March 31, 2007
Central Bancshares' Reports First Quarter Performance
Operating Environment and Investments for the Future Slow Earnings
Lexington, KY. – Chairman, President & CEO Luther Deaton, Jr. reported Central Bancshares' assets were $1.776 billion for the quarter ending March 31, 2007. This compared to $1.672 billion on March 31, 2006, up 6.3%. Gross loans and leases were $1.416 billion, rising 10.8% and deposits climbed to $1.490 billion, an increase of 7.8%. Shareholders' equity was $144 million, an increase of 9.4% from March 31, 2006.
Central Bancshares' earnings for the three months ended March 31, 2007, were $2,928,471 or $8.42 per share. This compared to $3,781,927 or $10.87 per share for three months ended March 31, 2006.
Commenting on performance, Deaton said, "Central Bancshares is off to a good start in 2007, despite a challenging operating environment. We anticipated that our earnings would decline in the short-term because of the challenging rates climate and our continued investment in the infrastructure necessary to deliver an un-matched customer experience. The costs associated with expanding into new markets, emerging technology and upgrading operating systems must be made now to enable future growth. Our company is very fortunate to have a board of directors that is focused on the long-term goals of the company, even if earnings are impacted in the short-term.”
At a recent advisory board meeting, Deaton talked about the some of the encouraging signs that point toward the company being poised for continued growth and success. He noted, “We are seeing steady improvement in the number of services used by our customers, and referrals for all types of services continue to grow resulting in increases in non-interest income. Furthermore, I am continually impressed by the wealth of talent and capabilities our employees demonstrate on a daily basis. I am confident that we have the right people in place to deliver expert advice and outstanding service that will result in success for our customers and, ultimately, for our company for a long time to come.
About Central Bank & Trust Co.
Central Bank & Trust Co. is a wholly owned subsidiary of Central Bancshares, Inc. Central Bancshares, Inc., located in Lexington, KY, is one of the largest financial institutions in the state of Kentucky. The Company offers the personal service of a community bank combined with the broad range of financial products and expert advice you might only expect from a regional bank. With more than 100,000 customers, Central Bancshares, Inc. serves individual consumers and small to middle market business with services that include full-service banking, investments, mortgages, insurance and wealth management. The Company offers convenience with its 27 banking offices and 30 ATMs in Boone, Clark, Fayette, Jefferson, Jessamine, Madison, Scott and Bath counties, combined with providing customers 24/7 access to their accounts through internet banking (CentralNET) and telephone banking (Central Connection). Central Bancshares is the holding company of Central Bank & Trust Co., Central Bank, FSB, Central Bank of Jefferson County, Salt Lick Deposit Bank, Central Bank Insurance Agency Inc. and Central Investment Center, Inc. As of December 31, 2006, Central Bancshares had a total of $1.804 billion in assets. Central Bank was recently recognized as one of the Best Places to Work in Kentucky for the second year in a row (2006 & 2007).
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