Central Bancompany (CBC) Q3 2026 Earnings Report

The call was broadly positive, supported by strong net income, higher net interest income and margin, controlled expenses, benign credit metrics, substantial excess capital, deposit growth, and continued commercial pipeline strength. The main challenges were declining mortgage revenue, uncertainty around deposit costs and future rates, moderation in borrower activity in some markets, and a modest increase in commercial nonperforming assets. Highlights significantly outweighed the lowlights.

Management expects noninterest-bearing deposit growth of 6% year-over-year, with “some number in the mid-single-digits range” year in and year out across a pretty long horizon; fourth quarter fixed loan repricing includes $700 million rolling off and next year $2.2 million, those loans rolling off at pretty much a 6% flat rate, with reinvestment yields around 100 basis points higher, while deposit beta is expected to be a mid- to low-20s type of a beta. Loan growth was 3% linked quarter annualized, or about 4% excluding the other consumer decline, with mid-single-digits growth the right expectation over a long period of time and 4% consistent with expectations when environments are a little bit more competitive and a little bit more irrational at times; pipelines were as strong as they were a quarter ago. The company expects to record a nonrecurring pretax gain of approximately $27 million in the fourth quarter, expects probably another 1 rate hike in December and something early next year, and is looking at means to reduce its slightly asset sensitive position, including a cash flow hedge and its securities portfolio. Buybacks are limited in the near term, with $96 million of repurchase authority remaining and a $100 million authorization.