0001000232-15-000008.txt : 20150731
0001000232-15-000008.hdr.sgml : 20150731
20150731135748
ACCESSION NUMBER: 0001000232-15-000008
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20150731
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20150731
DATE AS OF CHANGE: 20150731
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: 151018908
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
form8k152financials.txt
FORM 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 31, 2015
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
2015 on or about August 7, 2015. 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 31, 2015 of quarterly financial
information as of June 30, 2015.
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: July 31, 2015 By /s/ Gregory J. Dawson___
Gregory J. Dawson
Chief Financial Officer
EX-99
2
form8k152ex99.txt
EXHIBIT 99.1
Exhibit 99.1
July 31, 2015
Earnings Report
June 30, 2015
Dear Shareholders:
We are pleased to announce continued balance sheet growth for Kentucky
Bancshares, Inc. Total assets were $853.0 million as of June 30, 2015
compared to $785.3 million as of June 30, 2014 reflecting growth of 8.6%.
Year-to-date net income was $3.6 million for the period ending June 30,
2015 compared to $3.7 million for the period ending June 30, 2014.
The overall increase in total assets was driven by a 10.1% increase in
total loans, which was funded by a 7.8% increase in deposits and an 18.0%
increase in other borrowed funds. Similar to prior periods, borrowings
increased in an effort to strategically lock in longer term funding at
fixed rates, for anticipated growth and to minimize rate sensitivity in
anticipation of an increasing rate environment.
Year-to-date diluted earnings per share was $1.33 for the period ending
June 30, 2015 compared to $1.36 for the same period last year. The change
from year-to-year is largely attributable to higher loan loss provision
and higher non-interest expense, partially offset by higher net interest
income and lower tax expense. Provision expense is higher due to the
growth in our loan portfolio. While our credit quality remains strong and
favorable to peers, management feels it is prudent to increase our
provision because of our recent loan growth. Non-interest expense
increased due, in part, to merger related expenses associated with the
acquisition of Madison Financial Corporation, which closed on July 24,
2015. Net interest income is higher due to our loan and investment
growth. Tax expense is lower due to purchased tax credits, lower income,
and increased exemptions associated with our captive insurance
subsidiary.
The second quarter of 2015 was a busy and productive one for us. In
addition to the loan and deposit growth in the second quarter, we worked
diligently on the merger of Madison Bank with Kentucky Bank. We are
extremely pleased to report their three branching centers opened as
Kentucky Bank branches on July 27, 2015. We are privileged to unite with
such a good group of bankers and look forward to solidifying our presence
in Madison County, while expanding the retail and commercial
relationships Madison Bank has fostered throughout the years. John
Hamilton, a long-time Madison County banker, is leading our efforts in
Madison County as the Market President. He is well positioned with a
fantastic team of experienced bankers, to ensure the transition goes
smoothly for our combined customers.
Our view should always be a long term one and we will continue to
consider opportunities for further franchise expansion, including
possible acquisition opportunities, which advance our growth objectives
while maintaining our ability to provide Premier Customer Service. We
will continue to do everything possible to accomplish what is in the long
term best interest of our shareholders, customers, and employees.
As always, we appreciate your support.
/s/Louis Prichard
Louis Prichard
President, CEO
UNAUDITED
CONSOLIDATED BALANCE SHEET
(in thousands)
Percentage
6/30/2015 6/30/2014 Change
Assets
Cash & Due From Banks $ 16,143 $ 14,651 10.2%
Interest Bearing Time Deposits 1,280 300 326.7
Securities 237,476 224,168 5.9
Trading Assets 5,400 5,242 3.0
Loans Held for Sale 1,719 495 247.3
Loans 546,085 496,134 10.1
Reserve for Loan Losses 5,950 5,614 6.0
Net Loans 540,135 490,520 10.1
Federal Funds Sold 205 88 133.0
Other Assets 50,596 49,832 1.5
Total Assets $ 852,954 $ 785,296 8.6%
Liabilities & Stockholders' Equity
Deposits
Demand $ 179,909 $ 157,988 13.9%
Savings & Interest Checking 280,409 257,259 9.0
Certificates of Deposit 183,698 182,162 0.8
Total Deposits 644,016 597,409 7.8
Repurchase Agreements 13,690 11,297 21.2
Other Borrowed Funds 110,090 93,280 18.0
Other Liabilities 6,161 8,379 -26.5
Total Liabilities 773,957 710,365 9.0
Stockholders' Equity 78,997 74,931 5.4
Total Liabilities & Stockholders' Equity $ 852,954 $ 785,296 8.6%
CONSOLIDATED INCOME STATEMENT
(in thousands)
Six Months Ending Three Months Ending
Percentage Percentage
6/30/2015 6/30/2014 Change 6/30/2015 6/30/2014 Change
Interest Income $ 15,566 $ 14,688 6.0% $ 7,835 $ 7,405 5.8%
Interest Expense 1,940 1,860 4.3 972 926 5.0
Net Interest Income 13,626 12,828 6.2 6,863 6,479 5.9
Loan Loss Provision 650 200 225.0 350 100 250.0
Net Interest Income After Provision 12,976 12,628 2.8 6,513 6,379 2.1
Other Income 5,892 4,937 19.3 3,622 2,669 35.7
Other Expenses 14,925 13,229 12.8 7,708 6,776 13.7
Income Before Taxes 3,943 4,336 -9.1 2,427 2,272 6.8
Income Taxes 306 661 -53.7 305 368 17.0
Net Income $ 3,637 $ 3,675 -1.0% $ 2,122 $ 1,904 11.5%
Net Change in Unrealized Gain (Loss)
on Securities (1,223) 4,981 -124.5 (2,159) 1,729 -244.9
Comprehensive Income (Loss) $ 2,414 $ 8,656 -72.1% $ (37) $ 3,633 -101.0%
Selected Ratios
Return on Average Assets 0.84% 0.94% 0.99% 0.97%
Return on Average Equity 9.14 10.18 10.64 10.33
Earnings Per Share $ 1.33 $ 1.36 $ 0.77 $ 0.70
Earnings Per Share - assuming dilution 1.33 1.36 0.77 0.70
Cash Dividends Per Share 0.52 0.50 0.26 0.25
Book Value Per Share 28.98 27.54
Market Price High Low Close
Second Quarter '15 $32.35 $27.75 $31.40
First Quarter '15 28.15 27.00 28.15