Commercial mortgage provider Velocity Financial Inc. best estimates on adjusted earning and reported record loan volume for the third consecutive quarter.
Adjusted net income in the first quarter was $12.4 million (36 cents a share), up from $10.1 million (29 cents) in the previous quarter. Zachs Consensus Estimate was 28 cents a share.
The Westlake Village company generated loan volume of $581 million for the quarter.
Chief Executive Chris Farrar said in a statement that the company’s first quarter performance was marked by record production volumes and strong financial results across Velocity.
“This quarter’s strong financial performance was driven by our investment loan portfolio of nearly $3 billion in UPB, which has grown at a compounded annual growth rate of 20% over the last four years from loan production sourced through our nationwide origination platform,” Farrar added.
Velocity’s total loan portfolio clocked in at $2.9 billion in unpaid principal balance (UPB) as of the end of March, an 11.2% increase from $2.6 billion in UPB as of the end of December. Payoff activity totaled nearly $140 million in UPB.
The company said that its business model has so far navigated increasing macroeconomic and geopolitical uncertainties.
“Going forward, we believe that Velocity’s opportunities for growth are robust,” Farrar said in a statement. “Our record production volume this quarter underscores the existence of significant investor demand for investor real estate loans, in addition to growing interest from mortgage brokers to offer commercial investor loan products to their clients.”
On Friday shares of Velocity closed down 2 cents, or a fraction of a percent, to $11.17 on the New York Stock Exchange.