Update on Alterna Bank's profitability and balance sheet | Alterna Bank | Discussion forum

Unlike directionless upstart competitor Motus Bank which does not post its annual audited financial statements, Alterna Bank does.

Here are the highlights for the fiscal year ended December 31, 2021:

Balance sheet:
Loans and mortgages: $885 million (2020: $757 million)
Investments (inclusive of property, plant, and equipment, required regulatory capital, and retained earnings): $125 million (2020: $160 million)
Deposits (demand, notice, and term): $789 million (2020: $829 million)
Mortgage securitization liabilities: $203 million (2020: $153 million)

Income statement:
Interest income: $20 million (2020: $23 million)
Investment income: $3.6 million (2020: $3 million)
Operating expenses: $6.1 million, of which $2.3 million is spent on salaries (2020: $6.2 million, of which $3.1 million was spent on salaries)

Note: Alterna Bank does not employ employees directly; the salaries and benefits line is part of an annual management service fee contract Alterna Bank pays to Alterna Savings and Credit Union Limited to provide things like customer service, human resources, finance and risk services

Net income/profit: $135 thousand (2020: $4.5 million)

There was what looks to have been a one-time $6 million loss on mortgage securitization. They've also been investing heavily in marketing and I.T. improvements, digital onboarding and online banking platforms. Next year (2022), I expect they'll return to a normal $5-7 million annual profit.

Cheers,
Doug