Good morning, and welcome to OppFi's Q1 2022 earnings call. All participants are in a listen-only mode. As a reminder, this conference call is being recorded. After management's presentation, there will be a question and answer session. It is now my pleasure to introduce your host, Shaun Smolarz, Head of Investor Relations. You may begin. Thank you, operator. Good morning. On today's call are Todd Schwartz, Chief Executive Officer and Executive Chairman, and Pamela Johnson, Chief Financial Officer. Our Q1 2022 earnings press release and supplemental presentation can be found at investors.oppfi.com. During this call, OppFi will discuss certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by OppFi's management in light of their experience and assessment of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statements made during this call are made as of today, and OppFi undertakes no duty to update or revise any such statement, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the company's filings with the Securities and Exchange Commission, including the sections entitled Risk Factors. In today's remarks by management, the company will discuss non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in the earnings press release issued earlier this morning. This call is being webcast live and will be available for replay on our website. I would now like to turn the call over to Todd. Thanks, Shaun, and good morning, everyone. The past two months since I returned to OppFi as CEO have been very exciting. We have refined our company mission and growth strategy, refocused our efforts on the installment loan business, and continued to build our leadership team to take us to the next level as a publicly traded company. Now, I would like to cover three topics before I turn the call over to Pam. One, offer some reflections on the Q1 and macro trends. Two, discuss more detail about our long-term growth strategy. Three, elaborate on our proactive regulatory initiatives. While Pam will discuss our financial results in more detail, I wanna start by discussing a few key highlights from the Q1. The robust demand environment we experienced in Q4 continued to accelerate through Q1, resulting in a 63% growth in origination volume year-over-year. A Q1 record for originations for us with a more normalized credit demand environment in the absence of federal stimulus dollars. In addition, our receivables ended the quarter at $338 million, up 38% year over year and remaining flat since the beginning of the year. Moreover, we rolled out an updated underwriting model which tightened our scoring parameters and shifted our mix to higher quality customers. As a result, we believe the quality of our originations was very strong as measured by future expected net charge-off rates. The Q1 vintages are experiencing early delinquency rates for new loans that are 20% lower than for loans originated in the H2 of 2021. As a result, we are cautiously optimistic about this improved trend. We are also very pleased with our improved operational efficiency in the quarter. Our auto approval rate reached 61%, up from just 41% in the prior period. In addition, our cost per new funded loan decreased 17% year-over-year to $221 and decreased 15% sequentially from Q4 2021. Turning to the income statement, total revenue grew 20% to $101 million year-over-year, ahead of our expectations, driven by robust origination growth. However, as we anticipated, profitability was muted in the quarter due to elevated charge-offs from lower credit quality originations during the H2 of last year, combined with a softer benefit from tax refund season. As a result, net revenue declined to $51 million. Adjusted EBITDA decreased to $11 million. Adjusted net income was approximately $600,000 with adjusted diluted earnings $0.01 Per share. While we anticipated these results, we pride ourselves by our strong track record of solid profitable growth. Therefore, we view these Q1 results as a one-time event, and we are already starting to see credit normalize as we anticipated. In addition, the current macro environment, which includes 40-year high inflation and rising interest rates, is fueling demand by our customers. Within our industry, non-prime lenders and banks are pulling back from our target market, driving strong borrower demand to our platform. We believe we are well-positioned to capitalize on this strong demand environment within our addressable market, affording us the opportunity to be more selective in our underwriting and facilitate credit to stronger, high-quality borrowers. Moving on to discuss the long-term strategy. With my return as CEO, we have refined our mission to be focused on facilitating safe, simple and more affordable credit access to the 60 million everyday Americans who currently lack traditional options while rebuilding their financial health. All of our current and prospective growth initiatives are, and will be designed to help facilitate affordable credit access to achieve our overall mission for financial inclusion. For example, our market-based offer feature is helping us penetrate our existing market while also expanding our addressable market by more strongly competing on rate, term, and loan amounts, and thereby enabling us to reach customer segments that we have not historically served. We are actively exploring product extensions to enter adjacent market segments, including a sub 36% installment loan product that would feature a different business model with less balance sheet and credit risk. We would also consider acquisitions that would enable us to provide access to other customer types in adjacent lending categories and diversify our business mix. We have continued to build and augment our leadership team. In late March, we announced the appointment of Pam Johnson as Chief Financial Officer. Pam joined OppFi last year as Chief Accounting Officer, leading and expanding our accounting department since prior to our business combination with FG New America. Pam was CFO for more than a decade at multiple consumer finance companies, served nine years in accounting at a large regional bank and began her career in public accounting. We are very fortunate to promote Pam and are appreciative of Shiven Shah, our former CFO, for his tremendous leadership during the past five years. We also recently welcomed Manny Chagas as our Chief Operating Officer. He manages our people team, customer operations functions, and banking partnerships to attain greater productivity and optimize employee and customer experiences. Manny joined us from Discover, where he spent eight years in various leadership roles, which included managing product, marketing and operations for its student loans business. We are confident that Manny will help us enhance employee engagement, gain market share, and achieve stronger profitable growth. We also underscored our commitment to building a best-in-class investor relations program by welcoming Shaun Smolarz as Head of Investor Relations, a newly created position. We believe Shaun's expertise will be invaluable to OppFi as we seek to grow our analyst coverage and investor base. We look forward to engaging with current and prospective investors more frequently so that our growth strategy and competitive differentiation are clearly understood. We are confident that his more than 10 years of capital markets experience, including equity research on both the sell side and buy side, will enable him to successfully lead the strategy and execution of our investor relations function. Turning to the regulatory side of our business, I want to provide a brief update of our proactive activity to defend our business in California. In March, we filed a complaint in Los Angeles Superior Court for a declaratory and injunctive relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California. We are seeking a declaration that the interest rate caps set forth in California law do not apply to loans that are originated by OppFi's bank partner and serviced through OppFi's technology platform. On April 8th, the DFPI filed a counterclaim against the company. The company intends to aggressively prosecute the claims set forth in the complaint and vigorously defend itself against the counterclaim, as OppFi believes that the DFPI's position is without merit, as explained in our complaint. There are 7.2 million Californians that lack access to traditional credit options, and OppFi will continue to defend their ability to obtain credit by utilizing our platform. While we will not comment further on this pending litigation, I will share with you highlights of a recent survey that we undertook to better understand our customers in California and the value that they place on our platform. Of the 1,700+ respondents, more than 90% had a positive experience. Almost 50% were turned down by a bank or credit union, and more than 50% declined by another online lender. Without OppFi or one of our peers, more than 80% would fall behind on bills. 30% would be at risk of losing their job or losing their housing, and 12% would file bankruptcy. We think these statistics are compelling and speak for themselves. However, I want to further underscore the primary conclusion from this survey. 80% of the respondents choose to leave an optional comment, and of these, 93% were positive. Here's one such comment. "It helped me get through the struggle I was facing. Without the help, I honestly don't even know what would have happened. I'm very blessed to know OppLoans exists because there's many people out there who probably don't know there is this helping hand." These survey results and comments illustrate why we continue to lead the industry with an 85 Net Promoter Score. Facilitating access to credit for these customers during their challenging financial times is exactly what motivates me and our entire company every day to truly make a difference in people's lives. In closing, I want to reiterate that we are committed to executing on our corporate share repurchase program when we believe OppFi's share price is disconnected from the long-term value and potential of the company. In addition, my family and I are and have been strong believers in the long-term potential of OppFi and are prepared to further invest and support the stock when we see such a disconnect in the market. With that, I'll turn the call over to Pam to review our Q1 in more detail. Thanks, Todd, and good morning, everyone. Turning now to our Q1 results. Total revenue increased 20% to $101 million. As Todd mentioned, we achieved a 63% year-over-year increase in origination while lowering our marketing costs per new funded loan by 17% or $45- $221 compared to the prior year period. These results reflect stronger strategic marketing partnerships and more efficient utilization of other non-direct mail channels, such as search engine optimization, email, and customer referrals. We have seen a year-over-year increase in key operational metrics such as qualified rate, defined as qualified apps over applications, and funded rate, defined as funded loans over qualified apps. In addition, our investments in automation resulted in our auto-approval rate increasing 49% year-over-year to 61%. Our origination mix continues to shift towards a servicing or facilitation model for bank partners from a direct origination model. Total net originations by our bank partners increased to 95% in the Q1, up more than 24 percentage points from the Q1 of 2021. In addition, our net origination saw an increase in the percentage of originations of new loans compared to refinance loans as we continue to drive growth through increased marketing spend, with cost-efficient marketing partners driving more new loans. Total net originations of new loans as percentage of total loans increased to 53%, up nearly 20 percentage points from the Q1 last year. Our annualized net charge-off ratio was 56% for the Q1 of 2022 versus 53% for the Q4 of 2021 and 30% for the prior year quarter. The increase reflects a normalization of credit towards pre-pandemic levels and includes losses from new loan segments that are no longer being approved in 2022. However, to reiterate what Todd said earlier, the higher quality level of originations from the Q1 are already leading to early delinquency rates that are 20% less than for originations in the H2 of last year. We continue to expect improvement in our net charge-off ratio beginning in the Q2, trending towards pre-pandemic levels as the year progresses, driven by our updated underwriting model with tighter parameters. In addition, as Todd mentioned, we are utilizing this opportunity to focus originations on higher credit quality borrowers within our addressable market. Turning to expenses. Operating expenses for the Q1, excluding interest expense as well as add backs and one-time items, increased 34% to $43 million, or 43% of total revenue from $32 million or 38% of total revenue in the year-ago period. The year-over-year increase was due to higher direct marketing costs to drive new originations, an increase in salaries and benefits related to additional headcount, increased insurance costs as a public company, and further investment in technology infrastructure. However, as discussed in our Q4 earnings call, we launched operational efficiency initiatives in the Q1 that we anticipate will yield $15 million in after-tax annual cost savings. All of these initiatives are well on track in performing to our expectations. While we anticipate realizing only a portion of the $15 million this year, we are on pace to exit 2022 in position to benefit from the full run rate next year. Adjusted EBITDA totaled $11 million for the quarter, down $21 million versus the prior year quarter as higher revenues were more than offset by elevated charge-offs and increased operating expenses. As expected, our adjusted EBITDA margin compressed to 11% compared to 38% in the year-ago period. Interest expenses excluding debt amortization for the Q1 totaled $7 million, or 7% of total revenue, compared to $4 million or 5% of total revenue in the year-ago period. We generated adjusted net income of approximately $600,000 for the Q1 compared to $19 million for the comparable period last year. As of March 31st, 2022, OppFi had 84.5 million adjusted shares outstanding, excluding 25.5 million earn out shares. Adjusted basic and diluted earnings for the Q1 were $0.01 per share. Our balance sheet remains healthy with cash of $60 million, total debt of $281 million, gross receivables of $338 million, and equity of $157 million. Our net debt-to-equity ratio remains well below 2x and coupled with approximately $455 million in total funding capacity, we have ample liquidity available to support our future growth plans. Turning now to our outlook. As Todd discussed, based on our strong origination volume recorded in the Q1, our macro outlook and anticipated improvement in net charge-offs in the H2 of the year, we are reiterating our full year guidance as previously issued. To summarize, we expect the following for 2022. Total revenue and ending receivables growth of 20%-25%. Net revenue margin defined as gross revenues less change in fair value between 60%-65%. Adjusted operating expenses excluding interest expense, add backs and one-time items as percentage of revenue between 43%-47%. Adjusted EBITDA margin between 20%-25%, and adjusted net income margin between 8%-12%. Importantly, we have refined our outlook based on confidence in three key areas. Number one, origination volumes remain strong. Number two, net charge-offs stabilizing and improving with our tightened underwriting model. Number three, realizing benefits from operating expense efficiency initiatives already underway. We believe our balance sheet is well positioned to weather market disruptions with multi-year committed lines and ample capacity. Further, compared to some peers in the specialty lending industry, we think our profitability is less affected by higher interest rates. Our credit agreements contemplate rising interest rates resulting in minimal impact on our financial performance and spreads and underscoring the resiliency of our business model to weather varying economic cycles. In mid-April, we were very excited to have reached a total return swap agreement that provides up to $75 million in additional funding capacity. Through this structure, loans are originated by our partner banks as they normally do, but then interest in the loans are purchased by a third party, which provides balance sheet relief to the banks. OppFi continues to perform loan servicing. OppFi also provides credit protection through the total return swap to the lender that provides financing to the third party. Since we are familiar with the underlying assets, we believe this structure enables us to maintain the growth in our core products while increasing capital efficiency. With that, we would now like to turn the call over to the operator for Q&A. Operator? Thank you. Ladies and gentlemen, on the phone lines, if you wish to ask a question, please press the one followed by the four on your telephone. You will hear a three-tone prompt to acknowledge your request. If your question has been answered and you would like to withdraw your registration, please press the one followed by the three. Once again, ladies and gentlemen, that is one, four if you have a question. First phone question is from the line of David Scharf with JMP Securities. Please go ahead. Your line is open. Great. Good morning, everyone. Thanks for taking my questions. Hey, Todd, wondering if you can expand a little bit on sort of, you know, the broad comments about how you've refined your sort of target marketing and underwriting. I guess, you know, specifically as you talk about sort of higher credit quality borrower, can you be a little more specific? I mean, obviously these are higher cost loans, triple-digit APRs. Is it primarily a reflection of the channels through which they come from? Are there any particular characteristics, whether it's, you know, debt-to-income levels? Just trying to get a little better sense for, you know, how the business has either been repositioned or reset to, you know, pre-2021 levels. Yeah. Good morning, David. Thank you for that question. Coming back in as the founder, some of the things that were core to OppFi in the early days were our robust referral program. We didn't really have marketing in the early days when I kind of founded the business. It was basically all referrals. I have a real granular understanding of how to propel our referral program, and we've made some operational changes that have significantly improved that channel, which is a low-cost channel. We do receive higher quality borrowers from referrals. One thing that it has really been revamped over the fourth is our search engine optimization, you know, program. These obviously there's some overhead attributed to it, but as far as the actual acquisition cost, it's virtually zero. You know, we're deriving a lot of new originations from that channel. The acquisition costs from last year has significantly improved, you know, due to those efforts. Also direct mail, right? Direct mail on the acquisition cost on that channel was coming in higher than we'd like from an ROA perspective, if you look at the ROA. We've been able to make significant strides. We rebuilt the direct mail model that you know better targets customers in the market, and they get better response rates and conversion rates. Those are some of the things we're doing on the marketing channel side, I think. If you look at the partner channels, the Credit Karmas, the LendingTree, the QuinStreet of the world, our market-based offers have been, you know, we're still testing, we're cautiously optimistic. We obviously, if you remember from the last call, we had some issues in testing in the H2 of last year that kind of came back to bite us a little bit in the Q1. The market-based offers allows us to find new borrowers, and then we segment our borrowers in our credit model. You know, our weighted average risk score, which is if you take like as a whole, as a vintage has come down significantly. We know that we're finding higher quality customers, and able to still maintain, you know, more free cash flow and relatively the same ROA. I feel really good about those operational improvements we made over the Q1. We're starting to get the benefit of it and see extremely strong demand and like I said, with a higher quality customer coming through. I think the second part of the question was, how do we know that they're higher quality? Well, we've been around for 10 years, and our data, you know, is pretty robust just by the sheer number of volume and number of customers that we've serviced for the last 10 years. You know, there's various attributes that go into the scoring that allows us to identify these customers. These customers are definitely higher quality, you know, based on ability to pay, based on their bank transactions, based on the attributes that we're looking at from the various data sources that we pull. We feel really good about the fact that we've tightened the credit model over the Q1, but still are, you know, exceeding our growth plan and the acquisition cost is also matching. That's kind of what I call the trifecta. Got it. No, that's very helpful. Obviously the early stage delinquency reductions are certainly supporting it. Hey, just one follow-up. You know, as we think about, you know, the product mix and the profile, you know, going out, you know, 12, 24 months, you had referenced adjacencies including sub 36%. Is that a. Just, you know, curious, is that a business where, I guess number one, if there's any overlap with your existing borrower base. I mean, sometimes, you know, repeat borrowers demonstrate the ability to continually, you know, repay and get offered lower rates. I'm curious whether or not any of your installed base you actually think might be ultimately qualify for that. From a return standpoint, you know, based on your existing cost of capital, obviously, that's a lot less APR starting with. You know, would there have to be a different funding strategy contemplated to meaningfully underwrite sub-36% loans? Yeah. You know, the way we're gonna play sub 36% to be clear, is from a, as a servicer, right? As an originator and a servicer. You know, we don't plan to play it where we take the credit risk, or the balance sheet risk. You know, one thing that OppFi has built is one of the strongest, you know, consumer-facing brands in, you know, in the, in the online lending world. We have an 85 NPS. Our tech infrastructure allows for, installment-based products. You know, for us to play sub 36%, all the marketing channel partners and a lot of the marketing that we're already doing is consistent with, you know, the core business. It's essentially taking everything that we've built over the last 10 years and using it to earn service and fee income and acquisition fee income from customers. It also provides for a natural graduation product for our current customers. Unfortunately, you know, we have this product feature, David, where we screen our customers against a consortium of low-cost lenders before they take out our product. It's our commitment to our customers to make sure, hey, if we can find you lower cost of capital, let's do that and hope you're successful. Out of the 7% that match, I think half of those end up getting approved. Unfortunately, the reality is, it's a small percentage today, but it would be nice that if we were able to match, we could provide that product for the customer instead of kind of, you know, providing it through a third party, you know, consortium of lenders. In addition, yes, it's a natural graduation product for our customers. When our customers are successful and do pay us over time and their credit profile improves, it's a natural graduation for a customer, which would be a lower rate, a little bit of a longer dated maturity and larger amounts of capital to help them consolidate, you know, bills and expenses. Got it. Great. Thank you very much. It's helpful. Yep. Thank you. Our next question is from the line of Mike Grondahl with Northland Securities. Please go ahead, your line is open. Hey, guys. Thanks. Could you talk a little bit about demand and kind of the pacing of demand, kind of January through April? Specifically the pacing, like, has it picked up towards the H2? Yeah. Just thinking of Just thinking of with inflation and gas prices kind of rising a little bit later in the quarter. Just trying to understand, did you see demand pick up at the same time? Maybe kind of what you saw with delinquencies and credit quality as those things have picked up. Yeah. I mean, you know, there was a muted tax refund season pretty much the whole Q1, you know, we saw a strong number. Specifically March, April, there's been a noticeable pickup. I think, you know, with everything from prices rising, you know, 8%-9% year-over-year to interest rates rising, housing costs, I mean, these are all hitting not just our borrowers, but kind of, you know, all consumers. I think what's happened in March is we've anecdotally heard, but also read that there's banks, you know, that may have been serving kind of the top tier of our customers for the last, you know, couple of years through COVID, have now tightened their credit models. You know, we're getting the benefit of those customers now, you know, once again interacting with OppFi and needing us to facilitate credit access for them. Yeah, there's definitely an increase in demand, and, you know, higher quality borrowers that we're seeing. Got it. Pam, that $75 million financing you talked about. How will that show up or will that show up kind of in your financial statements? How should we think about you guys accessing that, and how will we see that? Right now, we're still researching that with our technical accounting advisors, Mike. We are anticipating having that as an off-balance sheet item, so you won't see that on our balance sheet. However, we will be the servicer. You'll see fees and acquisition costs or acquisition fees related to that product. Plus then you'll see a derivative on the balance sheet for the total return swap. Got it. Okay. Thank you. Thank you. Ladies and gentlemen on the phone line, once again, it is one, four to ask a question. One moment, please. Oh, we do have another question from the line of Chris Brendler with D.A. Davidson. Please go ahead. Your line is open. Hi. Good morning. Thanks. I missed the one, four. Thought it was star one. I wanted to ask on the credit side, just to confirm that the issues in the Q1 and some of the improvement you've seen subsequently, that was pretty much the same issues you called out last quarter with their some of those marketing partners you had, just wanna make sure that there wasn't an additional step down in some of that H2 vintages that have been underperforming. No. I mean, we have not been originating. You know, we've made subsequent enhancements to the model in early in the Q1. That volume is no longer, you know, being originated or facilitated. We deemed it to not be, you know, a customer that can be successful in our system. I mean, ultimately our goal is to, you know, give our customers the capital that they need to, you know, to stabilize their situation and then help them rebuild their financial house. You know, that takes people paying you back, right? Being successful in our system, whether they pay in full, whether they decide that they wanna refinance into higher amounts or they graduate, we do need people to pay us back. We have no interest, you know, kind of in a customer that's, you know, kind of a one-time user, and that they're really just gonna, you know, kind of go to the delinquency bucket. We've definitely enhanced our credit model significantly at the end of last year and in the Q1. Okay. My understanding was it was, like, a partner issue, sort of, you know, some of these newer fintechs were trying to be adverse selecting OppFi and that. It wasn't really like a credit box. Is there also like a, you know, a certain borrower type, either from a FICO or other credit standard perspective that you also have tightened up on as a result of the H2 performance? Yeah. Specifically, like, if you remember from the last call, it was the neobank population, you know. Right. What we have seen is there's been a large number of customers that apply with us, roughly almost 10%, that are using these neobank programs, like Chime as an example. You know, we ran a significant test in the Q4 to try to find borrowers in that set that could be successful and pay back. Unfortunately, we determined that they were a higher risk customer, and we were not able to make them successful. One of the, like, real technical things there is in these neobanks, people get paid, you know, really two days early, three days early sometimes. That's one of the benefits of those. I think that is something that, you know, is difficult to time and figure out when funds will be available to kinda pay back the installment loans. We no longer are originating that. That has stopped in the Q4. In addition to that, though, we took the opportunity with increased demand to also, you know, just look holistically at our underwriting model and find some higher risk borrowers that we thought that with inflation coming and with the macroeconomic environment, you know, would not be a good fit for us. That was early in the Q1, like in January, so first thing in January. I feel really good. What's great now is, like, we've, you know, been able to make those tightening. We've tightened the model, but we've also been able to lower acquisition costs and continue to grow and exceed our expectations. Like, as I said before, that's like the trifecta. Yeah, no. This is actually the Q1 that originations came in above my estimate, so it's nice to see. On those lines actually, the demand environment improving. I guess my question would be, you know, how much are we back to normal? I would think we're still, you know, not quite back to where we would've been in 2019 from a consumer demand perspective. I think we're there. From what I'm seeing, significant demand. You know, like I said, once again, you know, we look at things from an ROA perspective and people have to pay you back. Like, we're happy to see a normalization of demand and exceeding, you know, expectations. I think, we're also very cognizant. We've been around for a while. We know that, you know, you still need to collect, and you still have to be, you know, have people be successful in our system to have it flow through to the P&L. We're actively, you know, enhancing our model as we go, you know, as we find new volume and higher quality volume to make sure that we're not, you know, gonna make the same mistake kind of that we did in the H2 of last year. Got it. Okay, great. It's great to hear about demand too. That should make things a lot easier with the bigger top end of the funnel coming in. On the yield, it came in lower. I wanted to ask, you know, how much of that is the personalized pricing versus the increased delinquency, so the yield, you know, potentially could either stabilize or go back up a little bit as delinquency improves? And then also, what does the higher interest rate environment mean for OppFi? Yeah. You know, Pam can take the interest rate question. I'll talk about the yield. Most of that's the delinquency, right? The net yield is being taken from the delinquency. We're still on the market-based offer approach, like being very thoughtful about it and you know, keep holding it to a percentage that we feel really comfortable with, learning from kind of last year. That's more definitely driven by kind of the stuff that flowed through in the Q1. Okay, great. As far as- Go ahead, Pam. As far as the interest rate environment, Chris, you know, our credit agreements do incorporate rising interest rates. It results in a minimal impact on our financial performance and spreads. We've already baked that into our guidance and our projections. You know, we have a resilient business model, because of the way we've structured these credit agreements. Right. I guess when you're lending at 120, you know, 50 basis points doesn't really matter that much. Along those lines though, just the overall tightening of, you know, market conditions, we've seen some other lenders, you know, have struggled to get financing, whereas a year ago, it was super easy. You know, Todd, your comments about being willing to step up and support this company and the vision here, you know, how do you sit from a funding perspective, and have you seen any of that tightness show up in some of your recent discussions with your lenders? Just so I make sure I understand the question, when you're saying funding showing up, I just wanna make sure I understand the question. Just like warehouse lines and your other sources of funding besides that. Yes. I mean, listen, I mean, we've had long-dated relationships with our financing partners, and we have very strong ones. That has not been something that we've, you know, had issue with. You know, I think, you know, if you hadn't been around for 10 years and had the history we've had and the level of success, you know, there may be some financing partners that pull back here, well, because they're worried about the inflationary environment. I think, there's gonna be a flight to quality, right? And a bifurcation between lenders that are, you know, doing this profitably and have been around and continue to grow and ones that, you know, the newer entrants that might not be as stabilized. Yeah, that's what I figured. Nice to hear. Just making sure. Thanks. Congrats on the improving this quarter. Thanks. Thank you. Thank you. Our next question is a follow-up question from the line of David Scharf with JMP Securities. Please go ahead. Your line is open. Yeah, thanks. Just really some kinda housekeeping items, you know, for Pam. You know, I guess first, is there a charge-off dollar number you can provide us with for the quarter? We have the rate, but the actual dollar number. Give me just a second. Around $50 million for the quarter. Got it. You know, just, you know, to provide, I guess, context for the comments about, you know, returning to sort of pre-pandemic loss rates. You know, the, I guess, the normalization, you're sort of working in the opposite direction from what, you know, what we've been dealing with during the last few quarters with most lenders where, you know, they're seeing losses increase to pre-pandemic levels. Because of the nuance surrounding those 2021 vintages, you're going in the other direction. I guess, Todd, I'm trying to just triangulate, you know, what kind of loss rate you're anticipating exiting the year at. You know, I would imagine, you know, these are short duration assets that's sort of embedded in your fair value calculation as well. I mean, should we be looking at sort of, you know, 2019 levels, you know, in the mid 30s? Yeah. as an exit point, or is that too aggressive? I think maybe for this year, that's a little aggressive. I mean, we're looking to, you know, get back down into the low 40s, you know, for the H2. You know, and then eventually, you know, we're gonna continue to push on that and we'd like to, you know, get back down into the high 30s, you know, for next year. You know, listen, I mean, you have a demand environment that's extremely strong because of the weakening of, you know, kind of some of the consumer health segments. We're also, you know, being cautiously optimistic there. You know, we're also realizing the macro environment is one where the reason the demand is so strong is also because of weakening of the backdrop, right? The macroeconomic backdrop for our consumers. That things are more expensive, interest rates are going up, housing's, you know, and used car market's expensive. you know, we're balancing that. Got it. Lastly, just a technical question. I'm looking once again at the fair value slide that was provided. It looks like it's slide number 13. You know, obviously a lot of inputs go into the mark to market once adopting fair value accounting. I'm trying to better understand how to put into context the default rate. Can you, Pam, maybe provide a little bit of a thumbnail education for me on how I equate that 18.5% to either the existing kinda loss rates, the future expectations. I'm trying to put that into context versus default rates that are considerably higher on an annualized basis. Sure. We, you know, we are able to refi customers. Now we do a full underwriting of that refi, but, you know, that when you think over the life of that customer, the default rate is, you know, different than just a charge-off rate. So- Is that helpful? Yeah, no. Clearly the loss rates on repeat borrowers are going to be lower. Is this 18.5, that's an annualized figure? This is Reid Brady here. I'm the head of FP&A with OppFi. That figure is the respective view of an average individual loan. When you start to blend those over a number of different repeat borrowers, that's when you start to see the deviation from what you're seeing observed on the financial statements. Okay. Got it. Helpful. Thank you very much. Thank you. There are no further questions at this moment. I'll turn it back over to Todd Schwartz. Well, thanks everyone for joining us today. Hopefully, you now have a better appreciation and understanding of our mission, strategic growth strategy, and confidence. We look forward to speaking with you again during our Q2 earnings call in August. Thank you, ladies and gentlemen. That does conclude today's call. We thank you for your participation and ask that you please disconnect your lines.