OppFi Inc.

Good morning and welcome to OpFi's first quarter 2026 earnings conference call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. Following management's presentation, a question and answer session will be held. For those listening by dialing, you will be prompted to enter the queue after the prepared remarks. I am pleased to introduce your host, Mike Gallantyne, Head of Investor Relations. You may begin.

Thank you, Operator. Good morning and welcome to OPFI's first quarter 2026 earnings call. Today, our executive chairman and CEO Todd Schwartz and CFO Pam Johnson will present our financial results, followed by a question and answer session. You can access the earnings presentation on our website at investors.opfi.com. During this call, OPFI may discuss certain forward-looking information. The company's filings with the SEC describe essential factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements. Please refer to slide two of the earnings presentation and press release for our disclaimer statement covering forward-looking statements and references to information about non-GAAP financial measures. which will be discussed throughout today's call. Reconciliation of those measures to GAAP measures can be found in the appendix to our earnings presentation and press release. In addition, certain important information related to the BNCC transaction will be included in the registration statement on Form S-4 that will be filed by OPFI in conjunction with the transaction. Investors are encouraged to read the Form S-4 and other documents filed with the SEC in conjunction with the transaction. Additionally, OPFI and BNCC and their directors and officers may be deemed to be participating in a solicitation of proxies in favor of the proposed merger. Please refer to the disclaimer information included in our earnings release. With that, I'd like to turn the call over to Todd.

Thanks, Mike, and good morning, everyone. Thank you for joining us today. Pam will review our strategic investments and our Q1 financial performance and metrics. But first, I'd like to share a little bit more about OPCI's recently announced plan to acquire BNCC Corp. and BNC National Bank in a cash and stock transaction valued at approximately $130 million. OpFive's goal has always been to be the leading digital finance platform offering essential financial products and services to everyday Americans. This acquisition, in addition to our previous investment in Biddy, our Lola lending system, and our new line of credit product, is a pivotal step toward fulfilling that promise. BMC National Bank is a community-focused institution with over $1 billion in total assets and a veteran management team with decades of banking experience. They serve individuals and small to medium businesses through a diversified set of financial products, including personal and commercial loans, SBA loans, and wealth management. We believe the BMC transaction will not only provide OPFY with a larger geographic footprint, to expand credit access, but will also unlock significant synergies in operating efficiencies and capital. By uniting OpFi's technology with BNC's national charter and established deposit base, which totaled approximately $1 billion at the end of 2025, we will be positioned to provide broader access to financial products for underserved populations. Financially, this acquisition is expected to be transformative. BNC brings a stable, low-cost funding profile with over 80% of BNC's deposits carrying a cost of less than 2%. We expect this to significantly enhance our balance sheet flexibility and lower our overall funding costs. We expect this combination to be at least 25% accreted to adjusted EPS in the first year post-closing, 40% accreted in the second year, and 50% accretive in the third year. We are very excited to work alongside the BNC team to expand and digitize their core business. We believe that vertically integrating with BNC will provide our platform with the strongest possible strategic footprint, allowing us to expand our products and consumer choices and credit access while reducing costs for our customers. We believe this will also benefit our investment in VITI by enabling us to further expand our small business platform, offering multiple products and serving additional customer segments. We expect to close in the fourth quarter of 2026, subject to regulatory approval and other closing conditions, and look forward to providing further updates throughout the year. In addition to the acquisition of VNC, we have simplified our corporate structure by transitioning from an up-sea structure to a traditional C-Corp legal structure. This change is intended to provide tax optimization and remove operational complexity of the up-sea structure. As a result of this simplification, all off-price stockholders now hold Class A common stock with identical economic and voting interests. We believe this enhances our acquisition currency as our stock is more straightforward and attractive vehicles for future growth and M&A activity, ensuring our capital structure is as agile as our technology platform. For the remainder of my remarks, I will be discussing product and credit initiatives and the Lola migration. Ops 5 fully deployed the Model 6.1 refit in Q1. The refit is designed to increase volume while improving overall delinquencies. As discussed last quarter, Our current goal is to launch a model refit every six months and a new model every year. This will allow us to have the most current data to build our models and keep up with the ever-changing macro environment and customer sentiment. The team is hard at work building our most powerful model, Model 7. We expect to launch Model 7 in the fall of this year. OPFI continues to make great progress on building Lola. The origination and servicing system of the future. Lola provides a clean architecture designed to leverage rapidly evolving AI tools across origination, servicing, and corporate operations. The building phase and test phase is complete, and we are actively finalizing the quality assurance phase of the project. Initial migration is planned for this month, with substantial completion to our new software system expected in the third quarter of 2026. Early indicators give us confidence in our belief that Lola will help continue to improve funnel metrics, increase automated approvals, enhance efficiency in servicing and recoveries, better integrate major systems, deliver reduced cycle times, and greater throughput for our product, tech, and risk teams. With the initial launch of Lola in Q2 2026, OpFi is excited to announce a new line of credit product, We expect this product to launch with our bank partners in the summer of 2026. This exciting product will not only serve as another high-quality credit access option for customers in our current states, but also enable us to serve new geographies. This product will have the same fair and transparent features that Oploan's installment product has provided to millions of customers. Our low-level system and architecture enable us to deploy and develop new products in response to customer needs and market dynamics. Finally, the Board of Directors has approved a new $40 million share repurchase program, which replaces our prior repurchase program, reflecting our firm conviction that OptiStock is currently trading below its intrinsic value. This decision underscores our board and management's confidence in the robust long-term cash generation capabilities of the business we have built. By allocating capital toward our own shares, we are reaffirming our commitment to enhancing stockholder value, signaling our optimistic outlook on the company's financial health and growth potential. Our recent announcement to acquire VNC marks another major milestone in the evolution of OpFi. OPFI is strategically retooling and investing more than $150 million in 2026 to prepare our business for sustainable long term growth. We are excited to get to work with the BNC team and execute on our shared vision of being the leading technology enabled bank platform that offers essential credit access and community banking services to everyday Americans and businesses. With that, I'll turn the call over to Pam.