Velocity Financial, Inc. (NYSE:VEL) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET

Company Participants

Chris Oltmann - Treasurer
Chris Farrar - President & CEO
Mark Szczepaniak - CFO

Conference Call Participants

Stephen Laws - Raymond James

Steve Delaney - Citizens JMP

Eric Hagen - BTIG

Operator

Good afternoon, and welcome to the Velocity Financial Q2 2024 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Chris Oltmann. Please go ahead.

Chris Oltmann

Thank you, Rachel. Hello, everyone, and thank you for joining us today for the discussion of Velocity's second quarter 2024 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 second quarter results and you can find this press release and accompanying presentation that we will refer to today during this call on our Investor Relations website at www.velfinance.com.

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.

And with that, I would like to turn the call over to Chris Farrar.

Chris Farrar

Thanks, Chris, and thank you all for joining our second quarter earnings call. After the close, we reported another great quarter as our business continues to perform well across all segments. Our net revenue increased 41% over the prior year's quarter, resulting in a 23% increase in core earnings. Our originations were healthy with a 63% increase in volume versus Q2 '23. And importantly, we maintained our margins and credit standards. Our portfolio is performing well and our special servicing team continues to do a great job of resolving delinquent assets favorably. Our charge-offs remain low and we realized over $2 million in net gain from our REO activity this quarter.