Quarterly Statement of ConditionThird Quarter, September 30, 2010

Central Bank & Trust Co.Central Bank, FSB

Central Insurance ServicesCentral Bank of Jefferson County

Central Investment Center, Inc.Salt Lick Deposit Bank

Showing you the way.

1

The mission of Central Bancshares is to be a high-performance financial

services company that delivers superior service and value to each customer we

serve. We will emphasize customer and employee satisfaction – always mindful

that quality people will make the Central difference.

Contents

Financial Highlights........................................ 1Consolidated Balance Sheets......................... 2Consolidated Income Statements.............. 3Boards of Directors.......................................... 4Officers...................................................... 6

For additional copies or information, contact:Stephen C. Kelly

Executive Vice President, Marketing & Sales

Central Bank

300 West Vine Street

Lexington, KY 40507

(859) 253-6201

Email: skelly@centralbank.com

Member FDIC

Central Bancshares’ Mission Statement

1

Financial Highlights

Results of Operations: Net income Net income per share Cash dividends per share Book value per share at quarter end At September 30: Assets Earning assets Net loans and leases Deposits Shareholders’ equity Performance Ratios: Return on average assets Return on average shareholders’ equity Average shareholders’ equity to average assets Net charge-offs to average loans and leases Allowance for credit losses as a percentage of quarter end loans and leases Net interest margin (tax equivalent)

20072010

$

$

3,181,4439.140.00

443.15

2,175,179,9452,009,258,9841,746,052,3211,837,979,588

154,181,962

0.20%

2.75%

6.58%

0.66%

1.37%

3.91%

2008 2006

$

$

$

$

$

$

2009

$

$

1,002,0652.883.75

415.12

1,951,660,3751,807,038,5861,636,072,0331,625,759,761

144,430,143

0.07%

0.91%

6.73%

0.50%

1.28%

3.45%

8,012,86623.036.75

433.61

1,815,945,3651,686,364,8981,490,423,6411,480,552,070

150,861,785

0.59%

7.18%

7.33%

0.27%

1.35%

3.80%

8,758,56425.176.75

426.30

1,811,348,7311,657,724,2401,419,406,5981,505,235,215

148,319,464

0.66%

8.02%

7.33%

0.18%

1.21%

3.79%

12,228,74235.156.75

398.72

1,683,997,2371,547,682,9941,326,264,6041,349,065,575

138,723,403

0.99%

12.22%

7.15%

0.09%

1.31%

3.87%

2

Consolidated Balance Sheets

ASSETSCash and due from banksFederal funds sold Total cash and cash equivalentsSecuritiesLoans and leases, net of unearned incomeAllowance for credit losses Loans and leases, 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 depositsFederal funds purchased and securities sold under repurchase agreementsCustomer sweep accountsFederal 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 capital Retained earningsAccumulated other comprehensive income Total shareholders’ equity Total liabilities and shareholders’ equity

45,044,937136,500,000181,544,937

95,749,3211,770,327,480

(24,275,1591,746,052,321

46,338,8157,959,300

17,140,31980,394,932

2,175,179,945

336,046,4201,501,933,1681,837,979,588

37,375,00053,751,92439,125,17637,600,00015,166,295

2,020,997,983

3,479,2206,890,468

145,776,310(1,964,036

154,181,9622,175,179,945

September 30, 2010

$

$

$

$

)

September 30, 2009

)

36,066,60715,800,00051,866,607

127,354,3991,657,202,551

(21,130,5181,636,072,033

49,630,6017,959,300

17,634,90761,142,528

1,951,660,375

276,748,9861,349,010,7751,625,759,761

30,800,00055,382,04742,669,62237,600,00015,018,802

1,807,230,232

3,479,2206,890,468

142,263,226(8,202,771

144,430,1431,951,660,375

$

$

$

$

)

)

3

Consolidated Income Statements

(For nine months ended)

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 credit lossesNet interest income after provision for credit 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

72,978,601 1,459,260

147,02174,584,882

16,610,7013,055,684

19,666,385

54,918,49715,072,86839,845,629

8,717,1915,481,9667,180,271

369,24321,748,671

21,445,6015,559,286

12,754,42221,103,51660,862,825

731,475(2,449,968 3,181,443

9.14

September 30, 2010

$

$

$

September 30, 2009

)

67,827,093 2,420,723

83,04970,330,865

21,576,1362,801,561

24,377,697

45,953,1687,318,391

38,634,777

8,129,7216,354,0916,575,731

942,92122,002,464

21,727,5746,511,930

13,284,30320,167,70261,691,509

(1,054,268(2,056,333 1,002,065

2.88

$

$

$

))

4

Boards of Directors

Central Bancshares, Inc. andCentral Bank & Trust Co.Board of DirectorsLuther Deaton, Jr. Chairman, President & CEO Central Bancshares, Inc. andCentral Bank & Trust Co.

Michael D. Foley Partner Ray, Foley, Hensley & Company, PLLCCertified Public Accountants

Richard W. FurstDean EmeritusGatton College of Business & EconomicsUniversity of Kentucky

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

Wayne MartinPresident & General ManagerWKYT-TV

G. Michael RitchiePresident & CEOPhoto Science, Inc.

Paul E. Sullivan Partner Frost Brown Todd, LLC

Central Bank, LexingtonAdvisory Board of DirectorsAnthany BeattyUniversity of Kentucky, Campus Services Public Safety

Frank ButlerExecutive Vice President, University of Kentucky

Kurt BraunFinance Director, Southland Christian Church

Gary L. CoyleRetired, Central Bank

Kevin DoyleSecretary & Treasurer, Congleton-Hacker Co.

John DundonHead Superintendent, Lexington Christian Acadamy

Sarah HealyMcDonald’s

David R. HouchinPresident, Intech Contracting, Inc.

Don Howard, Jr.President, H & W Management

Hugh A. JamesPresident, Lexington Furniture Co.

Jay JohnsonOwner, Thermal Balance, Inc.

William LearAttorney, Stoll, Keenon, Ogdon

Everette McCorveyUniversity of Kentucky and Opera Department Chair

Sylvia Lovely

P.G. PeeplesPresident & CEO, The Urban League of Lexington-Fayette Co.

Bruce PierattPresident, Pieratt’s

Kathy RigginsPresident, Interspace Limited

Michelle RipleyPresident, Commonwealth Fund for KET

Charles R. ScrogginSenior Vice President, HDR-Quest, Inc.

Steven S.J. ShermanPartner, Sherman-Carter-Barnhart, PSC

David G. StonePresident, General Rubber & Plastics, Inc.

Greg Vance, DMDOwner, Premier Periodontics

Carol WorshamCo-Principal, Winterwood, Inc.

Central Bank, WinchesterAdvisory Board of DirectorsJames AllenFormer Clark County Judge-Executive

Danny Fitzpatrick Owner, Fitzpatrick Enterprises

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

Nancy LawwillRetired Vice President & Assistant Treasurer, Central Bank, Winchester

Glenn LeveridgePresident

Terry LittrellBuilder and Developer

Rex McCrary, DMDDentist

Jeff MonohanAssistant Vice President, The Allen Company

Ralph J. PalmerPresident, Palmer Engineering Company

Patricia M. SmithPresidentMD Consulting, Inc.

Robert Strode Retired

Mary Jane WarnerManager of Power DeliveryEast Kentucky Power Cooperative, Inc.

Central Bank, FSB NicholasvilleBoard of DirectorsSandra J. AdamsOwner, Zaxby’s

Luther Deaton, Jr. Chairman & CEO Michael D. Foley Partner, Ray, Foley, Hensley & Company, PLLC Certified Public Accountants

Joan D. KincaidVice Chairman of the BoardCentral Bancshares, Inc.

Ben A. RainwaterTutt Construction

5

Boards of Directors

Paul E. Sullivan Partner, Frost Brown Todd, LLC

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

Alan S. VanArsdallPresident

Central Bank, FSB GeorgetownAdvisory Board of DirectorsDallas BlankenshipRetired SuperintendentScott County Board of Education

Mason “Butch” GlassCommunity Volunteer

Kimberly E. MarshallPresident

Randy MasonOwner-Operator, McDonald’s

Happy OsborneHead Basketball Coach, Georgetown College

Barry PapaniaCEO, Georgetown Community Hospital

W. Thomas PratherChairman, Central Bank, GeorgetownExecutive Vice President, NewCities Foundation

Central Bank of Jefferson CountyBoard of DirectorsJonathan S. BlueChairman, Blue Equity, LLC

Ronald L. CarmicleChairman, Central Bank of Jefferson CountyPresident and Owner, River City Development

Marcia CassadyDirector, Classical Studies Institute of Louisville

Ray DauenhauerOwner, R.C. Dauenhauer Management, LLC

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

James Clay SmithPresident

William E. Summers, IVDeputy Mayor, Louisville Metro Govt.

Jude ThompsonPresident and COO, Papa John’s International, Inc.

Central Bank, Madison CountyAdvisory Board of DirectorsRobert T. BatesOwner, The Country Place

Frankie C. Blevins, Jr.Attorney, Blevins Law, LLC

Robert R. BlytheEKU ProfessorPastor, First Baptist Church

James R. CarrBuilder and Developer

Jeff FultzPresident

James Ernest HillardOwner, Middletown Industrial

Jeffrey R. SandwithPresident & Owner, Classy Chassy, LLC

Rita H. SmartOwner, The Bennett House

Central Bank, Northern Kentucky Advisory Board of DirectorsHelen CarrollManager, Community RelationsToyota Motor Manufacturing

Joseph A. Creevy, MDPartner, The Urology Group

Mark GoetzOwner, Edgewood Electric

Merwin Grayson, Jr.President

Ron HillManaging Director, TPS Solutions, LTD

Robert “Bubby” NewmanOwner, State Farm Insurance

Kim PattonPartner, GBBN Architects

Doug RidenourPresident, Federal Equipment

Ray Will, MDCardiothoracic Surgeon

John YeagerOwner, Ashley Development

Salt Lick Deposit BankBoard of DirectorsLuther Deaton, Jr.Chairman & CEO

Ernest W. DolihitePresident

Michael D. Foley Partner, Ray, Foley, Hensley & Company, PLLC Certified Public Accountants

Bradley G. FrizzellOwner, Frizzell Tax Service, Inc.

William Grimes, PACPresident & CEO, New Hope Ministries Inc.

Paula G. RichardsonPresident, Richardson, Barber & Williamson, PSC

Floyd Jack IsonVice President, Hoffman, Ison & Greene, Inc.

Michael G. TearneyKPMG Professor of Accountancy & Gatton College Associate Dean Emeritus, University of Kentucky

6

Central Bancshares, Inc.Officers Luther Deaton, Jr. Chairman, President & CEO

Joan D. Kincaid Vice Chairman

Anne B. Carter Vice President

Patricia P. Price Treasurer

Jeff D. JacobSecurity Officer

Lisa S. Grant, CRCMCompliance Officer

Ranee Leland Corporate Secretary

Central Bank, LexingtonADMINISTRATIONLuther Deaton, Jr. Chairman, President & CEO

Ranee LelandCorporate Secretary

AuditingCraig L. Daniels, CPA Senior Vice President

Lisa S. Grant, CRCMVice President & Compliance Officer Donna J. Craven, CRCMVice President

Danny C. NolandVice President

ENTERPRISE RISK MANAGEMENTGregory A. Bibb Executive Vice President

Ben WassonAssistant Vice President

Loan ReviewMarie A. YoungVice President

Danny G. AbnerVice President

Linda A. CollinsVice President

Leigh M. CarrAssistant Vice President

LeeAnn LayneLoan Review Officer

Michael WilliamsLoan Review Officer

Loan ServicesLaura L. SchweitzerSenior Vice President

Timothy R. AustinLoan Services Officer

Loan ProcessingDonna M. TurnerVice President

Special Assets Randy Shaw Senior Vice President

David Barkman Vice President

Steve HallVice President

Julie SzymanskiAssistant Vice President

COMMERCIAL BANKINGLawrence A. Hobbs Executive Vice President

Commercial LendingP. David BurkeSenior Vice President

Mark R. Fox Vice President

Thomas E. GreinkeVice President

Daniel B. MasonVice President

Stephen J. MalloryCommercial Lending Officer

Consumer Lending Jerry F. Smalley Vice President

T. J. TomlinVice President

Mortgage Lending George R. Lathram Senior Vice President

Paul B. DrakeVice President

Timothy E. SchulerVice President

Paul R. ThornsberryVice President

Central Bank Mortgage Ed WorkmanSenior Vice President

Tom BreathittVice President

Brad FieldsVice President

Catherine HimesVice President

Susan BradleyAssistant Vice President

Lorraine KinleyAssistant Vice President

Officers

7

Chris McGaugheyMortgage Lending Officer

Rebecca HaddixMortgage Officer/Underwriter

HUMAN RESOURCES Rose Douglass Executive Vice President

Shelia Plymale Vice President

Amy ManningAssistant Vice President

June CarpenterHuman Resources Officer

TECHNOLOGY SERVICESJulia Bondra Executive Vice President

Anna EliassenVice President

E. Sean ProfittVice President

Rachel A. RichardsAssistant Vice President

Brian CatronApplication Development Officer

Kevin J. LippertTechnology Services Officer

Chris SchumInformation Security Officer

RETAIL BANKINGDavid L. Moore Executive Vice President

Michael GartnerSenior Vice President

Banking CentersRichard D. Hartley Retail Development Officer

Terri A. Jones Retail Development Officer

D. Keith PrestonRetail Development Officer

David L. RansdellRetail Development Officer

Alicia F. SmithRetail Development Officer

Karen Burton Assistant Vice President

Jeffrey BentonRetail Banking Officer

Gina EnsmingerRetail Banking Officer

Ugochi E. EzeRetail Banking Officer

Angela M. FrieszRetail Banking Officer

Barbara JohnsonRetail Banking Officer

Terra LongRetail Banking Officer

Kyle NorsworthyRetail Banking Officer

Philip RochesterRetail Banking Officer

Alexandra TerryRetail Banking Officer

D. Christopher ZaumeyerRetail Banking Officer

Client ServicesCathy K. Combs Senior Vice President

FINANCIAL PLANNING AND CONTROL Patricia P. Price Executive Vice President & CFO

Edward BarnesSenior Vice President

Shawn PresnellAssistant Vice President

Matthew FrankFinancial Planning Officer

Jordan OwensFinancial Planning Officer

Lisa A. WilliamsonFinancial Planning Officer

FUNDS MANAGEMENT C. Gregory StacySenior Vice President

Jessica CombsFunds Management Officer

MARKETING Stephen C. Kelly Executive Vice President

Correspondent Banking Doug Flynn Correspondent Banking Officer

OPERATIONS AND SUPPORT Operations Anne B. Carter Executive Vice President

Karen G. Crawley Senior Vice President

Robin Michul Senior Vice President

Harvey Sword Assistant Vice President

Internet BankingBrenda P. OaksInternet Banking Officer

Officers

8

Card ServicesBeverly Smalley Assistant Vice President

Corporate ServicesKaren RowlandSenior Vice President &Corporate Treasury Manager

Maggie MayAssistant Vice President

Lisa K. Vickers Assistant Vice President

Chris CampbellCorporate Services Officer

Deposit ServicesAlisa DurhamAssistant Vice President

Bank Security Jeff D. Jacob Senior Vice PresidentSecurity, BSA & AML Officer

WEALTH MANAGEMENTTrustBarry HickeySenior Vice President &Trust Manager

Business DevelopmentCharles N. Rush, Jr.Vice President

Employee Benefits Douglas E. Fritz Vice President

Sheila C. ParksVice President

David L. Turner Vice President

Operations Marcia E. Wade Vice President

Personal Trust Kathryn Wilson GibsonVice President

Eloise G. Penn Vice President

Carolyn BishopTrust Officer

Investment Management Timothy D. FyffeSenior Vice President &Senior Portfolio Manager

Thomas CorrVice President & Senior Portfolio Manager

Private BankingGregory M. ShewmakerSenior Vice President &Private Banking Manager

Rita L. BuggVice President

Leslie FanninVice President

Alicia JordanVice President

Christopher ThomasonVice President

Lisa Will, CFP®Vice President

Central Insurance ServicesRoss BarnettePresident

Tom FrancisVice President

Robert WesselVice President

Steven P. WrightVice President

Officers

Beverly HicksCommercial Insurance Officer

Don YadenProperty and Casualty Officer

Central Investment Center, Inc. Jeff GinnanExecutive Vice President & Senior Financial Advisor

Peter McFarlandSenior Vice President &Financial Advisor

Don GraeterVice President & Financial Advisor

Drew GraeterVice President &Financial Advisor

Jim DeMossFinancial Advisor

Jeff Fields, CRPS©Financial Advisor

Deborah FisherFinancial Advisor

Jacobus M. Ockers Financial Advisor

Thomas E. Roberts, CFP®Financial Advisor

Spencer GraeterInvestment Officer

Central Bank, Madison CountyJeff FultzPresident

Cameron AbneySenior Vice President

Ken RileyVice President

9

Beverly HicksCommercial Insurance Officer

Don YadenProperty and Casualty Officer

Central Investment Center, Inc. Jeff GinnanExecutive Vice President & Senior Financial Advisor

Peter McFarlandSenior Vice President &Financial Advisor

Don GraeterVice President & Financial Advisor

Drew GraeterVice President &Financial Advisor

Jim DeMossFinancial Advisor

Jeff Fields, CRPS©Financial Advisor

Deborah FisherFinancial Advisor

Jacobus M. Ockers Financial Advisor

Thomas E. Roberts, CFP®Financial Advisor

Spencer GraeterInvestment Officer

Central Bank, Madison CountyJeff FultzPresident

Cameron AbneySenior Vice President

Ken RileyVice President

Officers

Donna HaneyAssistant Vice President

Scott JohnsonAssistant Vice President

Juanita MillerAssistant Vice President

Central Bank, WinchesterGlenn LeveridgePresident

Tom PorterExecutive Vice President

Tim M. DuncanSenior Vice President

Lisa T. EarlywineVice President

Lee ColemanAssistant Vice President

Tammy M. CarrollRetail Banking Officer

Central Bank, Northern KentuckyMerwin Grayson, Jr.President

Matthew E. EilersVice President

Karen J. HomanVice President

Kevin McCulloughVice President

Joseph NienaberVice President

Jim WillmanVice President

Central Bank, NicholasvilleAlan S. VanArsdallPresident

David ChrismanSenior Vice President

Jeff D. Jacob Senior Vice PresidentSecurity, BSA & AML Officer

Lisa S. Grant, CRCMVice PresidentCompliance Officer

Cathy LoweVice President

Marcus P. HanksAssistant Vice President

Jill SloneAssistant Vice President

Central Bank, GeorgetownKimberly E. MarshallPresident

Brian EnglandVice President

Jennifer J. RobertsVice President

Patricia VoigtVice President

Ashley WeirMortgage Lending Officer

Central Bank, Jefferson CountyJames Clay SmithPresident

Jeff D. Jacob Senior Vice PresidentSecurity, BSA & AML Officer

Lisa S. Grant, CRCMVice President Compliance Officer

William E. Summers, VVice President Business Development Officer

Commercial LendingChristopher BellVice President & Commercial Lending Manager

Commercial Mortgage LendingAmy SullivanVice President & Commercial Mortgage Manager

Mortgage LendingJeanie GammonMortgage Lending Officer

Leslie SampsonMortgage Lending Officer

Human ResourcesKaren Butler Vice President

Retail BankingElaine FawbushAssistant Vice President

Casey SteitzRetail Banking Officer

Felicia M. WatkinsRetail Banking Officer

Corporate ServicesScott NortonCorporate Services Officer

Private BankingRobert SliderSenior Vice President

Mary LittrellVice President

Wealth Management Bill KaiserTrust Officer

300 West Vine StreetLexington, Kentucky 40507

www.centralbank.com859-253-6222800-637-6884

Salt Lick Deposit BankErnest W. DolihitePresident

Jeff D. Jacob Senior Vice PresidentSecurity, BSA & AML Officer

Lisa S. Grant, CRCMVice President Compliance Officer

Vickie EvansAssistant Vice President

Vicki RomeroAssistant Vice President

Jacky WatsonAssistant Vice President

Cheryl ConyersConsumer Lending Officer