Velocity Financial, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $135.6 million for the three months ended June 30, 2025, a 38.6% increase from $97.8 million in the same period last year. For the first half of 2025, revenue totaled $254.3 million, up from $188.3 million in the prior year. The company's net income also saw a substantial rise, reaching $26.2 million for the second quarter, compared to $14.7 million in the same quarter of 2024, and $44.8 million for the first half of 2025, up from $32.0 million year-over-year.
The company’s total assets increased to $6.48 billion as of June 30, 2025, compared to $5.53 billion at the end of 2024. This growth was primarily driven by an increase in loans held for investment, which rose to $6.05 billion from $5.19 billion. The increase in loans was attributed to a higher volume of loan originations, which totaled $725.4 million in the second quarter, a significant increase from $640.4 million in the first quarter of 2025 and $425.6 million in the second quarter of 2024.
Velocity Financial has also made strategic moves to enhance its market position, including the acquisition of an 80% interest in Century Health & Housing Capital, LLC, which provides government-insured mortgage financing. The company continues to expand its geographic footprint, with loans secured by properties in 48 states and the District of Columbia. As of June 30, 2025, the company reported a total loan count of 14,854, with an average loan balance of approximately $394,000.
Operationally, the company reported a portfolio-related net interest margin of 3.82% for the second quarter, an increase from 3.54% in the same quarter last year. The provision for credit losses increased to $1.6 million for the second quarter, reflecting a proactive approach to managing credit risk amid market uncertainties. The company’s nonperforming loans represented 10.3% of total loans held for investment, slightly down from 10.8% in the previous quarter.
Looking ahead, Velocity Financial remains optimistic about its growth trajectory, citing a strong demand for investor real estate loans and a favorable market environment. The company plans to continue leveraging its extensive network of mortgage brokers and its established brand in the securitized debt market to drive future growth. However, it acknowledges potential challenges from macroeconomic factors, including interest rate fluctuations and geopolitical tensions, which could impact its operational performance.
About Velocity Financial, Inc.
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