Velocity Financial, Inc. · NYSE:VEL
Velocity Financial — Q4 2025 Earnings Presentation
21 slides from Velocity Financial's earnings presentation, Mar 11, 2026
Slide 1: 4Q25 Results Presentation
4Q25 Results Presentation March 11, 2026
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: 2025 Was A Transformational Year For Velocity
2025 Was A Transformational Year For Velocity Financial Highlights Core Pretax Earnings(1) Core Pretax Income ($ in millions) – up 51% Y/Y 2025 $154.6 26% 21% 2024 $102.5 Core Pretax Y/Y Diluted ROAE(1) Book Value Portfolio Growth Total Loan Portfolio ($ in millions) – up 28% Y/Y 2025 $6,491.3 2024
Slide 4: 4Q25 Highlights
4Q25 Highlights ▪ Net income of $34.8 million, up 69.0% from $20.6 million for 4Q24. Diluted EPS of $0.89, an increase of $0.32 from $0.57 per share for 4Q24. ▪ Core net income(1) of $36.3 million, an increase of 67.0% from $21.8 million for 4Q24. Earnings Core diluted EPS(1) of $0.93, up from $0.60
Slide 5: Loan Production
Loan Production 4Q25 Originations Help Drive Record Production for FY 2025 ▪ Total loan production in 4Q25 totaled $634.6 million, a 12.6% increase from $563.5 million for 4Q24 – Y/Y volume growth driven by a 40.6% increase in Investor 1-4 rental loans ▪ The WAC(1) on 4Q25 HFI loan production was 10
Slide 6: Loan Portfolio
Loan Portfolio Portfolio Reaches $6.5 Billion; Strong Property Type Diversification Loan Portfolio by Property Type ▪ The total loan portfolio was $6.5 billion in (UPB in millions) $6,491.3 UPB as of December 31, 2025, an increase $6,275.4 $506.4 of 28.4% from $5.1 billion as of $488.8 $542.6 Decemb
Slide 7: Net Interest Margin
Net Interest Margin 4Q25 NIM Remained Strong ▪ Portfolio NIM(1) for 4Q25 was 3.59%, a decrease of 11 bps from an elevated level of 3.70% for 4Q24 ▪ Portfolio Yield: Increased 13 bps from 4Q24. Y/Y growth primarily resulted from increased weighted average loan coupons ▪ Cost of Funds: Increased 9 bps
Slide 8: HFI Portfolio Performance
HFI Portfolio Performance NPLs as % of HFI Loans Decreased as NPL Sale Drives Improvement ▪ Total nonperforming loans (NPL) as a percentage of total HFI loans UPB was 8.5% as of December 31, 2025, a decrease from 10.7% as of December 31, 2024 – Primarily driven by the sale of $128.9 million in UPB o
Slide 9: CECL Reserve, Charge-Offs and REO
CECL Reserve, Charge-Offs and REO CECL Reserve Increased Slightly Credit Loss Reserve & Gain (Loss) on REO ▪ The credit loss (CECL) reserve Quarter Ended balance was $4.5 million as of ($ in thousands) 12/31/2024 12/31/2025 $ Variance % Variance December 31, 2025, an increase from Allowance for cred
Slide 10: Non-Performing Loan Resolution Activity
Non-Performing Loan Resolution Activity Strong NPL Resolution Growth Contined In 4Q25 RESOLUTION ACTIVITIES NPL Resolution Activity LONG-TERM NONPERFORMING LOANS $ in thousands FOURTH QUARTER 2024 FOURTH QUARTER 2025 RESOLUTION ACTIVITY Net Gain Total $ Recovered Net Gain Total $ Recovered Net Accru
Slide 11: Durable Funding and Liquidity Framework
Durable Funding and Liquidity Framework Two Securitizations in 4Q25(1); Closed Inaugural Unsecured Debt Issuance of $500MM in 1Q26 Outstanding Debt Balances(2) ▪ Completed two securitizations in 4Q25: ($ in Millions) $6,537.5 – Issued the 2025-P2 & VCC 2025-5 $6,150.6 $286.7 securitizations totaling
Slide 12: Outlook for Velocity’s Key Business Drivers
Outlook for Velocity’s Key Business Drivers Real Estate Values Expected to Remain Supportive of Growth MARKET CREDIT CAPITAL EARNINGS ▪ Market for small ▪ NPA resolutions ▪ Next long-term loan ▪ NIM target remains balance investor trends (UPB volume securitization ~ 3.5% properties expected to & gai
Slide 13: Appendix
Appendix
Slide 14: Velocity Financial, Inc. Balance Sheet
Velocity Financial, Inc. Balance Sheet Year Ended 12/31/2025 12/31/2024 Audited Audited (In thousands) Assets Cash and cash equivalents $ 92,103 $ 49,901 Restricted cash 157,134 20,929 Loans held for investment, at fair value 4,729,869 2,766,951 Loans held for investment, at amortized cost 2,028,262
Slide 15: Velocity Financial, Inc. Income Statements
Velocity Financial, Inc. Income Statements Quarter Ended Year Ended ($ in thousands) 12/31/2025 9/30/2025 12/31/2024 12/31/2025 12/31/2024 Unaudited Unaudited Unaudited Audited Audited Revenues Interest income $ 152,403 $ 144,119 $ 113,484 $ 550,829 $ 406,843 Interest expense - portfolio related 94,
Slide 16: Core Net Income, Diluted Book Value & Adjusted Book Value Per Share
Core Net Income, Diluted Book Value & Adjusted Book Value Per Share Core Net Income(1) Book Value and Adjusted Book Value Per Share(2) ($ in thousands) $ 1.65 $18.84 $0.93 $ 17.19 GAAP Net Income $34,797 $16.31 $(0.05) Equity award & ESPP costs $1,530 Core Net Income $36,327 Diluted book Non-Core Co
Slide 17: Reinvested Earnings Compounds Returns
Reinvested Earnings Compounds Returns Core Diluted Earnings Per Share ▪ Our proprietary operating platform CAGR = and expertise delivers strong 37.4%(1) $2.91 results and durable long-term growth for our shareholders $2.03 $1.54 ▪ Earnings growth re-invested at high marginal ROE compounds book value
Slide 18: HFI Portfolio Delinquency Trends
HFI Portfolio Delinquency Trends December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 ($ in thousands) $ % $ % $ % $ % $ % Performing/Accruing: Current $ 4,169,830 82.5% $ 4,504,854 82.7% $ 4,878,317 83.3% $ 5,202,057 82.9% $ 5,432,204 83.7% 30-59 days past due 241,300
Slide 19: Loan Portfolio Rollforward
Loan Portfolio Rollforward Total Loan Portfolio UPB Rollforward (UPB in millions) $634.6 $6,491.3 $6,275.4 $(255.4) $(132.9) $(30.3) Loan Portfolio at Principal Payments Loan Sales Foreclosures Loan Production Loan Portfolio at 9/30/25 12/31/25 Confidential 19
Slide 20: HFI Loan Portfolio
HFI Loan Portfolio Portfolio by Property Type Portfolio by State (100% = $6.49 billion UPB)(1) Mixed Use 10.9% California 20.3% Retail 10.7% Other Investor 1-4 Multifamily 40.2% New York Rental 7.1% 13.8% 48.1% Warehouse 7.0% Office Florida 8.4% Texas 12.0% Other 6.1% 7.8% New Jersey 7.6% Confidenti
Slide 21: Adjusted Financial Metric Reconciliation
Adjusted Financial Metric Reconciliation: Adjusted Financial Metric Reconciliation to GAAP Net Income Core Pretax Income Quarter Ended Year Ended 12/31/2025 9/30/2025 12/31/2024 12/31/2025 12/31/2024 Income before income taxes $ 50,049 $ 35,375 $ 32,038 $ 146,240 $ 96,391 Equity awards & ESPP expens