2016 second quarter report - central bank · pdf file350,000 shares authorized, ... market...
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Central Bank & Trust Co.
Central Bank of Jefferson County
Central Insurance Services
Central Investment Center, Inc.
2016
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.
The Downtown Lexington Corporation, in partnership with its members, is dedicated to enhancing downtown Lexington as a unique and vibrant destination to live, work, and play. Central Bank’s enduring support of DLC, a relationship spanning more than 25 years, is a result of our own commitment to the success of the Lexington community. Most notably, Central Bank is the presenting sponsor of Thursday Night Live.
For additional copies or
INFORMATIONMARKETINGCENTRAL BANK300 West Vine StreetLexington, KY 40507
HELPING TO KEEP OUR COMMUNITIES STRONG.
DOWNTOWN LEXINGTON
CORPORATION
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
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 assets Net charge-offs to average loans Allowance for loan losses as a percentage of quarter end loans Net interest margin (tax equivalent)
2016
$ 9,158,77226.320.00
663.62
$2,254,473,7912,119,266,3241,685,733,2051,880,798,939
230,887,760
0.84%8.13%
9.71%0.05%
1.26%3.72%
*All periods prior to 2013 include the balances and results of Salt Lick Deposit Bank which was sold effective January 1, 2013.
2013
$ 6,170,29917.73
0.00535.26
$2,101,380,2431,945,033,3101,561,373,8741,775,738,596
186,228,698
0.59%6.75%
8.11%0.32%
1.64%3.60%
2012
$ 6,236,46217.92
0.00498.53
$2,130,888,1771,952,972,6501,634,177,9221,838,962,932
173,450,399
0.59%7.33%
7.38%0.22%
1.85%3.86%
2014
$ 7,213,50620.73
0.00575.56
$2,082,171,1671,922,488,8531,617,240,7541,749,193,021
200,250,189
0.70%7.38%
8.87%0.15%
1.48%3.86%
2015
$ 8,967,68925.77
0.00616.70
$2,130,931,3801,994,376,9281,595,584,5131,798,880,596
214,564,304
0.85%8.62%
9.25%0.02%
1.40%3.70%
2016 SECOND QUARTER REPORT 1
32016 SECOND QUARTER REPORT2
(
CONSOLIDATED BALANCE SHEETS
ASSETS Cash and due from banksFederal funds sold Total cash and cash equivalentsSecurities 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 Customer sweep accountsFederal funds purchasedFederal Home Loan Bank advancesLong term debt payableOther liabilities Total liabilities
SHAREHOLDERS’ EQUITYCommon stock, par value, $10 a share; 350,000 shares authorized, 347,922 shares outstandingAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss) Total shareholders’ equity Total liabilities and shareholders’ equity
June 302016
June 302015
$ 49,446,459 147,500,000 196,946,459 279,282,019
1,707,254,353 21,521,148
1,685,733,205 35,327,527
6,751,100 14,313,393 36,120,088
$ 2,254,473,791
$ 582,410,894 1,298,388,045 1,880,798,939
106,184,820 500,000 574,986
15,000,000 20,527,286
2,023,586,031
3,479,220 6,890,468
226,754,405 (6,236,333
230,887,760 $ 2,254,473,791
$ 43,291,740 173,900,000 217,191,740 218,141,315
1,618,237,506 22,652,993
1,595,584,513 37,080,888
6,751,100 14,513,257 41,668,567
$ 2,130,931,380
$ 538,747,049 1,260,133,547 1,798,880,596
74,253,649 500,000
2,618,667 19,600,000 20,514,164
1,916,367,076
3,479,220 6,890,468
210,121,180 (5,926,564
214,564,304 $ 2,130,931,380
()
For six months ended
CONSOLIDATED STATEMENTS OF INCOME
INTEREST INCOME Interest and fees on loans Interest on securities Interest on short term investments
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 Other non-interest expenses
Income before provision for income taxesProvision for income taxesNet income
Basic earnings per share
June 302016
June 302015
$ 38,502,190 1,781,753
374,280 40,658,223
2,175,880 414,412
2,590,292
38,067,931 497,000
37,570,931
3,829,221 5,803,662 6,464,307 2,656,427
18,753,617
18,152,167 4,256,503 8,875,161
13,497,512 44,781,343
11,543,205 2,384,433
$ 9,158,772
$ 26.32
$ 37,679,049 1,286,285
218,213 39,183,547
2,571,572 618,093
3,189,665
35,993,882 -
35,993,882
4,034,341 5,252,853 6,359,527 1,386,452
17,033,173
17,245,709 3,711,432 8,560,643
12,788,924 42,306,708
10,720,347 1,752,658
$ 8,967,689
$ 25.77
)
) )
Central Bank, Madison County Advisory Board of Directors
Dianna Ackerman Broker/Owner, ERA Professional Hometown Services
Frankie C. Blevins, Jr.Attorney, Blevins Law, LLC
Robert R. BlytheEKU ProfessorPastor, First Baptist Church
James R. CarrBuilder and Developer
Shannon Combs Partner, Combs, Parsons and Collins Funeral Home
Jeff FultzMarket President
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.
Sandra J. AdamsOwner, Zaxby’s
Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLC Certified Public Accountants
Ben A. RainwaterTutt Construction
Paul E. Sullivan Partner, Frost Brown Todd, LLC
Benjamin G. TaylorTaylor Made Farm & Sales Agency, Inc.
Alan S. VanArsdallMarket President
Central Bank, No. Kentucky Advisory Board of Directors Mark AyerManaging MemberReading Investments, LLC
Tonya Burns-GerakosTonya Burns Law
Chris CarleSenior Vice President & COO, St. Elizabeth Healthcare, Florence
Helen CarrollRetired
Joseph A. Creevy, M.D.Retired Urologist
Merwin Grayson, Jr.Chairman
David HeidrichCEO, Zalla Companies
Kim PattonCOO, SFA/PDT Architects
Doug RidenourPresident, Federal Equipment
Greg SchrandPresident, GSE, Inc.
Gregory ShumateMember, Frost Brown Todd, LLC
James UebelMarket President
John YeagerOwner, Ashley Development
Central Bank, WinchesterAdvisory Board of Directors
James AllenFormer Clark County Judge-Executive
Gerald F. (Kelly) Healy IIIDirector of Operations McDonald’s
Glenn LeveridgeMarket President
Rex McCrary, D.M.D.Dentist
Jeff MonohanAssistant Vice President 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.
Central Bank of Jefferson County Board of Directors
Jonathan S. BlueChairman, Blue Equity, LLC
Ronald L. CarmicleChairman, Central Bank of Jefferson County, Partner, McCall Group
Marcia CassadyDirector, Capital Link Consultants
Luther Deaton, Jr. CEO, Central Bank of Jefferson County
Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLC Certified Public Accountants
William P. MaloneRetired, Deming, Malone, Livesay & Ostroff
William E. Summers, IVRetired, Deputy Mayor, Louisville Metro Government
Jude ThompsonOwner & CEO, Transform Business Solutions, LLC
Mark WheelerMarket President
52016 SECOND QUARTER REPORT
BOARDS OF DIRECTORSCentral 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.
Michael D. Foley PartnerRay, Foley, Hensley &Company, PLLC Certified Public Accountants
Wilbert W. James, Jr.President, Toyota Motor Manufacturing, Kentucky, Inc.
Wayne M. MartinVP of Development,Retail Division,Booth Energy
Nick Nicholson Retired, Keeneland Association, Inc.
G. Michael RitchieExecutive Vice President, Quantum Spatial, Inc.
Paul E. Sullivan Partner, Frost Brown Todd, LLC
Central Bank, GeorgetownAdvisory Board of Directors
Dallas BlankenshipRetired SuperintendentScott County Board of Education
Mason “Butch” GlassCommunity Volunteer
William C. HaughCEO, Georgetown Community Hospital
George H. LusbyScott County Judge Executive
Kimberly E. MarshallMarket President
Randy MasonOwner-Operator, McDonald’s
W. Thomas PratherChairman, Central Bank, Georgetown &Mayor - City of Georgetown
Central Bank, LexingtonAdvisory Board of Directors
Rick AvareMAP Entities
Jeremy BatesGeneral Manager, Bates Secuirty
Bill BrewerTrustee, Poole Enterprises
Jed BullardOwner, E.D. Bullard Company
Kiki CourtelisPresident, J & C Kentucky, Inc.
Michael CoxPresident, Denham-Blythe Co., Inc.
Dr. John HobbsCentral Internal Medicine
Glenn HoskinsAttorney, Webb, Hoskins, Brown & Thompson, PSC
Dave HouchinPresident, Intech Contracting, LLC
Tom JonesPresident, Taper Roller Bearings, Inc.
Dr. Michael KarpfExecutive Vice President for Health Affairs/UK HealthCare
Mike KerwinPresident, Mike Kerwin Homes
Craig KingPresident, R.J. Corman Company
Debbie LongOwner, Dudley’s on Short
Mark NabityPresident, Grayhawk, LLC
Ralph PawsatPresident, Wald, LLC
Dr. William RoodRood & Riddle Equine Hospital
Nick RowePresident, Kentucky American Water Co.
Charlie ScrogginSenior Vice President, HDR Quest Engineers, Inc.
Bill ThomasonPresident, Keeneland Association, Inc.
Dr. Russell TravisTravis Neurosurgical Consulting
Randy WalkerPresident, Randy Walker Electrical Contractors, Inc.
Greg White, DDSWhite, Greer and Maggard Orthodontists
Brian WoodFounder & CEO,BC Wood Properties, Inc.
4
Chairman, President & CEOLuther Deaton, Jr.
BOARDS OF DIRECTORS
Banking Centers
Gina EnsmingerAssistant Vice President
Angela M. FrieszAssistant Vice President
Karen Lackey Assistant Vice President
Philip RochesterAssistant Vice President
Lana AlexanderRetail Banking Officer
Jeffrey BentonRetail Banking Officer
Sharon BradleyRetail Banking Officer
Barbara JohnsonRetail Banking Officer
Pamela MatneyRetail Banking Officer
Laura M. OwensRetail Banking Officer
Ashley N. RodgersRetail Banking Officer
Alexandra E. TerryRetail Banking Officer
Client Services
Cathy K. Combs Senior Vice President
Diane Williams Client Services Officer
FINANCIAL PLANNING
FINANCIAL PLANNING
Edward BarnesExecutive Vice President & Chief Financial Officer
Robin OliverSenior Vice President
Lisa A. WilliamsonAssistant Vice President
Mark KendallFinancial Planning Officer
ENTERPRISE RISKMANAGEMENT
C. Gregory StacyExecutive Vice President
Beth LakesVice President
Funds Management
James R. NallAssistant Vice President
MARKETING Stephen C. Kelly Executive Vice President
Lesley K. CatronMarketing Officer
Correspondent Banking
Doug Flynn Correspondent Banking Officer
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 Services
Timothy R. AustinAssistant Vice President
Shawn PresnellVice President
Deposit Services
Lisa DurhamVice President
Bank Security Angela D. CampbellBSA/AML & Operations Officer
WEALTH MANAGEMENT
Trust
Barry HickeyExectuive Vice President
Business Development
Charles N. Rush, Jr.Vice President
Employee Benefits Vicky L. Foster Vice President
Sheila C. Parks Vice President
Operations Gayle DockeryAssistant Vice President
Personal Trust Kathryn Wilson GibsonSenior Vice President
Elizabeth JohnsVice President
Eloise G. Penn Vice President
Anna HovekampAssistant Vice President
Carolyn BishopTrust Officer
Investment Management
Timothy D. FyffeSenior Vice President
Thomas CorrVice President
R. Scott KingVice President
Private Banking
Gregory M. ShewmakerExecutive Vice President
Rita L. BuggVice President
Leslie FanninVice President
Alicia JordanVice President
Mark RuddellVIce President
Christopher ThomasonVice President
Matthew Frank, CFP®
Assistant Vice President
Central Insurance Services
Ross BarnettePresident
Tom FrancisVice President
Rob WesselVice President
Justin WhippleVice President
Steven P. WrightVice President
Don YadenVice President
Beverly HicksCommercial Insurance Officer
Central Investment Center, Inc.
Jeff GinnanExecutive Vice President & Senior Financial Advisor
Jeff Fields, CRPS®
Vice President & Financial Advisor
Tony BrownFinancial Advisor
Ballard “Cash” CassadyFinancial Advisor
Jim DeMossFinancial Advisor
Deborah FisherFinancial Advisor
72016 SECOND QUARTER REPORT
OFFICERS OFFICERSCentral Bancshares, Inc.
Luther Deaton, Jr. Chairman, President & CEO
Joan D. Kincaid Vice Chairman
Susan L. Simmons Vice President
Ranee LelandVice President &Corporate Secretary
C. Gregory StacyTreasurer
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, CRCMVice President & Compliance Officer
Donna J. Craven, CRCMVice President
Danny C. NolandVice President
John T. Miner, Jr.Auditing Officer
COMMERCIAL BANKING
Gregory A. Bibb Executive Vice President
Corporate Services
Karen Rowland, CTPSenior Vice President
Tracy Reid, CTPVice President
Lisa K. Vickers Vice President
Chris CampbellAssistant Vice President
Allison CarterAssistant Vice President
Matt RatliffAssistant Vice President
Credit Administration
Jason A. SmithVice President
Samuel CollinsAssistant Vice President
Adam RodgersCredit Analyst Officer
Loan Review
Marie A. YoungVice President
David ChrismanSenior Vice President
D. Keith PrestonVice President
Leigh M. CarrAssistant Vice President
LeeAnn LayneAssistant Vice President Loan Processing
Donna M. TurnerVice President
Special Assets Ellen Sharp Vice President
Steve HallVice President
Julie SzymanskiVice President
Becky MullinsSpecial Assets Officer
Commercial Lending
Mark KaufmannSenior Vice President
Mark R. Fox Vice President
David RossVice President
Jake SchirmerVice President
Shane AndersonAssistant Vice President
Stephen J. MalloryAssistant Vice President
Consumer Lending
Jerry F. Smalley Vice President
Real Estate Lending Paul R. ThornsberrySenior Vice President
Megan BarlowVice President
Paul B. DrakeVice President
Jordan OwensAssistant Vice President
Jarred W. PaullCommercial Mortgage Officer
Small Business
Ernest W. DolihiteSenior Vice President
Richard D. Hartley Vice President
Terri A. Stein Vice President
Jeff MurphyVice President
Central Bank Mortgage
Ed WorkmanSenior Vice President
Susan BradleyVice President
Tom BreathittVice President
Brad FieldsVice President
Rebecca HaddixVice President
Catherine HimesVice President
Lorraine KinleyVice President
Vina RisnerVice President
Brian W. West Vice President
Lisa Hart Assistant Vice President
Alicia EsenbockSecondary Mortgage Underwriter
HUMAN RESOURCES
Susan Simmons Executive Vice President
Amy ManningSenior Vice President
Shelia Plymale Senior Vice President
June CarpenterHuman Resources Officer
TECHNOLOGY SERVICES
Julie Bondra Executive Vice President
Anna ClaytonVice President
Kevin J. LippertVice President
E. Sean ProfittVice President
David HakeInformation Security Officer
Jason HollisInfrastucture Officer
RETAIL BANKING
David L. Moore Executive Vice President
Michael GartnerSenior Vice President
Chris McGaugheyCRA Community Development Officer
6
Jacobus M. Ockers Financial Advisor
Thomas E. Roberts, CFP®
Financial Advisor
Jennifer WilsonFinancial Advisor
Central Bank, Georgetown
Kimberly E. MarshallMarket President
Jennifer J. RobertsVice President
Patricia Voigt Vice President
Jennifer BaldwinAssistant Vice President
Mortgage Lending Ashley WeirVice President
Central Bank, Madison County
Jeff FultzMarket President
Cameron AbneySenior Vice President &Senior Market Lender
Scott JohnsonVice President
Ken RileyVice President
Mortgage Lending Donna HaneyVice President
Central Bank, Nicholasville
Alan S. VanArsdallMarket President
Cathy LoweVice President
Jill SloneAssistant Vice President
Kathy MooreRetail Banking Officer
Brandy OsborneCommercial Lending Officer
Mortgage Lending
Marcus P. HanksVice President
Monna Treadway Assistant Vice President
Central Bank, Northern Kentucky
James UebelMarket President
Brett BlackwellSenior Vice President &Senior Market Lender
Donald BenzingerVice President
Matthew E. EilersVice President
Karen J. HomanVice President
Joshua LehmanAssistant Vice President
Mortgage Lending
Dennis BarnesAssistant Vice President
Retail Banking
Troy FeddersVice President
Jeffrey WagnerVice President
Diana WebsterVice President
Private Banking
John FinleySenior Vice President
Karen HartigVice President
Larry LuebbersVice President
Central Bank, Winchester
Glenn LeveridgeMarket President
Tim M. DuncanSenior Vice President
Tammy M. CarrollVice President
Lisa T. EarlywineVice President
Erica ParksCommercial Lending Officer
Mortgage Lending
Lee ColemanAssistant Vice President
Amy TurnerAssistant Vice President
Central Bank,Jefferson County
Luther Deaton, Jr.CEO
Mark WheelerMarket President
Lisa S. Grant, CRCMVice President &Compliance Officer
Commercial Banking
Amy SullivanSenior Vice President
Joan StraferVice President
Cynthia CaldwellAssistant Vice President
Mortgage Lending
Jeanie GammonVice President
Retail Banking
David BondVice President & Retail Development Officer
Elaine FawbushAssistant Vice President
Casey SteitzRetail Banking Officer
Tanner GreenwellRetail Banking Officer
Private Banking
Robert SliderSenior Vice President
Mary LittrellVice President
Jim MorrisVice President
Wealth Management
Bill KaiserVice President
OFFICERS NOTES
92016 SECOND QUARTER REPORT8