Earnings Call: Q1 2021

Apr 28, 2021

Good day and thank you for standing by. Welcome to the First Commonwealth Financial Corporation's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. I would now like to hand the conference over to Ryan Thomas, Vice President and Finance, Investor Relations. Thank you. Please go ahead, sir. Thank you, operator, and good afternoon, everyone. Thank you for joining us today to discuss First Commonwealth Financial Corporation's 1st quarter financial results. Participating on today's call today will be Mike Price, President and CEO Jim Roesky, Chief Financial Officer Brian Carrap, Chief Credit Officer and Jane Drewentz, our Bank President and Chief Revenue Officer. As a reminder, a copy of today's earnings release can be accessed by logging on to sdbanking.com and selecting the Investor Relations link at the top of the page. We've also included a slide presentation on our Investor Relations website with supplemental financial 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 2 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 statement. 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. And with that, I will turn the call over to Mike. Thank you, Ryan, and welcome to those on the call today. I'll start with several Q1 headlines for First Commonwealth's financial performance. All in all, a very good quarter. Net income of $39,800,000 yielded $0.41 in earnings per share, both quarterly records for our company. ROA was 1.77 percent and regardless of credit tailwinds, our core pre tax pre provision ROA was 2%. Net interest income was up $1,900,000 to $69,400,000 as our borrowers received forgiveness of the 2020-twenty 1 PPP loans. This PPP forgiveness helped Boyd margin to 3.4%. Our consumer lending categories were all strong with several delivering record originations. Commercial lending originations had some 1st quarter momentum, but could not outrun liquidity induced payoffs, PPP forgiveness and lower line utilization from our business customers. Geographically, our Ohio market continue to lead the way in growth. The team did a nice job of further reducing our already low cost deposit funding to help strengthen the margin as well. We expect excess deposits to start to slowly burn down as spending increases. Non interest income of $27,400,000 comprised 28.2 percent of revenue and represents the 3rd consecutive quarter of outstanding non interest income performance. Comparing the current quarter to the Q1 of 2020, our debit card interchange income was up 22%. Our mortgage gain on sale income doubled versus last year's level. Our SBA gain on sale income was up 170% and our wealth business was up 18.7%. Low first quarter charge offs of $3,300,000 coupled with an improving economic outlook in our CECL model led to a negative provision of $4,400,000 The associated reserve release represented 4.5 percent of our December 31 loan loss reserves, leaving a healthy reserve of $96,800,000 or 1.55 percent of total loans ex PPP as of the quarter end. Our gross level of non performing assets fell in the Q1 by $3,700,000 as well to 0.48 percent or 58 basis points of total XPPP loans. Expenses of $51,900,000 were down $2,700,000 over the 4th quarter as our core efficiency ratio fell to 53.2%. In short, we saw improvement in net interest income, non interest income, credit, expenses and deposits. Only commercial loan growth lagged our targeted growth rate. We expect commercial loan growth to remain somewhat muted and take a bit longer to pick up given higher levels of liquidity and the overall strength of the permanent market. Pipelines have started to build in both C and I and investment real estate, and we also expect to see strong consumer and small business loan growth in the second half of twenty twenty one as spending has started to pick up. As a result, we believe that we can achieve the upper end of our mid single digit loan growth target for the remainder of this year. As an aside, in round 2 of PPP lending, the team has helped 2,500 small business and midsized businesses secure roughly $255,000,000 in funding. If you recall, in round 1 in 2020, the team made roughly 6,000 loans for $500,000,000 In the Q1, we also received over $326,000,000 in stimulus payments for approximately 95,000 households who bank with us, further increasing the bank's excess cash. We continue to see very strong adoption of our new digital platform with 1st quarter growth rates of 7.5% in active mobile users. In addition, our customers have displayed strong demand for Zelle, our person to person payment solution as new Zelle token enrollments are averaging 2,400 a month during the quarter. Our digital account opening is up significantly year over year as well. Overall, we're very pleased with the response from our markets to our new digital platform and solutions. Lastly, on our corporate governance culture, the team and I are grateful for the leadership and counsel of David Dallman over the past 15 years as Chairman of our Board of Directors. David has created a strong independent Board and a strong corporate governance culture that creates appropriate accountability with the management team. It's a privilege also to welcome John Gorney into the position of Board Chair. John's 37 year banking career at 2 top 10 U. S. Banks includes C suite leadership roles in technology, digital and operations alongside integrating over 1 dozen banks in a payment processing acquisition. John's background makes him uniquely positioned to lead our company at this time. Now, I will turn it over to Jim. Jim? Thanks, Mike. Mike has already provided a high level review of our financial results for the quarter. So I'll spend my time providing some additional detail on our margin and our non interest expense. The reported net interest margin or NIM improved from 3.26 percent to 3.40 percent. New PPP Round 2 net originations of $215,000,000 in the Q1 almost perfectly matched the $216,000,000 of net Round 1 PPP loans that were forgiven, leaving PPP balances virtually unchanged at approximately $479,000,000 as of March 31. Profit forgiveness works to the benefit of the margin as expected. Fortunately, these effects were telegraphed in advance and well anticipated in our forecast and by the market as we couldn't help but note that consensus estimates of our spread income came within approximately $400,000 of our actual figure of $69,800,000 However, our consensus estimates for net interest income for the remainder of 2021 don't yet seem to reflect the anticipated recognition of fee income from PPP Round 2 loan that we generated in the Q1, which is of course completely understandable. To be clear, as of March 31, we had $13,100,000 in total PPP fee recognition remaining from both rounds, dollars 9,500,000 of which is from round 2. Of that 13,100,000 dollars we expect to recognize $10,200,000 in the remainder of 2021, dollars 8,500,000 of which is from round 2. These forecasts assume 90% of the balances from both rounds are forgiven by the end of the year. On the other hand, our core NIM excludes the effects of both PPP and excess cash. That improved from 3.29% to 3.36 3.3 3.36% in the Q1, mostly due to improvement in the cost of interest bearing deposits. In 1 quarter, we took nearly a third of the cost of our interest bearing demand and the savings deposits off from 14 basis points to 10 basis points and about a quarter off of the cost of time deposits from 105 basis points to 75 basis points. With the growth in non interest bearing deposits this quarter, the total cost of deposits fell from 17 basis points to 11 basis points. And some repricing opportunity remains. All of this gives us the confidence to raise our core NIM forecast for the remainder of this year from our previous guidance of 3.20 percent plus or minus 5 basis points to 3.25 percent plus or minus 5 basis points. Our forecast incorporate expectations of a steepening yield curve that should help blunt the impact of excess cash and provide some measure of margin stability through this year and next. Core operating expense came in $2,200,000 lower than last quarter to $50,900,000 Part of that was due to expected seasonality in some of our line items like healthcare expense where we spend more in the Q4 every year. Where non interest expense was lower than expected this quarter were line items like OREO and collection and refill costs, which together were about $500,000 less than we expected they would be. Also, our ability to defer expenses associated with PPP Round 2 production, which amounted to $428,000 in the first along with high vacancy rates in our retail network as we staff up now that we have fully reopened our branch lobbies. Mike already spoke to our strong fee income in the Q1. I will only add that even with mortgage income slowing down a bit in the second half, we anticipate being able to sustain a pace of $26,000,000 to $27,000,000 per quarter in non interest income for the remainder of 2021. Finally, we implemented our $25,000,000 share repurchase program in the Q1, albeit at a slow pace with only 28,000 shares repurchased in the quarter at an average price of $13.99 And we announced yesterday a 4.5% increase in the dividend. And with that, I'll turn it over to Brian. Thank you, Jim. Management is pleased to report our solid first quarter credit results, underscoring the effectiveness of our underwriting standard, the discipline around our portfolio management practices and the strength of our credit culture. While we see the light at the end of the pandemic tunnel, the final episodes of the mini series are still being written. Management continues to be prudent and reasoned as we navigate the economic recovery and the reopening of our local economies. Let's turn to the numbers. Our Q1 commercial delinquencies were quite low at 0.03%, reflecting our hands on relationship management approach to commercial lending. Our consumer delinquencies were well behaved at 0.27%. This is due to our strategy of early calling by our borrowers, assistance team as well as stimulus checks and early tax refunds. Criticized loans decreased in Q1 Criticized loans decreased in Q1 by approximately $31,000,000 to $272,000,000 reinforcing my earlier comment that we are seeing the light at the end of the tunnel. Hospitality continues to represent the largest segment within criticized loans as well as the largest portion of loans on deferrals. On a case by case basis, when granting deferrals, we have negotiated a variety of structural improvements, including increased recourse, net service reserves, additional collateral, equity contributions and additional covenants. Let me state that we are hearing from our customers that the trends in occupancy have improved and are expected to continue to improve reflecting increased vaccinations. Borrowers are seeing increased leisure travel, increased bookings for both weddings and some business travel, including small corporate events. Contribution from food and beverage has increased with the lifting of certain restrictions. We are pleased that in the period, net non performing loans totaled $50,400,000 an improvement of approximately $3,700,000 Our non performing loans as a percentage of total loans, excluding PPP, fell to 0.80%, down from 0.86% at year end. Reserve coverage ratio increased to a healthy 192%. Similarly, non performing assets as a percentage of total assets fell to 0.55% for the quarter, down from 0.62% at year end. Net charge offs were at the low end of our internal quarterly range at approximately $3,300,000 Quarter to date net charge offs annualized were 0.21% excluding PPP. Now let me provide some color on the provision and our reserves for the quarter. First, let me remind you that we adopted CECL on December 31, 2020. We utilized certain Moody's forecast of key economic indicators, including GDP and unemployment and our internal calculations. The provision for the Q1 of 2021 was a negative $4,400,000 due to changes in changes relating to unfunded commitments, lower loan outstandings in certain portfolios, improvement in quantitative input metrics and improvements in several qualitative factors. Overall, we are well reserved at $96,800,000 Reserves as a percentage of total loans at quarter end were 1.44% and 1.55% excluding PPP. As I mentioned last quarter, management sees the potential for tailwinds towards the back half of twenty twenty one. Future releases will be predicated on a number of factors, including loan growth, credit metrics and continued improvement in economic conditions. Now let me turn it back to Mike for Q and A. Thanks, Brian. And operator, questions? Thank you. Your first question comes from the line of Steve Moss of B. Riley Securities. Please go ahead. Your line is open. Good afternoon. Good afternoon, David. Mike. And maybe just start off with loan pricing here, kind of seeing just kind of curious as to what you're seeing for competition in your markets. I noticed your yields ex PPP were stable quarter over quarter, but curious how that dynamic going forward here? Just looking at our net production, Jim, I think it was pretty flat from quarter to quarter, maybe a little pressure on mortgage loans, installment loans, commercial fixed was pretty flat. That's a tale of the taste, is that fair? Yes, that's pretty much it. The commercial loans are coming on in the low 3s, that's been pretty consistent. Part of the story for us, Steve, is the replacement yield story is getting better. It's not haven't gone away. But in the Q4, we had negative replacement yields of 62 basis points negative and this quarter was only negative 20. And so that's pointing itself out, like kind of like we thought it would and getting us closer to neutrality and then helping stabilize the loan portfolio yield. That's why this quarter when you saw the NIM equipment, the loan portfolio yield was relatively unchanged. Actually, it was up one basis book, that's not statistically significant. It was really not the deposit by really an improvement. So, is that helpful? That is helpful. It's exactly what I was looking for. And then just in terms of sticking with the margin and the balance sheet here, just you guys added securities this quarter, cash still went up. Just kind of curious on the rates of your purchases this quarter and maybe the potential for additional purchases in the upcoming quarter. Jim? Yes, sure. So it changed quite a bit over the quarter actually. At the beginning of Q1, we were buying securities at the low ones, a little over 1%. And most of what we buy is plain vanilla MBS. We don't really look at securities portfolio as a place where we want to take risk, so it's pretty plain vanilla. But those yields were below 1. By the end of the Q1, we actually were able to buy securities because of the deepening yield curve that were at 2%. But the yield curve has flattened out a little bit since then. That was when the tenure was a little higher than it is today. It has come back a little bit. And our preference generally is not to extend duration of the securities portfolio. So we've been trying to buy securities in the in the securities portfolio. So we've been trying to buy securities in the 4 under 5 year duration window, but not really going beyond that. So those yields have come down south of 150 in the last week or so. You asked about the security portfolio in general. And with that much cash sitting around, we do expect to buy more securities going forward. We want to make sure that we maintain sufficient liquidity for our customers if they spend that money. Obviously, we had to save some good loan growth. So we want to make sure we can take those funds and deploy them into profitable loan growth, which is, of course, our first choice. But even with all that, we will probably increase the securities portfolio somewhat over the course of the year. Okay. That's helpful. And then just one last one for me in terms of expenses here, down nicely quarter over quarter. Just kind of and I apologize if I missed this, just kind of curious as to how to think about expense for the upcoming quarter and if there's any maybe a PPP impact this quarter? Yes. I don't know that the guidance has changed, this is Mike, of 52% to 53%. Jim, I don't know if you want to add any color to that. Yes. That's sort of the right guidance. When we looked at the consensus forecast and didn't see any reason to update that guidance, We did get the benefit of a few payments in the Q1. I think you were asking about FAS 91 deferrals on PPP and that was the total I was giving earlier $428,000 that's reduced it, I. E. The $428,000,000 in the Q1. We had sales anyone froze every quarter with production, but that was really associated with PPP Round 2. So and that was purely just for the Q1's production from PPP Round 2. 2. Okay, great. Well, nice quarter and thank you very much for all the color. Thank you. Your next question comes from Stephen Juong of RBC Capital Markets. Please go ahead. Your line is open. Hey, good afternoon, guys. Jim, I appreciate the core NIM now. It's great you guys are getting that to 325. Maybe just a little detail on just the liability side. What do you have maturing on your time deposits and where are you currently pricing than that? Yes, we have actually glad you asked. I have some detail I'm happy to share with you. We have about $320,000,000 of CDs maturing in the remaining three quarters of this year and that cooled CD is currently moving 60 basis points. So those are maturing. The current offerings we have, the record rates are not very different from the other banks in our area. CD pricing and for time deposits at different terms tends to be fairly middle of the pack, but a new 12 month CV will be close to 10 basis points. Again, not new lease there, but hasn't moved in a while that's pretty middle of the pack for our market. And what we are experiencing are the rollover rates that are anywhere from 1 half to 2 thirds of the maturing CDs rollover. So that's 60 basis points of CD, dollars 3 20,000,000 for the remainder of this year. We also have, in addition to that, Steve, another $81,000,000 in money market accounts that had a guaranteed time on them. And those are actually only 1.14% and those are going to reprice at a later this year as well. So there really is some repricing opportunity. Overall, when your cost of deposits is 11 basis points, that's not a negative carry versus the interest on excess reserves of the Fed, right? So that's getting to parity with the 10 basis points to get from the Fed. It's not a drag at earnings anymore. But there's still some opportunity to bring it down even further. Right, right. I guess, so with CDs at your pricing at 10 basis points, are there actually people rolling it over into a CD at 10 basis points versus just putting in a savings account? Steve, every season, thicker than every interest rate environment, there's always a group of CDs that when we get to maturity is to auto roll without any action by the borrower at all. That's a true process for every bank and that's continuing. So in this environment right now, there's almost no one in our market area offering any time deposit specials at all. And the remaining holdouts for some of the banks that were still offering higher rack rates is how we brought those down as well. So there's it's just if you want to time deposit the customer, there's just not many places where you can go. Right, right. I guess then, if we look into next year, is it possible that we could see cost of deposits like 5 to 10 basis points? Oh, yes. Yes. I mean, we're 11 now total. And NIB is still growing too, right? So that helps the overall mix as well. But yes, we're 11 basis points now. You could see that in the 5 to 10 basis points range for the rest of this year. Right. And you're pretty much limited on what you could do on the borrowing side, right? That's right. That's right. We have some borrowings that are going to roll off in May. I think there's a $50,000,000 FHLB borrowing that's going to roll off in May. But the way those are priced, it's not worth any prepayment penalty. So we just let it buy to let it roll off. But that will come off here next month and that will help the NIM as well. Got it. And just one last one just on this margin. If the tenure stays where it is currently, do you expect your overall core loan yield to increase or just remain stable? Probably likely to remain stable. The steepening has helped us. And I think we've been pretty successful in our originations and getting the most spread we can and our commercial originations and getting floors for customers as well, those picked up quarter over quarter. So I think we're pretty successful on that. But given the steepening of the yield curve, given where the tenure is right now, we're probably looking at yield stability of the loan side. Great. That's all I had. And yes, this is a nice print on for the quarter. Thank you. Thank you. Your next question comes from Richel Gonchar of D. A. Davidson. Please go ahead. Your line is open. Hey, good afternoon, guys. Good afternoon. I wanted to follow-up, Mike, on your commentary about the organic growth outlook. A lot of good color and detail there. Trying to triangulate the progression of the consumer strength and when that baton gets passed to the commercial, does your mid single digit ish guy contemplate commercial growth contributing to the positive momentum or is the mix going to be more consumer weighted near share? I believe we could cross the rubicon kind of late in Q2 or in Q3. We were satisfied with production in the last two quarters. It's just the liquidity, the shrinkage in the line usage and the excess liquidity that created some payoffs kind of outran us a bit. But I expect that commercial side to ramp up somewhat. So I think we could have both of them yoked by the second half of the year and moving in the same direction. In a small business lending, we really set some records in the Q1 with production. SBA hits fee income. We have good momentum there. Indirect lending, good momentum. We just need cars and houses out there. The inventory is shrinking for both. And then consumer lending branch base, Jane Gebens, Joe Coolis have just done a great job. I mean that number is up probably 30 percent year over year and that's mostly sales related. Then of course mortgage, most of mortgage gets converted into gain and sale income and doesn't it's not really hitting the balance sheet right now. So I feel good about the consumer side and the commercial side has always been the big engine for us and we expect that to kick in, in the next couple of quarters. Thank you, Mike. Yes, very encouraging on the organic growth outlook. And then just switching gears, last line of questions would be on the fee income side. Also encouraging to hear that $26,000,000 $27,000,000 number on a quarterly basis despite mortgage coming down. Could you guys just spend a minute in terms of what you think the drivers going forward will be of that fee income strength and perhaps comment on the SBA gain on sale specifically if you could? Thank you. Yes. Just a couple of comments and then Jim can fill in and perhaps Jane as well. But just we really haven't seen a lot in swap fees that could create some tailwind and hasn't. Mortgage is tapering somewhat, but remains strong in the Q2. SBA loans, we expect to have a nice quarter and have a good pipeline there. Our brokerage business and trust business just get better every year. Interchange is strong. And so you'll see might see a little paper in mortgage. Jim or Jane, any color there? Any additional color? I think you hit the high points, Mike. I only add if those numbers reflect some tapering of mortgage income that we anticipate maybe even higher for mortgage income will continue on its current trajectory, but if you expect that to slow a bit. And then Jane, I'll hand it off to you if you have any other color on the things that Mike just mentioned. It's been a very good quarter for SBA and we expect that to just get better. The SBA pipelines are very strong. So that won't appear on the balance sheet, but 60% or more of our SBA business comes from referrals from small business lenders or corporate bankers. So we're happy either way. So the pipelines are very strong in SBA and the gain on sale in SBA has been stronger than I've ever seen it, 11%, 12%. So I feel good about the non interest income. Thank you all for taking my questions. Thanks, Russell. Your next question comes from Frank Schiraldi of Piper Sandler. Please go ahead. Your line is open. Hi, everyone. Just wanted to ask about sorry if I missed it, but in terms of share repurchases, I know you have a new program, but just wondered your appetite there given the move in the share price. Jim? Yes. No, we're happy to have the program and the authorization put that in place. We had looked at the price levels where we wanted to buy and we want to be more aggressive in the $14 and that's why we have a price of $13.99 with the share price coming up a little bit, we have tapered off those purchases. But what we did with that is for us, it's not so much that sometimes people have read a calculation of the earn back period, I'd press it to repurchases, for us it's a question of generating excess capital and the best use of that excess capital. So those share purchases will continue this year and might even pick up from here. Okay. And then lastly on the and I know you guys touched on this in terms of the potential for releases going forward. But in terms of the reserve to loan ratio, just wondering your thoughts on where that could trend to as some more uncertainty maybe comes out of the environment. And is it best to kind of think about where we were early in 2020 before the pandemic? Or what's the best way to think about where that could sort of stabilize? Brian? Thank you. Thank you for your question. So we continue to be disciplined and prudent in the way we reserve. We look at our loan growth. We're going to look at our charge offs, our quantitative and qualitative components of our model, including our high risk model, our high risk portfolio and then will potentially bring the reserves down depending on the economic outlook. Let me also note that we had almost $13,000,000 in our high risk portfolio at year end. We've reduced that to about $6,000,000 this quarter. So we brought the number down consistent with the improvement in the economy. But we'll continue to look at it and as the picture gets clearer, we'll continue to dial in to what is an appropriate level of reserves for our company. Okay. Do you I mean, it's always hard to say, but you get the high risk portfolio you have, is that actively being looked at in terms of do you see the potential to maybe move some of that off balance sheet this year? I'm just trying to get a sense if there's any reason to expect anything other than very normalized loss rate for 2021? We give you the high risk portfolio in the slide deck. And what is hard for you to tease out of it is that the retail portfolio, we reduced the reserve associated with that, the high risk portfolio cut it more than half. And so we're seeing great improvement in the retail side of our portfolio. Senior living, we've got one problem we're dealing with, energy, restaurants. We're watching closely, but we brought those reserves associated, the COVID related reserves down purposefully because we are seeing improvement in that portfolio. Okay. All right. Thank you. Thanks, Frank. Your next question comes from Matthew Breese of Stephens Inc. Please go ahead. Your line is open. Hey, good afternoon. Good afternoon. Hey, Mike. Just on the loan growth outlook, auto loans has been a strong driver, a strong component of consumer growth recently. We've heard more recently of some chip shortages in the area for, I think, particularly for the new car sales. Just curious if you're seeing any impact there and as you look towards the end of this year, if that could impact your ability to put new auto loans on the book. Maybe give us a sense for the mix between new and used auto. Jane, why don't you handle this one? Thanks, Mike. Thank you for the question. We are predominantly a newish used car lender, but the chip shortages, part shortages generally are affecting used cars as much as they are new cars. And we've had a very good Q1 as you've noted. We're going to have a good April, but I think it's going to mute our growth a bit over the next couple of months. I think it will be good, but it could have been great. Supply is definitely being outstripped by demand. Got it. Okay. Okay. I appreciate that. And then Mike, just acknowledging the size of the balance sheet relative to the $10,000,000,000 threshold in Durbin. I know M and A is something that's been brought up before. Just curious how conversations have gone. Are they picked up or not? And do you think that M and A and your ability to acquire is something that could happen this year? We are very cognizant of the $10,000,000,000 Indeed, we feel like we're prepared certainly from an enterprise risk perspective. And but on the acquisition side, I mean, ideally, you either do something and find a way to stay under it for a year, which pushes it out in 2023 or you do something larger. And there's nothing imminent right now. There's lots of conversations out there. But I doubt that that's significantly different than like size peers. But we also feel like with the impact of Durbin, it's incumbent upon us to find other sources of fee income to compensate for the loss in Durbin and scale other businesses over a period of time. And we feel like we've de novoed our way into a lot of things and we've been successful and the team on the operations and on the business development side have executed flawlessly, whether it's mortgage, indirect, enhanced consumer lending, SBA. We just have a good team that can build things up. So we'll try to help you both ways. We'll try to do it thoughtfully in terms of staying on this side or going decisively over. And then we're cognizant of fee income as a percentage of revenue is important to us. We've made great strides here the last decade with lots of investment and we look to continue to grow those non interest income and fee businesses. Got it. Okay. Last one for me just on the digital banking front. It feels like that is a big push for all banks, especially on the back of COVID. Could you just give us a couple of areas where you feel like on the digital banking side, you are different or set apart or farther ahead on the curve than your peers? Yes, a couple of places. And I think we're getting very good at digital account opening as a percentage of our overall new deposits. I feel like we've just put in a new treasury management platform, so we can play bigger than perhaps some of our community bank peers. Certainly, we're not doing foreign lock boxes and things like that that bigger banks do, but nevertheless, just good utility there. I think our user interface and our customer experience from the mobile to the online to the tablet is very contemporary or user friendly, has personal financial management tools that can help people with budgeting and other things. And this is a fun part of our business to maintain our relevance. And I also think we can finesse the digital with the community bank brand in a way that the bigger banks always don't have to win. I think you can like local and get a good digital experience. I have the expert on the line, Norm Montgomery, who's our CIO. Norm, do you want to add anything to that? I would just add that last year, we set ourselves up well by changing our digital platforms, as Mike indicated, on both the consumer side and business side. So we are really ready to grow in those areas with the latest solutions. Thanks, Sonam. Is that helpful? Very helpful. That's all I had, Mike. Thanks for taking my questions. Thank you. And there are no further questions at this time. I'll turn the call back over to Mike Price, President and CFO, for closing remarks. Thanks again. We appreciate your sincere interest in our company. We look forward to being with a number of you over the next quarter or 2. We appreciate the entree to terrific investors and just thank you for your effort and your diligence in following First Commonwealth. And this concludes today's conference call. Thank you for participating. You may now disconnect.