MMA Capital Management Announces Full Year 2016 Financial Results

17 Mar 2017

MMA Capital Management, LLC reported financial results for the quarter and full year ended December 31, 2016, including common shareholders' equity of $125.3 million, or $20.75 per diluted common share.  On Thursday, March 16, 2017, the Company will file its Annual Report on Form 10-K for the year ended December 31, 2016(the "2016 Annual Report") with the Securities and Exchange Commission ("SEC") and will host an investor call at 8:30 a.m. ET.

Common shareholders' equity increased from $116.2 million at December 31, 2015 to $125.3 million at December 31, 2016.  This change was driven by $19.0 million in comprehensive income that is allocable to common shareholders and $9.8 million in other reductions in common shareholders' equity.  Diluted common shareholders' equity ("Book Value") per share increased to $20.75 at December 31, 2016, which represents an increase of 19.0%, or $3.32 per share of Book Value, compared to what we reported at December 31, 2015.  Most of this growth, or $2.98 per share, was attributable to comprehensive income from core operations and bond valuations while the balance, or $0.34 per share, was driven by purchases of common shares made by the Company at prices below our Book Value per share.

We recognized comprehensive income that is allocable to common shareholders of $19.0 million during 2016, consisting of $42.4 million of net income that is allocable to common shareholders and $23.4 million of other comprehensive loss that is allocable to common shareholders.  In comparison, we recognized $29.8 million of comprehensive income allocable to common shareholders during 2015, which consisted of $18.7 million of net income that is allocable to common shareholders and $11.1 million of other comprehensive income that is allocable to common shareholders.

Michael Falcone, MMA Capital's Chief Executive Officer stated, "By any measure, we concluded a strong year for the Company with solid performances from most of our business lines, though we also experienced some weakness during the fourth quarter.   The formation of our solar venture with TSSP in the fourth quarter was arguably the highlight for the year, showing the opportunity for growth in our origination platform across multiple product types within the solar lending space.  In addition, we realized strong returns on investment from both the GE affordable housing portfolio that we acquired last year and from strategic asset dispositions that created additional shareholder value. We also took additional steps in the fourth quarter to manage the Company's exposure to interest rate risk.  Finally, we also successfully executed our stock buyback plan in 2016, buying back 600,000 shares at a discount to Book Value per share, which resulted in immediate accretion for our shareholders.  

While we see opportunity ahead, particularly in our solar business, interest rate volatility and uncertainty regarding public policy, particularly tax reform, has our attention. We need to stay disciplined in our approach to the business in the year ahead. We are focused on asset protection as much as business development. Lastly, the Board has authorized us to amend our 2017 repurchase plan during the next open trading window to reflect an increase in the maximum price at which we may buy back stock to 115% of our most recently published Book Value per share, or $23.86."

MMA Capital Management |