Velocity Financial, Inc. Stock Price, News & Analysis

Velocity Financial reported strong second-quarter results, with net income of $10.6 million and diluted EPS of $0.31, up from $9.5 million or $0.28 in 2Q21. Core net income also increased by 25.9% year-over-year. Notably, loan production rose 73.6% to $445.4 million. The total loan portfolio reached $3.1 billion, a 49.3% increase from the previous year. Despite these positives, the net interest margin fell to 4.10%, down from 4.83% in 2Q21 due to lower interest rates.

Velocity Financial, Inc. (NYSE:VEL) will announce its second quarter 2022 financial results on August 4, 2022, after the market closes. The company's management will host a conference call at 3:00 p.m. PT / 6:00 p.m. ET to discuss these results. The call will be accessible via a live webcast on their Investor Relations website, and an audio replay will be available after the call. Based in Westlake Village, California, Velocity specializes in investor loans secured by residential and small commercial properties.

Velocity Financial, Inc. (NYSE: VEL) announced its CFO, Mark Szczepaniak, was honored as a finalist and ultimately awarded by the Los Angeles Times at the 2nd Annual CFO Leadership Awards, recognizing leadership among small to mid-sized public companies. CEO Chris Farrar praised Szczepaniak's contributions within the executive committee. The awards ceremony emphasized the importance of CFO leadership, with details on all recipients to be published in the L.A. Times' C-Suite Magazine on July 24, 2022. Velocity is a real estate finance firm originating loans secured by residential rental and small commercial properties.

Velocity Financial, Inc. (NYSE: VEL) announced that Kroll Bond Rating Agency (KBRA) has upgraded and affirmed the ratings on 15 outstanding securitizations from its subsidiary, Velocity Commercial Capital, LLC. The action follows KBRA’s comprehensive surveillance review and indicates stable collateral performance with minimal losses since issuance, ranging from 0.00% to 0.58%. Nine of these securitizations experienced no losses at all. The rating upgrades reflect improved credit support and positive trends in the underlying loans.

Velocity Financial, Inc. (NYSE: VEL) reported a net income of $3.1 million and diluted EPS of $0.09 for 1Q22, down from $8.4 million and $0.24 in 4Q21. However, core net income rose to $12.4 million, a 23.1% increase from the previous quarter. Loan production hit a record of $581.4 million, up 16.8% quarter-over-quarter. The nonaccrual loan percentage decreased to 9.8% from 10.9%. The company refinanced $215 million of debt, lowering interest costs. Despite macroeconomic challenges, Velocity cites a strong capital position and robust growth opportunities in the investor real estate loans market.

Velocity Financial, Inc. (NYSE:VEL) is set to release its Q1 2022 financial results on May 5, 2022, after market close. The executive management team will host a conference call at 2:00 p.m. PT to discuss these results. Interested parties can access the live webcast through the Investor Relations section of Velocity's website. A replay of the call will be available until May 31, 2022. Velocity focuses on originating and managing investor loans for residential rental and small commercial properties across the U.S.

Velocity Financial, Inc. (NYSE: VEL) announced the issuance of $215 million in five-year Senior Secured Notes with an interest rate of 7.125%, maturing on March 15, 2027. The notes, which settled on March 15, 2022, aim to refinance existing debt while providing additional capital for new loan investments. CFO Mark R. Szczepaniak highlighted that this transaction reduces interest rates and stabilizes the company’s debt structure. The notes are not registered under the Securities Act, limiting their offer and sale in the U.S.

Velocity Financial, Inc. (NYSE: VEL) reported strong financial performance for 4Q21, with a net income of $8.4 million and diluted EPS of $0.24, reflecting a solid increase compared to 3Q21. The company achieved a record loan production volume of $497.8 million, a 46.1% quarter-over-quarter increase. Core net income rose 25.7% to $10.1 million, driven by growth in the held-for-investment loan portfolio, which increased 10.1% year-over-year to $2.5 billion. However, the portfolio net interest margin decreased to 4.27% from 4.97% in 3Q21, impacted by the collapse of higher-cost securitizations.

Velocity Financial, Inc. (NYSE: VEL) has announced significant preliminary financial and operational updates for Q4 2021. The company expects loan production of approximately $497.8 million, representing a 46% increase from the previous quarter. Projected net income ranges from $8.2 million to $8.6 million, with diluted EPS estimated between $0.24 and $0.25. Total loans held for investment are estimated at $2.5 billion, and nonperforming loans are expected to decline to between 10.3% and 10.8%. Additionally, the company completed two securitizations and acquired a majority stake in Century Health for $12.8 million.