Velocity Financial, Inc. ( (VEL) ) has released its Q3 earnings. Here is a breakdown of the information Velocity Financial, Inc. presented to its investors.
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Velocity Financial, Inc., based in Westlake Village, California, is a real estate finance company specializing in business purpose loans secured by residential rental and small commercial properties, operating through a network of independent mortgage brokers nationwide.
In its third-quarter 2025 earnings report, Velocity Financial, Inc. announced a significant increase in net income, reaching $25.4 million, up 60.6% from the previous year. The company also reported a record loan production of $739.0 million, reflecting strong demand in the commercial and residential rental property markets.
Key financial metrics for the quarter include a diluted earnings per share of $0.65, up from $0.44 in the same quarter last year, and a net interest margin of 3.65%, slightly higher than the previous year. The company also completed two securitizations totaling $648.4 million, enhancing its liquidity position to $143.5 million.
Velocity Financial’s loan portfolio grew to $6.3 billion, a 32% increase from the previous year, with notable growth in traditional commercial and investor 1-4 rental loans. The company’s nonperforming loans decreased to 9.8% of the total portfolio, indicating improved credit performance.
Looking ahead, Velocity Financial remains optimistic about its growth prospects, driven by strong portfolio earnings and continued demand for its loan products. The company is confident in its ability to sustain profitable market share growth in the evolving real estate finance sector.