CONNECTING WITH OUR COMMUNITIES. 2020 SECOND QUARTER REPORT Central Bank & Trust Co. Central Insurance Services Central Investment Center, Inc. HELPING TO KEEP OUR COMMUNITIES STRONG. 74 Y E ARS OF SERVING KENTUCKY 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. MISSION STATEMENT CONTENTS The mission of Central Bancshares is to become Financial Highlights 1 Consolidated Balance Sheets 2 Kentucky’s leading, high-performing, community Consolidated Statements of Income 3 banking company by empowering our staff to deliver Boards of Directors 4 consistently superior service and value to our customers, Officers 6 shareholders and communities. We will be successful because Central Bankers are our greatest resource and our most sustainable advantage. For additional copies or information: MARKETING CENTRAL BANK 300 West Vine Street Lexington, KY 40507 FINANCIAL HIGHLIGHTS For six months ended June 30 (dollars in thousands, except share data) 2020 2019 2018 2017 2016 RESULTS OF OPERATIONS: Net income $ 10,150 $ 16,516 $ 13,639 $ 9,115 $ 9,159 Net income per share 0.29 0.47 0.39 0.26 0.26 Cash dividends per share 0.00 0.00 0.00 0.00 0.00 Book value per share at quarter end 9.16 8.55 7.72 7.10 6.64 AT JUNE 30: Assets $ 3,147,408 $ 2,675,493 $ 2,510,926 $ 2,315,608 $ 2,254,474 Earning assets 3,034,433 2,575,699 2,396,639 2,185,381 2,119,266 Net loans 2,359,550 2,112,764 2,018,027 1,851,995 1,685,733 Deposits 2,537,665 2,141,569 2,052,387 1,939,642 1,880,799 Shareholders’ equity 318,690 297,325 268,444 247,045 230,888 PERFORMANCE RATIOS: CONTENTS Return on average assets 0.70% 1.29% 1.12% 0.80% 0.84% Financial Highlights 1 Return on average shareholders’ equity 6.52% 11.58% 10.50% 7.58% 8.13% Consolidated Balance Sheets 2 Average tangible equity Consolidated Statements of Income 3 to average tangible assets 9.48% 10.66% 10.12% 10.02% 9.71% Net charge-offs to average loans 0.05% 0.05% 0.02% 0.04% 0.05% Boards of Directors 4 Allowance for loan losses as a Officers 6 percentage of quarter end loans 0.90% 1.00% 1.04% 1.16% 1.26% Net interest margin (tax equivalent) 3.58% 4.10% 4.02% 3.94% 3.75% 2020 SECOND QUARTER REPORT 1 CONSOLIDATED BALANCE SHEETS June 30 June 30 (in thousands, except share data) 2020 2019 ASSETS Cash and due from financial institutions $ 56,165 $ 50,761 Interest bearing deposits with other financial institutions 374,100 175,400 Total cash and cash equivalents 430,265 226,161 Debt securities 272,659 259,537 Loans, net of unearned income 2,380,923 2,134,011 Allowance for loan losses (21,373) (21,247 ) Loans, net 2,359,550 2,112,764 Premises and equipment, net 26,867 29,639 Federal Home Loan Bank stock 6,751 6,751 Intangible assets 14,313 14,313 Prepaid expenses and other assets 37,003 26,328 Total assets $ 3,147,408 $ 2,675,493 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest bearing $ 1,007,768 $ 699,752 Interest bearing 1,529,887 1,441,817 Total deposits 2,537,655 2,141,569 Repurchase agreements 183,949 145,144 Federal funds purchased 500 500 Federal Home Loan Bank advances 55,317 50,412 Subordinated debentures 15,000 15,000 Other liabilities 36,297 25,543 Total liabilities 2,828,718 2,378,168 SHAREHOLDERS’ EQUITY Common stock (voting), $10 par value; 350,000 shares authorized; 347,922 shares issued and outstanding 3,479 3,479 Common stock (non-voting), no par value; 34,650,000 shares authorized; 34,444,278 shares issued and outstanding - - Additional paid-in capital 6,890 6,890 Retained earnings 316,829 293,490 Unearned Employee Stock Ownership Plan shares (662) - Accumulated other comprehensive income (loss) (7,846) (6,534) Total shareholders’ equity 318,690 297,325 2 Total liabilities and shareholders’ equity $ 3,147,408 $ 2,675,493 For six months ended CONSOLIDATED STATEMENTS OF INCOME June 30 June 30 (in thousands, except share data) 2020 2019 INTEREST INCOME Interest and fees on loans $ 50,614 $ 53,216 Interest on debt securities 2,596 3,437 Interest on deposits with other financial institutions 1,104 1,683 54,314 58,336 INTEREST EXPENSE Interest on deposits 3,701 7,115 Interest on borrowed funds 859 1,134 4,560 8,249 Net interest income 49,754 50,087 Provision for loan losses 3,327 2,061 Net interest income after provision for loan losses 46,427 48,026 OTHER INCOME Service charges on deposit accounts 2 ,981 3,551 Service charges on loans 5,561 4,816 Wealth management income 7, 479 7,367 Other income 3,516 3,746 19,537 19,480 OTHER EXPENSES Salaries 21,876 20,404 Benefits 7, 073 5,515 Occupancy and equipment 10,685 9,785 Other non-interest expenses 15,299 14,279 54,933 49,983 Income before provision for income taxes 11,031 17, 523 Provision for income taxes 8 81 1,007 Net income $ 10,150 $ 16,516 Basic earnings per share $ 0.29 $ 0.47 2020 SECOND QUARTER REPORT 3 BOARDS OF DIRECTORS Central Bancshares, Advisory Boards of Central Bank, Lexington John Irvin, Jr. Carol Worsham Inc. and Central Bank Directors Advisory Board of Attorney, Kinkead & Stilz, President, Winterwood, & Trust Co. Board of Directors PLLC Inc. Directors Central Bank, Georgetown Dennis Anderson Bill Justice Central Bank, Louisville Luther Deaton, Jr. Advisory Board of President, Anderson President, Justice Real Advisory Board of Chairman, President & Directors Communities Estate Directors CEO, Central Bancshares, Inc. and Central Bank & Dallas Blankenship John Atchison Louis Mulloy Claire Alagia Trust Co. Retired Superintendent, Co-owner, Atchison Heller LTM Associates, LLC General Manager, Scott County Board of Construction Wakefield Reutlinger Joan D. Kincaid Education Deborah Spike-Pierce, Realtors Vice Chairman of Rick Avare DVM the Board, Central Mason “Butch” Glass MAP Entities President & CEO, Rood & Ronald L. Carmicle Bancshares, Inc. and Community Volunteer Riddle Equine Hospital Owner, PLC Management Central Bank & Trust Co. Ray Ball William C. Haugh Owner, Ball Homes Bill Quenomoen Marcia Cassady Ulysses Lee “Junior” CEO, Georgetown CEO, Denham-Blythe Director, Capital Link Luther Deaton, Jr. Bridgeman Community Hospital William Brewer Company Consultants Chairman, President & CEO President & CEO, Dink, Inc. Bridgeman Foods Inc. George H. Lusby Nick Rowe William “Billy” K. Doelker Retired Scott County Jed Bullard President, Kentucky Owner, Key Homes, LLC Michael D. Foley Judge Executive Owner, E.D. Bullard American Water Co. Retired Partner Company Michael D. Foley RFH, PLLC Certified Public Kimberly E. Marshall Adolph Rupp III Retired Partner Accountants Market President Lucas Campbell Rupp & Associates, Inc. RFH, PLLC Certified Public Gorman Company Accountants Wayne M. Martin Randy Mason Kenny Schomp VP of Development, Owner-Operator, Kevin Doyle President & Owner, William P. Malone Retail Division, McDonald’s CFO, Congleton Hacker Lexington Truck Sales, Inc. Retired, Deming, Malone, Booth Energy Company Livesay & Ostroff W. Thomas Prather Nick Strong Nick Nicholson Chairman, Central Bank, William Farish, Jr. President, Old Colony William E. Summers IV Retired, Keeneland Georgetown & President, Lane’s End Farm Insurance Retired, Deputy Mayor, Association, Inc. Mayor of Georgetown Louisville Metro Crinda Francke Bill Thomason Government G. Michael Ritchie President, ExecuTrain of President, Keeneland Owner, MND Holdings, Kentucky Association Jude Thompson LLC CEO, Delta Dental Don Howard, Jr. Dr. Lee Todd Paul E. Sullivan President, H&W Retired President, Mark Wheeler Partner, Frost Brown Todd, Management University of Kentucky Market President LLC Lawrence Weathers Chief of Police, Lexington 4 BOARDS OF DIRECTORS Central Bank, Madison County Michael D. Foley Thomas J. Munninghoff Patricia M. Smith Advisory Board of Directors Retired Partner President, Munninghoff, Lange President, MD Consulting, Inc. RFH, PLLC Certified Public & Co. Dianna Ackerman Accountants Robert Strode Broker/Owner, ERA Professional Greg Schrand Retired Hometown Services Ben A. Rainwater President, GSE, Inc. Tutt, Inc. Mary Jane Warner Robert R. Blythe Gregory Shumate Manager of Power Delivery, East Mayor of Richmond Paul E. Sullivan Member, Frost Brown Todd, LLC Kentucky Power Cooperative, Inc. Pastor, First Baptist Church Partner, Frost Brown Todd, LLC James Uebel James R. Carr Benjamin G. Taylor Market President Builder and Developer Taylor Made Farm & Sales Agency, Inc. Paul Verst Shannon Combs President & CEO, Verst Group Partner, Combs, Parsons and Alan S. VanArsdall Logistics, Inc., and Zenith Logistics Collins Funeral Home Market President John Yeager Jeff Fultz Central Bank, Northern Owner, Ashley Development Market President Kentucky Advisory Board of Directors Central Bank, Winchester Greg Gerard Advisory Board of Directors President, Baptist Health Mark Ayer Richmond Managing Member Jeff Fultz Reading Investments, LLC Market President James Ernest Hillard Owner, Middletown Industrial Adam Bortz Gerald F. (Kelly) Healy III CEO, Towne Properties Director of Operations Mike Rice McDonald’s Owner, Cars of Kentucky, Inc. Tonya Burns-Gerakos Tonya Burns Law Glenn D. Leveridge Rita H. Smart Chairman, Central Bank Owner, The Bennett House Chris Carle Winchester Senior Vice President & COO, St. Central Bank, Nicholasville Elizabeth Healthcare, Florence Rex McCrary, D.M.D. Advisory Board of Directors Dentist Wayne Carlisle Joan D. Kincaid President & CEO Jeff Monohan Vice Chairman of the Board, Carlisle Enterprises President Central Bancshares, Inc.