OppFi (OPFI) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:41 AM CDT 21 min read

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Date

Thursday, May 7, 2026 astatine 9:00 a.m. ET

Call participants

• Chief Executive Officer — Todd Schwartz

• Chief Financial Officer — Pamela Johnson

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Full Conference Call Transcript

Todd Schwartz: Thanks, Mike, and bully morning, everyone. Thank you for joining america today. Pam volition reappraisal our strategical investments and our Q1 fiscal show and metrics. But first, I'd similar to stock a small spot much astir OppFi's precocious announced plans to get BNCC Corp and BNC National Bank successful a currency and banal transaction valued astatine astir $130 million. OppFi's extremity has ever been to beryllium the starring integer concern platform, offering indispensable fiscal products and services to mundane Americans. This acquisition, successful summation to our erstwhile concern successful Bitty, our LOLA lending strategy and our caller enactment of recognition merchandise is simply a pivotal measurement toward fulfilling that promise.

BNC National Bank is simply a community-focused instauration with implicit $1 cardinal successful full assets and a seasoned absorption squad with decades of banking experience. They service individuals and tiny to mean businesses done a diversified acceptable of fiscal products, including idiosyncratic and commercialized loans, SBA loans and wealthiness management. We judge the BNC transaction volition not lone supply OppFi with a larger geographic footprint to grow recognition access, but volition besides unlock important synergies and operating efficiencies and capital. By uniting OppFi's exertion with BNC's nationalist charter and established deposit base, which totaled astir $1 cardinal astatine the extremity of '25, we volition beryllium positioned to supply broader entree to fiscal products for underserved populations.

Financially, this acquisition is expected to beryllium transformative. BNC brings a stable, low-cost backing illustration with implicit 80% of BNC's deposits carrying a outgo of little than 2%. We expect this to importantly heighten our equilibrium expanse flexibility and little our wide backing costs. We expect this operation to beryllium astatine slightest 25% accretive to adjusted EPS successful the archetypal twelvemonth station closing, 40% accretive successful the 2nd twelvemonth and 50% accretive successful the 3rd year. We are precise excited to enactment alongside the BNC squad to grow and digitize their halfway business.

We judge that vertically integrating with BNC volition supply our level with the strongest imaginable strategical footprint, allowing america to grow our products and user choices and recognition entree portion reducing costs for our customers. We judge this volition besides payment our concern successful Bitty by enabling america to further grow our tiny concern platform, offering aggregate products and serving further lawsuit segments. We expect to adjacent successful the 4th fourth of 2026, taxable to regulatory support and different closing conditions and look guardant to providing further updates passim the year. In summation to the acquisition of BNC, we person simplified our firm operation by transitioning from an Up-C operation to a accepted C corp ineligible structure.