Central Bancompany, Inc.CBC
Central Bancompany, Inc. Segments Disclosure
Business Segment Reporting
The Company’s reportable segments are determined by its Chief Executive Officer, who is the designated CODM. The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking, and Wealth Management (collectively, the Business Segments). These operating segments are strategic business units that offer different products and services and have different marketing strategies.
To evaluate segment performance and make informed decisions regarding the allocation of resources to the segments, the CODM reviews each segment’s actual revenues, consisting of net interest income plus noninterest income, and net income against budgeted revenues and net income on a regular basis. This process allows the Company to (1) assess the profitability of a specific business segment by aligning relevant costs with revenue, and (2) evaluate each business segment in a way that reflects its economic impact on consolidated earnings.
During the year ended December 31, 2025, the Company modified the structure of its internal organization to better align financial reporting with the way management evaluates performance and allocates resources. Previously, the Company reported two operating segments: Community Banking and Wealth Management. As a result of the organizational changes, management now reviews operating performance and makes resource allocation decisions based on three operating segments: Consumer, Commercial, and Wealth Management.
This change represents a reconsideration of the Company’s operating and reportable segments in accordance with ASC 280, Segment Reporting. In accordance with ASC 280‑10‑50‑34, the Company has recast all prior‑period segment information presented for comparative purposes to reflect the new segment structure. The change affected the aggregation and presentation of certain revenues, expenses, and allocated corporate costs among the Company’s operating segments, but did not impact consolidated net income, total assets, shareholders’ equity, or cash flows for any periods presented.
Consistent with the requirements of ASC 250‑10‑50‑1(a), the recast of prior periods has been applied retrospectively to all comparative periods presented herein, and the nature and reason for the change in segment presentation are disclosed. The change did not result from a change in accounting principle but rather from a change in the organizational structure that constitutes a change in the internal information regularly reviewed by the CODM.
Management believes the new segment structure provides improved transparency into the distinct customer groups served by the Company and the economic characteristics of each segment.
The Consumer Banking operating segment consists of various consumer loan and deposit products offered primarily through its 155 full-service branches. This segment also includes residential mortgage, installment lending and other consumer loan financing options, along with debit and credit card loan and fee businesses.
The Commercial Banking operating segment includes full-service relationship banking solutions to businesses, agencies and community organizations including commercial, small business and government segments. Our business payment solutions include treasury management services, merchant and commercial bank card products.
The Wealth Management operating segment provides a full range of “fee-only” wealth management solutions, including investment management, fiduciary services, financial, estate, and tax planning services to individuals, businesses, and foundations. Services are provided through Central Trust Company and Central Investment Advisors, both divisions of The Central Trust Bank.
The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, cash, etc.) and funds provided (deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current interest rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments. The operating segments also include a number of allocations of income and expense from various support and overhead centers within the Company. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results.
Segment Financial Information
The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies in “Note 1, Summary of Significant Accounting Policies," to our consolidated financial statements. The reportable segments include a number of allocations of income and expense from various support and overhead functions within the Company.
Financial results by operating segment, including significant expense categories provided to the CODM, are detailed below:
| For the year ended December 31, 2025 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Net interest income | $ | 315,068 | $ | 436,212 | $ | (75) | $ | 38,460 | $ | 789,665 | |||||||
| Provision for credit losses¹ | 4,402 | 3,754 | (4) | 1,159 | 9,311 | ||||||||||||
| Net interest income after provision for credit losses | 310,666 | 432,458 | (71) | 37,301 | 780,354 | ||||||||||||
| Noninterest income¹ | 111,268 | 42,869 | 77,360 | 197 | 231,694 | ||||||||||||
| Noninterest expense | 243,012 | 159,151 | 52,168 | 51,159 | 505,490 | ||||||||||||
Income before income taxes1 | 178,922 | 316,176 | 25,121 | (13,661) | 506,558 | ||||||||||||
| Income taxes | 42,886 | 73,155 | 6,049 | (6,385) | 115,705 | ||||||||||||
Net income1 | $ | 136,036 | $ | 243,021 | $ | 19,072 | $ | (7,276) | $ | 390,853 | |||||||
| Assets | $ | 3,498,285 | $ | 8,530,725 | $ | 19,441 | $ | 8,703,527 | $ | 20,751,978 | |||||||
| Assets under advice | - | - | 15,956,069 | - | 15,956,069 | ||||||||||||
¹ Consumer includes a $13.6 million loss on the sale of the consumer lease portfolio recognized in other noninterest income and a $5.0 million release of provision. Net of taxes, at a tax rate of 23.84%, the total impact to net income was $6.6 million. | |||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| Noninterest income | (dollars in thousands) | ||||||||||||||||
| Service charges and commissions | $ | 39,005 | $ | 18,191 | $ | - | $ | 435 | $ | 57,631 | |||||||
| Payment services revenue | 44,629 | 22,844 | - | 97 | 67,570 | ||||||||||||
| Brokerage services | (84) | 1,346 | 24,982 | 2,452 | 28,696 | ||||||||||||
| Fees for fiduciary services | - | - | 52,375 | (421) | 51,954 | ||||||||||||
| Mortgage banking revenues | 39,571 | - | - | - | 39,571 | ||||||||||||
| Investment securities (losses) gains, net | - | - | - | (6,811) | (6,811) | ||||||||||||
| Other income¹ | (11,853) | 488 | 3 | 4,445 | (6,917) | ||||||||||||
| Total noninterest income | $ | 111,268 | $ | 42,869 | $ | 77,360 | $ | 197 | $ | 231,694 | |||||||
¹ Consumer includes a $13.6 million loss on the sale of the consumer lease portfolio. | |||||||||||||||||
| For the year ended December 31, 2025 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| Noninterest expense | (dollars in thousands) | ||||||||||||||||
| Salaries and employee benefits | $ | 110,983 | $ | 56,642 | $ | 36,907 | $ | 93,548 | $ | 298,080 | |||||||
| Net occupancy and equipment | 32,917 | 7,207 | 2,991 | 5,875 | 48,990 | ||||||||||||
| Computer software and maintenance | 6,182 | 3,438 | 1,746 | 11,190 | 22,556 | ||||||||||||
| Marketing and business development | 7,916 | 2,163 | 1,385 | 9,206 | 20,670 | ||||||||||||
| Legal and professional fees | 1,545 | 2,243 | 871 | 17,744 | 22,403 | ||||||||||||
| Bankcard processing, rewards and related cost | 22,072 | 9,661 | - | (986) | 30,747 | ||||||||||||
| Other expenses | 27,455 | 3,800 | 3,584 | 27,205 | 62,044 | ||||||||||||
| Allocated expenses | 33,942 | 73,997 | 4,684 | (112,623) | - | ||||||||||||
| Total noninterest expense | $ | 243,012 | $ | 159,151 | $ | 52,168 | $ | 51,159 | $ | 505,490 | |||||||
| For the year ended December 31, 2024 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Net interest income | $ | 276,775 | $ | 403,079 | $ | (250) | $ | 7,720 | $ | 687,324 | |||||||
| Provision for credit losses | 11,640 | 3,359 | 2 | (414) | 14,587 | ||||||||||||
| Net interest income after provision for credit losses | 265,135 | 399,720 | (252) | 8,134 | 672,737 | ||||||||||||
| Noninterest income | 124,854 | 43,334 | 69,212 | (27,010) | 210,390 | ||||||||||||
| Noninterest expense | 242,560 | 148,737 | 46,863 | 51,247 | 489,407 | ||||||||||||
| Income before income taxes | 147,429 | 294,317 | 22,097 | (70,123) | 393,720 | ||||||||||||
| Income taxes | 35,260 | 67,799 | 5,306 | (20,455) | 87,910 | ||||||||||||
| Net income | $ | 112,169 | $ | 226,518 | $ | 16,791 | $ | (49,668) | $ | 305,810 | |||||||
| Assets | $ | 3,534,547 | $ | 8,572,871 | $ | 24,728 | $ | 7,110,397 | $ | 19,242,543 | |||||||
| Assets under advice | - | - | 13,527,632 | - | 13,527,632 | ||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| Noninterest income | (dollars in thousands) | ||||||||||||||||
| Service charges and commissions | $ | 38,248 | $ | 17,449 | $ | - | $ | 440 | $ | 56,137 | |||||||
| Payment services revenue | 43,358 | 24,068 | - | 105 | 67,531 | ||||||||||||
| Brokerage services | (42) | 1,251 | 22,406 | 2,124 | 25,739 | ||||||||||||
| Fees for fiduciary services | - | - | 46,503 | (606) | 45,897 | ||||||||||||
| Mortgage banking revenues | 42,080 | - | - | - | 42,080 | ||||||||||||
| Investment securities (losses) gains, net | - | - | - | (36,661) | (36,661) | ||||||||||||
| Other income | 1,210 | 566 | 303 | 7,588 | 9,667 | ||||||||||||
| Total noninterest income | $ | 124,854 | $ | 43,334 | $ | 69,212 | $ | (27,010) | $ | 210,390 | |||||||
| For the year ended December 31, 2024 | |||||||||||||||||
| Consumer | Commercial | Wealth Management | Corp / Other | Total | |||||||||||||
| Noninterest expense | (dollars in thousands) | ||||||||||||||||
| Salaries and employee benefits | $ | 104,815 | $ | 50,991 | $ | 32,285 | $ | 92,996 | $ | 281,087 | |||||||
| Net occupancy and equipment | 31,568 | 6,439 | 2,805 | 6,319 | 47,131 | ||||||||||||
| Computer software and maintenance | 6,412 | 2,975 | 1,695 | 9,236 | 20,318 | ||||||||||||
| Marketing and business development | 8,050 | 2,108 | 1,564 | 8,268 | 19,990 | ||||||||||||
| Legal and professional fees | 840 | 1,646 | 1,076 | 22,728 | 26,290 | ||||||||||||
| Bankcard processing, rewards and related cost | 27,360 | 11,684 | - | (7,042) | 32,002 | ||||||||||||
| Other expenses | 29,291 | 3,783 | 3,164 | 26,351 | 62,589 | ||||||||||||
| Allocated expenses | 34,224 | 69,111 | 4,274 | (107,608) | - | ||||||||||||
| Total noninterest expense | $ | 242,560 | $ | 148,737 | $ | 46,863 | $ | 51,247 | $ | 489,407 | |||||||
The segment activity, as shown above, includes both direct and allocated items. Amounts in the "Corporate / Other" column include activity not related to the segments, such as administrative functions, various support and overhead operating units of the Company. Corporate administrative functions such as Compliance, Accounting, Credit Administration, Human Resources, and our Central Technology Services team expenses are allocated to the segments. These expenses will be reflected in "Corporate / Other" with the offset in allocated expenses. Expenses for the parent company, the administrative and support functions within the markets not specific to a segment, regulatory expenses, director and shareholder costs, community outreach, and other similar expenses are not allocated to the segments. In addition, "Corporate / Other" includes unallocated bank balances including the investment securities portfolio, cash held at the federal reserve, eliminations, and other items not allocated to the segments.
The Company's reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analysis and marketing strategies. The performance measurement of the segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments' financial condition and results of operations if they were independent entities.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.