Velocity Financial, Inc. Announces Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

Velocity Financial reported a net income of $9.6 million for Q4 2020, a significant increase from $3.5 million in Q3 2020. The diluted earnings per share rose to $0.29, while book value per common share increased to $10.93. The company's total loan portfolio decreased by 2% to $1.93 billion. Despite a rise in nonperforming loans to 17.23%, operating expenses decreased by 9% quarter-over-quarter. Velocity's total net revenues grew by 33%, reflecting strong loan sales and improved interest income. The firm anticipates further growth in originations as it moves into 2021.

Positive

• Net income surged to $9.6 million from $3.5 million in Q3 2020, marking a 175% increase.
• Total net revenues grew by 33% to $22.5 million, driven by strong loan sales.
• Diluted earnings per common share rose to $0.29 from $0.11, a 165% increase.
• Operating expenses decreased by 9% from Q3 2020, enhancing profitability.

Negative

• Nonperforming loans increased to 17.23% of total held-for-investment loans from 15.84% in Q3 2020.
• Total loan portfolio decreased by 2% quarter-over-quarter, signaling a decline in loan production activity.

Velocity Financial, Inc. (NYSE: VEL) (“Velocity” or the “Company”) reported net income and core income of $9.6 million for the fourth quarter of 2020 and diluted earnings per common share of $0.29. Book value per common share was $10.93, an increase from $10.44 as of December 31, 2020.

“The fourth quarter marked a significant turning point in the Company’s emergence from the effects of the pandemic,” said Chris Farrar, President and CEO. “The excellent operating results reflect the strength of our business model, despite unprecedented economic stress in 2020. I am proud of our team’s return to increasing production levels and the ongoing positive resolution of delinquent loans. We have continued to drive momentum in our production activities as we move into 2021, and looking forward, we expect to organically grow originations and opportunistically evaluate other areas to deploy capital profitably.”

Fourth Quarter Operating Results
KEY PERFORMANCE INDICATORS
($ in thousands)	4Q 2020		3Q 2020		$ Variance		% Variance
Pretax income	$ 11,753		$ 5,025		$ 6,728		134%
Net income	$ 9,576		$ 3,481		$ 6,095		175%
Diluted earnings (loss) per share	$ 0.29		$ 0.11		$ 0.18		165%
Core Income(1)	$ 9,576		$ 3,913		$ 5,663		145%
Pretax return on equity	21.82%		9.60%		n.a.		127%
Return on equity	17.78%		6.60%		n.a.		169%
Net interest margin - portfolio	4.07%		3.77%		n.a.		8%
Net interest margin -total company	3.68%		3.39%		n.a.		9%
Operating Margin	52.24%		29.75%		n.a.		76%
Average common equity	$ 215,489		$ 209,468		$ 6,021		3%

(1) Core income is a non-GAAP measure. Please see the reconciliation to GAAP net income at the end of this release.

Discussion of results:

• 4Q20 net income totaled $9.6 million, an increase from $3.5 million in 3Q20, and reflects improved portfolio income and gain on the sale of newly originated loans

‒ Gain on loan sales in 4Q20 totaled $4.7 million (105% of UPB). There were no loan sales in 3Q20

• Net interest margin increased 30 bps from 3Q20, driven by growth in realization of delinquent/default interest on nonperforming loans and prepayment fees, along with lower portfolio related debt costs

TOTAL LOAN PORTFOLIO
($ of UPB in millions)	4Q 2020		3Q 2020		$ Variance		% Variance
Held for Investment
Investor 1-4 Rental	$ 959		$ 1,008		$ (49)		(5)%
Mixed Use	259		254		5		2%
Multi-Family	182		187		(5)		(3)%
Retail	172		173		(1)		(0)%
All Other	360		364		(4)		(1)%
Total	$ 1,932		$ 1,986		$ (54)		(7)%
Held for Sale
Investor 1-4 Rental	$ 13		$ -		$ 13		n.m.
Total Managed Loan Portfolio UPB	$ 1,945		$ 1,986		$ (42)		(2)%
Key loan portfolio metrics:
Total loan count	5,878		6,029
Weighted average loan to value	66.13%		66.18%
Weighted average total portfolio yield	8.40%		8.21%
Weighted average portfolio debt cost	4.97%		5.07%
n.m. - non meaningful

Discussion of results:

• Velocity’s total loan portfolio was $1.9 billion as of December 31, 2020, a 2% quarter-over-quarter decrease from September 30, 2020

‒ Driven by loan sales of $96.3 million in UPB and higher prepayment activity

• The weighted average total portfolio yield was 8.40% in 4Q20, an increase of 19 bps from 3Q20, primarily driven by the increased realization of nonperforming/default interest and prepayment fees
• The 10 bps decrease in portfolio related debt cost was attributable to the relatively faster paydown of 2020-2-MC1 securitization, which is the Company’s only outstanding securitization collateralized primarily by short-term loans

LOAN PRODUCTION VOLUMES
($ in millions)	4Q 2020		3Q 2020		$ Variance		% Variance
Investor 1-4 Rental	$ 129		$ 6		n.m.		n.m.
Traditional Commercial	50		2		n.m.		n.m.
Total loan production	$ 179		$ 8		n.m.		n.m.
n.m. - non meaningful

Discussion of results:

• The fourth quarter was Velocity’s first full quarter of production since the Company suspended originations in mid-March, funding $179.3 million in UPB of 30-year Investor 1-4 and Traditional Commercial loans
• Loan production in 1Q21 through February 28, 2021, totaled $125.5 million in UPB

CREDIT PERFORMANCE INDICATORS
($ in thousands)	4Q 2020		3Q 2020		$ Variance		% Variance
Nonperforming loans(1)	$ 332,813		$ 314,727		$ 18,086		6%
Nonperforming loans % total HFI Loans	17.23%		15.84%		n.a.		9%
Total Charge Offs(2)	$ 308		$ 1,046		$ (738)		(71)%
Charge-offs as a % of HFI loans	0.016%		0.053%		n.a.		(70)%
Loan Loss Reserve	$ 5,845		$ 5,748		$ 97		2%

(1) Nonperforming/Nonaccrual loans include loans 90+ days past due, loans in foreclosure, bankruptcy and on nonaccrual.

(2) $788 thousand of 3Q 2020 is related to an unusual and nonrecurring event.

Discussion of results:

• Nonperforming loans as a percent of total HFI loans as of December 31, 2020, increased to 17.23% from 15.84% as of September 30, 2020, mainly driven by modified COVID forbearance loans that became delinquent

• Charge-offs in 4Q20 totaled $308.4 thousand, in-line with our historical average

‒ The prior quarter’s charge-offs included $787.3 thousand resulting from an unusual circumstance on a single loan

• The reserve for loan losses as of December 31, 2020, was $5.8 million, a 2% increase from September 30, 2020, reflecting continued low actual credit losses despite higher levels of nonperforming loans

‒ Low LTVs and considerable expertise in loan resolutions through Velocity’s in-house special servicing team helps minimize losses

NET REVENUES
($ in thousands)	4Q 2020		3Q 2020		$ Variance		% Variance
Interest income	$ 41,556		$ 41,374		$ 182		0%
Interest expense - portfolio related	(21,442)		(22,347)		905		(4)%
Interest expense - corporate debt	(1,900)		(1,913)		13		(1)%
Net Interest Income	$ 18,214		$ 17,114		$ 1,100		6%
Loan loss provision	(406)		(1,573)		1,167		(74)%
Gain on loan sales	4,855		(51)		4,906		n.m.
Other Operating (loss) income	(164)		1,400		(1,564)		(112)%
Total Net Revenues	$ 22,499		$ 16,890		$ 5,609		33%
n.m. - non meaningful

Discussion of results:

• Net Revenue grew by 33% quarter-over-quarter, driven by sales of newly originated loans and increased net interest income
• Lower loan loss provision reflects continued low losses on delinquent loans and stabilization of macroeconomic conditions

OPERATING EXPENSES
($ in thousands)	4Q 2020		3Q 2020		$ Variance		% Variance
Compensation and employee benefits	$ 4,135		$ 5,692		$ (1,557)		(27)%
Rent and occupancy	424		415		9		2%
Loan servicing	1,977		2,168		(191)		(9)%
Professional fees	1,415		1,051		364		35%
Real estate owned, net	217		898		(681)		(76)%
Other expenses	2,578		1,641		937		57%
Total expenses	$ 10,746		$ 11,865		$ (1,119)		(9)%

Discussion of results:

• Operating expenses decreased 9% quarter-over-quarter due to deferred direct loan origination costs attributable to new originations, partially offset by legal costs related to the successful defense of a class-action lawsuit

SECURITIZATIONS
		Securities		Balance at				Balance at
Trusts		Issued		12/31/2020		W.A. Rate		9/30/2020		W.A. Rate
2011-1 Trust		$ 61,042		$ -		-		$ -		-
2014-1 Trust		161,076		23,391		7.46%		25,599		6.97%
2015-1 Trust		285,457		36,966		7.20%		41,190		7.52%
2016-1 Trust		319,809		57,963		7.78%		62,339		7.54%
2016-2 Trust		166,853		45,195		6.63%		46,984		6.40%
2017-1 Trust		211,910		72,910		5.31%		80,174		5.08%
2017-2 Trust		245,601		129,478		3.42%		138,456		3.34%
2018-1 Trust		176,816		102,063		4.04%		110,262		4.02%
2018-2 Trust		307,988		200,451		4.48%		208,206		4.51%
2019-1 Trust		235,580		181,579		4.01%		192,856		4.05%
2019-2 Trust		207,020		158,199		3.48%		168,819		3.42%
2019-3 Trust		154,419		127,045		3.26%		132,893		3.25%
2020-1 Trust		248,700		220,052		2.83%		233,005		2.84%
2020-2 Trust		96,352		109,832		4.55%		94,113		4.48%
2020-MC1 Trust		179,371		137,794		4.50%		162,173		4.50%
		$ 3,057,994		$ 1,602,917				$ 1,697,069

Discussion of results:

• Securitization balances outstanding $1.6 billion as of December 31, 2020, down from $1.7 billion at the end of the prior quarter, driven by paydown of the 2020-MC1 securitization collateralized primarily with short-term loans
• No new securitizations were issued during 4Q20. The Company’s next securitization is expected to be issued during 2Q21

RESOLUTION ACTIVITY	FOURTH QUARTER 2020				THIRD QUARTER 2020
($ in thousands)	UPB $		Gain / (Loss) $		UPB $		Gain / (Loss) $
Paid in full	$ 16,370		$ 115		$ 9,705		$ 728
Paid current	13,414		880		1,152		24
REO sold	237		69		1,628		(312)
	$ 30,022		$ 1,063		$ 12,485		$ 439.9
Resolutions as a % of nonperforming UPB			103.5%				103.5%

Discussion of results:

• Strong asset resolution trends continued in 4Q20, realizing gains of $1.1 million, or 103.5% of nonperforming UPB resolved, compared to $439.9 thousand in the prior quarter.

Full Year 2020 Results

• Net income totaled $17.8 million, a 3% year-over-year increase from $17.3 million in the prior year
• Loss per common share of $(1.55), resulting from a non-cash deemed dividend on preferred stock issued in 2Q20

‒ The preferred stock deemed dividend reduced common stockholders’ equity and correspondingly increased preferred stock under mezzanine equity, resulting in a non-cash loss per common share for the 12-months ended December 31, 2020

• Pretax income of $23.1 million, a 9% decrease from $25.4 million in the prior year primarily driven by a $10.5 million increase in operating expenses resulting primarily from higher compensation and employee benefits related to the suspension of loan production activities. The increase in expenses was partially offset by an $8.4 million increase in net interest income.
• Total net interest income was $67.4 million, a 14% increase from $59.0 million in the prior year, driven by a 15% increase in average loans outstanding that was partially offset by a 24 bps decrease in net interest margin.
• Total loan production of $435.0 million in UPB, down from $1.0 billion in UPB in the prior year

‒ Loan production activities in 2020 were adversely impacted by the COVID-19 pandemic, resulting in the suspension of loan production operations from March 2020 to September 2020

‒ Loan production since the resumption of operations is comprised of long-term Investor 1-4 Rental and Traditional Commercial loans

• Charge-offs for the year totaled $1.6 million, a 176% increase from $579.1 thousand in 2019

‒ Charge-offs in 2020 included a single loan charge-off of $788.3 thousand, resulting from an unusual and nonrecurring event. Adjusted charge-offs for the year ended December 31, 2020, totaled $812.7 thousand.

• Total operating expenses were $45.6 million, a 30% increase from $35.1 million in the prior year. The increase was primarily driven by higher compensation and employee benefits related to the suspension of loan production activities.
• Pretax return on equity was 11%, and decreased from 17% in the prior year, and reflects the resilience of Velocity’s business model in the face of extreme and unprecedented impacts from the pandemic

Webcast Information

Velocity’s executive management team will host a conference call and webcast to review its financial results on Tuesday, March 16, 2021, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

The conference call will be webcast live in listen-only mode and can be accessed through the Events and Presentations section of Velocity Financial’s Investor Relations website at https://www.velfinance.com/events-and-presentations. To listen to the webcast, please go to Velocity’s website at least 15 minutes before the call to register and to download and install any needed software.

Management’s slide presentation will be available through the Events and Presentations section of the Company’s Investor Relations website after the market close on Tuesday, March 16, 2021.

Conference Call Information

To participate by phone, please dial-in 15 minutes prior to the start time to allow for wait times to access the conference call. The live conference call will be accessible by dialing 1-866-807-9684 in the U.S. and Canada and 1-412-317-5415 for international callers. Callers should ask to be joined into the Velocity Financial, Inc. earnings call.

A replay of the call will be available through midnight on March 23, 2021, and can be accessed by dialing 1-877-344-7529 in the U.S. and 855-669-9658 in Canada or 1-412-317-0088 internationally. The passcode for the replay is #10152720. The replay will also be available on the Investor Relations section of the Company's website under "Events and Presentations.”

About Velocity Financial, Inc.

Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that primarily originates and manages investor loans secured by 1-4-unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers built and refined over 15 years.

⁽¹⁾ Core Income is a non-GAAP financial measure the Company presents to help investors better understand unique items that impact earnings. For a reconciliation of GAAP Net Income to Core Income, please refer to the sections of this press release titled “Non-GAAP Financial Measures” and “Adjusted Financial Metric Reconciliation to GAAP Net Income.”

Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses Core Income, which is a non-GAAP financial measure. For more information on Core Income, please refer to the section of this press release below titled “Adjusted Financial Metric Reconciliation to GAAP Net Income” at the end of this press release.

Forward-Looking Statements

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to anticipated results, expectations, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “goal,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.

The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions, and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to, (1) the continued course and severity of the COVID-19 pandemic and its direct and indirect impacts, (2) general economic and real estate market conditions, (3) regulatory and/or legislative changes, (4) our customers' continued interest in loans and doing business with us, (5) market conditions and investor interest in our contemplated securitization and (6) changes in federal government fiscal and monetary policies.

Additional information relating to these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements can be found in the section titled ‘‘Risk Factors” 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 Relations web page at www.velfinance.com.

Velocity Financial, Inc.
Consolidated Statements of Financial Condition
	Quarter Ended
	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019
	Audited		Unaudited		Unaudited		Unaudited		Audited
(In thousands)
Assets
Cash and cash equivalents	$ 13,273		$ 19,210		$ 9,803		$ 7,649		$ 21,465
Restricted cash	7,020		7,821		6,735		4,483		6,087
Loans held for sale, net	13,106		0		212,344		223,123		214,467
Loans held for investment, at fair value	1,539		3,327		2,956		2,987		2,960
Loans held for investment	1,948,089		2,001,086		1,861,819		1,922,485		1,863,360
Total loans, net	1,962,734		2,004,413		2,077,119		2,148,595		2,080,787
Accrued interest receivables	11,373		13,134		17,793		14,470		13,295
Receivables due from servicers	71,044		44,466		36,028		37,884		49,659
Other receivables	4,085		402		4,609		2,516		4,778
Real estate owned, net	15,767		14,653		15,648		16,164		13,068
Property and equipment, net	4,145		4,446		4,718		4,964		4,680
Deferred tax asset	6,654		1,832		5,556		10,111		8,280
Other assets	6,779		16,489		9,042		10,519		12,667
Total Assets	$ 2,102,874		$ 2,126,866		$ 2,187,051		$ 2,257,354		$ 2,214,766
Liabilities and members' equity
Accounts payable and accrued expenses	$ 63,361		$ 61,859		$ 55,938		$ 58,591		$ 56,146
Secured financing, net	74,982		74,776		74,571		74,364		145,599
Securitizations, net	1,579,019		1,670,930		1,599,719		1,576,431		1,438,629
Warehouse & repurchase facilities	75,923		19,541		160,796		297,537		421,548
Total Liabilities	1,793,285		1,827,106		1,891,024		2,006,924		2,061,922
Mezzanine Equity
Series A Convertible preferred stock	90,000		90,000		90,000		-		-
Stockholders' Equity
Stockholders' equity	219,589		209,760		206,027		250,430		152,844
Total Liabilities and members' equity	$ 2,102,874		$ 2,126,866		$ 2,187,051		$ 2,257,354		$ 2,214,766
Book value per share	$ 10.93		$ 10.44		$ 10.26		$ 12.47		n.a.
Shares outstanding	20,087		20,087		20,087		20,087		n.a.

Velocity Financial, LLC
Consolidated Statements of Income (Quarterly)
							Quarter Ended
	Quarter Ended
($ in thousands)	12/31/2020		9/30/2020		6/30/2020		3/31/2020		12/31/2019
	Audited		Unaudited		Unaudited		Unaudited		Audited
Revenues
Interest income	$ 41,556		$ 41,374		$ 39,755		$ 44,637		$ 44,124
Interest expense - portfolio related	21,442		22,347		21,189		22,848		22,689
Net interest income - portfolio related	20,114		19,027		18,566		21,789		21,435
Interest expense - corporate debt	1,900		1,913		1,894		6,342		4,070
Net interest income	18,214		17,114		16,672		15,447		17,365
Provision for loan losses	406		1,573		1,800		1,289		242
Net interest income after provision for loan losses	17,808		15,541		14,872		14,157		17,123
Other operating income (expense)	4,691		1,349		(1,339)		1,620		833
Total net revenues	22,499		16,890		13,533		15,777		17,956
Operating expenses
Compensation and employee benefits	4,135		5,692		5,863		5,041		3,992
Rent and occupancy	424		415		448		455		426
Loan servicing	1,977		2,168		1,754		2,239		1,939
Professional fees	1,415		1,051		588		1,184		469
Real estate owned, net	217		898		408		1,134		1,300
Other operating expenses	2,578		1,641		1,847		1,998		1,688
Total operating expenses	10,746		11,865		10,908		12,050		9,814
Income before income taxes	11,753		5,025		2,625		3,727		8,142
Income tax expense	2,177		1,544		484		1,148		2,960
Net income	$ 9,576		$ 3,481		$ 2,141		$ 2,579		$ 5,182
Less deemed dividends on preferreds stock					$ 48,955
Net loss allocated to common shareholders					$ (46,814)
Basic earnings (loss) per share	$ 0.48		$ 0.17		$ (2.33)		$ 0.13		n.a.
Diluted earnings (loss) per common share	$ 0.29		$ 0.11		$ (2.33)		$ 0.13		n.a.
Basic weighted average common shares outstanding	20,087		20,087		20,087		20,087		n.a.
Diluted weighted average common shares outstanding	32,793		32,435		20,087		20,087		n.a.

Velocity Financial, LLC
Consolidated Statements of Income(Annual)
	Year Ended
($ in thousands)	12/31/2020		12/31/2019		12/31/2018
	Audited		Audited		Audited
Revenues
Interest income	$ 167,322		$ 157,531		$ 124,722
Interest expense - portfolio related	87,826		83,903		62,597
Net interest income - portfolio related	79,496		73,628		62,125
Interest expense - corporate debt	12,049		14,618		13,322
Net interest income	67,447		59,010		48,803
Provision for loan losses	5,068		1,139		201
Net interest income after provision for loan losses	62,379		57,871		48,602
Other operating income (expense)	6,320		2,649		2,807
Total net revenues	68,699		60,520		51,409
Operating expenses
Compensation and employee benefits	20,731		15,511		15,105
Rent and occupancy	1,743		1,531		1,320
Loan servicing	7,802		7,396		6,009
Professional fees	4,238		2,056		3,040
Real estate owned, net	2,656		2,647		1,373
Other operating expenses	8,400		5,981		5,313
Total operating expenses	45,570		35,122		32,160
Income before income taxes	23,129		25,398		19,249
Income tax expense	5,352		8,106		11,618
Net income	$ 17,777		$ 17,292		$ 7,631
Less deemed dividends on preferreds stock	$ 48,955
Net loss allocated to common shareholders	$ (31,178)
Basic earnings (loss) per share	$ (1.55)		n.a.		n.a.
Diluted earnings (loss) per common share	$ (1.55)		n.a.		n.a.
Basic weighted average common shares outstanding	20,087		n.a.		n.a.
Diluted weighted average common shares outstanding	20,087

Velocity Financial, Inc.
Net Interest Margin — Portfolio Related and Total Company
(Unaudited)
	Quarter Ended December 31, 2020									Quarter Ended September 30, 2020									Quarter Ended December 31, 2019
				Interest			Average						Interest			Average						Interest			Average
	Average			Income /			Yield /			Average			Income /			Yield /			Average			Income /			Yield /
($ in thousands)	Balance			Expense			Rate(1)			Balance			Expense			Rate(1)			Balance			Expense			Rate(1)
Loan portfolio:
Loans held for sale	$	20,719								$	-								$	184,021
Loans held for investment		1,958,436									2,016,414									1,800,507
Total loans	$	1,979,155		$	41,557		8.40	%		$	2,016,414		$	41,374		8.21	%			1,984,528	$	$	44,124		8.89	%
Debt:
Warehouse and repurchase facilities	$	60,065			717		4.78	%		$	22,306			703		12.61	%			320,456	$		4,223
Securitizations		1,666,180			20,726		4.98	%			1,742,669			21,645		4.97	%			1,495,456			18,467
Total debt - portfolio related		1,726,245			21,443		4.98	%			1,764,975			22,348		5.07	%			1,815,912			22,690		5.00	%
Corporate debt		78,000			1,900		9.74	%			78,000			1,913		9.81	%			153,000			4,069
Total debt	$	1,804,245		$	23,343		5.18	%		$	1,842,975		$	24,261		5.27	%			1,968,912	$		26,759		5.44	%
Net interest spread - portfolio related (1)							3.42	%								3.14	%								3.90	%
Net interest margin - portfolio related							4.07	%								3.77	%								4.32	%
Net interest spread - total company (2)							3.22	%								2.94	%								3.46	%
Net interest margin - total company							3.68	%								3.39	%								3.50	%
(1) Net interest spread - portfolio related is the difference between the rate earned on our loan portfolio and the interest rates paid on our portfolio related debt.
(2) Net interest spread - total company is the difference between the yield on our loan portfolio and the interest rates paid on our total debt.

Velocity Financial, Inc.
Adjusted Financial Metric Reconciliation to GAAP Net Income
(Unaudited)
"Core" Income
	Quarter Ended
($ in thousands)	12/31/2020		9/30/2020		6/30/2020		3/31/2020
Net Income	$ 9,576		$ 3,481		$ 2,141		$ 2,579
One-time Debt Amortization & Expenses	-		-		-		2,610
COVID-19 Impact	-		-		1,267		615
Workforce reduction costs	-		432		-		-
"Core" Income	$ 9,576		$ 3,913		$ 3,408		$ 5,804

 

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FAQ

What were Velocity Financial's earnings for Q4 2020?

Velocity Financial reported a net income of $9.6 million for Q4 2020.

How did Velocity Financial perform in terms of diluted earnings per share in Q4 2020?

The diluted earnings per share for Velocity Financial in Q4 2020 rose to $0.29.

What is the total loan portfolio of Velocity Financial as of Q4 2020?

The total loan portfolio of Velocity Financial was $1.93 billion as of Q4 2020.

What are the expectations for Velocity Financial's loan originations in 2021?

Velocity Financial anticipates organic growth in loan originations as they move into 2021.

How much did the company's total net revenues grow in Q4 2020?

Total net revenues for Velocity Financial grew by 33% in Q4 2020.