CBC

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 10:00 a.m. ET President and Chief Executive Officer - John Ross Chief Financial Officer - James Ciroli Chief Customer Officer - Dan Westhues Chief Credit Officer - Eric Hallgren Operator: Good day, and thank you for standing by. Welcome to the Central Bancompany Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, John Ross, President and CEO. Please go ahead. John Ross: Thank you, operator. Good morning, and thank you for joining us for Central Bancompany's Second Quarter Earnings Call. With me in the room today is our Chief Financial Officer, Jim Ciroli, Chief Customer Officer, Dan Westhues; and Chief Credit Officer, Eric Hallgren. As a reminder, I'd like to point out that the discussion today is subject to the same forward-looking considerations outlined on Page 4 of our press release. Today, we plan to again briefly provide some details on second quarter highlights before opening the line for questions. I'd like to begin with some nonfinancial updates for the second quarter. We opened 3 new full-service branches during the second quarter, 1 in St. Louis and 2 in Colorado, as part of our growth strategy in underpenetrated metro markets. Our Kansas City teammates were also busy welcoming World Cup fans and putting exclusive Soccer Capital of America debit cards in their wallets. But more than anything, I guess, you could say it was business as usual here at Central Bank. I'd like to thank the nearly 3,000 full-time employees across our organization for their continued efforts, providing legendary service to our clients and communities. I will now turn it over to Jim to cover a few financial highlights. James Ciroli: Thank you, JR. Net income of $113.8 million for the quarter or $0.47 per share produced a return on average assets of 2.24%. Relative to the second quarter of 2025, adjusted net income increased by $15.4 million or 16%. Net interest income increased $17.7 million over the prior year quarter with average earning assets up $1.1 billion, and net interest margin on an FTE basis expanding 13 basis points to 4.43%. Loan yields over the past year have been relatively stable despite a decline in short-term rates and a mixing of the consumer portfolio into lower-yielding, but lower-risk mortgage loans and out of the higher-yielding consumer loans where we're being more selective. During the quarter, our cost of deposits declined 3 basis points due mostly to a lower level of public fund deposits. We expect the public fund deposits will continue to decline seasonally in Q3 before increasing in Q4. Our core fee income ratio was 24.5%, reflecting seasonality and continued growth in noninterest income, a remarkable achievement considering the increase in net interest income. During the quarter, we participated in Visa's shares exchange offer, converting a portion of our Class B shares and recognizing a gain of $8.4 million. Additionally, we took advantage of higher rates to marginally reduce our asset sensitivity by selling $210 million in shorter-duration securities, taking a loss of $7.8 million, and reinvesting the proceeds in medium-term duration securities with a 250-basis-point pickup in yield. We posted an FTE efficiency ratio of 46.1%. On a linked-quarter basis, we typically experience more of an expense increase moving from Q1 to Q2. The largest component of this increase was salary and benefits. Last year, we had a 4.9% linked quarter increase. This year, we saw a similar increase of 5.3%. While our merit raises drive most of this increase, this quarter, we had the impact of; a, deferred compensation expense, which totaled $1 million with an equal offset in other noninterest income; and b, higher performance-related compensation. Mortgage commissions were $1.0 million seasonally higher in Q2. Commissions are recognized when loans close, so 1Q commission expense related to the revenue from December through February, the lowest volume part of the year. Our asset quality remained consistent with just 10 basis points of net charge-offs again this quarter. Our NPA ratio picked up slightly as we downgraded one small commercial loan into nonperforming status at the end of the quarter. Delinquencies were only 22 basis points of total loans, a decline from the prior quarter, driven by improvement in commercial loans and consumer credit cards. Lastly, capital levels at the holding company remained well above target with approximately $1.9 billion of excess capital or $7.98 per share. We announced this morning that our Board refreshed our stock buyback authorization to $100 million, which replaces the $11 million remaining on the buyback authorization we announced in February. While we have been pleased to see our stock outperform the market in the second quarter, we still see value at current levels, and we'll continue to be opportunistic with our new authorization. With that, I'd like to open the line for questions. Lisa? Operator: [Operator Instructions] Our first question will be coming from the line of Man Gosalia of Morgan Stanley. Manan Gosalia: You guys saw a really -- some nice pickup in commercial loan growth in the second quarter. The comments in your deck sounded pretty positive as well. Does it feel there's more room for loan growth to pick up here based on some of the trends that you're seeing in your footprint? James Ciroli: Yes, Man. Loan growth was pretty broad-based during the quarter. And look, net of the decline in other consumer loans, which, as I mentioned in my prepared remarks, we're deemphasizing and being selective, we grew at a 6.5% annualized pace this quarter and finished the quarter with an ending balance higher than our average balance. So carrying some nice momentum into the second quarter. So we continue to see good opportunities. The pipelines are robust and similar to what they were, I'd say, in the first half of 2025. Manan Gosalia: Got it. And maybe on the other side of the balance sheet, as you think about deposit costs overall, any trends you noticed as you went through the quarter? Is deposit competition picking up in your footprint? And I guess how do you expect that to trend from here given the positivity on the lending side? James Ciroli: I think price competition in yield-seeking deposits is always intense, but that's not necessarily where we compete. We were really trying to go out there and win primacy of our customers and our communities. So we're out there trying to grow noninterest-bearing deposits. And you know there's seasonality in our deposit numbers. So the best way to look at this is on a year-over-year basis, where you can see total deposits are up 3%, but if you look at just noninterest bearing on a year-over-year basis, so taking the seasonality out of it, they're up 5%. So I think in terms of price competition, where we really don't compete, it's intense, but where we compete in terms of service and looking for primacy of our customers, I think we're doing quite well as you can see with that 5% year-over-year growth. Operator: The next question is coming from the line of Chris McGratty of KBW. Christopher McGratty: The question is on M&A. Obviously, your stock has done well. I'm interested in kind of an update on the conversations, pipelines, willingness to transact? John Ross: Chris, you're kind of cutting in and out. Just to make sure, your question is about M&A and whether the dialogue or the nature has changed in the backdrop of stock price moving around? Christopher McGratty: That's right. Yes. John Ross: Yes. No real change on our end. I mean, as you know, the discipline that we've communicated is predicated on absolute valuations, and so the market moves don't make a substantial move. I would also note that we're trying to do a little bit different type of deal, all things that we communicated in the IPO. So no update on our strategy. We mentioned last time maybe a little bit change in our tactics in terms of the velocity and formality of our approaches to these high-quality banks that we're pursuing. But there is no update on the status of any of those, and we look forward to the time when we can update you on the status of those, but there's nothing to report at this time. Christopher McGratty: Okay. Great. And then, Jim, you touched on the one downgrade of the commercial loan in the quarter. Any additional color you could place on that? James Ciroli: I don't think there's any real -- look, it's a small loan. When you look at our portfolio, our median size is $150,000, right? So it was bigger than that, but it's, in the overall scheme of things, [indiscernible]. $11.5 billion, close to $12 billion portfolio, it's a really small shift. There's no trends that we're seeing in the portfolio. There's nothing really going on, but let me turn it over to Eric and see if there's anything... Eric Hallgren: Yes. I think the only thing I would add on that one in particular, it is very specific to the situation of the borrower and really not indicative of any shift in kind of asset quality of like-kind assets or collateral position. So we feel pretty good it's isolated and don't see a significant trend or shift in kind of risk profile going forward. Operator: Next question. Our next question is coming from the line of Matt Olney of Stephens. Matt Olney: I want to ask about loan yields in the second quarter. Didn't see any movement there. We've talked previously about that fixed rate loan repricing tailwinds, just curious if there's any update there? James Ciroli: I appreciate the question, Matt. Look, the price competition on the loan side for the really best loans that we're seeing is intense and maybe even intensifying. I'd say that during the quarter, there were a lot of things. So we still have the back book repricing. And at the end of the quarter, we have $1.3 billion of repricing to go in the second half of the year and rolling off the same yield we signaled last quarter of 5.8%. During the quarter, the benefits of those repricing, I think, were offset by a few things. One, I mentioned in my prepared remarks in that we're continuing to mix down into lower-yielding, but lower-risk content loans away from the indirect other consumer loans that we have on our balance sheet, which yield much higher and so that contributed to -- that offset some of the tailwind effects of that back book repricing. Also, from a overall macro environment sense, rates in the intermediate term, which is where our -- where mostly have fixed rate loans on our balance sheet. So we're particularly sensitive to rates in the 2- to 5-year zone of the curve, and those picked up sharply during the quarter. And what we've witnessed and what I've witnessed in my nearly 40 years of banking is, when rates rise sharply, generally, you've been talking with your customer about a certain rate and so spreads compress a little bit on you. So if rates are slight -- are stable from here or maybe even slightly down from here, I think that will reverse itself in the in the future, time will tell. And we continue to be somewhat protective of our top customers. And so, over time, I think that will -- we'll see where that goes. But we're also being protective of our very best customers in making sure they get our very best rates. Matt Olney: Okay. Appreciate the color on that, Jim. And then just as a follow-up, I guess, just taking a step back on the net interest margin, any other puts and takes you would offer up? You mentioned the securities portfolio and the restructuring there. It feels like yields could move higher. Any other puts and takes on the margin we should keep in mind for the back half of the year? James Ciroli: Great question, Matt. I think to your point, I see the opportunity for loan yields to continue to grind higher because of that back book repricing effect. I think some of the things we saw this quarter will attenuate in the future. And I also think, on the other side of the balance sheet, we would expect to see, on a seasonally adjusted basis, deposit costs relatively stable in the future. And that's looking at -- not trying to predict rates, but I don't see our deposits being particularly price sensitive. So I would say deposit costs on a seasonally adjusted basis are going to be largely stable. Operator: [Operator Instructions] Our next question is coming from the line of Adam Kroll of Piper Sandler. Adam Kroll: I'm on for Nate Race. Maybe just starting out, just given your profitability profile, you've been growing capital at pretty strong clips. And obviously, buybacks came down during the quarter. And I appreciate your comments on buybacks. But with the new authorization, I was wondering if you could provide a little more color on appetite at shares' current levels? James Ciroli: We're very happy with where the stock is, Adam. The authorization we feel is an appropriate tool in our toolbox and being that we authorized $50 million earlier in the year, spent $39 million of that, so had $11 million left, and in spending $39 million of that really saw no diminishing of liquidity in the market. So we wanted to come back and resize that authority to a level that we thought was more appropriate for where we are. We expect to be opportunistic in the future about utilizing that authorization. John Ross: The only thing I would add to your specific question about valuation, Jim did put a Page 13 in our investor deck that you can take a look at that helps you see how we think about value. And given that we continue to trade at a discount to our peers, we see value here. We'll, as Jim alluded to, always weigh that against other opportunities we have, whether that's in M&A or concerns or lack of concerns about the liquidity in our stock, but we kind of put all of those things in a blender and will be -- continue to be opportunistic in our purchases. James Ciroli: That's right. We look at a certain group of high-performing peers that we compare ourselves to, and we feel like when you look at the metrics of those high-performing peers and compare those to Central, you're going to find that we trade at or near the top -- we perform at or near the top of all those metrics. So we believe we're worthy of a P/E ratio that reflects that outperformance. Adam Kroll: Got it. I appreciate the color there, John. And maybe moving to the fee income side of things, specifically in wealth management. I thought there was some really nice fee and AUA growth during the quarter. I guess I was curious how much was driven by market appreciation versus new client inflows? James Ciroli: So I think the best metric to look at is on a year-over-year basis. And so we ended the quarter with $17.3 billion of AUA. A big piece of that is market-driven, and not only market driven, but performance-driven as well because our team does a really good job against their relative benchmarks and outperforming those benchmarks. Over the past year, we've seen really good net new increases inflows into our wealth management platform and that continues to portend well for the future. We saw some -- we also saw some nice fee pickup at the client level. John Ross: The only thing I'd add is, we probably mentioned previously, we were going to be launching a private bank initiative that has been launched now and is showing good early day returns and adding to that AUM, but too early to really call the success of that, but it is a contributor. Operator: And there are no more questions in the queue. I would like to turn the call back over to management for closing remarks. John Ross: Thank you, operator. I have 9:19 as time here, Central Time, which I think is a personal best. I will attribute that to the wisdom of our analysts. But we are pleased to deliver another solid set of results this quarter and appreciate those on the line joining us this morning. We do look forward to any opportunity to serve you better as we mature as a public company. Thanks again, and we will talk to you next quarter. Operator: Thank you for participating. This concludes today's program. You may now disconnect. Before you buy stock in Central Bancompany, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Central Bancompany wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Central Bancompany (CBC) Q2 2026 Earnings Call was originally published by The Motley Fool

Second Quarter 2026 Financial Highlights Net income of $113.8 million, or $0.47 per fully diluted share, compared to $111.1 million and $0.46 in the prior quarter and $91.4 million, or $0.41 per fully diluted share in the prior year quarter Net interest income of $212.8 million, reflecting a net interest margin (“NIM”) of 4.40% compared to 4.32% in the prior quarter and 4.26% in the prior year quarter Average total loans held for investment of $11.6 billion, quarterly increase of $0.1 billion, or 3.9% annualized, from the prior quarter Average total deposits of $15.4 billion, an increase of $0.4 billion or 3.0% from prior year quarter Return on average assets (“ROAA”) of 2.24% Efficiency ratio of 46.5% and efficiency ratio (FTE)1 of 46.1% JEFFERSON CITY, Mo., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Central Bancompany, Inc. (Nasdaq: CBC) (“Central Bancompany”, “the Company”, or “CBC”), the bank holding company for The Central Trust Bank (the “Bank”), today announced preliminary financial results for the second quarter 2026. John “JR” Ross, President and Chief Executive Officer of Central Bancompany, commented "We are pleased to announce another set of solid financial results for Central in the second quarter of 2026. Second quarter net income was $113.8 million, or $0.47 per fully diluted share, reflecting a 2.24% ROA and a 25% fee income ratio, despite continued growth in net interest income. We are again encouraged by loan growth in the quarter, with ending loans excluding other consumer up approximately 6% annualized quarter-over-quarter. Average deposits grew by $0.4 billion, or 3%, including growth of over $276 million in average noninterest-bearing demand balances from the prior year quarter’s balances.” “Our second quarter financial results reflect the strength of our diversified and customer-centric business model,” Ross continued. “We are fortunate to report another quarter of steady growth heading into the second half of the year. We also continue to invest in our underpenetrated metro markets, opening three new full-service branches during the second quarter to support our long-term growth strategy. While economic conditions remain generally favorable, we are mindful that uncertainty persists across the macroeconomic and geopolitical landscape. I would like to thank our teammates for their tireless efforts delivering for our clients, communities and fellow shareholders.” Net Interest Income and Net Interest Margin The Company reported net interest income of $212.8 million in the second quarter of 2026, reflecting a net interest margin of 4.40% (4.43% on an FTE basis1). Net interest income increased $17.7 million from the second quarter of 2025, driven by NIM expansion and solid underlying average earning asset growth of $1.1 billion, or 6%, resulting from deposit growth and higher capital. In the second quarter of 2026, loans grew at an annualized rate of 6%, excluding the reduction in other consumer loans, and net interest margin increased to 4.40% from 4.26% in the prior year quarter. Average earning assets for the quarter totaled $19.4 billion, a decrease of $0.2 billion, or 1%, from the prior quarter. The decrease in average earning assets from the prior quarter was largely driven by a seasonal decrease in average deposits. Average total loans held for investment were $11.6 billion for the second quarter of 2026, an increase of $0.1 billion, or 1% from the prior quarter, despite deemphasizing indirect consumer lending, which declined $37.8 million from the prior quarter’s average. Excluding other consumer loans, average total loans held for investment increased $177.6 million or 2% over the prior quarter due to loan growth spread across a number of categories and markets. Total loans ended the quarter at $11.7 billion, $92 million above the average for the quarter, reflecting continued loan growth momentum. Average total deposits were $15.4 billion for the second quarter of 2026, an increase of $0.4 billion, or 3% from prior year quarter. The increase from the prior year quarter was driven by higher noninterest bearing deposits, which rose $0.3 billion, or 5%, and interest bearing non-maturity deposits, which were up $0.3 billion or 4%. The cost of deposits was 1.10% for the second quarter of 2026, a decrease of 9 basis points from the prior year quarter. The net interest margin increased to 4.40%, an increase of 13 basis points from the prior year quarter and 8 basis points from the prior quarter. The increase from the prior year quarter was driven primarily by increases in deposits and capital that were deployed into securities, the continued repricing of our back book of loans and securities into a higher rate environment, and a reduction in deposit rates despite the competitive environment. The increase from the prior quarter was driven primarily by an increase in loan balances and a decrease in higher priced, seasonal deposit balances. Provision for credit losses The provision for credit losses was $3.5 million for the second quarter of 2026, an increase of 12.4% from the prior quarter driven primarily by loan growth and net charge-offs of $3.0 million. The allowance for credit losses ended the quarter at $150.4 million, up slightly from the prior quarter end and representing 1.29% of loans held for investment. The allowance rate reflects continued stable credit quality trends and an ongoing shift in portfolio composition toward higher credit quality loans. Noninterest income Total noninterest income was $69.6 million for the second quarter of 2026, an increase of $19.5 million or 38.9% from the prior year quarter, reflecting higher wealth management revenues and solid growth in other fee revenue channels. The prior year quarter included the $13.6 million impact of the loss on the expected sale of consumer lease portfolio in other income. During the current quarter, we recognized $8.4 million of gains from our holdings of Visa B shares and selectively repositioned certain securities at a $7.8 million loss to take advantage of attractive opportunities in the market. Wealth management revenues (revenue from brokerage services and fees for fiduciary services) increased $3.9 million, or 20%, over the prior year quarter and $1.0 million from the prior quarter. Assets under advice increased to $17.3 billion, up from $14.2 billion in the prior year quarter and $16.0 billion in the prior quarter. Noninterest expense Noninterest expense totaled $131.4 million for the second quarter of 2026, an increase of $4.6 million from the second quarter 2025. On a year over year basis, salaries and benefits expenses increased $5.3 million, or 7%. Similar to last quarter, the year over year increase was attributable to merit and other salary increases and higher compensation costs associated with higher levels of performance. Additionally, in the second quarter, there was a $1.0 million expense for certain deferred compensation plans, with an equal offset in other noninterest income. All other expense categories were generally well managed compared to the prior year period, with modest increases in occupancy and technology costs consistent with continued investment in our branch network and infrastructure. The prior year quarter contained $1.9 million of residual value losses in the consumer lease portfolio in other expenses. Our efficiency ratio (FTE)1 was 46.1% for the quarter, compared to 45.7% in the prior quarter and 48.4% in the second quarter of the prior year, underscoring continued expense discipline and revenue tailwinds. Provision for income taxes The second quarter 2026 provision for income taxes was $33.7 million, $0.8 million higher than the prior quarter primarily driven by the increase in book income quarter over quarter. The current quarter’s effective tax rate of 22.8% is consistent with the effective tax rate for prior periods. Asset quality Asset quality remained strong. Nonperforming assets at June 30, 2026 were $60.2 million, or 30 basis points of total assets, up only slightly from 28 basis points at the end of the prior year quarter. Net charge-offs were $3.0 million for the quarter, 10 basis points (annualized) of average total loans. Credit costs remained in line with prior quarters. Delinquent loans at June 30, 2026 were $25.3 million, or 22 basis points of loans held for investment, as compared to 24 basis points at the end of the prior year quarter. Capital Capital levels at June 30, 2026 remained very strong. Our CET1 ratio was 28.6% and represented $1.9 billion of excess capital when compared to our long-term CET1 target of 13.5%. The Bank’s CET1 ratio was 12.7% at June 30, 2026. The difference in the consolidated capital ratio and the capital ratio at the Bank represents capital that is readily available to be deployed. Our book value per share at June 30, 2026 was $16.14, whereas our tangible book value per share1 was $14.68, of which $6.70 per share represents core tangible book value, with the remaining $7.98 per share attributable to excess capital. Dividend Payout and Capital Actions On August 3, 2026, the Board of Directors of the Company declared a cash dividend of $0.12 per common share payable on September 1, 2026 to stockholders of record as of the close of business on August 21, 2026. The Company repurchased approximately 280,000 shares of common stock during the second quarter of 2026 for approximately $7.6 million. On August 3, 2026, the Company’s Board of Directors authorized the repurchase of up to $100 million of the Company’s Class A common stock, rescinding and replacing the prior authorization. Conference Call and Webcast Information The Company will host a conference call and webcast at 9:00 a.m. CT on Tuesday, August 4, 2026. The call may include discussion of Company developments, forward-looking statements and other material information about business and financial matters. This press release and a related slide presentation will be accessible on the Company’s investor relations website https://investor.centralbank.net. The call can be accessed via this same website or by using the following link: https://edge.media-server.com/mmc/p/fgiw74rw/. A recorded replay of the conference call will be available on the website after the call’s completion. About Central Bancompany, Inc. Central Bancompany, Inc. is a bank holding company headquartered in Jefferson City, Missouri, with approximately $20.3 billion in assets as of June 30, 2026. Its banking subsidiary, The Central Trust Bank, has been serving businesses and customers since 1902. The bank is built on a strong foundation of people, community service, and technology. The Central Trust Bank is a Missouri state-chartered trust company with banking powers and a Federal Reserve state member bank, serving consumers and businesses in Missouri, Kansas, Oklahoma, Colorado, and Florida. Divisions of The Central Trust Bank include Central Trust Company and Central Investment Advisors. Non-GAAP Financial Information In this release, we provide information about certain non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (“GAAP”) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures and the nearest comparable GAAP financial measures are reconciled later in this release. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. _________________________ 1This is a non-GAAP financial measure management believes is helpful to understanding trends in our business that may not be fully apparent based only on the most comparable GAAP financial measure. Further information on this financial measure and a reconciliation to the most comparable GAAP financial measure is provided at the end of this release. Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have based the forward-looking statements contained herein on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in “Cautionary Note Regarding Forward-Looking Statements,” Part I Item 1A - "Risk Factors" and Part II Item 7 - "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2025 Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. These forward-looking statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Current quarter, prior quarter and prior year quarter information is provided on pages 5-8 below. Non-GAAP Financial Measures Reconciliations In this release, we provide information about certain non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. We disclose net interest income and related ratios and analysis on a fully taxable-equivalent (“FTE”) basis, which may be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis. We evaluate our profitability and performance based on adjusted net income, adjusted total revenue, adjusted noninterest income, adjusted fee income, adjusted fee income ratio and adjusted return on average total assets. We adjust each of these measures to exclude the loss on the expected sale of the consumer loan portfolio in one of our markets and adjustments that resulted from certain investment portfolio repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this allows investors to assess our net income, total revenue and noninterest income exclusive of the impact of changes outside the ordinary course of business. Similarly, we evaluate our operational efficiency based on tangible noninterest expense and our adjusted efficiency ratio, which excludes the effect of amortization of intangibles (a non-cash expense item) as well as the exclusions mentioned previously in this paragraph, and includes the tax benefit associated with our tax-advantaged loans. We evaluate our financial condition based on the ratios of our tangible common equity to our tangible assets, tangible book value per share, return and adjusted return on average common equity, and return and adjusted return on average tangible common equity. Our calculation of these ratios allows readers to assess our stockholders’ equity, exclusive of the effect of our goodwill and other intangible assets. Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this release.

This article first appeared on GuruFocus. Net Income: $113.8 million for the quarter, or $0.47 per share, producing a return on average assets of 2.24%. Adjusted Net Income: Increased by $15.4 million, or 16%, relative to the second quarter of 2025. Net Interest Income: Increased $17.7 million over the prior year quarter, with average earning assets up $1.1 billion. Net Interest Margin (FTE): Expanded 13 basis points to 4.43%. Cost of Deposits: Declined 3 basis points during the quarter. Core Fee Income Ratio: 24.5%. Gain on Visa Shares Exchange: Recognized a gain of $8.4 million. Securities Sale: Sold $210 million in shorter duration securities, taking a loss of $7.8 million, and reinvested proceeds with a 250 basis point pickup in yield. Efficiency Ratio (FTE): 46.1%. Net Charge-Offs: 10 basis points. Delinquencies: 22 basis points of total loans, a decline from the prior quarter. Excess Capital: Approximately $1.9 billion, or $7.98 per share. Stock Buyback Authorization: Board refreshed authorization to $100 million, replacing the $11 million remaining. New Branches: Opened three new full-service branches during the quarter (one in St. Louis, two in Colorado). Warning! GuruFocus has detected 5 Warning Sign with CBC. Is CBC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Central Bancompany Inc (NASDAQ:CBC) reported a strong second quarter with net income of $113.8 million, a 16% increase year-over-year, and a return on average assets of 2.24%. Net interest margin expanded 13 basis points to 4.43%, driven by a $1.1 billion increase in average earning assets and a $17.7 million rise in net interest income. Loan growth was robust, with a 6.5% annualized pace (excluding consumer loans), and the company noted robust pipelines and momentum into the second half of the year. Asset quality remained solid, with net charge-offs at just 10 basis points and delinquencies declining to 22 basis points of total loans. The company has a strong capital position with approximately $1.9 billion in excess capital and refreshed its stock buyback authorization to $100 million, reflecting confidence in value. Non-interest-bearing deposits grew 5% year-over-year, indicating successful customer primacy strategies despite intense price competition in yield-seeking deposits. The company recognized an $8.4 million gain from Visa's share exchange offer and executed a securities restructuring that picked up 250 basis points in yield. Wealth management saw strong growth, with AUA reaching $17.3 billion, driven by market performance and net new client inflows, including early success from the new private bank initiative. The company experienced a slight increase in its NPA ratio due to one small commercial loan downgraded to non-performing status, though it was deemed isolated. Loan yields remained stable despite back-book repricing tailwinds, as the mix shifted to lower-yielding mortgage loans and intense price competition on new loans compressed spreads. Expenses increased on a linked-quarter basis, with salary and benefits up 5.3%, partly due to deferred compensation and higher performance-related compensation. The company took a $7.8 million loss on the sale of $210 million in shorter-duration securities to reduce asset sensitivity, which impacted quarterly results. Public fund deposits are expected to decline seasonally in Q3, which could pressure deposit costs and overall deposit balances. The company continues to trade at a discount to its high-performing peers, despite strong metrics, which may limit stock appreciation. M&A activity remains uncertain, with no updates on potential deals, and management noted that market moves do not significantly alter their disciplined approach. Q: You guys picked up in commercial loan growth in the second quarter. Does it seem there's more room for loan growth to pick up here based on some of the trends that you're seeing in your footprint?A: James Ciroli (CFO): Loan growth was pretty broad-based during the quarter. Net of the decline in other consumer loans, which we are de-emphasizing, we grew at a 6.5% annualized pace this quarter and finished the quarter with an ending balance higher than our average balance, carrying nice momentum. We continue to see good opportunities, and the pipelines are robust and similar to what they were in the first half of 2025. Q: I want to ask about loan yields in the second quarter. Didn't see any movement there. We've talked previously about that fixed-rate loan repricing tailwinds. Just curious if there's any update there.A: James Ciroli (CFO): The price competition on the loan side for the best loans is intense and maybe even intensifying. We still have the back-book repricing, with $1.3 billion of repricing to go in the second half of the year rolling off at a yield of 5.8%. However, the benefits were offset by a mix shift into lower-yielding but lower-risk mortgage loans and away from higher-yielding consumer loans. Additionally, intermediate-term rates picked up sharply during the quarter, which compressed spreads. If rates are stable or slightly down from here, I think that will reverse itself in the future. Q: Maybe on the other side of the balance sheet, as you think about deposit costs overall, any trends you noticed as you went through the quarter? Is deposit competition picking up in your footprint?A: James Ciroli (CFO): Price competition in yield-seeking deposits is always intense, but that's not necessarily where we compete. We are trying to win primacy of our customers and grow non-interest-bearing deposits. On a year-over-year basis, total deposits are up 3%, but non-interest-bearing deposits are up 5%, which shows we are doing quite well in terms of service and customer primacy. Q: The question is on M&A. Obviously your stock's done well. I'm interested in kind of an update on the conversations, pipelines, willingness to transact.A: John Ross (President and CEO): No real change on our end. The discipline we've communicated is predicated on absolute valuations, so market moves don't make a substantial difference. We are trying to do a little bit different type of deal, as communicated in the IPO. There is no update on the status of any of those, and there's nothing to report at this time. Q: Just given your profitability profile, you'll be growing capital at pretty strong clips, and obviously buybacks came down during the quarter. With the new authorization, I was wondering if you could provide a little more color on appetite at shares current levels?A: James Ciroli (CFO) and John Ross (President and CEO): We are very happy with the stock. The new $100 million authorization is an appropriate tool in our toolbox. We spent $39 million of the previous $50 million authorization and saw no diminishing of liquidity in the market. We continue to trade at a discount to our peers, so we see value here. We will weigh buybacks against other opportunities like M&A and will continue to be opportunistic in our purchases. Q: Taking a step back on the margin, any other puts and takes you would offer up? You mentioned the securities portfolio and the restructuring there. Any other puts and takes on the margin we should keep in mind for the back half the year?A: James Ciroli (CFO): I see the opportunity for loan yields to continue to grind higher because of the back-book repricing effect. Some of the things we saw this quarter will attenuate in the future. On the other side of the balance sheet, we would expect to see deposit costs relatively stable on a seasonally adjusted basis, as our deposits are not particularly price sensitive. Q: You touched on the one downgrade of the commercial loan in the quarter. Any additional color you could place on that?A: James Ciroli (CFO) and Eric Holgren (Chief Credit Officer): It's a small loan in the context of our nearly $12 billion portfolio. It is very specific to the situation of the borrower and really not indicative of any shift in asset quality of like-kind assets or collateral positions. We feel pretty good it's isolated and don't see a significant trend or shift in risk profile going forward. Q: Moving to the fee income side of things, specifically in wealth management, I thought there was some really nice fee and AUA growth during the quarter. How much was driven by market appreciation versus new client inflows?A: James Ciroli (CFO) and John Ross (President and CEO): We ended the quarter with $17.3 billion of AUA. A big piece of that is market-driven and performance-driven, as our team outperforms their relative benchmarks. Over the past year, we've seen really good net new increases in flows into our wealth management platform. We also launched a private bank initiative that is showing good early returns and adding to that AUM, though it's too early to call its success. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Central Bancompany (CBC), which belongs to the Zacks Banks - Northeast industry. When looking at the last two reports, this bank holding company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.36%, on average, in the last two quarters. For the most recent quarter, Central Bancompany was expected to post earnings of $0.44 per share, but it reported $0.46 per share instead, representing a surprise of 4.55%. For the previous quarter, the consensus estimate was $0.46 per share, while it actually produced $0.47 per share, a surprise of 2.17%. For Central Bancompany, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Central Bancompany has an Earnings ESP of +2.08% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 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 Central Bancompany (CBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Income: $111.1 million, or $0.46 per fully diluted share. Return on Average Assets: 2.2%. Net Interest Margin (NIM) on FTE Basis: 4.36%. Efficiency Ratio on FTE Basis: 45.7%. Net Income Increase: $16.3 million, or 17% compared to Q1 2025. Net Charge-Offs: 10 basis points. Allowance Coverage: 130 basis points of total loans. Loan Growth: Nearly 6% annualized quarter-over-quarter, excluding other consumer loans. Average Deposits Growth: 5% year-over-year. Excess Capital: Approximately $1.9 billion, or $7.80 per share. Share Repurchase: $32 million worth of shares repurchased. Warning! GuruFocus has detected 3 Warning Sign with CBC. Is CBC fairly valued? Test your thesis with our free DCF calculator. Release Date: April 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Central Bancompany Inc (NASDAQ:CBC) was recognized as one of America's best banks by Forbes and the best-performing U.S. public bank with more than $10 billion in assets by S&P Global Market Intelligence. Net income for the first quarter of 2026 increased by 17% compared to the first quarter of 2025, reaching $111.1 million. The company reported a strong return on average assets of 2.2% and a net interest margin (NIM) on an FTE basis of 4.36%. Capital levels remained robust, with approximately $1.9 billion of excess capital, allowing for a meaningful increase in quarterly dividends and share repurchases. Loan growth showed positive momentum, with a nearly 6% annualized increase quarter-over-quarter, excluding other consumer loans. Loan yields decreased by three basis points due to lower loan fees, although this was partially offset by a decrease in deposit costs. Delinquencies edged up slightly, driven by commercial loans in a few markets, although these were seen as isolated incidents. The company faces competitive dynamics in the deposit market, although it focuses on service and primary checking account relationships rather than competing on yield. Payments revenue showed a seasonal decline in the first quarter, although the company remains optimistic about growth for the rest of the year. Despite strong capital levels, there were no imminent updates on potential acquisitions, which could be a strategic use of excess capital. Q: Loan yields held up despite rate cuts. Can you explain the dynamics of yields, spreads, and fixed-rate loan repricing? A: James Ciroli, CFO: Loan yields decreased by three basis points due to lower loan fees. We repriced $400 million in the quarter and expect $1.8 billion more this year, potentially increasing yields. Deposit costs decreased by five basis points, and public fund deposits are expected to decline, which could benefit net interest margin (NIM). Q: Credit quality remained solid, but delinquencies edged up. Can you provide insights on this? A: James Ciroli, CFO: Asset quality remains strong, with small changes appearing larger due to low numbers. Eric Hallgren, Chief Credit Officer: Delinquencies were mainly in commercial sectors, isolated to a few markets. We don't anticipate further degradation and expect resolution soon. Q: How do you plan to manage excess liquidity and balance sheet size? A: James Ciroli, CFO: We increased buying activity in March and April, investing in U.S. government-backed securities with a 430 yield. We aim to extend duration to about four years and continue seeking opportunities to deploy cash effectively. Q: Any updates on potential acquisitions given your strong capital position? A: John Ross, CEO: We are in active discussions but have no imminent deals. We are well-positioned and will update when there is a development. Our focus remains on strategic opportunities. Q: Can you discuss the sustainability of expenses and operating leverage expectations? A: James Ciroli, CFO: First-quarter expenses are sustainable, with a slight uptick expected due to merit increases. We are managing public company expenses and core conversion costs, maintaining a stable expense outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First Quarter 2026 Financial Highlights GAAP net income of $111.1 million, or $0.46 per fully diluted share, compared to $107.6 million and $0.47 in the prior quarter and $94.8 million, or $0.43 per fully diluted share in the prior year quarter GAAP net interest income of $208.6 million, reflecting a GAAP net interest margin (“NIM”) of 4.32% compared to 4.38% in the prior quarter and 4.19% in the prior year quarter Average total loans held for investment of $11.5 billion, quarterly increase of $0.1 billion, or 1.2% growth from the prior quarter Average total deposits of $15.5 billion, seasonally higher from last quarter and an increase of $0.8 billion or 5.2% from prior year quarter Repurchased over 1.3 million shares at an average price of $24.03 Return on average assets (“ROAA”) of 2.20% Efficiency ratio of 46.3% and efficiency ratio (FTE)1 of 45.7% JEFFERSON CITY, Mo., April 28, 2026 (GLOBE NEWSWIRE) -- Central Bancompany, Inc. (Nasdaq: CBC) (“Central Bancompany”, “the Company”, or “CBC”), the bank holding company for The Central Trust Bank (the “Bank”), today announced preliminary financial results for the first quarter 2026. John “JR” Ross, President and Chief Executive Officer of Central Bancompany, commented “We are pleased to announce solid financial results for the first quarter of 2026. First quarter net income was $111.1 million, or $0.46 per fully diluted share, reflecting a 2.20% ROA and a 46.3% efficiency ratio. We’ve grown net income by $16.3 million, or 17%, from the first quarter of 2025. We were encouraged by loan growth in the quarter, with ending loans excluding other consumer up nearly 6% annualized quarter-over-quarter. Our teams grew average deposits by $0.8 billion, or 5%, including growth of over $400 million in average noninterest-bearing demand balances from the prior year quarter’s balances.” “We reaffirmed our commitment to capital deployment during the quarter by increasing our ordinary quarterly dividend by 118% to $0.12 per share and repurchasing $32 million of our outstanding shares to take advantage of attractive prices and expanded market liquidity,” Ross continued. “We were humbled to again be included as one of America’s Best Banks by Forbes, as well as being named the best performing U.S. public bank with more than $10 billion in assets by S&P Global Market Intelligence. Recognition from such leading organizations is a direct result of legendary service that our employees provide their customers and our communities, and I would like to thank them for driving a successful start to 2026.” Net Interest Income and Net Interest Margin The Company reported net interest income of $208.6 million in the first quarter of 2026, reflecting a GAAP net interest margin of 4.32% (4.36% on an FTE basis1). Net interest income increased $19.3 million from the first quarter of 2025, driven by solid underlying average earning asset growth of $1.3 billion, or 7%, resulting from growing deposits, earnings retention and our IPO. These funds have largely been invested in securities and short-term earning assets. From the end of 2025, average earning assets have grown by nearly $1.0 billion. Notably, in the first quarter of 2026, loans grew at an annualized rate of 6% excluding the reduction in other consumer loans. Compared with the first quarter of 2025, the net interest margin grew to 4.32% from 4.19% in the prior year quarter. Average earning assets for the quarter totaled $19.6 billion, an increase of $1.3 billion, or 7% from the first quarter of 2025, and $0.9 billion or 5% from prior quarter. Average total loans held for investment were $11.5 billion for the first quarter of 2026, declining slightly by $0.1 billion, or less than 1% from the prior year quarter. During that period of time, indirect consumer lending has been reduced and the consumer leasing portfolio was sold. Excluding other consumer loans, which included both indirect consumer loans and consumer leases, average total loans held for investment increased $0.4 billion or 3% from loan growth spread across a number of categories and markets. Total loans ended the quarter at $11.5 billion, $63 million above the average for the quarter, reflecting continued loan growth momentum. Average total deposits were $15.5 billion for the first quarter of 2026, an increase of $0.8 billion, or 5% from prior year quarter. The increase from the prior year quarter was driven by higher noninterest bearing deposits, which rose $0.4 billion, or 9%, and non-maturity interest bearing deposits, which were up $0.4 billion or 5%. All significant customer segments reported deposit growth, with commercial deposits up 9% over the prior year quarter. The 13 basis point increase in the net interest margin from the prior year quarter reflected actions taken to invest short-term earning assets into the securities portfolio and actions taken to reduce the overall cost of deposits commensurate with lower short-term market rates. On a linked quarter basis, the decline in the net interest margin to 4.32% from 4.38% reflected higher levels of deposit funding being invested in short-term earning assets and the securities portfolio, resulting in additional net interest income albeit at a temporarily lower net interest margin on these incremental funds. _________________________ 1This is a non-GAAP financial measure management believes is helpful to understanding trends in our business that may not be fully apparent based only on the most comparable GAAP financial measure. Further information on this financial measure and a reconciliation to the most comparable GAAP financial measure is provided at the end of this release. Provision for credit losses The provision for credit losses was $3.1 million for the first quarter of 2026, an increase of 4.3% from the prior quarter driven primarily by loan growth and net charge-offs of $2.9 million. The allowance for credit losses ended the quarter at $149.9 million, representing 1.30% of loans held for investment and remaining largely consistent with the prior quarter, reflecting stable credit quality trends. Noninterest income Total noninterest income was $65.1 million for the first quarter of 2026, an increase of $6.3 million or 10.7% from the prior year quarter, reflecting higher wealth management revenues and a $1.7 million gain, recognized in other income, from the final liquidation of the consumer lease portfolio. Other categories of noninterest income experienced solid growth from the prior year quarter, reflecting healthy underlying customer activity and continued momentum across core fee‑based revenue streams, underscoring the durability of these businesses. Noninterest expense Noninterest expense totaled $126.6 million for the first quarter of 2026, an increase of $4.4 million from the first quarter 2025. Salaries and benefits expenses increased $4.8 million, or 7%, primarily reflecting higher performance based compensation and regular merit increases. Full-time equivalents were flat to the prior year quarter. Legal and professional fees also rose $1.2 million from the prior year quarter reflecting an increase in technology improvement initiatives and additional costs associated with being a public company. Other expenses decreased $2.2 million from the prior year quarter across several expense categories. As a result of disciplined expense management and consistent growth in total revenue, our efficiency ratio (FTE)1 improved to 45.7% for the quarter, compared to 47.0% in the prior quarter and 48.7% in the first quarter of the prior year, underscoring continued operating leverage. Provision for income taxes The first quarter 2026 provision for income taxes was $32.9 million, $0.7 million higher than the prior quarter primarily driven by the increase in book income quarter over quarter. The current quarter’s effective tax rate of 22.8% is consistent with the effective tax rate for the full-year 2025. Asset quality Asset quality remained strong. Nonperforming loans at March 31, 2026 were $52.1 million, or 45 basis points of loans held for investment, up from 43 basis points at the end of the prior year quarter. Net charge-offs were $2.9 million for the quarter, 10 basis points (annualized) of average total loans. Credit costs remained in line with prior quarters. Delinquent loans at March 31, 2026 were $45.0 million, or 39 basis points of loans held for investment, as compared to 34 basis points at the end of the prior year quarter. Capital Capital levels at March 31, 2026 remained very strong. Our CET1 ratio was 28.6% and represented $1.9 billion of excess capital when compared to our long-term CET1 target of 13.5%. The Bank’s CET1 ratio was 12.9% at March 31, 2026. The difference in the consolidated capital ratio and the capital ratio at the Bank represents capital that is readily available to be deployed. Our book value per share at March 31, 2026 was $15.84 per share, whereas our tangible book value was $14.38 per share1, of which $6.58 per share represents core tangible book value, with the remaining $7.80 per share attributable to excess capital. Conference Call and Webcast Information The Company will host a conference call and webcast at 9:00 a.m. CT on Tuesday, April 28, 2026. The call may include discussion of Company developments, forward-looking statements and other material information about business and financial matters. This press release and a related slide presentation will be accessible on the Company’s investor relations website https://investor.centralbank.net. The call can be accessed via this same website or by using the following link: https://edge.media-server.com/mmc/p/jwuqmnmy. A recorded replay of the conference call will be available on the website after the call’s completion. About Central Bancompany, Inc. Central Bancompany, Inc. is a bank holding company headquartered in Jefferson City, Missouri, with approximately $20.5 billion in assets as of March 31, 2026. Its banking subsidiary, The Central Trust Bank, has been serving businesses and customers since 1902. The bank is built on a strong foundation of people, community service, and technology. The Central Trust Bank is a Missouri state-chartered trust company with banking powers and a Federal Reserve state member bank, serving consumers and businesses in Missouri, Kansas, Oklahoma, Colorado, and Florida. Divisions of The Central Trust Bank include Central Trust Company and Central Investment Advisors. Non-GAAP Financial Information In this release, we provide information about certain non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (“GAAP”) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures and the nearest comparable GAAP financial measures are reconciled later in this release. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other variations or comparable terminology and expressions. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have based the forward-looking statements contained herein on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in Part I Item 1A - "Risk Factors" and Part II Item 7 - "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2025 Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions which are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what is expected, implied or forecasted in such forward-looking statements. These forward-looking statements are inherently uncertain and you are cautioned not to unduly rely upon these statements. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Current quarter, prior quarter and prior year quarter information is provided on pages 4-7 below. Non-GAAP Financial Measures Reconciliations In this release, we provide information about certain non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance by excluding certain items that may not be indicative of our business, results of operations or outlook. The non-GAAP measures as defined by the Company may not be comparable to similar non-GAAP measures presented by other companies. We disclose net interest income and related ratios and analysis on a fully taxable-equivalent (“FTE”) basis, which may be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis. We evaluate our profitability and performance based on adjusted net income, adjusted total revenue, adjusted noninterest income, adjusted fee income and adjusted return on average total assets. We adjust each of these measures to exclude the loss on the expected sale of the consumer loan portfolio in one of our markets and adjustments that resulted from certain investment portfolio repositioning activities during the periods presented that we consider to be outside of the ordinary course of business. We believe this allows investors to assess our net income, total revenue and noninterest income exclusive of the impact of changes outside the ordinary course of business. Similarly, we evaluate our operational efficiency based on tangible noninterest expense and our adjusted efficiency ratio, which excludes the effect of amortization of intangibles (a non-cash expense item) as well as the exclusions mentioned previously in this paragraph, and includes the tax benefit associated with our tax-advantaged loans. We evaluate our financial condition based on the ratios of our tangible common equity to our tangible assets, tangible book value per share, return and adjusted return on average common equity, and return and adjusted return on average tangible common equity. Our calculation of these ratios allows readers to assess our stockholders’ equity, exclusive of the effect of our goodwill and other intangible assets. Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this release.

Image source: The Motley Fool. Tuesday, April 28, 2026, at 10 a.m. ET Chairman and Chief Executive Officer — John Ross Chief Financial Officer — James Ciroli Chief Customer Officer — Daniel Westhues Chief Credit Officer — Eric Hallgren John Ross: Thank you, operator. Good morning, and thank you for joining us for Central Bancompany, Inc. Class A Common Stock’s first quarter 2026 earnings call. With me in the room today are our chief financial officer, James Ciroli; chief customer officer, Daniel Westhues; and chief credit officer, Eric Hallgren. As a reminder, I would like to point out that the discussion today is subject to the same forward-looking considerations outlined on page 3 of our press release. Today, we plan to briefly discuss first quarter highlights before opening the line for questions. Before I turn to the numbers, please allow me to share some non-financial highlights. In the first quarter, we were humbled to again be named one of Best Banks by Forbes, as well as the best-performing U.S. public bank with more than $10 billion in assets by S&P Global Market Intelligence. Recognition from such organizations is a testament to the efforts of our nearly 3,000 full-time employees, whom I would like to thank for their continued legendary service. With that, let us cover the financial results. For the quarter, Central Bancompany, Inc. Class A Common Stock posted net income of $111.1 million, or $0.46 per fully diluted share. Return on average assets was 2.2%, NIM on an FTE basis was 4.36%, and the efficiency ratio on an FTE basis was 45.7%. Relative to 2025, net income increased $16.3 million, or 17%. Our asset quality remained consistent with 10 basis points of net charge-offs again this quarter, and the allowance covered 130 basis points of total loans. We remain encouraged by the continued resumption of growth in our balance sheet, with ending loans excluding other consumer up nearly 6% annualized quarter over quarter, and average deposits up 5% year over year. Lastly, capital levels at the holding company remain well above target, with approximately $1.9 billion of excess, or $7.80 per share. We leaned into capital deployment this quarter by announcing a meaningful increase to our quarterly dividend and repurchasing $32 million worth of our shares, taking advantage of attractive prices and expanded liquidity. We are pleased with these results and appreciate those on the line for joining us for this call. We will now open the call for questions. Operator? Operator: Please press star 11 on your telephone. You will hear an automated message advising your hand is raised. To remove yourself, please press star 11 again. Our first question is coming from the line of Manan Gosalia of Morgan Stanley. Your line is open. Manan Gosalia: Hi. Good morning, all. It looks like loan yields held up nicely despite rate cuts at the end of last year. I was hoping you could help us with what is going on under the surface in terms of yield spreads, fixed-rate loan repricing, and anything that can help us think through the forward look across different rate scenarios, given that rate expectations have been moving around quite significantly over the past several weeks. James Ciroli: Yes, happy to, Manan. Looking at it on a linked-quarter basis, loan yields came down 3 basis points, and almost all of that was lower loan fees coming off higher prepayment fees in the prior quarter. We had fewer prepayments this quarter. I would also note that loans ended the quarter higher than their average, so we are showing growth momentum coming out of the quarter and into the second quarter. With fewer prepayments, we like that scenario. We repriced about $400 million in the quarter, and we anticipate about $800 million more for the rest of the year. When those loans are repricing, they are coming out at roughly a 5.80% type yield, and we continue to see loan opportunities at about 300 basis points over similar-maturity Treasuries. As that $1.8 billion reprices over the rest of the year, that could provide some upside to where we were in NIM. I would not necessarily focus on the modest move in loan yields. If you look at the deposit side, our deposit costs came down 5 basis points if you factor out the shift higher in public funds we signaled on the last call. Public funds ended the fourth quarter higher, and we talked about the seasonality there. Averages for the first quarter were higher than the fourth-quarter averages in public funds, and that is exactly what we saw. We anticipate that public funds balances, which ended the quarter lower than the average balance, will continue to come down, and that is exactly what we said on the last call. We also added slide 9 to the deck for transparency. Did I cover everything you wanted me to cover there, Manan? Manan Gosalia: Yes, that was great detail. Thank you. Maybe pivoting to credit, delinquencies have edged up a little bit for a couple of quarters, and it looks like it is driven by commercial. Any thoughts on what you are seeing and your views on credit overall? James Ciroli: What I would tell you is that we continue to have a lot of small numbers in our asset quality statistics, and when you have small numbers, small changes can seem bigger than they actually are. Our asset quality numbers continue to be pristine. Small changes in that pristineness can lead to big percentage changes, but that does not necessarily mean anything. I will now turn it over to Eric Hallgren for additional color. Eric Hallgren: Thanks, Jim. The increase in delinquencies, as you noted, was primarily driven by commercial in the first quarter. That was concentrated in a small number of markets and largely attributable to a handful of commercial clients. From what we see, we do not anticipate those delinquencies degrading further and expect resolution here. Overall, we view it as isolated pockets of stress and not an indication of systemic weakness as we look ahead for the rest of the year. Manan Gosalia: Got it. That is great. Thanks so much for the color. Operator: Thank you. One moment for the next question, please. Our next question will be coming from the line of Nathan Race of Piper Sandler. Your line is open. Nathan Race: Hey, good morning. Thanks for taking the questions. Jim, going back to the deposit flows in the quarter, how are you thinking about working down some of the excess liquidity that weighed on the margin in 1Q, and more generally, how should we think about the size of the balance sheet—specifically earning assets—as a better jump-off point for the second quarter? James Ciroli: Great question, Nate. We worked hard in the first quarter. If you recall the path of rates, it was not looking terribly good earlier in the quarter, but near the end of the quarter we like to extend duration to about the four-year mark in our securities portfolio. Near quarter-end, rates came up in that part of the curve, so we stepped up the pace of our buying activity in March, and that continued into April as well. In April, we are reinvesting cash at about a 4.30% yield. We continue to look for opportunities that are U.S. government guaranteed or at least agency-sponsored. We do not like taking on a lot of convexity risk. Our treasury team has done a lot of work, and when the market comes back to where we want it to be, like it did in March and April, we were able to move faster. Nathan Race: Got it. That is helpful. Maybe changing gears, you are continuing to build excess capital at a really strong clip, as evidenced here in 1Q. JR, would love to get your thoughts on your optimism level for an acquisition this year and how conversations are trending. It seems like you have a competitive currency to share with potential partners, but would love some updated thoughts. John Ross: It is an understandable question. More than half our capital is excess, and it is a major focus for us daily. Having said that, we have no real updates at this stage. You can push replay on the comments we made last quarter. To summarize, we think we are well positioned. We are in active discussions. Nothing is imminent. We see everything that is out there, and we will update you when we have a deal. Until then, we are just going to work really hard on it. No real updates this quarter. Nathan Race: Fair enough. Maybe one last one. Payments revenue tends to show a seasonal decline in the first quarter. Do you still feel like the initiatives you put in place—particularly with Dan and his team—are bearing fruit, and do the payments revenue projections you have talked about still hold in terms of a nice ramp over the balance of this year? John Ross: We do. I appreciate that you noticed the seasonality between Q4 and Q1. It really comes off a good quarter in Q4 and then comes down pretty sharply. But on a year-over-year basis, we continue to see the consumer spending, so there is no concern there. We are also seeing nice growth on the commercial side with programs we have put in place. We continue to feel sanguine about that business as we look forward. Nathan Race: Okay, great. I appreciate all the color. Thanks, guys. Operator: Thank you. One moment for the next question, please. Our next question will be coming from the line of Matt Olney of Stephens. Your line is open. Matt Olney: Hey, thanks. Good morning, everybody. Going back to deposits, Jim, you already addressed the moving parts around public funds, and slide 9 is helpful. Any general observations you can share as far as the competitive dynamics for deposits in your marketplace and what you are seeing more recently? James Ciroli: That is a fair question, Matt, and welcome to coverage on our stock. Looking forward to spending more time with you. Adjusting for seasonality—which we had a lot of this quarter—we are generally growing deposits mid-single digits across our markets. We are doing that through acquisition campaigns focused on growing checking accounts. We are focused on being our depositors’ primary checking account and on primacy overall. Once you normalize for seasonal activity, you can see mid-single-digit growth. We are not really out there competing for yield-seeking funds. We compete on service and primacy in the markets we serve, so I do think it is competitive out there from what I hear, but that is not the market we compete in. Matt Olney: Appreciate the color. On capital allocation, you stepped up the share repurchase this quarter—just over a million shares. Help us appreciate your capital allocation strategy and where buybacks come into play. I think you disclosed ROIC around 12% based on how you think about it. Any more color on capital allocation and buybacks? James Ciroli: Even with the $32 million we bought back this quarter, and the dividend step-up, we still grew our excess capital from $1.8 billion to $1.9 billion, as JR said. More than half of our tangible book value is excess capital. We value that excess roughly dollar for dollar. If you strip it out and look at our core capital and compare that to any measure you want—trailing twelve months, next twelve months, even looking at 2027 earnings—we think the stock is still cheap. If we intend to use the stock in an M&A transaction, having it that cheap is something we would like to work against. We would like to see the stock more fully valued in the marketplace. John Ross: On ROIC, we calculate it the same way we look at bank acquisitions because it is good discipline, and we look at several other methods as well. Intuitively, bringing in a single-digit P/E multiple on a forward basis for the core bank is very attractive. Obviously, $32 million is a drop in the bucket compared to our excess capital. One last thing I would add: we were pleasantly surprised by the increase in the stock’s liquidity, which may provide us more opportunities going forward. We were a bit constrained initially with the $50 million authorization because we were concerned about liquidity impact, but we have been pleasantly surprised to see it pick up. Matt Olney: Perfect. Thanks for the color. James Ciroli: Thank you, Matt. Operator: Thank you. One moment for the next question. Our next question will be coming from the line of Christopher McGratty of KBW. Your line is open. Christopher McGratty: Great, good morning. Jim, on expenses, really good performance in the quarter. Can you speak to sustainability and maybe broader operating leverage expectations? James Ciroli: Great question. On a linked-quarter basis, expenses came down a little bit. We have signaled additional costs of around $5 million per year in public company expenses, and the first quarter has about that run-rate in it. We are still in the middle of our core conversion, and during the quarter we only capitalized about $700,000 of the dollars spent. I think first-quarter noninterest expense is fairly loaded and a fairly sustainable run-rate. There might be a little uptick because we do merit increases in March, but I would not expect much of an uptick beyond that. Christopher McGratty: That is helpful. On slide 5—the updated rate sensitivity static analysis—I think it was a touch weaker, call it 100 basis points from last quarter, but the base case shows a pretty good ramp in both years. Can you speak to any strategies to lock in the margin given higher for longer is seemingly a base case? And how should we think about NII progression as you get better growth and the loan fee adjustment you talked about? James Ciroli: I go back to what I mentioned to Nate. One of our biggest opportunities is to continue to invest our excess cash. For most of the quarter, the differential between the four-year point on the curve and the overnight rate was slight. That has steepened a little bit with an anticipation that we will not have a rate cut until sometime late in 2027. As that environment has improved, we have accelerated our investing strategy to put excess cash to work. Beyond that, opportunities come from continuing to grow noninterest-bearing deposits, and I think there is still some room to manage deposit costs down. I would point out that about 90% of our deposit base is nonmaturity. To work down rates from the cuts we saw in late 2025, our market CEOs have to go out every day and manually work that with depositors; it does not just mechanically come down. We still think a low-20s beta is appropriate, but because of the nature of nonmaturity deposits, that will take a while to come in. Also remember seasonality: as we roll out of the first quarter with higher public fund deposits—hence slide 9—mix should normalize. Had we not mixed higher in public fund deposits, our cost of deposits would have been down 5 basis points on a linked-quarter basis. As public fund balances come down across Q2 and Q3, I expect the mix shift to continue to benefit net interest margin as well. Christopher McGratty: If I could squeeze one more on excess cash, how does that settle in terms of proportional balance sheet over the next couple of years? Where do you want to run cash-to-earning assets? James Ciroli: We do not target a specific cash-to-earning-assets ratio. We focus on deploying excess liquidity into attractive, risk-appropriate assets—primarily government and agency securities around the four-year point—while supporting organic loan growth and maintaining balance sheet flexibility. Thank you. Before you buy stock in Central Bancompany, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Central Bancompany wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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