2020 SECOND QUARTER REPORT - Central Bank

Central Bank & Trust Co.

Central Insurance Services

Central Investment Center, Inc.

2020

SECOND QUARTER

REPORT

CONNECTING WITH

OUR

COMMUNITIES.

MISSION STATEMENTThe mission of Central Bancshares is to become

Kentucky’s leading, high-performing, community

banking company by empowering our staff to deliver

consistently superior service and value to our customers,

shareholders and communities. We will be successful because

Central Bankers are our greatest resource and our most

sustainable advantage.

In the wake of a year consumed with crisis, Central Bankers have demonstrated incredible

perseverance. Their work relative to securing Paycheck Protection Program loans for both

customers and non-customers is an embodiment of our long-standing pledge to serve the people

and businesses of Kentucky. This commitment is underscored by Central Bank’s PPP loan volume,

which accounted for roughly 8% of Kentucky’s total for PPP loans.

For additional copies or information:MARKETINGCENTRAL BANK300 West Vine StreetLexington, KY 40507

HELPING TO KEEP OUR COMMUNITIES STRONG.

74 YEARS OF SERVINGKENTUCKY

CONTENTS Financial Highlights 1

Consolidated Balance Sheets 2

Consolidated Statements of Income 3

Boards of Directors 4

Officers 6

CONTENTS Financial Highlights 1

Consolidated Balance Sheets 2

Consolidated Statements of Income 3

Boards of Directors 4

Officers 6

FINANCIAL HIGHLIGHTS

For six months ended June 30(dollars in thousands, except share data)

RESULTS OF OPERATIONS: Net income Net income per share Cash dividends per share Book value per share at quarter end

AT JUNE 30: Assets Earning assets Net loans Deposits Shareholders’ equity

PERFORMANCE RATIOS: Return on average assets Return on average shareholders’ equity Average tangible equity to average tangible assets Net charge-offs to average loans Allowance for loan losses as a percentage of quarter end loans Net interest margin (tax equivalent)

2020

$ 10,1500.290.009.16

$ 3,147,4083,034,4332,359,5502,537,665

318,690

0.70%6.52%

9.48%0.05%

0.90%3.58%

2017

$ 9,1150.260.007.10

$ 2,315,6082,185,3811,851,9951,939,642

247,045

0.80%7.58%

10.02%

0.04%

1.16%3.94%

2016

$ 9,1590.260.006.64

$ 2,254,4742,119,2661,685,7331,880,799

230,888

0.84%8.13%

9.71%0.05%

1.26%3.75%

2018

$ 13,6390.390.007.72

$ 2,510,9262,396,6392,018,0272,052,387

268,444

1.12%10.50%

10.12%

0.02%

1.04%4.02%

2019

$ 16,5160.470.008.55

$ 2,675,4932,575,6992,112,7642,141,569

297,325

1.29%11.58%

10.66%0.05%

1.00%4.10%

2020 SECOND QUARTER REPORT 1

$ 56,165 374,100

430,265 272,659

2,380,923 (21,373

2,359,550 26,867

6,751 14,313 37,003

$ 3,147,408

$ 1,007,768 1,529,887 2,537,655

183,949 500

55,317 15,000 36,297

2,828,718

3,479

- 6,890

316,829 (662

(7,846 318,690

$ 3,147,408

2

CONSOLIDATED BALANCE SHEETS

ASSETS Cash and due from financial institutionsInterest bearing deposits with other financial institutions Total cash and cash equivalentsDebt securities Loans, net of unearned incomeAllowance for loan losses Loans, netPremises and equipment, netFederal Home Loan Bank stockIntangible assetsPrepaid expenses and other assets Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITYDeposits: Non-interest bearing Interest bearing Total deposits Repurchase agreementsFederal funds purchasedFederal Home Loan Bank advancesSubordinated debenturesOther liabilities Total liabilities

SHAREHOLDERS’ EQUITYCommon stock (voting), $10 par value; 350,000 shares authorized; 347,922 shares issued and outstandingCommon stock (non-voting), no par value; 34,650,000 shares authorized; 34,444,278 shares issued and outstandingAdditional paid-in capitalRetained earningsUnearned Employee Stock Ownership Plan sharesAccumulated other comprehensive income (loss) Total shareholders’ equity Total liabilities and shareholders’ equity

June 302020

June 302019

$ 50,761 175,400 226,161

259,537 2,134,011

(21,247 2,112,764

29,639 6,751

14,313 26,328

$ 2,675,493

$ 699,752 1,441,817 2,141,569

145,144 500

50,412 15,000 25,543

2,378,168

3,479

-

6,890 293,490

- (6,534

297,325 $ 2,675,493

) )

(in thousands, except share data)

)))

32020 SECOND QUARTER REPORT

For six months ended

CONSOLIDATED STATEMENTS OF INCOME

INTEREST INCOME Interest and fees on loans Interest on debt securities Interest on deposits with other financial institutions

INTEREST EXPENSE Interest on deposits Interest on borrowed funds

Net interest incomeProvision for loan lossesNet interest income after provision for loan losses

OTHER INCOME Service charges on deposit accounts Service charges on loans Wealth management income Other income

OTHER EXPENSES Salaries Benefits Occupancy and equipment Other non-interest expenses

Income before provision for income taxesProvision for income taxesNet income

Basic earnings per share

June 302020

June 302019

$ 50,614 2,596 1,104

54,314

3,701 859

4,560

49,754 3,327

46,427

2,981 5,561 7,479 3,516

19,537

21,876 7,073

10,685 15,299 54,933

11,031 881

$ 10,150

$ 0.29

$ 53,216 3,437 1,683

58,336

7,115 1,134

8,249

50,087 2,061

48,026

3,551 4,816 7,367 3,746

19,480

20,404 5,515 9,785

14,279 49,983

17,523 1,007

$ 16,516

$ 0.47

(in thousands, except share data)

BOARDS OF DIRECTORS

Central Bancshares, Inc. and Central Bank & Trust Co. Board of Directors

Luther Deaton, Jr. Chairman, President & CEO, Central Bancshares, Inc. and Central Bank & Trust Co.

Joan D. Kincaid Vice Chairman of the Board, Central Bancshares, Inc. and Central Bank & Trust Co.

Ulysses Lee “Junior” BridgemanPresident & CEO, Bridgeman Foods Inc.

Michael D. Foley Retired PartnerRFH, PLLC Certified Public Accountants

Wayne M. MartinVP of Development,Retail Division,Booth Energy

Nick Nicholson Retired, Keeneland Association, Inc.

G. Michael RitchieOwner, MND Holdings, LLC

Paul E. Sullivan Partner, Frost Brown Todd, LLC

Advisory Boards of Directors

Central Bank, GeorgetownAdvisory Board of Directors

Dallas BlankenshipRetired Superintendent,Scott County Board of Education

Mason “Butch” GlassCommunity Volunteer

William C. HaughCEO, Georgetown Community Hospital

George H. LusbyRetired Scott County Judge Executive

Kimberly E. MarshallMarket President

Randy MasonOwner-Operator, McDonald’s

W. Thomas PratherChairman, Central Bank, Georgetown &Mayor of Georgetown

Central Bank, LexingtonAdvisory Board of Directors

Dennis AndersonPresident, Anderson Communities

John AtchisonCo-owner, Atchison Heller Construction

Rick AvareMAP Entities

Ray BallOwner, Ball Homes

William BrewerDink, Inc.

Jed BullardOwner, E.D. Bullard Company

Lucas CampbellGorman Company

Kevin DoyleCFO, Congleton Hacker Company

William Farish, Jr.President, Lane’s End Farm

Crinda FranckePresident, ExecuTrain of Kentucky

Don Howard, Jr.President, H&W Management

John Irvin, Jr.Attorney, Kinkead & Stilz, PLLC

Bill JusticePresident, Justice Real Estate

Louis MulloyLTM Associates, LLC

Deborah Spike-Pierce, DVMPresident & CEO, Rood & Riddle Equine Hospital

Bill QuenomoenCEO, Denham-Blythe Company

Nick RowePresident, Kentucky American Water Co.

Adolph Rupp IIIRupp & Associates, Inc.

Kenny SchompPresident & Owner, Lexington Truck Sales, Inc.

Nick StrongPresident, Old Colony Insurance

Bill Thomason President, Keeneland Association

Dr. Lee ToddRetired President, University of Kentucky

Lawrence WeathersChief of Police, Lexington

Carol WorshamPresident, Winterwood, Inc.

Central Bank, LouisvilleAdvisory Board of Directors

Claire AlagiaGeneral Manager,Wakefield Reutlinger Realtors

Ronald L. CarmicleOwner, PLC Management

Marcia CassadyDirector, Capital Link Consultants

William “Billy” K. DoelkerOwner, Key Homes, LLC


William P. MaloneRetired, Deming, Malone, Livesay & Ostroff

William E. Summers IVRetired, Deputy Mayor, Louisville Metro Government

Jude ThompsonCEO, Delta Dental

Mark Wheeler Market President

4

Chairman, President & CEO

Luther Deaton, Jr.

Central Bank, Madison County Advisory Board of Directors

Dianna Ackerman Broker/Owner, ERA Professional Hometown Services

Robert R. BlytheMayor of RichmondPastor, First Baptist Church

James R. CarrBuilder and Developer

Shannon Combs Partner, Combs, Parsons and Collins Funeral Home

Jeff FultzMarket President

Greg GerardPresident, Baptist Health Richmond

James Ernest HillardOwner, Middletown Industrial

Mike Rice Owner, Cars of Kentucky, Inc.

Rita H. SmartOwner, The Bennett House

Central Bank, NicholasvilleAdvisory Board of Directors

Joan D. KincaidVice Chairman of the Board, Central Bancshares, Inc. and Central Bank & Trust Co.

Sandra J. AdamsOwner, Zaxby’s


Ben A. RainwaterTutt, Inc.

Paul E. Sullivan Partner, Frost Brown Todd, LLC

Benjamin G. TaylorTaylor Made Farm & Sales Agency, Inc.

Alan S. VanArsdallMarket President

Central Bank, Northern Kentucky Advisory Board of Directors Mark AyerManaging MemberReading Investments, LLC

Adam BortzCEO, Towne Properties

Tonya Burns-GerakosTonya Burns Law

Chris CarleSenior Vice President & COO, St. Elizabeth Healthcare, Florence

Wayne CarlislePresident & CEOCarlisle Enterprises

David HeidrichCEO, Zalla Companies

Thomas J. MunninghoffPresident, Munninghoff, Lange & Co.

Greg SchrandPresident, GSE, Inc.

Gregory ShumateMember, Frost Brown Todd, LLC

James UebelMarket President

Paul VerstPresident & CEO, Verst Group Logistics, Inc., and Zenith Logistics

John YeagerOwner, Ashley Development

Central Bank, WinchesterAdvisory Board of Directors


Gerald F. (Kelly) Healy IIIDirector of Operations McDonald’s

Glenn D. LeveridgeChairman, Central Bank Winchester

Rex McCrary, D.M.D.Dentist

Jeff MonohanPresident The Allen Company

Ralph J. PalmerPresident, Palmer Engineering Co.

Patricia M. SmithPresident, MD Consulting, Inc.

Robert Strode Retired

Mary Jane WarnerManager of Power Delivery, East Kentucky Power Cooperative, Inc.


BOARDS OF DIRECTORS

OFFICERS

Central Bancshares, Inc.

Luther Deaton, Jr. Chairman, President & CEO

Joan D. Kincaid Vice Chairman

Susan L. Simmons Vice President

Ranee LelandVice President &Corporate Secretary

Edward BarnesTreasurer

Central Bank, Lexington

ADMINISTRATION

Luther Deaton, Jr. Chairman, President & CEO

Ranee LelandVice President &Corporate Secretary

Auditing

Craig L. Daniels, CPA Executive Vice President

Lisa S. Grant, CRCMSenior Vice President & Compliance Officer

Donna J. Craven, CRCMVice President

Danny C. NolandVice President

John T. Miner, Jr.Auditing Officer

COMMERCIAL BANKING

Paul R. Thornsberry Executive Vice President

Commercial Lending

David RossSenior Vice President

Shane AndersonVice President

Mark R. Fox Vice President

Stephen J. MalloryVice President

Jeff MurphyVice President

Commercial Real Estate Lending

Megan BarlowVice President

Susan A. DeanVice President

Paul B. DrakeVice President

Gary LoucksVice President

Jordan OwensVice President

Consumer Lending

D. Keith PrestonVice President

Central Bank Mortgage

Catherine HimesSenior Vice President

Tom BreathittVice President

Brad FieldsVice President

Rebecca HaddixVice President

Lorraine KinleyVice President

Brian W. West Vice President

Vina RisnerAssistant Vice President

Bradley SutherlandAssistant Vice President

Lisa Hart Secondary Mortgage Underwriter Officer

Chris McGaugheyCRA Community Development Officer

Corporate Services

Karen Rowland, CTPSenior Vice President

Joan Patterson, CTPVice President

Lisa K. Vickers Vice President

Chris CampbellAssistant Vice President

Allison CarterAssistant Vice President

Ashley N. RodgersCash Management Officer

Credit Analysis

Benjamin WilbanksVice President

Michael DanhauerCredit Analyst Officer

Special Assets Ellen Sharp Senior Vice President

Steve HallVice President

Julie SzymanskiVice President

Becky MullinsSpecial Assets Officer

Loan Review

Marie A. YoungVice President

LeeAnn LayneVice President

Leigh M. CarrAssistant Vice President

Small Business

Richard D. Hartley Vice President

Terri A. SteinVice President

HUMAN RESOURCES

Susan Simmons Executive Vice President

Amy ManningSenior Vice President

Shelia Plymale Senior Vice President

June CarpenterAssistant Vice President

TECHNOLOGY SERVICES

Julie Bondra Executive Vice President

Anna ClaytonSenior Vice President

Kevin J. LippertSenior Vice President

David HakeVice President

E. Sean ProfittVice President

Adrian EmbreeTechnology Officer

Kyle HamiltonTechnology Officer

RETAIL & PRIVATE BANKING

Gregory M. Shewmaker Executive Vice President

Michael GartnerSenior Vice President

Matthew S. RatliffVice President

Banking Centers

Lana AlexanderAssistant Vice President

Gina EnsmingerAssistant Vice President

Angela M. FrieszAssistant Vice President

Barbara JohnsonAssistant Vice President

Karen Lackey Assistant Vice President

Philip RochesterAssistant Vice President

Alexandra T. WolfAssistant Vice President

Sharon BradleyRetail Banking Officer

6

Sheila CarmackRetail Banking Officer

Rachel JonesRetail Banking Officer

Laura M. OwensRetail Banking Officer

Client Services

Cathy K. Combs Senior Vice President

Diane Gentry Client Services Officer

Marketing

Lesley CatronSenior Vice President

Correspondent Banking

Doug Flynn Correspondent Banking Officer

Private Banking

Mark RuddellSenior Vice President

Leslie FlynnVice President

Alicia JordanVice President

Christopher ThomasonVice President

Melissa ShimfesselPrivate Banking Officer

FINANCIAL PLANNING Edward BarnesExecutive Vice President & CFO

Mark. A. Hampton, CPASenior Vice President

Lisa A. WilliamsonAssistant Vice President

Mark KendallFinancial Planning Officer

ENTERPRISE RISKMANAGEMENT

C. Gregory StacyExecutive Vice President

Beth Lakes RobinsonVice President

Funds Management

James R. NallAssistant Vice President

OPERATIONS AND SUPPORT

Operations

Laura Schweitzer Executive Vice President

Karen G. Crawley Senior Vice President

Robin Michul Senior Vice President

Harvey SwordVice President

Internet Banking

Brenda P. Oaks Assistant Vice President

Card Services

Beverly Smalley Assistant Vice President

Loan Processing

Donna M. TurnerVice President

Loan Services

Timothy R. AustinVice President

Shawn PresnellVice President

Deposit Services

Lisa DurhamVice President

Financial Intelligence & Security Unit

Shane EnsmingerVice President & Director of Security Angela D. CampbellAssistant Vice President

Alan StewartSecurity Officer

WEALTH MANAGEMENT

Trust

Barry HickeyExecutive Vice President

Business Development

Charles N. Rush, Jr.Vice President

Employee Benefits Vicky L. Foster Vice President

Sheila C. Parks Vice President

Operations

Leigh Ann YoungAssistant Vice President

Carol RobinsonTrust Operations Supervisor

Personal Trust Kathryn Wilson GibsonSenior Vice President

Elizabeth JohnsVice President

Matthew Frank, CFP®

Assistant Vice President

Anna HovekampAssistant Vice President

Lauren LovelyTrust Officer

Investment Management

Timothy D. FyffeSenior Vice President

Thomas CorrVice President

R. Scott KingVice President

Chris TaylorTrust Officer

CENTRAL INSURANCESERVICES

Ross BarnettePresident

Tom FrancisVice President

Rob WesselVice President

Justin WhippleVice President

Steven P. WrightVice President

Don YadenVice President

Chris HarrisonAssistant Vice President

Andrew AlexanderCommercial Insurance Officer

Joanna Gwinn-EstillInsurance Officer

CENTRAL INVESTMENT CENTER, INC.

Jeff GinnanExecutive Vice President & Senior Financial Advisor

Jeff Fields, CRPS®

Vice President & Financial Advisor

Tony BrownFinancial Advisor

Deborah FisherFinancial Advisor

Thomas E. Roberts, CFP®

Financial Advisor

John SaunierFinancial Advisor

Jennifer WilsonFinancial Advisor

CENTRAL BANK, GEORGETOWN

Kimberly E. MarshallMarket President

Jennifer J. RobertsVice President


OFFICERS

Andrea SmithVice President

Patricia Voigt Vice President

Jennifer PhillipsAssistant Vice President

Mortgage Lending Ashley WeirVice President

CENTRAL BANK, LOUISVILLE

Mark WheelerMarket President

James E. Evans IISenior Vice President & Senior Market Lender

Amy SullivanSenior Vice President & Senior Market Lender

John Hubbuch, Jr.Vice President

Joan StraferVice President

Credit Analysis

Sandra StanleyAssistant Vice President

Mortgage Lending

Bridgette WingateMortgage Lending Officer

Retail Banking

Edman CundiffVice President

Elaine FawbushAssistant Vice President

Private Banking

Robert SliderSenior Vice President

Mary LittrellVice President

Jim MorrisVice President

M. Trish OsbornVice President

Wealth Management

Bill KaiserVice President

Ballard “Cash” CassadyPersonal Trust Officer

CENTRAL BANK, MADISON COUNTY


Cameron AbneySenior Vice President &Senior Market Lender

Ken RileyVice President

Retail Banking

Shawn McWilliamsVice President

Kristy NapierRetail Banking Officer

Mortgage Lending Donna HaneyVice President

CENTRAL BANK, NICHOLASVILLE

Alan S. VanArsdallMarket President

Jill SloneAssistant Vice President

Kathy MooreRetail Banking Officer

Brandy OsborneCommercial Lending Officer

Adam RodgersCommercial Lending Officer

Mortgage Lending

Monna Treadway Vice President

CENTRAL BANK, NORTHERN KENTUCKY

James UebelMarket President

Brett BlackwellSenior Vice President &Senior Market Lender

Matthew E. EilersVice President

Karen J. HomanVice President

Amy RobertsVice President

JB SchmidtAssistant Vice President

Mortgage Lending

Dennis BarnesVice President

Dottie DawsonMortgage Lending Officer

Retail Banking

Steven GillespieVice President

Adam MetzgerVice President

Mark MintonVice President

Diana WebsterVice President

Private Banking

John FinleySenior Vice President

Karen HartigVice President

Larry LuebbersVice President

Wealth Management

Jeff AugsbackTrust Officer

CENTRAL BANK, WINCHESTER


Tim M. DuncanSenior Vice President &Senior Market Lender

Lisa T. EarlywineVice President

Erica ParksAssistant Vice President

Retail Banking

Tammy M. CarrollVice President

Deborah R. BanksRetail Banking Officer

Crystal HuntRetail Banking Officer

Mortgage Lending

Paula BeebeVice President

Lee ColemanVice President

OFFICERS

8


NOTES

Central Bank & Trust Co. is a wholly owned subsidiary of Central Bancshares, Inc.

centralbank.com(859) 253-6222

(800) 637-6884

Member FDIC

2020 SECOND QUARTER REPORT - Central Bank

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