Velocity Financial, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Velocity Financial, Inc. filed its Q1 2024 10-Q, detailing financial metrics and portfolio statuses.</b>

AI Summary

Velocity Financial, Inc. (VEL) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Velocity Financial, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing references various financial instruments and statuses, including "FinancingReceivables60To89DaysPastDueMember" and "NonaccrualStatusMember". Specific trusts like "TwoThousandSeventeenTrustTwoMember" and "TwoThousandTwentyOneTrustOneMember" are mentioned in relation to December 31, 2023. The company utilizes "DiscountedCashFlowMember" and "PrepaymentRateMember" as valuation techniques. The report details "SecuritizedDebtMember" for the period of January 1, 2024, to March 31, 2024.

Why It Matters

For investors and stakeholders tracking Velocity Financial, Inc., this filing contains several important signals. The 10-Q filing provides a detailed look into Velocity Financial's financial health and operational performance for the first quarter of 2024. Specific mentions of past-due receivables and nonaccrual statuses offer insight into the company's risk management and loan portfolio quality.

Risk Assessment

Risk Level: medium — Velocity Financial, Inc. shows moderate risk based on this filing. The company's financial health is subject to risks associated with loan portfolio performance, as indicated by mentions of past-due and nonaccrual statuses for financing receivables.

Analyst Insight

Investors should analyze the specific details of loan portfolio performance and risk management strategies outlined in the 10-Q to assess Velocity Financial's current financial standing.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-03 — Filing Date (Filed as of date)
• 2023-12-31 — Previous Year End Date (Referenced date for financial status)
• 2024-01-01 to 2024-03-31 — Securitized Debt Period (Period for SecuritizedDebtMember)

Key Players & Entities

• Velocity Financial, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-03 (date) — Filed as of date
• 0000950170-24-052429 (filing) — Accession number
• 30699 RUSSELL RANCH ROAD (address) — Business address street 1
• WESTLAKE VILLAGE (location) — Business address city
• CA (location) — Business address state
• 91362 (postal_code) — Business address zip

FAQ

Risk Factors

• Financing Receivables Aging and Accrual Status [medium — financial]: The filing details the status of financing receivables, including those 60-89 days past due and in nonaccrual status, across various portfolio segments.
• Loan Impairment Evaluation [medium — financial]: The company individually and collectively evaluates loans for impairment, with specific allowances noted for certain loan categories.
• Fair Value Measurements [medium — financial]: Fair value measurements, including recurring and nonrecurring, are detailed, utilizing techniques like discounted cash flow and inputs from Level 3 fair value measurements.
• Debt Agreements [medium — financial]: Various debt agreements are referenced, including securitized debt, repurchase agreements, and term loans, indicating the company's leverage and financing structure.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share VEL The New York Stock Ex

Filing Documents

• vel-20240331.htm (10-Q) — 5460KB
• vel-ex10_16.htm (EX-10.16) — 39KB
• vel-ex31_1.htm (EX-31.1) — 17KB
• vel-ex31_2.htm (EX-31.2) — 17KB
• vel-ex32_1.htm (EX-32.1) — 11KB
• vel-ex32_2.htm (EX-32.2) — 11KB
• 0000950170-24-052429.txt (&nbsp;) — 22666KB
• vel-20240331.xsd (EX-101.SCH) — 2057KB
• vel-20240331_htm.xml (XML) — 6140KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 4.

Controls and Procedures

Controls and Procedures 53 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 54 Item 1A.

Risk Factors

Risk Factors 54 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54 Item 3. Defaults Upon Senior Securities 54 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 54 Item 6. Exhibits 55

SIGNATURES

SIGNATURES 57 i

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Consolidated Financ ial Statements (Unaudited)

Item 1. Consolidated Financ ial Statements (Unaudited) VELOCITY FINANCIAL, INC. CONSOLIDATED B ALANCE SHEETS ($ in thousands, except par value amounts) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Cash and cash equivalents $ 34,829 $ 40,566 Restricted cash 24,216 21,361 Loans held for sale, at fair value — 17,590 Loans held for investment, net 2,727,518 2,828,123 Loans held for investment, at fair value 1,649,540 1,306,072 Total loans, net 4,377,058 4,151,785 Accrued interest receivables 29,374 27,028 Receivables due from servicers 87,523 85,077 Other receivables 2,113 8,763 Real estate owned, net 46,280 44,268 Property and equipment, net 2,013 2,785 Deferred tax asset 1,580 2,339 Mortgage servicing rights, at fair value 9,022 8,578 Derivative assets 1,967 — Goodwill 6,775 6,775 Other assets 5,468 5,248 Total assets $ 4,628,218 $ 4,404,573 LIABILITIES Accounts payable and accrued expenses $ 123,988 $ 121,969 Secured financing, net 283,813 211,083 Securitized debt, net 2,329,906 2,418,811 Securitized debt, at fair value 1,073,843 877,417 Warehouse and repurchase facilities, net 360,216 334,755 Derivative liability — 3,665 Total liabilities 4,171,766 3,967,700 Commitments and contingencies EQUITY Common stock ($ 0.01 par value, 100,000,000 shares authorized; 33,186,464 and 32,987,248 shares issued, 32,985,794 and 32,865,836 shares outstanding as of March31, 2024 and December 31, 2023, respectively) 334 331 Additional paid-in capital 308,259 306,736 Retained earnings 146,157 128,906 Treasury stock, at cost ( 200,670 and 121,412 common shares as of March 31, 2024 and December 31, 2023, respectively) ( 2,603 ) ( 1,319 ) Accumulated other comprehensive income (loss) 794 ( 1,210 ) Total Velocity Financial, Inc. stockholders' equity 452,941 433,444 No