Velocity Financial Q3 2024 10-Q Filing

Ticker: VEL · Form: 10-Q · Filed: 2024-11-08T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, reporting, debt

TL;DR

**Velocity Financial Q3 10-Q out: Financials updated, fair value details, and subsequent events noted.**

AI Summary

Velocity Financial, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported on its financial position, including details on its loan portfolios and borrowings. Key disclosures relate to fair value measurements and subsequent events, such as a subsequent event on October 10, 2024.

Why It Matters

This filing provides investors with an update on Velocity Financial's financial health and operational performance for the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures, but the specific financial details and any identified risks within the report can influence the perceived risk level.

Key Numbers

Key Players & Entities

FAQ

What is the primary purpose of this 10-Q filing for Velocity Financial, Inc.?

The 10-Q filing provides a comprehensive update on Velocity Financial, Inc.'s financial performance and position for the quarterly period ending September 30, 2024.

What specific financial reporting standards or classifications are mentioned in the filing?

The filing references US GAAP classifications such as 'FairValueInputsLevel2Member', 'LoansIndividuallyEvaluatedForImpairmentMember', and 'FinancingReceivablesEqualToGreaterThan90DaysPastDueMember'.

Are there any significant events disclosed that occurred after the reporting period?

Yes, the filing indicates a 'SubsequentEventMember' on October 10, 2024.

What types of financial instruments or portfolios are highlighted in the filing?

The filing mentions 'ResidentialOneToFourUnitRefinancePortfolioSegmentMember', 'SecuredDebtMember', and specific repurchase agreements like 'TwoThousandThirteenRepurchaseAgreementMember'.

What is the fiscal year end for Velocity Financial, Inc.?

Velocity Financial, Inc.'s fiscal year ends on December 31.

Filing Stats: 4,421 words · 18 min read · ~15 pages · Grade level 18.8 · Accepted 2024-11-07 19:29:26

Key Financial Figures

Filing Documents

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 35 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 4.

Controls and Procedures

Controls and Procedures 57 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 3. Defaults Upon Senior Securities 58 Item 4. Mine Safety Disclosures 58 Item 5. Other Information 58 Item 6. Exhibits 59

SIGNATURES

SIGNATURES 61 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) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and cash equivalents $ 44,094 $ 40,566 Restricted cash 23,167 21,361 Loans held for sale, at fair value 19,231 17,590 Loans held for investment, at amortized cost 2,526,320 2,828,123 Loans held for investment, at fair value 2,354,718 1,306,072 Total loans, net 4,900,269 4,151,785 Accrued interest receivables 32,944 27,028 Receivables due from servicers 93,681 85,077 Other receivables 4,265 8,763 Real estate owned, net 62,361 44,268 Property and equipment, net 1,693 2,785 Deferred tax asset 14,501 2,339 Mortgage servicing rights, at fair value 12,416 8,578 Goodwill 6,775 6,775 Other assets 6,308 5,248 Total assets $ 5,202,474 $ 4,404,573 LIABILITIES Accounts payable and accrued expenses $ 140,534 $ 121,969 Secured financing, net 284,371 211,083 Securitized debt, at amortized cost 2,105,099 2,418,811 Securitized debt, at fair value 1,749,268 877,417 Warehouse and repurchase facilities, net 434,027 334,755 Derivative liability 1,486 3,665 Total liabilities 4,714,785 3,967,700 Commitments and contingencies EQUITY Common stock ($ 0.01 par value, 100,000,000 shares authorized; 33,330,407 and 32,987,248 shares issued, 33,114,845 and 32,865,836 shares outstanding as of September 30, 2024 and December 31, 2023, respectively) 335 331 Additional paid-in capital 313,087 306,736 Retained earnings 176,738 128,906 Treasury stock, at cost ( 215,562 and 121,412 common shares as of September 30, 2024 and December 31, 2023, respectively) ( 2,869 ) ( 1,319 ) Accumulated other comprehensive loss ( 2,655 ) ( 1,210 ) Total Velocity Financial, Inc. stockholders' equity 484,6

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