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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Velocity Financial Inc | NYSE:VEL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 18.19 | 0 | 13:09:44 |
Second Quarter Highlights:
Velocity Financial, Inc. (NYSE: VEL) (Velocity or the Company), a leader in business purpose loans, reported net income of $12.2 million and core net income of $12.9 million for 2Q23, compared to net income of $10.6 million and core net income of $10.6 million in 2Q22. Earnings and core earnings per diluted share were $0.36 and $0.38, respectively, for 2Q23, compared to $0.31 and $0.31, for 2Q22.
“Velocity once again delivered strong quarterly earnings driven by 20% year-over-year portfolio growth,” said Chris Farrar, President and CEO. “Our second quarter results included solid portfolio net interest income and strong growth in other operating income driven by fair value gains and fees from loan production activity. Production volumes rebounded in the second quarter as forecast, increasing 19% quarter-over-quarter, with a weighted average coupon of 11%. We have been successful in mitigating much of the impact of higher rates by increasing loan coupons and volume simultaneously this quarter, which is a testament to the strong demand for investor properties and the skill of our loan origination team.”
(1) Core income and Core EPS are a non-GAAP measures that exclude nonrecurring and unusual activities from GAAP net income. (2) Liquidity includes unrestricted cash reserves of $34.0 million and available liquidity in unfinanced loans of $38.0 million.
Second Quarter Operating Results
KEY PERFORMANCE INDICATORS ($ in thousands)2Q 2023
2Q 2022
$ Variance
% Variance
Pretax income$
16,824
$
14,790
$
2,034
14
%
Net income$
12,183
$
10,645
$
1,538
14
%
Diluted earnings per share$
0.36
$
0.31
$
0
14
%
Core net income(a)$
12,928
$
10,645
$
2,283
21
%
Core diluted earnings per share(a)$
0.38
$
0.31
$
0.07
21
%
Pretax return on equity
16.81
%
16.57
%
n.a.1
%
Core pretax return on equity(a)
17.79
%
16.57
%
n.a.7
%
Net interest margin - portfolio
3.24
%
4.10
%
n.a.(21
)%
Net interest margin - total company
2.78
%
3.54
%
n.a.(21
)%
Average common equity$
400,441
$
357,218
$
43,223
12
%
(a) Core income, core diluted earnings per share and core pretax return on equity are non-GAAP measures. Please see the reconciliation to GAAP net income at the end of this release. n.a.- not applicableDiscussion of results:
Core adjustments included equity incentive compensation expenses and costs related to the Company’s employee stock purchase plan (ESPP)
2Q 2023
2Q 2022
$ Variance
% Variance
Held for Investment Investor 1-4 Rental$
2,016
$
1,517
$
499
33
%
Mixed Use
452
410
43
10
%
Multi-Family
304
289
14
5
%
Retail
322
298
24
8
%
Warehouse
235
217
19
9
%
All Other
391
359
32
9
%
Total$
3,720
$
3,090
630
20
%
Held for Sale Multi-Family$
-
$
-
$
-
0
%
Total Managed Loan Portfolio UPB$
3,720
$
3,090
$
630
20
%
Key loan portfolio metrics: Total loan count
9,541
7,779
Weighted average loan to value
68.2
%
68.2
%
Weighted average coupon
8.40
%
7.53
%
Weighted average total portfolio yield
8.24
%
7.97
%
Weighted average portfolio debt cost
5.58
%
4.34
%
Discussion of results:
Primarily driven by 32.9% Y/Y growth in loans collateralized by Investor 1-4 Rental properties and secondarily 10.4% Y/Y growth in Mixed Use properties
Approximately 75% of the loans in Velocity’s HFI portfolio are collateralized by properties that have a housing component (Investor 1-4 Rental, Multifamily and Mixed Use)
Loan prepayments totaled $105.8 million, a 21.6% Q/Q increase, and a 26.1% Y/Y decrease
The UPB of Fair Value (FVO) loans was $688.1 million in UPB, or 18.5% of total HFI loans, as of June 30, 2023, an increase from $1.3 million in UPB, or 0.05% as of June 30, 2022
The company elected fair value accounting treatment for new HFI loan originations effective October 1, 2022
2Q 2023
2Q 2022
$ Variance
% Variance
Investor 1-4 Rental$
163
$
254
$
(90
)
(36
)%
Traditional Commercial
73
164
(91
)
(55
)%
Short-term loans
22
28
(6
)
(21
)%
Total loan production$
259
$
445
$
(187
)
(42
)%
Acquisitions$
-
$
0.5
Discussion of results:
Management’s decision to reduce production, along with higher interest rates, decreased volume from year-ago levels. On a Q/Q basis, production volume rose 19.2% from 1Q23.
2Q 2023
2Q 2022
$ Variance
% Variance
Nonperforming loans(a)$ 371,154
$ 252,253
$ 118,901
47%
Average Nonperforming Loans$ 328,897
$ 257,646
$ 71,251
28%
Nonperforming loans % total HFI Loans10.0%
8.2%
n.a.22%
Total Charge Offs$ 717
$ 38
$ 679
n.m. Charge-offs as a % of Avg. Nonperforming Loans(b)0.87%
0.06%
n.a. n.m. Loan Loss Reserve$ 4,626
$ 4,905
$ (279)
(6)%
(a) Nonperforming/Nonaccrual loans include loans 90+ days past due, loans in foreclosure, bankruptcy and on nonaccrual. (b) Reflects the annualized quarter-to-date charge-offs to average nonperforming loans for the period. n.a.- not applicable, n.m. - non meaningfulDiscussion of results:
NPL growth is driven by portfolio seasoning of prior year’s originations and an aggressive collection philosophy that places loans in foreclosure quickly for early delinquencies
Charge-offs in 2Q23 totaled $716.6 thousand, compared to $37.8 thousand in 2Q22
The trailing five-quarter charge-off average was $279.6 thousand
Resulting from the run-off of the amortized cost HFI loan portfolio and a modestly improved macroeconomic outlook.
Loans carried at fair value are not subject to a CECL reserve
2Q 2023
2Q 2022
$ Variance
% Variance
Interest income$
74,897
$
59,243
$
15,653
26
%
Interest expense - portfolio related
(45,451
)
(28,752
)
(16,699
)
58
%
Net Interest Income - portfolio related
29,446
30,491
(1,045
)
(3
)%
Interest expense - corporate debt
(4,139
)
(4,182
)
43
(1
)%
Net Interest Income$
25,307
$
26,310
$
(1,003
)
(4
)%
Loan loss provision
(298
)
(279
)
(18
)
7
%
Gain on disposition of loans
1,237
1,777
(539
)
(30
)%
Unrealized gain on fair value loans
2,413
6
2,407
n.m.
Unrealized gain (loss) on fair value of securitized debt
5,560
-
5,560
n.m.
Origination income
2,735
553
2,182
395
%
Bank interest income
1,188
-
1,188
n.m.
Other operating income (expense)
903
1,257
(354
)
(28
)%
Total Other operating income (expense)$
14,036
$
3,592
10,444
291
%
Net Revenue$
39,046
$
29,622
$
9,423
32
%
n.m. - non meaningfulDiscussion of results:
Total other operating income includes gains on the disposition of loans, unrealized gains/(losses) on fair value loans and securitized debt, origination income, bank interest income on deposits and other operating income, and totaled $14.0 million for 2Q23 compared to $3.6 million for 2Q22
Gain on disposition of loans totaled $1.2 million for 2Q23, primarily resulting from gains on loans transferred to REO
Unrealized gains on the fair value of loans totaled $2.4 million for 2Q23, primarily resulting from gains on 2Q23 new production, partially offset by valuation decreases on the existing FVO portfolio due to higher long-term interest rates
Unrealized gains on the fair value of securitized debt totaled $5.6 million for 2Q23, primarily driven by an increase in long-term rates as of June 30, 2023
Origination income totaled $2.7 million, driven by fee income realized on loans originated in 2Q23
2Q 2023
2Q 2022
$ Variance
% Variance
Compensation and employee benefits$
10,670
$
6,553
$
4,116
63
%
Origination (income)/expense
122.8
1,504
(1,381
)
(92
)%
Securitization expenses
2,699
-
2,699
n.m
.
Rent and occupancy
458
426
32
7
%
Loan servicing
4,267
3,290
977
30
%
Professional fees
1,056
1,062
(6
)
(1
)%
Real estate owned, net
1,018
(251
)
1,269
(505
)%
Other expenses
1,931
2,248
(318
)
(14
)%
Total operating expenses$
22,222
$
14,832
$
7,390
50
%
n.m. - non meaningfulDiscussion of results:
Compensation expense totaled $10.7 million, compared to $6.6 million for 2Q22. In 2Q23, compensation expense related to loan originations was expensed as incurred under fair value accounting rather than deferred over the life of the loan under amortized cost accounting for 2Q22.
Origination (income)/expenses totaled $0.1 million, a $1.4 million improvement from 2Q22, resulting from successful initiatives to increase operational efficiencies
Securitization expenses totaled $2.7 million. Securitization issuance costs are now expensed under fair value accounting and were deferred in 2Q22.
Loan servicing expense totaled $4.3 million, an increase of $1.0 million from 2Q22, driven primarily by the increase in securitization debt outstanding to $3.1 billion as of June 30, 2023, from $2.5 billion as of June 30, 2022
Securities
Balance at
Balance at
TrustsIssued
6/30/2023
W.A. Rate
6/30/2022
W.A. Rate
2016-1 Trust
319,809
$
17,704
9.29
%
$
28,021
8.24
%
2017-2 Trust
245,601
51,930
3.95
%
68,749
3.59
%
2018-1 Trust
176,816
36,882
4.07
%
52,281
3.95
%
2018-2 Trust
307,988
87,984
4.51
%
108,845
4.36
%
2019-1 Trust
235,580
83,435
4.04
%
103,860
3.92
%
2019-2 Trust
207,020
76,284
3.45
%
98,792
3.37
%
2019-3 Trust
154,419
63,278
3.29
%
81,996
3.10
%
2020-1 Trust
248,700
121,074
2.86
%
149,646
2.84
%
2020-2 Trust
96,352
53,309
4.61
%
67,446
4.59
%
2021-1 Trust
251,301
183,089
1.76
%
214,835
1.74
%
2021-2 Trust
194,918
156,681
2.03
%
185,448
2.01
%
2021-3 Trust
204,205
167,652
2.46
%
195,308
2.46
%
2021-4 Trust
319,116
257,369
3.22
%
291,181
3.14
%
2022-1 Trust
273,594
246,883
3.93
%
264,936
3.91
%
2022-2 Trust
241,388
226,763
5.10
%
240,076
5.08
%
2022-MC1 Trust
84,967
39,862
6.90
%
80,931
6.94
%
2022-3 Trust
296,323
268,008
5.69
%
294,768
5.67
%
2022-4 Trust
308,357
289,929
6.25
%
2022-5 Trust
188,754
177,075
7.07
%
2023-1 Trust
198,715
189,763
7.02
%
2023-1R Trust
64,833
63,390
7.73
%
2023-2 Trust
202,210
199,864
7.17
%
$
4,820,966
$
3,058,208
4.72
%
$
2,527,119
3.77
%
Discussion of results
SECOND QUARTER 2023
SECOND QUARTER 2022
($ in thousands)UPB $
Gain / (Loss) $
UPB $
Gain / (Loss) $
Paid in full$
13,485
$
965
$
16,934
$
3,303
Paid current
19,771
280
17,407
129
REO sold (a)
4,836
(382
)
2,107
816
Total resolutions
$
38,092
$
863
$
36,448
$
4,248
Resolutions as a % of nonperforming UPB
102.3
%
111.7
%
SHORT-TERM AND FORBEARANCE LOANS RESOLUTION ACTIVITYSECOND QUARTER 2023
SECOND QUARTER 2022
($ in thousands)UPB $
Gain / (Loss) $
UPB $
Gain / (Loss) $
Paid in full$
7,004
$
318
$
9,913
$
976
Paid current
3,290
89
2,877
22
REO sold
1,672
222
1,262
500
Total resolutions
$
11,966
$
629
$
14,052
$
1,498
Resolutions as a % of nonperforming UPB
105.3
%
110.7
%
Grand total resolutions$
50,058
$
1,492
$
50,500
$
5,746
Grand total resolutions as a % of nonperforming UPB
103.0
%
111.4
%
Discussion of results:
Velocity’s executive management team will host a conference call and webcast to review 2Q23 financial results on August 3rd, 2023, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.
Webcast Information
The conference call will be webcast live in listen-only mode and can be accessed through the Events and Presentations section of the Velocity Financial Investor Relations website https://www.velfinance.com/events-and-presentations. To listen to the webcast, please visit Velocity’s website at least 15 minutes before the call to register, download, and install any needed software. An audio replay of the call will also be available on Velocity’s website following the completion of the conference call.
Conference Call Information
To participate by phone, please dial-in 15 minutes before the start time to allow for wait times to access the conference call. The live conference call will be accessible by dialing F1-833-316-0544 in the U.S. and Canada and 1-412-317-5725 for international callers. Callers should ask to join the Velocity Financial, Inc. conference call.
A replay of the call will be available through midnight on August 31, 2023, and can be accessed by dialing 1-877-344-7529 in the U.S. and 855-669-9658 in Canada or 1-412-317-0088 internationally. The passcode for the replay is #7682506. The replay will also be available on the Investor Relations section of the Company's website under "Events and Presentations.”
About Velocity Financial, Inc.
Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that primarily originates and manages business purpose loans secured by 1-4-unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers built and refined over 19 years.
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with United States generally accepted accounting principles (GAAP), the Company uses non-GAAP core net income and core diluted EPS, which are non-GAAP financial measures.
Non-GAAP core net income and non-GAAP core diluted EPS are non-GAAP financial measures that represent our net income (loss) and net income (loss) per diluted share, adjusted to eliminate the effect of certain costs incurred from activities that are not normal recurring operating expenses, such as COVID-stressed charges and recoveries of loan loss provision, nonrecurring debt amortization, the impact of operational measures taken to address the COVID-19 pandemic and workforce reduction costs, and costs associated with acquisitions. To calculate non-GAAP core diluted EPS, we use the weighted-average number of shares of common stock outstanding that is used to calculate net income per diluted share under GAAP.
We have included non-GAAP core net income and non-GAAP core diluted EPS because they are key measures used by our management to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that non-GAAP core net income and non-GAAP core diluted EPS provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, they provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain items that we expect to be nonrecurring.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly titled measures presented by other companies.
For more information on Core Income, please refer to the section of this press release below titled “Adjusted Financial Metric Reconciliation to GAAP Net Income” at the end of this press release.
Forward-Looking Statements
Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to anticipated results, expectations, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “goal,” ”position,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.
The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions, and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to, (1) the continued course and severity of the COVID-19 pandemic and its direct and indirect impacts, (2) general economic and real estate market conditions, including the risk of recession (3) regulatory and/or legislative changes, (4) our customers' continued interest in loans and doing business with us, (5) market conditions and investor interest in our future securitizations, and (6) the continued conflict in Ukraine and (7) changes in federal government fiscal and monetary policies.
Additional information relating to these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements can be found in the section titled ‘‘Risk Factors” in our Form 10-Q filed with the SEC on May 14, 2020, as well as other cautionary statements we make in our current and periodic filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.velfinance.com.
Velocity Financial, LLC
Consolidated Statements of Financial Condition
Quarter Ended
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Unaudited
Unaudited
Audited
Unaudited
Unaudited
(In thousands) Assets Cash and cash equivalents$
33,987
$
39,397
$
45,248
$
26,372
$
46,250
Restricted cash
16,786
16,636
16,808
14,533
9,217
Loans held for sale, at fair value
-
18,081
-
16,569
-
Loans held for investment, at fair value
705,330
450,732
276,095
926
1,351
Loans held for investment
3,057,940
3,169,280
3,272,390
3,445,563
3,118,799
Total loans, net
3,763,270
3,638,093
3,548,485
3,463,058
3,120,150
Accrued interest receivables
22,602
20,931
20,463
18,333
15,820
Receivables due from servicers
63,896
64,133
65,644
66,992
75,688
Other receivables
1,306
2,188
1,075
1,962
1,320
Real estate owned, net
20,388
21,778
13,325
13,188
19,218
Property and equipment, net
3,023
3,209
3,356
3,495
3,632
Deferred tax asset
1,878
2,543
5,033
4,337
15,195
Mortgage Servicing Rights, at fair value
9,445
9,143
9,238
9,868
8,438
Goodwill
6,775
6,775
6,775
6,775
6,775
Other assets
7,789
12,268
13,525
18,453
11,036
Total Assets
$
3,951,145
$
3,837,094
$
3,748,975
$
3,647,366
$
3,332,739
Liabilities and members' equity Accounts payable and accrued expenses
$
95,344
$
84,976
$
91,525
$
75,150
$
78,384
Secured financing, net
210,464
210,155
209,846
209,537
209,227
Securitized debt, net
2,622,547
2,657,469
2,736,290
2,651,895
2,477,226
Securitized debt, at fair value
381,799
194,941
-
-
-
Warehouse & repurchase facilities
235,749
298,313
330,814
340,050
208,390
Total Liabilities
3,545,903
3,445,854
3,368,475
3,276,632
2,973,227
Stockholders' Equity Stockholders' equity
401,707
387,624
376,811
366,810
355,895
Noncontrolling interest in subsidiary
3,535
3,616
3,689
3,924
3,617
Total equity
405,242
391,240
380,500
370,734
359,512
Total Liabilities and members' equity
$
3,951,145
$
3,837,094
$
3,748,975
$
3,647,366
$
3,332,739
Book value per share
$
12.57
$
12.18
$
11.89
$
11.61
$
11.26
Shares outstanding
32,239(1
)
32,112(2
)
31,996(3
)
31,922(4
)
31,922(5
)
(1)
Based on 32,238,715 common shares outstanding as of June 30, 2023, and excludes unvested shares of common stock authorized for incentive compensation totaling 502,913.
(2)
Based on 32,111,906 common shares outstanding as of March 31, 2023, and excludes unvested shares of common stock authorized for incentive compensation totaling 490,526.
(3)
Based on 31,955,730 common shares outstanding as of December 31, 2022, and excludes unvested shares of common stock authorized for incentive compensation totaling 494,139.
(4)
Based on 31,921,721 common shares outstanding as of September 30, 2022, and excludes unvested shares of common stock authorized for incentive compensation totaling 494,139.
(5)
Based on 31,921,721 common shares outstanding as of June 30, 2022, and excludes unvested shares of common stock authorized for incentive compensation totaling 494,139.
Velocity Financial, LLC
Consolidated Statements of Income (Quarters)
Quarter Ended
($ in thousands)6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Revenues Interest income$
74,897
$
70,521
$
65,632
$
63,419
$
59,243
Interest expense - portfolio related
45,451
42,029
40,854
34,561
28,752
Net interest income - portfolio related
29,446
28,492
24,778
28,858
30,491
Interest expense - corporate debt
4,139
4,139
4,139
4,011
4,182
Net interest income
25,307
24,353
20,639
24,847
26,309
Provision for loan losses
298
636
(437
)
580
279
Net interest income after provision for loan losses
25,009
23,717
21,076
24,267
26,030
Other operating income Gain on disposition of loans
1,237
1,913
391
399
1,777
Unrealized gain on fair value loans
2,413
7,354
7,795
453
6
Unrealized gain (loss) on fair value securitizations
5,560
(170
)
-
-
-
Origination income
2,735
2,411
3,521
518
553
Bank interest income
1,188
948
-
0
0
Other income (expense)
903
386
(288
)
1,656
1,257
Total other operating income
14,036
12,842
11,419
3,027
3,592
Net revenue
39,046
36,560
32,495
27,294
29,622
Operating expenses Compensation and employee benefits
10,670
10,008
11,793
6,788
6,553
Origination expenses
123
(50
)
1,328
209
1,504
Securitizations expenses
2,699
2,584
-
-
-
Rent and occupancy
458
446
435
445
426
Loan servicing
4,267
3,828
3,244
3,314
3,290
Professional fees
1,056
955
1,091
664
1,062
Real estate owned, net
1,018
1,829
552
(195
)
(251
)
Other operating expenses
1,931
2,202
2,360
2,020
2,248
Total operating expenses
22,222
21,802
20,804
13,245
14,832
Income before income taxes
16,824
14,757
11,692
14,049
14,790
Income tax expense
4,602
4,021
3,465
3,759
4,019
Net income
12,222
10,736
8,227
10,290
10,771
Net income attributable to noncontrolling interest
39
87
(235
)
307
126
Net income attributable to Velocity Financial, Inc.
12,183
10,649
8,462
9,983
10,645
Less undistributed earnings attributable to participating securities
185
160
127
152
164
Net earnings attributable to common shareholders
$
11,998
$
10,489
$
8,335
$
9,831
$
10,481
Basic earnings (loss) per share
$
0.37
$
0.33
$
0.26
$
0.31
$
0.33
Diluted earnings (loss) per common share
$
0.36
$
0.31
$
0.25
$
0.29
$
0.31
Basic weighted average common shares outstanding
32,122
32,098
31,923
31,922
31,917
Diluted weighted average common shares outstanding
34,140
34,052
34,063
34,199
34,057
Velocity Financial, Inc.
Net Interest Margin — Portfolio Related and Total Company
(Unaudited)
Quarter Ended June 30, 2023
Quarter Ended March 31, 2023
Quarter Ended June 30, 2022
Interest
Average
Interest
Average
Interest
Average
Average
Income /
Yield /
Average
Income /
Yield /
Average
Income /
Yield /
($ in thousands)Balance
Expense
Rate(1)
Balance
Expense
Rate(1)
Balance
Expense
Rate(1)
Loan portfolio: Loans held for sale$
3,477
$
12,896
$
62,987
Loans held for investment
3,634,093
3,512,133
2,910,693
Total loans$
3,637,570
$
74,897
8.24
%
$
3,525,029
$
70,521
8.00
%
$
2,973,680
$
59,243
7.97
%
Debt: Warehouse and repurchase facilities$
238,027
5,910
9.93
%
$
225,497
4,833
8.57
%
$
318,960
4,115
5.16
%
Securitizations
3,020,624
39,541
5.24
%
2,926,153
37,196
5.08
%
2,332,340
24,637
4.23
%
Total debt - portfolio related
3,258,651
45,451
5.58
%
3,151,650
42,029
5.33
%
2,651,300
28,752
4.34
%
Corporate debt
215,000
4,139
7.70
%
215,000
4,139
7.70
%
215,000
4,182
7.78
%
Total debt$
3,473,651
$
49,590
5.71
%
$
3,366,650
$
46,168
5.49
%
$
2,866,300
$
32,934
4.60
%
Net interest spread - portfolio related (2)2.66
%
2.67
%
3.63
%
Net interest margin - portfolio related3.24
%
3.23
%
4.10
%
Net interest spread - total company (3)2.53
%
2.52
%
3.37
%
Net interest margin - total company2.78
%
2.76
%
3.54
%
(1) Annualized. (2) Net interest spread — portfolio related is the difference between the rate earned on our loan portfolio and the interest rates paid on our portfolio-related debt. (3) Net interest spread — total company is the difference between the rate earned on our loan portfolio and the interest rates paid on our total debt.Velocity Financial, Inc.
Adjusted Financial Metric Reconciliation to GAAP Net Income
(Unaudited)
Quarters:
Core Net IncomeQuarter Ended
($ in thousands)6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Net Income$
12,183
$
10,649
$
8,462
$
9,983
$
10,645
Equity award & ESPP costs
745
728
656
-
-
Core Net Income$
12,928
$
11,376
$
9,118
$
9,983
$
10,645
Diluted weighted average common shares outstanding
34,140
34,052
34,063
34,199
34,057
Core diluted earnings per share$
0.38
$
0.33
$
0.27
$
0.29
$
0.31
View source version on businesswire.com: https://www.businesswire.com/news/home/20230803769766/en/
Investors and Media: Chris Oltmann (818) 532-3708
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