RFA mortgage originations rise 35% to $3.5 billion in first half
RFA’s mortgage originations rose 35% year over year to $3.5 billion in the first half of 2026, including approximately $2.1 billion in the second quarter.
The company reported quarterly revenue of $94.9 million, up 60.6% from $59.1 million a year earlier. Net income reached $7.2 million, compared with a $23.5-million loss, while adjusted net income attributable to common shareholders rose 11.4% to $12.2 million.
The consolidated year-over-year results are not directly comparable because RFA Financial was formed through the February combination of RFA Capital and Artis REIT. The prior-year financial statements largely reflect the former Artis real estate business.
The $3.5-billion origination total includes January activity recorded before the combination, allowing for a full six-month operating comparison with 2025.
Prime and alternative originations both rise
RFA Bank, which primarily originates alternative mortgages, increased second-quarter originations by 50% from a year earlier. Its prime lending business, RFA Mortgage Corporation, recorded a 27% increase.
The prime lender funded $573 million in June, up 43% from the same month last year and its highest monthly total to date.
“This milestone reflects the strong demand for our mortgage solutions, the scalability of our origination platform, and the exceptional efforts of our teams and broker partners across the country,” chief operating officer Melody Lo said during the company’s earnings call.
Most of RFA’s second-quarter volume was originated off balance sheet. That included $1.40 billion in prime insured residential mortgages sold to third-party institutions and $445 million in insured multi-unit mortgages originated through the Canada Mortgage Bond program.
The company’s on-balance-sheet originations consisted of uninsured single-family mortgages funded and retained by RFA Bank.
Credit losses remain low as provisions reach $12.1 million
Provisions for credit losses on mortgage and loan assets totalled $12.1 million, with nearly three-quarters of that amount related to purchased or originated credit-impaired loans.
Actual loan writeoffs totalled $500,000, equivalent to an annualized 0.08% of average mortgage and loan assets.
Borrowers in RFA’s on-balance-sheet alternative portfolio had an average credit score of 698 and an average loan-to-value ratio of 68.9%. The impaired portfolio had an updated weighted-average LTV of 90.7%.
Within the prime portfolio, the arrears rate edged up to 0.032% from 0.020% a year earlier but remained well below the 0.29% national average cited by the company. Prime borrowers had an average credit score above 790.
RFA plans to grow its lending assets to between $8 billion and $12 billion over the next three to five years, partly by selling commercial real estate and reinvesting the proceeds in its financial services businesses.
“Our strategy is to monetize real estate assets and redeploy that capital into higher-return opportunities, including lending growth, strategic acquisitions and share repurchases,” CEO Ben Rodney said.
RFA expects that strategy to produce annual net income growth of between 40% and 50% at RFA Bank over the medium term, along with a return on equity in the low- to mid-teens.
Second-quarter highlights
- Revenue: $94.9 million, up 60.6% year over year
- Net income: $7.2 million, compared with a $23.5-million loss
- Adjusted net income: $12.2 million, up 11.4%
- Mortgage originations: $2.1 billion, up from $1.6 billion
- Mortgages under administration: $23.27 billion
- Mortgage and loan assets: $2.53 billion
- Net interest income: $18.5 million
- Net interest margin: 2.7%, or 2.1% excluding non-cash purchase-price adjustments
- Provision for credit losses: $12.1 million
- Gross impaired loan ratio: 3.9%
- CET1 ratio: 17.46%
Visited 4 times, 4 visit(s) today
Ben Rodney earnings earnings calls quarterly earnings RFA rfa bank rfa Financial
Last modified: August 15, 2026
