Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $7.87 for the year, representing a year-over-year growth of 9% [5] - Net income for the year was $185.9 million, driven primarily by a 10% increase in non-interest income compared to last year [5] - The full-year net interest margin was 7.34%, and the adjusted net interest margin was 5.92% [5] - Return on average assets for the year was 2.46%, and return on average tangible equity was 38.75% [5][22] Business Line Data and Key Metrics Changes - In the consumer segment, the company announced three new agreements, including partnerships with Trustly and Stripe, enhancing their product offerings [6] - In credit solutions, the company partnered with Upstart to offer personal loans, aligning with their goal of financial inclusion [7] - The commercial finance segment saw total loans and leases grow by 14%, with significant improvements in origination dollars per FTE and a decrease in days to fund [8] Market Data and Key Metrics Changes - Deposits held on the company's balance sheet totaled $5.9 billion, a modest increase of $12 million year-over-year [18] - Loans and leases at September 30 were $4.7 billion, compared to $4.1 billion last year, with growth primarily from commercial finance verticals [19] - Non-performing loans increased in the quarter, but the company believes they are well collateralized and manageable [21] Company Strategy and Development Direction - The company is focused on maintaining an optimized balance sheet and investing in technology to facilitate growth and scalability [9][10] - The 2026 strategy emphasizes the importance of people and culture, with a commitment to building a talent pipeline and enhancing collaboration [11] - The company aims to mature its risk and compliance framework to support partner success and ensure regulatory adherence [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2025 for future growth, despite challenges faced [4] - The company reiterated its fiscal year 2026 guidance for earnings per diluted share of $8.25 to $8.75, assuming no rate cuts and an effective tax rate of 18% to 22% [23] - Management acknowledged the potential impact of tax code changes on consumer behavior in the tax preparation market [8] Other Important Information - The company repurchased approximately 181,000 shares at an average price of $82.95 during the quarter, bringing full-year repurchases to almost 2.1 million shares [22] - The liquidity position remains strong with $2.3 billion available, higher than the previous year [22] 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 short hold period of 30 days or less [28][30] Question: Demand for early wage access loans and impact of government shutdown - Management does not expect significant impact from the government shutdown, but anticipates increased volume from the Claire's contract with Intuit [39] 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 prior year [40][41] Question: Non-performing loans and their correlation with past-due loans - Management clarified that non-performing loans do not correlate with past-due loans, as they manage collateral effectively [42][43] Question: Future pace of share repurchases - The buyback ratio is expected to return to historic norms, targeting an 80% to 90% payout ratio [47]

Financial Data and Key Metrics Changes - The company reported earnings per diluted share of $7.87 for the year, representing a year-over-year growth of 9% [5] - Net income for the year was $185.9 million, driven primarily by a 10% increase in non-interest income compared to last year [5] - The full-year net interest margin and adjusted net interest margin were expanded to 7.34% and 5.92% respectively [5] - Return on average assets for the year was 2.46% and return on average tangible equity was 38.75% [5][22] Business Line Data and Key Metrics Changes - In the consumer segment, the company announced three new agreements, including partnerships with Trustly and Stripe, enhancing their product offerings [6] - In credit solutions, the company partnered with Upstart to offer personal loans, aligning with their goal of financial inclusion [7] - The commercial finance segment saw total loans and leases grow by 14%, with significant improvements in origination dollars per FTE and reduced days to fund [8] Market Data and Key Metrics Changes - Deposits held on the company's balance sheet totaled $5.9 billion, a modest increase of $12 million year-over-year [18] - Loans and leases at September 30th were $4.7 billion compared to $4.1 billion last year, with growth primarily from commercial finance verticals [19] - Non-performing loans increased in the quarter, primarily driven by one working capital loan, but the company believes they are well collateralized [21] Company Strategy and Development Direction - The company is focused on maintaining an optimized balance sheet and investing in technology to facilitate evolution and scalability [9][10] - The 2026 strategy includes enhancing the client experience and continuing to evaluate new opportunities for partnerships [14] - The company aims to sustain momentum in its culture and talent acquisition efforts, emphasizing remote working as a recruitment tool [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the groundwork laid in 2025 for future growth, despite challenges faced [4] - The company reiterated its fiscal year 2026 guidance for earnings per diluted share of $8.25-$8.75, assuming no rate cuts and an effective tax rate of 18%-22% [23] - Management acknowledged the potential impact of tax code changes on consumer behavior in the tax preparation market [8] Other Important Information - The company repurchased approximately 181,000 shares at an average price of $82.95 during the quarter, bringing full-year repurchases to almost 2.1 million shares [22] - The sale of the majority of the held-for-investment consumer portfolio is expected to put downward pressure on pre-tax income and net interest margin in 2026 [23] Q&A Session Summary Question: Details on the Upstart program and its financial impact - Management confirmed that the Upstart program is similar to other marketplace lending products, with credit indemnifications in place [28] Question: Duration of loans on the balance sheet and exclusivity of the Upstart partnership - Loans are typically held for 30 days or less, and the partnership with Upstart is not exclusive [30][31] Question: Demand for early wage access loans and impact of government shutdown - Management indicated that the impact of the government shutdown has not yet been seen, but expects significant volume from the Claire's contract with Intuit [39] Question: Growth expectations for the tax business in fiscal year 2026 - Management expects solid growth in the tax business, influenced by recent tax law changes, but does not have huge growth expectations due to a strong prior year [40][41] Question: Insights on non-performing loans and their resolution - Management explained that non-performing loans can spike without warning but emphasized their ability to manage collateral effectively [42][44] Question: Future pace of share repurchases - Management indicated that the buyback ratio will return to historic norms, targeting an 80%-90% payout ratio [47]