0001000232-14-000004.txt : 20140430 0001000232-14-000004.hdr.sgml : 20140430 20140430151055 ACCESSION NUMBER: 0001000232-14-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140430 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140430 DATE AS OF CHANGE: 20140430 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: 14798103 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 form8k141financials.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): April 30, 2014 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 first quarter of 2014 on or about May 7, 2014. 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 April 30, 2014 of quarterly financial information as of March 31, 2014. Forward-Looking Statements Except for historical information contained herein, the discussion in this Report may include certain forward looking statements based upon management expectations. Actual results and experience could differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Factors which could cause future results to differ from these expectations include the following: change in economic conditions in the markets we serve; changes in laws or regulatory enforcement; monetary and fiscal policies of the federal government; changes in interest rates; demand for financial services; the impact of our continuing growth strategy; and other factors, including various risk factors set forth in our most recent annual report on Form 10-K and in other reports we file from time to time with the Securities and Exchange Commission. Our annual report on Form 10-K and these other reports are available publicly on the SEC website, www.sec.gov, and on the Company's website, www.kybank.com. 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: April 30, 2014 By /s/ Gregory J. Dawson___ Gregory J. Dawson Chief Financial Officer EX-99 2 form8k141ex99.txt EXHIBIT 99.1 Exhibit 99.1 April 30, 2014 Earnings Report March 31, 2014 Dear Shareholders: We are pleased to report for the quarter ended March 31, 2014, earnings for your company were up 3.7% over those of March 31, 2013. For the first quarter, we earned $1.77 million compared to $1.71 million for the same period in 2013. Earnings per share, on a fully diluted basis, increased from $0.63 to $0.66 which represents a 4.8% increase over the first quarter of 2013. The increase in earnings was largely driven by two large loan recoveries of principal and interest, which had previously been written off. Loan and investment yields continue to decline as the extended period of low interest rates impacts spreads and margins. The reduced activity in residential real estate refinancing also impacted us, in that the gain on the sale of those loans in the secondary market was reduced by approximately $500,000 compared to the same period last year. Also, our interest expense increased as a result of a strategic decision to borrow additional funds from the Federal Home Loan Bank at a long term fixed rate. Our strategic thinking is that longer term rates are increasing, and we believe that in 2015 and 2016 rates will likely increase even more. By borrowing now we have incurred some additional interest expense, but over the long term we can help reduce our interest expense in the future. Total assets increased over the March 31, 2013 total by 10.7% with loans increasing 12.2% over the same period. Deposits continue to increase as well, providing growth of 5.7% over the first quarter of 2013. The national and local economies continue to show gradual improvements. Some increased commercial loan demand and increased financing of home purchases reflect some of that activity. However, our state employment numbers continue to be a drag on our economy. Our Madison County location opened in February and we are now looking for increased activity there. Market President John Hamilton has assembled a strong team, with all members having local ties to that community and bringing a wealth of experience. Your stock continues to show increased market value and closed the quarter at $24.75 which is up from $23.03 this time last year. The dividend declared in the first quarter represents an annual yield of 4.04%. Our goal, as always, is to provide an excellent return on investment to our shareholders, through the delivery of Premier Customer Service and by adding value to our customer and client relationships. As always, we appreciate your support. /s/Louis Prichard Louis Prichard President, CEO UNAUDITED
CONSOLIDATED BALANCE SHEET Percentage 3/31/2014 3/31/2013 Change Assets Cash & Due From Banks $ 21,507,735 $ 15,352,080 40.1% Securities 236,364,198 223,003,978 6.0 Trading Assets 5,108,033 - n/a Loans Held for Sale 149,400 134,400 11.2 Loans 474,011,586 422,319,748 12.2 Reserve for Loan Losses 5,616,396 5,623,131 -0.1 Net Loans 468,395,190 416,696,617 12.4 Federal Funds Sold 369,000 161,000 129.2 Other Assets 50,760,340 51,766,598 -1.9 Total Assets $ 782,653,896 $ 707,114,673 10.7% Liabilities & Stockholders' Equity Deposits Demand $ 165,674,861 $ 147,899,394 12.0% Savings & Interest Checking 274,437,415 256,343,639 7.1 Certificates of Deposit 187,891,783 190,110,146 -1.2 Total Deposits 628,004,059 594,353,179 5.7 Repurchase Agreements 11,401,569 6,983,598 63.3 Other Borrowed Funds 64,597,235 24,833,562 160.1 Other Liabilities 6,700,659 7,146,923 -6.2 Total Liabilities 710,703,522 633,317,262 12.2 Stockholders' Equity 71,950,374 73,797,411 -2.5 Total Liabilities & Stockholders' Equity $ 782,653,896 $ 707,114,673 10.7%
CONSOLIDATED INCOME STATEMENT Three Months Ending Percentage 3/31/2014 3/31/2013 Change Interest Income $ 7,282,534 $ 6,955,751 4.7% Interest Expense 933,174 821,683 13.6 Net Interest Income 6,349,360 6,134,068 3.5 Loan Loss Provision 100,000 450,000 -77.8 Net Interest Income After Provision 6,249,360 5,684,068 9.9 Other Income 2,268,384 2,602,252 -12.8 Other Expenses 6,453,891 6,176,085 4.5 Income Before Taxes 2,063,853 2,110,235 -2.2 Income Taxes 292,417 401,220 -27.1 Net Income $ 1,771,436 $ 1,709,015 3.7 Net Change in Unrealized Gain (loss) on Securities 3,251,229 (1,251,863) -359.7 Comprehensive Income $ 5,022,665 $ 457,152 998.7% Selected Ratios Return on Average Assets 0.91% 0.96% Return on Average Equity 10.04 9.23 Earnings Per Share $ 0.66 $ 0.63 Earnings Per Share - assuming dilution 0.66 0.63 Cash Dividends Per Share 0.25 0.24 Book Value Per Share 26.44 27.08
Market Price High Low Close First Quarter '14 $24.80 $23.90 $24.75 Fourth Quarter '13 26.25 24.15 24.24