Velocity Financial, Inc. (VEL) Form 8-K — Aug 5, 2026

$VELForm 8-KItems 2.02, 9.01Filed Aug 5, 2026, 4:00 PM ET0001193125-26-334991Original filing

Velocity Financial reported second quarter 2026 net income of $25.2 million, down 3.2% from $26.0 million a year earlier, with diluted EPS of $0.64 versus $0.69, as a higher effective tax rate offset pretax income growth of 3.9% to $35.2 million. Core net income, a non-GAAP measure, rose 1.4% to $27.9 million, or $0.71 per diluted share. Top-line momentum was strong, with net revenue up 10.7% year over year to $95.0 million and the total loan portfolio expanding 19.2% to $7.0 billion in unpaid principal balance. Portfolio net interest margin nonetheless compressed to 3.66% from 3.82%, and total company NIM fell to 2.82% from 3.39%.

Key figures

Eps: 0.64
Revenue: $95.0 million (net revenue)
Net Income: $25.2 million attributable to Velocity Financial (down 3.2% YoY)
Revenue Yoy: 10.7%
Total Assets: 7963130000
Cash Position: $240.0 million total liquidity ($76.1 million unrestricted cash plus $163.9 million available borrowings)
Shares Outstanding: 39.3 million diluted shares at period end
Npl ratio: 9.6% of HFI loans vs 10.3% a year ago
Portfolio nim: 3.66% vs 3.82% in 2Q25
Pretax income: $35.2 million, up 3.9% YoY
Core net income: $27.9 million, up 1.4% YoY (non-GAAP)
Loan production: $672.6 million, down 7.3% from $725.4 million in 2Q25
Npl resolutions: $90.5 million UPB at a 107.7% total recovery rate
Total loans upb: $7.0 billion ($6,985.9 million), up 19.2% YoY
Core diluted eps: $0.71 vs $0.73 in 2Q25 (non-GAAP)
Total company nim: 2.82% vs 3.39% in 2Q25
Credit loss reserve: $5.1 million (0.28% CECL reserve rate)
Loan servicing expense: $15.7 million vs $8.2 million in 2Q25
Unsecured senior notes: $500 million average balance at a 9.97% rate (new in 2Q26)
Warehouse line capacity: $661.8 million
Restricted cash released: $50.3 million released in July 2026
Vcc 2026 2 securitization: $398.5 million of securities issued
Provision for credit losses: $0.98 million, down 38.7% YoY
Vcc 2026 mc2 securitization: $11.2 million net proceeds
Diluted book value per share: $18.43 vs $15.62 a year ago
Pre tax return on average equity: 20.0% vs 23.0% in 2Q25

Price after filing

1 day: 0.0%7 days: +1.1%30 days: +3.3%

Close on the filing date to close N calendar days later (from $17.82). Historical, not a forecast.

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