Velocity Financial, Inc. · NYSE:VEL
Velocity Financial — Q3 2026 Earnings Presentation
30 slides from Velocity Financial's earnings presentation, Nov 6, 2026
Slide 1: 3Q26 Results
3Q26 Results November 4, 2026 Exhibit 99
Slide 2: Forward-looking statements
DISCLOSURE 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 anticipated results, expectations, projections, prospects, plans and strategie
Slide 3: 3Q26 Financial Highlights
EARNINGS 3Q26 Financial Highlights MEASURE ($ in thousands) 3Q26 2Q26 3Q25 CHANGE VS 3Q25 Core net income1 11.5% Core diluted EPS1 $0.76 $0.71 $0.69 10.1% Net income $26,418 $25,163 $25,373 Diluted EPS $0.67 $0.64 $0.65 3.1% Portfolio NIM2 3.78% 3.66% 3.65% 13 bps (1) “Core net income” and “Core dil
Slide 4: Third Quarter 2026 Results
THIRD QUARTER 2026 Results Strong earnings and record production from a unique market segment and lending model CORE EPS1 2nd highest quarterly core EPS result in the Company’s history PORTFOLIO NIM2 3.8% NIM2 remained well above 3.5% target, driven by lower average cost of securitized debt LOAN PRO
Slide 5: Production & Loan Portfolio
PRODUCTION & LOAN PORTFOLIO Production & Loan Portfolio MEASURE ($ in millions) 3Q26 2Q26 3Q25 CHANGE VS 3Q25 HFI loan portfolio (UPB) $7,428.0 $6,985.9 $6,273.3 18.4% Loan Production $911.3 $672.6 $739.0 23.3% Nonperforming loans (NPL) as a % of HFI loans1 10.1% 9.6% 9.8% 30 bps NPL realized gains
Slide 6: 3Q26 Originations Reach Record Levels
LOAN PRODUCTION 3Q26 Originations Reach Record Levels Loan Production Volume1 · $ in millions Traditional Commercial Investor 1-4 Rental Short-term Loan Products Government Insured Multifamily (CHHC) Strong growth of 23.3% Y/Y and 35.5% Q/Q Traditional Commercial volume totaled $422.5 million in UPB
Slide 7: Total Loan Portfolio UPB
LOAN PORTFOLIO TOTAL LOAN PORTFOLIO · UPB +30.3% five-year compounded annual growth Velocity’s total loan portfolio was $7.5 billion in UPB as of September 30, 2026, an increase of 18.8% from $6.3 billion in UPB as of September 30, 2025 Investor 1-4 Rental · Mixed Use · Multifamily · Retail · Wareho
Slide 8: Portfolio Yield, Cost of Funds and NIM
NET INTEREST MARGIN Portfolio Yield, Cost of Funds and NIM1 PORTFOLIO NIM · 3Q26 3.78% up 13 bps from 3.65% for 3Q25 −13 bps Portfolio Yield: Decreased 13 bps from 3Q25. Y/Y decrease primarily driven by lower NPL-related interest income realized in 3Q26 −23 bps Portfolio Cost of Funds: Decreased 23
Slide 9: Resolved NPLs Result In Net Gains
NONPERFORMING LOANS Resolved NPLs Result In Net Gains 10.3% 9.6% NONPERFORMING LOANS 1 $2.7 million of resolution gains over and above the receipt of all past due contractual interest on NPLs for 3Q26, or 103.0% of total UPB resolved The recent five-quarter average quarterly NPL resolution gains wer
Slide 10: 3Q26 NPL Resolutions and Recoveries Remained Strong
RESOLUTION ACTIVITIES 3Q26 NPL Resolutions and Recoveries Remained Strong TOTAL NPL RESOLUTION GAINS $2,690 3Q26 realized gains of $2.6 million on long-term NPLs, or 103.1% of UPB resolved and $0.1 million of gains, or 101.7% on short-term NPLs + NET ACCRUED INTEREST 1 $4,737 Contractual accrued int
Slide 11: Gain (Loss) on New & Existing REO
REAL ESTATE OWNED (REO) ACTIVITY Gain (Loss) on New & Existing REO REO PORTFOLIO BALANCE · $ IN MILLIONS % of HFI loans shown inside each bar GAIN ON NEW REO $4.8M LOSS ON EXISTING REO $8.8M 2.0% $ IN THOUSANDS 9/30/2025 9/30/2026 $ VAR % VAR GAIN ON NEW REO Gain on transfer to REO — amortized cost
Slide 12: Modest CECL Reserve Increase as Amortized Cost Portfolio Pays Down
CREDIT LOSS RESERVE Modest CECL Reserve Increase as Amortized Cost Portfolio Pays Down $ IN THOUSANDS 9/30/2025 9/30/2026 VAR % VAR Beginning balance 4,882 5,102 220 4.5% Provision for credit losses 381 531 150 39.4% Charge-offs (677) (326) 351 (51.8)% Ending balance 4,586 5,307 721 15.7% Total UPB
Slide 13: Two Securitizations Issued in 3Q26 and One in October
Two Securitizations Issued in 3Q26 and One in October $516.0 million VCC 2026-4 $465.7 million Subsequent to quarter end, issued the VCC 2026-4 securitization with a weighted average rate of 6.97%. CASH AND UNPLEDGED LOANS $193.4 million consisting of $86.8 million in unrestricted cash and cash equi
Slide 14: Outstanding Debt Balances
Outstanding Debt Balances1 Debt / Equity 9.6X 9.7X 9.7X 9.6X Recourse Debt / Equity2 1.0X 1.0X 1.0X 1.5X Securitizations Issued 2 2 2 2 Max. Warehouse Line Capacity $935 $935 $935 $975 (1) Debt balances are net of issuance costs and discounts as reported in the consolidated balance sheet. (2) Recour
Slide 15: Toorak Acquisition Remains On Track to Close in Q4 2026
TOORAK CAPITAL ACQUISITION · TRANSACTION UPDATE Toorak Acquisition Remains On Track to Close in Q4 2026 (1) Subject to customary purchase price adjustments. (2) Velocity loan portfolio as of 6/30/2026; Toorak loan portfolio as of 5/31/2026. See forward-looking statements disclaimer. 15 Adding a lead
Slide 16: Toorak Increases Production and Diversifies Mix
TOORAK CAPITAL ACQUISITION · STRATEGIC RATIONALE Toorak Increases Production and Diversifies Mix (1) Company and Toorak FY 2025 data, excluding TCP U.S. production except DSCR; combined figures are illustrative, not pro forma. (2) Velocity loan portfolio as of 6/30/2026; Toorak as of 5/31/2026. 16 F
Slide 17: Small Balance Investor Loan Market to Remain Resilient
OUTLOOK FOR VELOCITY’S KEY BUSINESS DRIVERS Small Balance Investor Loan Market to Remain Resilient MARKET Market demand for small balance investor properties to remain resilient despite higher interest rates Rental demand to stay strong as consumer balance sheets continue to be in relatively good sh
Slide 18: Appendix
Appendix Velocity Financial, Inc. - 3Q26 Results Presentation 18
Slide 19: Total Loan Portfolio UPB Rollforward
LOAN PORTFOLIO Total Loan Portfolio UPB Rollforward UPB in millions · waterfall; each movement bridges the running balance, vertical scale truncated Loan Portfolio at 6/30/26 Principal Payments CHHC Loan Sales1 Transfer to REO Loan Production Loan Portfolio at 9/30/26 19 (1) Held for sale loans sold
Slide 20: HFI Loan Portfolio
HFI LOAN PORTFOLIO HFI Loan Portfolio 100% = $7.43 billion UPB as of September 30, 2026 PORTFOLIO BY PROPERTY TYPE Investor 1-4 Rental 44.9% Retail 11.7% Mixed use 10.8% Office 9.9% Warehouse 7.3% Multifamily 7.0% Other 8.4% PORTFOLIO BY STATE California 19.6% New York 12.6% Florida 11.4% New Jersey
Slide 21: Loan Portfolio Metrics
LOAN PORTFOLIO 3Q25 2Q26 3Q26 Loan to Value 65.5% 64.6% 64.5% Loan Count 15,978 18,219 19,481 WAC1 9.7% 9.7% 9.8% Average Loan Balance2 $392.8 $383.4 $382.8 FVO% 66.3% 74.1% 76.5% APPENDIX Loan Portfolio Metrics (1) Weighted Average Coupon on the total loan portfolio. (2) $ in thousands. Velocity Fi
Slide 22: HFI Production Metrics
HFI PRODUCTION METRICS 3Q25 4Q25 1Q26 2Q26 3Q26 Change since 2Q26 Change since 3Q25 HFI Production1 Investor 1-4 Rental $302.3 $281.1 $232.6 $232.3 $318.3 37.0% 5.3% Traditional Commercial 374.6 322.1 381.3 337.6 422.5 25.1% 12.8% Short-term 36.1 29.6 23.3 16.4 15.5 (5.4%) (57.0%) Total HFI producti
Slide 23: Book Value and Adjusted Book Value Per Share
BOOK VALUE PER SHARE Book Value and Adjusted Book Value Per Share 2 Book value per share · pillars scaled, vertical scale truncated at $15.00 Diluted book value at 6/30/263 Diluted book value at 9/30/264 Adjusted book value at 9/30/265 $18.43 6/30/26 › $(0.09) Non-Core Items1 › $0.13 Non-Earnings Ac
Slide 24: Reinvested Earnings and Core Return on Average Equity
REINVESTED EARNINGS COMPOUNDS RETURNS Reinvested Earnings and Core Return on Average Equity Core Diluted Earnings Per Share Stockholders’ Equity2 Earnings growth re-invested at high marginal ROE compounds book value and ROE (1) Stockholders’ equity includes noncontrolling interest in subsidiary as o
Slide 25: Balance Sheet
APPENDIX Velocity Financial, Inc. Balance Sheet In thousands. 9/30/2026 and 6/30/2026 unaudited; 12/31/2025 audited. 25 ASSETS 9/30/2026 6/30/2026 12/31/2025 Cash and cash equivalents $ 86,754 $ 76,115 $ 92,103 Restricted cash 22,530 169,088 157,134 Loans held for sale, at fair value 26,278 — — Loan
Slide 26: Income Statements
APPENDIX Velocity Financial, Inc. Income Statements $ in thousands. Quarters ended, unaudited. 26 REVENUES 9/30/2026 6/30/2026 9/30/2025 Interest income $ 169,461 $ 160,986 $ 144,119 Interest expense — portfolio related 101,481 97,627 88,899 Net interest income — portfolio related 67,980 63,359 55,2
Slide 27: HFI Portfolio Delinquency Trends
$ IN THOUSANDS SEPTEMBER 30, 2026 JUNE 30, 2026 MARCH 31, 2026 DECEMBER 31, 2025 SEPTEMBER 30, 2025 $ % $ % $ % $ % $ % PERFORMING / ACCRUING Current 6,125,379 82.6% 5,772,386 82.6% 5,648,159 82.6% 5,432,204 83.7% 5,202,058 82.9% 30–59 days past due 372,407 5.0% 374,269 5.4% 293,479 4.3% 296,100 4.6
Slide 28: Resolution Activities
APPENDIX Resolution Activities (1) Net Accrued Interest includes contractual accrued interest recovered upon resolution of the loan, net of servicing advances written off. $ in thousands. 28 THIRD QUARTER 2026 THIRD QUARTER 2025 RESOLUTION ACTIVITY UPB $ GAINS NET ACCRUED INTEREST1 TOTAL RECOVERED L
Slide 29: Adjusted Financial Metric Reconciliation to GAAP Net Income
APPENDIX Adjusted Financial Metric Reconciliation to GAAP Net Income (1) “Core net income” is a non-GAAP financial measure which excludes incentive compensation expenses, costs related to the Company’s employee stock purchase program (ESPP) and M&A due diligence from GAAP net income. $ in thousands,
Slide 30: 3Q26 Results
3Q26 Results November 4, 2026