First Commonwealth (NYSE:FCF) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
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Summary
First Commonwealth reported a net income of $37.5 million, translating to $0.37 per share, below the consensus earnings estimate of $0.40.
Net interest income decreased by $4.2 million due to the sale of $210 million in Eastern Pennsylvania commercial loans and heightened loan payoffs.
The net interest margin fell to 3.92%, but positive replacement yields and expiring swaps suggest potential for future expansion.
Deposits grew by 6.3% annualized, with successful money market promotions leading to new checking accounts.
Non-interest expenses increased by $1.2 million due to higher salaries and incentives, as well as prepayment fees for debt repurchase.
The efficiency ratio increased to 55.4%, with a commitment to slow down expense growth.
Provision for loan losses rose by $3.7 million, influenced by specific reserves for larger credits, but overall credit quality remains stable.
The balance sheet strengthened with increased tangible book value and reduced borrowings, while the loan-to-deposit ratio decreased to 91%.
Key strategic initiatives include leveraging fintech and AI to improve customer experience and internal efficiency.
The company plans continued share repurchases and announced an 11th consecutive annual dividend increase.
Full Transcript
OPERATOR
Ladies and gentlemen, thank you for standing by. My name is Abby and I'll be your conference operator today. At this time, I would like to welcome everyone to the First Commonwealth Financial Corporation first quarter 2026 earnings release conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. And I would now like to turn the conference over to Ryan Thomas, Vice President of Finance and Investor Relations. You may begin.
Ryan Thomas (Vice President of Finance and Investor Relations)
Thanks, Abby, and good afternoon, everyone. Thank you for joining us today to discuss First Commonwealth Financial Corporation's first quarter financial results. Participating on today's call, we will be Mike Price, President and CEO, Jim Reschke, Chief Financial Officer, Brian Sohocki, Chief Credit officer and Mike McKeown, chief lending officer. As a reminder, a copy of yesterday's earnings release can be accessed by logging on to FCBanking.com and selecting the investor relations link at the top of the page. We have also included a slide presentation on our investor relations website with supplemental information that will be referenced during today's call. Before we begin, I need to caution listeners that this call will contain forward looking statements. Please refer to our forward looking statements disclaimer on page three of the slide presentation for a description of risks and uncertainties that could cause actual results to differ materially from those reflected in the forward looking statements. Today's call will also include non GAAP financial measures. Non GAAP financial measures should be viewed in addition to and not as an alternative for our reported results prepared in accordance with gaap. A reconciliation of these measures can be found in the appendix of today's slide presentation. With that, I will turn the call over to Mike.
Mike Price (President and CEO)
Thank you, Ryan. Good afternoon, everyone. Several headlines for the first quarter of 2026 follow net income of 37.5 million resulted in 37 cents of earnings per share as compared to our consensus earning estimate of $0.40. Net interest income was down some $4.2 million for the quarter to 109.3 million as we sold $210 million of Eastern Pennsylvania commercial loans. And loan balances fell another 74.2 million due to heightened payoffs. Our commercial loan repayments swelled to $630 million in the first quarter, up some $150 million over the first quarter of 2025. In the first quarter we had 18 successful Commercial Real Estate projects. They were refinanced or sold representing a payoff of approximately $240 million in loan outstandings. The net interest margin or Net Interest Margin fell as expected to 3.92%. Among other items, positive replacement yields on new fixed rate loans in the first quarter were 54 basis points higher and coupled with $150 million swaps rolling off in the second quarter, this should provide the impetus for further Net Interest Margin expansion. Deposits grew 6.3% end to end annualized in the first quarter and our money market promotions have resulted in new consumer checking accounts. Heretofore we have been reticent to aggressively drop rates, but given the elevated loan payoffs and a markedly lower loan to deposit ratio, we are well positioned to test lower deposit rates in the next several quarters. Non interest expense expenses were up $1.2 million to 75.5 million DOL in the quarter as salaries and incentives increased alongside $500,000 of prepayment fees for the repurchase of long term debt. Our efficiency ratio climbed to 55.4% and we intend to slow down our expense growth rate. The provision for loan losses increased $3.7 million to $10.7 million on a linked quarter basis as we had $9.6 million in specific reserves for three larger credits, one of which was from Eastern Pennsylvania. Our non performing loans or NPLs to loans remained stubbornly high at 0.98% in the first quarter. Specifically, three previously discussed relationships totaling $20.5 million moved to non performing status during the quarter with $9.6 million of associated specific reserves. These downgrades offset otherwise positive asset resolution during the quarter. And please recall that of our 92.3 million in NPLs, 28.1 million or 30.4% is guaranteed by the SBA. The balance sheet and liquidity continued to strengthen in the first quarter as we paid off virtually all borrowings, lowered our loan to deposit ratio to 91% and grew tangible book value per share by 4.3% while at the same time repurchasing our stock. Other notable fourth first quarter items include our center bank acquisition has exceeded financial expectations and helped lead Cincinnati, the company leading loan and deposit growth in the second quarter. Residential Mortgage had a strong first quarter with both loan volumes and gain on sale income. The small business and business banking segment volumes were brisk as we have added new bankers and enhanced credit processes. Also, our retail bank had the highest net promoter and customer satisfaction scores since we began tracking. As we think about the ensuing quarters and future, it will be important that we focus on the basics, namely Live Our Mission Grow the Bank, Get Better. As we grow the bank, we must do so steadily and ensure our credit costs converge and surpass peers. Getting better will necessitate new approaches and technologies to both make it easier for customers to do business with First Commonwealth while simplifying internal processes. Given our adoption of fintech over the years and our current AI usage, we have important tools to continue to evolve our company. Simultaneously, we must become more efficient as we scale the bank. Our first strategic initiative, Live our Mission to improve the financial lives of our neighbors and businesses, remains the cornerstone of our brand and is what sets us apart as a community bank. With that, I'll turn it over to Jim Resky, our cfo.
Jim Reschke
Thanks Mike. Mike's already provided an overview of financial results, so I'll drill down a bit on spread income and the margin. Spread. income was down from last quarter by $4.2 million, but approximately $2.6 million of this decline can be attributed to having fewer days in a quarter. The remainder stems from the lower levels of earning assets and the impact of last quarter's Fed rate cuts on the variable rate loan portfolio. The Fed cuts resulted in a nine basis points contraction in the yield on earning assets, somewhat offset by a 5 basis points decrease in the cost of funds. The decline in earning assets is largely the result of the disposition of $210 million in loans that were moved to held for sale at the end of the fourth quarter. This quarter's net interest margin, or Net Interest Margin of 3.92% is in line with our previous guidance, while it is down from last quarter's 3.98%. The Net Interest Margin in the fourth quarter benefited from about 3 basis pointss from several unique items that we talked about last quarter, including the recognition of accrued interest from the payoff of several loans that had previously been placed on non accrual status. Looking ahead, the NIM should benefit from fewer than expected rate cuts that keep the variable rate loans from repricing downward while continuing to allow the fixed rate loans and securities to reprice upward. And the expiration of $150 million of macro swaps on May 1 this Friday is even more valuable in a higher rate environment as it will allow those loans to float to higher rates than expected. Based on our new one cut base case, we are revising our previous NIM guidance upwards slightly, about 3 to 5 basis pointss higher each quarter than before, drifting upward to the low 4% range by the fourth quarter of this year. First quarter non interest expense or NIE increased by $1.2 million from last quarter, but first quarter NIE included about $1.3 million in expense for finalizing incentive payments related to prior year volumes and performance. Similar to the first quarter last year, along with the $500,000 FHRV prepayment penalty that Mike mentioned, we expect NIE per quarter to hover in the $74 to $76 million range this year. Fee income is little change from last quarter first quarter fee income included approximately $435,000 from the payoff of several loans that had been included in the held for sale portfolio at year end when they paid off at par. The difference between PAR and the mark was recognized as fee income, Wealth, Mortgage and SBA are all up significantly from the same quarter a year ago. Fee income should range from 24 to 25 million dollars per quarter this year. We repurchased approximately 22.7 million dollars in stock last quarter at a weighted average price of $17.67. We have $25 million remaining in repurchase authorization, not the $18.4 million figure that was in the earnings release. We announced a 2 cent increase in the dividend yesterday, marking the 11th straight year of dividend increases. Combined with the dividend, we returned nearly 100% of internal capital generation to our shareholders last quarter, and yet tangible book value per share grew from $11.22 to to $11.34. We intend to continue share repurchase activity. In the second quarter. Our CET1 ratio improved from 12.1 to 12.5%. Our TCE ratio was unchanged to 9.7% and with that we'll take any questions you may have.
OPERATOR
Thank you. We'll now begin the question and answer session. If you dialed in and would like to ask a question, please press Star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press Star one a second time. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, it is Star one to join the queue and our first question comes from the line of Daniel Tamayo with Raymond James. Your line is open.
Daniel Tamayo (Equity Analyst)
Thank you. Good afternoon to everyone. Maybe starting just on the increase in the charge offs. I appreciate the comments on the loans that were paid down or sold in the second quarter early on. Maybe just a clarification on that. First of all, were there any charge offs associated with those loans that were sold or paid off. And then Jim, I was just wondering if you had any thoughts on provision or net charge offs for the rest of the year. Thanks,
Brian Sohocki (Chief Credit Officer)
Brian Sahake. Yeah, Daniel, I can jump in the charge offs from the portfolio. We recorded 2.8 million during the fourth quarter when we moved them to held for sale. And then there was approximately 400,000 that had paid off at par that were reversed and run through the income statement in the first quarter. As you look at the other charge off activity, you know, my comment would be that we remained above our long term target, but we did improve sequentially and the level continues to be driven by a limited number of isolated credits. We're not seeing any indicators of systematic stress across the portfolio. Overall, the performance has been remaining consistent outside of those isolated numbers. And I think your last part of the question was just related to the activity in the press release Post quarter end. There was two names that were in non performing at the end of the first quarter. One, we ultimately exited via a loan sale and incurred just a charge off beyond our reserved amount of just under $150,000. The second was an exit full payoff that far.
Daniel Tamayo (Equity Analyst)
Okay, very helpful and I appreciate that detail on the second quarter. So I think what you're saying is correct me if I'm wrong. If I'm wrong. You're expecting, I guess you said they were a little bit above your long term target in the first quarter. So that should drift down towards that range kind of as the year plays out. Is there like a, a ramp down you think still from here or we're moving pretty quickly back into that range.
Brian Sohocki (Chief Credit Officer)
Yeah, we'll continue to work through the resolution. Specifically, as you saw in the release, the one item which was moved to NPL during the first quarter is a second quarter charge off. So more of a slow ramp down to the historical level as we resolve those credits that move into NPL.
Daniel Tamayo (Equity Analyst)
Okay, great. That's helpful. Thanks. And then, and then Jim, maybe, or, or Mike or anyone on, on the loan growth. Just, just curious what paydown activity look like in the, in the first quarter. Kind of how you're forecasting that to, to, to, to trend down for the rest of the year and, and how that offsets against origination activity.
Mike Price (President and CEO)
Yeah, just in the, in the. We compared the first quarter to the first quarter of last year and we had $10 million more of production well over 900 million. In the first quarter of 2026 our payoff activity was heightened. It went from about 480 to about 630, it was up 150 million. And so we felt that and, and we felt that on top of the loan sale. And last year we grew modestly, we grew about 90, 95 million. In the first quarter it was about four and a half, maybe 4.4%. So notwithstanding those payoffs, our activity was steady. It was good, it was heloc. Heloan was a bright spot, I would say small business, business banking and still trying to get the commercial real estate construction portfolio to overtake the payoffs and some of the originations there. So we just, we feel the year sets up pretty well notwithstanding, you know, $150 million more payoffs from a year ago. And I would say that in the ensuing quarters since the first quarter of last year, the payoffs went up every single quarter. We feel with rates maybe cresting here, perhaps that and moving up that that activity has slowed somewhat here in the last 30 days or so. Or maybe it's coming at a natural end because we don't have that many big names left to pay off. So that's the calculus and we do feel good about the level of activity and that we can hit the guidance that we've given historically of in a mid single loan growth.
OPERATOR
Thanks for all that color, Mike. Appreciate it. And our next question comes from the line of Charlie Driscoll with kbw. Your line is open.
Charlie Driscoll (Equity Analyst)
Hi guys, thanks for the question. This is Charlie on for Kelly Mata. Just just one clarifying question on the margin. Appreciate the comments on the 3 to 5 bips of expansion from here, but just drilling down on that exit margin, do you expect to kind of exit the year near 4% or you know, a bit above that level? If you could kind of help us with how you're thinking about some of the pieces here. What could cause you to kind of exceed that exit rate, reach the high end or low end of that guide?
Jim Reschke
Yeah, thanks for the question and the opportunity to clarify. We think the fourth quarter should be lower 4% but I'm really glad you asked because there's variability. The big variability, especially if you look over the last few years has been deposit behavior. I think we're in a really good spot now. The loan to deposit ratio now 90.9 so down. So we really have some room here to bring down deposits. Just because the balance sheet is so liquid gives us just a little more freedom to be a little more aggressive on deposit rates and bring that down. So that's kind of the, that's the big factor, the big variable factor in our Net Interest Margin forecast. But yeah, all else being equal, we expect to end the year a little over 4%.
Mike Price (President and CEO)
I would just add that in bringing down the cost we will balance that with. We hang promos and we have nice. We've gathered a lot of deposits, core deposits as well as interest bearing and it's been a terrific way to gain new checking accounts and the team has done a nice job. So it's more of a balance than you think. So that we'll pick our spots as we decrease rates probably perhaps a little bit more on CDs. And by the way, we're going to test this and we're going to move the steering wheel but we're just going to be cautious because household growth, the granularity of our depository is tied to. When we get a customer, we're going to have to lend to them. It's just a good thing when we get a new consumer customer. And our depository is about 50, 50 consumer which makes it very granular. And we sail through events like Silicon Valley three years ago and you can see our string of. We grow deposits pretty steadily over the last three years or so.
Charlie Driscoll (Equity Analyst)
Great. I appreciate the commentary there, I guess kind of on that deposit gathering activity. You saw, you know, a nice, a nice quarter here. But do you expect that to, you know, keep up with the mid-single-digit loan growth you guys are getting? Just, just kind of trying to get the rights out of the balance sheet here, seeing if keeping up with the loan. Yeah, long term. Yes, maybe shorter term. We're, we're going to test, test some things and, and just we'll test some things. We have a good team. Great, thank you. And then last one for me, just on expenses, wondering if this is a good core run rate to build off of in 2026. Maybe you could provide some color on what sort of investments you're making and where you're exercising more discipline in the expense front. Thank you.
Jim Reschke
I think the guidance we gave, you know, we talked about NIE hovering the 74 to $76 million range. You know, I wish I could actually give you a tighter range. I know it's a $2 million range, but it does just vary a little bit quarter to quarter. We just committed to keeping expenses under control.
Mike Price (President and CEO)
Mike, I would feel no, we've been good stewards of expenses over the years and you know, we like efficiency ratios that are below 55% and we just need to keep. We've been pretty good at operating leverage through the years. And just as we scale the bank we have to stay true to that culture of. At the same time we're getting stretched on expenses and talent. We have to find the right mix and really have lots of good discussion, just like other management teams.
Charlie Driscoll (Equity Analyst)
Great. Thanks for answering my questions. I'll step back.
OPERATOR
And our next question comes from the line of Carl Shepard with rbc. Your line is open.
Carl Shepard
Hey, good afternoon, guys. Can you guys hear me? Yep. Yes, please. Okay, great. Jim, just one quick one. On the NIM guidance, I think you said you moved from two cuts to one cut. Is that later in the year or is it earlier and might have a little bit of impact?
Jim Reschke
I, I think it's a little later in the year, like late summer. I can verify that. It's an interesting dynamic. I'm kind of glad you, again, glad you asked. Because if there is one cut, it kind of if, if the rate in the environment is down a little bit, it gives us an opportunity to be, to take deposit costs down even further. Generally we say we're not sensitive balance sheet, but if the other activity is on the deposit side, if it's a falling rate environment because there's a little more opportunity on the deposit side than it costs us. And the variable downdraft in the variable rate loan portfolio. So when we look ahead on one cut versus the question you asked, I'm just kind of thinking about it as you asked the question, one cut versus 0 cuts. The delta test isn't all that big. The, oh, the, the one cut in our base case forecast is as I said, late summer, about September actually. So hope that that helps a little bit. The reason I mentioned in my prepared remarks is that the base case last fall near the budget for us was based on a purchased vendor that most banks use. And that was 4 cuts for the year. It's quite dramatically different now.
Carl Shepard
Okay, that's helpful. And then I wanted to pick up a little bit on the credit discussion. And I know the provision will kind of be an output of what's sitting there at 6:30, but if I put all your comments together and the specific reserves for the credit that was resolved after quarter end, it seems like there's room for the provision maybe to drift back down a little bit. I think you're kind of signaling with no stress in the portfolio a stable reserve. Is that a fair way for us to think about this? Okay, great. Those are the two for me. Thank you.
OPERATOR
And our next question comes from the line of Manuel Navas with Piper Sandler. Your line is open.
Manuel Navas (Equity Analyst)
Hey, good afternoon. Can you speak a little bit more on the buyback pace and is it impacted at all with any potential shifts in loan growth? I mean, I know you reiterated the guide, but if loan growth comes in at different parts of the range, would you buy back more? Is that part of the calculus?
Jim Reschke
Great question, Manuel. It's not really driven, it's not leveraged by the loan growth. We have plenty of capital to capitalize for long growth. In other words, I don't think that if we grew gangbusters, we'd be pushing the capital ratios into any kind of place where we'd be concerned. It's really more driven by just a dollar amount of capital generation. We're kind of operating under Fed guidance that says you're allowed to buy back, return to shareholders between the dividend and then the buyback, up to the dollar amount of capital generation in any given quarter, but not beyond that. That's kind of what we've been operating on. There are, if you, there are peers that do go beyond that, but that requires a full blown application for the Fed. We just haven't done that. So that's what we're doing. So last quarter, last quarter, there's a chart in the supplement that we published on the investor relations portion of our website, the PowerPoint, that shows a return about 95%, close to 100%. I think we came within $1.7 million. So now if it's not so much loan growth. It's a fair question because we always say the primary use of capital is organic loan growth and capitalizing as we go. So that's, I can see where you're coming from, but that's really driven by just the dollar amount of capital generation. That's the cap.
Manuel Navas (Equity Analyst)
Okay. Is just shifting over loan growth for a moment. Any shift to the mix or just because the production is pretty solid, you're going to keep the same mix. And one specific. Could you comment a little bit on the equipment finance growth is are we approaching a cap or does that still have a year or so left to run? That's. That was kind of the nice positive area of growth for the quarter.
Mike Price (President and CEO)
Yeah, the mix is probably a percent more commercial, probably 61, 39 now commercial consumer mix. So that's changed. And obviously to move it a percent or so even in two quarters takes a lot more production on one side than the other. So we are becoming more commercial. We actually talked about that this morning because we love the consumer households and the deposits and the granularity of that. And we just want to have good Balance there and then. So great question. And on the equipment finance side, I think there's room to run there for another year or so. And knock on wood, it's really met our credit projections. And that portfolio mature here, begin to mature here in the next year or so and we'll see how those credit costs come through and how that matures. But we feel good about that business. The other thing the team has been very nimble and creative is we had a goal to kind of, you know, once we got that up and running, to really switch that to an in market true leasing business. And they're already pivoting there in a meaningful way that will result in a good portion of that business being in market leases to our commercial clients. And so it's just a talented team and we are, we're just delighted with how that has unfolded. So hopeful. That's helpful. Manuel,
Manuel Navas (Equity Analyst)
that's great. Thank you. I appreciate. I'll step back into the queue.
OPERATOR
As a reminder, it is Star One if you would like to ask a question. And our next question comes from the line of Matthew Breese with Stevens. Your line is open.
Matthew Breese (Equity Analyst)
Hey, good afternoon. Hey, Matt, a few questions. First one is towards the back of your presentation. Looks like you have 35 million new maturing office next quarter. You have 17 million in the third quarter and 13 million in the fourth quarter. Given we're not totally out of the woods on office yet, just curious, have you looked at the maturities and any sort of credit worries as we come upon those dates?
Mike Price (President and CEO)
Yeah, we've looked at it going out about through the end of next year actually. Brian, do you want to comment on that?
Brian Sohocki (Chief Credit Officer)
Yeah, I'll just jump in and you know, I guess, you know, we continue to actively manage the portfolio. We have seen exposures continue to trend lower. And you know, my comment on the maturities is, you know, part of that is also, you know, managed purposefully through, you know, shortening maturities and extending into a certain period in order to facilitate an exit or a refinance or sale of the property. One of our biggest successes in 2025 was just that, where we had a large reduction in the second half of the year through an asset sale as a result of that. So, you know, we evaluate maturity by maturity throughout the whole portfolio and focused over the next 24 months and you know, are actively pursuing, you know, exits that, you know, makes sense for the portfolio.
Matthew Breese (Equity Analyst)
Is that helpful? Yes. Jim, it looks like the cash position is up a little bit. You know, maybe excess of 100, 150 million it's kind of the near term deployment for that.
Jim Reschke
Well, a couple things. The cash position is up in part because of that, the execution of the sale, the loans that were inhaled for sale. So we see that cash we pay down. And Mike mentioned this could pay down some fhle borrowing, bought some securities and still have a. With a loan book shrinking a little bit in the first quarter, we've had that excess cash position. So we can foresee the pattern of some of our depositors, some of our large deposits that are in the public funds category. A lot of those come out in the second quarter. So we'll make sure we have cash around for that so we don't invest that money and find ourselves having to borrow money because we have those outflows. So knowing that those are coming, we're holding some cash for that and holding the cash for excess loan growth. But to the extent it doesn't materialize, we definitely would be buying more securities. We're buying now and expand securities portfolio a little bit. That's kind of actually one of the issues at the moment.
Matthew Breese (Equity Analyst)
Okay. And then I, I did want to touch on, you know, some of the categories outside of equipment finance. So you know, traditional CNI X equipment has been down for three quarters. It looks like commercial real estate's been down for two quarters. And you know, we talked about prepays and payoffs and things like that. But you know, for, for the larger segments, cni, commercial real estate. When you start to. When do you think we will start to see some net growth there? Is that a 2Q event?
Mike Price (President and CEO)
Yeah, it'll be definitely this year we've added some business bankers we're seeing and that's really more on the small end, more granular end. The payoffs are happening on a little larger credits. And so that's kind of a tough swap because you got to do four loans for everyone that's paying off. I like that long term. But the team, we've added a lot of business bankers over the last two years. They seem very productive. We actually in the CNI segment on the smaller end, small business and business banking actually grew that in the first quarter. 30 or 40 million and really haven't done that on that bottom 6, 7, $800 million of that space. So that's good news and we feel good about that. And that's obviously granular and comes with more depository. But we still have had some payment headwinds, no doubt.
Matthew Breese (Equity Analyst)
I do think we can grow. We will grow it. Okay. Last one is just, you know, between Ohio And Pennsylvania, there's just a ton of activity between chip manufacturing, AI data centers and power plant build out stuff. I was hoping for your comments around all that. And then you know, how much of it can you say is had or potentially could have an impact on the pipeline or loan growth to date?
Mike Price (President and CEO)
You know, it might already be having an impact. I mean we have a, we have a really probably our deepest pipeline after Cincinnati had a great first quarter. Our deepest pipeline is probably in our $4.5 billion community pa market particularly on the small business up through the business banking segment. And I think that I was with a contractor for dinner on Monday night and who's doing a lot of power generation, gas powered one in Homer City. It's having a real impact and it's good to see and but I also think that I mean Ohio has really grown the last few years and helped really let out in growth. So I expect that to continue. That's everything together and community PA always generated a lot of deposits and now it looks like they're setting up for a good year on heloc, HELO and small business and business banking. So that's. I don't know. It's. We like the business, it's fun and we feel like we make a difference and it looks good.
Matthew Breese (Equity Analyst)
I'll leave it there. Thank you for all that.
OPERATOR
And our next question comes from the line of Daniel Cardenas with Breen Capital. Your line is open.
Daniel Cardenas (Equity Analyst)
Good afternoon guys. Good afternoon. Just a couple of questions. Have you noticed any change in customer sentiment? Just given the current economic environment right
Mike Price (President and CEO)
now, it might be too early to tell. I did notice that our interchange income on debit card was off a couple hundred thousand dollars with the holidays in the fourth quarter too. Yeah, but I an activity and swipes even. But I. That's probably the first quarter too. But yeah, we've been, and I think we've shared this with you Dan and others. We've been watching our consumer books like a hawk. Our heloc, Heloan, our mortgage and our indirect auto and we're just, we're seeing some pretty solid performance. So it kind of belies. Gas that I just filled up was in Pennsylvania. It's high at 447 a gallon. So we're just, we're watching that closely.
Brian Sohocki (Chief Credit Officer)
Yeah, I just, I confirm that Mike and I mean that was one of the positives in the first quarter as consumer delinquency trends improved and was somewhat of an offset helped our overall total delinquency level for the period. But we were monitoring everything that's touching energy and potential inflation impacts as we go through the quarter.
Mike Price (President and CEO)
And Dan, I would add we have probably. It's not like we have 15 or 20,000 customers. We have plus indirect auto. We have 300,000 customers at the bank. So we have a lot of clients. So it's a pretty good sample set sample size.
Daniel Cardenas (Equity Analyst)
All right, and then just jumping quickly back to credit. Within your non. Your level of non performers, is there any geographic concentration? Any one particular market, or perhaps some of these credits are housed in versus others?
Brian Sohocki (Chief Credit Officer)
No, nothing. From a geographic standpoint, as you look through it, it's been isolated credit events that have driven the overall dollar amount of NPLs. You know, the one point I'd add is Mike made a comment in his opening statement. It's just important to distinguish between the guaranteed and unguaranteed exposure within the SBA portfolio. Those are all very granular. But from a concentration standpoint, as you asked it, there are $28 million of guaranteed NPLs in that portfolio.
Daniel Cardenas (Equity Analyst)
All right, and then just one quick modeling question on the tax rate. Is a 20% tax rate kind of a good run rate for you guys?
Jim Reschke
Yeah, it's very close. I think we are at 20.26. Okay. Yeah, 22.26 for the first quarter. Perfect. I'll step back.
Daniel Cardenas (Equity Analyst)
Thank you, guys. Thanks.
OPERATOR
And we have no additional questions at this time. So I will now turn the conference back over to Mr. Mike Price for closing remarks.
Mike Price (President and CEO)
Thank you for our interest in our company. I did want to mention, lastly and importantly, after 37 years at our company, Norm Montgomery, our Chief Information Officer, is retiring and we will miss him. And we have hired Ryan Gorney to replace Norm and have a talented team at our company and excited for Norm his retirement. And welcome to Ryan Gorney.
OPERATOR
And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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