Velocity Financial, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with net income reaching $68.5 million, a 30.9% increase from $52.3 million in 2023. The company's total revenue surged to $406.8 million, up from $310.8 million the previous year, driven primarily by a 64.7% increase in loan originations, which totaled $1.8 billion compared to $1.1 billion in 2023. The net interest margin also improved to 3.56%, reflecting a favorable yield environment and effective management of funding costs.
The company experienced notable changes in its operational metrics, with the total portfolio of loans held for investment growing to $5.1 billion, up from $4.1 billion in 2023. The number of loans held for investment increased to 12,932, compared to 10,477 the previous year. However, the percentage of nonperforming loans also rose to 10.7%, up from 9.7% in 2023, attributed to the expansion of the loan portfolio and management's proactive approach to moving loans into foreclosure early in the delinquency process.
Strategically, Velocity Financial continued to enhance its market position through the acquisition of Century Health & Housing Capital, LLC, which provides government-insured FHA mortgage financing. This acquisition, completed in December 2021, has allowed the company to diversify its offerings and strengthen its servicing capabilities. Additionally, the company executed its first securitization of short-term loans in August 2023, further expanding its funding sources and product offerings.
As of December 31, 2024, Velocity Financial had a total employee count of 309, reflecting a 22% increase from the previous year, driven by business growth. The company aims to continue expanding its network of mortgage brokers and enhancing its product offerings to capture a larger share of the fragmented investor real estate loan market. The outlook for 2025 remains cautiously optimistic, with management anticipating continued growth in loan originations despite potential macroeconomic challenges, including rising interest rates and geopolitical uncertainties.
In summary, Velocity Financial, Inc. demonstrated strong financial performance in 2024, marked by increased revenues and loan originations, while also navigating challenges related to nonperforming loans. The company's strategic initiatives, including acquisitions and product diversification, position it well for future growth in the competitive real estate finance market.
About Velocity Financial, Inc.
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