Tax Refunds Squeeze OppFi Loan Volume

OppFi saw its total net originations decrease 7% in the first quarter as the company tightened credit and as larger tax refunds reduced its customers’ need for loans.

The company’s total net originations amounted to $176 million in the first quarter, down from $189 million during the same period in 2025, according to a first-quarter earnings release and an earnings presentation issued Thursday (May 7).

OppFi provides a digital finance platform that partners with banks to offer financial products and services, and it focuses on the 48 million Americans who are underbanked and don’t have access to traditional credit options, according to the presentation.

“The year-over-year decrease in originations primarily reflects a tightening of credit for certain consumer segments as we began rationalizing new loan issuance to specific segments beginning in Q2 2025,” OppFi Chief Financial Officer Pamela Johnson said during a Thursday earnings call. “Furthermore, the first quarter of 2026 had reduced demand due to higher average tax refunds, which naturally reduced the immediate need for loans.”

OppFi’s net charge-offs as a percentage of total revenue increased by 790 basis points (bps) year over year, rising from 34.6% in the first quarter of 2025 to 42.5%, according to the presentation.

Todd Schwartz, CEO, executive chairman and founder of OppFi, attributed the increase to 2025 being “an exceptional year,” making for a tough comparison, and to consumers being more cautious this year. Schwarz added that this year’s figures show a normalization and are still better than those of 2024 and 2023.

“I think customers are being a little cautious here, on the demand side and then also on repayments,” Schwarz said, citing inflationary pressures.

Looking ahead, Schwartz said OppFi expects its acquisition of BNC Bank that was announced April 29 to close in the fourth quarter, subject to regulatory approval and other closing conditions.

“We are very excited to work alongside the BNC team to expand and digitize their core business,” Schwartz said. “We believe that vertically integrating with BNC will provide our platform with the strongest possible strategic footprint, allowing us to expand our products and consumer choices and credit access while reducing costs for our customers.”