Velocity Financial Inc. (VEL) Tops Q4 EPS by 16c, Revenues Beat

Velocity Financial Inc. (NYSE: VEL) reported Q4 EPS of $0.29, $0.16 better than the analyst estimate of $0.13. Revenue for the quarter came in at $22.5 million versus the consensus estimate of $17.75 million.

Fourth Quarter Highlights:

• Net income and core income(1) of $9.6 million and diluted EPS of $0.29
• - Net income growth of 175% from the prior quarter driven by gains from the sale of newly originated loans and improved net interest margin
• 4Q20 loan production volume totaled $179.3 million, driven by strong demand
• Book value per common share as of December 31, 2020, was $10.93 compared to $10.44 as of September 30, 2020
• Portfolio net interest margin of 4.07%, an increase of 30 basis points (bps) from 3Q20, driven by improved loan yields and lower portfolio debt costs
• Resolutions in 4Q20 were 103.5% of assets resolved, continuing our consistent track record of net gains over and above contractual principal and interest due
• Nonaccrual loans totaled $332.8 million as of December 31, 2020, up from $314.7 million as of September 30, 2020, driven by the continuing impacts of the pandemic

“The fourth quarter marked a significant turning point in the Company’s emergence from the effects of the pandemic,” said Chris Farrar, President and CEO. “The excellent operating results reflect the strength of our business model, despite unprecedented economic stress in 2020. I am proud of our team’s return to increasing production levels and the ongoing positive resolution of delinquent loans. We have continued to drive momentum in our production activities as we move into 2021, and looking forward, we expect to organically grow originations and opportunistically evaluate other areas to deploy capital profitably.”

For earnings history and earnings-related data on Velocity Financial Inc. (VEL) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Evogene chairman to address dissident shareholders on results call
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49