Group 1 - Velocity Financial (NYSE: VEL) is a vertically integrated real estate finance company that has shown promise, yet its shares have not performed as expected [1] - The company is part of a broader investment strategy that focuses on small companies with high growth potential, utilizing a buy and hold approach with tranche purchases [2] - The analyst has a beneficial long position in VEL shares, indicating confidence in the company's future performance [3]

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].

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 [4][12] - Core earnings per share increased to $0.55 from $0.51 a year ago, marking the second-best quarterly earnings in company history [7] - 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] - Non-performing loans remained stable at 10.8%, consistent with previous quarters [15][16] Market Data and Key Metrics Changes - The company reported strong demand across all property types, with a recent shift towards commercial loans [4] - The real estate markets are functioning well, with healthy investor demand and participation in offerings despite market volatility [5][21] Company Strategy and Development Direction - The company aims to grow its portfolio to $10 billion over the next five years, focusing on technology to scale the business without significantly increasing headcount [47][49] - The company has been active in capital markets, completing four successful debt transactions and issuing three new securitizations [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong production and healthy demand in real estate markets [21] - The company does not anticipate material impacts from external factors such as tariff discussions [21] Other Important Information - The company has a total liquidity of $75.6 million, comprised of cash and available liquidity on unfinanced collateral [19] - The CECL loan loss reserve at the end of the quarter was $5 million, slightly above the expected normal range due to macroeconomic forecasts [17][18] Q&A Session Summary Question: Will the NIM remain stable in Q2? - Management indicated that the NIM is expected to be around 3.35% to 3.5%, which is considered normal [23] 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 [25][26] 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 small commercial division rather than a demand issue [30] 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 [34] Question: What is the current total headcount and office locations? - The company has a total headcount of 323 and operates from five office locations [43][45] Question: What is the long-term vision for the company? - The company aims to grow its portfolio to $10 billion in five years while leveraging technology to enhance productivity [47][49]

Financial Performance - Net income reached $189 million, a 95% increase compared to $173 million in 1Q24[7] - Core net income increased by 110% to $203 million from $182 million in 1Q24[7] - Diluted EPS increased to $055, up from $051 per share in 1Q24[7] - GAAP book value per share increased by 32% to $1619 from $1570 as of December 31, 2024[14] Loan Production and Portfolio - Loan production reached a record of $6404 million in UPB, a 137% increase from 4Q24 and a 691% increase from 1Q24[7] - The total loan portfolio was $54 billion in UPB, a 273% increase from $43 billion in UPB as of March 31, 2024[7] - The UPB of fair value option (FVO) loans was $31 billion, or 577% of total loans[21] Asset Quality and Resolution - Nonperforming loans (NPL) as a % of HFI loans were 108%, relatively consistent with 107% as of December 31, 2024, and 101% as of March 31, 2024[7] - 1Q25 NPA resolutions realized gains of $19 million, or 1024%, of UPB resolved[7] - NPA resolutions totaled $764 million in UPB, realizing 1024% of UPB resolved, compared to $545 million in UPB and realization of 1023% of UPB resolved for 1Q24[32] Financing and Capital - The company completed one securitization during 1Q25, totaling $3428 million of securities issued with a weighted average rate of 67%[7] - Collapsed VCC 2023-1R which released $526 million of marketable retained securities after paying off the associated debt[7] - Issued 16 million common shares, realizing net proceeds of $288 million through Velocity's ATM offering program at an accretive to book value WAP of $1835[7]

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

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

Core Insights - Velocity Financial (NYSE: VEL) has reported another strong quarter, although its shares remain within the same trading range [1] Company Overview - Velocity Financial continues to demonstrate robust performance in its quarterly results, indicating potential for growth despite the current trading limitations [1] Investment Strategy - The investment approach involves a buy and hold strategy with tranche purchases, focusing on small companies with high growth potential [2]

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