Velocity Financial, Inc. (NYSE:VEL) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET

Company Participants

Chris Oltmann - Treasurer and Head IR

Chris Farrar - President and Chief Executive Officer

Mark Szczepaniak - Chief Financial Officer

Conference Call Participants

Stephen Laws - Raymond James

Steve Delaney - JMP Securities

Arren Cyganovich - Citigroup

Operator

Good afternoon, everyone, and welcome to the Velocity Financial, Incorporated Q4 2022 Conference Call. [Operator Instructions] For your information, today's conference call is being recorded.

And at this time, I’d like to turn the floor over to Chris Oltmann, Treasurer and Head of Investor Relations. Please go ahead.

Chris Oltmann

Thanks, Jamie. Hello, everyone, and thank you for joining us today for the discussion of Velocity's fourth quarter and full year 2022 results. Joining me today are Chris Farrar, Velocity’s President and Chief Executive Officer; and Mark Szczepaniak, Velocity’s Chief Financial Officer.

Earlier this afternoon, we released our fourth quarter and full year 2022 results and our press release and the accompanying presentation are available on our Investor Relations website.

I’d like to remind everyone that today’s call may include forward-looking statements, which are uncertain and outside of the company’s control and actual results may differ materially. For a discussion of some of the risks and other factors that could affect results, please see the risk factors and other cautionary statements made in our communications with shareholders, including the risk factors disclosed in our filings with the Securities and Exchange Commission.

Please also note that the content of this conference call contains time-sensitive information that is accurate only as of today, and we do not undertake any duty to update forward-looking statements. We may also refer to certain non-GAAP measures on this call. For reconciliations of these non-GAAP measures, you should refer to the earnings materials on our Investor Relations website. And finally, today’s call is being recorded and will be available on the company’s website later today.

With that, I will now turn the call over to Chris Farrar.

Chris Farrar

Thanks, Chris, I would like to welcome everyone to our fourth quarter earnings call. Despite continued headwinds from rapidly rising interest rates, we reported another profitable quarter and our most profitable year in the history of our company. Our loan portfolio increased by 36% to a record $3.5 billion. We also issued a new high mark of six securitizations throughout the year to finance our growth. Additionally, we grew annual core net income by over 26% or just under $9 million. Very proud to deliver these excellent results for our shareholders, especially considering the challenges we faced. In terms of our portfolio our solid credit discipline continued to pay off, as we had zero charge offs in the fourth quarter and we continue to profitably resolve delinquent assets.