Q1 2021.
• Oaken’s share of total deposits was 31.5% at the end of Q1 2022, compared with 31.3% at the end of Q4 2021 and 29.5% at the end of Q1 2021.

Credit Quality: Reversal of credit provisions of $0.1 million compared to $12.1 million in Q1 2021

• Reversal of provision for credit losses (“PCL”) of $0.1 million in Q1 2022, compared with a provision expense of $1.0 million in Q4 2021 and a reversal of provision for credit losses of $12.1 million in Q1 2021.
• Allowance for credit losses of 0.18% of gross loans at the end of Q1 2022, compared with 0.20% at the end of Q4 2021 and 0.34% at the end of Q1 2021.
• Net write-offs as a percentage of gross loans were 0.01% in Q1 2022, compared to less than one basis point in Q4 2021 and 0.01% in Q1 2021.
• Net non-performing loans (represented by Stage 3 loans under IFRS 9) as a percentage of gross loans at 0.11% at the end of Q1 2022, compared with 0.13% at the end of Q4 2021 and 0.38% at the end of Q1 2021. 

Outlook

“We have actively managed down our CET1 capital since the beginning of the year through a combination of asset growth, dividend payment and strategic share repurchases,” affirmed Mr. Bissada. “We are on track to achieve our near-term target capital range of 14 to 15% CET1.”

First Quarter 2022 Results Conference Call and Webcast

The conference call and webcast will take place on Wednesday, May 4, 2022, at 8:00 a.m. ET. Participants may register in advance by visiting this link. The call will also be accessible in listen-only mode on Home Capital’s website at www.homecapital.com in the Investor Relations section of the website. The archived audio webcast will be available for 90 days on Home Capital’s website at www.homecapital.com.

Financial Highlights
	For the three months ended
(000s, except Percentage and Per Share Amounts)	March 31			December 31			March 31
		2022			2021			2021
INCOME STATEMENT HIGHLIGHTS1
Net Interest Income	$	112,974		$	120,996		$	125,936
Net Interest Margin		2.18%			2.46%			2.61%
Efficiency Ratio		51.7%			45.9%			45.9%
Provision as a Percentage of Gross Loans (annualized)		0.00%			0.02%			(0.28)%
Net Write-Offs as a Percentage of Gross Loans (annualized)		0.01%			0.00%			0.01%
Net Income	$	44,718		$	52,664		$	64,503
Diluted Earnings per Share	$	1.02		$	1.04		$	1.24
Return on Shareholders’ Equity (annualized)		11.3%			12.4%			15.2%
ORIGINATIONS1
Total Mortgage Originations	$	2,760,819		$	2,722,079		$	1,600,418
Single-Family Residential Mortgage Originations		2,297,895			2,273,322			1,327,988
								As at
	March 31				December 31			March 31
		2022			2021			2021
BALANCE SHEET HIGHLIGHTS1
Total Assets	$	21,163,844		$	20,146,954		$	18,952,048
Total Assets Under Administration2		27,038,525			25,802,433			24,447,737
Total Loan Portfolio3		19,466,546			18,428,802			17,275,610
Total Loans Under Administration2		25,372,967			24,154,206			22,772,565
Deposits		14,393,077			14,013,372			13,769,162
FINANCIAL STRENGTH1
Capital Measures4
Common Equity Tier 1 Capital Ratio		17.58%			18.43%			21.01%
Leverage Ratio		6.90%			7.19%			8.28%
Credit Quality
Net Non-Performing Loans as a Percentage of Gross Loans		0.11%			0.13%			0.38%
NPL Allowance as a Percentage of Gross NPL5		20.9%			22.8%			16.5%
Share Information
Book Value per Common Share	$	37.45		$	36.55		$	33.85
Dividend paid during the period ended	$	0.15		$	–		$	–
Number of Common Shares Outstanding		42,601			42,986			50,842

¹ Please see the Glossary in the Company’s 2022 First Quarter Report for additional information on various measures presented in this table.

² Total assets and loans under administration include both on- and off-balance sheet amounts. Total on-balance sheet loans include loans held for sale and are presented gross of allowance for credit losses.

³ Total loan portfolio is presented gross of allowance for credit losses and excludes loans held for sale.

⁴ These figures relate to the Company’s operating subsidiary, Home Trust Company.

⁵ NPL indicates non-performing loans, defined as Stage 3 loans under IFRS 9 Financial Instruments. See definition of impaired or non-performing loans under Glossary in the Company’s 2022 First Quarter Report.

Caution Regarding Forward-Looking Statements

From time to time, Home Capital Group Inc. makes written and verbal forward-looking statements. These are included in the Annual Report, periodic reports to shareholders, regulatory filings, press releases, Company presentations and other Company communications. Forward-looking statements are made in connection with business objectives and targets, Company strategies, operations, anticipated financial results and the outlook for the Company, its industry, and the Canadian economy. These statements regarding expected future performance are “financial outlooks” within the meaning of National Instrument 51-102. Please see the risk factors, which are set forth in detail in the Risk Management section of the 2022 First Quarter Report, as well as the Company’s other publicly filed information, which is available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, for the material factors that could cause the Company’s actual results to differ materially from these statements. These risk factors are material risk factors a reader should consider, and include credit risk, liquidity and funding risk, structural interest rate risk, operational risk, investment risk, strategic risk, reputational risk, compliance risk and capital adequacy risk along with additional risk factors that may affect future results. Forward-looking statements can be found in the Report to the Shareholders and the Outlook section of the 2022 First Quarter Report. Forward-looking statements are typically identified by words such as “will,” “believe,” “expect,” “anticipate,” “intend,” “should,” “estimate,” “plan,” “forecast,” “may,” and “could” or other similar expressions.

By their very nature, these statements require the Company to make assumptions and are subject to inherent risks and uncertainty, general and specific, which may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the impacts of the COVID-19 pandemic and government responses to it, global capital market activity, changes in government monetary and economic policies, changes in interest rates, inflation levels and general economic conditions, legislative and regulatory developments, climate change, competition and technological change. The preceding list is not exhaustive of possible factors.

These and other factors should be considered carefully and readers are cautioned not to place undue reliance on these forward-looking statements. The Company presents forward-looking statements to assist shareholders in understanding the Company’s assumptions and expectations about the future that are relevant in management’s setting of performance goals, strategic priorities and outlook. The Company presents its outlook to assist shareholders in understanding management’s expectations on how the future will impact the financial performance of the Company. These forward-looking statements may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statements, whether written or verbal, that may be made from time to time by it or on its behalf, except as required by securities laws.

Assumptions about the performance of the Canadian economy in 2022 and its effect on Home Capital’s business are material factors the Company considers when setting strategic priorities and outlook. In determining expectations for economic growth, both broadly and in the financial services sector, the Company primarily considers historical and forecasted economic data provided by the Canadian government and its agencies and other third-party providers. In setting and reviewing its strategic priorities and outlook for 2022, management makes certain assumptions about the Canadian economy, employment conditions, interest rates, levels of housing activity, household debt service levels and the Company’s continued access to broker mortgage and deposit markets. These assumptions are discussed in greater detail in the 2022 First Quarter Report.

The global pandemic related to the outbreak of COVID-19 significantly impacts these assumptions. Updated forward-looking macroeconomic assumptions have been incorporated into the models used in the Company’s expected credit loss estimation process. Please see Note 5(C) to the unaudited interim consolidated financial statements included in the Company’s 2022 First Quarter Report for more information on these assumptions. The full extent of the impact that COVID-19, including government and/or regulatory responses to the outbreak, will have on the Canadian economy and the Company’s business remains uncertain and difficult to predict. Please see the Outlook and the Risk Management sections in the Management’s Discussion and Analysis included in the 2022 First Quarter Report for more information.

Regulatory Filings

The Company’s continuous disclosure materials, including interim filings, annual Management’s Discussion and Analysis and audited consolidated financial statements, Annual Information Form, Notice of Annual Meeting of Shareholders, and Proxy Circular are available on the Company’s website at www.homecapital.com and on the Canadian Securities Administrators’ website at www.sedar.com.

About Home Capital

Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank, offer deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, and Quebec.

Contacts

Jill MacRae

VP, Investor Relations and ESG

(416) 933-4991

investor.relations@hometrust.ca

CHICAGO–(BUSINESS WIRE)–The AZEK Company Inc. (NYSE: AZEK) (“AZEK” or the “Company”), the industry-leading manufacturer of beautiful, low-maintenance and environmentally sustainable outdoor living products, including TimberTech^® decking, Versatex^® and AZEK Trim^®, and StruXure™ pergolas, today announced the entry into a new first lien term loan credit agreement (the “New Credit Agreement”) with Bank of America, N.A., as administrative agent and collateral agent, and the lenders and financial institutions party thereto. The New Credit Agreement provided the Company with a $600 million first lien term loan facility (the “Credit Facility”), the proceeds of which were applied, among other uses, to prepay the obligations in full under the Company’s existing first lien term loan credit agreement, which was due in May 2024 (the “Existing Credit Agreement”). In connection with the entry into the New Credit Agreement, the Existing Credit Agreement was terminated.

The Credit Facility will mature in April 2029, subject to acceleration or prepayment. Commencing on December 31, 2022, the Credit Facility will amortize in equal quarterly installments of 0.25% of the aggregate principal amount of the loans outstanding, subject to reduction for certain prepayments.

The interest rate applicable to loans under the Credit Facility will be based on Term SOFR for the applicable interest period at AZEK’s option, plus an applicable margin of 2.50%.

“We are pleased to announce the closing of this refinancing which provides additional liquidity, strengthens AZEK’s financial position and improves our capital structure to support our future growth ambitions,” said AZEK CFO Peter Clifford. “We believe the successful completion of this transaction on favorable terms reflects the recognition by the credit market of the significant achievements we have made in executing our growth strategy as well as our continued maturation as a public company.”

In connection with the closing of the Credit Facility, the Company also received a corporate credit rating of BB- from S&P Global Ratings, which is an upgrade from its prior rating.

About The AZEK® Company

The AZEK Company Inc. (NYSE: AZEK) is the industry-leading designer and manufacturer of beautiful, low maintenance and environmentally sustainable outdoor living products, including TimberTech^® decking and Versatex^® AZEK Trim^® and StruXure™ pergolas. Consistently recognized as the market leader in innovation, quality and aesthetics, products across AZEK’s portfolio are made from up to 100% recycled material and primarily replace wood on the outside of homes, providing a long-lasting, eco-friendly, and stylish solution to consumers. Leveraging the talents of its approximately 2,000 employees and the strength of relationships across its value chain, The AZEK Company is committed to accelerating the use of recycled material in the manufacturing of its innovative products, keeping millions of pounds of waste out of landfills each year, and revolutionizing the industry to create a more sustainable future. Headquartered in Chicago, Illinois, the company operates manufacturing facilities in Ohio, Pennsylvania, Georgia, and Minnesota, and recently announced a new facility will open in Boise, Idaho. For additional information, please visit azekco.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains or refers to certain forward-looking statements within the meaning of the federal securities laws and subject to the “safe harbor” protections thereunder. Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words “believe,” “hope,” “expect,” “intend,” “will,” “target,” “anticipate,” “goal” and similar expressions. Projected financial information and performance are forward-looking statements. Other forward-looking statements may include, without limitation, statements with respect to our future financial performance, liquidity and our ability to service or repay our existing indebtedness and to secure additional financing in the future. The Company bases its forward-looking statements on information available to it on the date of this release and undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events, or otherwise, except as may otherwise be required by law. Actual future events could also differ materially due to numerous factors that involve substantial known and unknown risks and uncertainties including, among other things, the risks and uncertainties set forth under “Risk Factors” and elsewhere in the Company’s reports on Form 10-K and Form 10-Q and the other risks and uncertainties discussed in any subsequent reports that the Company files with the Securities and Exchange Commission from time to time. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Given these uncertainties, investors are cautioned not to place undue reliance on our forward-looking statements.

Contacts

Investor Contact:
Eric Robinson

312-809-1093

ir@azekco.com

Media Contact:
Rachel Mihulka

402-980-9603

AZEKquestions@zenogroup.com