Mcan Mortgage Corp Stock

Good afternoon, ladies and gentlemen. Welcome to the Annual and Special Meeting of Shareholders of MCAN Mortgage Corporation doing business as MCAN Financial Group. My name is Gaelen Morphet, and I am Chair of the Board of Directors of MCAN.

Once again, this year's meeting is being held in person and is also accessible online via live video webcast for those of you who couldn't be here in person. I'm happy to welcome our team members, shareholders and directors joining us in person and virtually from across the country.

Joining me at the meeting in person today are Derek Sutherland, our President and Chief Executive Officer; Santokh Birk, Senior Vice President and Chief Financial Officer; and Sylvia Pinto, our Corporate Secretary.

As in past years, we expect that the vast majority of votes have been cast in advance of the meeting by proxy through the various available channels. That said, the right to vote and participate in the meeting is very important, and we are fully supportive of the participation. Registered shareholders and duly appointed proxy holders who have not voted or wish to change their vote may vote in person by paper ballot or online by clicking on the voting icon on the virtual meeting platform. Once discussion on all business matters has concluded, those participating will be provided further time to enter their votes before I declare voting closed on all resolutions.

Registered shareholders, beneficial shareholders and guests can submit questions any time online by clicking on the question icon. For those attending in person, we will be opening the floor for questions at the end of the meeting. A recording of the meeting will be available on MCAN's website following the meeting.

Prior to calling the meeting to order, I would like to acknowledge Phil Gillin. Phil is our Board member who will not be standing for reelection at this meeting. Phil has served on the Board since May 2020, bringing valuable expertise in commercial real estate, investment management and capital markets. He was appointed Chair of the Risk Management and Compliance Committee in May 2021 and has served in that role with diligence and strong leadership, helping to guide the Board's oversight of risk and compliance matters. On behalf of the Board and management, we would like to sincerely thank Phil for his exemplary contributions, thoughtful counsel and dedicated service throughout this time with MCAN. Thank you very much, Phil. We appreciate it.

Before beginning the formal portion of our meeting, I would like to draw your attention to the advisory posted on the screen regarding forward-looking information that may be discussed at today's meeting. I now call the meeting to order. I will ask as Chair of the meeting -- I will stand as Chair of the meeting; and Sylvia Pinto, our Corporate Secretary, will act as the Secretary of the meeting. I hereby appoint Pina Pacifico of Computershare Trust Company of Canada, our transfer agent, to act as scrutineer of the meeting.

This year, the company used notice and access for both its registered and nonregistered shareholders, which allows the company to furnish proxy materials electronically to shareholders instead of mailing copies of the material. The Secretary has advised me that a package containing the notice and access notice, together with the relevant voting document, was mailed to each intermediary and registered shareholder as of March 13, 2026, the record date for this meeting, as well as to directors and auditors advising of the notice of the meeting and that the information circular are available online.

The Secretary has provided proof of mailing of the notice and access package to me, and I direct that a copy of such notice with proof of mailing be attached to the minutes of the meeting as a schedule. The scrutineer has confirmed that a quorum is present, and I direct that the scrutineer's final report be kept with the minutes of this meeting. As due notice has been given and a quorum is present, I declare that this meeting has been fully convened and constituted to transact the business for which it has been called.

Please note that after the formal business is concluded and the meeting is terminated, our President and CEO will address shareholders, after which there will be a question period. If participating online, your questions should be submitted through your phone, tablet or computer. There are 4 matters set out in the notice of this meeting to be voted on by shareholders. If you are a registered shareholder or duly appointed proxy holder, and if you have not already done so prior to today, you will be asked to cast your vote at the appropriate time.

We are conducting voting in person and online today. For those present in person, paper ballots will have been distributed to you by the scrutineer at the registration desk. If you did not receive any ballots and would like to vote today, please raise your hand now and the scrutineer will distribute the ballots to you. When voting each ballot, please indicate your vote by marking an X in the appropriate space and signing and printing your name clearly where indicated.

If you have already voted by proxy and do not wish to change your vote, you do not need to complete a ballot. Remember, you're not entitled to vote by ballot if you've already completed and signed a proxy form giving someone else the power to vote your shares unless you have properly revoked your proxy. If you own shares and your shares are registered in the name of a nominee, you are also not entitled to vote by ballot unless your nominee has completed and signed a proxy expressly giving you the power to vote your shares.

For those persons attending today's meeting online, you will be asked to cast your vote at the appropriate time by clicking on the voting icon on your phone, tablet or computer. A user guide with further details was distributed to shareholders with the notice and access package and is available online at MCAN's website.

Each registered shareholder or duly appointed proxy holder may vote on all shares at this meeting, and in particular, you'll be asked to vote on the first matter, which is a special resolution confirming an amendment to Section 3.01 by-law number 12 by selecting for or against.

Matter number two, the election of directors by selecting for or withhold for all director nominees, distributing your votes equally among them or selecting the specific for and withhold votes you wish to allocate to each director nominee.

Matter three, the appointment of an auditor by selecting for or withhold. And finally, an advisory resolution accepting the Board's approach to executive compensation by selecting for or against.

If you have submitted your vote prior to this meeting, you should not vote on any matters at this meeting unless you wish to change your vote. Preliminary results will be announced later in the meeting after all matters have been voted on.

The first step in today's meeting is the receipt of the audited consolidated financial statements for the financial year ended December 31, 2025, together with the auditor's report therein as included in the 2025 annual report. A copy of the annual report has been made available to shareholders in either hard copy or electronically and a copy of the 2025 annual report is also available on our website. I now place before the meeting the consolidated financial statements and report of the auditors therein for the year ended December 31, 2025.

The next item of business of the meeting is to consider and if deemed advisable, approve a special resolution confirming an amendment to Section 3.01 of by-law 12 of the company. Where cumulative voting applies under the Trust and Loans Act or the by-laws of the company, the act also requires that the number of directors be fixed by by-law.

The company's by-laws currently fix the number of directors at 8. On February 23, 2026, the Board approved an amendment to 3.01 of by-law number 12, fixing the number of directors at 9. The full text of the amendment to the by-law number 12 is attached as Schedule A to the management information circular. Shareholders are asked to pass a special resolution confirming this amendment. The full text of this special resolution is set out on Page 8 of the management information circular. The special resolution must be approved by 2/3 of the votes cast.

I move that this special resolution be approved.

Thank you, Aaron. May I have a seconder?

I so move.

Thank you, Michelle. We will now pause for 30 seconds to allow shareholders to vote on the matter. Please hold your paper ballots until the end of the meeting, at which time the scrutineer will come to collect all ballots at once. Preliminary results will be announced later in the meeting after all the matters have been voted on. I'll just pause for a few minutes.

[Voting]

The next item of business is the election of directors. In accordance with MCAN's by-laws as there were no further nominations received prior to MCAN's advance notice provisions for nomination of directors, the Board has determined that 9 directors are to be elected at this meeting. I would ask that the nominees as directors who are present today, please stand as their names are called.

In addition to Derek Sutherland and myself, the other nominees for election as directors of the company are: Bonnie Agostinho, Brian Chu, John Coke, Glenn Dore, Olga Giovanniello, Karen Martin and Emily Randle. Thank you. If elected, the nominees will hold office until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed, subject to the Trust and Loan Companies Act and the company's by-laws.

Voting will occur by way of cumulative voting, which entitles each shareholder to cast votes equal to the number of shares held by that shareholder times 9. Each shareholder may cast all their votes in favor of one nominee or distribute them among the nominees in any manner.

For example, a shareholder owning 100 shares can cast 900 shares in favor of 1 nominee or distribute 900 votes equally in favor of all nominees or distribute the votes in any other manner among the nominees as long as the total number of votes cast does not exceed 900. May I have a motion that the 9 persons nominated be elected directors of MCAN Mortgage Corporation until the close of the next Annual Meeting of Shareholders or until their successors are elected or appointed.

I so move.

Thank you. Can I have a seconder?

I second the motion.

Thank you, Susan. We would now pause for 30 seconds to allow shareholders to vote on the matter. Please hold your paper ballots until the end of the meeting, at which time the scrutineer will come by to collect all ballots at once. Preliminary results will be announced later in the meeting after all the matters have been voted on.

[Voting]

The next item of business is the appointment of auditors for the current financial year. The Board of Directors on the recommendation of the Audit Committee proposed that Ernst & Young, chartered accountants, be reappointed as the auditors of the company until the close of the next Annual Meeting of Shareholders or until their successors are duly appointed. May I have a motion on this, please?

I so move.

Thank you. Can I have a seconder, please?

I second the motion.

Thanks, Aaron. We will now pause for 30 seconds to allow shareholders to vote on the matter.

[Voting]

The next item of business to consider and if deemed advisable, is approving an advisory resolution on the Board's approach to executive compensation. As described in the management information circular, the Board believes that shareholders should have the opportunity to fully understand the objectives and principles that the Board has used in approach to executive compensation. Shareholders are asked to vote for or against the Board's approach to executive compensation and the full text of the advisory resolution is set out on Page 12 of the management information circular. Adoption of the advisory resolution will require that it be passed by a majority of the votes cast. As this is an advisory resolution, the results will not be binding on the company. However, the Board will take the results of the vote into account as appropriate when considering future executive compensation policies and programs. May I have a motion that this resolution be approved?

I so move.

Thank you. And a seconder?

I second the motion.

Thank you. We will now pause for 30 seconds to allow shareholders to vote on the matter.

[Voting]

For those of you who have not voted on all the resolutions, please do so now as I will shortly ask the scrutineers to collect the paper ballots and close the online polls. Can the scrutineer now collect the paper ballots and close the online polls? The online polls on all matters are now closed.

The scrutineer has provided a preliminary report based on proxies received prior to the meeting and the preliminary results are as follows: The special resolution confirming the amendment to Section 3.01 of by-law 12 to increase the size of the Board from 8 directors to 9 directors has passed with 99.23% of the votes in favor of the resolution.

Each of the 9 nominees have been elected as Director of MCAN Corporation with at least 99.08% of the votes in favor of their election. Ernst & Young has been reappointed auditor of MCAN Mortgage Corporation with 99.66% of the votes in favor of their appointment. And finally, the advisory resolution on the Board's approach to executive compensation has passed with 98.67% of the votes in favor of the resolution.

I note that the company will report the detailed final voting results once the tabulation is complete after the meeting, including those votes submitted in person by paper ballot as well as those submitted online. I adopt the preliminary report of the scrutineer and declare the 9 director nominees duly elected directors of MCAN Mortgage Corporation and each of the other matters of the business passed. I direct that the scrutineer's report be included with the minutes of the meeting.

Ladies and gentlemen, your duly elected directors of MCAN Mortgage Corporation are: Bonnie Agostinho, Brian Chu, John Coke, Glenn Dore, Olga Giovanniello, Karen Martin, Gaelen Morphet, Emily Randle and Derek Sutherland.

As there is no other business that may be properly brought before the meeting, this concludes the formal business of the meeting. Thank you all for participating. May I please have a motion that this meeting be concluded.

I so move.

Seconder, please.

I second the motion.

Thank you. I declare the formal business of the 2026 Annual and Special Meeting of Shareholders at an end. I would now like to ask Derek Sutherland, MCAN's President and Chief Executive Officer; and Santokh Birk, MCAN's Senior Vice President and Chief Financial Officer, to report on MCAN's 2025 year and 2026 outlook. Derek will then report on the company's business operations.

If you are participating online and have any questions, you may submit them by clicking on the question icon at any time. Please include your e-mail address so we can contact you should we not get your question at the meeting. Peter Ryan will then read aloud the questions. For those shareholders present in person, we will open the floor to questions following management's presentation. Over to you, Derek.

Good afternoon, everyone. Thank you, Gaelen. I'm pleased to welcome all of our shareholders, Board members, team members, partners and guests to our AGM. Thank you for attending, whether you are with us in person or online. I would like to also reiterate what Gaelen's comments were on Phil Gillin and thank him for his dedicated service to governance at MCAN over his term.

Let's talk business. What do we do? At MCAN, we like to think we are contributing to growth in Canadian communities through reimagining the opportunities within them. We achieved this in 4 ways. We finance residential construction loans for experienced borrowers building homes for Canadians in our MCAN Capital business.

At MCAN Home, we've seen strong growth, which is powered by culture, partnership and purpose. Our award-winning residential mortgage business is expanding access to homeownership for Canadians, strengthening broker relationships and creating durable value for our shareholders.

Our MCAN Wealth business offers deposits sourced through digital direct-to-consumer and broker channels, providing savings opportunities at competitive rates for Canadians.

Finally, we have a truly important investment in MCAP, Canada's largest and preeminent independent mortgage finance company, which provides financial benefits to our shareholders through significant income contributions and as a strategic business partner for MCAN. All that to say that when you invest in MCAN, you are participating in various channels and forms of the Canadian real estate market, which may not otherwise be available to individuals.

Our vision as Canada's leading alternative financial services company is to strive to redefine possibility through agile solutions that adapt to the diverse needs to our clients. We achieve this through our mission, balancing risk and ingenuity through strong partnerships and principled stewardship and delivering value through residential real estate that inspires confidence, drives returns and builds trust within our communities.

We provide a unique value proposition to our shareholders through a structure that is specific to our organization. MCAN's structure as a mortgage investment corporation, or MIC, and an OSFI-regulated institution provides us with a unique advantage compared to other financial services companies.

Being a MIC means that we are fully dedicated and continuously present in the residential mortgage business. And relative to our MIC peers, we have a lower risk profile with the ability to access low-cost term deposit funding. We differentiate ourselves from our OSFI-regulated peers with our strategic focus on residential construction and residential lending as well as our strategic partnership with an investment in MCAP. Our structure allows us to be nimble and quickly react to market opportunities.

Together with our highly experienced management team, we're able to invest our capital using our proven expertise to provide consistent and attractive returns in the form of dividends and share price growth to our shareholders. This discipline is embedded in everything we do based on over 3 decades of business.

Now it would be a great time to review what MCAN has accomplished over the past 5 years, and then we can discuss the business results. First and foremost, we have achieved consistently strong earnings, business growth and total returns for our shareholders. This was achieved by executing strategies that support long-term sustainability and high-quality earnings.

In the past 5 years, we've increased our mortgage portfolio by 149% to nearly $6 billion. We increased our net income by 75% to $75 million. We increased our regular cash dividend by 21% to $1.64 per share and delivered average ROE of 14%. Since 2020, our market cap increased by 133% to close 2025 at $908 million, and it reached over $1 billion at the end of February and continues this week to hit over $1 billion, almost an all-time high today.

We have continued to strengthen our key strategic partnerships, which are fundamental to our business. These partnerships have been integral to the platform we have built to provide the performance and growth over the past 5 years. We have expanded our capital, liquidity and funding management programs over the past 5 years. This included successful capital raises through the dividend reinvestment program and at-the-market program, raising over $30 million in capital last year alone. We expanded our hedging program to better manage interest rate risk, grew our digital direct-to-consumer term deposit channel and launched our uninsured residential mortgage securitization program with a major Canadian bank.

All of these initiatives have moved us forward in strengthening our capital, liquidity and funding position and our relationships with strategic partners. We continue to build and enhance our internal infrastructure of systems, capabilities and policies across all our functions, all our technology and all business processes. The company is investing in our loan origination system to build best practice efficiency into our loan origination and loan management process, allowing us to serve our broker partners more effectively. These all support efficient operations and ensure effective risk management.

Lastly, as measured by multiple factors such as engagement scores, low turnover and team spirit, we have built a tremendous culture of teamwork, respect, diversity and inclusion. We have been recognized as a great place to work over the last 5 years, and we were once again recognized as one of Canada's most admired corporate cultures in 2025. This year, we also made a series of strategic leadership appointments and expanded mandates across key functions. These changes strengthen our capabilities in finance, construction financing, risk management and people strategy, ensuring we are well positioned to execute on our long-term vision and deliver enhanced value for shareholders.

Starting with MCAN Home, we will now delve into more details about our businesses. MCAN Home is an award-winning business consistently recognized by the mortgage community for our service, innovation and excellence. Through MCAN Home, we provide mortgage solutions to a variety of borrowers. We have a full suite of products from purchases to refinances for both insured and uninsured mortgages, and we work closely with our broker partners to find the best solutions for their clients.

The geographical focus of our portfolio is the major urban areas of Ontario, Alberta and BC. We are a full-service provider with in-house origination, boots on the ground in our core markets and deep relationships with third-party mortgage brokers.

MCAN Home posted strong results in 2025, with record originations and loan growth in spite of a very difficult and uncertain economic climate and complicated interest rate environment. Total new mortgage originations were $1.4 billion, a significant 27% increase over 2024. Insured originations totaled $860 million, 35% higher than 2024. Uninsured originations totaled $573 million, 33% higher than last year, and uninsured renewals were $490 million. All of this helped us achieve a record closing balance of our uninsured mortgage portfolio of $1.3 billion despite the challenging environment for residential products.

For 2026, we expect that borrowers will continue to be cautious amidst the ongoing geopolitical tensions impacting meaningful improvements in the housing market. The interest rate environment continues to remain complicated. Stable rates are expected to keep inflation near target while supporting a structurally adjusting economy. However, ongoing risks related to U.S. trade policy, uncertainty and geopolitical conflict, slowing population growth and weak business investment could result in changes that further impact housing affordability and supply.

The economy overall is showing signs of resilience with modest GDP growth while facing these headwinds in immigration and an aging population. We do expect strong renewal activity again this year on the expectation of the trend for borrowers to stay with their existing lenders. We continue to focus on proactively protecting our credit quality and net interest margins on our residential mortgages with prudent credit underwriting to ensure that we are adequately compensated for the level of risk we may take.

Our strategy for 2026 includes continuing to enhance our product offerings to better meet our clients' needs. We plan to continue to strengthen our partnerships with brokers by improving our service levels. We will further grow our residential mortgage originations as we scale our mortgage securitization programs. In 2025, we securitized $340 million under our new uninsured program and $1.4 billion in our insured securitization programs. This is an integral part of our funding diversification and capital optimization strategy.

We will expand to other urban markets within Canada, focusing on Alberta and BC and monitor all updates to the macroeconomic and regulatory environment that could impact our business or that could create opportunities in line with our risk appetite and further diversify our sources of income.

Lastly, our MCAN Home business continues on its strategy of operational transformation. We remain dedicated to continuously improving our service for our borrowers and the broker community. And as such, we will continue to invest in our current and new systems to further enhance our service experience. Already this year, we are nearing completion of the initial phase to modernize our underwriting platform, the core of our lending business. This improved underwriting platform is expected to contribute to significant efficiencies in our underwriting business and service to our broker partners.

Let's now shift to our MCAN Capital business. MCAN Capital is focused primarily on construction and commercial lending to experienced borrowers. We focus on investing in residential construction first mortgages supported by long-term housing demand within strong urban areas of Greater Vancouver, Calgary and Toronto. We maintain negligible loan exposure to commercial income properties backed by office and retail, which were negatively impacted by hybrid work, online shopping trends and more susceptible to interest rate fluctuations. 2025 was another strong year for MCAN Capital. The portfolio maintained an invested balance of $1.3 billion to end 2025 as a result of $631 million in fundings new, a significant accomplishment in this environment of slowdowns in housing starts and overall construction.

MCAN Capital's construction and commercial business contributed $105 million of interest income to MCAN's bottom line, up from $101 million last year, despite a reduced average yield on the residential construction portfolio of 8.21% versus 9.45% in 2024 as the bank rate decreased 275 basis points over the 2 years. This was mitigated by strong pricing discipline, portfolio mix and the execution of successful hedging strategies.

For 2026, we expect to see slower housing starts continue. The near-term continued economic and geopolitical uncertainty are significant contributors to this. However, we expect continued high demand for affordable housing, which is our main strategy. We still expect to benefit from opportunistic and quality deal flow as a result of our relationships with strategic partners who understand our risk return appetite. This has not changed in our over 3 decades of lending to developers. This depth of experience is highlighted by negligible loan losses that have averaged less than 5 basis points per year throughout our history.

Our strategy for 2026 will focus on growing our construction lending portfolio with a focus on balancing risk and return. Also, we are looking to diversify through managed investment in the commercial portfolio with opportunities that align with our risk and long-term growth profile. We will leverage our strategic partnerships that originate and provide loan servicing on our behalf. We will also do so by continuing to manage residential construction risk through prudent underwriting and post-funding monitoring of our portfolio of loans.

Our MCAN Wealth division focuses on term deposits, which is our main funding source. Our funding strategy since 1992 has been focused on leveraging term deposits eligible for CDIC insurance. Term deposits provide us with a reliable source of low-cost funding. We offer short- and long-term investment options for our customers. A positive and lower risk element for our business is the fact that our term deposits are nonredeemable.

Our MCAN Wealth digital direct-to-consumer channel provides an opportunity for clients to invest in our term deposits directly on our website. We expect this digital channel will provide a growing source of funding diversification going forward. 2025 was an active year in our wealth division. We raised over $1.6 billion of deposits during the year, 33% higher than 2024.

We have typically had a go-longer strategy for our deposit raising activities that has served us well over the years, and we continue to update this approach as markets change, and we raised this funding through 3 large bank boards and a network of over 40 independent deposit brokers.

For 2026, our outlook is dynamic. We believe there will continue to be an active market for deposits, but that there will be continued volatility in bond rates, which may impact market volumes. The market will also be impacted by depositors balancing their investment options in the current economic climate as they search for security and yield. Our MCAN Wealth team is well prepared for this.

In terms of strategy, we are focused in 2 main areas: continuing to increase brand awareness and the volume of deposits raised in our digital channel, both through marketing efforts and through product offerings; and second, by leveraging technology to grow our broker channels.

Finally, I want to highlight one of the key contributors to our history of success, our strategic partnership with and investment in MCAP. MCAP is Canada's largest and preeminent independent mortgage finance company. They serve many institutional investors and over 400,000 homeowners. We have prospered from our partnership with an investment in MCAP, and we expect MCAP to continue to contribute solid returns as an investment and as a partner.

Now I'd like to ask our CFO, Santokh Birk, to the podium where he will discuss our financial results.

Thanks, Derek. Good afternoon, everyone. It's an honor to work with Derek and the MCAN team. I believe we have a great team. We have great partners and a really great business. So I'm excited to share some of the successes and the growth we've experienced over the past year.

In 2025, we ended the year with steady results in a difficult macroeconomic and geopolitical environment. We delivered another solid net income of $75 million for the year. Our net income reflected double-digit growth in our assets. At the same time, we felt spread compression from a declining interest rate environment.

As Derek mentioned, a key strategic partner, [ MCAP ] delivered strong results for us. We also recorded higher provisions for credit losses as a result of uncertainties in the forecasted economic environment. Our total assets ended the year at $6.5 billion, representing a 21% increase from the prior year. This is ahead of our long-term annual growth target of 10%. We achieved balances in our residential mortgage business.

Our insured residential mortgage portfolio grew by 30% and our uninsured residential mortgages grew by 16%, while our construction and commercial balances grew by 9%. Overall, our total assets under management grew by 30%. These achievements took our average return on equity to 12% and allowed us to pay dividends of $1.64 per share, an increase of 5% from the previous year.

As mentioned, the economic uncertainties in 2025 resulted in a higher credit risk environment for the industry as a whole. However, MCAN has prudent underwriting, default management and asset recovery programs to mitigate this risk. As shown on the graph on the left, we recorded an elevated level of provisions for credit losses totaling $11 million in 2025, while our actual losses for credit were just under $1 million. This means that we have built an additional allowance for credit losses -- expected credit losses of $10 million on our balance sheet. This represents 0.82% of total mortgages compared to 0.53% at the end of the prior year, and we believe this is prudent given the uncertainties in the environment.

At the same time, looking at the graph on the right, our impaired loans have improved year-on-year. The decrease is mainly due to successful resolution of a number of our impaired construction loans. The total impaired mortgage ratio improved to 7 -- [ 0.7% ] compared to 1.25% in the prior year. We continue to focus on conservative underwriting with loans originated at prudent LTV ratios as well as our active management of impaired loans using our experience to resolve impairments as they arise.

MCAN has achieved a strong record of returns for our shareholders. We have been paying dividends for the past 33 years. We've achieved a compound annual growth rate of 4% over the last 5 years on our regular cash dividend.

And if you look at the chart on the right, you can see our total shareholder return compared to the TSX Composite Index. $100 invested in MCAN in 1992 would have generated or grown to $6,254 compared to $1,772 if invested in the index. This shows that MCAN is a sound investment, providing strong and sustainable returns for our shareholders.

Just a reminder that investors can participate in our dividend reinvestment program. Our DRIP program provides an opportunity to acquire our shares at a 2% discount and avoids transaction costs. Shareholders can register using forms available on Computershare.

We continue to focus on shareholder value and have implemented a number of actions to optimize our capital. These actions have allowed us to grow our assets by 21%, as I mentioned, and our AUM by 35%, while at the same time, our capital grew at a much lower rate of just 8%. This measured growth in capital was achieved through the ATM programs and the dividend reinvestment programs, which, as Derek mentioned, raised in total of $30 million in 2025. The at-the-market program will restart in May and contribute to new equity issuances for the remainder of the year. We will continue with these capital optimization strategies while maintaining healthy regulatory capital and income tax capital ratios.

From a liquidity and funding perspective, customer deposits are an important source of our business. As Derek mentioned, we raised over $1.6 billion in fixed rate term deposits in 2025. And our digital direct-to-consumer deposit channel has grown to $60 million and doubling in size from the previous year.

Beginning in 2025, we diversified our funding securitization of uninsured mortgages through a program sponsored by a major Canadian bank. We funded nearly $300 million through this program, and we expect to expand it in 2026. We continue to diversify and expand our funding base through third-party funding programs, CMHC programs as well as operating and warehouse facilities with banks.

In summary, the stability of our net income in light of headwinds from an uncertain tariff and geopolitical environment demonstrates that we have been resilient during uncertain economic conditions. This is a testament to the hard work of our team members and the service they provide to our brokers and clients.

I will now turn it back to Derek to discuss the key focus areas for the remainder of the year and going forward.

Thanks, Santokh. As Santokh mentioned, this year, our focus will be on growing and diversifying our product offering while unlocking capital on our balance sheet. Although we are in a volatile uncertain economy, we have been here before. We are able to rely on our proven and successful track record of credit underwriting discipline and default management when needed. We will continue to engage our clients and partners to understand the demand for products to meet the needs in the market. We plan to drive efficiency in our residential lending business with new systems and processes and work with our strategic partners to maximize our origination and securitization volumes.

Additionally, we will continue to diversify and increase our funding sources. This will include upsizing our warehouse capacity, partnering with other major banks to securitize our uninsured mortgages and establishing new third parties to acquire surplus mortgages to optimize returns for MCAN. And lastly, we will continue investing in technology and process efficiencies to drive returns from our dedicated team members. These will help to drive us forward in achieving our business goals for the year.

Thanks. I'll now pass it to Gaelen to open up the question-and-answer period.

So I would now like to open the floor to questions. If you have a question, please stand and state your name and whether you are a shareholder of the company or a proxy holder of a shareholder of the company. If you are participating online, you can use the question feature on the virtual meeting platform to ask the question. In this forum, we will answer questions that are in the interest of the broader shareholder base.

If you have a question about current performance and guidance, I would ask you to refer to our Q1 report published after market close today. Any appropriate questions asked will be answered. However, we may not have time to answer all the questions as part of the Q&A. If your question is not brought forward this afternoon, look for a response electronically from the office of the President and CEO or the CFO. There may be a bit of a lag between questions as they come into the online system. And with that, I'll open up the meeting to questions.

For the moment, we have no questions. We'll just give it a minute or so. Okay. There do not appear to be any questions. Ladies and gentlemen, that concludes the question-and-answer session. On behalf of MCAN Mortgage Corporation, I'd like to thank each and every one of you taking the time out today to come and meet with us, our MCAN family for its ongoing commitment and dedication. We've got a great bunch of executives and Board members. Thank you for your support. We look forward to seeing you next year.