Central Bancompany (CBC) AI Stock Analysis

Company Guidance

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.