0001000232-12-000007.txt : 20120727 0001000232-12-000007.hdr.sgml : 20120727 20120727154104 ACCESSION NUMBER: 0001000232-12-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120727 DATE AS OF CHANGE: 20120727 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: 12990602 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 form8k122financials.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, 2012 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 2012 on or about August 1, 2012. 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 or otherwise subject to the liabilities of that section, 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 23, 2012 of quarterly financial information as of June 30, 2012. 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, 2012 By /s/ Gregory J. Dawson___ Gregory J. Dawson Chief Financial Officer EX-99 2 form8k122ex99.txt EXHIBIT 99.1 Exhibit 99.1 July 23, 2012 Quarterly Report Second Quarter 2012 We are pleased to report that through the second quarter ended June 30, 2012, earnings for your company were up 26.6% when compared to the June 30, 2011 earnings. On a year to date basis, we earned $3.40 million compared to $2.68 million for the six months ended June 30, 2011. We reported $1.78 million in profit for the second quarter of 2012, compared to $1.42 million for the second quarter of 2011, a 25.1% increase. Earnings per share on a fully diluted basis increased from $0.98 per share in 2011 to $1.25 per share for the six months ended June 30, 2012. Our total assets increased from $648.2 million to $670.5 million, a 3.5% increase. Total net loans increased by 3.2% from $402.9 million to $415.6 million. Net interest margins have remained stable for the year. This has been helped by an ability to control our cost of deposits while increasing our loan balances. Nationally, the economy appears to be growing at a very moderate pace of 1.0% to 1.5% in the second quarter. Unemployment rates continue to be higher than desired at 8.2%. In Kentucky, we are still higher than the national average, but in the eight markets in which we operate we are seeing improvement, as they are all below the state averages. The stock market, which had been showing signs of improvement through the first part of the year, has been a little weaker as of late. Some of this has had to do with the expected weaker second quarter of the year but has also been impacted by the uncertainties in Europe. In our local markets, we are seeing positive movement in the housing market. Our applications for residential mortgages are increasing, with more customers interested in purchasing homes. Additionally, we have seen increased requests for construction loans for the first time in two years. We have also seen an increase in our business lending activity as customers are looking more and more for opportunities than they have in recent times. If these trends continue, we are cautiously optimistic about the economy of the markets in which we operate. In May, we welcomed Aaron Roberts as a Regional Director for our East Kentucky Board. He is a Rowan County native, a graduate of Morehead State University, and the owner of Aaron?s Best One Tire in Morehead. He has been very active in his community and we look forward to his assistance with our growth in that market. Our economy is improving, but there is still significant improvement that has yet to take place. Your company is in a position to deal with the challenges ahead and to capitalize on opportunities as they arise. Kentucky Bank ranks 15th in size among the 177 banks headquartered in the Commonwealth of Kentucky. Kentucky Bank is headquartered in Paris and also has offices in Cynthiana, Georgetown, Morehead, Nicholasville, Sandy Hook, Versailles, Wilmore and Winchester. As always, we appreciate your support. /s/Louis Prichard Louis Prichard President, CEO UNAUDITED
CONSOLIDATED BALANCE SHEET Percentage 6/30/2012 6/30/2011 Change Assets Cash & Due From Banks $ 15,204,048 $ 13,547,467 12.2% Securities 184,962,107 173,611,167 6.5 Loans Held for Sale 92,000 513,900 -82.1 Loans 421,398,577 408,515,863 3.2 Reserve for Loan Losses 5,788,737 5,641,760 2.6 Net Loans 415,609,840 402,874,103 3.2 Federal Funds Sold 110,000 106,000 3.8 Other Assets 54,564,593 57,507,552 -5.1 Total Assets $ 670,542,588 $ 648,160,189 3.5% Liabilities & Stockholders' Equity Deposits Demand $ 137,710,763 $ 126,399,413 8.9% Savings & Interest Checking 214,859,811 180,542,318 19.0 Certificates of Deposit 190,560,577 210,051,532 -9.3 Total Deposits 543,131,151 516,993,263 5.1 Repurchase Agreements 4,691,782 4,488,530 4.5 Other Borrowed Funds 44,115,466 56,109,788 -21.4 Other Liabilities 6,239,616 5,032,243 24.0 Total Liabilities 598,178,015 582,623,824 2.7 Stockholders' Equity 72,364,573 65,536,365 10.4 Total Liabilities & Stockholders? Equity $ 670,542,588 $ 648,160,189 3.5%
CONSOLIDATED INCOME STATEMENT Six Months Ending Three Months Ending Percentage Percentage 6/30/2012 6/30/2011 Change 6/30/2012 6/30/2011 Change Interest Income $ 14,483,259 $ 15,139,200 -4.3% $ 7,320,886 $ 7,681,644 -4.7% Interest Expense 2,014,356 3,103,202 -35.1 961,679 1,465,720 -34.4 Net Interest Income 12,468,903 12,035,998 3.6 6,359,207 6,215,924 2.3 Loan Loss Provision 1,000,000 1,450,000 -31.0 550,000 700,000 -21.4 Net Interest Income After Provision 11,468,903 10,585,998 8.3 5,809,207 5,515,924 5.3 Other Income 4,977,591 4,100,992 21.4 2,481,443 2,273,525 9.1 Other Expenses 12,292,554 11,560,448 6.3 6,084,940 6,130,935 -0.8 Income Before Taxes 4,153,940 3,126,542 32.9 2,205,710 1,658,514 33.0 Income Taxes 758,035 443,350 71.0 427,831 237,731 80.0 Net Income $ 3,395,905 $ 2,683,192 26.6 $ 1,777,879 $ 1,420,783 25.1 Net Change in Unrealized Gain (loss) on Securities 1,276,805 3,101,686 -58.8 1,768,232 1,807,535 -2.2 Comprehensive Income $ 4,672,710 $ 5,784,878 -19.2% $ 3,546,111 $ 3,228,318 9.8% Selected Ratios Return on Average Assets 1.00% 0.82% 1.05% 0.87% Return on Average Equity 9.61 8.55 10.01 8.85 Earnings Per Share $ 1.25 $ 0.98 $ 0.65 $ 0.52 Earnings Per Share - assuming dilution 1.25 0.98 0.65 0.52 Cash Dividends Per Share 0.46 0.44 0.23 0.22 Book Value Per Share 26.61 23.96
Market Price High Low Close Second Quarter '12 $23.90 $20.20 $21.00 First Quarter '12 $23.49 $19.05 $22.00