 |
| |
  |
|
|
|
|
ONE-ON-ONE - May
'98 by Ed G. Lane Luther Deaton
His job responsibilities have not prevented Deaton from being active outside the banking world, however. He serves as a board member with organizations ranging from the Mediation Center of Kentucky and Child Development Centers of the Bluegrass to the American Heart Association and the Lexington Area Sports Authority. Deaton's personal endeavors garnered special recognition last year, when he became the second recipient of the John R. Wooden Award. Presented by the Lexington Theological Seminary, the award honors a lay person whose life exhibits commitment to and active involvement in a faith community, along with evidence of putting one's faith to work for the welfare of humankind. (The award's namesake, UCLA basketball coach emeritus John Wooden, was the first recipient.) Deaton and his wife, Jackie, are members of Hill 'N Dale Christian Church. Deaton recently met with Ed Lane, publisher of The Lane Report, to discuss his vision for his company and his community.
The service that our Central Bank team delivers is the major reason. The second is that Central Bank in locally owned; we make all our decisions in Lexington. We have a very active board; our people are involved in the community. Has the bank's management done anything new or radical to reduce overhead or operating expenses? Because of low interest rates and margins on loans, the bank has streamlined operations and lowered operating costs. In order to be competitive, we watch expenses more closely than in the past. What is your forecast for short and long term interest rates? Inflation is under control. I don't see anything in the near future that is going to change that. If anything, the rates could go down a little bit. Not very much, a quarter of a percent. What types of new clients is Central Bank seeking? Central Bank likes small businesses; they have been the foundation of this bank since Garvice Kincaid started it. We have built on that tradition over the last several years. Recently Central Bancshares opened a savings bank in Nicholasville. What are the bank's plans in this area? Central Bank is planning to go regional. Hopefully in the next five or six years we will operate savings banks in all the surrounding counties. What is your vision for Central Bank's future? Central Bank will be one of the leading financial institutions, not only in this region, but also in the state. In the next ten years, assets will grow to $1.5 billion. If Central Bank were ranked with locally-based banks, how would it compare? Central Bank is one of the largest independent banks in the state. And it is the largest locally-owned bank in Lexington. You mentioned there are no plans to sell Central Bank. Do you feel that is a long-term commitment? That is what our owners tell us. I believe them. Because of excellent profits, sustained growth, an outstanding staff and a good return on equity, I see no reason for our shareholders to sell. The bank is closely held. Who are the primary shareholders? The top shareholders are the Kincaid family trust and Garvice Kincaid's two daughters - Jane K. Johnson and Joan D. Kincaid. You had mentioned that some of the bank's stock was being made available to employees. Only when shares are offered through ESOP (Employee Stock Option Plan). Very few shares become available anymore. When traded, the bank does try to buy them. Is the failure of Kentucky Central Life Insurance Company (KCUC) basically over and done with, or can we anticipate new disclosures and revelations when several pending lawsuits reach the courtroom later this year? One of the biggest shocks of my life is when Kentucky Central went down. I remember the day it happened. My reaction was a very empty feeling. I was afraid that KCLIC's failure could hurt our bank and its standing in this community. Wayne Smith (former CEO) and I started talking about what we could do to ensure that the public did not perceive that Central Bank was in financial trouble. Governor Jones and I had a conversation that afternoon; he got the regulators to make a statement reassuring the public about Central Bank. If we had been dealing with people who did not know us and our organization, we could have been perceived incorrectly. Is it possible there could have been a "run on the bank"? Kentucky Central's failure created a very dark cloud over the bank on that day, but the reputation of the bank and its management overcame this problem. What do you perceive to be the most significant problem facing Central Kentucky? There is a lack of leadership in Lexington. More business and civic leaders need to get involved in public issues. When you look around there are very few strong voices on major issues -- other than the same ones representing special interest groups. It is time for a new generation of leadership to come forward and be recognized. How does the future of downtown Lexington appear to you? Downtown Lexington is coming back. A strong downtown sets the tone for the entire community. The new justice center will attract new workers to that complex and the law firms and service businesses that support them. The proposed Newtown Pike extension will route traffic around downtown allowing more on street parking and reducing the through traffic on Main and Vine Streets. Soon, I expect we will see some townhouses being built downtown. Art, entertainment, sports, dining and specialty shops are easy to find and to enjoy in downtown. Lexington is a great place to live, a great place to raise a family and to run a business. I expect it to be that way in the future, especially if we can deal with growth. For the most part, those problems are good ones because growth and development bring new people, ideas and a sense of energy to downtown. Do you feel Lexington's urban service area may have outlived its usefulness? I think development in Central Kentucky is now shifting to surrounding counties. Central Kentucky is a regional economy; that is the way our bank is looking at it. Central Kentucky's highway network is a key element in this growth. Most of the counties around Lexington are either growing or just about to take off. Just look at the rapid population growth in Nicholasville, Richmond, Georgetown, and Lawrenceburg. Development in Fayette County will be diminished unless the urban service area is changed. Fayette County must have growth on a "managed basis." I will be the first person to tell you I love green space. It makes Lexington very unique. We need to take a hard look at future growth. Leave the special interest groups out of the process. We must determine what is best for everybody. And what is best for Fayette County. There are numerous growth opportunities in Lexington. Are you aware that a scoping study for a south by-pass that would run from Richmond, through Nicholasville, and to Versailles was proposed? I am for a south by-pass study. Look what pressure that a by-pass would take off Man O' War, New Circle Road and interstates coming into Lexington. The study is needed. If it comes back positive, the by-pass should be constructed. How well have the Urban County Council and the mayor managed growth in Fayette County? Mayor Miller is doing a fairly good job. As in business, you might be the greatest CEO and president but if you don't have a good board of directors you are not going to prosper. Truthfully, the Urban County Council needs improvement. Until we have a good council, the mayor is going to be ineffective. Pam Miller is smart; she does a good job. Pam understands the issues, and the problems we face, and deep down she tries to do something about that. One of the ways to attract better members to the council would be to pay them more. Being a council member is basically a full-time job and yet the pay is very low. I have no problem with better compensation as long as there are more at-large council members. I would like to see everybody run at-large. Then council members would have a better and broader vision of what is best for the city. Now, it seems like the people who are making the most noise usually win. That shouldn't be. You can make all the noise you want, but if you are wrong, you are wrong. Should the Urban County Council roll back the payroll tax increase? I would love to see the payroll tax increase rolled back. But you have to look at the long-range plan. The council needs to determine a plan for the future. What are they going to do and how are they going to fund programs to benefit everyone in this city. There is a great deal of indecision regarding the future of Blue Grass Airport. How important is good air transportation to Central Kentucky? The airport is critical to economic development in Lexington and Central Kentucky. We should complete the FAA study to determine the best uses of Blue Grass Airport for the next 25 years. just what role will the airport play in Lexington's future? So far the talk has been heated on both sides of the spectrum. Let's get all the facts before there is further discussion on how many runways we need and moving the airport away from Lexington. If you move the airport away from Lexington, what happens to the revenue that the airport generates for Fayette County? What are you going to replace that with? Moving the airport would be very costly; how would you pay for that? We already have a great airport facility. How well do you think the Mayor and the council have dealt with the airport issue? The airport board has not been dealt with professionally. Take the parking garage issue. The parking structure is needed. I live out there. I jog by the airport every morning. Airplanes have never bothered me. The airport is well kept. The Mayor has always supported the parking garage. The Council should have supported the airport board instead of using bonding of the parking garage as political leverage. I think that is wrong. Mike Flack, executive director of Blue Grass Airport, is taking a new position. Will the board have a difficult time finding someone to fill this position? It will be difficult. From the outside looking in, if I were a candidate, I would have second thoughts before I would accept this position. Knowing the community is indecisive about the future of the airport could be detrimental to hiring a good person. Hopefully we can. Are you happy with Governor Patton's performance? I sure am. He makes mistakes like anybody else. But as CEO of this bank I make mistakes, too. Governor Patton probably studies and understands the issues as well as anybody. He is very smart. He forms his opinion based on facts. Lexington needs a leader with that type of intelligence. Who are some of the local leaders who have helped you during you career? W.T. Young, Ted Bassett, Lewis Owens and John Newton. Over the past 15 to 20 years, each of these local business leaders gave me pointers and suggestions. They never turned me down and are great mentors and friends. In your position at the bank, what are some of the most rewarding things you do? Seeing our people rise to the top and rise to the occasion. Our employees are challenged each day by new technology, growth, and opportunities. The other thing is giving back to our community and helping needy and older people.
Ed G. Lane is chief executive of Lane Consultants , Inc. and publisher of The Lane Report.
|
|
|
Copyright 1996-98, by Kentucky Business Online, LLC. All rights reserved. Editorial content is copyright
1998, Lane Communications Group Buzzword and the Buzzword balloon are registered trademarks of Buzzword, Inc. The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
After first joining Central Bank & Trust Co. in 1978 as an assistant
manager and teller of one of the bank branches, Luther Deaton's natural propensity in the
world of banking was quickly apparent. Before the year was over, Deaton had moved through
the positions of branch manager and assistant vice president of commercial loans before
being tapped as the bank's vice president of equine lending. Deaton continued his rise
through the company and in 1994 was selected as president and chief operating officer. Two
years later, the board of directors promoted Deaton to his current position of president
and chief executive officer.