8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


_________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): July 7, 2006



                       KENTUCKY BANCSHARES, INC.
          (Exact Name of Registrant as specified in Charter)


   Kentucky                   33-96358              61-0993464
 (State or other            (Commission            (IRS Employer
  jurisdiction of           File Number)        Identification No.)
  incorporation)


P.O. Box 157, Paris, Kentucky                          40362-0157
(Address of principal executive offices)               (Zip code)


(859)987-1795
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

?  Written communications pursuant to Rule 425 under the Securities Act
(17CFR230.425)

?  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

?  Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

?  Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
INFORMATION TO BE INCLUDED IN THE REPORT

  Item 2.02. Results of Operations and Financial Condition

      On July 7, 2006 the Registrant issued a press release announcing
its earnings for the sedond quarter of 2006.  A copy of this press
release is attached as Exhibit 99.1.

The information in this Form 8-K and Exhibit 99.1 attached hereto
shall not be deemed filed for purposes of Section 18 of the Securities
Exchange Act of 1934, nor shall it be deemed incorporated by reference
in any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference.

  Item 9.01.  Financial Statements and Exhibits

Exhibit 99.1 - Press release dated July 7, 2006, announcing
earnings for the second quarter of 2006.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

KENTUCKY BANCSHARES, INC.



Date: July 7, 2006                  By      /s/ Gregory J. Dawson___
         Gregory J. Dawson
         Chief Financial Officer

EX-99

Exhibit 99.1


July 7, 2006

                           Press Release


Kentucky Bancshares Inc, parent company of Kentucky Bank, reported a
healthy 13% increase in earnings for the second quarter of 2006.  The
company earned $1,716,000 for the quarter ended June 30, compared to
$1,515,000 last year.  Fully diluted earnings per share for the same
period rose 14%, from 56 cents to 64 cents.

Year to date earnings were $3,009,000, or $1.12 per share assuming
dilution.  For the same period last year earnings were $2,849,000, or
$1.05 per share assuming dilution.

In February the company announced an agreement to acquire Peoples Bank
in Morehead and Sandy Hook. The transaction is expected to close today.

Kentucky Bank ranks 10th in size among the 211 banks in the state.
Kentucky Bank is headquartered in Paris and also has offices in
Cynthiana, Georgetown, Nicholasville, North Middletown, Versailles,
Wilmore and Winchester.