Velocity Financial, Inc. · NYSE:VEL
Velocity Financial — Q4 2025 Earnings Presentation
20 slides from Velocity Financial's earnings presentation, Mar 11, 2026
Slide 1: 3Q25 Results Presentation
3Q25 Results Presentation November 6, 2025
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, positioning, anticipated events or trend
Slide 3: 3Q25 Highlights
3Q25 Highlights ▪ Net income of $25.4 million, up 60.6% from $15.8 million for 3Q24. Diluted EPS of $0.65, up $0.21 from $0.44 per share for 3Q24. ▪ Core net income(1) of $26.9 million, an increase of 58.9% from $16.9 million for 3Q24. Earnings Core diluted EPS(1) of $0.69, up from $0.47 per share f
Slide 4: Reinvested Earnings Compounds Returns
Reinvested Earnings Compounds Returns Core Diluted Earnings Per Share ▪ Our proprietary operating platform CAGR = and expertise delivers strong 34.4%(1) results and durable long-term $2.58 growth for our shareholders $2.03 $1.54 ▪ Earnings growth re-invested at high marginal ROE compounds book value
Slide 5: Loan Production
Loan Production 3Q25 Production Hits New Record ▪ Loan production in 3Q25 totaled $739.0 million, including $23.9 million in unfunded commitments, a 1.9% increase from $725.4 million for 2Q25 and a 55.0% increase from $476.8 million for 3Q24 – Y/Y volume growth driven by a 113.7% increase in Traditi
Slide 6: Loan Portfolio
Loan Portfolio Portfolio Growth Driven by Continued Strong Originations ▪ The total loan portfolio was $6.3 billion in Loan Portfolio by Property Type UPB as of September 30, 2025, an increase (UPB in millions) $6,275.4 of 7.1% from $5.9 billion as of June 30, $5,859.7 $488.8 2025, and 32.0% from $4
Slide 7: Net Interest Margin
Net Interest Margin 3Q25 NIM In-Line With 3.5% Target Level ▪ Portfolio NIM(1) for 3Q25 was 3.65%, an increase of 5 bps from 3.60% for 3Q24 ▪ Portfolio Yield: decreased 11 bps from 2Q25 and increased 36 bps from 3Q24. Q/Q, change driven by lower NPA resolution gains and prepayment fee revenue; Y/Y g
Slide 8: HFI Portfolio Performance
HFI Portfolio Performance NPLs as % of HFI Loans Continued Downward Trend.; Resolution Gains Remain Strong ▪ Total nonperforming loans (NPL) as a percentage of total HFI loans was 9.8% as of September 30, 2025, a decrease from 10.3% as of June 30, 2025, and 10.6% as of September 30, 2024 ▪ Gains on
Slide 9: Non-Performing Asset Resolution Activity
Non-Performing Asset Resolution Activity NPA UPB Resolved Up for 3Q25; Recovery Gains In-Line With Recent Five-Quarter Trend Resolution Activity RESOLUTION ACTIVITIES ▪ NPA resolutions totaled $108.0 LONG-TERM NONPERFORMING ASSETS RESOLUTION ACTIVITY THIRD QUARTER 2024 SECOND QUARTER 2025 THIRD QUAR
Slide 10: CECL Reserve, Charge-Offs and REO
CECL Reserve, Charge-Offs and REO CECL Reserve Down from Legacy Portfolio Runoff and Low Levels of Charge-offs Credit Loss Reserve & Gain (Loss) on REO ▪ The credit loss (CECL) reserve balance was $4.6 million as of September 30, Quarter Ended 2025, a decrease from $4.9 million as of ($ in thousands
Slide 11: Durable Funding and Liquidity Strategy
Durable Funding and Liquidity Strategy Two Securitizations in 3Q25(1); Available Warehouse Capacity Grows Outstanding Debt Balances(2) ▪ Completed two securitizations in 3Q25: ($ in Millions) $6,150.6 – Issued the VCC 2025-4 & 2025-P1 $5,709.3 $286.2 $332.4 securitizations totaling $648.4 million of
Slide 12: Outlook for Velocity's Key Business Drivers
Outlook for Velocity’s Key Business Drivers Investor Loan Market Remains Resilient; Growth Outlook Positive MARKET CREDIT CAPITAL EARNINGS ▪ Large investor market ▪ U.S. economic ▪ Next long-term loan ▪ Targeting average for tangible assets to outlook remains securitization NIM of ~ 3.5% and drive c
Slide 13: Appendix
Appendix
Slide 14: Velocity Financial, Inc. Balance Sheet
Velocity Financial, Inc. Balance Sheet Quarter Ended 9/30/2025 12/31/2024 Unaudited Audited (In thousands) Assets Cash and cash equivalents $ 98,964 $ 49,901 Restricted cash 18,846 20,929 Loans held for sale, at fair value 2,590 - Loans held for investment, at fair value 4,371,317 2,766,951 Loans he
Slide 15: Velocity Financial, Inc. Income Statement (Quarters)
Velocity Financial, Inc. Income Statement (Quarters) Quarter Ended Nine Months Ended ($ in thousands) 9/30/2025 9/30/2024 9/30/2025 9/30/2024 Unaudited Unaudited Unaudited Unaudited Revenues Interest income $ 144,119 $ 105,070 $ 398,426 $ 293,359 Interest expense - portfolio related 88,899 63,871 24
Slide 16: Core Net Income, Diluted Book Value and Adjusted Book Value Per Share
Core Net Income, Diluted Book Value and Adjusted Book Value Per Share Core Net Income(1) Book Value and Adjusted Book Value Per Share(2) ($ in thousands) $ 1.64 $17.95 $ 0.69 $ 16.31 GAAP Net Income $25,373 $15.62 $ 0.03 $(0.04) Equity award & ESPP costs $1,564 Core Net Income $26,937 Diluted book N
Slide 17: HFI Portfolio Delinquency Trends
HFI Portfolio Delinquency Trends September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 ($ in thousands) $ % $ % $ % $ % $ % Performing/Accruing: Current $ 3,921,488 82.8% $ 4,169,830 82.5% $ 4,504,854 82.7% $ 4,878,317 83.3% $ 5,202,057 82.9% 30-59 days past due 197,89
Slide 18: Loan Portfolio Rollforward
Loan Portfolio Rollforward Total Loan Portfolio UPB Rollforward (UPB in millions) $715.1 $6,275.4 $5,859.7 $(263.7) $(35.6) Loan Portfolio at Principal Payments Foreclosures Loan Production (1) Loan Portfolio at 6/30/25 9/30/25 Confidential .(1) Excludes an unfunded portion of a construction loan or
Slide 19: HFI Loan Portfolio
HFI Loan Portfolio Portfolio by Property Type Portfolio by State (100% = $6.28 billion UPB)(1) Mixed Use 10.7% California 21.0% Retail 10.2% Other Investor 1-4 39.4% Rental Multifamily New York 49.3% 7.3% 13.8% Warehouse 6.7% Office Florida 8.0% Texas Other 12.3% 7.8% 6.0% New Jersey 7.4% Confidenti
Slide 20: Adjusted Financial Metric Reconciliation
Adjusted Financial Metric Reconciliation: Adjusted Financial Metric Reconciliation to GAAP Net Income Quarters: Core Net Income ($ in thousands, except per share amounts) Quarter Ended ($ in thousands) 9/30/2025 9/30/2024 Net Income $ 25,373 $ 15,803 Equity award & ESPP costs 1,564 1,146 Core Net In