Velocity Financial, Inc. reported significant growth in its financial performance for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. The company’s total assets increased to $5.2 billion from $4.4 billion at the end of 2023, driven by a rise in loans held for investment, which reached $4.9 billion, up from $4.2 billion. The loans held for investment at fair value also saw a substantial increase, rising to $2.4 billion from $1.3 billion.
Interest income for the third quarter of 2024 was $105.1 million, a notable increase from $79.1 million in Q3 2023. For the nine months ended September 30, 2024, interest income totaled $293.4 million, compared to $224.5 million in the prior year. Net interest income for Q3 2024 was $35.1 million, up from $27.4 million in Q3 2023, while for the nine-month period, it increased to $96.9 million from $77.0 million.
Net income attributable to Velocity Financial for Q3 2024 was $15.8 million, compared to $12.1 million in Q3 2023. For the nine months ended September 30, 2024, net income reached $47.8 million, up from $34.9 million in the same period last year. Earnings per share also improved, with basic earnings per share for Q3 2024 at $0.48, compared to $0.37 in Q3 2023.
The company’s operating expenses increased to $34.6 million in Q3 2024 from $27.3 million in Q3 2023, primarily due to higher compensation and employee benefits, which rose to $17.6 million from $12.5 million. Total other operating income also increased, reaching $20.7 million in Q3 2024, compared to $17.4 million in Q3 2023.
In terms of strategic developments, Velocity Financial completed a securitization of $300.4 million of investor real estate loans on October 10, 2024, which will be accounted for in the upcoming quarter. The company also issued $75.0 million in Senior Secured Notes in February 2024, bearing interest at 9.875%.
As of September 30, 2024, the company had a total of $4.7 billion in unpaid principal balance (UPB) across its loan portfolio, with nonperforming loans amounting to $503.9 million, representing 10.6% of the held-for-investment loan portfolio. The increase in nonperforming loans was attributed to portfolio growth and early foreclosure actions.
Overall, Velocity Financial's financial results reflect a robust growth trajectory, with increased revenues and net income, alongside strategic financing initiatives to support its operations.
About Velocity Financial, Inc.
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