EX-99 2 form8k053ex99.txt FINANCIAL STATEMENTS Exhibit 99.1 November 4, 2005 Quarterly Report Third Quarter 2005 The earnings per share, on a diluted basis, for the nine months ended September 30, 2005 were up 6.7% over the nine months ended September 30, 2004. Earnings per share, on a diluted basis, for the third quarter were 54 cents per share compared to 57 cents last year. Earnings were $4.3 million for the year, compared to $4.2 million for the nine months ended September 30, 2004. Assets were up 9.1% over last year. Loans now exceed $359 million and were up slightly over 2% on a year to date basis when compared to 2004. Deposits were up 13.5%, and with that increase in deposits were have experienced a rapid increase in short term rates which, coupled together, have caused up to experience a compression of our margins. Recently we added Ron Durham as our new investment broker. We look forward to his contribution as he has had many years in the financial services industry, which we believe will add to our Wealth Management business. Additionally, we have added three new Bourbon County regional board members: Allyson Eads, a successful local business woman, whose family runs a local hardware and building supply store; Shackelford Parrish, who is a principal in the Clay Ward Agency; and Proctor Blair, who is a principal in the accounting firm of Ludwig, Blair and Bush. We believe that with the addition of these regional directors, we will be able to continue our long-standing success in Bourbon County. Customers accepting our tobacco lump sum payout offer have resulted in approximately $10 million in tobacco contract assignments to Kentucky Bank. These assignments will result in an income stream to the bank beginning in January 2006. Louis Prichard President, CEO UNAUDITED
CONSOLIDATED BALANCE SHEET Percentage 9/30/2005 9/30/2004 Change Assets Cash & Due From Banks $ 13,201,776 $ 9,444,099 39.7% Securities 133,868,626 118,194,820 13.3 Loans Held For Sale 214,414 11,848 n/m Loans 359,523,684 351,501,657 2.3 Reserve for Loan Losses 4,509,599 4,261,123 5.8 Net Loans 355,014,085 347,240,534 2.2 Federal Funds Sold 19,915,850 7,000 n/m Other Assets 31,733,280 32,634,354 -2.8 Total Assets $ 553,948,031 $ 507,532,655 9.1% Liabilities & Stockholders' Equity Deposits Demand $ 74,593,351 $ 65,742,450 13.5% Savings & Interest Checking 155,450,429 121,745,106 27.7 Certificates of Deposit 184,768,595 178,021,222 3.8 Total Deposits 414,812,375 365,508,778 13.5 Repurchase Agreements 14,911,455 19,142,978 -22.1 Other Borrowed Funds 75,217,275 75,182,690 0.0 Other Liabilities 2,769,923 3,325,831 -16.7 Total Liabilities 507,711,028 463,160,277 9.6 Stockholders' Equity 46,237,003 44,372,378 4.2 Total Liabilities & Stockholders' Equity $ 553,948,031 $507,532,655 9.1%
CONSOLIDATED INCOME STATEMENT Nine Months Ending Three Months Ending Percentage Percentage 9/30/2005 9/30/2004 Change 9/30/2005 9/30/2004 Change Interest Income $ 21,073,699 $ 19,235,472 9.6% $ 7,320,613 $ 6,505,838 12.5% Interest Expense 8,221,848 6,645,498 23.7 3,075,087 2,253,907 36.4 Net Interest Income 12,851,851 12,589,974 2.1 4,245,526 4,251,931 -0.2 Loan Loss Provision 583,100 620,000 -6.0 166,600 170,000 -2.0 Net Interest Income After Provision 12,268,751 11,969,974 2.5 4,078,926 4,081,931 -0.1 Other Income 5,107,459 5,120,511 -0.3 1,719,417 1,813,605 -5.2 Other Expenses 11,601,387 11,287,667 2.8 3,827,963 3,661,560 4.5 Income Before Taxes 5,774,823 5,802,818 -0.5 1,970,380 2,233,976 -11.8 Income Taxes 1,495,818 1,634,607 -8.5 540,576 654,509 -17.4 Net Income 4,279,005 4,168,211 2.7 1,429,804 1,579,467 -9.5 Net Change in Unrealized Gain (loss) on Securities (802,862) (745,011) 7.8 (603,586) 1,734,946 -134.8 Comprehensive Income $ 3,476,143 $ 3,423,200 1.5% $ 826,218 $ 3,314,413 -75.1% Selected Ratios Return on Average Assets 1.08% 1.08% 1.05% 1.27% Return on Average Equity 12.5 12.0 12.3 14.1 Earnings Per Share $ 1.60 $ 1.50 $ 0.54 $ 0.58 Earnings Per Share - assuming dilution 1.59 1.49 0.54 0.57 Cash Dividends Per Share 0.69 0.63 0.23 0.21 Book Value Per Share 17.31 16.56 Market Price High Low Close Third Quarter '05 $30.50 $29.50 $30.50 Second Quarter '05 $30.50 $28.05 $29.75