Q3 FY26
Filed Oct 27, 2026Central Bancompany, Inc. Reports Third Quarter 2026 Results
Q3 net income rose 19.7% year over year and 2.2% sequentially, supported by 10.0% growth in net interest income, a 12-basis-point year-over-year expansion in net interest margin, positive operating leverage, and a 45.4% non-GAAP efficiency ratio. Credit quality remained low-cost, though nonperforming loans and nonperforming assets increased year over year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 FY26 net interest incomeGAAP | $218.9M | 2.9% | 10.0% |
| Q3 FY26 net interest income (FTE)non-GAAP | $220.5M | 2.9% | 10.1% |
| Q3 FY26 net interest marginGAAP | 4.48% | 0.08% | 0.12% |
| Q3 FY26 net interest margin (FTE)non-GAAP | 4.51% | 0.08% | 0.12% |
| Q3 FY26 total interest incomeGAAP | $267.1M | 2.6% | 7.4% |
| Q3 FY26 total interest expenseGAAP | $48.25M | 1.3% | (3.3)% |
| Q3 FY26 total noninterest incomeGAAP | $66.8M | (4.0)%“ | 17.0% |
| Q3 FY26 adjusted noninterest incomenon-GAAP | $66.57M | (3.4)%“ | 4.0% |
| Q3 FY26 total revenueGAAP | $285.7M | 1.2% | 11.6% |
| Q3 FY26 adjusted total revenuenon-GAAP | $285.4M | 1.3% | 8.6% |
| Q3 FY26 provision for credit lossesGAAP | $4.04M | 14.2% | 19.4% |
| Q3 FY26 total noninterest expensesGAAP | $131.0M | (0.3)%“ | 3.2% |
| Q3 FY26 income before income taxesGAAP | $150.6M | 2.2% | 19.9% |
| Q3 FY26 income taxesGAAP | $34.40M | 2.1% | 20.6% |
| Q3 FY26 effective tax rateGAAP | 22.8% | — % | 0.1% |
| Q3 FY26 net incomeGAAP | $116.2M | 2.2% | 19.7% |
| Q3 FY26 adjusted net incomenon-GAAP | $116.1M | 2.4% | 13.4% |
| Q3 FY26 diluted net income per common shareGAAP | $0.48 | 2.2% | 9.9% |
| Q3 FY26 adjusted diluted net income per common sharenon-GAAP | $0.48 | 2.5% | 4.1% |
| Q3 FY26 return on average total assetsGAAP | 2.27% | 0.02% | 0.25% |
| Q3 FY26 return on average common equityGAAP | 11.9% | — % | — % |
| Q3 FY26 efficiency ratioGAAP | 45.9% | (0.7)%“ | (3.7)% |
| Q3 FY26 efficiency ratio (FTE)non-GAAP | 45.4% | (0.6)%“ | (2.3)% |
| Q3 FY26 average loans held for investmentother | $11.67B | 0.8% | 2.9% |
| Q3 FY26 average total depositsother | $15.38B | 0.1% | 4.4% |
| Q3 FY26 average interest-earning assetsother | $19.39B | (0.1)%“ | 7.1% |
| Q3 FY26 cost of depositsother | 1.11% | 0.01% | (0.08)% |
| Q3 FY26 period-end loans held for investmentother | $11.73B | 0.5% | 3.6% |
| Q3 FY26 period-end total depositsother | $15.32B | (0.4)%“ | 3.6% |
| Q3 FY26 total assetsother | $20.23B | (0.3)%“ | 5.4% |
| Q3 FY26 total stockholders' equityGAAP | $3.84B | (0.7)%“ | 16.9% |
| Q3 FY26 allowance for credit lossesother | $150.9M | 0.3% | 1.0% |
| Q3 FY26 allowance for credit losses / loans held for investmentother | 1.29% | — % | (0.03)% |
| Q3 FY26 nonperforming assetsother | $65.99M | 9.5% | 14.9% |
| Q3 FY26 nonperforming assets / total assetsother | 0.33% | 0.03% | 0.03% |
| Q3 FY26 nonperforming loansother | $62.90M | 10.1% | 23.9% |
| Q3 FY26 net charge-offsother | $3.55M | 17.8% | 2.9% |
| Q3 FY26 net charge-offs / average loansother | 0.12% | 0.02% | — % |
| YTD FY26 net incomeGAAP | $341.1M | – | 20.4% |
| YTD FY26 adjusted net incomenon-GAAP | $340.5M | – | 15.4% |
| YTD FY26 diluted net income per common shareGAAP | $1.42 | – | 10.5% |
| YTD FY26 net interest incomeGAAP | $640.3M | – | 9.8% |
| YTD FY26 total noninterest incomeGAAP | $201.4M | – | 21.4% |
| YTD FY26 total noninterest expensesGAAP | $388.9M | – | 3.5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth management servicesSupported by 13.8% growth in assets under advice to $17.5 billion. | $23.61M | 1.6% | 16.7% |
| Payment services revenuePayment services revenue contributed positively to noninterest income growth year over year. | $17.80M | (2.5)% | 4.0% |
| Service charges and commissionsService charges and commissions contributed positively to noninterest income growth year over year. | $15.44B | 4.5% | 3.3% |
| Mortgage banking revenues, netAttributed to reduced origination volumes in the higher interest rate environment. | $8.83M | (16.9)% | (14.3)% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Dividends / share of $0.12 in Q3 FY26, compared to $0.12 in Q2 FY26 and $0.06 in Q3 FY25.
- End of period shares were 239,382, compared to 239,505 in Q2 FY26 and 220,665 in Q3 FY25.
- Treasury stock was $(142,204), compared to $(138,393) in Q2 FY26 and $(99,158) in Q3 FY25.
What drove it
- Net interest income increased $19,984, or 10.0%, year over year, as average earning assets grew 7.1% and net interest margin increased to 4.48%.
- The net interest margin increase reflected higher loan and securities yields, continued loan growth, a favorable earning asset mix, and lower balances of interest-earning cash.
- Average total deposits increased $641,057, or 4.4%, year over year, including 6.2% growth in average noninterest-bearing demand deposits.
- Wealth management services revenue increased $3,373, or 16.7%, year over year to $23,612.
- Total noninterest expenses increased $4,034, or 3.2%, year over year, below 11.6% growth in total revenue.
- The efficiency ratio improved to 45.9% from 49.6% in the prior-year quarter.
Concerns
- Mortgage banking revenues, net declined $1,471, or 14.3%, year over year and $1,789, or 16.9%, sequentially.
- The provision for credit losses increased $656, or 19.4%, year over year and $503, or 14.2%, sequentially.
- Nonperforming loans increased $12,127, or 23.9%, year over year, including a $14,490 increase in nonperforming commercial loans.
- Nonperforming assets increased $8,571, or 14.9%, year over year, to $65,987.
- Other consumer loans declined $158,770, or 27.0%, year over year.
What to watch
- Whether period-end loans, which exceeded the quarterly average by $54 million, translate into continued loan growth in the fourth quarter.
- The trajectory of net interest margin after Q3 FY26 expansion to 4.48% and the stability of the 1.11% cost of deposits.
- The pace of commercial nonperforming loan growth and whether net charge-offs remain low.
- Mortgage banking revenue trends amid reduced origination volumes.
- Whether expense discipline persists as salaries and employee benefits increased $4,708, or 6.3%, year over year.
Balance sheet and cash flow
- Total assets were $20,225,657 at September 30, 2026, compared to $20,294,827 in Q2 FY26 and $19,183,605 in Q3 FY25.
- Cash and due from banks were $188,916 at September 30, 2026, compared to $244,257 in Q2 FY26 and $217,621 in Q3 FY25.
- Investment securities were $6,925,764 at September 30, 2026, compared to $7,072,074 in Q2 FY26 and $6,017,738 in Q3 FY25.
- Total deposits were $15,315,880 at September 30, 2026, compared to $15,377,839 in Q2 FY26 and $14,789,227 in Q3 FY25.
- Federal funds purchased and customer repurchase agreements were $932,323 at September 30, 2026, compared to $913,127 in Q2 FY26 and $958,766 in Q3 FY25.
- Total stockholders' equity was $3,838,726 at September 30, 2026, compared to $3,865,761 in Q2 FY26 and $3,284,414 in Q3 FY25.
- Consolidated common equity tier 1 ratio was 29.1%, compared to 28.6% in Q2 FY26 and 24.6% in Q3 FY25.
- The Bank's common equity Tier 1 ratio was 13.4%, compared to 12.7% in Q2 FY26 and 13.6% in Q3 FY25.
Analysis
Central Bancompany reported a strong third quarter, with GAAP net income of $116,242, up 19.7% from $97,098 a year earlier and 2.2% from $113,773 in the prior quarter. Diluted EPS was $0.48, compared with $0.44 in Q3 FY25 and $0.47 in Q2 FY26. Adjusted net income was $116,067, up 13.4% year over year and 2.4% sequentially. Year-to-date GAAP net income reached $341,102, up 20.4%, while adjusted net income increased 15.4% to $340,458.
Core spread income was the principal contributor. Net interest income increased 10.0% year over year and 2.9% sequentially to $218,856. Net interest margin reached 4.48%, compared with 4.36% in the prior-year quarter and 4.40% in the prior quarter. Average interest-earning assets increased 7.1% year over year to $19,386,222, while the cost of deposits fell to 1.11% from 1.19% a year earlier. Average loans held for investment rose 2.9% year over year to $11,673,389, and average deposits rose 4.4% to $15,376,514. Period-end loans held for investment increased 3.6% year over year to $11,727,440.
Fee income was mixed. Total noninterest income increased 17.0% year over year to $66,800, but included a favorable year-over-year comparison in investment securities gains and losses. Adjusted noninterest income increased 4.0% to $66,571. Wealth management services was the leading fee contributor, rising 16.7% to $23,612 alongside 13.8% growth in assets under advice to $17.5 billion. Payment services revenue and service charges and commissions also grew year over year. Mortgage banking revenues, net declined 14.3% to $8,826 because of reduced origination volumes.
Expense growth remained below revenue growth. Total noninterest expenses rose 3.2% year over year to $130,979 and declined 0.3% from Q2 FY26, while total revenue increased 11.6% year over year. Salaries and employee benefits increased 6.3% from the prior-year quarter, reflecting annual merit increases and higher performance-based compensation. The GAAP efficiency ratio improved to 45.9% from 49.6%, and the FTE efficiency ratio improved to 45.4% from 47.7%, demonstrating positive operating leverage.
Credit metrics remained low in absolute terms but warrant monitoring because nonperforming balances rose. Nonperforming assets were $65,987, or 0.33% of total assets, compared with $57,416, or 0.30%, a year earlier. Nonperforming loans increased 23.9% year over year to $62,901, driven by a 79.3% increase in nonperforming commercial loans to $32,755. Net charge-offs were $3,551, or 0.12% of average loans, while the allowance for credit losses was $150,888 and represented 1.29% of loans held for investment. The company ended the quarter with a 29.1% consolidated common equity tier 1 ratio and stated that this represented $2.0 billion of excess capital relative to its long-term 13.5% CET1 target.
Management, verbatim
We delivered another strong quarter, supported by continued balance sheet growth, disciplined expense management, and solid credit quality. Adjusted net income1 increased $13.7 million from a year ago and $2.8 million from the prior quarter. Year-over-year performance reflected growth in net interest income and noninterest income that outpaced expense growth, while linked-quarter results benefited from continued net interest margin expansion and higher net interest income driven by our asset-sensitive balance sheet. These favorable trends were partially offset by lower mortgage banking revenues.
John “JR” Ross, President and Chief Executive Officer of Central Bancompany
Underlying business fundamentals remained healthy across our franchise. Average total deposits increased more than 4% from the prior-year quarter, including 6% growth in noninterest-bearing deposits, while average loans grew at an annualized rate of more than 3% from the prior quarter despite our continued focus on reducing certain consumer loan balances. Credit quality remained benign, and we maintained our allowance for credit losses coverage ratio while modestly increasing the overall reserve balance to support loan growth.
John “JR” Ross, President and Chief Executive Officer of Central Bancompany
These 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.
John “JR” Ross, President and Chief Executive Officer of Central Bancompany
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Gross margin is not applicable to the reported banking results and was not provided.
- Debt was not separately reported as a debt balance.
- Share repurchases were not separately reported as a capital-return amount.
- CFO commentary was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.