Velocity Financial(US:VEL)2025-11-06 22:00Financial Performance - Net income reached $25.4 million, a 60.6% increase from $15.8 million in 3Q24[8] - Core net income increased by 58.9% to $26.9 million, compared to $16.9 million in 3Q24[8] - Diluted EPS rose to $0.65, up from $0.44 per share in 3Q24[8] - Core diluted EPS increased to $0.69, up from $0.47 per share in 3Q24[8] Loan Production and Portfolio - Loan production hit a new record of $739.0 million, a 55.0% increase from 3Q24[6] - The total loan portfolio reached $6.3 billion in UPB as of September 30, 2025, a 32.0% increase from $4.8 billion in UPB as of September 30, 2024[6] - Portfolio net interest margin (NIM) for 3Q25 was 3.65%, an increase of 5 bps from 3.60% for 3Q24[8] - The UPB of fair value option (FVO) loans was $4.2 billion, or 66.3% of total loans, as of September 30, 2025, an increase from $2.2 billion in UPB, or 47.1% as of September 30, 2024[19] Asset Quality and Resolution - Nonperforming loans (NPL) as a % of HFI loans decreased to 9.8%, down from 10.6% as of September 30, 2024[6] - 3Q25 NPA resolutions realized gains of $2.8 million, or 102.6%, of UPB resolved[6] - NPA resolutions totaled $108.0 million in UPB, realizing 102.6% of UPB resolved, compared to $68.6 million in UPB and realization of 103.4% of UPB resolved for 3Q24[33] Financing and Capital - Completed the 1st single counterparty securitization totaling $190.9 million of securities issued with a large money manager in July, in addition to the VCC 2025-4 securitization totaling $457.5 million of securities issued[6,9] - Liquidity of $143.5 million, consisting of $99.0 million in unrestricted cash and $44.5 million in available borrowings from unpledged loans[9] - Total available warehouse line capacity of $600.3 million[9]