Velocity Financial, Inc. (NYSE:VEL) Q1 2020 Earnings Conference Call - Final Transcript

May 13, 2020 • 04:30 pm ET


Velocity Financial, Inc. (NYSE:VEL) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Velocity Financial First Quarter 2020 Earnings Conference Call. [Operator instructions] I would now like to turn the conference over to Chris Oltmann, Chief Accounting Officer. Please go ahead.

Christopher J. Oltmann

Thank you, Arli. Hello, everyone, and thank you for joining Velocity Financial, Inc. First Quarter 2020 earnings call. Joining remotely today are Christopher Farrar Velocity's President and Chief Executive Officer and Mark Szczepaniak, Velocity's Chief Financial Officer. This morning, we released our first quarter 2020 press release and an accompanying earnings presentation, which are available on our Investor Relations website. I'd like to remind everybody 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 discussion of some of the risks that could affect results, please see the Risk Factors section of our most recent 10-K report. Also note, at 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 will also refer to certain non-GAAP measures on this call. For reconciliations of these non-GAAP measures you should refer to the press release and earnings presentation on our Investor Relations website. Finally, today's call is being recorded and will be available on the company's website later today.

I will now turn the call over to Chris for opening remarks.

Christopher D. Farrar

Thanks, Chris, appreciate the intro and thank you all for joining the call. Certainly hope that you and your families are all doing well. Before we go through some of the quarterly results, I wanted to outline our strategy for managing the business over the next few quarters, explain how we're dealing with the current environment and how we're positioning the company for a post COVID environment. Our plan is guided by three main objectives: One, protect our employees and our shareholders, two, help our small business owners and investors manage through the crisis, three, carefully manage capital and liquidity to ensure our long-term success.

In terms of the first call, we're still working remotely and will slowly return to our physical locations when everyone agrees it's safe for our team members to do so. For our shareholders, we are laser focused on preserving book value by managing our portfolio and funding sources. We're very proud of the fact that we have not sold any assets at a discount or recognize any material impairments to book value. We think this speaks to the strength of our business model and our asset quality. Secondly, our special servicing team has done a great job of quickly rolling out a forbearance program for customers that are impacted by the epidemic. We're working very closely with these borrowers to give them the best chance to continue to own and utilize their real estate, although we're not obligated to do this, we think it's the right thing to do both morally and economically.

Turning to the portfolio and how we manage going