Velocity reports earnings growth, strong loan demand
Velocity Financial saw its net income spike when it reported its first quarter financial earnings on May 6.
The Westlake Village-based real estate financial company recorded a net income of $3.4 million and core income of $6.72 million, or 10 cents and 20 cents per diluted share. In 2020, the company had a net income of $2.58 million and a core income of $5.8 million, or 13 cents and 29 cents per diluted share.
First quarter loan production volume was up 30%, with $233 million in unpaid principal balance, which the company said was driven by strong demand for investor loans. Velocity introduced a new Flex I/O short-term loan product, and it also resumed production of its ARV Pro short-term product, which it shelved during the pandemic.
“As we mark the one-year anniversary of the COVID-19 pandemic, I am increasingly optimistic about the durability of the emerging economic recovery we are seeing as businesses reopen and growth opportunities for Velocity increase,” said Chris Farrar, President and CEO, in a press release.
Velocity shares closed at $9.15 on May 6 and did not change after the earnings release. The stock is near it’s 52-week high of $9.55.