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Velocity Financial, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in interest income to $105,070,000 from $79,088,000 in the same quarter the previous year. This increase is attributed to higher portfolio balances and increased average loan yield.
Interest expense for the quarter was $63,871,000, compared to $47,583,000 in the previous year, due to higher loan portfolio financing and increased interest rates.
The company reported a net interest income of $35,056,000 for the quarter, compared to $27,367,000 in the previous year.
The provision for credit losses was a reversal of $69,000 for the quarter, compared to a provision of $154,000 in the previous year.
Other operating income increased to $20,732,000 from $17,360,000, driven by unrealized gains on fair value loans.
Operating expenses rose to $34,613,000 from $27,334,000, primarily due to increased compensation and employee benefits.
Net income for the quarter was $15,617,000, up from $12,169,000 in the previous year. After accounting for noncontrolling interest, net income attributable to Velocity Financial, Inc. was $15,803,000, compared to $12,086,000 in the previous year.
Cash provided by operating activities was $4,482,000, while cash used in investing and financing activities was $689,013,000 and $689,865,000, respectively.
Velocity Financial had a total loan portfolio of $4,753,266,000 as of September 30, 2024, with a weighted average loan-to-value ratio of 67.0% and a weighted average coupon of 9.4%.
The filing also details the company's securitized debt activities, including the issuance of $300.4 million of investor real estate loans in October 2024.
The company continues to focus on originating investor real estate loans and managing its loan portfolio, with a significant portion of its funding sourced from securitized debt and warehouse facilities.
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 quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.