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Investor 1-4 Multi - Family Mixed - Use Commercial velocity Financial , Inc. 2Q26 Results Presentation August 5 , 2026
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Confidential 2 Forward-looking statements Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to anticipated results, expectations, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “goal,” ”position,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions, and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions, and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes, except as required by applicable law.Factors that could cause our results to differ materially include, but are not limited to, (1) changes in federal government fiscal and monetary policies, (2) general economic and real estate market conditions, including the risk of recession, (3) regulatory and/or legislative changes, (4) our customers’ continued interest in loans and doing business with us, (5) market conditions and investor interest in our future securitizations, and (6) geopolitical conflicts. Additional information relating to these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements can be found in other cautionary statements we make in our current and periodic filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.velfinance.com.
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Confidential 3 2Q26 Highlights Production & Loan Portfolio Earnings Financing & Capital ▪ Net income of $25.2 million, a 3.2% decrease from $26.0 million for 2Q25. Diluted EPS of $0.64, a decrease of $0.05 from $0.69 per share for 2Q25. ▪ Core net income(1) of $27.9 million, an increase of 1.4% from $27.5 million for 2Q25. Core diluted EPS(1) of $0.71, a decrease of $0.02 from $0.73 per share for 2Q25. ▪ Portfolio NIM(2) for 2Q26 was 3.66%, a decrease of 16 bps from 3.82% for 2Q25 ▪ Diluted book value per share of $18.43 as of June 30, 2026, up from $15.62 as of June 30, 2025 ▪ Loan production for 2Q26 totaled $672.6 million, down 7.3% from $725.4 million for 2Q25 ▪ Velocity’s total loan portfolio was $7.0 billion in UPB as of June 30, 2026, an increase of 19.2% from $5.9 billion in UPB as of June 30, 2025 ▪ Nonperforming loans (NPL) as a % of HFI(3) loans were 9.6% as of June 30, 2026, down from 10.3% as of June 30, 2025 ▪ 2Q26 NPL realized gains of $2.5 million, or 102.7% of UPB, and total recovered revenue of $6.9 million, or 107.7%, of UPB resolved, including accrued interest ▪ Completed the VCC 2026-2 securitization totaling $398.5 million of securities issued and weighted average rate of 5.85% ▪ Completed the VCC 2026-MC2 securitization generating net proceeds of $11.2 million ▪ Liquidity of $240.0 million, consisting of $76.1 million in unrestricted cash and cash equivalents and $163.9 million in available borrowings from unpledged loans ▪ Total available warehouse line capacity of $661.8 million (1) “Core net income” and “Core diluted EPS” are non-GAAP financial measures. See “Adjusted Financial Metric to GAAP Net Income” in the Appendix (2) Net Interest Margin (3) Held for investment
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Confidential 4 $350.5 $374.6 $322.1 $381.3 $337.6 $284.9 $302.3 $281.1 $232.6 $232.3 $49.1 $36.1 $29.6 $23.3 $16.4 $40.9 $24.1 $1.8 $2.2 $86.3 $725.4 $737.1 $634.6 $639.4 $672.6 2Q25 3Q25 4Q25 1Q26 2Q26 Traditional Commercial Investor 1-4 Rental Short-term Loan Products Government Insured Multifamily (CHHC) Loan Production Volume(2) Loan Production ▪ Loan production in 2Q26 totaled $672.6 million in UPB, up 5.2% from 1Q26 and down 7.3% from $725.4 million for 2Q25 – Loan units produced were flat Q/Q and grew 3.2% Y/Y . Average loan size decreased to $348.6 thousand for 2Q26 from $378.8 thousand for 1Q26 and $419.9 thousand for 2Q25. – Government Insured Multifamily (HFS) production increased 110.8% Y/Y to $86.3 million in UPB ▪ The WAC(1) on 2Q26 HFI loan production remained disciplined at 10.0% ($ in millions) 2Q26 Originations Rise Q/Q On Strong Government Insured Volume Units Average loan balance(4) (1) Weighted Average Coupon on HFI production (2) Including advances. (3) Loan to Value (4) $ in thousands WAC(1) LTV(3) HFI Production Metrics HFI Production 684.5$ 713.0$ 632.8$ 637.1$ 586.3$ 10.5% 10.5% 10.1% 10.1% 10.0% 62.7% 62.8% 62.9% 62.5% 61.1% 1,630 1,778 1,723 1,682 1,682 419.9$ 401.0$ 368.3$ 378.8$ 348.6$
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Confidential 5 Loan Portfolio by Property Type ▪ The total loan portfolio was $7.0 billion in UPB as of June 30, 2026, an increase of 19.2% from $5.9 billion as of June 30, 2025 – Loan prepayments totaled $250.2 million in UPB, an increase of 6.5% from $235.0 million for 1Q26, and an increase of 12.0% from $223.4 million for 2Q25 ▪ Portfolio WAC(1) was 9.74% as of June 30, 2026, a 4 bps increase from 9.70% as of June 30, 2025 ▪ The UPB of fair value option (FVO) loans was $5.2 billion, or 74.1% of total loans, as of June 30, 2026, an increase from $3.6 billion in UPB, or 62.3% as of June 30, 2025 Loan Portfolio (UPB in millions) (1) Weighted Average Coupon on the total loan portfolio. (2) $ in thousands. Portfolio Reached $7 Billion Driven By Traditional Commercial Properties Loan to Value Loan Count WAC Average Loan Balance FVO% (2) $2,951.7 $3,204.0 $3,184.4 $632.4 $744.2 $763.4$422.6 $482.2 $490.4$569.1 $739.4 $804.0$392.7 $494.0 $525.6 $459.0 $606.9 $658.2 $432.1 $565.9 $560.0 $5,859.7 $6,836.5 $6,985.9 2Q25 1Q26 2Q26 Investor 1-4 Rental Mixed Use Multifamily Retail Warehouse Office All Other 65.8% 64.9% 64.6% 14,854 17,639 18,219 9.7% 9.7% 9.7% $394.5 $387.6 $383.4 62.3% 71.7% 74.1%
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Confidential 6 Portfolio Yield and Cost of Funds Portfolio Net Interest Income & NIM(1) Portfolio Related ▪ Portfolio NIM(1) for 2Q26 was 3.66%, a decrease of 16 bps from 3.82% for 2Q25 ▪ Portfolio Yield: Decreased 36 bps from 2Q25. Y/Y decrease primarily from higher receipt of nonperforming loan interest in 2Q25 ▪ Portfolio Cost of Funds: Decreased 15 bps from 2Q25 primarily due to lower average cost of securitized debt Net Interest Margin (1) Net Interest Margin related to the loan portfolio only; excludes corporate debt. Portfolio Related ($ in millions) NIM Remains Above 3.5% Target $53.7 $59.1 $63.4 3.82% 3.56% 3.66% 2Q25 1Q26 2Q26 Net Interest Income ($ in '000) - portfolio related Net interest margin (portfolio) 9.65% 9.23% 9.29% 6.24% 6.09% 6.09% 2Q25 1Q26 2Q26 Portfolio Yield Portfolio W.A. Cost of funds
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Confidential 7 Nonperforming Loans(1) ▪ Total nonperforming loans (NPL) as a percentage of total HFI loans UPB was 9.6% as of June 30, 2026, a decrease from 10.3% as of June 30, 2025 – Driven by the sale of nonperforming loans into Velocity’s 2026-MC2 securitization ▪ Total NPL allowance was $29.4 million as of June 30, 2026, compared to $60.0 million as June 30, 2025 – Unrealized valuation adjustments on FVO NPL loans plus the CECL allowance reserve on amortized cost loans represent 42 bps of loan loss protection as of June 30, 2026 $ UPB in millions HFI Portfolio Performance (1) For additional detail, please see page 18 in the Appendix of this presentation. NPLs as % of HFI Loans Decrease; NPL Allowance Reflects Increased Market Value Loans Held for Investment $601.8 $673.3 10.3% 9.6% 6/30/2025 6/30/2026 Total nonaccrual loans % nonaccrual to total HFI loans Quarter Ended ($ in millions) 6/30/2025 6/30/2026 $ Variance % Variance Loans Held For Investment Unpaid principal balance 5,859.7$ 6,985.9$ 1,126.2 19.2% Total NPL Allowance Unrealized valuation adjustments on nonperforming FVO loans (55.2) (24.3) 30.9 (56.0)% Allowance for credit losses (4.9) (5.1) (0.2) 4.5% Total allowance for nonperforming loan losses (60.0)$ (29.4)$ 30.7 (51.1)% Total allowance for nonperforming loan losses to total HFI 1.02% 0.42% n.a. (59.0)%
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Confidential 8 ▪ The amortized cost loan credit loss (CECL) reserve balance was $5.1 million as of June 30, 2026, compared to $4.9 million as of June 30, 2025 – The CECL reserve rate (CECL Reserve as % of Amortized Cost HFI loans) was 0.28%, up from 0.22% as of June 30, 2025 ▪ Charge-offs for 2Q26 totaled $0.7 million, compared to $1.7 million for 2Q25. 2Q26 charge-offs were well below the recent five-quarter average of $1.3 million. CECL Reserve, Charge-Offs and REO Credit Loss Reserve & Gain (Loss) on REO (1) Annualized CECL Reserve Increased From Modestly Higher Nonaccruals ($ in thousands) 6/30/2025 6/30/2026 $ Variance % Variance Allowance for credit losses: Beginning balance 5,017 4,860 157 (3.1)% Provision for credit losses 1,598 980 618 (38.7)% Charge-offs (1,733) (738) (995) (57.4)% Ending balance 4,882 5,102 (220) (3.1)%- Total UPB subject to CECL 2,210,304 1,810,757 399,547 (18.1)% Nonperforming loans UPB subject to CECL 283,227 178,986 104,241 (36.8)% Nonperforming loans UPB subject to CECL / Total UPB subject to CECL 12.8% 9.9% 2.9% (22.9)% Allowance for credit losses / Total UPB subject to CECL 0.22% 0.28% -0.1% 27.6% Charge-offs / Total UPB subject to CECL(1) 0.31% 0.16% 0.2% (48.0)% Quarter Ended
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Confidential 9 ▪ The REO portfolio totaled $142.1 million as of June 30, 2026, compared to $93.4 million as of June 30, 2025 – Comprised 2.0% of HFI loans as of June 30, 2026, compared to 1.6% as of June 30, 2025 ▪ Total gain on new REO for 2Q26 was $5.4 million, compared to a gain of $7.1 million for 2Q25, driven by lower valuation gain on amortized cost loans transferred to REO ▪ Total loss on existing REO for 2Q26 was $(3.0) million, compared to a loss of $(1.4) million for 2Q25, driven by market valuation adjustments Real Estate Owned (REO) Activity Gain (Loss) on REO (1) Total (loss) / gain on REO excludes charge-offs REO Portfolio Realizes Net Gains REO Portfolio Balance $ in millions $93.4 $142.1 1.6% 2.0% 2Q25 2Q26 ($ in thousands) 6/30/2025 6/30/2026 $ Variance % Variance Gain / (Loss) on new REO: Gain on transfer to REO - amortized cost loans 2,169 1,025 (1,144) (52.7)% Valuation gain on transfer to REO - fair value loans 4,884 4,364 (520) (10.6)% Total gain on new REO (1) 7,053 5,389 (1,664) (23.6)% Gain / (Loss) on existing REO: REO valuations (loss), net (2,150) (3,635) (1,485) 69.1% Gain (loss) on sale of REO 790 633 (157) (19.9)% Total (loss) on existing REO (1) (1,360) (3,002) (1,642) 120.7% Quarter Ended
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Confidential 10 RESOLUTION ACTIVITIES LONG-TERM NONPERFORMING LOANS RESOLUTION ACTIVITY ($ in thousands) UPB $ Gains Net Accrued Interest (1) Total Recovered UPB $ Gains Net Accrued Interest (1) Total Recovered Paid in full 32,220$ 2,078$ 2,766$ 4,844$ 29,674$ 1,736$ 1,972$ 3,708$ Paid current 45,396 390 2,233 2,623 45,298 510 2,106 2,616 Total resolutions 77,616$ 2,468$ 4,999$ 7,467$ 74,972$ 2,246$ 4,078$ 6,324$ Recovery rate on resolved nonperforming loans 103.2% 109.6% 103.0% 108.4% SHORT-TERM AND FORBEARANCE NONPERFORMING LOANS RESOLUTION ACTIVITY ($ in thousands) UPB $ Gains Net Accrued Interest (1) Total Recovered UPB $ Gains Net Accrued Interest (1) Total Recovered Paid in full 8,963$ 371$ 732$ 1,103$ 8,583$ 152$ 125$ 277$ Paid current 3,770 4 173 177 6,921 57 268 325 Total resolutions 12,733$ 375$ 905$ 1,280$ 15,504$ 209$ 393$ 602$ Recovery rate on resolved nonperforming loans 102.9% 110.1% 101.3% 103.9% Grand total resolutions 90,349$ 2,843$ 5,904$ 8,747$ 90,476$ 2,455$ 4,471$ 6,926$ Recovery rate on resolved nonperforming loans 103.1% 109.7% 102.7% 107.7% SECOND QUARTER 2026 Net Gain Total $ Recovered Net Gain Total $ Recovered SECOND QUARTER 2025 Net Gain Total $ Recovered Net Gain Total $ Recovered Non-Performing Loan Resolution Activity NPL Resolution Activity ▪ NPL resolutions for 2Q26 totaled $90.5 million in UPB resolved, realizing gains from default interest and prepayment penalties of $2.5 million, compared to $90.3 million in UPB resolved and gains of $2.8 million for 2Q25 ▪ Total recoveries on NPLs including recovered past due interest and gains from default interest and prepayment penalties for 2Q26 were $6.9 million, or 107.7% of principal resolved compared to $8.7 million, or 109.7% for 2Q25 2Q26 NPL Resolutions and Recoveries Remained Strong (1) Net Accrued Interest includes contractual accrued interest recovered upon resolution of the loan, net of servicing advances written off. (2) Annualized $ in thousands
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Confidential 11 $5,092.5 $5,532.0 $5,942.3 $6,065.2 $6,180.7 $331.1 $332.4 $308.5 $98.0 $311.7 $285.8 $286.2 $286.7 $558.7 $559.6 $5,709.3 $6,150.6 $6,537.5 $6,722.0 $7,051.9 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Securitizations Warehouse Lines Corporate Debt Durable Funding and Liquidity Framework Two Securitizations in 2Q26(1) Outstanding Debt Balances(2) ($ in Millions) (1) Through June 30, 2026. (2) Debt balances are net of issuance costs and discounts as reported in the consolidated balance sheet. (3) Represents the remaining balance of securitization outstanding net of issuance costs, discounts and fair value marks as of period end. (4) As of June 30, 2026, four of six warehouse lines had non-mark-to-market features and staggered maturities. Non-Recourse Debt Recourse Debt (3) ▪ Completed the VCC 2026-2 totaling $398.5 million of securities issued and weighted average rate of 5.85% ▪ Completed the VCC 2026- MC2 securitization. This securitization was comprised of nonperforming loans sold into a Trust, generating $11.2 million in net proceeds. ▪ Recourse debt to equity of 1.2X, and increase from 1.0X as of June 30, 2025, driven by $500 million of unsecured debt issued in 1Q26 and higher warehouse debt utilization ▪ Available warehouse line capacity of $661.8 million as of June 30, 2026 (4) (5) Debt / Equity 9.5X 9.7X 9.7X 9.6X 9.7X Recourse Debt / Equity 1.0X 1.0X 1.0X 1.0X 1.2X Securitzations Issued 4 2 2 2 2 Max. Warehouse Line Capacity $810 $935 $935 $935 $975
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Confidential 12 ▪ NPA levels to remain at manageable levels, with possibility of opportunistic sales ▪ NPA resolutions trends (UPB volume & gains) expected to continue ▪ Market for small balance investor properties poised for continued growth ▪ Rental demand remains strong for most property types Outlook for Velocity’s Key Business Drivers MARKET CREDIT CAPITAL ▪ Next long-term loan securitization targeted for August 2026 (completed issuance of the VCC 2026-3 in July) ▪ Securitization market remains constructive with strong investor demand ▪ Bid for NPL whole loans also seeing growth in investor demand Small Balance Commercial Market Expected to Grow ▪ NIM target remains ~ 3.5% ▪ Recent originations remain supportive of NIM target ▪ Pace of portfolio growth expected to increase in 2H26 EARNINGS
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Appendix
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Confidential 14 Velocity Financial, Inc. Balance Sheet 6/30/2026 3/31/2026 12/31/2025 Unaudited Unaudited Audited (In thousands) Assets Cash and cash equivalents $ 76,115 $ 87,054 $ 92,103 Restricted cash 169,088 24,996 157,134 Loans held for investment, at fair value 5,460,522 5,154,508 4,729,869 Loans held for investment, at amortized cost 1,823,039 1,951,030 2,028,262 Total loans, net 7,283,561 7,105,538 6,758,131 Retained securities, at fair value 29,924 - - Accrued interest receivables 53,107 51,259 49,678 Receivables due from servicers 152,182 142,354 150,902 Other receivables 6,006 2,690 1,897 Real estate owned, net 142,085 131,849 118,289 Property and equipment, net 1,291 1,324 1,415 Deferred tax asset, net 19,852 18,462 22,709 Mortgage servicing rights, at fair value 14,307 12,645 12,963 Derivative assets 118 464 66 Goodwill 6,775 6,775 6,775 Other assets 8,719 6,033 9,451 Total Assets $ 7,963,130 $ 7,591,443 $ 7,381,513 Liabilities and members' equity Accounts payable and accrued expenses $ 186,020 $ 173,076 $ 168,314 Secured financing, net 73,427 73,274 286,679 Unsecured senior notes, net 486,170 485,445 - Securitized debt, at amortized cost 1,570,782 1,638,995 1,705,589 Securitized debt, at fair value 4,609,891 4,426,240 4,236,737 Warehouse & repurchase facilities, net 311,676 98,009 308,506 Total Liabilities 7,237,966 6,895,039 6,705,825 Stockholders' Equity Stockholders' equity 721,537 693,348 672,535 Noncontrolling interest in subsidiary 3,627 3,056 3,153 Total equity 725,164 696,404 675,688 Total Liabilities and members' equity $ 7,963,130 $ 7,591,443 $ 7,381,513 Diluted book value per share 18.43$ 17.75$ 17.19$ Diluted shares outstanding 39,346 39,245 39,297 Quarter Ended
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Confidential 15 Velocity Financial, Inc. Income Statements ($ in thousands) 6/30/2026 3/31/2026 6/30/2025 Unaudited Unaudited Unaudited Revenues Interest income $ 160,986 $ 153,080 $ 135,567 Interest expense - portfolio related 97,627 94,027 81,838 Net interest income - portfolio related 63,359 59,053 53,729 Interest expense - corporate debt 14,469 15,133 6,143 Net interest income 48,890 43,920 47,586 Provision for credit losses 980 1,661 1,598 Net interest income after provision for credit losses 47,910 42,259 45,988 Other operating income Gain on disposition of loans 3,954 2,896 6,286 Unrealized gain on fair value loans 24,483 1,039 29,906 Unrealized gain (loss) on fair value securitized debt 2,297 26,254 (7,584) Unrealized gain/(loss) on mortgage servicing rights 1,126 (337) 309 Origination fee income 12,154 7,970 8,936 Interest income on cash balance 1,334 1,405 1,505 Other income 1,730 3,730 489 Total other operating income 47,078 42,957 39,847 Net revenue 94,988 85,216 85,834 Operating expenses Compensation and employee benefits 25,514 23,520 22,605 Origination expenses 1,405 1,163 1,193 Securitizations expenses 4,669 5,285 11,521 Rent and occupancy 352 340 298 Loan servicing 15,685 8,563 8,205 Professional fees 2,173 5,781 1,992 Real estate owned, net 6,723 6,862 3,298 Other operating expenses 3,232 2,825 2,801 Total operating expenses 59,753 54,339 51,913 Income before income taxes 35,235 30,877 33,922 Income tax expense 9,501 8,578 7,752 Net income 25,734 22,299 26,170 Net income (loss) attributable to noncontrolling interest 571 (64) 173 Net income attributable to Velocity Financial, Inc. 25,163 22,363 25,997 Less undistributed earnings attributable to unvested restricted stock awards 341 312 286 Net earnings attributable to common shareholders $ 24,822 $ 22,051 $ 25,711 Basic earnings (loss) per share 0.64$ 0.57$ 0.69$ Diluted earnings (loss) per common share 0.64$ 0.57$ 0.69$ Basic weighted average common shares outstanding 38,730 38,626 37,194 Diluted weighted average common shares outstanding 39,304 39,174 37,790 Quarter Ended
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Confidential 16 $17.75 $ 18.43 $20.59 $ 0.71 $ 2.16 Diluted book value at 3/31/26 Non-Core Items Non-Earnings Activity Core Earnings Diluted book value at 6/30/26 Adjustment Adjusted Book Value at 6/30/26 Book Value and Adjusted Book Value Per Share(2) ▪ Core net income totaled $27.9 million for 2Q26, compared to $26.5 million for 1Q26 – 2Q26 core pre-tax ROE of 21.8% ▪ Diluted book value per share as of June 30, 2026, was $18.43(4), a 3.8% increase from $17.75(3) as of March 31, 2026, and a 18.0% increase from $15.62 as of June 30, 2025 ▪ Adjusted diluted book value per share as of June 30, 2026, was $20.59(5) and reflects the net incremental estimated pretax fair value of loans carried at amortized cost and related securitized debt over diluted book value Core Net Income, Diluted Book Value & Adjusted Book Value Per Share Core Net Income(1) Non-core items $2,690 (1) Core net income” is a non-GAAP financial measure which excludes incentive compensation expenses and costs related to the Compan y’s employee stock purchase program (ESPP) from GAAP net income. (2) Diluted book value per share is the ratio of total GAAP equity divided by diluted shares at period end. Total equity includes non-controlling interest of $3.06 million as of March 31, 2026, and $3.63 million as of June 30, 2026. (3) Based on 39,245,240 diluted shares as of March 31, 2026 (4) Based on 39,346,340 diluted shares as of June 30, 2026 (5) Fair value adjustment is derived using the pretax net incremental estimated fair value of the Company’s loans and securitizat ions carried at amortized cost divided by the diluted share count as of June 30, 2026. For additional information, please see Fair Value Disclosures in the Company’s 10 -Q for the period ended June 30, 2026. (3) (4) Core Net Income $27,853 GAAP Net Income $25,163 $(0.07) ($ in thousands) (5) $0.04
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Confidential 17 Reinvested Earnings Compounds Returns ▪ Our proprietary operating platform and expertise delivers strong results and durable long-term growth for our shareholders ▪ Earnings growth re-invested at high marginal ROE compounds book value and ROE ▪ Significant unrecognized value opportunity for investors resulting from Velocity’s market positioning and organic earnings growth potential (1) CAGR = Compounded Annual Growth Rate (2) Stockholders’ equity includes noncontrolling interest in subsidiary as of 12/31/2024, 12/31/2025 and LTM 6/30/2026 Core Diluted Earnings Per Share CAGR = 30.0% Core Return on Average Stockholders’ Equity ROAE CAGR = 11.3% (1) (1) Stockholders’ Equity CAGR = 23.6% (1) (2) $474.9 $599.6 $652.3 15.3% 18.5% 18.0% 12/31/2024 12/31/2025 LTM 6/30/2026 $2.03 $2.91 $3.01 12/31/2024 12/31/2025 LTM 6/30/2026
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Confidential 18 HFI Portfolio Delinquency Trends ($ in thousands) $ % $ % $ % $ % $ % Performing/Accruing: Current 4,878,317$ 83.3% 5,202,057$ 82.9% 5,432,204$ 83.7% 5,648,159$ 82.6% 5,772,386$ 82.6% 30-59 days past due 263,390 4.4% 322,091 5.1% 296,100 4.6% 293,479 4.3% 374,269 5.4% 60-89 days past due 116,189 2.0% 134,923 2.2% 208,494 3.2% 202,833 3.0% 165,901 2.4% Total performing loans HFI 5,257,896 89.7% 5,659,071 90.2% 5,936,798 91.5% 6,144,471 89.9% 6,312,556 90.4% Nonperforming/Nonaccrual: <90 days past due 29,136 0.5% 33,560 0.5% 41,296 0.6% 57,685 0.8% 53,708 0.8% 90+ days past due 50,269 0.9% 54,812 0.9% 71,985 1.1% 108,963 1.6% 113,895 1.6% Bankruptcy 79,327 1.4% 67,522 1.1% 57,919 0.9% 50,669 0.7% 83,447 1.2% In foreclosure 443,025 7.5% 458,332 7.3% 383,340 5.9% 474,756 6.9% 422,285 6.0% Total nonperforming loans HFI 601,757 10.3% 614,226 9.8% 554,540 8.5% 692,073 10.1% 673,335 9.6% Total loans held for investment 5,859,653$ 100% 6,273,298$ 100% 6,491,338$ 100% 6,836,544$ 100% 6,985,891$ 100% June 30, 2026March 31, 2026December 31, 2025September 30, 2025June 30, 2025
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Confidential 19 $6,836.5 $6,985.9 Loan Portfolio at 3/31/26 Principal Payments Loan Sales Transfer to REO Loan Production Loan Portfolio at 6/30/26 Loan Portfolio Rollforward Total Loan Portfolio UPB Rollforward (UPB in millions) $(272.8) $(222.8) $(27.6) $672.6
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Confidential 20 HFI Loan Portfolio Portfolio by Property Type (100% = $6.99 billion UPB)(1) (1) As of June 30, 2026 Portfolio by State California 19.7% New York 13.1% Florida 11.5% New Jersey 7.9% Texas 6.3% Other 41.5% Investor 1-4 Rental 45.6% Retail 11.5% Mixed use 11.0% Office 9.4% Warehouse 7.5% Multifamily 7.0%Other 8.0%
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Confidential 21 Adjusted Financial Metric Reconciliation: Adjusted Financial Metric Reconciliation to GAAP Net Income x`Core Pretax Income ($ in thousands) 6/30/2026 3/31/2026 6/30/2025 Income before income taxes 35,235$ 30,877$ 33,922$ Equity awards & ESPP expenses 3,079 2,695 2,028 Potential M&A diligence 672 4,100 - Deal cost write-off secured financing - 1,340 - IRS Employee Retention - (2,392) - Net (loss) income attributable to noncontrolling interest 571 (64) 173 Core income before income tax 38,415$ 36,684$ 35,777$ Average Common Equity 704,138$ 682,417$ 588,814$ Core pretax return on equity 21.8% 21.5% 24.3% Core Net Income ($ in thousands, except per share amounts) ($ in thousands) 6/30/2026 3/31/2026 6/30/2025 Net Income 25,163$ 22,363$ 25,997$ Equity award & ESPP costs 2,208 1,933 1,473 Potential M&A diligence 482 2,941 - Deal cost write-off secured financing - 961 - IRS Employee Retention - (1,716) - Core Net Income 27,853$ 26,482$ 27,470$ Diluted weighted average common shares outstanding 39,304 39,174 37,790 Core diluted earnings per share 0.71$ 0.68$ 0.73$ Quarter Ended Quarter Ended