Velocity Financial Inc

NYSE:VELUnited States

Nov 7, 2024

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• -- Earnings Flash (VEL) VELOCITY FINANCIAL Reports Q3 EPS $0.47, from 4:42PM ET on Thursday Nov 07, 2024 by MT Newswires

  4:42PM ET on Thursday Nov 07, 2024 by MT Newswires
  Companies Mentioned: VEL
  04:42 PM EST, 11/07/2024 (MT Newswires) -- ...

• Velocity Financial, Inc. Reports Third Quarter 2024 Results, from 4:15PM ET on Thursday Nov 07, 2024 by Dow Jones

  4:15PM ET on Thursday Nov 07, 2024 by Dow Jones
  Companies Mentioned: VEL
  ------- ------ ------ ------- ------ Net interest income 35,056 32,417 29,474 30,724 27,367 Provision for loan losses (69) 218 1,002 827 154 ------- ------ ------ ------- ------ Net interest income after provision for loan losses 35,125 32,199 28,472 29,897 27,213 Other operating income Gain on disposition of loans 2,291 3,168 1,699 1,482 3,606 Unrealized gain (loss) on fair value loans 35,530 17,123 18,925 39,367 (1,284) Unrealized gain (loss) on fair value securitized debt (24,995) (4,643) (2,318) (24,085) 9,692 Unrealized gain/(loss) on mortgage servicing rights (993) (373) 444 (1,208) 341 Origination fee income 6,704 5,072 4,986 3,981 3,323 Interest income on cash balance 1,676 1,731 1,631 1,716 1,342 Other income (expense) 519 483 408 418 340 ------- ------ ------ ------- ------ Total other operating income 20,732 22,561 25,775 21,670 17,360 ------- ------ ------ ------- ------ Net revenue 55,857 54,760 54,247 51,567 44,573 ------- ------ ------ ------- ------ Operating expenses Compensation and employee benefits 17,586 16,562 15,357 15,143 12,523 Origination expenses 867 749 646 173 273 Securitizations expenses 3,186 6,232 2,874 2,709 4,930 Rent and occupancy 519 617 498 551 472 Loan servicing 5,656 5,160 4,824 4,636 4,901 Professional fees 2,305 1,718 2,115 1,733 854 Real estate owned, net 1,951 1,355 2,455 2,068 1,239 Other operating expenses 2,543 2,494 2,242 2,248 2,142 ------- ------ ------ ------- ------ Total operating expenses 34,613 34,887 31,011 29,260 27,334 ------- ------ ------ ------- ------ Income before income taxes 21,244 19,873 23,236 22,307 17,239 Income tax expense 5,627 5,162 5,903 5,141 5,070 ------- ------ ------ ------- ------ Net income 15,617 14,711 17,333 17,166 12,169 ------- ------ ------ ------- ------ Net income attributable to noncontrolling interest (186) (67) 82 (189) 83 ------- ------ ------ ------- ------ Net income attributable to Velocity Financial, Inc. 15,803 14,778 17,251 17,355 12,086 ------- ------ ------ ------- ------ Less undistributed earnings attributable to participating securities 191 182 217 225 183 ------- ------ ------ ------- ------ Net earnings attributable to common shareholders $ 15,612 $ 14,596 $ 17,034 $ 17,130 $ 11,903 ======= ====== ====== ======= ====== Basic earnings (loss) per share $ 0.48 $ 0.45 $ 0.52 $ 0.53 $ 0.37 ------------------- ------- ------ ------ ------- ------ Diluted earnings (loss) per common share $ 0.44 $ 0.42 $ 0.49 $ 0.50 $ 0.35 ------------------- ------- ------ ------ ------- ------ Basic weighted average common shares outstanding 32,711 32,585 32,541 32,326 32,275 ------------------- ------- ------ ------ ------- ------ Diluted weighted average common shares outstanding 35,895 35,600 35,439 34,991 34,731 ------------------- ------- ------ ------ ------- ------ Velocity Financial, Inc. Net Interest Margin -- Portfolio Related and Total Company (Unaudited) Quarters: Quarter Ended September 30, 2024 Quarter Ended September 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 $ 3,166 $ 3,170 Loans held for investment 4,575,745 3,770,460 --------- --------- Total loans $4,578,911 $ 105,070 9.18% $3,773,630 $ 79,088 8.38% --------- --------- Debt: Warehouse and repurchase facilities $ 311,560 7,105 9.12% $ 192,855 4,943 10.25% Securitizations 3,840,480 56,766 5.91% 3,186,756 42,640 5.35% --------- -------- --------- -------- Total debt - portfolio related 4,152,040 63,871 6.15% 3,379,611 47,583 5.63% Corporate debt 290,000 6,143 8.47% 215,000 4,138 7.70% --------- -------- --------- -------- Total debt $4,442,040 $ 70,014 6.30% $3,594,611 $ 51,721 5.76% ========= ======== ========= ======== Net interest spread - portfolio related (2) 3.03% 2.75% Net interest margin - portfolio related 3.60% 3.34% Net interest spread - total company (3) 2.87% 2.63% Net interest margin - total company 3.06% 2.90% (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) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 ----------- ----------- ----------- ------------ ----------- Net Income $ 15,803 $ 14,778 $ 17,251 $ 17,355 $ 12,086 Tax liability reduction - - (1,866) - Equity award & ESPP costs 1,146 1,140 998 673 832 ----------------- ------- ------- ------- ------- ------- Core Net Income $ 16,949 $ 15,918 $ 18,249 $ 16,161 $ 12,918 ----------------- ------- ------- ------- ------- ------- Diluted weighted average common shares outstanding 35,895 35,600 35,439 34,991 34,731 Core diluted earnings per share $ 0.47 $ 0.45 $ 0.51 $ 0.46 $ 0.37
  

• *DJ Velocity Financial 3Q Net $15.8M >VEL, from 4:15PM ET on Thursday Nov 07, 2024 by Dow Jones

  4:15PM ET on Thursday Nov 07, 2024 by Dow Jones
  Companies Mentioned: VEL
  ------- ------ ------ ------- ------ Net interest income 35,056 32,417 29,474 30,724 27,367 Provision for loan losses (69) 218 1,002 827 154 ------- ------ ------ ------- ------ Net interest income after provision for loan losses 35,125 32,199 28,472 29,897 27,213 Other operating income Gain on disposition of loans 2,291 3,168 1,699 1,482 3,606 Unrealized gain (loss) on fair value loans 35,530 17,123 18,925 39,367 (1,284) Unrealized gain (loss) on fair value securitized debt (24,995) (4,643) (2,318) (24,085) 9,692 Unrealized gain/(loss) on mortgage servicing rights (993) (373) 444 (1,208) 341 Origination fee income 6,704 5,072 4,986 3,981 3,323 Interest income on cash balance 1,676 1,731 1,631 1,716 1,342 Other income (expense) 519 483 408 418 340 ------- ------ ------ ------- ------ Total other operating income 20,732 22,561 25,775 21,670 17,360 ------- ------ ------ ------- ------ Net revenue 55,857 54,760 54,247 51,567 44,573 ------- ------ ------ ------- ------ Operating expenses Compensation and employee benefits 17,586 16,562 15,357 15,143 12,523 Origination expenses 867 749 646 173 273 Securitizations expenses 3,186 6,232 2,874 2,709 4,930 Rent and occupancy 519 617 498 551 472 Loan servicing 5,656 5,160 4,824 4,636 4,901 Professional fees 2,305 1,718 2,115 1,733 854 Real estate owned, net 1,951 1,355 2,455 2,068 1,239 Other operating expenses 2,543 2,494 2,242 2,248 2,142 ------- ------ ------ ------- ------ Total operating expenses 34,613 34,887 31,011 29,260 27,334 ------- ------ ------ ------- ------ Income before income taxes 21,244 19,873 23,236 22,307 17,239 Income tax expense 5,627 5,162 5,903 5,141 5,070 ------- ------ ------ ------- ------ Net income 15,617 14,711 17,333 17,166 12,169 ------- ------ ------ ------- ------ Net income attributable to noncontrolling interest (186) (67) 82 (189) 83 ------- ------ ------ ------- ------ Net income attributable to Velocity Financial, Inc. 15,803 14,778 17,251 17,355 12,086 ------- ------ ------ ------- ------ Less undistributed earnings attributable to participating securities 191 182 217 225 183 ------- ------ ------ ------- ------ Net earnings attributable to common shareholders $ 15,612 $ 14,596 $ 17,034 $ 17,130 $ 11,903 ======= ====== ====== ======= ====== Basic earnings (loss) per share $ 0.48 $ 0.45 $ 0.52 $ 0.53 $ 0.37 ------------------- ------- ------ ------ ------- ------ Diluted earnings (loss) per common share $ 0.44 $ 0.42 $ 0.49 $ 0.50 $ 0.35 ------------------- ------- ------ ------ ------- ------ Basic weighted average common shares outstanding 32,711 32,585 32,541 32,326 32,275 ------------------- ------- ------ ------ ------- ------ Diluted weighted average common shares outstanding 35,895 35,600 35,439 34,991 34,731 ------------------- ------- ------ ------ ------- ------ Velocity Financial, Inc. Net Interest Margin -- Portfolio Related and Total Company (Unaudited) Quarters: Quarter Ended September 30, 2024 Quarter Ended September 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 $ 3,166 $ 3,170 Loans held for investment 4,575,745 3,770,460 --------- --------- Total loans $4,578,911 $ 105,070 9.18% $3,773,630 $ 79,088 8.38% --------- --------- Debt: Warehouse and repurchase facilities $ 311,560 7,105 9.12% $ 192,855 4,943 10.25% Securitizations 3,840,480 56,766 5.91% 3,186,756 42,640 5.35% --------- -------- --------- -------- Total debt - portfolio related 4,152,040 63,871 6.15% 3,379,611 47,583 5.63% Corporate debt 290,000 6,143 8.47% 215,000 4,138 7.70% --------- -------- --------- -------- Total debt $4,442,040 $ 70,014 6.30% $3,594,611 $ 51,721 5.76% ========= ======== ========= ======== Net interest spread - portfolio related (2) 3.03% 2.75% Net interest margin - portfolio related 3.60% 3.34% Net interest spread - total company (3) 2.87% 2.63% Net interest margin - total company 3.06% 2.90% (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) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 ----------- ----------- ----------- ------------ ----------- Net Income $ 15,803 $ 14,778 $ 17,251 $ 17,355 $ 12,086 Tax liability reduction - - (1,866) - Equity award & ESPP costs 1,146 1,140 998 673 832 ----------------- ------- ------- ------- ------- ------- Core Net Income $ 16,949 $ 15,918 $ 18,249 $ 16,161 $ 12,918 ----------------- ------- ------- ------- ------- ------- Diluted weighted average common shares outstanding 35,895 35,600 35,439 34,991 34,731 Core diluted earnings per share $ 0.47 $ 0.45 $ 0.51 $ 0.46 $ 0.37