Analyst’s Disclosure: I/we have a beneficial long position in the shares of VLE:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any ...

Group 1 - Occidental Petroleum (NYSE: OXY) has experienced fluctuations in valuation, being heavily undervalued at times, such as in March 2020, and more recently recommended for selling [2] - The Value Portfolio focuses on constructing retirement portfolios using a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The analyst has a beneficial long position in OXY shares through stock ownership, options, or other derivatives, indicating a personal investment interest in the company [3]

For almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. In the summer of 2021, I left the city and moved into a yurt I built in the boreal forest. I went from living in downtown Toronto to living alone in the woods approximately 100km away from the closest paved road or grocery store.The longer I stay in the woods, the more I experience the omnipresence of divine energy. Self-sufficiency does not exist, as I simply replaced my relationships with grocery stores ...

Financial Performance - Net income for the third quarter of 2024 was $106.723 million, a decrease from $112.236 million in the same period of 2023, representing a decline of approximately 5.4%[14] - Basic earnings per share for the three months ended September 30, 2024, were $0.31, down from $0.38 in the same quarter of 2023[32] - Diluted earnings per share for the three months ended September 30, 2024, were $0.31, compared to $0.38 in the same period of 2023[32] - The total other comprehensive income for the three months ended September 30, 2024, was $38,392 thousand, a decrease of $(8,062) thousand from the same period in 2023[26] - The total other comprehensive income for the nine months ended September 30, 2024, was $36,291 thousand, a decrease of $(7,621) thousand compared to the same period in 2023[25] Shareholder Equity and Dividends - Cash dividends declared were $0.385 per share, totaling $39.371 million, compared to $0.370 per share and $38.050 million in the previous year[11] - Total shareholders' equity increased to $1.409 billion as of September 30, 2024, up from $1.314 billion at the end of 2023, reflecting a growth of approximately 7.2%[10] Credit Losses and Provisions - The provision for credit losses was $22.680 million for the third quarter of 2024, compared to $16.678 million in the same quarter of 2023, indicating an increase of approximately 36.0%[14] - The Day 1 provision for credit losses on non-PCD loans was recorded at $10.653 million, reflecting the company's assessment of credit risk at acquisition[22] - The allowance for credit losses is calculated using a discounted cash flow methodology, with a forecasted national unemployment rate averaging 4.87% during the one-year forecast period[73] - The total allowance for credit losses was determined using a loss given default and probability of default methodology, with no reserve required for unfunded commitments related to nonperforming loans[107] Loans and Leases - Total loans and leases amounted to $8,965.5 million as of September 30, 2024, slightly down from $8,968.8 million as of December 31, 2023[67] - The commercial, financial, agricultural, and other loans category increased to $1,629.5 million from $1,543.3 million[67] - Residential real estate loans decreased to $2,374.4 million from $2,416.9 million[67] - Total loans and leases decreased to $802,478 thousand in 2023 from $1,322,394 thousand in 2022, representing a decline of approximately 39.2%[82] - The company reported a decrease in origination year loans from $122,043 in 2023 to $106,373 in 2024, indicating a decline of approximately 12.5%[78] Deposits and Cash Management - The company reported a net increase in deposits of $553.269 million for the third quarter of 2024, compared to $479.307 million in the same period of 2023, reflecting an increase of approximately 15.4%[14] - Cash and cash equivalents at September 30, 2024, were $582.309 million, a significant increase from $337.070 million at the same date in 2023, representing a growth of approximately 72.6%[14] - The liability recorded for unused commitments and letters of credit was $4.1 million as of September 30, 2024, down from $7.3 million as of December 31, 2023[37] Securities and Investments - The estimated fair value of securities available for sale was $1,140,800 thousand as of September 30, 2024, compared to $1,020,986 thousand on December 31, 2023, reflecting an increase of 11.7%[40] - The company recorded a net loss of $5,447 thousand from sales of securities for the nine months ended September 30, 2024, compared to a loss of $103 thousand in 2023[45] - The total gross unrealized losses for all securities as of September 30, 2024, were $160.6 million, with a total estimated fair value of $892.2 million[61] Acquisition Details - First Commonwealth Financial Corporation reported a total consideration paid of $141.356 million for the acquisition, which included 9,688,478 shares issued to shareholders valued at $14.59 per share[16] - The fair value of total assets acquired from Centric was $1,035.757 million, with loans accounting for $923.555 million of this total[16] - The company recorded goodwill of $60.387 million, representing the excess of consideration paid over the fair value of identifiable net assets acquired[17] Nonperforming Loans and Credit Quality - Nonperforming loans were assessed based on the present value of expected future cash flows, with no nonperforming loans held for sale as of September 30, 2024[99] - The company has identified potential weaknesses in certain loan categories that may require management's close attention[74] - The aging analysis of past due loans indicates a focus on loans that are 90 days or more past due but still accruing due to being well-secured[90] Interest Income and Noninterest Income - The total interest income recognized for the nine months ended September 30, 2023, was $44,667 thousand, compared to $48,899 thousand for the same period in 2024, showing a decline of approximately 8.3%[103] - Total noninterest income for Q3 2024 was $24,698,000, slightly down from $24,826,000 in Q3 2023, a decrease of 0.5%[209] - Card-related interchange income decreased to $4,137,000 in Q3 2024 from $7,221,000 in Q3 2023, a decline of 42.5%[209] Risk Management and Future Outlook - The company continues to monitor the collectability of loans and adjusts its allowance for credit losses accordingly[99] - Future outlook includes continued efforts in market expansion and potential new product offerings to enhance revenue streams[82] - The company has allocated substantial resources to manage credit risk, which is critical for maintaining earnings, capital, and liquidity[88]

Core Insights - First Commonwealth Financial (FCF) reported revenue of $121.21 million for Q3 2024, a year-over-year decline of 1.1% [1] - The earnings per share (EPS) for the same period was $0.31, down from $0.39 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $118.4 million, resulting in a surprise of +2.38% [1] - However, the EPS fell short of the consensus estimate of $0.36, leading to an EPS surprise of -13.89% [1] Financial Metrics - Core Efficiency Ratio stood at 56.7%, slightly above the average estimate of 56.3% from three analysts [3] - Net interest margin (FTE) was reported at 3.6%, matching the average estimate from three analysts [3] - Total Interest-Earning Assets (FTE) reached $10.83 billion, surpassing the average estimate of $10.72 billion [3] - Total Non-Interest Income was $24.70 million, exceeding the average estimate of $22.30 million [3] - Gain on sale of mortgage loans was $1.15 million, below the average estimate of $1.94 million [3] - Gain on sale of other loans and assets was $2.58 million, significantly higher than the average estimate of $1.24 million [3] - Net Interest Income was reported at $96.52 million, above the average estimate of $95.65 million [3] - Card-related interchange income was $4.14 million, exceeding the average estimate of $3.86 million [3] - Net interest income (FTE) was $96.86 million, slightly below the average estimate of $97 million [3] - Trust income was $3.24 million, above the average estimate of $2.98 million [3] - Service charges on deposit accounts were $5.84 million, marginally above the average estimate of $5.83 million [3] - Insurance and retail brokerage commissions were $2.66 million, below the average estimate of $2.90 million [3] Stock Performance - Shares of First Commonwealth Financial have returned -0.4% over the past month, compared to a +1.7% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

First Commonwealth Financial (FCF) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -13.89%. A quarter ago, it was expected that this financial holding company would post earnings of $0.35 per share when it actually produced earnings of $0.36, delivering a surprise of 2.86%. Over the ...

INDIANA, Pa., Oct. 29, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) today announced financial results for the third quarter of 2024. Financial Summary | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------|-------|---------------------------------------- ...

INDIANA, Pa., Oct. 15, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (NYSE: FCF) announced today that it will host a conference call on Wednesday, October 30, 2024 at 2:00 p.m. Eastern Time to discuss financial results for the quarter ended September 30, 2024. The call will be hosted by T. Michael Price, President and Chief Executive Officer. He will be joined by James R. Reske, Executive Vice President and Chief Financial Officer, Jane Grebenc, Executive Vice President and Chief Revenue ...

With over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pessimism and excessive exuberance. My analysis will concentrate on unique trading opportunities influenced by the macroeconomic landscape and in-depth fundamental research on companies exhibiting signs of dislocation or potential perception gaps ripe for us to capitalize on. I aim to share my ...

I am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason ...