It took two years, but Home Capital Group shares have regained all their lost ground since the Canadian alternative mortgage lender was saved in 2017 by Omaha investor Warren Buffett.

Home Capital has more than doubled this year to become the fourth-best-performing stock on Canada’s benchmark S&P/TSX Composite Index.

The stock surged as much as 14% Wednesday, the most in a year, after the Toronto-based lender reported third-quarter profit that beat the highest analyst estimate and said it plans to buy back shares worth $150 million in Canadian dollars ($113 million in U.S. dollars).

The run-up has taken the stock to levels last seen in July 2016, seven months before plunging after Ontario’s securities regulator accused the company of misleading shareholders over falsified mortgage applications.

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Alternative lenders including Home Capital and Equitable Group have seen their stocks surge this year as the pace of mortgage growth picked up, and home sales recovered in major cities including Toronto and Vancouver.

The “significant” share price appreciation of the alternative lenders is reflective of improving housing conditions, a benign credit environment and a robust mortgage growth outlook, CIBC analyst Marco Giurleo said in a Nov. 1 note to clients.

Home Capital’s stock went into a free-fall in the weeks after the regulator’s allegations, fueled by short-selling and a run on deposits.

Shares sunk to as low as $5.85 in Canadian dollars in May that year, before Buffett stepped in to buy a 38% stake in Home Capital and backstopped the lender with a credit line through Berkshire Hathaway Inc.

Berkshire has since cashed in as the stock has recovered.

Home Capital posted third-quarter profit of 67 cents a share, up 20% from a year ago.

Adjusted earnings were 72 cents a share, topping the 58-cents-a-share average estimate of analysts’ surveyed by Bloomberg.

The Omaha World-Herald is owned by Berkshire Hathaway.

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