Financial Data and Key Metrics Changes - The company reported a 41% increase in net revenue year-over-year, leading to a 23% increase in core earnings, reaching $0.45 per share for the quarter [4][6] - The net interest margin (NIM) widened by 30 basis points compared to Q2 2023, reflecting improved spreads from new originations [6][12] - Total loan production for Q2 was $422 million in UPB, representing an 11.5% increase from Q1 and a 63% increase from Q2 2023 [10][4] Business Line Data and Key Metrics Changes - The total loan portfolio grew to nearly $4.5 billion, a 4.6% increase from Q1 and over 20% year-over-year [11] - The weighted average coupon for new originations remained stable at 11%, while the portfolio's weighted average coupon increased to 9.25% [10][11] - Non-performing loans (NPL) slightly increased to 10.5%, but the company continues to see positive resolutions on these loans [13][7] Market Data and Key Metrics Changes - The real estate market remains strong, with continued demand for financing from borrowers, as banks are constrained [6][4] - The company issued two securitizations in Q2, totaling approximately $491 million, which were well-received by bond investors [15][5] Company Strategy and Development Direction - The company is executing its 5x25 growth strategy, aiming to reach $5 billion in UPB by 2025 [6] - The management emphasizes maintaining credit standards while capitalizing on market opportunities, particularly in an underserved niche [24][4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing healthy market conditions and expectations for continued positive NPL resolutions [15][16] - The company is prepared to adjust rates in response to market changes, maintaining a focus on spread management [25][24] Other Important Information - The company reported a net gain of over $2 million from REO activities during the quarter, compared to a slight net loss in Q1 [14] - Total liquidity at the end of Q2 was just under $84 million, with significant warehouse capacity available for future growth [15][14] Q&A Session Summary Question: Outlook on loan production levels - Management expects production levels for the remainder of the year to be similar to Q2, indicating a stable outlook [17][19] Question: Update on adjusted book value and fair value mark - Management indicated that there would likely be a positive change in the fair value mark if assessed today, influenced by recent rate drops [19] Question: Competition from banks in the market - Management noted that banks remain constrained and are not significantly competing for borrowers, allowing the company to maintain its market position [20] Question: Relationship with brokers and market presence - Management affirmed that their strong relationships with brokers and borrowers contribute to their consistent production and market presence [23] Question: Impact of potential rate cuts on loan rates - Management acknowledged that they would adjust rates in response to market changes but would maintain their spread [25] Question: Operational capacity for loan origination - Management believes they have excess capacity to increase loan production by 10% to 20% without significantly increasing costs [27] Question: Return on equity (ROE) from securitization - Management estimates ROEs are above 25% at current levels, with potential increases if spreads tighten [28]

Investor 1-4 Mixed-Use Multi-Family Commercial > 2Q24 Results Presentation August 1, 2024 Forward-looking statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, positioning, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looki ...

Exhibit 99 Second Quarter Highlights: Investors and Media: Chris Oltmann (818) 532-3708 Velocity Financial, Inc. Reports Second Quarter 2024 Results • Net income of $14.7 million, up 21.3% from $12.2 million for 2Q23. Diluted EPS of $0.42, up $0.06 from $0.36 per share for 2Q23 • Core net income (1) of $15.9 million, an increase of 23.1% from $12.9 million for 2Q23. Core diluted EPS(1) of $0.45, up from $0.38 per share for 2Q23 • Loan production of $422.2 million in UPB, an 11.5% and 63.2% increase from 1Q2 ...

Velocity Financial (VEL) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.65%. A quarter ago, it was expected that this company would post earnings of $0.40 per share when it actually produced earnings of $0.51, delivering a surprise of 27.50%. Over the last four quarters, the compa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Common stock, par value $0.01 per share VEL The New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 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 | --- | --- | |------------------------ ...

Exhibit 99 Investors and Media: Chris Oltmann (818) 532-3708 Velocity Financial, Inc. Reports First Quarter 2024 Results First Quarter Highlights: Westlake Village, CA – May 2, 2024 – Velocity Financial, Inc. (NYSE: VEL) (Velocity or the Company), a leader in business purpose loans, reported net income of $17.3 million and core net income of $18.2 million for 1Q24, compared to net income of $10.6 million and core net income of $11.4 million for 1Q23. Earnings and core earnings per diluted share were $0.49 a ...

Velocity Financial, Inc. (NYSE:VEL) Q1 2024 Earnings Conference Call May 2, 2024 5:00 PM ET Company Participants Chris Oltmann - Treasurer Chris Farrar - President & Chief Executive Officer Mark Szczepaniak - Chief Financial Officer Conference Call Participants Stephen Laws - Raymond James Steve Delaney - Citizens JMP Eric Hagen - BTIG Operator Good day, and welcome to the Velocity Financial Incorporated First Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator I ...

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 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Identification No.) Registrant's telephone number, including area code: (818) 532-3700 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | --- | --- | --- | | Title ...

Production Volume Continues Strong Growth Trend $116.3 $163.1 $154.3 $183.2 $167.1 $79.7 $73.5 $97.5 $130.3 $166.6 $20.9 $22.1 $38.8 $38.6 $45.0 $217.0 $258.6 $290.6 $352.1 $378.7 1Q23 2Q23 3Q23 4Q23 1Q24 Investor 1-4 Rental Traditional Commercial Short-term Loan Products ($ of UPB in millions) Loan Portfolio $265.0 $276.3 $390.8 1Q23 4Q23 1Q24 Investor 1-4 Rental Mixed Use Multifamily – Driven by growth in loans collateralized by Inv. 1-4 Rental and "Other" Commercial properties | --- | --- | --- | --- | | ...

Loan Originations and Portfolio - The company originated 2,955 loans totaling $1.1 billion for investment in 2023, compared to 4,135 loans totaling $1.7 billion in 2022[45]. - The company funded 2,930 loans sourced by 1,046 different mortgage brokers in 2023, representing a small portion of the approximately 885,933 state-licensed mortgage originators in the U.S.[41]. - The primary product, a 30-year fixed-rate amortizing term loan, comprised 90.0% of loan originations in 2023, reflecting strong market demand[42]. - Total loans increased to $4,072.9 million in 2023 from $3,512.5 million in 2022, representing a growth of 16.0%[120]. - Total loan originations for 2023 were $1,117.8 million, a decrease of $644.0 million or 36.6% from $1,761.9 million in 2022[125]. - The company originated 2,965 loans in 2023, a decrease from 4,135 loans in 2022[125]. Loan Portfolio Performance - As of December 31, 2023, the company's portfolio of loans held for investment totaled $4.1 billion in unpaid principal balance, with an average loan balance of approximately $389,000[45]. - The weighted average loan-to-value (LTV) ratio at origination for loans held for investment was 67.7%, with borrower equity providing significant protection against credit losses[47]. - The loan portfolio totaled $4.1 billion with an average loan balance of approximately $389,000 and a weighted average loan-to-value ratio of 67.8%[79]. - Nonperforming loans increased to $394.6 million, accounting for 9.69% of total loans in 2023, up from 8.34% in 2022[120]. - As of December 31, 2023, nonperforming loans totaled $394.6 million, representing 9.7% of the held for investment loan portfolio, an increase from $292.8 million (8.3%) in 2022[134]. - The allowance for loan losses decreased to $4.8 million in 2023 from $4.9 million in 2022[128]. - The allowance for loan losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date[99]. Financial Performance - The company generated pre-tax income of $71.1 million and net income of $52.3 million for the year ended December 31, 2023[81]. - Net income rose to $52,293,000 in 2023, up from $32,519,000 in 2022, marking a growth of 60.9%[162]. - Earnings per common share increased to $1.60 for 2023, up from $0.99 in 2022[182]. - Interest income increased by $70.4 million, or 29.3%, to $310.8 million for the year ended December 31, 2023, compared to $240.3 million for 2022[184]. - Net interest income after provision for loan losses increased by 29.1% over the prior year, driven by higher net interest income[189]. - The company grew its portfolio-related net interest income by $11.7 million or 10.4%, from $112.6 million in 2022 to $124.3 million in 2023, primarily due to new loan originations[112]. Securitization Activities - The company executed 31 securitizations of investor real estate loans, issuing $6.4 billion in principal amount of securities from 2011 to 2023[30]. - In August 2023, the company completed its first securitization collateralized by its short-term loan product, issuing $81.6 million in securities[51]. - In January 2024, the company completed the securitization of $221.1 million of investor real estate loans and issued $75 million principal amount of five-year Senior Secured Notes at an interest rate of 9.875%[88]. Operating Expenses and Management - Total operating expenses increased by 62.9%, or $38.9 million, to $100.6 million during the year ended December 31, 2023, from $61.8 million in 2022[195]. - Compensation and employee benefits increased from $30.5 million in 2022 to $48.3 million in 2023, a rise of 58.7% driven by fair value option accounting on new loan originations[197]. - Origination expenses decreased significantly from $4.0 million in 2022 to $0.5 million in 2023, a reduction of 87.0% due to improved cost management[198]. - Loan servicing expenses rose from $12.3 million in 2022 to $17.6 million in 2023, an increase of 43.4% due to a larger loan portfolio[200]. Market Conditions and Competitive Landscape - The investor real estate loan market is highly competitive, impacting the company's profitability and growth, with competitors potentially offering more favorable rates and terms[114]. - The company anticipates that future performance will depend on growing origination/acquisition volume, leveraging its existing broker network while expanding with new brokers[112]. Debt and Interest Management - The company entered into a five-year $215.0 million syndicated corporate debt agreement in March 2022, bearing interest at a fixed rate of 7.125%[51]. - Corporate debt interest expense decreased to $16,556,000 in 2023 from $29,472,000 in 2022, indicating improved cost management[167]. - Total debt increased to $3,556,411,000 in 2023 from $2,956,801,000 in 2022, reflecting a growth of 20.3%[159]. - Cost of funds for the portfolio increased to 5.58% in 2023 from 4.64% in 2022, indicating rising borrowing costs[154]. Employee and Organizational Growth - As of December 31, 2023, the company had a total of 253 employees, reflecting a 30% increase from the prior year[58].