Central Bancompany Sees 'Still Value' At $34 A Share, But Keeps Buybacks Small To Protect Liquidity
Executives said on the earnings call they are wary of buying back stock less than a year after going public, and CEO John Ross had no M&A news.
Central Bancompany executives told analysts on the company's third-quarter earnings call Tuesday that the stock still holds value at $34 to $35 a share, but the bank is keeping buybacks modest to avoid draining trading liquidity. CEO John Ross, asked about acquisitions, said "we have no updates for you at this time."
Why the buyback stays small
Central Bancompany posted net income of $116.2 million, or $0.48 per share, for the quarter, and Ross said capital sits well above target: $2 billion of excess capital, or $8.28 per share. The bank repurchased a minimal amount of shares and has $96 million of authority remaining.
An executive answering a Piper Sandler analyst said there is "still value at $34, $35 a share. But it's not as great as it was at $24, $25 a share." The executive added that the bank went public less than a year ago, so it is "a little bit tepid" about buying aggressively, and that the authorization is only $100 million, so it wants to pick its spots.
Ross said that "once we do a deal and get more flow out there, the dynamic will change." He said investors have given favorable feedback on not killing liquidity in the stock. Shares traded at $34.42 in Tuesday trading, for a market value of about $8.3 billion.
No word on acquisitions
Asked whether anything had changed in M&A conversations, Ross said the community is broadly familiar with the strategy the bank is pursuing and that it continues to pursue it. Any buyback shift is tied to completing a deal.
The bank behind the numbers
Central Bancompany is a Jefferson City, Missouri, bank holding company whose subsidiary, The Central Trust Bank, offers consumer, commercial and wealth management services in Missouri, Kansas, Oklahoma and Colorado. As of December 31, 2025, it had total assets of $20.75 billion and 155 full-service branches.
On the quarter, Ross reported net interest income of $218.9 million, up $20 million from a year earlier, and a 4.51% net interest margin on a tax-equivalent basis. Return on assets was 2.27%, and net charge-offs were 12 basis points. The bank also expects a non-recurring pre-tax gain of about $27 million in the fourth quarter from terminating its pension plan.
Ross closed the call by saying the bank will talk to analysts again in the new year.
Sources
- Central Bancompany: Q3 Earnings Snapshot | 9news.com — Associated Press
- Consumer agency says unclear bank fees can add up for customers | CBC News — cbc.ca
- Central Bancompany, Inc. Reports Third Quarter 2026 — globenewswire.com
