Thank you, operator. Good morning. On today's call are Todd Schwartz, Chief Executive Officer and Executive Chairman; and Pam Johnson, Chief Financial Officer. Our Q2 2024 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 United States Securities and Exchange Commission, including the sections entitled Risk Factors. In today's remarks by management, the company will discuss certain non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to 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. We're excited to report record second quarter profitability and revenue, which substantially exceeded our expectations and enabled us to raise full-year earnings guidance by more than 20%. The strong profitability in the quarter was a result of operational and credit initiatives that drove strong loss payment and recovery performance as well as improved operating achievement on key metrics and net profit margin. We're also proud that we have successfully executed many other strategic initiatives that we previously outlined during the past several quarters. We've realized more operational efficiencies that continue to strengthen the core business and increase profitability. We've also returned value to stockholders through a special dividend and share repurchases. In addition, we strengthened the balance sheet by paying down debt and generating solid free cash flow. And we've identified adjacent verticals to expand our reach in facilitating credit access, including closing our first investment in Bitty Advance last week. Pam will review our second quarter results in detail, our earnings guidance increase for full-year 2024 and our earnings outlook for the third quarter. Before she does, I will cover three primary topics. One, highlights from the second quarter of 2024; two, a discussion of the recently announced Bitty transaction; and three, a summary of recent capital allocation initiatives provided by our balance sheet. Total revenue increased 3.1% to $126.3 million a company record for a second quarter. GAAP net income grew 53.1% to $27.7 million another OppFi record for a second quarter. And adjusted net income increased 56.2% year-over-year to $24.8 million also a company record for a second quarter. Our key highlights for the quarter compared to the prior year are a solid 6 percentage point increase in revenue yield to 134.8%, a substantial 30% increase in recoveries, a 3.7 percentage…

Thanks, Todd, and good morning, everyone. For the second quarter, total revenue increased 3.1% year-over-year to $126.3 million with a 2.4% increase in total net originations to $205.5 million and a 600 basis point improvement and total revenue yield to 134.8%. Total retained net originations decreased 3.1% to $189.3 million, since one of our bank partners now retains a larger portion of loans originated in some states. From a mix perspective, 55.6% of originations were to existing customers and 44.4% were to new customers. During the quarter, along with our bank partners, we continue to emphasize loans to existing customers, since those loans are generally less risky than to new customers. Credit performance during the second quarter supported the strategy as refinance loans to existing customers have lower delinquencies and loans to new customers. On an absolute basis, new customer originations for the quarter increased by 4.4% year-over-year, while existing customer originations increased by 0.9%. The year-over-year increase in new customer originations were the result of strategic credit and marketing initiatives intended to drive lower risk new originations. The annualized net charge off rate as a percentage of average receivables decreased by 280 basis points to 43.8% for the second quarter compared to 46.6% for the prior year quarter. And the annualized net charge off rate as a percentage of total revenue decreased by 370 basis points to 32.5% compared to 36.2% last year. Turning to expenses. Total expenses were $56.8 million or 45% of total revenue compared to $56.2 million or 45.9% of total revenue in the second quarter last year. Interest expense totaled $11 million or 8.7% of total revenue compared to $11.2 million or 9.2% of total revenue in the same period a year ago. Adjusted net income was $24.8 million compared to $15.9 million for the…

Thank you. [Operator Instructions]. We will take our first question from Mike Grondahl with Northland. Please go ahead. Your line is open.

Hey, guys. This is Luke [ph] on for Mike. Congrats on the nice quarter. Just want to start here with yields being up about 6% year-over-year. I was just wondering how much of this was due to mix versus pricing?

Yes. Good question. I mean, a lot of it has to do credit performance, right. We're getting less dropping out of accrual and more yield from paying customers. We had a very, very strong payments and recoveries in the second quarter. A lot of the initiatives that we launched in the second half of '22 are now in full operation. We also had sunsetted some of the pricing testing we were doing last year, which also increased yield. But we were happy to see strong repayment rates and strong recoveries that yielded higher yield for the quarter.

Got it. And then for the low end consumer payment and borrowing trends, does the lower credit losses kind of mean that you guys can step on the growth pedal?

Yes, I think I mean that certainly in the second half, we're starting our confidence level and the stability of our credit with the launch of our new underwriting model. We feel confident that growth is out there and we're starting to roll out our initiatives for growth in the second half. We're also feeling more comfortable with credit. Seasonally, the second half of the year, the credit performs better than kind of some of the vintages in the first half. And so, our confidence level in our growth initiatives are starting to deploy. So we think that there's some growth out there.

Got it. And then just last one here. Any updates on the competitive environment or anything that's changed since last quarter?

Yes. I mean, I think there's a lot of noise going on with the credit card late fees with the Buy Now Pay Later with earn wage access. We're just focused on our core customer. We're focused on driving value to our customer and providing the best available service at the highest NPS. And I think we continue to watch some of the other options in the market and some of the competition. But I feel really good about where we're operating our operating metrics and our prospects for growth.

Got it. That's helpful. Thank you guys for taking the questions and congrats again on the quarter.

Thank you.

And we'll take our next question from Dave Storms with Stonegate. Please go ahead. Your line is open.

Good morning and thank you for taking my questions. Just hoping we could start with the Bitty transaction and just high level, if that if you see any synergies in the near or short term that you're especially excited to take advantage of?

Yes. I mean, we just closed it last week, but I've gotten to know Craig pretty well. I think Craig is a talented operator and obviously someone who has a lot of experience in the small business space. We think the collaboration between our two companies is going to yield great results. To remind everyone, Craig has a business that currently is an origination. So, he's earning his income from origination and servicing. We think that has a lot of optionality, he also has a really good digital platform. We believe in this digitization of small business and think there's a lot of growth there. I think when you take a lot of the things that we do well and the things that Craig's doing well, there's a lot of complementary skill sets. And I think it's going to yield great results. I think we've done a lot of research on the SMB market and we feel that there is supply demand imbalance. And we feel that there's ability to not only take market share, but as the addressable market continues to go online to search for working capital options, that there potentially is even growth in the total addressable market. So we're excited. We're going to be, we think there's some accretion to earnings that we mentioned in this year and then for the future. But we feel really good about taking our time there. We've kind of started to talk about it for over a year and a half. And so I think we're just happy that we've fulfilled on our and delivered on our promise that we're going to create -- OppFi is going to create a brand that has best suite of best-in-class digital financial service products that address supply demand imbalance and credit access. And we feel like we're on our way. We have all the ingredients to be able to do that and will yield great results for us.

That's very helpful. Thank you. And then, it sounds like you were pretty aggressive with acquiring new customers. Just curious as to what form that took? Were there any concessions? Did acquisition costs go up? And kind of what does that look like with that new vintage of new customers?

Yes, it's actually no. Our acquisition cost year-over-year is down 3%. So we're being very disciplined. And to remind everyone, the second quarter vintage typically has had some of the highest charge-offs of the year on the other side of tax refund and payment season. But we are liking what we're seeing, our funnel is robust and that we think that we can still maintain that our CPF and find growth here in the second half. We think that there's -- the market is starting to come in our favor, and we think that we're well positioned to take advantage of it.

That's perfect. Thank you. And then just one more, if I could from a macro level. We're seeing unemployment tick up slightly, but there's almost certainty that the federal cut rates at least once this year. How do you factor that into underwriting going forward through the back half of the year?

Yes. I mean, I think it's a good question. I think for us inflation is probably the most painful for our customer. We experienced that in 2022 and had to and handled it. I think that unemployment is another concern, but I think there's also benefit when the Fed lowers rates. We'll be paying less interest costs, which is obviously a benefit to our P&L. But it's something we're going to watch and obviously making sure that people are employed. That's something that in our underwriting, we will be kind of watching weekly and making sure that we're not seeing large spikes in unemployment that could cause blips in our delinquency rates or credit.

Understood. That's very helpful. Thank you for taking my questions, and good luck in the third quarter.

Thank you.

[Operator Instructions]. And there are no further questions on the line at this time. So I'll turn the program to Todd Schwartz, Chief Executive Officer for any additional or closing remarks.

Thanks everyone for joining us today, and we look forward to reporting our Q3 results in November. Have a great day.

This does conclude today's program. Thank you for your participation and you may now disconnect.