Central Bancompany, Inc. Provides Mid-Quarter Update in Response to Recent Industry Events

March 27, 2023 (Jefferson City, Mo.) – In light of recent industry events, we want to update you on our financial strength. As you might expect, Central Bank has held true to its conservative community banking model that has allowed us to flourish for 120 years, including the currently volatile environment. Specifically:

• We have increased operating earnings each year for the last 38 years and expect this trend to continue in 2023.
• Liquidity position continues to remain very strong with approximately $7bn in liquidity, more than twice the amount of our uninsured deposits.
• We have experienced no material change in our bank deposits in March of 2023 and do not anticipate tapping any of the Fed liquidity programs.
• Our bond portfolio is conservatively positioned with more than 98% invested in obligations of the US government or its agencies, an effective duration of approximately 2.3yrs, and approximately 72% maturing or repricing in the next 3 years.
• Our capital ratios are among the highest for US banks our size. As of December 31, 2022, we had a total capital ratio of 20%, which is well above the regulatory minimum of 8% and well in excess of peers. Adjusted for unrealized losses on securities, total capital ratio would be 17%. We expect our capital ratios to continue growing in the first quarter of 2023.

We pride ourselves in our steadfast commitment to the financial well-being of our customers and stand ready to assist them in achieving their financial goals.  

Forward-Looking Safe Harbor Statement

This release contains future-looking information and projections that are not statements of historical fact and that constitute “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements with regarding the Company’s business plans and investment strategies, expectations with respect to investments in employees, branches and technologies, as well as net income growth; the Company’s profitability, the economic and interest rate environment; and the Company’s expenses. Words or phrases such as “anticipate,” “believe,” “aim,” “can,” “conclude,” “continue,” “could,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “may,” “might,” “outlook,” “possible,” “plan,” “predict,” “project,” “potential,” “seek,” “should,” “target,” “will,” “will likely,” “would,” or the negative of these terms or other comparable terminology, as well as similar expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements express management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are outside of management’s control. As a result, actual results and outcomes may differ, possibly materially, from the results or outcomes indicated in these forward-looking statements. Factors that may cause actual results or outcomes to differ from those included in our forward-looking statements include, but are not limited to: disruptions in our business operations due to COVID-19; the magnitude, duration and severity of the COVID-19 pandemic or any other global disruption that may occur; changes in consumer demand for financial services; our ability to retain key management and employees; and general competitive, economic, political and market conditions and fluctuations.

The forward-looking statements contained in this release are made as of March 27, 2023, and are based on information available to management on such date. We do not undertake any obligation to update, supplement or correct any of these forward-looking statements.