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Velocity Financial Inc - Ordinary Shares (VEL-0.39%) has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The filing is available for review filing.
The report details the company's financial performance, including a total loan portfolio of $5.1 billion as of December 31, 2024. The portfolio consists of loans held for investment and loans held for sale, with a focus on investor real estate loans.
For the year ended December 31, 2024, Velocity Financial reported a net income of $68.5 million, an increase from $52.3 million in the previous year. The company attributes this growth to an increase in interest income and other operating income.
Velocity Financial's primary source of revenue is interest income from its loan portfolio. The company reported interest income of $406.8 million for the year ended December 31, 2024, compared to $310.8 million in the previous year.
The company continues to use securitizations as a primary source of long-term financing. As of December 31, 2024, Velocity Financial had executed 37 securitization transactions, issuing $8.0 billion in principal amount of securities.
Velocity Financial's allowance for credit losses decreased to $4.2 million as of December 31, 2024, from $4.8 million in the previous year. This decrease is primarily due to loan paydowns and payoffs.
The filing also discusses the company's competitive advantages, including its established franchise, customized technology, and experienced management team. Velocity Financial aims to continue expanding its network of mortgage brokers and developing new loan products.
The company reported total operating expenses of $139.6 million for the year ended December 31, 2024, an increase from $100.6 million in the previous year. This increase is attributed to higher compensation and employee benefits, origination expenses, and securitization expenses.
Velocity Financial's report includes information on its financing strategy, which involves the use of warehouse facilities and securitized debt to fund loan originations. The company had $350.0 million in outstanding borrowings under its warehouse facilities as of December 31, 2024.
The filing outlines various risk factors that could impact the company's future performance, including macroeconomic conditions, competition in the real estate loan market, and regulatory changes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Velocity Financial Inc - Ordinary Shares annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.