Exhibit 99.1
CLASSIC BANKSHARES
Delivering in 2004
WELCOME SHAREHOLDERS
ANNUAL MEETING
AUGUST 26, 2004
FORWARD LOOKING STATEMENTS
When used in this report, the words or phrases "will likely result", "are
expected to", "will continue", "is anticipated", "estimate", "project" or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties, changes in economic
conditions in the Company's market area, changes in real estate values in the
Company's market area, regulatory policies, interest rates, demand for loans in
the Company's market area and competition that could cause actual results to
differ materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.
The Company does not undertake--and specifically declines any obligation--to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.
Chairman of the Board
C. Cyrus Reynolds
President and Chief Executive Officer
David B. Barbour
INTRODUCTIONS
Robert S. Curtis Kimberly McCann, Partner,
President, Classic Bank VanAntwerp, Monge, Jones and Edwards,
General Counsel
Lisah M. Frazier Kip A. Weissman, Partner,
Chief Operating Luse Gorman Pomerenk & Schick, P.C.,
and Chief Financial Officer Special Counsel
Dena Newsom Gary L. Stewart, Partner,
Secretary to the Board of Directors Crowe Chizek and Company, LLC,
Independent Accountants
Warren Watts Robert L. Bayes
Executive Vice President Executive Vice President
and Senior Lending Officer and Paintsville Area Market President
CLASSIC BANCSHARES, INC.
BOARD OF DIRECTORS
C. CYRUS REYNOLDS, Chairman
E.B. GEVEDON, JR., Vice Chairman
DAVID A.LANG
ROBERT B. KEIFER, JR.
ROBERT A. MOYER, JR.
JOHN W. CLARK
JEFFREY P. LOPEZ, M.D.
STEVEN C. MILLESON
DAVID B. BARBOUR
LISAH M. FRAZIER
CLASSIC BANK
BOARD OF DIRECTORS
DAVID B. BARBOUR, Chairman
ROBERT S. CURTIS
RICHARD C. LAYMAN
DARRELL HANEY
DOUG MOORE
WM. CARSON ELSWICK
JACK R. PATTERSON
BRENT E. CLARK
DEWEY L. BOCOOK, JR.
EDWARD R. RAMBACHER
J. R. MCKENZIE
CLASSIC BANK
PAINTSVILLE ADVISORY BOARD
LINDSEY ABLE
WADE H. MAY
N. ROGER JURICH, M.D.
DEBORAH TRIMBLE
PAUL W. WILLIAMS
CHAD PERRY
BUSINESS MATTERS TO BE CONSIDERED
ELECTION OF DIRECTORS
C. Cyrus Reynolds Term Expiring 2007
David B. Barbour Term Expiring 2007
Jeffrey P. Lopez Term Expiring 2007
RATIFICATION OF INDEPENDENT AUDITORS
Crowe Chizek and Company LLC
PEER COMPARISON
Kentucky Publicly Traded Companies (Data as of June 30, 2004)
EPS ROAA % ROAE % NIM EFF
Bank Holding Company Assets $ % %
Classic Bancshares..................... 341,430 2.43 1.20 11.33 4.52 62.38
Bank of Kentucky Financial Co.......... 819,209 1.57 1.19 14.46 3.82 54.98
Community Trust Bancorp................ 2,460,433 2.13 1.17 13.35 3.86 57.51
Farmers Capital Bank Corp.............. 1,307,722 1.91 1.02 10.25 3.61 69.85
Kentucky Bancshares.................... 520,658 1.49 0.93 9.02 3.74 65.09
Republic Bancorp....................... 2,203,714 1.60 1.45 17.20 4.48 56.71
S. Y. Bancorp.......................... 1,134,763 1.30 1.64 18.48 4.25 57.61
State median (13 companies)............ 520,658 1.60 1.02 11.33 3.74 63.00
National median........................ 420,939 1.33 1.01 11.40 3.98 65.09
PEER COMPARISON
Kentucky Publicly Traded Companies (Data as of June 30, 2004)
Total Return
Bank Holding Company Assets YTD 1 YR 3 YR
Classic Bancshares..................... 341,430 20.78 44.37 215.79
Bank of Kentucky Financial Co.......... 819,209 (3.27) (4.56) 42.79
Community Trust Bancorp................ 2,460,433 2.63 32.23 69.39
Farmers Capital Bank Corp.............. 1,307,722 7.17 16.30 (1.64)
Kentucky Bancshares.................... 520,658 (1.41) 16.51 42.29
Republic Bancorp....................... 2,203,714 9.31 51.39 73.44
S. Y. Bancorp.......................... 1,134,763 14.81 34.52 43.96
State median (13 companies)............ 520,658 7.17 16.30 43.98
National median........................ 420,939 4.15 22.98 73.21
PEER COMPARISON
Kentucky Publicly Traded Companies (Data as of June 30, 2004)
6/30/04 Price To
Bank Holding Company Assets LTM EPS BOOK % TG BOOK
(X)
Classic Bancshares..................... 341,430 16.46 159.54 212.52
Bank of Kentucky Financial Co.......... 819,209 18.63 255.72 318.45
Community Trust Bancorp................ 2,460,433 14.32 181.44 252.86
Farmers Capital Bank Corp.............. 1,307,722 18.72 186.98 186.98
Kentucky Bancshares.................... 520,658 22.15 196.55 258.34
Republic Bancorp....................... 2,203,714 12.62 200.70 200.70
S. Y. Bancorp.......................... 1,134,763 18.01 302.06 304.01
State median (13 companies)............ 520,658 17.20 170.11 186.98
National median........................ 420,939 17.70 183.98 202.41
President, Classic Bank
Robert S. Curtis
Deposit Market Share
Huntington-Ashland-Ironton MSA
Boyd, Greenup, Carter in Kentucky
Lawrence in Ohio
Cabell, Wayne in West Virginia
Population 300,000+
Bank Deposit Rank #135
MSA Rank #122
MSA Market Share
2002=3.84% (11th) 2003=4.41% (7th)
No Locations in Cabell or Wayne, WV
Largest Market Share is 11%
Johnson County, KY Market
Market Share, Rank 2nd
2000=20.79% 2003=28.47%
Lawrence County, OH Market
Market Share-11% Rank 5th
Ironton Park Avenue Location
(Picture omitted)
New Paintsville Location
(Picture omitted)
RECENT EVENTS
o Remodeling of Proctorville Office
o Hiring of Ron McCloud
o Purchase of property in Ironton for future new office
Chief Operating and Chief Executive Officer
Lisah M. Frazier
Total Assets at March 31, 2004
2000 $175,254
2001 $187,860
2002 $215,447
2003 $249,881
2004 $341,765
Total Loans, Net at March 31, 2004
2000 $127,808
2001 $138,862
2002 $160,316
2003 $187,175
2004 $257,455
Total Deposits at March 31, 2004
2000 $134,897
2001 $145,430
2002 $158,874
2003 $190,156
2004 $260,241
Net Interest Margin for the year ended March 31, 2004
2000 4.3%
2001 4.0%
2002 4.4%
2003 4.5%
2004 4.3%
Non-Interest Income Margin for the year ended March 31, 2004
2000 $895
2001 $1,085
2002 $1,454
2003 $1,676
2004 $2,136
Efficiency
2000 77.2%
2001 77.9%
2002 63.2%
2003 59.2%
2004 62.2%
Net Income for the year ended March 31, 2004
2000 $1,070
2001 $1,048
2002 $2,200
2003 $2,921
2004 $3,625
Diluted Earnings Per Share for the year ended March 31, 2004
2000 $5.84
2001 $0.95
2002 $1.77
2003 $2.32
2004 $2.43
Return on Average Assets for the year ended March 31, 2004
2000 0.6%
2001 0.6%
2002 1.1%
2003 1.3%
2004 1.2%
Return on Average Equity for the year ended March 31, 2004
2000 5.5%
2001 5.3%
2002 10.3%
2003 12.2%
2004 11.4%
Quarterly Results
June 30, March 31,
2004 2004
(Dollars in thousands)
Total Assets........................... 335,975 341,765
Total Loans............................ 255,961 257,455
Total Deposits......................... 258,183 260,241
For the Three Months
Ended June 30,
2004 2003
Net income............................. $1,052 $745
Diluted earnings per share............. .68 .57
Return of average assets............... 1.3% 1.2%
Return on average equity............... 12.1 11.1
Net interest margin.................... 4.3 4.5
Efficiency............................. 55.5 61.4
Stock Performance
(Graph omitted)
Special Thanks to our Employees
...your hard work
contributes to the
success of your
Company.
Delivering in 2004
Thank you
Please enjoy some refreshments and help yourself to a gift.