Latest news with #FirstCommonwealthFinancial
Yahoo
01-08-2025
- Business
- Yahoo
First Commonwealth Financial Corp (FCF) Q2 2025 Earnings Call Highlights: Surpassing ...
Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points First Commonwealth Financial Corp (NYSE:FCF) reported core earnings per share of $0.38, surpassing consensus estimates by $0.03. Net interest margin expanded significantly from 3.62% in the first quarter to 3.83% in the second quarter, driven by improved loan yields and lower deposit costs. Strong loan growth of 8.1% annualized, with broad-based performance in equipment finance, small business, commercial, indirect, and branch lending. Non-interest income increased by $2.1 million to $24.7 million, with strong contributions from mortgage, SBA, interchange, wealth, and other service charges. Successful integration of Centerbank, adding $295 million in loans and $278 million in deposits, enhancing presence in Cincinnati. Negative Points Non-performing loans increased by $40.1 million from the prior quarter, primarily due to a single commercial floor plan loan moved to non-accrual. Provision expense was $12.6 million, with $3.8 million tied to day one CSO provision for Center Bank. The cost of deposits fell by only 8 basis points, with increased borrowings by the end of the quarter. Potential pressure on loan spreads and the need to price deposits to fund loan growth could impact future margins. Limited buyback activity in the second quarter, with a cautious approach to share repurchases based on stock price. Q & A Highlights Warning! GuruFocus has detected 3 Warning Sign with FCF. Q: Did you provide a guidance range for expenses in the third quarter or the back half of the year? A: No specific guidance was given, but the consensus for the third quarter is $72.8 million and $73.1 million for the fourth quarter. There might be a slight tail-off in expenses and non-interest income in the fourth quarter due to seasonality, but they generally offset each other. Expenses are expected to bounce back in the first quarter of next year. - Jim Moreski, CFO Q: What is your approach to stock repurchases given the current stock price and new authorization? A: We plan to re-enter the market after the blackout period, setting a price cap for buybacks. Previously, we set a cap at $15.50 per share, but with the current higher prices, we might set it around $17. We aim to keep some dry powder for dips in the price rather than buying back shares at any cost. - Jim Moreski, CFO Q: Can you provide more color on the loan that drove the increase in non-performing loans (NPLs) and the outlook for charge-offs? A: The increase in NPLs was primarily due to a single commercial floor plan loan. Charge-offs have been at acceptable levels, and absent the one large relationship, we expect to return to a mid-20 basis point charge-off range. - Brian Sahoi, Chief Credit Officer Q: How are you thinking about mergers and acquisitions (M&A) given the current industry environment? A: We are open to smaller deals that offer low-risk execution and can be leveraged into something more significant. We have looked at many opportunities but tend to bow out on larger deals due to pricing. Our focus remains on strategic, smaller acquisitions that align with our business model. - Mike Price, President and CEO Q: What is the outlook for organic loan growth, particularly in the equipment finance portfolio? A: The pipeline looks strong, although there might be more payoffs in the third quarter. Equipment finance has shown good momentum, and while we expect the portfolio to flatten out in about a year and a half, we are pleased with the credit quality and assets being financed. - Mike Price, President and CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Best Income Stocks to Buy for July 17th
Here are three stocks with buy rank and strong income characteristics for investors to consider today, July 17th: Kimbell Royalty Partners, LP KRP: This oil and gas mineral and royalty company has witnessed the Zacks Consensus Estimate for its next year earnings increasing 83.3% over the last 60 days. This Zacks Rank #1 company has a dividend yield of 13.3%, compared with the industry average of 7.6%. Kimbell Royalty Dividend Yield (TTM) Kimbell Royalty dividend-yield-ttm | Kimbell Royalty Quote MAG Silver Corp. MAG: This precious metal company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days. This Zacks Rank #1 company has a dividend yield of 1.1%, compared with the industry average of 0.2%. MAG Silver Corporation Dividend Yield (TTM) MAG Silver Corporation dividend-yield-ttm | MAG Silver Corporation Quote First Commonwealth Financial Corporation FCF: This banking company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days. This Zacks Rank #1 company has a dividend yield of 3.3%, compared with the industry average of 2.7%. First Commonwealth Financial Corporation Dividend Yield (TTM) First Commonwealth Financial Corporation dividend-yield-ttm | First Commonwealth Financial Corporation Quote See the full list of top ranked stocks here. Find more top income stocks with some of our great premium screens. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MAG Silver Corporation (MAG): Free Stock Analysis Report Kimbell Royalty (KRP): Free Stock Analysis Report
Yahoo
30-06-2025
- Business
- Yahoo
Why First Commonwealth Financial (FCF) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Headquartered in Indiana, First Commonwealth Financial (FCF) is a Finance stock that has seen a price change of -3.37% so far this year. Currently paying a dividend of $0.14 per share, the company has a dividend yield of 3.3%. In comparison, the Banks - Northeast industry's yield is 2.77%, while the S&P 500's yield is 1.58%. Taking a look at the company's dividend growth, its current annualized dividend of $0.54 is up 4.9% from last year. In the past five-year period, First Commonwealth Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.10%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First Commonwealth Financial's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend. FCF is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $1.43 per share, with earnings expected to increase 2.14% from the year ago period. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that FCF is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Commonwealth Financial Corporation (FCF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
24-06-2025
- Business
- Yahoo
FCF Q1 Deep Dive: Loan Growth, Deposit Discipline, and Tariff Uncertainty Shape Outlook
Regional banking company First Commonwealth Financial (NYSE:FCF) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 1.2% year on year to $118 million. Its non-GAAP profit of $0.32 per share was in line with analysts' consensus estimates. Is now the time to buy FCF? Find out in our full research report (it's free). Revenue: $118 million vs analyst estimates of $117.3 million (1.2% year-on-year growth, 0.6% beat) Adjusted EPS: $0.32 vs analyst estimates of $0.32 (in line) Market Capitalization: $1.66 billion First Commonwealth Financial's first quarter results showed modest year-over-year growth, with management citing healthy loan origination and disciplined deposit cost control as key factors. Net interest margin improved, aided by falling deposit costs despite ongoing deposit growth. CEO Mike Price highlighted that the bank's focus on expanding its commercial lending teams and equipment finance group contributed to growth momentum, while fee income softened due to fewer gains on sale and seasonal factors. The quarter's efficiency ratio rose as operating expenses increased, primarily from incentive compensation and investments in talent. Management described consumer credit trends and asset quality as stable, though they acknowledged headwinds from tariffs and inflation uncertainty. Looking ahead, management's forward guidance centers on continued loan growth, stable to improving credit quality, and cautious optimism regarding deposit trends. CFO James Reske stated that net interest margin should expand through the year, primarily due to expiring macro swaps and a conservative approach to deposit cost assumptions. The acquisition of CenterBank is expected to provide operational efficiencies and expand the bank's reach in Cincinnati. CEO Mike Price noted that, while tariff-related risks could impact client sentiment and loan demand, the commercial pipeline remains robust and fee businesses are expected to recover as the year progresses. Management emphasized a focus on disciplined cost management and leveraging new talent to drive both growth and efficiency. Management attributed quarterly momentum to targeted investments in lending teams, expanding equipment finance, and ongoing cost control, while addressing the impact of tariffs and shifting deposit trends. Commercial loan expansion: Growth in commercial and equipment finance loans was a central driver, supported by new hires and market share gains as some larger competitors retreated from the space. Management indicated that loan pipelines remain strong heading into the second quarter. Deposit cost management: Despite growing deposits at a healthy pace, the bank succeeded in reducing deposit costs, resulting in a sequential increase in net interest margin. Executives explained this was achieved through proactive rate management and customer retention strategies, particularly as customers shifted funds from certificates of deposit (CDs) to savings and money market products. Fee income softness: Fee income declined quarter-over-quarter, impacted by seasonal effects and a slowdown in Small Business Administration (SBA) gains on sale. However, management expects fee businesses such as wealth, insurance, and service charges to improve in coming quarters as underlying pipelines recover. Expense increases: Operating expenses rose, mainly due to incentive compensation related to the prior year and investments in commercial and equipment finance teams. Management views these investments as necessary for supporting future revenue growth and building out capabilities in key markets. Tariff and macroeconomic uncertainty: The introduction of new tariffs and ongoing inflation concerns were cited as sources of external uncertainty. While management reported that most clients have adapted their supply chains and pricing strategies, certain sectors, such as manufacturing and chemicals, could face headwinds if trade tensions persist. Management's outlook for the remainder of the year is shaped by expectations of further net interest margin expansion, disciplined expense management, and the integration of CenterBank. Net interest margin expansion: Executives expect net interest margin to improve through the year, driven by the expiration of macro swaps and a conservative approach to deposit rate reductions. The NIM forecast assumes stable aggregate deposit costs, with upside potential if market conditions allow for further reductions. Expense discipline and talent integration: Management plans to maintain a tight focus on non-interest expense, even as new hires from CenterBank and recent investments in lending teams are integrated. Opportunities for further efficiency gains are being evaluated for the second quarter. Tariff and credit headwinds: While the commercial loan pipeline remains strong, management acknowledges that sustained tariff uncertainty and the potential for renewed inflation could dampen business investment and loan demand. They are monitoring credit quality closely, especially in exposed sectors, but see current asset quality as stable. In coming quarters, our analysts will be monitoring (1) the integration and operational impact of the CenterBank acquisition in Cincinnati, (2) the trajectory of net interest margin as macro swaps expire and deposit costs evolve, and (3) the resilience of loan origination pipelines in the face of tariff-related economic headwinds. Progress in fee income recovery and cost containment will also be key signposts for sustained performance. First Commonwealth Financial currently trades at $15.87, up from $15.29 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
12-06-2025
- Business
- Yahoo
First Commonwealth Financial (FCF) is a Top Dividend Stock Right Now: Should You Buy?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Indiana, First Commonwealth Financial (FCF) is in the Finance sector, and so far this year, shares have seen a price change of -5.85%. Currently paying a dividend of $0.14 per share, the company has a dividend yield of 3.39%. In comparison, the Banks - Northeast industry's yield is 2.82%, while the S&P 500's yield is 1.55%. Looking at dividend growth, the company's current annualized dividend of $0.54 is up 4.9% from last year. Over the last 5 years, First Commonwealth Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.10%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. First Commonwealth Financial's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend. Looking at this fiscal year, FCF expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.43 per share, which represents a year-over-year growth rate of 2.14%. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout. For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that FCF is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Commonwealth Financial Corporation (FCF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
