As I dug into the model and interviewed former colleagues of yours, I realized there was a banking relationship that caught my attention. I started exploring it further, and that's why I'm here—to understand how this relationship unfolds and what it means for OppFi. I believe you're the best person for me to talk to at this stage.

When you look at these companies, the key driver of profitability is the ability to underwrite and stay disciplined. Chris McKay, who runs credit, has 20 years of experience. He was part of the founding team at OppFi and continues to evolve the model. If you look at loss rates as a percentage of average receivables since 2021, they have come down significantly. This is because they have skimmed and eliminated the lowest creditworthy customers, moving up the funnel.

Let's talk a bit about the banking partnerships at OppFi. A good place to start would be for you to explain why you started bank partnerships instead of originating everything on your own.

So essentially, what happens is that the banks that originate the loans, they actually hold those loans out of their true lender. That's a very important point. And so they control, effectively, the loan agreements. And so OppFi facilitates the loans. They don't really originate the loan. They facilitate through the banks. And I think, when I had left, it was almost about 95% of the loans were facilitated by bank partners. So the banks would originate, they'd hold for a few days, then OppFi would buy an interest in those loans. But the loan continued to remain with the bank as the true lender. So they own the underwriting, they own the marketing. We service the customer. But again the servicing documents and all of that is governed by the banks.

So you become the servicer, and whatever payment I make to OppFi, you take your pro rata percentage. But if you're only the servicer of the loan and not the true lender, why do these loans appear on your books?

They appear as receivables because you still hold an economic interest in the loan. They are not loan receivables from an accounting perspective, but they are receivables because of the economic interest. There are probably disclosures in the 10-Q or 10-K about the percentage facilitated by banks and the percentage originated by OppFi. The key point is that by the Utah bank originating the loan, they are the lender of record, and the usury rates of Utah as an ILC govern the rate caps. This is the whole premise for doing this, and most players in this industry follow this model.