Core Insights - Velocity Financial, Inc. reported a significant increase in net income for the fourth quarter and full year 2025, with net income reaching $34.8 million for 4Q25, a 69.0% increase from $20.6 million in 4Q24, and full-year net income of $105.1 million, up 53.5% from $68.4 million in 2024 [1][2][3] - The company's core net income for 2025 was $111.0 million, compared to $72.9 million in 2024, reflecting strong production and effective credit discipline [1][2] - The total loan portfolio increased to $6.5 billion as of December 31, 2025, a 28.4% rise from $5.1 billion in 2024, driven by record production volumes [1][2] Financial Performance - For 4Q25, diluted earnings per share (EPS) were $0.89, an increase of $0.32 from $0.57 in 4Q24, while core diluted EPS rose to $0.93 from $0.60 [1][2] - The net interest margin (NIM) for the portfolio was 3.59%, down 11 basis points from 3.70% in 4Q24, but still reflecting strong levels due to disciplined rate management [1][2] - Total net revenue for 4Q25 was $102.9 million, a 44.6% increase from $71.2 million in 4Q24, attributed to strong loan production and fair value gains [1][2] Loan Portfolio and Production - Loan production for 2025 totaled $2.7 billion, a 48.7% increase from $1.8 billion in 2024, marking the highest annual volume in the company's history [2] - The total loans outstanding as of December 31, 2025, included $3.1 billion in Investor 1-4 loans, $691.7 million in retail loans, and $542.6 million in office loans, among others [1][2] - Nonperforming loans (NPLs) as of December 31, 2025, totaled $554.5 million, representing 8.5% of total loans, down from 10.7% in 2024 [1][2] Credit Performance - The allowance for credit losses increased to $4.5 million as of December 31, 2025, reflecting a provision for credit losses of $5.8 million, significantly higher than $1.2 million in 2024 [2] - Charge-offs for 2025 totaled $5.5 million, compared to $1.8 million in 2024, primarily due to two large charge-offs [2] - The recovery rate for resolved NPLs was 109.0% for 2025, slightly up from 108.8% in 2024, with total resolutions amounting to $331.5 million [2] Operating Expenses - Total operating expenses for 2025 were $197.4 million, a 41.3% increase from $139.6 million in 2024, driven by higher headcount and production-related costs [1][2] - Compensation and employee benefits accounted for $90.2 million of the operating expenses, reflecting the company's growth strategy [3] Securitization and Capitalization - Velocity completed nine securitizations totaling $2.6 billion in 2025, enhancing its capital structure [2] - The company reported total available warehouse line capacity of $599.9 million and liquidity of $116.8 million as of December 31, 2025 [1][2]

Earnings Presentation FOURTH QUARTER 2025 Forward-looking statements When used in this presentation or other written or oral communications, statements that are not historical in nature, including those containing words such as "will," "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "could," "would," "may," the negative of these words or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of ...

Core Viewpoint - New York Mortgage Trust, Inc. has acquired the remaining 50% ownership interest in Constructive Loans, LLC, enhancing its strategy to diversify and scale recurring earnings through a leading operating platform [1][2]. Group 1: Acquisition Details - The acquisition is an all-cash transaction completed through a wholly owned subsidiary of the Company, marking a significant milestone in its growth strategy [1]. - This acquisition builds on the Company's initial strategic investment in Constructive made in 2021, reflecting confidence in Constructive's growth potential and value to the residential credit market [2]. Group 2: Constructive Loans Performance - Constructive has originated over $1.7 billion in business purpose loans over the last twelve months ending June 30, 2025, demonstrating solid profitability and performance since its founding in 2017 [3]. - Constructive will continue to operate as an independent subsidiary with its experienced leadership team remaining in place [3]. Group 3: Management Insights - The CEO of the Company expressed excitement about the partnership with Constructive, emphasizing that the acquisition will diversify the Company's recurring income and expand its presence in residential credit markets [4]. - The President of the Company highlighted Constructive's ability to maintain solid loan performance while expanding origination volume, positioning it well to meet the financing needs of single-family investors [4]. Group 4: Company Background - New York Mortgage Trust, Inc. is an internally managed real estate investment trust focused on acquiring, investing in, financing, and managing primarily mortgage-related residential assets [5]. - Constructive Loans, LLC specializes in rental and transitional loans for real estate investors and operates in 48 states and D.C., with a workforce of 165 employees [6].

Financial Performance - Redwood Trust's Q1 2025 total economic return was +13%[11] - The GAAP book value per share was $839 in Q1 2025[11] - The non-GAAP EAD common dividend per share was $018 in both Q4 2024 and Q1 2025[11] - GAAP segment net income for Sequoia was $258 million with a segment GAAP ROE of 28%[20] - GAAP segment net income for CoreVest was $13 million with a segment Non-GAAP EAD ROE of 20%[20] - GAAP Segment net income for Redwood Investments was $229 million[20] Business Segments - Sequoia's lock volume reached $40 billion, a 73% QoQ increase and a 125% YoY increase[20] - Aspire locked $111 million of loans after launching expanded loan products in January 2025[20] - CoreVest funded $482 million in loans, a 4% decrease QoQ but a 48% increase YoY[20] Capital Allocation and Investments - Approximately $100 million of capital was deployed into accretive Retained Operating Investments with target returns of 15% to 20%[20] - Redwood Investments represented 72% of Q1 2025 average allocated capital, totaling $15 billion[17]