Velocity Financial Inc (NYSE:VEL)

Q1 2025 Velocity Financial Inc Earnings Call Transcript

May 1, 2025 / 09:00 PM GMT

Release Date Price: $17.85 (-0.11%)

Transcript 8-K10-Q

Key Points

Positve

Velocity Financial Inc (VEL) originated $640 million in new loans, marking a 69% increase compared to the previous year.
Net revenue increased by 27%, and core pre-tax earnings rose by 17%, indicating strong financial performance.
The company successfully completed four debt transactions and issued three new securitizations, showcasing robust capital market activity.
The weighted average coupon on new health investment originations remained strong at 10.5%, reflecting healthy demand.
The total loan portfolio grew by 27.3% year over year, reaching just under $5.5 billion in UPB.

Negative

Non-performing loans remained relatively stable at 10.8%, indicating ongoing challenges in loan performance.
The portfolio yield for Q1 decreased by 23 basis points quarter over quarter, reflecting some pressure on returns.
The cost of funds increased by 9 basis points quarter over quarter and 30 basis points year over year, impacting profitability.
The Cecil loan loss reserve was slightly above the expected normal range due to macroeconomic uncertainties.
The company faces potential challenges from market volatility and tariff discussions, which could impact future performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VEL.N - Velocity Financial Inc
Q1 2025 Velocity Financial Inc Earnings Call
May 01, 2025 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to Velocity Financial Inc. 1st quarter 2025 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press 1 on your telephone keypad. To withdraw your question, please press 2. Please note this event is being recorded.

I would now like to turn the conference over to Mr. Chris Altman, treasurer. Please go ahead.

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Unidentified_2 [2]
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