0001000232-11-000013.txt : 20110727 0001000232-11-000013.hdr.sgml : 20110727 20110727150033 ACCESSION NUMBER: 0001000232-11-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110727 DATE AS OF CHANGE: 20110727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENTUCKY BANCSHARES INC /KY/ CENTRAL INDEX KEY: 0001000232 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 610993464 STATE OF INCORPORATION: KY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-52598 FILM NUMBER: 11989912 BUSINESS ADDRESS: STREET 1: 4TH & MAIN ST STREET 2: P O BOX 157 CITY: PARIS STATE: KY ZIP: 40362-0157 BUSINESS PHONE: 859-987-1795 MAIL ADDRESS: STREET 1: 4TH & MAIN ST STREET 2: PO BOX 157 CITY: PARIS STATE: KY ZIP: 40362-0157 FORMER COMPANY: FORMER CONFORMED NAME: BOURBON BANCSHARES INC /KY/ DATE OF NAME CHANGE: 19950907 8-K 1 form8k112financials.txt FORM 8K 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 27, 2011 KENTUCKY BANCSHARES, INC. (Exact Name of Registrant as specified in Charter) Kentucky 000-52598 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 The Registrant expects to mail to its shareholders the Registrant?s quarterly financial information for the second quarter of 2011 on or about August 3, 2011. A copy of this mailing 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 - Release dated July 22, 2011 of quarterly financial information as of June 30, 2011. 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 27, 2011 By /s/ Gregory J. Dawson___ Gregory J. Dawson Chief Financial Officer EX-99 2 form8k112ex99.txt EXHIBIT 99.1 Exhibit 99.1 July 22, 2011 Quarterly Report Second Quarter 2011 We are pleased to report that through the second quarter ended June 30, 2011, earnings for your company were up 26.2% when compared to the June 30, 2010 earnings. On a year to date basis, we earned $2.68 million compared to $2.13 million for the six months ended June 30, 2010. We reported $1.42 million in profit for the second quarter of 2011, compared to $1.18 million for the second quarter of 2010, a 20.3% increase. Earnings per share on a fully diluted basis, increased from $0.78 per share to $0.98 per share through the six months ended June 30, 2011. A significant contributor to this improvement in our bottom line has been a strategy that we began implementing in August, 2010 to improve our net interest margin. We have increased the margin from 3.46% for June, 2010 to 4.48% through June, 2011. As a result, our net interest income has totaled $12.04 million through the second quarter of 2011, which is a 20.3% increase over the June, 2010 net interest income figure. Loan demand continues to remain soft as the economies in our markets continue to be somewhat uncertain. As has been said in prior reports, both the national and Kentucky economies continue to be sluggish. In many of the markets in which we do business, there has been some improvement in unemployment, along with some slight improvement in loan demand. The housing and home construction sectors, both locally and nationally, continue to struggle. Economists continue to forecast that we will have a significant number of unsold homes in inventory. Congress?s continual inability, at least at the time of this letter, to resolve our debt ceiling issues has left the markets in a bit of a tenuous position. We are hopeful that they will come to a resolution prior to your receiving this letter. Finally, it has been a year since the Dodd-Frank bill passed. The implications of this legislation are still incomplete other than the banking industry?s concerns about the increased cost of regulation. In our Wealth Management Department, we have added two additional employees to help us better service our clients as well as grow that area of your bank. Eric McAnallen has joined us as a financial consultant and will be working with our bank?s brokerage team. Eric is a graduate of the University of Kentucky and Regis University, and has most recently been working for Edward D. Jones, Co. His primary area of focus will be the Jessamine, Woodford, and Scott markets. Additionally, in the Wealth Management area, Jason Gresham has joined us as the newest member of our team. Jason comes to us with a background in financial planning, first at J.P. Morgan Chase, and more recently with TIAA-CREF where he was an accredited Wealth Management advisor. He is a graduate of the University of Kentucky with a degree in economics. We look forward to both of these gentlemen?s contributions to the growth of our Wealth Management area. Judy Taylor, who has been the head of our Human Resources Department for the last sixteen years, has announced her retirement. In anticipation of that, we have recently added Carol Caskey as a Senior Vice-President and Director of Human Resources. Carol has been in the Human Resources field for over twenty years. She worked most recently for Humana and prior to that, for a large restaurant franchise. She has both her Bachelor?s and Master?s Degrees from Morehead State University. I would be remiss if I did not thank Judy for her twenty-four years of commitment to Kentucky Bank. We wish Judy well with her retirement, and we certainly appreciate her immense contribution and dedication to make our bank a wonderful environment in which to work. The economic challenges and uncertainty that have existed over the last three and a half years will still be facing us over the next twelve to eighteen months. Your company is still committed to meet those challenges head on, and to provide a return on investment that you should expect. We will continue to do everything possible to accomplish what is in the long term best interest of our customers, employees, communities, and our shareholders. As always, we appreciate your support. /s/Louis Prichard Louis Prichard President, CEO UNAUDITED
CONSOLIDATED BALANCE SHEET Percentage 6/30/2011 6/30/2010 Change Assets Cash & Due From Banks $ 13,547,467 $ 13,566,766 -0.1% Securities 173,611,167 191,625,562 -9.4 Loans Held for Sale 513,900 294,800 74.3 Loans 408,515,863 416,474,796 -1.9 Reserve for Loan Losses 5,641,760 6,460,927 -12.7 Net Loans 402,874,103 410,013,869 -1.7 Federal Funds Sold 106,000 16,837,000 -99.4 Other Assets 57,507,552 54,816,975 4.9 Total Assets $ 648,160,189 $ 687,154,972 -5.7% Liabilities & Stockholders' Equity Deposits Demand $ 126,399,413 $ 117,022,918 8.0% Savings & Interest Checking 180,542,318 160,874,631 12.2 Certificates of Deposit 210,051,532 277,033,341 -24.2 Total Deposits 516,993,263 554,930,890 -6.8 Repurchase Agreements 4,488,530 4,340,585 3.4 Other Borrowed Funds 56,109,788 58,830,688 -4.6 Other Liabilities 5,032,243 6,193,764 -18.8 Total Liabilities 582,623,824 624,295,927 -6.7 Stockholders' Equity 65,536,365 62,859,045 4.3 Total Liabilities & Stockholders? Equity $ 648,160,189 $ 687,154,972 -5.7%
CONSOLIDATED INCOME STATEMENT Six Months Ending Three Months Ending Percentage Percentage 6/30/2011 6/30/2010 Change 6/30/2011 6/30/2010 Change Interest Income $ 15,139,200 $ 15,448,422 -2.0% $ 7,681,644 $ 7,876,830 -2.5% Interest Expense 3,103,202 5,447,301 -43.0 1,465,720 2,745,055 -46.6 Net Interest Income 12,035,998 10,001,121 20.3 6,215,924 5,131,775 21.1 Loan Loss Provision 1,450,000 1,250,000 16.0 700,000 800,000 -12.5 Net Interest Income After Provision 10,585,998 8,751,121 21.0 5,515,924 4,331,775 27.3 Other Income 4,100,992 4,116,720 -0.4 2,273,525 2,369,947 -4.1 Other Expenses 11,560,448 10,507,694 10.0 6,130,935 5,335,341 14.9 Income Before Taxes 3,126,542 2,360,147 32.5 1,658,514 1,366,381 21.4 Income Taxes 443,350 234,628 89.0 237,731 185,281 28.3 Net Income $ 2,683,192 $ 2,125,519 26.2 $ 1,420,783 $ 1,181,100 20.3 Net Change in Unrealized Gain (loss) on Securities 3,101,686 891,283 248.0 1,807,535 685,050 163.9 Comprehensive Income $ 5,784,878 $ 3,016,802 91.8% $ 3,228,318 $ 1,866,150 73.0% Selected Ratios Return on Average Assets 0.82% 0.60% 0.87% 0.66% Return on Average Equity 8.5 6.9 8.9 7.6 Earnings Per Share $ 0.98 $ 0.78 $ 0.52 $ 0.43 Earnings Per Share - assuming dilution 0.98 0.78 0.52 0.43 Cash Dividends Per Share 0.44 0.42 0.22 0.21 Book Value Per Share 23.96 22.92
Market Price High Low Close Second Quarter '11 $17.00 $15.83 $16.50 First Quarter '11 $17.50 $16.50 $16.50