Velocity Financial, Inc. (NYSE: VEL) (“Velocity” or the “Company”) reported net income of $3.5 million for the third quarter of 2020 and diluted earnings per common share of $0.11. Core income(1) for the third quarter of 2020 was $3.9 million, excluding severance costs related to workforce reductions. Book value per common share was $10.44, an increase from $10.26 as of June 30, 2020.
“Velocity’s third quarter results highlight the significant progress our team has made in normalizing business operations and improving earnings performance,” said Chris Farrar, President and CEO. “The strong volumes we have experienced with the restart of our loan production activities have exceeded our expectations and reflect significant demand for the financing solutions we provide. We believe that opportunities for Velocity have expanded due to fundamental shifts in real estate markets, which have helped fuel heightened interest from our existing brokers and driven the recent addition of nearly four hundred new relationships. With the restart of our production operations, our business is back on track and poised to deliver strong performance and attractive returns going forward.”
Third Quarter Operating Results |
|||||||||||||
KEY PERFORMANCE INDICATORS | |||||||||||||
($ in thousands) |
|
3Q 2020 |
|
|
2Q 2020 |
|
$ Variance |
% Variance |
|||||
Pretax income | $ |
5,025 |
|
$ |
2,625 |
|
$ |
2,400 |
|
91 |
% |
||
Net income | $ |
3,481 |
|
$ |
2,141 |
|
$ |
1,340 |
|
63 |
% |
||
Preferred stock deemed dividend(1) |
|
- |
|
$ |
(48,955 |
) |
|
n.a. |
|
n.a. |
|
||
Basic earnings (loss) per share | $ |
0.17 |
|
$ |
(2.33 |
) |
$ |
2.5 |
|
n.a. |
|
||
Diluted earnings (loss) per share | $ |
0.11 |
|
$ |
(2.33 |
) |
$ |
2.4 |
|
n.a. |
|
||
Core Earnings(2) | $ |
3,913 |
|
$ |
3,408 |
|
$ |
505 |
|
15 |
% |
||
Pretax return on equity |
|
9.60 |
% |
|
4.94 |
% |
|
n.a. |
|
94 |
% |
||
Return on equity |
|
6.60 |
% |
|
4.03 |
% |
|
n.a. |
|
64 |
% |
||
Net interest margin - portfolio |
|
3.77 |
% |
|
3.54 |
% |
|
n.a. |
|
6 |
% |
||
Net interest margin -total company |
|
3.39 |
% |
|
3.18 |
% |
|
n.a. |
|
7 |
% |
||
Average common equity | $ |
209,468 |
|
$ |
212,407 |
|
$ |
(2,939 |
) |
(1 |
)% |
||
(1) Charged against common equity | |||||||||||||
(2) Core earnings is a non-GAAP measure. Please see the reconciliation to GAAP net income at the end of this release. |
Discussion of results:
TOTAL LOAN PORTFOLIO | |||||||||||||
($ of UPB in millions) |
|
3Q 2020 |
|
|
2Q 2020 |
|
$ Variance |
% Variance |
|||||
Held for Investment | |||||||||||||
Investor 1-4 Rental | $ |
1,008 |
|
$ |
841 |
|
$ |
166 |
|
20 |
% |
||
Mixed Use |
|
254 |
|
|
260 |
|
|
(5 |
) |
(2 |
)% |
||
Multi-Family |
|
187 |
|
|
193 |
|
|
(6 |
) |
(3 |
)% |
||
Retail |
|
173 |
|
|
178 |
|
|
(5 |
) |
(3 |
)% |
||
All Other |
|
364 |
|
|
373 |
|
|
(9 |
) |
(2 |
)% |
||
Total | $ |
1,986 |
|
$ |
1,845 |
|
$ |
142 |
|
8 |
% |
||
Held for Sale | |||||||||||||
Investor 1-4 Rental | $ |
- |
|
$ |
214 |
|
$ |
(214 |
) |
(100 |
)% |
||
Total Managed Loan Portfolio UPB | $ |
1,986 |
|
$ |
2,059 |
|
$ |
(73 |
) |
(4 |
)% |
||
Key loan portfolio metrics: | |||||||||||||
Total loan count |
|
6,029 |
|
|
6,294 |
|
|||||||
Weighted average loan to value |
|
66.18 |
% |
|
65.86 |
% |
|||||||
Weighted average total portfolio yield |
|
8.21 |
% |
|
7.59 |
% |
|||||||
Weighted average portfolio debt cost |
|
5.07 |
% |
|
4.63 |
% |
Discussion of results:
LOAN PRODUCTION VOLUMES | |||||||||
($ in millions) | Oct. 2020 | Sept. 2020 | $ Variance | % Variance | |||||
Investor 1-4 Rental | $ |
47 |
$ |
6 |
$ |
40 |
656 |
% |
|
Traditional Perm. |
|
16 |
|
2 |
|
14 |
733 |
% |
|
Short-term loans |
|
- |
|
- |
|
- |
- |
|
|
Total loan production | $ |
63 |
$ |
8 |
$ |
55 |
674 |
% |
|
Note: Loan production operations were suspended in late March 2020 and resumed in September 2020. |
Discussion of results:
CREDIT PERFORMANCE INDICATORS | |||||||||||||
($ in thousands) |
|
3Q 2020 |
|
|
2Q 2020 |
|
$ Variance |
% Variance |
|||||
Nonperforming loans(1) | $ |
314,727 |
|
$ |
329,132 |
|
$ |
(14,405 |
) |
(4 |
)% |
||
Nonperforming loans % total HFI Loans |
|
15.84 |
% |
|
15.99 |
% |
|
- |
|
(1 |
)% |
||
Total Charge Offs(2) | $ |
1,046 |
|
$ |
75 |
|
$ |
971 |
|
n.a. |
|
||
Charge-offs as a % of HFI loans |
|
0.053 |
% |
|
0.004 |
% |
|
- |
|
n.a. |
|
||
CECL Reserve | $ |
5,748 |
|
$ |
5,221 |
|
$ |
527 |
|
10 |
% |
||
(1) Nonperforming/Nonaccrual loans include loans 90+ days past due, loans in foreclosure and in bankruptcy. | |||||||||||||
(2) $788 thousand of 3Q 2020 is related to an unusual and nonrecurring charge-off due to a fraud loan and not related to COVID-19 pandemic. |
Discussion of results:
NET REVENUES | |||||||||||||
($ in thousands) |
|
3Q 2020 |
|
|
2Q 2020 |
|
$ Variance | % Variance | |||||
Interest income | $ |
41,374 |
|
$ |
39,755 |
|
$ |
1,619 |
|
4 |
% |
||
Interest expense - portfolio related |
|
(22,347 |
) |
|
(21,189 |
) |
|
(1,158 |
) |
5 |
% |
||
Interest expense - corporate debt |
|
(1,913 |
) |
|
(1,894 |
) |
|
(19 |
) |
1 |
% |
||
Net Interest Income | $ |
17,114 |
|
$ |
16,672 |
|
$ |
442 |
|
3 |
% |
||
CECL provision |
|
(1,573 |
) |
|
(1,800 |
) |
|
227 |
|
(13 |
)% |
||
Gain on loan sales |
|
(51 |
) |
|
155 |
|
|
(206 |
) |
(133 |
)% |
||
Other Operating (loss) income |
|
1,400 |
|
|
(1,494 |
) |
|
2,894 |
|
n.a. |
|
||
Total Net Revenues | $ |
16,890 |
|
$ |
13,533 |
|
$ |
3,357 |
|
25 |
% |
CECL Reserve Reconciliation (Balance Sheet): |
|
3Q 2020 |
|
($ in thousands) | |||
Beginning Balance 6/30/2020 | $ |
(5,220 |
) |
Add: Reserve for short-term loans transferred to HFI |
|
(1,166 |
) |
3Q20 CECL provision |
|
(407 |
) |
Deduct: 3Q20 charge-offs |
|
1,046 |
|
Ending Balance 9/30/2020 | $ |
(5,748 |
) |
Income Statement (HFS to HFI Reclass): |
|
3Q 2020 |
|
Interest Income | |||
Provision for Loan Loss | $ |
(1,166 |
) |
Other Income | |||
Reversal of HFS LOCOM Valuation |
|
1,307 |
|
Net P&L Impact | $ |
141 |
|
Discussion of results:
OPERATING EXPENSES | ||||||||||||
($ in thousands) |
|
3Q 2020 |
|
2Q 2020 |
$ Variance | % Variance | ||||||
Compensation and employee benefits | $ |
5,692 |
$ |
5,863 |
$ |
(171 |
) |
(3 |
)% |
|||
Rent and occupancy |
|
415 |
|
448 |
|
(33 |
) |
(7 |
)% |
|||
Loan servicing |
|
2,168 |
|
1,754 |
|
414 |
|
24 |
% |
|||
Professional fees |
|
1,051 |
|
588 |
|
463 |
|
79 |
% |
|||
Real estate owned, net |
|
898 |
|
408 |
|
490 |
|
120 |
% |
|||
Other expenses |
|
1,641 |
|
1,847 |
|
(206 |
) |
(11 |
)% |
|||
Total expenses | $ |
11,865 |
$ |
10,908 |
$ |
957 |
|
9 |
% |
Discussion of results:
SECURITIZATIONS | ||||||||||
Securities | Balance at | |||||||||
Trusts | Issued | 9/30/2020 | W.A. Rate | |||||||
2011-1 Trust | $ |
61,042 |
$ |
- |
- |
|||||
2014-1 Trust |
|
161,076 |
|
25,599 |
6.97% |
|||||
2015-1 Trust |
|
285,457 |
|
41,190 |
7.52% |
|||||
2016-1 Trust |
|
319,809 |
|
62,339 |
7.54% |
|||||
2016-2 Trust |
|
166,853 |
|
46,984 |
6.40% |
|||||
2017-1 Trust |
|
211,910 |
|
80,174 |
5.08% |
|||||
2017-2 Trust |
|
245,601 |
|
138,456 |
3.34% |
|||||
2018-1 Trust |
|
176,816 |
|
110,262 |
4.02% |
|||||
2018-2 Trust |
|
307,988 |
|
208,206 |
4.51% |
|||||
2019-1 Trust |
|
235,580 |
|
192,856 |
4.05% |
|||||
2019-2 Trust |
|
207,020 |
|
168,819 |
3.42% |
|||||
2019-3 Trust |
|
154,419 |
|
132,893 |
3.25% |
|||||
2020-1 Trust |
|
248,700 |
|
233,005 |
2.84% |
|||||
2020-2 Trust |
|
96,352 |
|
94,113 |
4.48% |
|||||
2020-MC1 Trust |
|
179,371 |
|
162,173 |
4.50% |
|||||
$ |
3,057,994 |
$ |
1,697,069 |
|||||||
Discussion of results:
RESOLUTION ACTIVITY | THIRD QUARTER 2020 | SECOND QUARTER 2020 | |||||||||
($ in thousands) | UPB $ | Gain / (Loss) $ | UPB $ | Gain / (Loss) $ | |||||||
Paid in full | $ |
9,705 |
$ |
728 |
|
$ |
6,658 |
$ |
336 |
|
|
Paid current |
|
1,152 |
|
24 |
|
|
19,635 |
|
208 |
|
|
REO sold |
|
1,628 |
|
(312 |
) |
|
1,406 |
|
38 |
|
|
$ |
12,485 |
$ |
440 |
|
$ |
27,699 |
$ |
582 |
|
||
Resolutions as a % of nonperforming UPB |
|
103.5 |
% |
|
102.1 |
% |
Discussion of results:
Conference Call Information
The Company will host a webcast to discuss the third quarter 2020 results on November 11, 2020 at 5:00 p.m. Eastern Time. Listeners can access the webcast via the link below:
https://services.choruscall.com/links/vel201111roBZnCkl.html
The earnings discussion can also be accessed by dialing 1-866-807-9684 in the U.S. and Canada. International callers must dial 1-412-317-5415. Callers should ask to be joined into the Velocity Financial, Inc. earnings call. To listen to the webcast, please go to Velocity’s website at least 15 minutes before the call to register and to download and install any needed software.
Management’s slide presentation will be available on the Company’s Investor Relations website at www.velfinance.com after the market close on Wednesday, November 11, 2020.
A replay of the call will be available through midnight on November 18, 2020 and can be accessed by dialing 1-877-344-7529 in the U.S. and 855-669-9658 in Canada or 1-412-317-0088 internationally and entering access code #10148332. The replay will also be available on the Investor Relations section of the Company's website under "Events and Presentations.”
About Velocity Financial, Inc.
Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that primarily originates and manages investor loans secured by 1-4-unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers it has built and refined over 15 years.
(1)
|
|
Core Earnings is a non-GAAP financial measures the Company presents to help investors better understand unique items that impact earnings. For a reconciliation of GAAP EPS to Core Earnings, please refer to the sections of this press release titled “Non-GAAP Financial Measures” and “Adjusted Financial Metric Reconciliation to GAAP Net Income.” |
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses Core Earnings, which is a non-GAAP financial measure. For more information on Core Earnings, please refer to the section of this press release below titled “Adjusted Financial Metric Reconciliation to GAAP Net Income” at the end of this press release.
Forward-Looking Statements
Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to anticipated results, expectations, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “goal,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions.
The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to, (1) the continued course and severity of the COVID-19 pandemic, and its direct and indirect impacts, (2) general economic and real estate market conditions, (3) regulatory and/or legislative changes, (4) our customers' continued interest in loans and doing business with us, (5) market conditions and investor interest in our contemplated securitization and (6) changes in federal government fiscal and monetary policies.
Additional information relating to these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements can be found in the section titled ‘‘Risk Factors” in our Form 10-Q filed with the SEC on May 14, 2020, as well as other cautionary statements we make in our current and periodic filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.velfinance.com.
Velocity Financial, Inc. Consolidated Statements of Financial Condition (Unaudited) |
||||||||||||||
Quarter Ended | ||||||||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 09/30/2019 | ||||||||||
(In thousands) | ||||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ |
19,210 |
$ |
9,803 |
$ |
7,649 |
$ |
21,465 |
$ |
8,849 |
||||
Restricted cash |
|
7,821 |
|
6,735 |
|
4,483 |
|
6,087 |
|
3,152 |
||||
Total loans, net |
|
2,004,413 |
|
2,077,119 |
|
2,148,595 |
|
2,080,787 |
|
1,949,311 |
||||
Accrued interest receivables |
|
13,134 |
|
17,793 |
|
14,470 |
|
13,295 |
|
12,450 |
||||
Receivables due from servicers |
|
44,466 |
|
36,028 |
|
37,884 |
|
49,659 |
|
38,349 |
||||
Other receivables |
|
402 |
|
4,609 |
|
2,516 |
|
4,778 |
|
7,585 |
||||
Real estate owned, net |
|
14,653 |
|
15,648 |
|
16,164 |
|
13,068 |
|
15,806 |
||||
Property and equipment, net |
|
4,446 |
|
4,718 |
|
4,964 |
|
4,680 |
|
4,903 |
||||
Deferred tax asset |
|
1,832 |
|
5,556 |
|
10,111 |
|
8,280 |
|
4,127 |
||||
Other assets |
|
16,489 |
|
9,042 |
|
10,519 |
|
12,667 |
|
17,219 |
||||
Total Assets | $ |
2,126,866 |
$ |
2,187,051 |
$ |
2,257,354 |
$ |
2,214,766 |
$ |
2,061,751 |
||||
Liabilities and members' equity | ||||||||||||||
Accounts payable and accrued expenses | $ |
61,859 |
$ |
55,938 |
$ |
58,591 |
$ |
56,146 |
$ |
41,957 |
||||
Secured financing, net |
|
74,776 |
|
74,571 |
|
74,364 |
|
145,599 |
|
145,285 |
||||
Securitizations, net |
|
1,670,930 |
|
1,599,719 |
|
1,576,431 |
|
1,438,629 |
|
1,377,733 |
||||
Warehouse & repurchase facilities |
|
19,541 |
|
160,796 |
|
297,537 |
|
421,548 |
|
349,115 |
||||
Total Liabilities |
|
1,827,106 |
|
1,891,024 |
|
2,006,924 |
|
2,061,922 |
|
1,914,090 |
||||
Mezzanine Equity | ||||||||||||||
Series A Convertible preferred stock |
|
90,000 |
|
90,000 |
|
- |
|
- |
|
- |
||||
Stockholders' Equity | ||||||||||||||
Stockholders' equity |
|
209,760 |
|
206,027 |
|
250,430 |
|
152,844 |
|
147,661 |
||||
Total Liabilities and members' equity | $ |
2,126,866 |
$ |
2,187,051 |
$ |
2,257,354 |
$ |
2,214,766 |
$ |
2,061,751 |
||||
Book value per share | $ |
10.44 |
$ |
10.26 |
$ |
12.47 |
n.a. | n.a. | ||||||
Shares outstanding |
|
20,087 |
|
20,087 |
|
20,087 |
n.a. | n.a. |
Velocity Financial, Inc. Consolidated Statements of Income (Unaudited) |
||||||||||||||||
Quarter Ended | ||||||||||||||||
($ in thousands) | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 09/30/2019 | |||||||||||
Revenues | ||||||||||||||||
Interest income | $ |
41,374 |
$ |
39,755 |
|
$ |
44,637 |
$ |
44,124 |
$ |
40,379 |
|
||||
Interest expense - portfolio related |
|
22,347 |
|
21,189 |
|
|
22,848 |
|
22,689 |
|
21,827 |
|
||||
Net interest income - portfolio related |
|
19,027 |
|
18,566 |
|
|
21,789 |
|
21,435 |
|
18,552 |
|
||||
Interest expense - corporate debt |
|
1,913 |
|
1,894 |
|
|
6,342 |
|
4,070 |
|
3,842 |
|
||||
Net interest income |
|
17,114 |
|
16,672 |
|
|
15,447 |
|
17,365 |
|
14,710 |
|
||||
Provision for loan losses |
|
1,573 |
|
1,800 |
|
|
1,289 |
|
242 |
|
338 |
|
||||
Net interest income after provision for loan losses |
|
15,541 |
|
14,872 |
|
|
14,157 |
|
17,123 |
|
14,372 |
|
||||
Other operating income (expense) |
|
1,349 |
|
(1,339 |
) |
|
1,620 |
|
833 |
|
(212 |
) |
||||
Total net revenues |
|
16,890 |
|
13,533 |
|
|
15,777 |
|
17,956 |
|
14,160 |
|
||||
Operating expenses | ||||||||||||||||
Compensation and employee benefits |
|
5,692 |
|
5,863 |
|
|
5,041 |
|
3,992 |
|
3,712 |
|
||||
Rent and occupancy |
|
415 |
|
448 |
|
|
455 |
|
426 |
|
369 |
|
||||
Loan servicing |
|
2,168 |
|
1,754 |
|
|
2,239 |
|
1,939 |
|
1,957 |
|
||||
Professional fees |
|
1,051 |
|
588 |
|
|
1,184 |
|
469 |
|
398 |
|
||||
Real estate owned, net |
|
898 |
|
408 |
|
|
1,134 |
|
1,300 |
|
485 |
|
||||
Other operating expenses |
|
1,641 |
|
1,847 |
|
|
1,998 |
|
1,688 |
|
1,563 |
|
||||
Total operating expenses |
|
11,865 |
|
10,908 |
|
|
12,051 |
|
9,814 |
|
8,484 |
|
||||
Income before income taxes |
|
5,025 |
|
2,625 |
|
|
3,727 |
|
8,142 |
|
5,676 |
|
||||
Income tax expense |
|
1,544 |
|
484 |
|
|
1,148 |
|
2,960 |
|
1,796 |
|
||||
Net income | $ |
3,481 |
$ |
2,141 |
|
$ |
2,579 |
$ |
5,182 |
$ |
3,880 |
|
||||
Less deemed dividends on preferreds stock | $ |
48,955 |
|
|||||||||||||
Net loss allocated to common shareholders | $ |
(46,814 |
) |
|||||||||||||
Basic earnings (loss) per share | $ |
0.17 |
$ |
(2.33 |
) |
$ |
0.13 |
n.a. | n.a. | |||||||
Diluted earnings (loss) per common share | $ |
0.11 |
$ |
(2.33 |
) |
$ |
0.13 |
n.a. | n.a. | |||||||
Basic weighted average common shares outstanding |
|
20,087 |
|
20,087 |
|
|
20,087 |
n.a. | n.a. | |||||||
Diluted weighted average common shares outstanding |
|
32,435 |
|
20,087 |
|
|
20,087 |
n.a. | n.a. |
Velocity Financial, Inc. Net Interest Margin ‒ Portfolio Related and Total Company (Unaudited) |
|||||||||||||||||||||||||||
Quarter Ended September 30, 2020 |
Quarter Ended June 30, 2020 |
Quarter Ended September 30, 2019 |
|||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||||
Average | Income / | Yield / | Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||||||
($ in thousands) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | ||||||||||||||||||
Loan portfolio: | |||||||||||||||||||||||||||
Loans held for sale | $ |
- |
$ |
220,047 |
$ |
122,763 |
|||||||||||||||||||||
Loans held for investment |
|
2,016,414 |
|
1,875,260 |
|
1,703,377 |
|||||||||||||||||||||
Total loans | $ |
2,016,414 |
$ |
41,374 |
8.21 |
% |
$ |
2,095,307 |
$ |
39,755 |
7.59 |
% |
|
1,826,140 |
$ |
40,379 |
8.84 |
% |
|||||||||
Debt: | |||||||||||||||||||||||||||
Warehouse and repurchase facilities | $ |
22,306 |
|
703 |
12.61 |
% |
$ |
242,676 |
|
2,632 |
4.34 |
% |
|
246,532 |
|
3,527 |
5.72 |
% |
|||||||||
Securitizations |
|
1,742,669 |
|
21,645 |
4.97 |
% |
|
1,589,191 |
|
18,557 |
4.67 |
% |
|
1,401,930 |
|
18,301 |
5.22 |
% |
|||||||||
Total debt - portfolio related |
|
1,764,975 |
|
22,348 |
5.07 |
% |
|
1,831,867 |
|
21,189 |
4.63 |
% |
|
1,648,462 |
|
21,828 |
5.30 |
% |
|||||||||
Corporate debt |
|
78,000 |
|
1,913 |
9.81 |
% |
|
78,000 |
|
1,895 |
9.72 |
% |
|
136,882 |
|
3,842 |
11.23 |
% |
|||||||||
Total debt | $ |
1,842,975 |
$ |
24,261 |
5.27 |
% |
$ |
1,909,867 |
$ |
23,084 |
4.83 |
% |
|
1,785,344 |
|
25,670 |
5.75 |
% |
|||||||||
Net interest spread - portfolio related (1) | 3.14 |
% |
2.96 |
% |
3.55 |
% |
|||||||||||||||||||||
Net interest margin - portfolio related | 3.77 |
% |
3.54 |
% |
4.06 |
% |
|||||||||||||||||||||
Net interest spread - total company (2) | 2.94 |
% |
2.75 |
% |
3.09 |
% |
|||||||||||||||||||||
Net interest margin - total company | 3.39 |
% |
3.18 |
% |
3.22 |
% |
|||||||||||||||||||||
(1) Net interest spread - portfolio related is the difference between the rate earned on our loan portfolio and the interest rates paid on our portfolio related debt. | |||||||||||||||||||||||||||
(2) Net interest spread - total company is the difference between the yield on our loan portfolio and the interest rates paid on our total debt. |
Velocity Financial, Inc. Adjusted Financial Metric Reconciliation to GAAP Net Income (Unaudited) |
|||||
"CORE" EARNINGS PER SHARE | |||||
Quarter Ended | |||||
($ in thousands) | 9/30/2020 | 6/30/2020 | |||
Net Income | $ |
3,481 |
$ |
2,141 |
|
COVID-19 Impact |
|
1,267 |
|||
Workforce reduction costs |
|
432 |
|
- |
|
"Core" Earnings | $ |
3,913 |
$ |
3,408 |
|
Diluted weighted average common shares outstanding | $ |
32,435 |
$ |
20,087 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005775/en/
Investors and Media:
Chris Oltmann
(818) 532-3708