Velocity picks up speed with revenue and income growth
Velocity Financial, a real estate finance company based in Westlake Village, reported increases in both revenue and net income for the third quarter, compared to a year earlier.
Velocity’s net income grew to $10 million from $8 million, an increase of 24.4%, while its diluted earnings per share grew to 29 cents from 23 cents, according to results released Nov. 3. Total net revenue for the most recent quarter was $26.8 million, up from $22.2 million a year earlier.
“Velocity delivered strong earnings in the third quarter, over 30% year-over-year production growth, further improvement in our loan portfolio’s performance and continued book value growth,” Velocity CEO Chris Farrar said in a news release.
Velocity makes loans to real estate investors for small commercial and multi-family properties. Loan production volume hit $457.3 million in unpaid principal balance, a total increase of 34.2% compared to the third quarter of last year. Additionally, total loan portfolio unpaid principal balance reached $3.4 billion by the end of the quarter on Sept. 30, up 51.1% from a year earlier.
“In the third quarter, loan demand remained robust despite higher interest rates, underscoring the strong desire of our borrowers to own tangible assets. While market volatility and uncertainty have increased, we have a solid balance sheet and strong liquidity that will enable us to navigate this period and position us for future success,” Farrar said.