Central Bancompany (CBC) Q2 FY26 earnings call: the analyst Q&A

Inquired about the sustainability of commercial loan growth and potential for further pickup based on current trends.

Management confirmed broad-based loan growth, noting a 6.5% annualized pace (net of consumer loan decline) and robust pipelines, similar to the first half of 2025, indicating continued momentum.

“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.”

asked by Manan Gosalia · answered by James Ciroli

Asked about trends in deposit costs, competition, and expectations for the future given lending positivity.

Management stated that price competition for yield-seeking deposits is intense, but they focus on growing noninterest-bearing deposits through service and primacy. Noninterest-bearing deposits were up 5% year-over-year, indicating success in their strategy.

“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.”

asked by Manan Gosalia · answered by James Ciroli

Sought an update on M&A conversations, pipelines, and willingness to transact given stock performance.

Management indicated no real change in their M&A strategy, which is based on absolute valuations. They continue to pursue high-quality banks and are open to different types of deals, as communicated previously.

“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.”

asked by Christopher McGratty · answered by John Ross

Asked about the stable loan yields in Q2 and the impact of fixed-rate loan repricing tailwinds, as well as other puts and takes for NIM in the back half of the year.

Management explained that repricing benefits were offset by a shift to lower-yielding, lower-risk mortgage loans and intense competition. They expect loan yields to grind higher due to repricing and deposit costs to be largely stable on a seasonally adjusted basis.

“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.”

asked by Matt Olney · answered by James Ciroli

Inquired about the company's appetite for buybacks at current share levels, given the refreshed authorization and strong capital generation.

Management expressed satisfaction with the stock's current level and views the refreshed $100 million authorization as an appropriate tool. They will continue to be opportunistic, weighing buybacks against other opportunities and noting the stock trades at a discount to peers despite strong performance.

“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.”

asked by Adam Kroll · answered by James Ciroli