Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $7.87 for the fiscal year, representing a year-over-year growth of 9% [8] - Net income for the year was $185.9 million, driven primarily by a 10% increase in non-interest income compared to the previous year [8] - The net interest margin for the quarter was 7.46%, while the adjusted net interest margin was 6.04% [23] - Return on average assets for the year was 2.46%, and return on average tangible equity was 38.75% [8][29] Business Line Data and Key Metrics Changes - In the Consumer segment, the company announced three new agreements, including partnerships with Trustly and Stripe, which are expected to enhance their product offerings [9][11] - The Commercial segment saw total loans and leases grow by 14%, with significant growth in structured finance and asset-based lending [13][26] - The company shifted more than half of its held-for-investment consumer portfolio to held-for-sale, generating a $14.3 million release of credit provision [23] Market Data and Key Metrics Changes - Deposits held on the balance sheet totaled $5.9 billion, a modest increase of $12 million year-over-year [25] - Loans and leases at September 30 were $4.7 billion, compared to $4.1 billion last year, with growth primarily from commercial finance verticals [26] - Non-performing loans increased in the quarter, primarily driven by one working capital loan, but the company believes they are well collateralized [27][29] Company Strategy and Development Direction - The company is focused on maintaining an optimized balance sheet and investing in technology to facilitate evolution and scalability [15][16] - The 2026 strategy includes enhancing the client experience and continuing to build strategic partnerships to drive financial inclusion [14][20] - The company aims to sustain its momentum in talent acquisition and culture, having received recognition as one of the best companies to work for [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2025 for future growth, maintaining guidance for 2026 earnings per diluted share of $8.25 to $8.75 [21][30] - The company anticipates a solid tax year due to recent tax law changes, although growth expectations are moderate following a strong previous year [50][52] - Management noted that the increase in non-performing loans does not correlate with the annual net charge-off rate, emphasizing their collateral management approach [29][56] Other Important Information - The company repurchased approximately 181,000 shares at an average price of $82.95 during the quarter, with full-year repurchases totaling almost 2.1 million shares [30] - The liquidity position remains strong with $2.3 billion available, higher than the previous year [30] Q&A Session Summary Question: Details on the Upstart program and its financial impact - The Upstart program is similar to other marketplace lending products, with credit indemnifications in place and a balance sheet management approach [35][36] Question: Demand for early wage access loans and impact of government shutdown - Management indicated that the government shutdown's impact on demand is not significant, but the partnership with Intuit is expected to bring substantial volume [48][49] Question: Growth expectations in the tax business due to tax law changes - Management expects a solid tax year but does not have huge growth expectations due to a strong previous year, with historic growth rates in mid-single digits [50][52] Question: Insights on non-performing loans and their management - Management clarified that non-performing loans do not correlate with past due loans and emphasized their ability to manage and resolve these loans effectively [53][56] Question: Future pace of share repurchases - The company plans to return to historic norms for share repurchases, targeting an 80% to 90% payout ratio [59]