CBC 10-K & 10-Q changes, risk factors and insider trading
Central Bancompany, Inc. · Nasdaq · CIK 2065601 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Comparison not available: Not available: fewer than two 10-K filings on EDGAR to compare (only one so far)..
What changed in the latest 10-Q
Risk Factors
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Consumer Banking Operating Results”
New heading “Commercial Banking Operating Results”
New heading “Wealth Management Operating Results”
New heading “Net charge-offs”
New heading “Sensitivity to Interest Rates”
Removed heading “(11)Accumulated Other Comprehensive Loss”
Largest changes
“During the second quarter of 2026, the Company redeployed a portion of its excess liquidity held at the Federal Reserve into investment securities, primarily U.S. Treasury, agency CMBS, and agency RMBS securities. The Company also repositioned approximately $210 million of available-for-sale securities with a 2.0% book yield and 1.7-year effective duration into approximately $202 million of securities with a 4.5% book yield and 3.3-year effective duration, recognizing net losses of $7.8 million. …”see in full comparison
Our non-performing assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such thatsee in full comparisonpaymentcollection of full principal and interest is not expected, or (ii) principal or interesthas been in default for a period ofis 90 days or moreandpast due, unless theassetloan isnotboth well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled.
Full comparison: every changed paragraph (178)
You should read the following discussion of our financial condition and results of operations in conjunction with our consolidated financial statements and accompanying notes presented elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion included in Part 2, Item 8 on Form 10-K for the year ended December 31, 2025. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. All of such forward-looking statements are expressly qualified by reference to the cautionary statements provided under the caption "Cautionary Note Regarding Forward-Looking Statements" included in this Quarterly Report on Form 10-Q. Furthermore, a number of known and unknown factors may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. Therefore, you are encouraged to read in its entirety the information provided under the caption "Part I, Item IA, Part IIA — Risk Factors" included in Form 10-K for the year ended December 31, 2025 for a discussion of risk factors that may negatively impact our expected results, performance, or achievements discussed below.
We are a bank holding company headquartered in Jefferson City, Missouri. Through our full-service community banking subsidiary, The Central Trust Bank, we provide a comprehensive suite of consumer, commercial and wealth management products and services to our communities primarily in Missouri, Kansas, Oklahoma and Colorado. As of MarchJune 31,30, 2026, we operate 156159 full-service branch locations.
The second quarter and first half of 2026 were characterized by moderate economic growth, with GDP expanding at a 2.6% forecast rate and unemployment remaining stable near 4.3%, supported by continued strength across the Company's Midwest markets. The Federal Reserve held the prime rate at 6.75% at quarter-end, with expectations of gradual easing toward 6.25% over the near-term horizon, while rising intermediate-term market interest rates during the period created both valuation pressure on fixed-rate securities and attractive reinvestment opportunities. Elevated energy prices and geopolitical uncertainty contributed to a cautious business environment, though disruptions remained contained and did not materially affect credit performance across the Company's loan portfolio.
The following table presents selected financials from our income statement and the performance ratios discussed below.ratios.
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1These are non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
2Fully-tax equivalent basis.
Key highlights for the three months ended MarchJune 31,30, 2026:
•Net income of $111.1$113.8 million, or $0.46$0.47 per fully diluted share, compared to $94.8$91.4 million and $0.43$0.41 for the three months ended MarchJune 31,30, 2025.
•Adjusted net income (non-GAAP)1 of $113.3 million, or $0.47 per fully diluted share, compared to $97.9 million and $0.44 for the three months ended June 30, 2025.
•Efficiency ratio of 46.3%46.5%; Adjusted efficiency ratio1ratio1, 2 of 45.7%,46.1%, compared to 49.3%51.7% and 48.7%48.4% respectivelyrespectively, in the prior year quarter.
Key highlights for the six months ended June 30, 2026:
•Net income of $224.9 million, or $0.94 per fully diluted share, compared to $186.2 million and $0.84 for the six months ended June 30, 2025.
•Adjusted net income (non-GAAP)1 of $224.4 million, or $0.93 per fully diluted share, compared to $192.6 million and $0.87 for the six months ended June 30, 2025
•ROAA of 2.22% compared to ROAA of 1.95% in the prior year
•Efficiency ratio of 46.4%; Adjusted efficiency ratio1, 2 of 45.9%, compared to 50.5% and 48.5% respectively, in the prior year 1 These are non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
2 Fully-tax equivalent basis.
2Loan balances include mortgage loans held for sale and nonaccrual loans of $51.4$55.1 million and $48.8$46.4 million as of MarchJune 31,30, 2026 and 2025, respectively.
Net interest income increased for both the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, primarily due to growth in average earning assets and expansion of the net interest margin. Average earning assets increased 5.7% and 6.4% for the three and six month periods, respectively, reflecting growth in deposits, retained earnings, and capital generated through our initial public offering.
For the three months ended June 30, 2026, net interest income increased $17.7 million, or 9.1%, to $212.8 million. On an FTE basis, net interest income (non-GAAP) increased 9.0% to $214.4 million. Net interest margin increased 13 bps to 4.40%4.40%, while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.43%.
For the six months ended June 30, 2026, net interest income increased $37.1 million, or 9.6%, to $421.4 million. On an FTE basis, net interest income (non-GAAP) increased 9.6% to $424.8 million. Net interest margin increased 13 bps to 4.36%, while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.39%.
Total interest income increased for both periods, driven by earning asset growth, continued repricing of loans and securities, and deployment of deposit and IPO-related funding into securities. Total interest income increased 6.0% to $260.4 million for the quarter and 6.7% to $518.5 million for the six month period. On an FTE basis (non-GAAP), total interest income increased 6.0% to $262.0 million and 6.7% to $521.9 million, respectively.
Interest expense decreased due primarily to lower rates paid on time deposits, federal funds purchased, and customer repurchase agreements, partially offset by growth in savings and interest-bearing deposits. Interest expense declined $3.0 million, or 5.9%, for the quarter and $4.5 million, or 4.4%, for the six month period compared to the corresponding periods in 2025.
Net interest income totaled $208.6 million for the three months ended March 31, 2026, an increase of $19.3 million, or 10.2%, compared to $189.3 million for the three months ended March 31, 2025. On an FTE basis, net interest income (FTE) (non-GAAP) increased to $210.4 million from $190.9 million, an increase of 10.3%. Our net interest margin increased 13 basis points to 4.32% for the quarter compared to 2025, driven by solid underlying average earning asset growth of $1.3 billion, or 7%, resulting from growing deposits, earnings retention and our IPO. These funds have largely been invested in securities and short-term earning assets. Our net interest margin (FTE) (non-GAAP) increased to 4.36% in the same three months of 2026, compared to 4.23% for the same period in 2025.
Total interest income was $258.1 million for the three months ended March 31, 2026, an increase of $17.8 million, or 7.4%, compared to $240.2 million for the same period in 2025. On an FTE basis, total interest income (FTE) (non-GAAP) was $259.9 million for the quarter, an increase of $18.1 million, or 7.5%, compared to $241.8 million in the same quarter of the prior year. The increase was primarily due to the repositioning of the investment portfolio, from lower-yielding bonds to higher-yielding investments at higher market rates, the investment of IPO proceeds, and the growth in deposits.
Interest expense decreased $1.5 million, or 2.9%, to $49.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was driven by reduced costs on time deposits, federal funds purchased, and customer repurchase agreements, as rates began to lower after rate cuts by the Federal Reserve began in 2024, partially offset by increased volume on savings and interest bearing deposits.
The provision for credit losses, including provision for off-balance sheet credit exposures, was $6.7 million for the six months ended June 30, 2026, compared to $2.9 million for the six months ended June 30, 2025. For the three months ended June 30, 2026, the provision was $3.5 million compared to a net recovery in the prior-year quarter. The lower provision expense in the prior-year quarter was primarily driven by a $5.0 million reserve release associated with the reclassification of the consumer lease portfolio as held for sale in June 2025, which reduced the allowance for credit losses in the Consumer Banking segment. Excluding this, the current-quarter provision decrease compared to the prior-year quarter primarily reflects changes in portfolio composition, including the continued strategic de-emphasis of the indirect consumer lending portfolio.
The provision for credit losses, including provision for off-balance sheet credit exposures, was $3.1 million for the three months ended March 31, 2026, an increase of $0.2 million, or 7.7%, compared to $2.9 million for the three months ended March 31, 2025. The increase compared to prior-year quarter primarily reflected higher average loan balances during the first quarter of 2026, whereas loan balances declined during the three months ended March 31, 2025, in addition to the impact of portfolio mix and economic assumptions incorporated into the allowance for credit losses methodology.
The following table presents noninterest income for the three and six months ended MarchJune 31,30, 2026 and 2025.
Noninterest income was $65.1$69.6 million for the three months ended MarchJune 31,30, 2026, an increase of $6.3$19.5 million, or 10.7%,38.9%, compared to $58.8$50.1 million for the threesame monthsperiod ended March 31,in 2025. The increase was primarily duedriven toby a 14.8%, or $1.8 million, increase in fees for fiduciary services along withcontinued growth in brokeragewealth servicesmanagement services, as discussed below. Current quarter results also included $8.4 million of 18.2%,gains orrecognized $1.2on million.holdings Additionally,of inVisa B shares, partially offset by a $7.8 million loss related to the currentselective quarter,repositioning of certain investment securities to capitalize on attractive market opportunities. In addition, results for the second quarter of 2025 were reduced by a $1.7$13.6 million gainloss wasassociated recognized in other income fromwith the liquidationsale of the consumer lease portfolio.portfolio, Significantwhich componentswas of the increaserecorded in noninterestother income are described in further detail below.income.
For the six months ended June 30, 2026, noninterest income was $134.6 million, an increase of $25.8 million, or 23.7%, compared to $108.9 million for the same period in 2025. The increase primarily reflected growth in wealth management services, driven by continued strong growth in assets under advice. Results for the first six months of 2026 also benefited from the Visa B share gains, while the prior-year period was impacted by the $13.6 million consumer lease portfolio loss. These factors were partially offset by the $7.8 million loss recognized on the repositioning of investment securities during the second quarter of 2026.
Wealth management services. Wealth management services consists of brokerage services and fiduciary service fees earned from trust asset management and investment advisory services. For the three months ended June 30, 2026, wealth management services increased $3.9 million, or 20.3%, to $23.2 million compared to the same period in 2025. For the six months ended June 30, 2026, wealth management services increased $7.0 million, or 18.2%, to $45.5 million compared to the same period in 2025. The increases were primarily driven by higher average assets under advice resulting from favorable market performance during both the quarterly and year to date periods. The year to date increase also reflected the benefit of new assets under advice and favorable net client fee growth. Assets under advice grew $3.0 billion from June 2025, or 21.3%, to $17.3 billion at June 30, 2026.
1 This is a non-GAAP financial measure we believe is helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
Brokerage services and fees for fiduciary services. Brokerage services and fees for fiduciary services relate to our wealth management services and comprise of fees earned for management of trust assets and investment services. Brokerage services increased $1.2 million, or 18.2%, to $7.9 million for the first three months of 2026, compared to the same period in 2025. The increase primarily reflected higher average assets under advice driven by continued strong net new AUA, partially offset by a reduction from market movement during the quarter. Fees for fiduciary services increased 14.8%, or $1.8 million, to $14.3 million for the same period.
Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income increasedwas $1.7 million, to $2.5$2.0 million for the first three months ofended June 30, 2026, compared to the loss of $12.0 million in the prior year quarter. For the six months ended June 30, 2026, other income was $4.6 million, compared to a loss of $11.1 million for the same period in 2025. The increaseyear-over-year wasincreases drivenwere byprimarily aattributable $1.7to the $13.6 million gain that wasloss recognized fromin June 2025 on the liquidationsale of the consumer lease portfolio in the first three months of 2026.portfolio.
1 This is a non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
The following table presents the major components of our noninterest expense for the three and six months ended MarchJune 31,30, 2026 and 2025:
Total noninterest expense was $126.6$131.4 million for the three months ended MarchJune 31,30, 2026, an increase of $4.4$4.6 million, or 3.6%, compared to $122.3$126.8 million for the threeprior monthsyear ended March 31, 2025.quarter. The increase was primarily due to increases in salaries and employee benefits, legalbenefits and professionalnet fees,occupancy and bankcard processing, rewards and related costs,equipment, partially offset by a reduction in other expenses. For the six months ended June 30, 2026, total noninterest expense was $258.0 million, an increase of $8.9 million, or 3.6% compared to the same period in 2025. In addition to the categories noted above, the six month period increase was also driven by an increase in legal and professional fees, and bankcard processing, rewards, and related costs.
Salaries and Employee Benefits. Salaries and employee benefits increased $5.3 million, or 7.1%, to $80.0 million when comparing the second quarter of 2026 to the prior year quarter. These expenses were $76.0$156.1 million for the first threesix months of 2026, an increase of $4.8$10.1 million, or 6.7%,6.9%, compared to $71.2$146.0 million for the same period in 2025. ThisFor both the three and six month ended reporting periods, this increase was primarily the result of merit and other salary increases and higher compensation costs associated with elevated performance basedlevels, compensationwhile andstaffing regularlevels meritremained increases.generally Full-timeconsistent equivalents were flat towith the prior year quarter.periods.
LegalNet Occupancy and ProfessionalEquipment. Fees.Net Legaloccupancy and professionalequipment feesincreased were$0.7 $6.1million, or 6.2% to $12.4 million for the first three months ended June 30, 2026, compared to the same period in 2025. Net occupancy and equipment was $24.6 million for the first six months of 2026, an increase of $1.2$1.0 million, or 24.3%,4.5%, compared to $4.9$23.5 million for the same period in 2025,2025. This increase was primarily reflectingthe higherresult costsof relatedcontinued toinvestment technologyin improvementour initiativesbranch and additional costs associatednetwork, with beingthe aopening publicof company.four new full-service branches since June 2025.
Legal and Professional Fees. Legal and professional fees were $11.6 million for the first six months of 2026, an increase of $1.3 million, or 12.3%, compared to $10.4 million for the same period in 2025, primarily reflecting higher costs related to technology improvement initiatives and additional costs associated with being a public company, such as auditing and insurance costs.
Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs increased $0.7$0.9 million, or 10.4%6.0% for the first threesix months of 2026, compared to the same period in 2025, primarily reflecting $0.4 million in conversion-relatedcredit refundscard rebates received in the first quarter of 2025 that did not recur in 2026.2026, as well as an increase in card transaction volume.
Other Expenses. For the three months ended June 30, 2026, other expenses decreased $1.8 million to $14.3 million, compared to the same period in 2025. Other expenses decreased $2.2$4.0 million, to $14.1$28.4 million for the first threesix months of 2026, compared to the same period in 2025. The decrease was primarily due to $3.1$1.9 million higher residual loss expense in 2025the second quarter of 2025, and a $4.9 million higher residual loss for the first six months of 2025, on the leasedconsumer carlease portfolio as a result of declining fair market values. The reduction in expenses coincided with the sale of this portfolio. This was partially offset by increases in various other expense categories.
The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities in whichwhere we do business. Income tax expense was $32.9$33.7 million for the three months ended MarchJune 31,30, 2026, representing an effective tax rate of 22.8%, compared to $28.1$27.0 million and an effective tax rate of 22.9%,22.8%, for the same period in 2025. For the first six months of 2026, income tax expense was $66.5 million, compared to $55.1 million for the same period in 2025. Both periods had an effective tax rate of 22.8%. The increase in income tax expense of $4.8 million, or 17.0%, was driven by higher pre-tax income year over year.
The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 12, Business Segment Reporting," to our consolidated financial statements in this Quarterly Report on Form 10-Q.
For the three months ended MarchJune 31,30, 2026, Consumer Banking net income increased $4.7$10.0 million, or 14.9%,35.0%, to $36.6$38.5 million compared to the same period in 2025. The increase was primarily due tothe increasedexpected net interest income of 8.1% and a $1.7 million gain on finalizationsale of the consumer lease portfolio sale,in June 2025, which resulted in a $13.6 million loss. This was partially offset by increasedthe noninterest$5 expensesmillion release of 5.2%.the provision that increased Consumer Banking net income during 2025.
For the three months ended MarchJune 31,30, 2026, Commercial Banking net income increased $5.3$2.5 million, or 9.0%,4.2%, to $63.9$63.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 6.4%4.8% driven by an increase in the FTP paid on deposits.
For the three months ended MarchJune 31,30, 2026, Wealth Management net income increased $1.5$1.7 million, or 33.8%,40.0%, to $6.0$6.1 million compared to the same period in 2025, as assets under advice increased $2.5 billion.increased. The 18.2%21.3% rise in total AUA was driven by continued strong net new AUA, partiallywhich offsetgrew by$3.0 a reductionbillion from marketJune movement.2025, to $17.3 billion at June 30, 2026.
Consumer Banking Operating Results
For the six months ended June 30, 2026, Consumer Banking net income increased $14.7 million, or 24.4%, to $75.1 million compared to the same period in 2025. The increase was primarily driven by growth in net interest income of $11.6 million, or 7.5%, and a $17.9 million improvement in noninterest income largely reflecting the absence of the $13.6 million consumer lease portfolio loss recognized in the second quarter of 2025. These increases were partially offset by a $5 million increase in provision expense, resulting from the expected sale of the consumer leasing portfolio in June 2025.
Commercial Banking Operating Results
For the six months ended June 30, 2026, Commercial Banking net income increased $7.8 million, or 6.5%, to $127.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 5.6% driven by an increase in the FTP paid on deposits.
Wealth Management Operating Results
For the six months ended June 30, 2026, Wealth Management net income increased $3.2 million, or 36.9%, to $12.0 million compared to the same period in 2025. The increase was driven by noninterest income growth of $6.6 million, or 17.9%, reflecting continued strong growth in assets under advice, which increased $3.0 billion, or 21.3%, to $17.3 billion at June 30, 2026, driven by strong net new asset inflows partially offset by market movement.
The following discussion provides an overview of the Company’s financial condition, asset quality, liquidity position, and regulatory capital as of MarchJune 31,30, 2026, with comparisons to the prior year quarter where relevant. This analysis highlights the key drivers of balance sheet changes, evaluates trends in credit performance, and outlines the strength of the Company’s liquidity and capital resources. Together, these measures reflect management’s ongoing focus on prudent risk management, disciplined balance sheet strategy, and maintaining a strong financial foundation to support continued operations and future growth.
As of MarchJune 31,30, 2026:
•Total assets decreased 2.2% to $20.3 billion as of June 30, 2026 from $20.8 billion as of December 31, 2025, reflecting a net decline in deposits. This is driven by the expected outflow of seasonal deposits, primarily public funds.
•Total assets remained stable with a decrease of 1.4% from December 31, 2025.
•Total loans held for investment as of MarchJune 31,30, 2026 totaled $11.5$11.7 billion, an increase of $98$239 million, or 0.9%,2.1%, compared to $11.4 billion as of December 31, 2025. The increase was primarily due to increases in commercial real estate,estate and residential mortgage loans, partially offset by a decline in other consumer loans.
•Investment securities grew $650 million, an increase of 10.1% from December 31, 2025. Growth was driven by the strategic repositioning of excess liquidity into higher-yielding investment securities as IORB rates declined over the previous two years, and reduced returns on excess Federal Reserve balances. During the period, the Company repositioned approximately $210 million of securities yielding 2.0% into approximately $202 million of securities yielding 4.5% and extended effective duration of those securities from 1.7 years to 3.3 years.
CBC insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding CBC (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Millennium Management (Israel Englander) | 2026-06-30 | 645,144 | $19.6M | 0.01% | Added 149% |
| Two Sigma Investments | 2026-06-30 | 271,281 | $8.2M | 0.01% | Reduced 18% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 112,545 | $3.4M | 0.0% | New position |
| Soros Fund Management | 2026-06-30 | 92,846 | $2.2M | — | Sold out |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 34,318 | $1.0M | 0.0% | New position |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 33,269 | $1.0M | 0.0% | New position |