Smith said NIM improved 23 basis points quarter-over-quarter to 2.14% when including a $20 million gain related to “tearing up” hedges tied to long-term Federal Home Loan Bank (FHLB) advances that were restructured at quarter-end. Excluding that one-time benefit, NIM was 2.05%, still up 14 basis points from the third quarter.CFO Lee Smith said reported net income attributable to common stockholders was $0.05 per diluted share, with notable quarter items including a $9 million upward revaluation of the bank’ ...

Core Viewpoint - Nexi has declined a €1bn ($1.17bn) offer from TPG for its digital banking solutions unit after careful consideration by its board of directors [1][2]. Group 1: Offer and Decision - TPG submitted a binding offer for Nexi's digital banking solutions division after several months of negotiations [1]. - The board of directors of Nexi reviewed the proposal and decided not to proceed with the transaction [2]. Group 2: Stakeholder Opposition - Cassa Depositi e Prestiti (CDP), which holds a 19.14% stake in Nexi, opposed the sale due to the strategic importance of the digital banking division [3]. - The digital banking division includes Italy's national interbank network and generated core earnings of €155m last year [3]. Group 3: Market Context - The decision to reject the offer is seen as a missed opportunity for balance sheet deleveraging, according to Banca Akros analyst Gabriele Venturi [4]. - The outcome adds to a series of unsuccessful banking transactions in Italy, influenced by regulatory and political factors [4]. - Nexi has been expanding through acquisitions, including the purchase of Nordic payments company Nets and an agreement to acquire Paycomet in 2023 [5].

Core Thesis - Occidental Petroleum Corporation (OXY) is viewed positively due to its strategic divestiture of OXYChem and focus on balance sheet deleveraging, positioning the company for long-term growth and shareholder returns [1][5][6] Financial Performance - OXYChem was sold to Berkshire Hathaway for $9.7 billion in cash, resulting in approximately $8 billion after taxes, while retaining around $2 billion in environmental liabilities [2] - Historically, OXYChem generated about $550 million in free cash flow (FCF) annually, with potential upside from the Battleground plant expansion expected to add $325 million in EBITDA by 2026 [2] - Adjusted for capital expenditures and low chemical pricing, OXYChem's 2026 FCF is projected to be around $460–500 million, indicating a 7–10% FCF-to-sale-price ratio [3] Strategic Moves - The divestiture aligns with OXY's asset optimization strategy, swapping OXYChem for CrownRock (CR), acquired for $12.4 billion in 2024, which produces approximately 170,000 boepd and generates roughly $1 billion in FCF at $70/WTI [4] - CR offers an 8% FCF return comparable to OXYChem in a down-cycle chemical market and provides critical Midland Basin acreage for enhanced oil recovery (EOR) and operational synergies [4] Market Reaction - The market initially reacted negatively to the divestiture due to messaging gaps and perceived costs, but OXY's strategic actions are expected to de-risk the balance sheet and accelerate shareholder returns [5] - Future guidance in the upcoming quarterly report is anticipated to clarify the company's strategic positioning and address market skepticism [5] Valuation and Outlook - OXY's trailing and forward P/E ratios are 26.02 and 16.18 respectively, indicating an attractive valuation amid low U.S. oil supply and potential operational leverage [1] - The stock has appreciated approximately 14% since previous bullish coverage, benefiting from energy market tailwinds [6]