Velocity Financial(US:VEL)2020-11-17 19:17Financial Performance - Net income reached $3.5 million and core earnings were $3.9 million, resulting in a diluted EPS of $0.11[9] - Net income increased by 63% compared to the previous quarter, primarily due to the normalization of provision expense, which was $0.4 million[9] - Portfolio net interest margin increased by 23 basis points (bps) from the second quarter of 2020 to 3.77%[9] - Core earnings increased by $0.5 million from $3.4 million in 2Q20 to $3.9 million in 3Q20[15] - Book value per share increased from $10.26 as of June 30, 2020, to $10.44 as of September 30, 2020[15] Loan Portfolio and Production - September loan applications totaled $226 million in unpaid principal balance (UPB)[7] - Loan production totaled $8 million in UPB in September[7] - Approximately $335 million in UPB of loans in forbearance were brought current[8] - The total loan portfolio as of September 30, 2020, was $1.99 billion in UPB, a decrease from $2.06 billion as of June 30, 2020[21] - The company transferred approximately $214 million in UPB of short-term loans from held for sale (HFS) to held for investment (HFI) during the third quarter[21] Asset Resolution - Resolutions of delinquent loans in 3Q20 were 103.5% of assets resolved[8] - Nonaccrual loans paid in full during 3Q20 totaled $9.7 million in UPB with a $0.73 million net gain on resolution[18] - REO sales totaled $1.2 million for a net loss of $(0.31) million[18]