Central Bancompany third-quarter net income rises to $116.2 million from a year earlier

Central Bancompany, Inc. (CBC) said Tuesday that third-quarter 2026 net income rose 19.7% from a year earlier to $116.2 million, according to an earnings release attached to a regulatory filing.

Diluted earnings per share were $0.48, up from $0.44 a year earlier. Adjusted net income, which excludes investment securities gains and losses, rose 13.4% to $116.1 million.

Here's how the company did:

• Net income: $116.24 million vs. $97.10 million a year earlier
• Diluted earnings per share: $0.48 vs. $0.44 a year earlier
• Total revenue: $285.66 million vs. $255.94 million a year earlier
• Net interest income: $218.86 million vs. $198.87 million a year earlier
• Noninterest income: $66.80 million vs. $57.07 million a year earlier

Net interest income rose 10.0% to $218.9 million. The net interest margin widened to 4.48% from 4.36% a year earlier.

The company said the margin increase was driven by higher loan and securities yields, continued loan growth, a favorable earning asset mix, and lower balances of interest-earning cash. Average earning assets grew 7.1% year over year to $19.4 billion.

Average total deposits rose 4.4% to $15.4 billion, with noninterest-bearing deposits up 6.2% from a year earlier. The cost of deposits fell 8 basis points from the prior year quarter to 1.11%.

The provision for credit losses was $4.0 million, up 14.2% from the prior quarter. The company attributed the increase primarily to loan growth. The allowance for credit losses ended the quarter at $150.9 million, or 1.29% of loans held for investment.

Total noninterest income rose $9.7 million, or 17.0%, to $66.8 million. Adjusted noninterest income grew 4.0% to $66.6 million.

Wealth management services revenue increased 16.7% to $23.6 million, and assets under advice grew 13.8% to $17.5 billion. Mortgage banking revenues fell 14.3% to $8.8 million, which the company attributed to reduced origination volumes in the higher interest rate environment.

Noninterest expense was $131.0 million, up 3.2% from a year earlier. Salaries and employee benefits rose 6.3% to $80.0 million, primarily due to annual merit increases and higher performance-based compensation.

The efficiency ratio (FTE), a measure of noninterest expense as a share of revenue on a fully taxable-equivalent basis, improved to 45.4% from 47.7% a year earlier. The provision for income taxes was $34.4 million, and the effective tax rate was 22.8%.

Nonperforming assets were $66.0 million, or 33 basis points of total assets, compared with 30 basis points a year earlier. Net charge-offs were $3.6 million, or 12 basis points of average total loans on an annualized basis.

The common equity tier 1 ratio was 29.1%. The company said that represented $2.0 billion of excess capital above its long-term target of 13.5%.

Book value per share was $16.04 and tangible book value per share was $14.58, of which $8.28 per share was attributable to excess capital, the company said.

Dividends per share were $0.12 for the quarter, up 118.2% from $0.06 a year earlier. The company said it executed $3.8 million of its $100 million share repurchase authorization in the third quarter at an average price of $31.02.

The release did not include a new financial outlook for the fourth quarter.

The company also said Matthew Adams has been named President and CEO of its Oklahoma market. Brandy Bryant, formerly a Mid-Missouri market CEO, has assumed a new enterprise leadership role focused on consumer and small business credit products and processes.

John “JR” Ross, President and Chief Executive Officer of Central Bancompany, said: “We delivered another strong quarter, supported by continued balance sheet growth, disciplined expense management, and solid credit quality.” He added that the results “reflect the resilience of our business model, the strength of our customer relationships, and the dedication of our associates across all of our markets.”

Ross also said lower mortgage banking revenues partially offset the year-over-year gains.

The company furnished a presentation for a conference call on the results at 9:00 a.m. Central time on Tuesday.