Bread Financial Holdings, Inc.

And welcome to Bread Financial's first quarter 2025 earnings conference call. My name is Livia, and I'll be coordinating your call today. At this time, all parties have been placed on a listen-only mode. Following today's presentation, the floor will be open for your questions. To register a question, please press star 1-1. It is now my pleasure to introduce Mr. Brian Barup, head of method relations at Bread Financial. The floor is yours.

Thank you. Copies of the slides we will be reviewing and the earnings release can be found on the investor relations section of our website at breadfinancial.com. On the call today, we have Ralph Andretta, President and Chief Executive Officer, and Perry Biberman, Executive Vice President and Chief Financial Officer. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC. Also on today's call, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. Reconciliation of those measures to GAAP are included in our quarterly earnings materials posted on our investor relations website. With that, I would like to turn the call over to Ralph Andretta.

Thank you, Brian, and good morning to everyone joining the call. Today, Bread Financial reported strong first quarter 2025 earnings results, including net income of $138 million and earnings per diluted share of $2.78. Our results reflected our resilient business model, strategic credit tightening actions, and ability to deliver despite a challenging macroeconomic environment. We advanced our efforts to optimize our capital structure and strengthen our balance sheet with successful execution of a $400 million subordinated notes offering during the first quarter. As a result of our disciplined approach to capital allocation, we also completed our $150 million board authorized share repurchase program, repurchasing 3.2 million shares over March and April. These actions and the ongoing strong capital and cash flow generation of our business create additional capital flexibility and opportunities for Bread Financial to deliver further value to our shareholders. Additionally, our direct-to-consumer deposits continue to grow steadily, increasing to $7.9 billion at the end of the quarter, up 13% year over year. It is notable that we are approaching the $8 billion mark when just five years ago our deposit program was just over $1 billion in balances. Credit sales grew 1% year-over-year in the first quarter, driven by higher general-purpose spending and overall transaction volume with low gas prices helping to bolster consumers' discretionary purchasing power. Midway through April, we are seeing solid growth year-over-year due to the timing of Easter spend pushed by March into April, coupled with the likely accelerated purchases as consumers anticipate future price increases on things like electronics, home furnishings, and auto parts. The risk of economic weakness continues to grow as evidenced by the uncertainty reflected in sharply lower consumer and small business confidence and sentiment. We are closely monitoring consumer reaction to tariffs, trade policy, and broader concerns, including advancing near-term purchases ahead of potential price increases, which could reduce future spend, giving expected higher inflation. Policy shifts around regulation, including the U.S. district courts recently vacating the CFPB late fee rule, may benefit our industry longer term and the economy as a whole. However, in the near term, risks associated with tariffs, trade policies, and inflation may adversely impact consumer strength. We will continue to monitor economic and consumer financial health closely and remain disciplined with our credit risk management approach. We are seeing positive results from our credit management strategy as our ongoing prudent underwriting, disciplined credit line management, and product diversification actions improve credit performance trends. These trends help offset consumer credit pressures attributed to challenging macroeconomic conditions. We are pleased with our new partner signings in the quarter, including today's card program announcement for crypto.com. further diversifying our portfolio industry verticals. We continue to compete and win new programs that expand our reach and offer growth opportunities. Our current pipeline remains robust with a mix of portfolio conversions and de novo opportunities across co-brand, private label, installment lending, and diversified industries. We recently expanded our relationship with AAA to market deposits and personal loans to AAA members across North America. This is a great opportunity to offer a full suite of products across a loyal and expansive member base. Further, we continue to successfully renew programs with our existing brand partners, including extending our long-term agreement with Academy Sports, where we offer both our card and bread pay products. Our strong renewal rate is a testament to our team's focus and dedication to delivering value to our brand partners and their customers. As always, we remain resolute and focused on responsible growth, disciplined capital allocation, and continued execution of our operational excellence efforts. These focus areas enable us to maintain flexibility to adapt to changing fiscal and monetary policy and the evolving regulatory landscape. In summary, we are well positioned to generate capital and cash flow, deliver strong returns, and create sustainable long-term value for our shareholders. Now we'll pass it over to Perry to review the financials in more detail.