Exhibit 99 Velocity Financial, Inc. Reports Second Quarter 2025 Results Second Quarter Highlights Financial Results Portfolio Liquidity and Capitalization Westlake Village, CA – August 7, 2025 – Velocity Financial, Inc. (NYSE: VEL) (Velocity or the Company), a leader in business purpose loans, reported net income of $26.0 million and core net income of $27.5 million for 2Q25, compared to $14.8 million and $15.9 million, respectively, for 2Q24. Earnings and core earnings per diluted share were $0.69 and $0.7 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (I.R.S. Employer Identification No.) For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _____ Commission File Number: 001-39183 Velocity Financial, Inc. (Exact Name of Registrant as Specified in its Cha ...

Velocity Financial (VEL) Q2 2025 Earnings Call August 07, 2025 05:00 PM ET Speaker0Good day, and welcome to the Velocity Financial Second Quarter twenty twenty five Conference Call. All participants will be in a listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Chris Oltman, Director of Investor Relations. Please go ahead.Speaker1Thanks, Danielle. Hello, everyone. Thank you for joining us today for a discussion of Velocity's second quarter twenty twe ...

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 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. Confidential 2 2Q25 Highlights 2Q25 Results Presentation August 7, 2025 Forward-looking statements Some of the statements contained i ...

Financial Performance - Net income for Q1 2025 was $18.9 million, a 9.5% increase from $17.3 million in Q1 2024, with diluted EPS rising to $0.51 from $0.49[4] - Core net income reached $20.3 million, up 11.0% from $18.2 million in Q1 2024, with core diluted EPS increasing to $0.55 from $0.51[4] - Net revenue for 1Q25 was $69.1 million, a 27.4% increase from $54.2 million in 1Q24, driven by strong portfolio net interest income growth and unrealized fair value gains[18] - Total net interest income was $35.6 million for 1Q25, up 25.2% from $28.5 million in 1Q24, with portfolio net interest income at $43.7 million, also a 25.2% increase[18] - Net income attributable to Velocity Financial, Inc. for the quarter was $18,887,000, compared to $17,251,000 in the same quarter last year, showing an increase of 9.5%[46] - Core net income for the quarter was $20,253,000, up from $18,249,000 in the same quarter last year, which is a growth of 11.0%[52] - Basic earnings per share for the quarter was $0.55, compared to $0.52 in the same quarter last year, reflecting an increase of 5.8%[46] Loan Production and Portfolio - Record loan production of $640.4 million in UPB, representing a 69.1% increase from $378.7 million in Q1 2024[4] - Total loan portfolio was $5.4 billion in UPB, a 27.3% increase from $4.3 billion in Q1 2024, driven by a 19.8% growth in Investor 1-4 Rental loans[12] - The average loan portfolio balance increased to $5,214,186,000 from $4,159,412,000 in the same quarter last year, representing a growth of 25.4%[48] Nonperforming Loans and Credit Quality - Nonperforming loans (NPL) as a percentage of Held for Investment (HFI) loans were 10.8%, slightly up from 10.1% in Q1 2024[4] - Nonperforming loans (NPL) reached $587.8 million as of March 31, 2025, representing 10.8% of loans held for investment (HFI), an increase from $432.6 million and 10.1% a year earlier[15] - The provision for credit losses was $1,872,000, compared to a reversal of $1,002,000 in the same quarter last year, indicating a shift in credit quality assessment[46] Operating Expenses - Operating expenses totaled $42.2 million for 1Q25, a 36.0% increase from $31.0 million in 1Q24, primarily due to higher production-driven compensation expenses[20] - Compensation expenses rose to $21.7 million in 1Q25, compared to $15.4 million in 1Q24, reflecting increased commission compensation on higher production volume[20] - Total operating expenses for the quarter were $42,190,000, up from $31,011,000 in the same quarter last year, indicating a rise of 36.0%[46] Liquidity and Capital - Liquidity as of March 31, 2025, was $75.6 million, with total available warehouse line capacity of $238.2 million[4] - Total assets as of March 31, 2025, were $5,971.53 million, an increase from $5,527.41 million as of December 31, 2024[42] - Total loans, net, increased to $5,614.21 million as of March 31, 2025, compared to $5,187.07 million as of December 31, 2024[42] - Cash and cash equivalents rose to $51.68 million as of March 31, 2025, up from $49.90 million as of December 31, 2024[42] - Book value per share increased to $16.19 as of March 31, 2025, compared to $15.70 as of December 31, 2024[42] - Stockholders' equity grew to $566.22 million as of March 31, 2025, from $520.22 million as of December 31, 2024[42] Securitization and Interest Rates - The weighted average loan-to-value ratio was 66.1% as of March 31, 2025, down from 67.6% in Q1 2024[12] - The weighted average rate on outstanding securitizations was 5.87% as of March 31, 2025, an increase of 44 basis points from the previous year[22] - The company completed one securitization in 1Q25 totaling $342.8 million with a weighted average rate of 6.7%, down from 7.9% in 1Q24[22] - The net interest margin - portfolio related for the quarter was 3.35%, consistent with the previous quarter, indicating stable performance[48] - The company reported a net interest spread - total company of 2.75%, an increase from 2.62% in the same quarter last year, showing improved efficiency[48] Future Outlook and Risks - The company expects solid investor loan demand to continue, driven by strong financing demand in both traditional commercial and residential rental property markets[6] - Forward-looking statements indicate potential risks including general economic conditions and regulatory changes that may impact future results[38]

Financial Data and Key Metrics Changes - The company originated $640 million in new loans, a 69% increase year-over-year, driving a 27% increase in net revenue and a 17% increase in core pretax earnings [5][8] - Core earnings per share increased to $0.55 from $0.51 a year ago, marking the second-best quarterly earnings in company history [8] - The total loan portfolio reached just under $5.5 billion, a 7.8% increase from year-end 2024 and a 27.3% increase year-over-year [13][14] Business Line Data and Key Metrics Changes - The weighted average coupon on new held-for-investment originations was strong at 10.5%, with a five-quarter average trend of 10.8% [12] - The weighted average loan-to-value ratio for the quarter was just under 63%, indicating tight credit levels [13] - Nonperforming loans remained stable at 10.8%, consistent with the previous quarter [16][17] Market Data and Key Metrics Changes - The company reported strong demand across all property types, with a recent shift towards commercial loans [5][22] - The real estate markets are functioning well, with healthy investor demand and participation in offerings despite market volatility [6][22] Company Strategy and Development Direction - The company aims to grow its portfolio to $10 billion over the next five years, requiring additional headcount and potential expansion into new geographic areas [49][50] - The focus remains on leveraging technology to scale the business while minimizing headcount increases [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong market demand and positive credit resolutions [22] - The company remains optimistic about earnings for the rest of the year, with expectations of stable origination yields [26][27] Other Important Information - The company completed four successful debt transactions and issued three new securitizations, indicating robust capital market activity [6][20] - Total liquidity as of March 31 was $75.6 million, with significant available warehouse line capacity [20] Q&A Session Summary Question: Will Q2 NIM be similar to Q1? - Management indicated that Q2 NIM is expected to be in the range of 3.35% to 3.5%, which is considered normal [24][25] Question: What is the outlook for new origination yields? - Management expects yields to remain stable, with potential for a decrease later in the year if the Federal Reserve continues to cut rates [26][27] Question: Is the increase in commercial demand due to borrowers being shut out of other channels? - Management clarified that the increase is primarily due to the establishment of a new commercial division rather than a shift in demand [31][32] Question: What will the raised capital be used for? - The raised capital will be used to continue making more loans, with a focus on growing the portfolio [36][37] Question: What is the current total headcount and office locations? - The company currently has 323 employees and operates from five office locations [46][47] Question: What is the long-term vision for the company? - The company aims to grow its portfolio to $10 billion in five years, with a focus on technology to enhance productivity [49][50]

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]