Velocity Financial Inc (VEL) 2024 Q2 法說會逐字稿

Good afternoon. And welcome to the Velocity Financial Q2 2024 conference call. (Operator Instructions) Please note, this event is being recorded.

午安.歡迎參加 Velocity Financial 2024 年第二季電話會議。（操作員說明）請注意，正在記錄此事件。

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

現在我想將會議交給克里斯·奧特曼先生。請繼續。

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.

謝謝你，雷切爾。大家好。感謝您今天加入我們討論 Velocity 2024 年第二季業績。今天和我一起的還有 Velocity 總裁兼執行長 Chris Farrar 和 Velocity 財務長 Mark Szczepaniak。今天下午早些時候，我們發布了第二季度業績，您可以在我們的投資者關係網站 www.velfinance.com 上找到我們今天將在本次電話會議期間參考的新聞稿和隨附演示文稿。

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.

我想提醒大家，今天的電話會議可能包含前瞻性陳述，這些陳述具有不確定性，超出了公司的控制範圍，實際結果可能會有重大差異。有關可能影響結果的一些風險和其他因素的討論，請參閱我們在與股東的溝通中做出的風險因素和其他警示性聲明，包括我們向美國證券交易委員會提交的文件中披露的風險因素。

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.

另請注意，本次電話會議的內容包含時效性信息，僅截至今天準確，我們不承擔更新前瞻性陳述的任何義務。我們也可能在這次電話會議上提及某些非公認會計原則措施。對於這些非公認會計原則衡量標準的調節，您應該參考我們投資者關係網站上的收益資料。最後，今天的通話正在進行錄音，並將於今天晚些時候在公司網站上發布。

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

說到這裡，我想把電話轉給克里斯法勒。

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.

謝謝，克里斯。感謝大家參加我們的第二季財報電話會議。收盤後，我們報告了又一個出色的季度，因為我們的業務在所有領域繼續表現良好。我們的淨收入比上年同期成長 41%，核心收益成長 23%。我們的起源很健康，與 23 年第二季相比，銷量增加了 63%。重要的是，我們維持了利潤和信用標準。我們的投資組合表現良好，我們的特別服務團隊繼續出色地解決拖欠資產。我們的沖銷仍然很低，本季我們的 REO 活動實現了超過 200 萬美元的淨收益。

As a result of our increased originations, we issued two securitizations in April and June. Both deals priced well and saw strong demand from our bond investors. As a reminder, we're required to expense all issuance costs associated with those deals in the current period, which is a drag on current period earnings, but the trade-off has increased spreads going forward as we have no amortization expense to recognize on this debt. Real estate market is performing well for us and we continue to see strong demand for financing from our borrowers. Banks are still constrained and we're starting to see the market price and future rate cuts, both of which should be a tailwind for us going forward.

由於我們的發行量增加，我們在四月和六月發行了兩份證券化產品。這兩筆交易定價都不錯，債券投資者的需求強勁。提醒一下，我們需要在當期費用化與這些交易相關的所有發行成本，這拖累了當期收益，但這種權衡增加了未來的利差，因為我們沒有攤銷費用可以確認這筆債。房地產市場對我們來說表現良好，我們繼續看到借款人對融資的強勁需求。銀行仍然受到限制，我們開始看到市場價格和未來的降息，這兩者都應該成為我們未來發展的動力。

I want to congratulate all my team members on another great quarter as I truly appreciate their commitment to excellence. We will continue to execute our 5x25 growth strategy to reach $5 billion in UPB by 2025, with the ultimate goal of rewarding all shareholders. That concludes my prepared remarks. And we'll turn over to page 3 in the earnings presentation to go through some of the numbers.

我要祝賀我的所有團隊成員又一個偉大的季度，因為我非常感謝他們對卓越的承諾。我們將繼續執行 5x25 成長策略，到 2025 年 UPB 達到 50 億美元，最終目標是回報所有股東。我準備好的發言就到此結束。我們將翻到收益報告的第三頁來查看一些數字。

As I mentioned, good strong growth in core earnings, up to $0.45 a share for the quarter. The NIM widened out from earlier 2Q of '23 by 30 bps, again, showing up as a result of the increased WAC from new originations. In terms of loan production, $422 million in UPB and total portfolio growth on a year-over-year basis of 20%. The NPL loans were up slightly to 10.5%. And we continue to still see positive resolutions on those NPLs and expect to do that going forward.

正如我所提到的，核心收益強勁成長，本季每股收益高達 0.45 美元。淨利差 (NIM) 較 2023 年第二季早些時候擴大了 30 個基點，這也是由於新發源的 WAC 增加所致。在貸款生產方面，UPB 為 4.22 億美元，總投資組合年增 20%。不良貸款率小幅上升至10.5%。我們仍然看到對這些不良貸款的積極解決方案，並期望繼續這樣做。

In terms of the financing capital, I mentioned earlier that we had done two securitizations during the quarter. We highlighted here that there was a $0.06 per share drag on current period earnings from that second securitization as compared to prior periods where we're typically issuing just one securitization. And as I said, that's sort of a timing issue. It will depend on going forward each quarter, how many deals we issue, but should also help in terms of the NIM going forward.

在融資資本方面，我前面提到我們本季做了兩次證券化。我們在此強調，與先前我們通常只發行一項證券化的時期相比，第二次證券化對本期收益的每股收益產生了 0.06 美元的拖累。正如我所說，這是一個時間問題。這將取決於每季的進度、我們發行的交易數量，但也應該對未來的淨利差有所幫助。

Century Health & Housing acquired $3.6 million in MSRs from a bank that originated some recent Ginnie Mae loans. That was a great trade for us because we're continuing to build out the platform and establish new relationships with new borrowers for more business. In terms of liquidity, we're in a strong position there. You can see just under $84 million at the end of the quarter with plenty of warehouse capacity to go forward on.

Century Health & Housing 從一家銀行購買了 360 萬美元的 MSR，該銀行最近發放了一些吉利美 (Ginnie Mae) 貸款。這對我們來說是一筆很好的交易，因為我們正在繼續建立平台並與新借款人建立新的關係以獲得更多業務。就流動性而言，我們處於有利地位。您可以看到本季末的銷售額略低於 8,400 萬美元，並且還有充足的倉庫容量可供繼續使用。

On page 4, we break out the core adjustments here. And then, also, on the right-hand side, as most of you remember, there's a build up here to our adjusted book value per share. I will point out that we had a typo there. In the far right, if you add the $2.39 to the $14.52 of book value, it should be $16.91, not $16.81. So we're correcting that as we hold the call and that will be on the website shortly. But again, continuing to grow book value nicely as we execute on our growth strategy and retain earnings on a go-forward basis.

在第 4 頁，我們在這裡列出了核心調整。然後，正如你們大多數人所記得的那樣，在右側，我們調整後的每股帳面價值有所增加。我會指出我們那裡有一個錯字。在最右邊，如果將 2.39 美元添加到 14.52 美元的帳面價值中，則應為 16.91 美元，而不是 16.81 美元。因此，我們會在召開電話會議時糾正這一問題，並將很快發佈在網站上。但同樣，隨著我們執行成長策略並在未來的基礎上保留收益，帳面價值繼續良好成長。

So that covers it from me. And I'll turn it over to Mark on page 5.

所以這對我來說是很重要的。我會將其轉交給第 5 頁的馬克。

Thanks, Chris. Hi, everybody. In Q2, we continued our strong 2024 performance. On page 5, our loan production for Q2, as Chris mentioned, was a little over $422 million in UPB. This was an 11.5% increase from the $378.7 million in Q1. Kind of to note, there were over 1,100 loans funded in the second quarter. So it's a great demand for the product. The strong production growth during Q2 was achieved with the weighted average coupon for the new originations remaining at 11%, continuing a five-quarter trend of 11% coupon. This growth in originations in Q2 was also a very tight credit levels with the weighted average loan to value for the quarter at 64.7%. And the strong Q2 production growth with the high WAC and the low LTV, again, demonstrates the continued consistent borrower demand for the product.

謝謝，克里斯。大家好。第二季度，我們延續了 2024 年的強勁表現。正如 Chris 所提到的，在第 5 頁，我們第二季的 UPB 貸款產量略高於 4.22 億美元。這比第一季的 3.787 億美元增長了 11.5%。值得注意的是，第二季有超過 1,100 筆貸款獲得資助。所以對產品的需求很大。第二季產量強勁成長，新產品的加權平均票息率維持在 11%，延續了五個季度 11% 的趨勢。第二季的貸款發放成長也是非常緊張的信貸水平，該季度的加權平均貸款價值率為 64.7%。第二季產量的強勁成長以及高 WAC 和低 LTV 再次顯示借款人對該產品的持續需求。

As a result of the strong growth in production, page 6, we see a similar growth in Q2 for the overall loan portfolio. Our total loan portfolio as of June 30 was almost $4.5 billion, it's a 4.6% increase from Q1 and over a 20% increase year-over-year in the portfolio. The weighted average coupon on this portfolio as of June 30 was 9.25%, which is an 18 basis point increase from the Q1 weighted average coupon and an 85 basis point year-over-year increase. The portfolio weighted average loan-to-value ratio remained consistently low at 67.4% as of June 30.

由於產量的強勁成長（第 6 頁），我們看到第二季整體貸款組合也出現了類似的成長。截至 6 月 30 日，我們的貸款組合總額接近 45 億美元，比第一季成長 4.6%，投資組合年增超過 20%。截至6月30日，該組合的加權平均票面利率為9.25%，較一季加權平均票面利率上升18個基點，較去年同期上升85個基點。截至 6 月 30 日，投資組合加權平均貸款成數持續維持在 67.4% 的低水準。

On page 7, our Q2 portfolio NIM increased 19 basis points from Q1 and 30 basis points year-over-year as our portfolio yield component increased 27 basis points quarter-over-quarter and 74 basis points year-over-year, while our cost of funds increased only 8 basis points quarter-over-quarter and 43 basis points year-over-year. This quarter-over-quarter increase in NIM is mainly driven by, again, the strong loan production growth in the quarter at healthy spreads, the higher coupons, and also due to the recent improvement in the securitization market, keeping the cost fairly low.

在第7 頁，我們的第二季度投資組合淨利差比第一季增加了19 個基點，年比增加了30 個基點，因為我們的投資組合收益率部分比去年同期增加了27 個基點，比去年同期增加了74 個基點，而我們的成本基金數量較上季僅成長 8 個基點，較去年同期僅成長 43 個基點。淨利差的環比增長主要是由於本季度貸款生產的強勁增長、利差健康、息票較高，以及最近證券化市場的改善，使成本保持在相當低的水平。

On page 8, our nonperforming loan rate at the end of Q2, as Chris mentioned, was 10.5% compared to 10.1% for Q1. Our nonperforming loan rate has remained consistent for the last five quarters and the ongoing collection efforts by our special servicing department continues to result in resolutions of our NPL loans at favorable gains.

在第 8 頁，正如克里斯所提到的，我們第二季末的不良貸款率為 10.5%，而第一季為 10.1%。我們的不良貸款率在過去五個季度保持穩定，我們的特殊服務部門持續進行的催收工作繼續使我們的不良貸款得到了良好的解決。

The table on page 9 highlights the continued success of the NPL resolution efforts. And again, on a trend basis, we continue to average about 2% or more overall gain on NPL resolutions over the last five quarters.

第 9 頁的表格突顯了不良貸款解決工作的持續成功。同樣，從趨勢來看，過去五個季度不良貸款解決方案的整體漲幅平均約為 2% 或更多。

Page 10 reflects our CECL loan loss reserve and also the net loan charge-off and REO activity. On the bottom left-hand chart, the CECL reserve as of June 30 was $5.2 million or 20 basis points of our outstanding non-fair value loans held for investment portfolio. The CECL reserve is within our expected range. The CECL loan loss reserve number does not include our loans being carried at fair value some of the amortized cost lost. The table to the bottom right shows our net gain and loss from loan charge-offs and REO-related activities during the quarter. And for Q2, we had a net gain on loan charge-offs, REO-related activities of a little over $2 million compared to a slight net loss of $800,000 for Q1. So again, doing really well on low loan charge-offs, selling a lot of these REOs and again in booking a net gain activity for the quarter.

第 10 頁反映了我們的 CECL 貸款損失準備金以及淨貸款沖銷和 REO 活動。在左下方圖表中，截至 6 月 30 日，CECL 準備金為 520 萬美元，相當於我們為投資組合持有的未償非公允價值貸款的 20 個基點。CECL儲備在我們的預期範圍內。CECL貸款損失準備金數字不包括我們以公允價值計量的貸款的部分攤餘成本損失。右下角的表格顯示了本季貸款沖銷和 REO 相關活動的淨損益。第二季度，我們在貸款沖銷、REO 相關活動方面獲得了略高於 200 萬美元的淨收益，而第一季則略有淨虧損 80 萬美元。因此，在低貸款沖銷方面做得非常好，出售了大量這些 REO，並再次預訂了本季的淨收益活動。

Page 11 shows our durable funding and liquidity position at the end of Q2. As Chris mentioned, our total liquidity as of June 30 was just under $84 million and that's made up of over $47 million in cash and cash equivalents and another about $36 million, $36.5 million in available liquidity on our unfinanced collateral. As a result of our strong loan production, we did issue two securitizations in Q2. April, we issued our 2024-2 security with $286 million of securities issued. And in June, we issued our 2024-3 security with almost $205 million of securities issued. Our available warehouse line capacity was $646.5 million at the end of the quarter with a maximum line capacity of $885 million. So still plenty of available capacity on our existing warehouse lines to support future growth for the company.

第 11 頁顯示了我們在第二季末的持久資金和流動性狀況。正如Chris 所提到的，截至6 月30 日，我們的總流動資金略低於8,400 萬美元，其中包括超過4,700 萬美元的現金和現金等價物，以及我們無融資抵押品的約3,600 萬美元、3,650 萬美元的可用流動資金。由於我們強勁的貸款生產，我們在第二季發行了兩筆證券化產品。4 月，我們發行了 2024-2 期證券，發行金額為 2.86 億美元。6 月，我們發行了 2024-3 期證券，發行量近 2.05 億美元。截至本季末，我們的可用倉庫產能為 6.465 億美元，最大產能為 8.85 億美元。因此，我們現有的倉庫線仍然有足夠的可用容量來支持公司未來的成長。

Well, I'd like to now turn the presentation back to Chris to overview Velocity's outlook on key business drivers. Chris?

好吧，我現在想把演講轉回給 Chris 來概述 Velocity 對關鍵業務驅動因素的展望。克里斯？

Thanks, Mark. Yes. I mean, I think looking forward, we feel good about where we're headed. We feel like the markets are healthy and see good activity both on the real estate side and the borrower side. In terms of credit, seeing a lot of mixed signals out there. Obviously, it feels like the Fed is probably going to do some softening here. But we do expect to continue to get those positive NPL resolutions on a go-forward basis. Securitization market is healthy and feels good going forward. So we're very positive there. And from an earnings perspective, just continue to execute like we do and we think that things look very good for the future.

謝謝，馬克。是的。我的意思是，我認為展望未來，我們對前進的方向感覺良好。我們認為市場很健康，房地產方面和借款人方面都表現良好。在信用方面，我們看到了很多混雜的訊號。顯然，聯準會可能會在這方面採取一些軟化措施。但我們確實希望繼續取得這些積極的不良貸款解決方案。證券化市場健康發展，前景良好。所以我們對此非常積極。從收益的角度來看，只要繼續像我們一樣執行，我們認為未來的情況看起來非常好。

So with that, we'll open it up for questions.

因此，我們將開放提問。

(Operator Instructions) Stephen Laws, Raymond James.

（操作員說明）Stephen Laws、Raymond James。

Good afternoon. Congratulations on a very nice second quarter. Chris, I want to touch on page 5 with the loan production. I mean, really strong across the board. And investor loans have rebounded from a little seasonality in Q1, showing pretty consistent growth in commercial and particularly short-term loan products. So $640 million line (technical difficulty) there, do you think this is the right originations? So what's your outlook (technical difficulty) would be great.

午安.恭喜第二季度非常精彩。克里斯，我想談談第 5 頁有關貸款生產的問題。我的意思是，在各方面都非常強大。投資者貸款已從第一季的季節性小幅反彈中反彈，商業貸款產品尤其是短期貸款產品呈現相當一致的成長。那麼6.4億美元的線（技術難度）就在那裡，你認為這是正確的起源嗎？那麼你的前景（技術難度）會很棒。

Yeah. Hi, Stephen. I think you cut out a little bit there, but I think your question was just going forward, what do we think on production levels. Yes, I would expect for the rest of the year around this Q2 run rate feels right. And I think sometimes the product mix moves around a little bit, but it will be something like you're seeing here in Q2. And so yes, I think for the rest of the year, we think it should look pretty similar to that.

是的。嗨，史蒂芬。我認為你刪掉了一點，但我認為你的問題只是向前推進，我們對生產水平有何看法。是的，我預計今年剩餘時間第二季的運行率感覺不錯。我認為有時產品組合會發生一些變化，但會像你在第二季度看到的那樣。所以，是的，我認為在今年剩下的時間裡，我們認為它應該看起來與此非常相似。

Great. And do you have an update maybe on the adjusted book (technical difficulty) there and the rate moves quarter-to-date? Curious how that fair value mark may have changed as of end of July.

偉大的。您是否有關於調整後的書籍（技術難度）的更新以及季度至今的匯率變化？很好奇截至 7 月底，公允價值標記可能發生了怎樣的變化。

Yeah. I mean if we were to mark today, yes, you're right, there would definitely be a change to the positive, obviously. It's going to be largely dependent on where things settle out at the end of the quarter. So if things were to stay where they are today, yes, I think you'd see an increase in the overall book from the drop in base rates for sure.

是的。我的意思是，如果我們今天要紀念，是的，你是對的，顯然肯定會發生積極的變化。這在很大程度上取決於季度末事情的解決情況。因此，如果情況保持在今天的水平，是的，我認為您肯定會看到基本費率下降導致整體圖書數量增加。

Great. And then lastly, Chris, comments around the (technical difficulty) have you seen any banks return to the market really continuing to put up 11% coupons? So probably, not too competitive, but curious about any returning entrance?

偉大的。最後，克里斯，圍繞（技術難度）的評論，您是否看到任何銀行重返市場，真正繼續提供 11% 的優惠券？所以可能不是太有競爭力，但對任何返回入口感到好奇？

Yeah. Not hearing much there. Seeing a lot of borrowers come to us that I think normally would expect to be handled by the banks. So I'm not really seeing any signs of that and everything that I hear is just they're very constrained and limited on the new credit.

是的。那裡聽得不多。看到很多藉款人來找我們，我認為通常會希望由銀行處理。所以我並沒有真正看到任何跡象，我聽到的一切只是他們對新信用的限制和限制。

Great. Well, congrats again on a nice brand. And thanks for the comments this afternoon.

偉大的。好吧，再次恭喜一個好品牌。感謝您今天下午的評論。

Thank you. Appreciate it, Stephen.

謝謝。很欣賞它，史蒂芬。

Steve Delaney, Citizens JMP.

史蒂夫·德萊尼 (Steve Delaney)，公民 JMP。

Good evening, everyone. And a great quarter. Just kind of remarkable, Chris, the consistency of your production and the market is the market. But do you -- if you come right down to it, do you tie that to your relationships with brokers and borrowers? And is it really a defensible market presence that you have that somebody is not going to just come in and undercut you on rates and steal those -- that loan flow? It's the franchise, right? It's the brand.

大家晚上好。這是一個很棒的季度。克里斯，這真是太了不起了，你的產品和市場的一致性就是市場。但是，如果您認真對待這一點，您是否會將其與您與經紀人和借款人的關係聯繫起來？你所擁有的市場地位真的是一個可以防禦的市場存在嗎？這是特許經營權，對吧？這是品牌。

Yeah, I think so. I think we've always believed that this was an underserved niche. It's highly fragmented. There are a lot of different players out there. And we kind of just stick to our knitting and -- because we are a portfolio lender and we have this spread income that comes in, we don't feel the same pressure that other originators do to always put as much volume on the sheets as we can. We can be more disciplined around margin. And so, yeah, I think people -- our customers certainly recognize that we're reliable and there's a certainty of execution there. And so I think that loyalty shows up in our margins and in our production volumes.

是的，我想是的。我認為我們一直認為這是一個服務不足的利基市場。它是高度碎片化的。那裡有很多不同的玩家。我們只是堅持我們的編織——因為我們是一個投資組合貸款人，我們有這種利差收入，所以我們不會像其他發起人那樣感受到同樣的壓力，因為我們總是在票據上投入盡可能多的交易量。我們可以在保證金方面更加嚴格。所以，是的，我認為人們——我們的客戶當然認識到我們是可靠的，並且執行力有確定性。因此，我認為忠誠度體現在我們的利潤和產量中。

Yes. So you've been on about -- you've got sort of a commitment to a target of 11%. Just in the last couple of months since late May, the 10-year is off 70 bps. And if we get three or four cuts over the next six to nine months, is that not going to have to have some kind of impact on your rate? I mean, how are you guys thinking about it internally is in modeling? Like when the world -- when market rates change, are you going to have to respond? Or you can be -- like a credit card, credit cards are 18% to 21% regardless of where (multiple speakers) Fed funds are, right?

是的。因此，您一直在承諾實現 11% 的目標。就在 5 月底以來的最後幾個月，10 年期公債下跌了 70 個基點。如果我們在接下來的六到九個月內進行三到四次降息，這是否不會對您的利率產生某種影響？我的意思是，你們內部是如何看待建模的？就像當世界市場利率發生變化時，您是否必須做出反應？或者你可以——就像信用卡一樣，無論聯邦基金在哪裡（多個發言者），信用卡的利率都是 18% 到 21%，對吧？

Yeah. Good question. Yeah, we've lowered rates a couple of weeks ago when -- and so we monitor the bond markets. We took rates just down 0.25 point. So we won't necessarily move lockstep with the markets because there is some volatility there. But we priced our debt mainly off of sort of somewhere between three- to five-year bonds depending on the weighted average life. And so that's kind of where we focus. We keep an eye on those shorter bond rates and we adjust for those base rate movements.

是的。好問題。是的，幾週前我們降低了利率，所以我們監控債券市場。我們將利率僅下調了 0.25 個百分點。因此，我們不一定會與市場同步，因為市場存在一些波動。但我們的債務定價主要基於三年到五年期的債券，取決於加權平均壽命。這就是我們關注的重點。我們密切注意那些較短的債券利率，並根據這些基本利率變動進行調整。

So yeah, I mean, I think if it continues, we'll follow the market. We will pass that along to our borrowers. And as long as we're maintaining our spread, we're happy.

所以，是的，我的意思是，我認為如果這種情況繼續下去，我們將跟隨市場。我們會將其傳遞給我們的借款人。只要我們保持傳播，我們就很高興。

Right. So your securitizations obviously are fixed rate funds. I guess the only benefit you would get on the liability side would assume your warehouse lines are floating, I guess, on SOFR right?

正確的。所以你的證券化顯然是固定利率基金。我想你在責任上獲得的唯一好處就是假設你的倉庫線是浮動的，我想，在 SOFR 上，對嗎？

Right. Correct.

正確的。正確的。

Yeah. So you will get some carry benefit there, obviously, although it's, obviously, offset a little bit by the lower coupons on the loans.

是的。因此，顯然，你會在那裡獲得一些套利收益，儘管它顯然被較低的貸款票息所抵消了一點。

Probably, yes, right.

大概，是的，沒錯。

Great quarter. You keep beating estimates every quarter. So I guess we're going to have to crank it up a little bit to catch up (laughter).

很棒的季度。每個季度你都會超出預期。所以我想我們必須稍微加快速度才能趕上（笑聲）。

Don't crank it up too much, Steven.

別把它調得太大，史蒂文。

Yeah, I know. We won't. We just like (technical difficulty) that's the good part of it. Congratulations, guys.

是的，我知道。我們不會。我們只是喜歡（技術難度），這就是它的好處。恭喜你們，夥伴們。

Thanks so much. Thank you, Steven.

非常感謝。謝謝你，史蒂文。

(Operator Instructions) Eric Hagen, BTIG.

（操作員說明）Eric Hagen，BTIG。

Hey, guys. Good afternoon. Following up a little bit on the origination side. I mean from an operational and underwriting standpoint, do you feel like you're originating at capacity right now? Or how much more kind of operational leverage do you think you can potentially like extract and originate with your current cost structure right now?

嘿，夥計們。午安.在起源方面跟進一點。我的意思是，從營運和承保的角度來看，您覺得您現在是否已滿載運作？或者您認為現在可以從目前的成本結構中提取和產生多少種營運槓桿？

Yeah, Eric. Thanks. We've spent a lot of money on technology. And in order to do 1,000 units a quarter, you've got to have that in place. So I think we have excess capacity. I don't know, I'd say probably 10% to 20% more. As we go into the end of the year, we probably will increase some headcount to accommodate hopefully, some growth. But it's at the margin and it's not too significant. So I think we can add quite a bit more volume with not too much to the cost structure.

是的，埃里克。謝謝。我們在技術上花了很多錢。為了每季生產 1,000 個單位，您必須做到這一點。所以我認為我們產能過剩。我不知道，我想說可能會多 10% 到 20%。當我們進入年底時，我們可能會增加一些員工人數，以適應一些成長。但它處於邊緣，並不太重要。因此，我認為我們可以增加更多的數量，而不會影響成本結構。

Yes. Okay. That's really helpful. Thanks for giving some context there. I mean, what do you feel like is the all-in kind of ROE from originating and delivering into securitization with spreads at these levels, even if you have like a benchmark for the two deals that you did last quarter. And if we see securitization spreads tighten, I mean, what does that mean for your ROE? Is there a way to kind of benchmark that and sensitize that?

是的。好的。這真的很有幫助。感謝您提供一些背景資訊。我的意思是，即使您對上個季度所做的兩筆交易有一個基準，您感覺從發起和交付證券化到這些水平的利差，總​​的股本回報率是怎樣的。如果我們看到證券化利差收緊，我的意思是，這對您的淨資產收益率意味著什麼？有沒有一種方法可以對其進行基準測試並使其敏感？

Yeah. Good question. We think that the ROEs are north of 25% at these levels. If spreads tighten, we'll see the benefit of that over a multiyear period, obviously, because we're locking in fixed rate loans against fixed rate debt. So yeah, if we see some tightening in the spreads, I think that could significantly boost ROE. On the go-forward deals, obviously, it's a blend of all of the transactions. But at the margin, I think new stuff is well north of 25%.

是的。好問題。我們認為在這些水準上 ROE 超過 25%。如果利差收緊，我們顯然會在多年時間內看到其好處，因為我們鎖定了固定利率債務的固定利率貸款。所以，是的，如果我們看到利差收緊，我認為這可能會顯著提高股本回報率。顯然，就遠期交易而言，它是所有交易的混合。但從邊際角度來看，我認為新產品的比例遠高於 25%。

Really helpful. Thank you, guys, so much.

真的很有幫助。非常感謝你們，夥伴們。

Thank you, Eric.

謝謝你，埃里克。

This concludes our question-and-answer session. I would now like to turn the conference back to Mr. Chris Farrar for any closing remarks.

我們的問答環節到此結束。現在我想請克里斯法勒先生發表閉幕詞。

Yeah. Thanks, everyone, for joining the call. We appreciate your support and we're going to just continue to execute on our plan and look forward to speaking to everyone next quarter. Thank you.

是的。感謝大家加入通話。我們感謝您的支持，我們將繼續執行我們的計劃，並期待在下個季度與所有人交談。謝謝。

Thank you, everybody, for your time.

謝謝大家抽出時間。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。