Financial Data and Key Metrics Changes - The company reported a core net income increase of 77% year-over-year, marking a record quarter and the best year in its history [32][38] - The total loan portfolio reached $4.1 billion, a 5% increase from Q3 and a 16% increase year-over-year [11][12] - The net interest margin (NIM) increased by 18 basis points from Q3 and 68 basis points year-over-year, reflecting strong growth in originations and improved portfolio yield [13][36] Business Line Data and Key Metrics Changes - Loan production for Q4 was over $352 million, a 21% increase from $290 million in Q3 and a nearly 27% increase year-over-year [9][10] - The weighted average coupon for new originations remained constant at 11% throughout the year, with a weighted average loan-to-value (LTV) ratio of 65% in the last six months of 2023 [10][12] Market Data and Key Metrics Changes - The company noted that banks continue to be constrained in extending credit, which has allowed it to grow its portfolio with compelling risk-adjusted spreads [33][36] - The securitization market showed improvement, benefiting from lower base rates and tighter spreads, leading to a significant decrease in the cost of funds [35][36] Company Strategy and Development Direction - The company aims to grow its portfolio to at least $5 billion by 2025, focusing on delivering value to customers and shareholders [37][23] - The management emphasized the importance of maintaining credit discipline while pursuing growth opportunities [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market position, expecting strong demand and favorable asset resolutions in 2024 [22][23] - The company highlighted the ongoing stress in some segments of the larger commercial real estate markets but noted healthy demand in its niche [33][36] Other Important Information - The company completed a securitization deal in Q4 and issued $75 million of senior secured notes to support growth [20][21] - The nonperforming loan (NPL) rate decreased to 9.7% from 10.1% at the end of Q3, reflecting successful collection efforts [14][15] Q&A Session Summary Question: Outlook for production and funding in 2024 - Management indicated that production is expected to grow, with a mix of 1 to 4 family loans dominating, and they plan to securitize every 2 to 3 months [25][45] Question: Thoughts on the Century acquisition and fee income - Management expects significant fee income from the Century acquisition in the second half of the year, with a pipeline nearly 4 times larger than last year [26] Question: Risk management perspective on loan growth - Management emphasized the importance of maintaining credit discipline and not sacrificing margins for volume [48][49] Question: Expectations for quarterly production numbers - Management did not provide exact guidance but expected growth throughout the year, consistent with previous trends [51] Question: Capital growth support from recent fundraising - The recent capital raise provides a long runway for growth ambitions, with retained earnings also fueling expansion [52] Question: Success in asset resolution and delinquency management - Management attributed success to disciplined underwriting and a talented asset management team, with favorable resolution times varying by state [69][70]

Exhibit 99 Investors and Media: Chris Oltmann (818) 532-3708 Velocity Financial, Inc. Reports Fourth Quarter and Full-Year 2023 Results Fourth Quarter Highlights: Full-Year 2023 Highlights: • Net income of $17.4 million, up 105.1% from $8.5 million for 4Q22. Diluted EPS of $0.50, up $0.25 from $0.25 per share for 4Q22 • Core net income (1) of $16.2 million, up 77.2% from $9.1 million for 4Q22. Core diluted EPS(1) of $0.46, up $0.19 from $0.27 per share for 4Q22 • Loan production of $352.1 million in UPB, a ...

Velocity Financial, Inc. (NYSE:VEL) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET Company Participants Chris Oltmann - Treasurer Chris Farrar - President and CEO Mark Szczepaniak - Chief Financial Officer Conference Call Participants Stephen Laws - Raymond James Sarah Barcomb - BTIG Steve Delaney - JMP Securities Operator Good day and welcome to the Velocity Financial Q3 2023 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is be ...

Investor 1-4 Mixed-Use Multi-Family Commercial > 3Q23 Results Presentation November 2, 2023 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-loo ...

Loan Portfolio and Performance - As of September 30, 2023, the company's loan portfolio totaled $3.9 billion, with an average loan balance of approximately $390 thousand[136]. - The total loans increased to $3.88 billion as of September 30, 2023, from $3.72 billion as of June 30, 2023[159]. - The unpaid principal balance of loans held for investment as of September 30, 2023, was $3.86 billion, an increase from $3.51 billion as of December 31, 2022[165]. - Total loan originations for Q3 2023 amounted to $290.6 million, an increase of $31.9 million from $258.6 million in Q2 2023, but a decrease of $166.7 million from $457.3 million in Q3 2022[164]. - The company originated 765 loans held for investment in Q3 2023, with an average loan size of $355, and an average coupon of 11.08%[164]. - The total performing loans as of September 30, 2023, were $3.47 billion, representing 89.9% of the total loans held for investment[175]. Financial Results - For the three months ended September 30, 2023, the company generated pre-tax income of $17.2 million and net income of $12.2 million[138]. - Net income for the three months ended September 30, 2023, was $12.1 million, compared to $12.2 million for the same period in 2022[249]. - Net income attributable to Velocity Financial, Inc. was $12.1 million for the three months ended September 30, 2023, compared to $10.0 million for the same period in 2022, marking a 11% increase[220]. - The company’s return on equity was 11.87% for Q3 2023, slightly down from 12.21% in Q3 2022[187]. - Total operating income for the nine months ended September 30, 2023, was $44.2 million, an increase of $31.3 million compared to $12.9 million for the same period in 2022, driven by fair value option accounting on new loan originations[234]. Interest Income and Expenses - The annualized yield on the total portfolio for the three months ended September 30, 2023, was 8.38%[136]. - Interest income increased by $15.7 million to $79.1 million for the three months ended September 30, 2023, compared to $63.4 million for the same period in 2022, primarily due to higher portfolio balances and an increase in average loan yield from 7.88% to 8.38%[222]. - Interest expense on portfolio-related debt was $47,583 thousand for the three months ended September 30, 2023, with a rate of 5.63%[197]. - Interest expense - portfolio related increased from $34.6 million for the three months ended September 30, 2022, to $47.6 million for the same period in 2023, primarily due to a higher loan portfolio and increased interest rates[226]. Loan Losses and Nonperforming Loans - Nonperforming loans represented 10.0% of total loans as of September 30, 2023, up from 7.4% a year earlier[159]. - The allowance for loan losses as of September 30, 2023, was $4.7 million, a decrease from $4.9 million as of December 31, 2022, and $5.3 million as of September 30, 2022[172]. - The provision for loan losses for Q3 2023 was $154,000, compared to $580,000 in Q3 2022[174]. - The company resolved $56.9 million of non-performing loans in Q3 2023, up from $43.6 million in Q2 2023 and $38.4 million in Q3 2022[177]. - Average non-performing loans for the nine months ended September 30, 2023, were $326.5 million, with charge-offs of $1.3 million, resulting in a charge-off rate of 0.53%[181]. Securitization and Debt - The company completed two securitizations during the quarter, issuing securities of $81.6 million and $234.7 million[143]. - The company has executed thirty securitized debt transactions, resulting in over $6.2 billion in gross debt proceeds since May 2011[137]. - The total outstanding bond balances for securitized debts as of September 30, 2023, amounted to $3.24 billion, an increase from $2.79 billion as of December 31, 2022[264]. - 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%[266]. Interest Rate Management - The company began utilizing forward starting interest rate derivative instruments to manage exposure to interest rate volatility during the quarter[144]. - The company plans to manage its exposure to interest rate risk by utilizing financial instruments, including forward starting payer interest rate swaps and interest rate swaption structures[275]. - The company acknowledges that fluctuations in interest rates will impact both the level of income and expense recorded on most of its assets and liabilities[275]. - The company is exposed to interest rate risk, which may result in economic losses reflected as a loss of future net interest income and/or a loss of current fair values[275]. Operational Expenses - Total operating expenses for the three months ended September 30, 2023, were $27.3 million, up from $13.2 million in the same period of 2022, reflecting increased operational costs[220]. - Compensation and employee benefits increased by $5.7 million to $12.5 million for the three months ended September 30, 2023, and by $14.5 million to $33.2 million for the nine months ended September 30, 2023, compared to the same periods in 2022[237]. - Loan servicing expenses rose from $3.3 million to $4.9 million for the three months ended September 30, 2023, and from $9.1 million to $13.0 million for the nine months ended September 30, 2023, primarily due to an increase in the total loan portfolio[240]. Liquidity and Cash Flow - Total liquidity, including available warehouse capacity, was $654.0 million as of September 30, 2023, comprising $29.4 million in cash and $593.6 million in available warehouse capacity[252]. - Cash provided by operating activities was $22.7 million for the nine months ended September 30, 2023, compared to $8.7 million for the same period in 2022[253]. - Net cash used in investing activities was $(360.8) million for the nine months ended September 30, 2023, compared to $(819.1) million for the same period in 2022[255]. Forward-Looking Statements - The company will not update any forward-looking statements to reflect events or circumstances that occur after the date on which the statement is made, except as required by applicable law[274]. - The company’s forward-looking statements may include expectations regarding operations, loan originations, and the resolution of non-performing loans[273]. - Important factors that could cause actual results to differ from anticipated results are discussed in the Quarterly Report and other documents filed by the company[274].

Velocity Financial, Inc. (NYSE:VEL) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Chris Oltmann – Treasurer Chris Farrar – President and Chief Executive Officer Mark Szczepaniak – Chief Financial Officer Conference Call Participants Steve DeLaney – JMP Securities Stephen Laws – Raymond James Operator Good afternoon and welcome to the Velocity Financial Second Quarter 2023 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note th ...

Investor 1-4 Mixed-Use Multi-Family Commercial > 2Q23 Results Presentation August 3, 2023 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 ...

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 June 30, 2023 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 Charter) Delaware 46-0659719 (State or o ...

Velocity Financial, Inc. ( (NYSE:VEL) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Chris Oltmann - Treasurer and Head IR Chris Farrar - President and Chief Executive Officer Mark Szczepaniak - Chief Financial Officer Conference Call Participants Stephen Laws - Raymond James Steve Delaney - JMP Securities Operator Good afternoon and welcome to the Velocity Financial First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I ...

Investor 1-4 Mixed-Use Multi-Family Commercial > 1Q23 Results Presentation May 4, 2023 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-looking ...