Loan Portfolio and Performance - As of March 31, 2025, the company's loan portfolio totaled $5.4 billion, with an average loan balance of approximately $393.0 thousand[155]. - The annualized yield on the total portfolio for the three months ended March 31, 2025, was 9.11%[155]. - The portfolio-related net interest margin for both the three months ended March 31, 2025, and 2024, was 3.35%[157]. - Total loans increased from $4.28 billion as of March 31, 2024, to $5.45 billion as of March 31, 2025, representing a growth of approximately 27.3%[175]. - The weighted average loan-to-value (LTV) ratio at origination was 66.1% as of March 31, 2025, slightly down from 67.6% as of March 31, 2024[175]. - Total loan originations for the three months ended March 31, 2025, increased to $640.4 million, up $76.9 million from the previous quarter and $261.8 million from the same quarter last year[179]. - The weighted average loan-to-value (LTV) ratio for total loan originations was 62.3% for the three months ended March 31, 2025[179]. - The company’s portfolio of loans held for investment includes a significant portion (95.4%) maturing in more than five years as of March 31, 2025[180]. Nonperforming Loans and Credit Losses - Nonperforming loans as a percentage of total loans were 10.8% as of March 31, 2025, compared to 10.1% as of March 31, 2024[175]. - Nonperforming loans amounted to $587.8 million, or 10.8% of the held for investment loan portfolio, compared to $539.4 million, or 10.7% as of December 31, 2024[190]. - The allowance for credit losses as of March 31, 2025, was $5.0 million, slightly higher than the expected range of 0.15% to 0.20% of loans held for investment[186]. - Charge-offs for the three months ended March 31, 2025, were $1.03 million, representing 1.38% of average nonperforming loans[182]. - The provision for credit losses for the three months ended March 31, 2025, was $1.87 million, compared to $22,000 for the previous quarter[188]. - Resolved $76.4 million of nonperforming assets for Q1 2025, down from $79.4 million in Q4 2024, but up from $54.5 million in Q1 2024[191]. - Recovery rate on resolved nonperforming assets was 103.1% in Q1 2025, compared to 109.2% in Q4 2024 and 102.5% in Q1 2024[192]. Financial Performance - For the three months ended March 31, 2025, the company generated pre-tax income of $26.9 million and net income of $18.6 million, compared to $23.2 million and $17.3 million for the same period in 2024[157]. - Net income attributable to Velocity Financial, Inc. for the three months ended March 31, 2025, was $18,887,000, compared to $17,251,000 in the same period in 2024, a growth of 9%[230]. - Total operating expenses for the three months ended March 31, 2025, were $42,190,000, an increase from $31,011,000 in the same period of 2024, indicating a 36% rise[230]. - The provision for credit losses for the three months ended March 31, 2025, was $1,872,000, compared to $1,002,000 for the same period in 2024, showing an increase of 87%[230]. - Interest income for the three months ended March 31, 2025, was $118,740,000, compared to $90,529,000 for the same period in 2024, representing a 31% increase[230]. - Net interest income after provision for credit losses for the three months ended March 31, 2025, was $35,638,000, up from $28,472,000 in the same period of 2024, reflecting a 25% increase[230]. - Total other operating income increased by $7.7 million to $33.4 million for the three months ended March 31, 2025, primarily driven by increased origination fee income and unrealized gains from fair value marks[238]. Debt and Financing - The company has executed 38 securitized debt transactions, resulting in over $8.3 billion in gross debt proceeds from May 2011 through March 2025[156]. - Total debt as of March 31, 2025, was $5,111,067,000, with a portfolio-related interest expense of $75,088,000[230]. - The outstanding bond balance increased to $4,429,240,000 as of March 31, 2025, compared to $4,269,008,000 on December 31, 2024, reflecting a growth of approximately 3.75%[271]. - A five-year $215.0 million syndicated corporate debt agreement was established on March 15, 2022, with a fixed interest rate of 7.125% maturing on March 15, 2027[275]. - A subsequent five-year $75.0 million syndicated corporate debt agreement was entered into on February 5, 2024, with an interest rate of 9.875% maturing on February 15, 2029[276]. Cash Flow and Liquidity - Total liquidity, including available warehouse capacity, was $313.8 million as of March 31, 2025, consisting of $238.2 million in available warehouse capacity and $51.7 million in cash[259]. - Cash provided by operating activities was $3.54 million for the three months ended March 31, 2025, down from $10.58 million in the previous year[260]. - Cash used in investing activities was $401.41 million for the three months ended March 31, 2025, compared to $212.44 million in the previous year[260]. - Cash provided by financing activities was $401.51 million for the three months ended March 31, 2025, up from $198.98 million in the previous year[260]. - As of March 31, 2025, borrowings under warehouse facilities amounted to $571.8 million, with $238.2 million of available capacity[265]. Forward-Looking Statements - The company acknowledges that forward-looking statements may not prove to be correct and actual results may differ materially from anticipated results[285]. - Forward-looking statements include expectations regarding loan originations and the resolution of non-performing loans[285]. - The company will not update any forward-looking statements after the date they are made, except as required by law[286]. - Important factors that could cause actual results to differ are detailed in the Quarterly Report and other filed documents[285].

Velocity Financial (VEL) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Good day, and welcome to Velocity Financial Inc. First Quarter twenty twenty five Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. Chris Altman, Treasurer. Please go ahead. Speaker1 Thanks, Kaylee. Hello, everyone, and Speaker2 thank you for joinin ...

1Q25 Results Presentation May 1, 2025 Forward-looking statements For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled ''Risk Factors" previously disclosed in our Form 10-Q filed with the SEC on May 14, 2020, as well as other cautionary statements we make in our current and periodic filings with the SEC. Such filings are available publicly on our Investor Relation ...

Company Insights - Velocity Financial, Inc. (VEL) is currently experiencing solid earnings estimate revisions, indicating a positive outlook from analysts [3][4] - Over the past 60 days, current quarter earnings estimates have increased from $0.47 per share to $0.52 per share, and current year estimates have risen from $1.97 per share to $2.19 per share [4] - Velocity Financial has achieved a Zacks Rank 1 (Strong Buy), highlighting its strong position in the market [4] Industry Overview - The Finance sector, where Velocity Financial operates, holds a Zacks Industry Rank of 38 out of 247 industries, suggesting it is well-positioned compared to other segments [2] - The positive trends in the Finance space indicate that a rising tide may benefit multiple companies within the industry [2]

Loan Originations and Portfolio Growth - The company originated 4,532 loans totaling $1.8 billion for investment in 2024, compared to 2,955 loans totaling $1.1 billion in 2023, indicating significant growth in loan originations[45]. - As of December 31, 2024, the company's portfolio of loans held for investment totaled $5.1 billion in unpaid principal balance, with 99.5% attributed to loan origination[45]. - The primary product, a 30-year fixed-rate amortizing term loan, comprised 85.2% of loan originations in 2024, reflecting strong market demand[42]. - The company funded 4,328 loans sourced by 1,415 different mortgage brokers in 2024, indicating a broad network and market penetration[41]. - The company aims to expand its network of mortgage brokers, with approximately 89% of loan originators having originated five or fewer loans, presenting growth opportunities[39]. - Total loans increased to $5,055,937 thousand as of December 31, 2024, up from $4,072,890 thousand in 2023, representing a growth of 24.2%[118]. - Loan originations for the year ended December 31, 2024, reached $1,817,600 thousand, an increase of $723,300 thousand or 64.7% from $1,094,300 thousand in 2023[122]. - Total loans held for investment, net, increased to $5,187,067 thousand in 2024 from $4,134,195 thousand in 2023[123]. Financial Performance - The company generated $159.6 million in portfolio-related net interest income for the year ended December 31, 2024, representing a net interest margin of 3.56%[34]. - For the year ended December 31, 2024, the yield on the total portfolio was 9.06% and the portfolio-related net interest margin was 3.56%[80]. - The company generated pre-tax income of $96.4 million and net income of $68.5 million for the year ended December 31, 2024, with a pre-tax return on average equity of 20.3%[80]. - Portfolio related net interest income increased by $35.3 million or 28.4% to $159.6 million for the year ended December 31, 2024, compared to $124.3 million for the year ended December 31, 2023[109]. - Net income for the year ended December 31, 2024 was $68,466 thousand, up from $52,293 thousand in 2023 and $32,519 thousand in 2022[159]. - Income before income taxes increased to $96,391 thousand for the year ended December 31, 2024, compared to $71,127 thousand in 2023 and $44,552 thousand in 2022[159]. Loan Quality and Credit Losses - The weighted average loan-to-value (LTV) ratio at origination for loans held for investment was 66.6%, providing a buffer against credit losses[47]. - Approximately 91.4% of loans held for investment were fully-amortizing over 30 years, which reduces the risk of default compared to balloon loans[46]. - Nonperforming loans as a percentage of total loans rose to 10.67% as of December 31, 2024, compared to 9.69% in 2023[118]. - The allowance for credit losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date[98]. - The allowance for credit losses decreased to $4,174 thousand as of December 31, 2024, from $4,769 thousand in 2023[128]. - Charge-offs for the year ended December 31, 2024, were $1,768 thousand, resulting in a charge-off rate of 0.55% of average nonperforming loans[127]. - The recovery rate on resolved nonperforming loans was 103.9% in 2024, compared to 102.3% in 2023 and 106.7% in 2022[137]. Operating Expenses and Income - Total operating expenses increased by 38.8%, or $39.0 million, to $139.6 million for the year ended December 31, 2024, from $100.6 million in 2023[195]. - Compensation and employee benefits rose to $69.6 million for the year ended December 31, 2024, from $48.3 million in 2023, primarily due to higher commissions[196]. - Income tax expense was $27.9 million for the year ended December 31, 2024, up from $18.8 million in 2023, with an effective tax rate of 29.0% compared to 25.2% in the prior year[202]. Securitization and Debt - The company has executed 37 securitizations of investor real estate loans, issuing $8.0 billion in principal amount of securities since 2011[30]. - In August 2023, the company completed its first securitization collateralized by a short-term loan product, issuing $81.6 million in securities[50]. - The company plans to finance its loan portfolio primarily through equity and financing arrangements, including warehouse lines and securitizations[53]. - Interest expenses related to corporate debt were $23.8 million, $16.6 million, and $29.5 million for the years ended December 31, 2024, 2023, and 2022, respectively[87]. - Total debt related to the portfolio increased to $4,076,596 thousand for the year ended December 31, 2024, compared to $3,341,411 thousand in 2023 and $2,750,822 thousand in 2022[155]. Market Conditions and Future Outlook - The investor real estate loan market is highly competitive, which could affect profitability and growth[111]. - Macroeconomic conditions, including interest rates and unemployment rates, may impact the investor real estate loan market[116]. - The company anticipates that future performance will depend on growing origination/acquisition volume, leveraging a large and fragmented core market[109].

We introduced Velocity Financial (NYSE: VEL ) here and provided an update here . The company produced another strong quarter, while shares are still stuck in the same trading range.He runs SHU Growth Portfolio where he offers wide coverage of several small companies with high growth possibilities. He has a buy and hold approach with tranche purchases of stocks of interest. The service features an illustrative portfolio to incorporate into your portfolio, buy alerts, weekend stock and market updates, and a c ...

Financial Performance - Net income for full year 2024 was $68.4 million, up 30.7% from $52.3 million in 2023, with diluted EPS increasing to $1.91 from $1.52[3] - Fourth quarter net income reached $20.6 million, an 18.6% increase from $17.4 million in Q4 2023, with core net income rising 34.6% to $21.8 million[4] - Net revenue for Q4 2024 was $71.2 million, an increase of 38.0% from $51.6 million in Q4 2023[22] - The company reported a net revenue of $236,029 thousand for the year ended December 31, 2024, compared to $171,746 thousand in 2023, an increase of 37.4%[62] - Core net income for FY 2024 reached $72.9 million, a 36.5% increase from $53.4 million in FY 2023[39] - Basic earnings per share for Q4 2024 was $0.62, compared to $0.53 in Q4 2023, indicating an increase of 17%[60] - Core diluted EPS for FY 2024 was $2.03, a 31.8% increase from $1.54 in FY 2023[39] Loan Production and Portfolio - Loan production for Q4 2024 was $563.5 million, a significant 60.0% increase from $352.1 million in Q4 2023, marking the second-highest quarterly volume in the company's history[16] - Loan production for FY 2024 totaled $1.84 billion, a 64.6% increase from $1.12 billion in FY 2023[36] - The total loan portfolio increased to $5.1 billion in UPB as of December 31, 2024, reflecting a 24.1% growth from $4.1 billion in 2023[12] - Average loans for FY 2024 were $4.49 billion, a 20.5% increase from $3.73 billion in FY 2023[36] - The total loans for the year ended December 31, 2024, were $4,488,301, with an interest income of $406,843, resulting in a yield of 9.06%, compared to $3,725,197 in loans and $310,775 in interest income for 2023, yielding 8.34%[65] Interest Income and Margin - Total net interest income for Q4 2024 was $38.8 million, a 29.9% increase from $29.9 million in Q4 2023[22] - Interest income for the year ended December 31, 2024, reached $406,843 thousand, a significant rise from $310,776 thousand in 2023, representing a growth of 30.8%[62] - The portfolio net interest margin (NIM) improved to 3.70% in Q4 2024, up from 3.52% in Q4 2023[9] - Portfolio net interest margin (NIM) for FY 2024 was 3.56%, up from 3.34% in FY 2023[39] - The net interest margin for the portfolio related to the total company was 3.20% in Q4 2024, up from 3.10% in Q4 2023[63] Nonperforming Loans and Resolutions - Nonperforming loans (NPL) totaled $539.4 million, representing 10.7% of loans held for investment, up from 9.7% in 2023[16] - Total gains on nonperforming loan (NPL) resolutions were $10.2 million, an 84.6% increase from $5.5 million in FY 2023[39] - NPL resolution totaled $79.4 million in UPB for Q4 2024, realizing 107.0% of UPB resolved compared to 102.2% in Q4 2023[32] - Nonperforming loans as a percentage of total held-for-investment loans were 10.7% as of December 31, 2024, compared to 9.7% as of December 31, 2023[39] Expenses and Operating Costs - Total operating expenses for Q4 2024 were $39.1 million, up 33.7% from $29.3 million in Q4 2023, primarily due to increased securitization expenses[27] - Total expenses for FY 2024 were $167.6 million, a 40.3% increase from $119.5 million in FY 2023[39] - Compensation and employee benefits increased to $20.1 million in Q4 2024, a 32.6% rise from $15.1 million in Q4 2023[24] - Total operating expenses for the year ended December 31, 2024, were $139,638 thousand, up from $100,619 thousand in 2023, marking a 38.8% increase[62] Capital and Equity - The average common equity increased by 15.5% to $498.9 million in Q4 2024 compared to $431.9 million in Q4 2023[7] - The company issued $7.3 million in new common equity through its ATM program, supporting ongoing growth initiatives[4] - The book value per share rose to $15.70 as of December 31, 2024, compared to $13.49 a year earlier, an increase of 16.4%[56] Debt and Interest Expense - Total debt for the year ended December 31, 2024, was $4,359,484, with an interest expense of $271,039, resulting in a yield of 6.22%, compared to $3,556,411 in total debt and $203,024 in interest expense for 2023, yielding 5.71%[65] - The corporate debt for the year ended December 31, 2024, was $282,888, with an interest expense of $23,821, yielding 8.42%, compared to $215,000 and $16,556 in interest expense for 2023, yielding 7.70%[65]

Velocity Financial (VEL) Q4 2024 Earnings Call March 07, 2025 01:08 AM ET Company Participants Christopher Oltmann - Treasurer & Director of Investor RelationsChristopher Farrar - Co-Founder, CEO & DirectorMark Szczepaniak - Chief Financial OfficerStephen Laws - Managing DirectorEric Hagen - Managing Director Conference Call Participants Steven Delaney - Analyst Operator Good day, and welcome to the Velocity Financial Fourth Quarter and Full Year twenty twenty four Conference Call. All participants will be ...

Velocity Financial, Inc. (NYSE:VEL) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Chris Oltmann - Director, Investor Relations Chris Farrar - President & Chief Executive Officer Mark Szczepaniak - Chief Financial Officer Conference Call Participants Steven Laws - Raymond James Steve Delaney - Citizen Capital Markets Eric Hagan - BTIG Operator Good day, and welcome to the Velocity Financial, Inc. Fourth Quarter and Full Year 2024 Conference Call. All participants will be in l ...

Velocity Financial (VEL) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.66%. A quarter ago, it was expected that this company would post earnings of $0.47 per share when it actually produced earnings of $0.47, delivering no surprise.Over the last four quarters, the company has sur ...