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].

We introduced Velocity Financial (NYSE: VEL ) here and provided an update here . The company produced another strong quarter, while shares are still stuck in the same trading range.He runs SHU Growth Portfolio where he offers wide coverage of several small companies with high growth possibilities. He has a buy and hold approach with tranche purchases of stocks of interest. The service features an illustrative portfolio to incorporate into your portfolio, buy alerts, weekend stock and market updates, and a c ...

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]

Velocity Financial, Inc. (NYSE:VEL) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Chris Oltmann - Director, Investor Relations Chris Farrar - President & Chief Executive Officer Mark Szczepaniak - Chief Financial Officer Conference Call Participants Steven Laws - Raymond James Steve Delaney - Citizen Capital Markets Eric Hagan - BTIG Operator Good day, and welcome to the Velocity Financial, Inc. Fourth Quarter and Full Year 2024 Conference Call. All participants will be in l ...

Velocity Financial (VEL) Q4 2024 Earnings Call March 07, 2025 01:08 AM ET Company Participants Christopher Oltmann - Treasurer & Director of Investor RelationsChristopher Farrar - Co-Founder, CEO & DirectorMark Szczepaniak - Chief Financial OfficerStephen Laws - Managing DirectorEric Hagen - Managing Director Conference Call Participants Steven Delaney - Analyst Operator Good day, and welcome to the Velocity Financial Fourth Quarter and Full Year twenty twenty four Conference Call. All participants will be ...

Velocity Financial (VEL) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.66%. A quarter ago, it was expected that this company would post earnings of $0.47 per share when it actually produced earnings of $0.47, delivering no surprise.Over the last four quarters, the company has sur ...

Financial Performance - Net income for 4Q24 was $206 million, an increase of 186% compared to $174 million in 4Q23[7] - Core net income for 4Q24 increased by 346% to $218 million from $162 million in 4Q23[7] - Full year diluted EPS increased by $039 to $191, up from $152 in 2023[7] - GAAP book value per share as of December 31, 2024, was $1570, a 53% increase from September 30, 2024[13] - Adjusted book value per share as of December 31, 2024, was $1873[13] Loan Production and Portfolio - Loan production in 4Q24 reached $5635 million in UPB, an 182% increase from 3Q24 and a 600% increase from 4Q23[7, 15] - The total loan portfolio reached $51 billion in UPB as of December 31, 2024, a 241% increase from $41 billion in UPB as of December 31, 2023[7, 18] - The WAC of the portfolio was 953% as of December 31, 2024, an increase from 888% as of December 31, 2023[18] Asset Quality and Resolution - Nonperforming Loans (NPL) were 107% of HFI loans as of December 31, 2024[7, 25] - 4Q24 NPL resolutions realized gains of $56 million, or 1070%, of UPB resolved[7] - NPL resolution totaled $794 million in UPB, realizing 1070% of UPB resolved compared to $701 million in UPB and realization of 1022% of UPB resolved for 4Q23[30] Financing and Liquidity - Completed securitizations totaling $2929 million and $2939 million, respectively, of securities issued in 4Q24[7] - Liquidity of $959 million and total available warehouse line capacity of $4350 million as of December 31, 2024[8] - Two securitization completed during 4Q24, totaling $5868 million of securities issued with a weighted average rate of 60%[39]

Financial Data and Key Metrics Changes - The company released its Third Quarter 2024 results, which are available on its Investor Relations website [4] - The call may include forward-looking statements that are uncertain and outside of the company's control, with actual results potentially differing materially [5] Business Line Data and Key Metrics Changes - Specific details regarding changes in business line data and key metrics were not provided in the available content Market Data and Key Metrics Changes - Specific details regarding changes in market data and key metrics were not provided in the available content Company Strategy and Development Direction and Industry Competition - The company has not disclosed specific strategic initiatives or competitive positioning in the available content Management's Comments on Operating Environment and Future Outlook - Management has indicated that the content of the call contains time-sensitive information that is accurate only as of the date of the call, with no commitment to update forward-looking statements [5] Other Important Information - The call included a reminder about the potential risks and factors that could affect results, which are detailed in the company's filings with the Securities and Exchange Commission [5] Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content

Financial Performance - Net income for Q3 2024 was $15.8 million, a 30.8% increase from $12.1 million in Q3 2023, with diluted EPS rising to $0.44 from $0.35[2] - Core net income reached $16.9 million, up 31.2% from $12.9 million in Q3 2023, with core diluted EPS increasing to $0.47 from $0.37[2] - Net revenue for 3Q24 was $55.9 million, a 25.3% increase from $44.6 million in 3Q23, driven by strong portfolio growth[13] - Net interest income after provision for loan losses was $35.1 million, a 29.1% increase from $27.2 million in 3Q23[13] - Net income attributable to Velocity Financial, Inc. for Q3 2024 was $15,803, compared to $12,086 in Q3 2023, marking a 30.2% increase[36] - Core net income for Q3 2024 was $16,949, up from $12,918 in Q3 2023, indicating a year-over-year growth of 31.4%[38] Loan Production and Portfolio - Loan production totaled $476.8 million in UPB, marking a 64.1% increase from $290.6 million in Q3 2023[9] - Total loan portfolio reached $4.8 billion in UPB, a 22.6% increase from $3.9 billion in UPB as of September 30, 2023[8] - Total HFI loans increased to $4.73 billion, up 22.7% from $3.86 billion in the same quarter last year[10] - The average loan portfolio balance for Q3 2024 was $4,578,911, compared to $3,773,630 in Q3 2023, representing a year-over-year increase of 21.3%[37] - The company aims for a $5 billion loan portfolio by 2025, supported by strong production volume growth[4] Interest and Margins - The portfolio net interest margin (NIM) improved to 3.60%, a 26 basis points increase from 3.34% in Q3 2023[2] - The net interest margin for the total company improved to 3.06% in Q3 2024, compared to 2.90% in Q3 2023[37] - The weighted average total portfolio yield was 9.18%, an increase of 80 basis points from September 30, 2023[9] - Interest income for Q3 2024 reached $105,070, an increase of 32.8% compared to $79,088 in Q3 2023[36] Nonperforming Loans - Nonperforming loans as a percentage of Held for Investment (HFI) loans was 10.6%, slightly up from 10.1% in Q3 2023[2] - Nonperforming loans (NPL) reached $503.9 million as of September 30, 2024, representing 10.6% of total HFI loans, an increase from $387.7 million and 10.1% a year earlier[11] - Resolutions of nonperforming loans and real estate owned totaled $68.6 million in UPB, with realized gains of $2.3 million[2] - NPL resolution totaled $68.6 million in UPB for 3Q24, realizing 103.4% of UPB resolved compared to $65.7 million and 101.8% for 3Q23[21] Operating Expenses - Operating expenses totaled $34.6 million for 3Q24, a 26.6% increase from $27.3 million in 3Q23, primarily due to higher production volume[16] - Compensation and employee benefits rose to $17.6 million, a 40.4% increase from $12.5 million in 3Q23, driven by higher commissions[15] - Total operating expenses for Q3 2024 were $34,613, a slight increase from $27,334 in Q3 2023, representing a year-over-year increase of 26.8%[36] Assets and Liabilities - Total assets increased to $5,202,474 thousand as of September 30, 2024, up from $4,873,393 thousand as of June 30, 2024, representing a growth of 6.7%[35] - Total liabilities increased to $4,714,785 thousand, up from $4,398,646 thousand, reflecting a growth of 7.2%[35] - Stockholders' equity increased to $484,636 thousand, up from $471,323 thousand, marking a growth of 2.8%[35] Securitization and Other Income - The company completed one securitization during 3Q24, totaling $253.6 million of securities issued with a weighted average rate of 6.9%, down from 7.6% in 3Q23[18] - Total other operating income was $20.7 million for 3Q24, an increase from $17.4 million in 3Q23[14] - Gain on disposition of loans was $2.3 million for 3Q24, driven by loans transferred to Real Estate Owned (REO)[14] Future Outlook - The company will host a conference call on November 7, 2024, to review 3Q24 financial results[22]

Core Viewpoint - Velocity Financial reported quarterly earnings of $0.47 per share, matching the Zacks Consensus Estimate and showing an increase from $0.37 per share a year ago [1] - The company posted revenues of $35.06 million for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 2.89% and up from $27.37 million year-over-year [2] Earnings Performance - The earnings surprise for the previous quarter was 4.65%, with actual earnings of $0.45 per share compared to an expected $0.43 [1] - Over the last four quarters, the company has exceeded consensus EPS estimates three times [1] Revenue Insights - Velocity Financial has topped consensus revenue estimates only once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.48, with expected revenues of $37.8 million, and for the current fiscal year, the estimate is $1.91 on revenues of $135.8 million [7] Stock Performance - Since the beginning of the year, Velocity Financial shares have increased by approximately 13.8%, while the S&P 500 has gained 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Mortgage & Related Services industry, to which Velocity Financial belongs, is currently ranked in the top 8% of over 250 Zacks industries [8] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]