VEL

EX-99

2 d122273dex99.htm

EX-99

EX-99

Exhibit 99

Velocity Financial, Inc. Reports

First Quarter 2026 Results

First Quarter Highlights

Financial Results

•

Net income of $22.4 million, an increase of 18.4% from $18.9 million for 1Q25. Diluted EPS of $0.57, an increase of $0.06 from $0.51 per share for 1Q25

•

Driven by loan portfolio growth and strong portfolio earnings

•

Core net income of $26.5 million, an increase of 30.8% from $20.3 million for 1Q25. Core diluted EPS of $0.68, an increase from $0.55 per share for 1Q251

•

Diluted book value per common share of $17.75, an increase of 19.4% from $14.87 as of March 31, 2025

•

Portfolio net interest margin (NIM) of 3.56%, an increase of 21 bps from 3.35% for 1Q25

•

Consistently strong NIM levels have resulted from rate discipline on new loan production, with average loan coupons of 10.28% on loans produced over the last five quarters

Portfolio

•

Loan production of $639.4 million, flat with $640.4 million in 1Q25

•

Nonperforming loans (NPL) as a percentage of Held for Investment (HFI) loans was 10.1%, a decrease from 10.8% as of March 31, 2025

•

NPL resolutions totaled $70.1 million in UPB

•

Net gains of 102.3% or $1.6 million

•

Total NPL recoveries of 106.5% or $4.6 million of UPB resolved including accrued interest received

Liquidity and Capitalization

•

Completed two securitizations totaling $513.8 million

•

Liquidity of $329.0 million, consisting of $87.1 million in unrestricted cash and $241.9 million in available borrowings from unpledged loans

•

Total available warehouse line capacity of $835.6 million

1

Core net income and core diluted EPS are non-GAAP financial measures. Non-GAAP core adjustments include stock-based compensation expenses and costs related to the Company’s employee stock purchase plan. See “Non-GAAP Financial Measures” and “Non-GAAP Financial Measure Reconciliations to GAAP Measures” at the end of this press release for more information regarding the use of non-GAAP measures.

1

Westlake Village, CA – May 6, 2026 – Velocity Financial, Inc. (NYSE: VEL) (Velocity or the Company), a leader in business purpose loans, reported net income of $22.4 million and core net income of $26.5 million for 1Q26, compared to $18.9 million and $20.3 million, respectively, for 1Q25. Earnings and core earnings per diluted share were $0.57 and $0.68 for 1Q26, compared to $0.51 and $0.55, respectively, for 1Q25.

“Velocity continued to deliver impressive earnings in the first quarter of 2026” said Chris Farrar, President and CEO. “Velocity’s first quarter 2026 results were driven by higher portfolio net interest income and noninterest income from our growing portfolio and new production volume. Financing demand remained strong during the quarter, in both the traditional commercial and 1-4 family residential rental property markets, as investors continued to see considerable value in smaller commercial properties. We remain confident in Velocity’s long-term growth prospects and our ability to sustain profitable market share growth.”

Operating Results

Key Performance Indicators2

Three Months Ended March 31,

2026

2025

Variance

% Variance

($ in thousands, except per share amounts)

Income before income tax

$ 30,877

$ 26,894

$ 3,983

14.8 %

Net income

$ 22,363

$ 18,887

$ 3,476

18.4 %

Diluted earnings per share

$ 0.57

$ 0.51

$ 0.06

11.8 %

Core income before income tax

$ 36,684

$ 29,103

$ 7,581

26.0 %

Core net income

$ 26,482

$ 20,253

$ 6,229

30.8 %

Core diluted earnings per share

$ 0.68

$ 0.55

$ 0.13

23.6 %

Net interest margin — portfolio related

3.56 %(1)

3.35 %(1)

0.21 %

6.3 %

Net interest margin — total company

2.65 %(1)

2.88 %(1)

(0.23 )%

(8.0 )%

Average common equity

$ 682,417

$ 534,940

$ 147,477

27.6 %

Pre-tax return on average equity

18.1 %(1)

20.1 %(1)

(2.0 )%

(10.0 )%

Core pre-tax return on average equity

21.5 %(1)

21.8 %(1)

(0.3 )%

(1.4 )%

(1)

Percentages are annualized

Condensed Results of Operations

Three Months Ended March 31,

2026

2025

$ Variance

% Variance

(In thousands)

Net interest income

$ 43,920

$ 37,510

$ 6,410

17.1 %

Provision for credit losses

1,661

1,872

(211 )

(11.3 )%

Net interest income after provision

42,259

35,638

6,621

18.6 %

Other operating income

42,957

33,446

9,511

28.4 %

Net revenue

85,216

69,084

16,132

23.4 %

Operating expenses

54,339

42,190

12,149

28.8 %

Income before income taxes

30,877

26,894

3,983

14.8 %

Income tax expense

8,578

8,246

332

4.0 %

Net income

22,299

18,648

3,651

19.6 %

Net loss attributable to noncontrolling interest

(64 )

(239 )

175

73.2 %

Net income attributable to Velocity Financial, Inc.

$ 22,363

$ 18,887

$ 3,476

18.4 %

2

Core income before income tax, core net income, core diluted EPS and core pre-tax return on average equity are non-GAAP measures. Please see “Non-GAAP Financial Measures” and “Non-GAAP Financial Measure Reconciliations to GAAP Measu

8-K

false 0001692376 0001692376 2026-03-11 2026-03-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 11, 2026

Velocity Financial, Inc. (Exact name of Registrant as Specified in Its Charter)

Delaware

001-39183

46-0659719

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

2945 Townsgate Road, Suite 110

Westlake Village, California

91361

(Address of Principal Executive Offices)

(Zip Code) Registrant’s Telephone Number, Including Area Code: (818) 532-3700 Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

VEL

The New York Stock Exchange

Indicate by check mark

Common stock, par value $0.01 per share

VEL

NYSE Texas, Inc. Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition. On March 11, 2026 we issued a press release announcing financial results for the quarter and year ended December 31, 2025. The press release is attached as Exhibit 99 and is incorporated herein by reference. The information provided in Item 2.02, including Exhibit 99, is intended to be furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended. Item 9.01 Exhibits.

Exhibit Number

Description

99

Press Release dated March 11, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Velocity Financial, Inc.

Date: March 12, 2026

By:

/s/ Roland T. Kelly

Roland T. Kelly

Chief Legal Officer and General Counsel

8-K

false 0001692376 0001692376 2026-01-26 2026-01-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 26, 2026

Velocity Financial, Inc. (Exact name of Registrant as Specified in Its Charter)

Delaware

001-39183

46-0659719

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

2945 Townsgate Road, Suite 110

Westlake Village, California

91361

(Address of Principal Executive Offices)

(Zip Code) Registrant’s Telephone Number, Including Area Code: (818) 532-3700 Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

VEL

The New York Stock Exchange

(indicate by check mark)

Common stock, par value $0.01 per share

VEL

NYSE Texas, Inc. Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition. On January 26, 2026, Velocity Financial, Inc. (“Velocity” or the “Company”) issued a press release announcing certain preliminary unaudited financial results for the fourth quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated into this Item 2.02 by reference. The information provided in Item 2.02, including Exhibit 99.1, is intended to be furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended. Item 8.01 Other Events. Unregistered Offering of Senior Notes On January 26, 2026, Velocity issued a press release announcing the offering (the “Offering”) by Velocity Commercial Capital, LLC, a wholly-owned subsidiary of the Company (the “Issuer), of up to $500 million aggregate principal amount of Senior Notes due 2031 (the “Notes”), subject to market and other conditions. The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company. The Notes will not be guaranteed by any of the Company’s subsidiaries at the time of issuance. The Notes are to be sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain persons outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This Current Report on Form 8-K, including Exhibit 99.2 attached hereto, shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the press release is attached hereto as Exhibit 99.2 and is incorporated herein into this Item 8.01 by reference. Forward-Looking Statements This Current Report on Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, which reflect management’s current views and estimates regarding the prospects of the industry and our prospects, plans, business, results of operations, financi