Velocity Financial, Inc. Reports Second Quarter 2024 Results
Velocity Financial (NYSE: VEL) reported strong Q2 2024 results with net income of $14.7 million, up 21.3% year-over-year. Diluted EPS rose to $0.42 from $0.36 in Q2 2023. Key highlights include:
- Loan production of $422.2 million, up 63.2% year-over-year
- Portfolio net interest margin of 3.54%, up 30 bps year-over-year
- Total loan portfolio grew 20.4% to $4.5 billion in unpaid principal balance
- Completed two securitizations totaling $490.8 million
- GAAP book value per share increased 15.5% to $14.52
The company saw strong demand for traditional commercial financing and maintained higher loan coupons while increasing production volume. Nonperforming loans were 10.5% of total loans held for investment, up slightly from 10.0% a year ago.
Velocity Financial (NYSE: VEL) ha registrato risultati robusti nel secondo trimestre del 2024, con un utile netto di 14,7 milioni di dollari, in aumento del 21,3% rispetto all'anno precedente. Il utile per azione diluito è salito a 0,42 dollari rispetto a 0,36 dollari nel secondo trimestre del 2023. I punti salienti includono:
- Produzione di prestiti di 422,2 milioni di dollari, in aumento del 63,2% rispetto all'anno precedente
- Margine di interesse netto del portafoglio del 3,54%, in aumento di 30 punti base rispetto all'anno precedente
- Il portafoglio totale dei prestiti è cresciuto del 20,4% a 4,5 miliardi di dollari in saldo principale non pagato
- Completati due titoli garantiti per un totale di 490,8 milioni di dollari
- Il valore contabile secondo i principi GAAP per azione è aumentato del 15,5% a 14,52 dollari
L'azienda ha registrato una forte domanda per il finanziamento commerciale tradizionale e ha mantenuto tassi di prestito più alti, aumentando il volume di produzione. I prestiti non performanti rappresentavano il 10,5% del totale dei prestiti detenuti per investimento, in lieve aumento rispetto al 10,0% di un anno fa.
Velocity Financial (NYSE: VEL) reportó resultados fuertes en el segundo trimestre de 2024 con ingresos netos de 14.7 millones de dólares, un aumento del 21.3% en comparación con el año anterior. Las ganancias por acción diluidas subieron a 0.42 dólares desde 0.36 dólares en el segundo trimestre de 2023. Los aspectos más destacados incluyen:
- Producción de préstamos de 422.2 millones de dólares, un aumento del 63.2% en comparación con el año anterior
- Margen de interés neto de la cartera del 3.54%, un aumento de 30 puntos base en comparación con el año anterior
- La cartera total de préstamos creció un 20.4% a 4.5 mil millones de dólares en saldo principal no pagado
- Se completaron dos titulizaciones por un total de 490.8 millones de dólares
- El valor contable por acción según GAAP aumentó un 15.5% a 14.52 dólares
La empresa vio una fuerte demanda por financiamiento comercial tradicional y mantuvo tasas de préstamos más altas mientras aumentaba el volumen de producción. Los préstamos no rentables representaron el 10.5% del total de préstamos mantenidos como inversión, un ligero aumento respecto al 10.0% del año pasado.
Velocity Financial (NYSE: VEL)는 2024년 2분기 강력한 실적을 보고했으며, 순이익은 1,470만 달러로 전년 대비 21.3% 증가했습니다. 희석 주당 순이익은 0.42달러로 2023년 2분기 0.36달러에서 상승했습니다. 주요 내용은 다음과 같습니다:
- 대출 생산액은 4억 2,220만 달러로 전년 대비 63.2% 증가
- 포트폴리오 순 이자 마진은 3.54%로 전년 대비 30bp 증가
- 총 대출 포트폴리오는 20.4% 증가하여 45억 달러의 미수금으로 성장
- 총 4억 9,080만 달러 규모의 두 건의 유동화 성공
- 주당 GAAP 장부 가치는 15.5% 증가하여 14.52달러로 상승
회사는 전통적인 상업 금융에 대한 강한 수요를 보였으며, 대출 발행량을 늘리면서 높은 이자율을 유지했습니다. 부실채권 비율은 총 투자대출의 10.5%로, 작년 10.0%에 비해 약간 증가했습니다.
Velocity Financial (NYSE: VEL) a annoncé des résultats solides pour le deuxième trimestre 2024, avec un bénéfice net de 14,7 millions de dollars, en hausse de 21,3 % par rapport à l'année précédente. Le bénéfice par action dilué est passé à 0,42 dollar contre 0,36 dollar au deuxième trimestre 2023. Les points forts incluent :
- Production de prêts de 422,2 millions de dollars, en hausse de 63,2 % par rapport à l'année précédente
- Marche d'intérêt nette du portefeuille de 3,54 %, en hausse de 30 points de base par rapport à l'année précédente
- Le portefeuille total de prêts a augmenté de 20,4 % pour atteindre 4,5 milliards de dollars en solde principal non encore payé
- Deux titrisations d'un montant total de 490,8 millions de dollars ont été réalisées
- La valeur comptable par action selon les normes GAAP a augmenté de 15,5 % pour atteindre 14,52 dollars
L'entreprise a connu une forte demande pour le financement commercial traditionnel et a maintenu des taux de prêt plus élevés tout en augmentant le volume de production. Les prêts non performants représentaient 10,5 % de l'ensemble des prêts détenus à des fins d'investissement, légèrement en hausse par rapport aux 10,0 % de l'année précédente.
Velocity Financial (NYSE: VEL) berichtete über starke Ergebnisse im zweiten Quartal 2024 mit einem Nettogewinn von 14,7 Millionen Dollar, was einem Anstieg von 21,3 % im Jahresvergleich entspricht. Der verwässerte Gewinn pro Aktie stieg auf 0,42 Dollar von 0,36 Dollar im 2. Quartal 2023. Zu den wichtigen Highlights gehören:
- Darlehensproduktion von 422,2 Millionen Dollar, ein Anstieg von 63,2 % im Jahresvergleich
- Nettozinsspanne des Portfolios von 3,54 %, ein Anstieg von 30 Basispunkten im Jahresvergleich
- Das gesamte Darlehensportfolio wuchs um 20,4 % auf 4,5 Milliarden Dollar an ausstehenden Hauptschulden
- Abschluss von zwei Verbriefungen mit insgesamt 490,8 Millionen Dollar
- Der Buchwert pro Aktie nach GAAP stieg um 15,5 % auf 14,52 Dollar
Das Unternehmen verzeichnete eine starke Nachfrage nach traditioneller gewerblicher Finanzierung und hielt die Zinssätze für Darlehen höher, während das Produktionsvolumen gesteigert wurde. Die notleidenden Kredite machten 10,5 % der insgesamt zur Investition gehaltenen Kredite aus, was einen leichten Anstieg von 10,0 % im Vorjahr darstellt.
- Net income increased 21.3% year-over-year to $14.7 million
- Diluted EPS rose 16.7% to $0.42
- Loan production grew 63.2% year-over-year to $422.2 million
- Portfolio net interest margin expanded 30 bps to 3.54%
- Total loan portfolio increased 20.4% to $4.5 billion
- Completed two securitizations totaling $490.8 million
- GAAP book value per share grew 15.5% to $14.52
- Nonperforming loans increased slightly to 10.5% of total loans held for investment, up from 10.0% a year ago
- Operating expenses increased 57% year-over-year to $34.9 million
Insights
Velocity Financial's Q2 2024 results demonstrate strong growth and improved profitability. Net income increased 21.3% year-over-year to
- Loan production volume increased 63.2% year-over-year to
$422.2 million , with particularly strong growth in traditional commercial loans. - Portfolio net interest margin expanded to
3.54% , up 30 basis points year-over-year, due to higher loan coupons on new originations. - Total loan portfolio grew 20.4% to
$4.5 billion in unpaid principal balance.
The company's focus on maintaining higher loan coupons while increasing production volume has paid off, resulting in stable net interest margin growth and solid net fair market value gains. However, investors should note the slight increase in nonperforming loans to
Velocity's securitization activity remains robust, with two securitizations completed in Q2 totaling
Overall, Velocity appears well-positioned for continued growth, with management reaffirming their year-end 2024 portfolio target of
Velocity Financial's Q2 results reflect broader trends in the business purpose lending market. The significant increase in loan production, particularly in traditional commercial loans, suggests growing demand for this type of financing. This could be indicative of increased investment activity in commercial real estate or small businesses seeking capital for expansion.
The company's ability to maintain higher loan coupons (averaging
The continued strong investor appetite for Velocity's asset-backed securities, as evidenced by the successful completion of two securitizations in the quarter, indicates that institutional investors remain confident in the quality of Velocity's loan portfolio. This is important for the company's business model, as it allows them to recycle capital and continue growing their loan book.
However, the slight uptick in nonperforming loans bears watching. While still at manageable levels, if this trend continues, it could signal increasing stress among Velocity's borrowers, potentially due to broader economic factors affecting commercial real estate or small businesses.
The company's focus on investor 1-4 rental properties (which make up over half of the portfolio) aligns with the ongoing strength in the residential rental market. As long as housing affordability remains challenging for many potential homebuyers, demand for rental properties is likely to remain robust, supporting this segment of Velocity's business.
Second Quarter Highlights:
-
Net income of
$14.7 million 21.3% from$12.2 million $0.42 $0.06 $0.36 -
Core net income(1) of
$15.9 million 23.1% from$12.9 million $0.45 $0.38 -
Loan production of
$422.2 million 11.5% and63.2% increase from 1Q24 and 2Q23, respectively -
Nonperforming loans as a percentage of Held for Investment (HFI) loans was
10.5% , up slightly from10.1% as of March 31, 2024, and10.0% as of June 30, 2023, respectively -
Resolutions of nonperforming loans (NPL) and real estate owned (REO) totaled
$80.7 million -
Realized gains of
$1.0 million 101.3% of UPB resolved
-
Realized gains of
-
Portfolio net interest margin (NIM) of
3.54% , an increase of 19 bps Q/Q and an increase of 30 bps from3.24% for 2Q23 -
Completed the VCC 2024-2 and VCC 2024-3 securitizations totaling
$286.2 million -
Resulted in a
$0.06
-
Resulted in a
-
Century Health & Housing Capital, LLC acquired
$3.6 million $227.6 million -
Liquidity(2) of
$83.8 million $646.5 million - Recourse debt to equity ratio of 1.1x
-
GAAP Book value per common share of
$14.52 15.5% increase from$12.57
(1) Core income and Core EPS are non-GAAP measures that exclude nonrecurring and unusual activities from GAAP net income. |
(2) Liquidity includes unrestricted cash reserves of |
“Velocity continued to build on its strong momentum in the second quarter, delivering continued production volume and earnings growth,” said Chris Farrar, President and CEO. “During the quarter, we expanded our loan production team and realized the benefits of earlier investments through higher production volume and market share growth, which has been particularly robust in our traditional commercial product. We also saw continued strong investor demand for Velocity’s asset-backed securities, evidenced by improving economics on the
Second Quarter Operating Results
| KEY PERFORMANCE INDICATORS | ||||||||||||
| ($ in thousands) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | ||||||||
| Pretax income | $ |
19,873 |
|
$ |
16,824 |
|
$ |
3,049 |
18 |
% |
||
| Net income | $ |
14,711 |
|
$ |
12,183 |
|
$ |
2,527 |
21 |
% |
||
| Diluted earnings per share | $ |
0.42 |
|
$ |
0.36 |
|
$ |
0 |
16 |
% |
||
| Core Pretax income | $ |
21,507 |
|
$ |
17,811 |
|
$ |
3,696 |
21 |
% |
||
| Core net income(a) | $ |
15,918 |
|
$ |
12,928 |
|
$ |
2,990 |
23 |
% |
||
| Core diluted earnings per share(a) | $ |
0.45 |
|
$ |
0.38 |
|
$ |
0.07 |
18 |
% |
||
| Pretax return on equity |
|
16.95 |
% |
|
16.81 |
% |
n.a. | 1 |
% |
|||
| Core pretax return on equity(a) |
|
18.34 |
% |
|
17.79 |
% |
n.a. | 3 |
% |
|||
| Net interest margin - portfolio |
|
3.54 |
% |
|
3.24 |
% |
n.a. | 9 |
% |
|||
| Net interest margin - total company |
|
2.98 |
% |
|
2.78 |
% |
n.a. | 7 |
% |
|||
| Average common equity | $ |
469,071 |
|
$ |
400,441 |
|
$ |
68,630 |
17 |
% |
||
| (a) Core income, core diluted earnings per share and core pretax return on equity are non-GAAP measures. Please see the reconciliation to GAAP net income at the end of this release. | ||||||||||||
| n.a.- not applicable | ||||||||||||
Discussion of results:
-
Net income in 2Q24 was
$14.7 million $12.2 million - Driven by higher production volume, net interest income growth, and continued strong loan resolution activity
-
Core net income(1) was
$15.9 million $12.9 million - 2Q24 core adjustments included incentive compensation expenses and costs related to the Company’s employee stock purchase plan (ESPP)
-
Portfolio NIM for 2Q24 was
3.54% , compared to3.24% for 2Q23, a9.4% Y/Y increase driven by HFI portfolio growth and average loan coupons of more than11.0% on recent loan production
| TOTAL LOAN PORTFOLIO | |||||||||||||
| ($ of UPB in millions) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | |||||||||
| Held for Investment | |||||||||||||
| Investor 1-4 Rental | $ |
2,425 |
|
$ |
2,016 |
|
$ |
409 |
|
20 |
% |
||
| Mixed Use |
|
510 |
|
|
452 |
|
|
58 |
|
13 |
% |
||
| Multi-Family |
|
336 |
|
|
304 |
|
|
33 |
|
11 |
% |
||
| Retail |
|
385 |
|
|
322 |
|
|
63 |
|
20 |
% |
||
| Warehouse |
|
288 |
|
|
235 |
|
|
53 |
|
23 |
% |
||
| All Other |
|
535 |
|
|
391 |
|
|
144 |
|
37 |
% |
||
| Total | $ |
4,480 |
|
$ |
3,720 |
|
$ |
760 |
|
20 |
% |
||
| Held for Sale | |||||||||||||
| Investor 1-4 Rental | $ |
- |
|
$ |
- |
|
$ |
- |
|
n.m. | |||
| Multi-Family |
|
- |
|
|
- |
|
|
(17 |
) |
n.m. | |||
| Warehouse |
|
- |
|
|
- |
|
|
- |
|
n.m. | |||
| All Other |
|
- |
|
|
- |
|
|
- |
|
n.m. | |||
| Total Managed Loan Portfolio UPB | $ |
4,480 |
|
$ |
3,720 |
|
$ |
760 |
|
20 |
% |
||
| Key loan portfolio metrics: | |||||||||||||
| Total loan count |
|
11,582 |
|
|
9,541 |
|
|||||||
| Weighted average loan to value |
|
67.4 |
% |
|
68.2 |
% |
|||||||
| Weighted average coupon |
|
9.25 |
% |
|
8.40 |
% |
|||||||
| Weighted average total portfolio yield |
|
8.98 |
% |
|
8.24 |
% |
|||||||
| Weighted average portfolio debt cost |
|
6.01 |
% |
|
5.58 |
% |
|||||||
| n.m. - non meaningful | |||||||||||||
Discussion of results:
-
Velocity’s total loan portfolio was
$4.5 billion 20.4% from$3.7 billion -
Primarily driven by
20.3% Y/Y growth in loans collateralized by Investor 1-4 Rental properties and36.9% Y/Y growth in loans collateralized by “Other” commercial properties -
Loan prepayments totaled
$165.8 million $142.0 million $105.8 million
-
Primarily driven by
-
The UPB of Fair Value Option (“FVO”) loans was
$1.88 billion 42.0% of total HFI loans, as of June 30, 2024, an increase from$688.1 million 18.5% , as of June 30, 2023 -
The weighted average portfolio loan-to-value ratio was
67.4% as of June 30, 2024, down from68.2% as of June 30, 2023, and consistent with the five-quarter trailing average of67.8% -
The weighted average total portfolio yield was
8.98% as of June 30, 2024, an increase of 74 bps from 2Q23, driven by an 85 bps increase in weighted average loan coupons from June 30, 2023 -
Portfolio-related debt cost as of June 30, 2024, was
6.01% , an increase of 43 bps from June 30, 2023, driven by higher interest rates on warehouse financing and recent securitizations
| LOAN PRODUCTION VOLUMES | |||||||||||
| ($ in millions) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | |||||||
| Investor 1-4 Rental | $ |
184 |
$ |
163 |
$ |
21 |
13 |
% |
|||
| Traditional Commercial |
|
175 |
|
73 |
|
101 |
138 |
% |
|||
| Short-term loans |
|
63 |
|
22 |
|
41 |
187 |
% |
|||
| Total loan production | $ |
422 |
$ |
259 |
$ |
164 |
63 |
% |
|||
| Acquisitions | $ |
3 |
$ |
- |
|||||||
Discussion of results:
-
Loan production for 2Q24 totaled
$422.2 million 63.2% increase from$258.6 million -
Driven by continued strong demand for Traditional Commercial financing. On a Y/Y basis, traditional commercial production volume rose
137.6% .
-
Driven by continued strong demand for Traditional Commercial financing. On a Y/Y basis, traditional commercial production volume rose
-
The weighted average coupon (WAC) on 2Q24 HFI loan production was
11.0% , essentially unchanged from 2Q23
| HFI PORTFOLIO CREDIT PERFORMANCE INDICATORS | |||||||||||||
| ($ in thousands) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | |||||||||
| Nonperforming loans(a) | $ |
470,649 |
|
$ |
371,154 |
|
$ |
99,495 |
|
27 |
% |
||
| Average Nonperforming Loans (b) | $ |
319,342 |
|
$ |
328,897 |
|
$ |
(9,555 |
) |
(3 |
)% |
||
| Average Loans HFI | $ |
4,345,962 |
|
$ |
3,634,093.1 |
|
$ |
711,869 |
|
20 |
% |
||
| Nonperforming loans % total HFI Loans |
|
10.5 |
% |
|
10.0 |
% |
n.a. | 4 |
% |
||||
| Total Charge Offs | $ |
245 |
|
$ |
717 |
|
$ |
(472 |
) |
(66 |
)% |
||
| Charge-offs as a % of Avg. Nonperforming Loans(c) |
|
0.31 |
% |
|
0.87 |
% |
n.a. | (65 |
)% |
||||
| Loan Loss Reserve | $ |
5,240 |
|
$ |
4,626 |
|
$ |
614 |
|
13 |
% |
||
| (a) Total HFI nonperforming/nonaccrual loans include loans 90+ days past due, loans in foreclosure, bankruptcy and on nonaccrual. | |||||||||||||
| (b) Reflects monthly average nonperforming loans held for investment, excluding FVO loans, during the period. | |||||||||||||
| (c) Reflects the annualized quarter-to-date charge-offs to average nonperforming loans for the period. | |||||||||||||
| n.a.- not applicable | |||||||||||||
Discussion of results:
-
Nonperforming loans (NPL) totaled
$470.6 million 10.5% of loans HFI, compared to$371.2 million 10.0% as of June 30, 2023- Driven by the growth of loans in foreclosure
-
Charge-offs for 2Q24 totaled
$244.6 thousand $716.6 thousand -
The trailing five-quarter charge-off average was
$461.0 thousand
-
The trailing five-quarter charge-off average was
-
The loan loss reserve totaled
$5.2 million 13.3% increase from$4.6 million - Primarily resulting from an increase in the individually assessed component of the CECL reserve
- Loans carried at fair value or held for sale are not subject to a CECL reserve
| NET REVENUES | |||||||||||||
| ($ in thousands) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | |||||||||
| Interest income | $ |
97,760 |
|
$ |
74,897 |
|
$ |
22,863 |
|
31 |
% |
||
| Interest expense - portfolio related |
|
(59,188 |
) |
|
(45,451 |
) |
|
(13,737 |
) |
30 |
% |
||
| Net Interest Income - portfolio related |
|
38,572 |
|
|
29,446 |
|
|
9,126 |
|
31 |
% |
||
| Interest expense - corporate debt |
|
(6,155 |
) |
|
(4,139 |
) |
|
(2,016 |
) |
49 |
% |
||
| Loan loss provision |
|
(218 |
) |
|
(298 |
) |
|
80 |
|
(27 |
)% |
||
| Net interest income after provision for loan losses | $ |
32,199 |
|
$ |
25,009 |
|
$ |
7,190 |
|
29 |
% |
||
| Gain on disposition of loans |
|
3,168 |
|
|
1,237 |
|
|
1,931 |
|
156 |
% |
||
| Unrealized (loss) gain on fair value loans |
|
17,123 |
|
|
2,413 |
|
|
14,710 |
|
610 |
% |
||
| Unrealized gain (loss) on fair value of securitized debt |
|
(4,643 |
) |
|
5,560 |
|
|
(10,203 |
) |
(184 |
)% |
||
| Unrealized gain/(loss) on mortgage servicing rights |
|
(373 |
) |
|
302 |
|
|
(675 |
) |
(223 |
)% |
||
| Origination income(a) |
|
5,072 |
|
|
2,735 |
|
|
2,337 |
|
85 |
% |
||
| Bank interest income |
|
1,731 |
|
|
1,189 |
|
|
542 |
|
46 |
% |
||
| Other operating income (expense) |
|
483 |
|
|
601 |
|
|
(118 |
) |
(20 |
)% |
||
| Total Other operating income (expense) | $ |
22,561 |
|
$ |
14,037 |
|
$ |
8,524 |
|
61 |
% |
||
| Net Revenue | $ |
54,760 |
|
$ |
38,749 |
|
$ |
16,011 |
|
41 |
% |
||
| (a) 2Q23 includes a reclass of production fees to expenses | |||||||||||||
Discussion of results:
-
Net Revenue for 2Q24 was
$54.8 million 41.3% compared to$38.7 million -
Driven by increased production volume and disciplined focus on maintaining spreads with
11.0% rates on loan originations since 2Q23
-
Driven by increased production volume and disciplined focus on maintaining spreads with
-
Total net interest income for 2Q24, including corporate debt interest expense and loan loss provision, was
$32.2 million 28.7% increase from$25.0 million -
Portfolio net Interest income was
$38.6 million 31.0% from 2Q23 resulting from portfolio growth and a 30bps increase in NIM
-
Portfolio net Interest income was
-
Total other operating income was
$22.6 million $14.0 million -
Net unrealized FVO gains on loans and securitized debt were
$12.4 million -
Origination income totaled
$5.1 million -
Gain on disposition of loans totaled
$3.2 million
-
Net unrealized FVO gains on loans and securitized debt were
| OPERATING EXPENSES | |||||||||||
| ($ in thousands) | 2Q 2024 |
2Q 2023 |
$ Variance | % Variance | |||||||
| Compensation and employee benefits | $ |
16,562 |
$ |
10,670 |
$ |
5,892 |
55 |
% |
|||
| Origination (income)/expense(a) |
|
749 |
|
123 |
626 |
510 |
% |
||||
| Securitization expenses |
|
6,232 |
|
2,699 |
3,533 |
131 |
% |
||||
| Rent and occupancy |
|
617 |
|
458 |
159 |
35 |
% |
||||
| Loan servicing |
|
5,160 |
|
4,267 |
893 |
21 |
% |
||||
| Professional fees |
|
1,718 |
|
1,056 |
662 |
63 |
% |
||||
| Real estate owned, net |
|
1,355 |
|
1,018 |
337 |
33 |
% |
||||
| Other expenses |
|
2,494 |
|
1,931 |
563 |
29 |
% |
||||
| Total operating expenses | $ |
34,887 |
$ |
22,222 |
$ |
12,665 |
57 |
% |
|||
| (a) 2Q23 includes a reclass of production fees to expenses | |||||||||||
Discussion of results:
-
Operating expenses totaled
$34.9 million 57.0% from 2Q23, primarily driven by the continued growth of our origination platform and increased securitization expenses from issuing two transactions in the quarter-
Compensation expense totaled
$16.6 million $10.7 million - Primarily driven by higher commissions on increased production volume and growth of the production team
-
Securitization expenses totaled
$6.2 million $2.7 million -
Loan servicing expense totaled
$5.2 million 20.9% increase from$4.3 million -
Professional fees totaled
$1.7 million 62.7% increase from$1.1 million -
REO expenses totaled
$1.4 million 33.1% increase from$1.0 million
-
Compensation expense totaled
| SECURITIZATIONS | |||||||
| ($ in thousands) | Securities | Balance at | Balance at | ||||
| Trusts | Issued | 6/30/2024 | W.A. Rate | 6/30/2023 | W.A. Rate | ||
| 2016-1 Trust | 319,809 |
|
|
||||
| 2017-2 Trust | 245,601 |
39,444 |
|
51,930 |
|
||
| 2018-1 Trust | 176,816 |
29,170 |
|
36,882 |
|
||
| 2018-2 Trust | 307,988 |
67,437 |
|
87,984 |
|
||
| 2019-1 Trust | 235,580 |
69,189 |
|
83,435 |
|
||
| 2019-2 Trust | 207,020 |
54,005 |
|
76,284 |
|
||
| 2019-3 Trust | 154,419 |
53,431 |
|
63,278 |
|
||
| 2020-1 Trust | 248,700 |
99,102 |
|
121,074 |
|
||
| 2020-2 Trust | 96,352 |
40,293 |
|
53,309 |
|
||
| 2021-1 Trust | 251,301 |
160,668 |
|
183,089 |
|
||
| 2021-2 Trust | 194,918 |
133,508 |
|
156,681 |
|
||
| 2021-3 Trust | 204,205 |
146,569 |
|
167,652 |
|
||
| 2021-4 Trust | 319,116 |
223,950 |
|
257,369 |
|
||
| 2022-1 Trust | 273,594 |
227,222 |
|
246,883 |
|
||
| 2022-2 Trust | 241,388 |
200,677 |
|
226,763 |
|
||
| 2022-MC1 Trust | 84,967 |
20,213 |
|
39,862 |
|
||
| 2022-3 Trust | 296,323 |
244,398 |
|
268,008 |
|
||
| 2022-4 Trust | 308,357 |
255,922 |
|
289,929 |
|
||
| 2022-5 Trust | 188,754 |
147,377 |
|
177,075 |
|
||
| 2023-1 Trust | 198,715 |
161,344 |
|
189,763 |
|
||
| 2023-1R Trust | 64,833 |
51,383 |
|
63,390 |
|
||
| 2023-2 Trust | 202,210 |
162,932 |
|
199,864 |
|
||
| 2023-RTL1 Trust | 81,608 |
81,608 |
|
||||
| 2023-3 Trust | 234,741 |
213,787 |
|
||||
| 2023-4 Trust | 202,890 |
208,449 |
|
||||
| 2024-1 Trust | 209,862 |
195,460 |
|
||||
| 2024-2 Trust | 286,235 |
280,139 |
|
||||
| 2024-3 Trust | 204,599 |
203,662 |
|
||||
|
|
|
|
|
|||
Discussion of results
-
The company completed two securitizations during 2Q24 totaling
$490.8 million -
The 2024-2 securitization was completed in April and totaled
$286.2 million 7.15% -
The 2024-3 securitization was completed in June and totaled
$204.6 million 7.24%
-
The 2024-2 securitization was completed in April and totaled
-
The weighted average rate on Velocity’s outstanding securitizations was
5.62% as of June 30, 2024, an increase of 90 bps from June 30, 2023
| RESOLUTION ACTIVITIES | ||||||||||||||
| LONG-TERM LOANS | ||||||||||||||
| RESOLUTION ACTIVITY | SECOND QUARTER 2024 | SECOND QUARTER 2023 | ||||||||||||
| ($ in thousands) | UPB $ | Gain / (Loss) $ | UPB $ | Gain / (Loss) $ | ||||||||||
| Paid in full | $ |
26,119 |
$ |
793 |
|
$ |
13,485 |
$ |
965 |
|
||||
| Paid current |
|
35,292 |
|
188 |
|
|
19,771 |
|
280 |
|
||||
| REO sold (a) |
|
7,859 |
|
(202 |
) |
|
4,836 |
|
(382 |
) |
||||
| Total resolutions | $ |
69,270 |
$ |
779 |
|
$ |
38,092 |
$ |
863 |
|
||||
| Resolutions as a % of nonperforming UPB |
|
101.1 |
% |
|
102.3 |
% |
||||||||
| SHORT-TERM AND FORBEARANCE LOANS | ||||||||||||||
| RESOLUTION ACTIVITY | SECOND QUARTER 2024 | SECOND QUARTER 2023 | ||||||||||||
| ($ in thousands) | UPB $ | Gain / (Loss) $ | UPB $ | Gain / (Loss) $ | ||||||||||
| Paid in full | $ |
4,545 |
$ |
93 |
|
$ |
7,004 |
$ |
318 |
|
||||
| Paid current |
|
2,689 |
|
1 |
|
|
3,290 |
|
89 |
|
||||
| REO sold |
|
4,176 |
|
165 |
|
|
1,672 |
|
222 |
|
||||
| Total resolutions | $ |
11,410 |
$ |
259 |
|
$ |
11,966 |
$ |
629 |
|
||||
| Resolutions as a % of nonperforming UPB |
|
102.3 |
% |
|
105.3 |
% |
||||||||
| Grand total resolutions | $ |
80,680 |
$ |
1,037 |
|
$ |
50,058 |
$ |
1,492 |
|
||||
| Grand total resolutions as a % of nonperforming UPB |
|
101.3 |
% |
|
103.0 |
% |
||||||||
Discussion of results:
-
NPL resolution totaled
$80.7 million 101.3% of UPB resolved compared to$50.1 million 103.0% of UPB resolved for 2Q23 -
2Q24 NPL resolutions represented
18.7% of nonperforming loan UPB as of March 31, 2024 -
The UPB of loan resolutions in 2Q24 was in line with the recent five-quarter resolution average of
$64.4 million 102.0% of UPB resolved
Velocity’s executive management team will host a conference call and webcast on August 1st, 2024, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to review 2Q24 financial results.
Webcast Information
The conference call will be webcast live in listen-only mode and can be accessed through the Events and Presentations section of the Velocity Financial Investor Relations website: https://www.velfinance.com/events-and-presentations. To listen to the webcast, please visit Velocity’s website at least 15 minutes before the call to register, download, and install any needed software. An audio replay of the call will also be available on Velocity’s website after the conference call is completed.
Conference Call Information
To participate by phone, please dial in 15 minutes before the start time to allow for wait times to access the conference call. The live conference call will be accessible by dialing 1-833-316-0544 in the
A replay of the call will be available through midnight on August 30, 2024, and can be accessed by dialing 1-877-344-7529 in the
About Velocity Financial, Inc.
Based in
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with
Non-GAAP core net income and non-GAAP core diluted EPS are non-GAAP financial measures that represent our net income (loss) and net income (loss) per diluted share, adjusted to eliminate the effect of certain costs incurred from activities that are not normal recurring operating expenses, such as COVID-stressed charges and recoveries of loan loss provision, nonrecurring debt amortization, the impact of operational measures taken to address the COVID-19 pandemic and workforce reduction costs, and costs associated with acquisitions. To calculate non-GAAP core diluted EPS, we use the weighted average number of shares of common stock outstanding that is used to calculate net income per diluted share under GAAP.
We have included non-GAAP core net income, and non-GAAP core diluted EPS because they are key measures used by our management to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that non-GAAP core net income and non-GAAP core diluted EPS provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, they provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain items that we expect to be nonrecurring.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies.
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,” ”position,” 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, including the risk of recession (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 future securitizations, and (6) the continued conflict in
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 Balance Sheet |
|||||||||||||||||||
| Quarter Ended | |||||||||||||||||||
| 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||||
| Unaudited | Unaudited | Audited | Unaudited | Unaudited | |||||||||||||||
| (In thousands) | |||||||||||||||||||
| Assets | |||||||||||||||||||
| Cash and cash equivalents | $ |
47,366 |
|
$ |
34,829 |
|
$ |
40,566 |
|
$ |
29,393 |
|
$ |
33,987 |
|
||||
| Restricted cash |
|
32,293 |
|
|
24,216 |
|
|
21,361 |
|
|
17,703 |
|
|
16,786 |
|
||||
| Loans held for sale, net |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Loans held for sale, at fair value |
|
- |
|
|
- |
|
|
17,590 |
|
|
19,536 |
|
|
- |
|
||||
| Loans held for investment, at fair value |
|
1,971,683 |
|
|
1,649,540 |
|
|
1,306,072 |
|
|
951,990 |
|
|
705,330 |
|
||||
| Loans held for investment |
|
2,619,619 |
|
|
2,727,518 |
|
|
2,828,123 |
|
|
2,945,840 |
|
|
3,057,940 |
|
||||
| Total loans, net |
|
4,591,302 |
|
|
4,377,058 |
|
|
4,151,785 |
|
|
3,917,366 |
|
|
3,763,270 |
|
||||
| Accrued interest receivables |
|
31,124 |
|
|
29,374 |
|
|
27,028 |
|
|
24,756 |
|
|
22,602 |
|
||||
| Receivables due from servicers |
|
82,359 |
|
|
87,523 |
|
|
85,077 |
|
|
70,139 |
|
|
63,896 |
|
||||
| Other receivables |
|
6,566 |
|
|
2,113 |
|
|
8,763 |
|
|
236 |
|
|
1,306 |
|
||||
| Real estate owned, net |
|
50,757 |
|
|
46,280 |
|
|
44,268 |
|
|
29,299 |
|
|
20,388 |
|
||||
| Property and equipment, net |
|
1,912 |
|
|
2,013 |
|
|
2,785 |
|
|
2,861 |
|
|
3,023 |
|
||||
| Deferred tax asset |
|
1,144 |
|
|
1,580 |
|
|
2,339 |
|
|
705 |
|
|
1,878 |
|
||||
| Mortgage Servicing Rights, at fair value |
|
12,229 |
|
|
9,022 |
|
|
8,578 |
|
|
9,786 |
|
|
9,445 |
|
||||
| Derivative assets |
|
- |
|
|
1,967 |
|
|
- |
|
|
1,261 |
|
|
- |
|
||||
| Goodwill |
|
6,775 |
|
|
6,775 |
|
|
6,775 |
|
|
6,775 |
|
|
6,775 |
|
||||
| Other assets |
|
9,566 |
|
|
5,468 |
|
|
5,248 |
|
|
7,028 |
|
|
7,789 |
|
||||
| Total Assets | $ |
4,873,393 |
|
$ |
4,628,218 |
|
$ |
4,404,573 |
|
$ |
4,117,308 |
|
$ |
3,951,145 |
|
||||
| Liabilities and members' equity | |||||||||||||||||||
| Accounts payable and accrued expenses | $ |
138,032 |
|
$ |
123,988 |
|
$ |
121,969 |
|
$ |
97,869 |
|
$ |
95,344 |
|
||||
| Secured financing, net |
|
283,909 |
|
|
283,813 |
|
|
211,083 |
|
|
210,774 |
|
|
210,464 |
|
||||
| Securitized debt, net |
|
2,228,941 |
|
|
2,329,906 |
|
|
2,418,811 |
|
|
2,504,334 |
|
|
2,622,547 |
|
||||
| Securitized debt, at fair value |
|
1,509,952 |
|
|
1,073,843 |
|
|
877,417 |
|
|
669,139 |
|
|
381,799 |
|
||||
| Warehouse & repurchase facilities |
|
237,437 |
|
|
360,216 |
|
|
334,755 |
|
|
215,176 |
|
|
235,749 |
|
||||
| Derivative liability |
|
374 |
|
|
- |
|
|
3,665 |
|
|
0 |
|
|
0 |
|
||||
| Total Liabilities |
|
4,398,646 |
|
|
4,171,766 |
|
|
3,967,700 |
|
|
3,697,292 |
|
|
3,545,903 |
|
||||
| Stockholders' Equity | |||||||||||||||||||
| Stockholders' equity |
|
471,323 |
|
|
452,941 |
|
|
433,444 |
|
|
416,398 |
|
|
401,707 |
|
||||
| Noncontrolling interest in subsidiary |
|
3,424 |
|
|
3,511 |
|
|
3,429 |
|
|
3,618 |
|
|
3,535 |
|
||||
| Total equity |
|
474,747 |
|
|
456,452 |
|
|
436,873 |
|
|
420,016 |
|
|
405,242 |
|
||||
| Total Liabilities and members' equity | $ |
4,873,393 |
|
$ |
4,628,218 |
|
$ |
4,404,573 |
|
$ |
4,117,308 |
|
$ |
3,951,145 |
|
||||
| Book value per share | $ |
14.52 |
|
$ |
14.01 |
|
$ |
13.49 |
|
$ |
13.00 |
|
$ |
12.57 |
|
||||
| Shares outstanding |
|
32,701(1) |
|
32,574(2) |
|
32,395(3) |
|
32,314(4) |
|
32,239(5) |
|||||||||
(1) |
Based on 32,701,185 common shares outstanding as of June 30, 2024, and excludes unvested shares of common stock authorized for incentive compensation totaling 397,450. |
|
(2) |
Based on 32,574,498 common shares outstanding as of March 31, 2024, and excludes unvested shares of common stock authorized for incentive compensation totaling 411,296. |
|
(3) |
Based on 32,395,423 common shares outstanding as of December 31, 2023, and excludes unvested shares of common stock authorized for incentive compensation totaling 470,413. |
|
(4) |
Based on 32,313,744 common shares outstanding as of September 30, 2023, and excludes unvested shares of common stock authorized for incentive compensation totaling 589,634. |
|
(5) |
Based on 32,238,715 common shares outstanding as of June 30, 2023, and excludes unvested shares of common stock authorized for incentive compensation totaling 502,913. |
Velocity Financial, Inc. Consolidated Statements of Income (Quarters) |
||||||||||||||||||
| Quarter Ended | ||||||||||||||||||
| ($ in thousands) | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||||||
| Revenues | ||||||||||||||||||
| Interest income | $ |
97,760 |
|
$ |
90,529 |
|
$ |
86,269 |
|
$ |
79,088 |
|
$ |
74,897 |
||||
| Interest expense - portfolio related |
|
59,188 |
|
|
55,675 |
|
|
51,405 |
|
|
47,583 |
|
|
45,451 |
||||
| Net interest income - portfolio related |
|
38,572 |
|
|
34,854 |
|
|
34,864 |
|
|
31,505 |
|
|
29,446 |
||||
| Interest expense - corporate debt |
|
6,155 |
|
|
5,380 |
|
|
4,140 |
|
|
4,138 |
|
|
4,139 |
||||
| Net interest income |
|
32,417 |
|
|
29,474 |
|
|
30,724 |
|
|
27,367 |
|
|
25,307 |
||||
| Provision for loan losses |
|
218 |
|
|
1,002 |
|
|
827 |
|
|
154 |
|
|
298 |
||||
| Net interest income after provision for loan losses |
|
32,199 |
|
|
28,472 |
|
|
29,897 |
|
|
27,213 |
|
|
25,009 |
||||
| Other operating income | ||||||||||||||||||
| Gain on disposition of loans |
|
3,168 |
|
|
1,699 |
|
|
1,482 |
|
|
3,606 |
|
|
1,237 |
||||
| Unrealized gain (loss) on fair value loans |
|
17,123 |
|
|
18,925 |
|
|
39,367 |
|
|
(1,284 |
) |
|
2,413 |
||||
| Unrealized gain (loss) on fair value securitized debt |
|
(4,643 |
) |
|
(2,318 |
) |
|
(24,085 |
) |
|
9,692 |
|
|
5,560 |
||||
| Unrealized gain/(loss) on mortgage servicing rights |
|
(373 |
) |
|
444 |
|
|
(1,208 |
) |
|
341 |
|
|
302 |
||||
| Origination income |
|
5,072 |
|
|
4,986 |
|
|
3,981 |
|
|
3,323 |
|
|
2,735 |
||||
| Bank interest income |
|
1,731 |
|
|
1,631 |
|
|
1,716 |
|
|
1,342 |
|
|
1,189 |
||||
| Other income (expense) |
|
483 |
|
|
408 |
|
|
418 |
|
|
340 |
|
|
601 |
||||
| Total other operating income |
|
22,561 |
|
|
25,775 |
|
|
21,670 |
|
|
17,360 |
|
|
14,037 |
||||
| Net revenue |
|
54,760 |
|
|
54,247 |
|
|
51,567 |
|
|
44,573 |
|
|
39,047 |
||||
| Operating expenses | ||||||||||||||||||
| Compensation and employee benefits |
|
16,562 |
|
|
15,357 |
|
|
15,143 |
|
|
12,523 |
|
|
10,670 |
||||
| Origination expenses |
|
749 |
|
|
646 |
|
|
173 |
|
|
273 |
|
|
123 |
||||
| Securitizations expenses |
|
6,232 |
|
|
2,874 |
|
|
2,709 |
|
|
4,930 |
|
|
2,699 |
||||
| Rent and occupancy |
|
617 |
|
|
498 |
|
|
551 |
|
|
472 |
|
|
458 |
||||
| Loan servicing |
|
5,160 |
|
|
4,824 |
|
|
4,636 |
|
|
4,901 |
|
|
4,267 |
||||
| Professional fees |
|
1,718 |
|
|
2,115 |
|
|
1,733 |
|
|
854 |
|
|
1,056 |
||||
| Real estate owned, net |
|
1,355 |
|
|
2,455 |
|
|
2,068 |
|
|
1,239 |
|
|
1,018 |
||||
| Other operating expenses |
|
2,494 |
|
|
2,242 |
|
|
2,248 |
|
|
2,142 |
|
|
1,931 |
||||
| Total operating expenses |
|
34,887 |
|
|
31,011 |
|
|
29,260 |
|
|
27,334 |
|
|
22,222 |
||||
| Income before income taxes |
|
19,873 |
|
|
23,236 |
|
|
22,307 |
|
|
17,239 |
|
|
16,824 |
||||
| Income tax expense |
|
5,162 |
|
|
5,903 |
|
|
5,141 |
|
|
5,070 |
|
|
4,602 |
||||
| Net income |
|
14,711 |
|
|
17,333 |
|
|
17,166 |
|
|
12,169 |
|
|
12,222 |
||||
| Net income attributable to noncontrolling interest |
|
(67 |
) |
|
82 |
|
|
(189 |
) |
|
83 |
|
|
39 |
||||
| Net income attributable to Velocity Financial, Inc. |
|
14,778 |
|
|
17,251 |
|
|
17,355 |
|
|
12,086 |
|
|
12,183 |
||||
| Less undistributed earnings attributable to participating securities |
|
182 |
|
|
217 |
|
|
225 |
|
|
183 |
|
|
185 |
||||
| Net earnings attributable to common shareholders | $ |
14,596 |
|
$ |
17,034 |
|
$ |
17,130 |
|
$ |
11,903 |
|
$ |
11,998 |
||||
| Basic earnings (loss) per share | $ |
0.45 |
|
$ |
0.52 |
|
$ |
0.53 |
|
$ |
0.37 |
|
$ |
0.37 |
||||
| Diluted earnings (loss) per common share | $ |
0.42 |
|
$ |
0.49 |
|
$ |
0.50 |
|
$ |
0.35 |
|
$ |
0.36 |
||||
| Basic weighted average common shares outstanding |
|
32,585 |
|
|
32,541 |
|
|
32,326 |
|
|
32,275 |
|
|
32,122 |
||||
| Diluted weighted average common shares outstanding |
|
35,600 |
|
|
35,439 |
|
|
34,991 |
|
|
34,731 |
|
|
34,140 |
||||
Velocity Financial, Inc. Net Interest Margin ‒ Portfolio Related and Total Company (Unaudited) |
|||||||||||||||||
Quarters: |
|||||||||||||||||
| Quarter Ended June 30, 2024 | Quarter Ended June 30, 2023 | ||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||
| ($ in thousands) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | |||||||||||
| Loan portfolio: | |||||||||||||||||
| Loans held for sale | $ |
9,979 |
$ |
3,477 |
|||||||||||||
| Loans held for investment |
|
4,345,962 |
|
3,634,093 |
|||||||||||||
| Total loans | $ |
4,355,942 |
$ |
97,760 |
8.98 |
% |
$ |
3,637,570 |
$ |
74,897 |
8.24 |
% |
|||||
| Debt: | |||||||||||||||||
| Warehouse and repurchase facilities | $ |
263,029 |
|
6,116 |
9.30 |
% |
$ |
238,027 |
|
5,910 |
9.93 |
% |
|||||
| Securitizations |
|
3,678,478 |
|
53,072 |
5.77 |
% |
|
3,020,624 |
|
39,541 |
5.24 |
% |
|||||
| Total debt - portfolio related |
|
3,941,506 |
|
59,188 |
6.01 |
% |
|
3,258,651 |
|
45,451 |
5.58 |
% |
|||||
| Corporate debt |
|
290,000 |
|
6,155 |
8.49 |
% |
|
215,000 |
|
4,139 |
7.70 |
% |
|||||
| Total debt | $ |
4,231,506 |
$ |
65,343 |
6.18 |
% |
$ |
3,473,651 |
$ |
49,590 |
5.71 |
% |
|||||
| Net interest spread - portfolio related (2) | 2.97 |
% |
2.66 |
% |
|||||||||||||
| Net interest margin - portfolio related | 3.54 |
% |
3.24 |
% |
|||||||||||||
| Net interest spread - total company (3) | 2.80 |
% |
2.53 |
% |
|||||||||||||
| Net interest margin - total company | 2.98 |
% |
2.78 |
% |
|||||||||||||
| (1) Annualized. | |||||||||||||||||
| (2) 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. | |||||||||||||||||
| (3) Net interest spread — total company is the difference between the rate earned 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) |
|||||||||||||||
Quarters: |
|||||||||||||||
| Core Net Income | |||||||||||||||
| Quarter Ended | |||||||||||||||
| ($ in thousands) | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | ||||||||||
| Net Income | $ |
14,778 |
$ |
17,251 |
$ |
17,355 |
|
$ |
12,086 |
$ |
12,183 |
||||
| Tax liability reduction |
|
- |
|
- |
|
(1,866 |
) |
|
- |
|
- |
||||
| Equity award & ESPP costs |
|
1,140 |
|
998 |
|
673 |
|
|
832 |
|
745 |
||||
| Core Net Income | $ |
15,918 |
$ |
18,249 |
$ |
16,161 |
|
$ |
12,918 |
$ |
12,928 |
||||
| Diluted weighted average common shares outstanding |
|
35,600 |
|
35,439 |
|
34,991 |
|
|
34,731 |
|
34,140 |
||||
| Core diluted earnings per share | $ |
0.45 |
$ |
0.51 |
$ |
0.46 |
|
$ |
0.37 |
$ |
0.38 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801859924/en/
Investors and Media:
Chris Oltmann
(818) 532-3708
Source: Velocity Financial, Inc.
FAQ
What was Velocity Financial's net income for Q2 2024?
How much did Velocity Financial's loan production grow in Q2 2024?
What was Velocity Financial's portfolio net interest margin in Q2 2024?
How much did Velocity Financial's total loan portfolio grow year-over-year?
