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FIRST NATIONAL FINANCIAL CORPORATION FIRST NATIONAL FINANCIAL CORPORATION REPORTS 2021 SECOND QUARTER RESULTS Toronto , Ontario , July 27 , 2021 – First National Financial Corporation ( TSX : FN , TSX : FN.PR.A , TSX : FN.PR.B ) ( the " Company " or " FNFC " ) today announced its financial results for the three and six months ended June 30 , 2021. The Company derives virtually all of its earnings from its wholly owned subsidiary , First National Financial LP ( " FNFLP " or " First National " ) . Q2 Summary • • • Mortgages under administration ( " MUA " ) increased 6 % to a record $ 121.5 billion compared to $ 114.9 billion at June 30 , 2020 Revenue increased 6 % to $ 365.1 million from $ 344.6 million in Q2 2020 Pre - FMV Income ( 1 ) decreased 6 % to $ 71.2 million from $ 75.5 million in Q2 2020 due to the allocation of more origination volume to securitization Net income increased 3 % to $ 52.4 million ( $ 0.86 per common share ) compared to $ 50.8 million ( $ 0.84 per common share ) in Q2 2020 Management Commentary " Second quarter performance demonstrates the strength of our business model , exceptional market demand for mortgages in a robust real estate market and the extraordinary efforts of the First National team , " said Stephen Smith , Chairman and Chief Executive Officer . " These results , including a 56 % year - over - year increase in total mortgage production , were delivered even as our people remained in work - from - home mode because of the pandemic . We appreciate their sacrifices and commitment to the mortgage broker community , our investing partners and First National's growing customer base . On a healthy increase in revenues , and despite a decision to allocate more origination volume to securitization with a commensurate impact on short - term profitability , earnings were strong and supported the recent increase in our common share dividend during Q2 . With investments in higher MUA and our securitized portfolio , we are well positioned for the future . " In the second quarter of 2021 , new mortgage originations increased 56 % to $ 10.3 billion from $ 6.6 billion a year ago , while total mortgage renewals increased 8 % to $ 2.7 billion from $ 2.5 billion a year ago . " In all parts of the business , production was well ahead of Q2 last year , ” said Moray Tawse , Executive Vice President . “ Single - family mortgage originations were 71 % higher , a reflection of a strong market , First National's market share in the mortgage broker channel built on long - term relationships and efficient , effective execution . Commercial mortgage originations were 25 % above last year as we benefitted from institutional appetite for conventional term loans , which augmented the core insured mortgage products we provide as a CMHC - approved lender . We are very pleased with these results and grateful to the team for rising to the challenge for our customers . "