Central Bancompany, Inc.

Second-quarter net income was $113.8 million, or $0.47 per share, and return on average assets was 2.24%. Versus Q2 2025, adjusted net income increased $15.4 million, or 16%, while net interest income rose $17.7 million as average earning assets grew $1.1 billion. Net interest margin on an FTE basis expanded 13 basis points to 4.43%, and the FTE efficiency ratio was 46.1%. Net charge-offs were 10 basis points, delinquencies were 22 basis points of total loans, and the holdco had about $1.9 billion of excess capital, or $7.98 per share. For forward direction, management said $1.3 billion of loans are set to reprice in the second half of the year at the same 5.8% yield previously signaled; public fund deposits are expected to decline seasonally in Q3 before increasing in Q4; and deposit costs are expected to be largely stable on a seasonally adjusted basis. Management also expects loan yields to continue grinding higher over time, while continuing to be selective in consumer lending.

John Ross framed the quarter as “another solid set of results” and emphasized continued execution across growth, service, and capital deployment. He highlighted the opening of three new full-service branches in St. Louis and Colorado as part of a strategy in underpenetrated metro markets, and said the bank remains focused on winning primary relationships rather than competing aggressively on price. On M&A, he said there was no real change in strategy and no update on any pending opportunities, though the bank remains disciplined and active in looking at high-quality targets.

James Ciroli emphasized that profitability improved from last year, with adjusted net income up 16%, NII up $17.7 million, and NIM at 4.43%. He pointed to favorable loan repricing tailwinds, noting $1.3 billion of loans still reprice in the second half at a 5.8% yield, but said higher intermediate-term rates and a shift away from higher-yielding other consumer loans offset some of that benefit in the quarter. He also discussed deposit costs, saying they fell 3 basis points sequentially due mostly to lower public fund deposits, and he expects seasonally adjusted deposit costs to remain largely stable; capital was described as well above target, with $1.9 billion of excess capital and the buyback authorization increased to $100 million after $39 million had already been used.

Analysts focused on loan growth, deposit competition, M&A, credit quality, loan yields, buybacks, and wealth management fees. Management said loan growth was broad-based, with a 6.5% annualized pace in the quarter and robust pipelines, while deposit competition is intense on price but the bank is prioritizing noninterest-bearing balances and relationship primacy. On credit, management said the one commercial loan downgrade was isolated and not indicative of broader portfolio issues. They also said the stock still screens at a discount to peers, supporting buybacks, and noted wealth management AUA reached $17.3 billion, helped by market/performance gains, net inflows, and early contribution from a newly launched private bank initiative.