Sunlight Financial Holdings, Inc.

Greetings. Welcome to Sunlight Financial's first quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Lucia Dempsey, Head of Investor Relations. Thank you. You may begin.

Good afternoon and welcome to Sunlight Financial's first quarter 2023 earnings call. After the close of the market today, we filed our first quarter 2023 form 10Q, announced first quarter 2023 financial results, and posted an earnings presentation to our investor relations website at ir.sunlightfinancial.com. Before we begin, I'd like to remind everyone that this webcast may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. Such statements are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Board booking statements include, but are not limited to, Finite Financial's expectation or prediction of financial and business performance and conditions, and competitive and industry outlooks. Forward-looking statements speak as of the date they are made, are subject to risks, uncertainties, and assumptions, and are not guarantees of performance. Slanoc Financial is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. The company also refers participants on this call to the press release issued by the company and filed today with the SEC, the supplemental presentation posted to Slanoc Financial's website, and Sunlight Financial's SEC filings for a discussion of the risks that can affect our business. Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in both our press release and the supplemental presentation. Joining me today are Matt Pateri, Sunlight Financial's Chief Executive Officer, and Rodney Yoder, Sunlight's Chief Financial Officer. Matt will start with an operational performance review of the first quarter of 2023. Rodney will then share additional detail on our financial results before Matt closes with an update on our key priorities for our ongoing success. We'll then open up the call for questions. It is now my pleasure to turn the call over to Matt Pateri.

Thank you, Lucia, and thank you all for joining us. In the first quarter of 2023, Sunlight funded $627 million of solar and home improvement loans, reflecting a 6% increase relative to the first quarter of 2022, or a 12% increase when normalizing for the impact of the solar installer that filed bankruptcy in late 2022. Home improvement volume was particularly strong, with $92 million funded in the first quarter of 2023. That's a 20% increase relative to the same period last year. We also funded loans for nearly 16,000 borrowers in the first quarter, demonstrating the sustained demand for solar and home improvement financing overall. We also saw average loan balances continue to grow relative to the first quarter of 2022, with average solar loans up 6% to $47,000 and average home improvement balances up 13% to $19,000. Additionally, we continue to maintain strong relationships with our network of contractors and add new partners to our Orange origination platform, including 41 new solar installers and 32 new home improvement contractors that became active in the first quarter of this year, increasing our total contractor relationships to 2,070, a 30% increase relative to the first quarter of 2022. As previously disclosed, we believe that the new financing arrangements with Cross River Bank, as well as other actions we've taken, position Sunlight to address many of the key issues faced in 2022 by enhancing our indirect channel execution, bolstering our liquidity, addressing the maturity of our SVB revolving credit facility, ensuring profitable pricing, right-sizing our expense base, and reducing our contractor advance program. I also wanted to take this opportunity to provide an update on our credit performance, which demonstrates that we continue to be an industry leader in credit quality. While we don't hold loans on our own balance sheet, we track the performance of loans originated with our orange platform that we can ensure high quality credit performance for our capital providers and indirect channel partners. For example, solo loans that Sunlight originated in 2022 had an average credit loss rate of only 77 basis points after 24 months, relative to 162 basis points for similar loans originated by our peers in 2022. This superior credit performance reinforces our dedication to high-quality assets and supports our value proposition for current and future capital providers, providing them the opportunity to earn an attractive risk-adjusted return, which in turn benefits some nice margins. I'd like to now turn the call over to Rod DeOder, Sunlight's CFO, to discuss the quarter's financial results.