Todd Schwartz: Yeah. I mean I think when you’re launching new geographies, those are all new originations pretty much. And I think we’re being very cautious because new originations, as you know, are the riskiest and provide the highest charge-offs. So, we’re being very careful. And by the way, there is some differences. You go into a state for the first time — we’ve been doing this a long time, but no two states are alike. So, we’re just being pretty cautious. Now that’s not to say that things can work out and we’ll get some favorable upside. But I think right now, the way we’re — is very strategic and very thoughtful because, obviously, we’re very sensitive to charge-off rates. And we don’t want to be originating stuff on behalf of the bank partners that’s going to potentially have delinquency issues, right?
We don’t want to get ahead of ourselves. So, we’re just going at a pace that we feel very comfortable with. And we’ve done this quite a few times with great success, but I think could benefit us significantly in 2025. But this year, we’re forecasting it to be some growth, but we’re obviously being very cautious because of the credit on the new stuff.
Unidentified Analyst: Yeah, that makes sense. That’s helpful. Thanks, Todd. And then, the only other question I had was just on charge-offs. Pam, did I hear you right, you said Q1 current quarter will be up from a year ago? And I guess I just wanted to make sure I understood that you referenced the 2022 tightening. But didn’t you still have bad — sorry, more challenging 2022 vintages in the book that you would have been cycling through? I’m just surprised it wouldn’t be at least similar.
Todd Schwartz: Yeah. I wanted to clarify — so Pam, you can jump in as well, but I wanted to clarify that like as a dollar amount, it may be higher, but as a percentage of revenue, it’s probably going to be similar. So, I don’t — it’s a little misleading when we say it’s higher. Like I’m seeing it being roughly similar or substantially similar to as a percentage of revenue. So, the dollar amount is — really speaks to, in ’22, we did a major tightening midyear, which is not something you ever really contemplate or do. And so, we got some of that benefit with some of a subsidized in first quarter ’23, which we didn’t — we were in a very — more normalized environment. But seasonality-wise, first quarter is always going to be the low quarter of profitability for the year, and then it accelerates in second, third and fourth.
Fourth is a little — is somewhat muted compared to second and third because you start growing again because of the fourth quarter seasonality. But I think it’s — overall, the yields coming up as a percentage of revenue, as I mentioned that we don’t see that much difference from last year.
Unidentified Analyst: Okay.
Pam Johnson: We see just a minor lift — just a very minor lift in the percentage of charges as a — in the charge-offs as a percentage of revenue, very minor, so — for the first quarter.
Unidentified Analyst: Okay. That makes more sense. Thanks for clarifying.
Operator: [Operator Instructions] It seems we have no further questions at this time. And I would like to turn the floor back over to Todd Schwartz for closing comments.
Todd Schwartz: Yeah, I want to thank everyone for joining today and then the thoughtful questions. We look forward to speaking with everyone again in May when we report our first quarter results.
Operator: Thank you. This concludes today’s conference. Thank you for joining us. You may now disconnect your lines.
