Velocity Financial Inc. reported its first quarter 2025 financial results, highlighting a net income of $18.9 million, which represents a 9.5% increase from $17.3 million in the first quarter of 2024. The company also achieved a diluted EPS of $0.51, up from $0.49 per share in the same period of the previous year. Core net income rose to $20.3 million, up 11.0% from $18.2 million in 1Q24, with core diluted EPS increasing to $0.55 from $0.51 per share in the previous year. Velocity Financial reached a record loan production of $640.4 million in unpaid principal balance $(UPB)$, marking a 13.7% increase from the fourth quarter of 2024 and a significant 69.1% rise compared to the first quarter of 2024. Nonperforming loans as a percentage of held-for-investment loans remained relatively stable at 10.8%, compared to 10.7% at the end of 2024 and 10.1% as of March 31, 2024. Resolutions of nonperforming loans and real estate owned totaled $76.4 million in UPB, with realized gains of $1.9 million or 102.4% of UPB resolved. The company noted continued strong financing demand in both the traditional commercial and 1-4 family residential rental property markets, attributing this to investors' ongoing interest in smaller commercial properties. Velocity Financial plans to leverage its core lending expertise to explore expansion opportunities into other lending markets.