Velocity Financial, Inc. reported its financial results for the first quarter of 2026, showcasing a significant increase in both revenue and profitability compared to the same period in 2025. The company generated interest income of $153.1 million, up 28.9% from $118.7 million a year earlier. Net income attributable to Velocity Financial, Inc. was $22.4 million, reflecting a 18.5% increase from $18.9 million in the prior year. The earnings per share for the quarter were $0.57, compared to $0.55 in the same quarter of the previous year.
The company's total assets increased to $7.59 billion as of March 31, 2026, up from $7.38 billion at the end of 2025. This growth was primarily driven by an increase in loans held for investment, which rose to $7.11 billion, compared to $6.76 billion at the end of the previous fiscal year. The company also reported a decrease in its allowance for credit losses to $4.9 million from $5.0 million a year earlier, attributed to a reduction in the amortized cost loan portfolio subject to the Current Expected Credit Loss (CECL) methodology.
In terms of operational developments, Velocity Financial's loan portfolio consisted of 17,639 loans with an average balance of approximately $388,000. The weighted average loan-to-value ratio at origination was 64.9%. The company reported a total of $692.1 million in nonperforming loans, representing 10.1% of its held-for-investment loan portfolio, an increase from 8.5% at the end of 2025. The company continues to manage its portfolio actively, with a focus on minimizing credit losses through rigorous underwriting and asset management practices.
Strategically, Velocity Financial completed the issuance of $500 million in unsecured senior notes in January 2026, which were used to pay off a previous $215 million secured corporate debt. The company also executed two securitization transactions in early 2026, totaling $545.1 million in investor real estate loans. Looking ahead, Velocity Financial remains focused on leveraging its extensive network of mortgage brokers and maintaining a competitive edge in the investor real estate loan market, despite ongoing macroeconomic uncertainties. The company anticipates continued growth in its loan origination activities and aims to enhance its operational efficiencies to drive profitability.
About Velocity Financial, Inc.
Velocity Financial, Inc. is a vertically integrated real estate finance company specializing in originating, securitizing, and managing loans secured by residential and commercial properties. Its core focus is on investor loans for 1-4 unit rental homes and small commercial properties, serving a fragmented market with a network of mortgage brokers. The company leverages proprietary data, technology, and long-term securitizations to generate attractive risk-adjusted returns.
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