Bancshares, Inc.
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Financial Highlights
2011
2010
2009
2008
Assets ($ thousands)
Net income
Per Share:
$
659,453
^^:;:v: $
5,687
Earnings (assuming dilution)
;
;
Dividend
$
$
2.09
.88
$
$
$
$
658,943
4,939
1.81
.84
$
$
$
$
675,231
$ 678,775
4,848
$
3,713
1.77
0.80
$
$
1.33
1.12
Annual Meetmg
The annual meeting of Kentucky Bancshares, Inc. will be held Wednesday May 16, 2012 at 11:00 in the
corporate headquarters.
Investor Information
Any individual requesting a copy of the Corporation's 2011 Form 10-K Report may obtain these by visiting our
website at www.kybank.com or writing to Investor Relations at the Corporate Headquarters.
Shareholder Information
Corporate Headquarters
Kentucky Bancshares, Inc.
339 Main Street
Paris, Kentucky 40361
859-987-1795
www.kybank.com
Acquiring Stock
Transfer, Registrar and Dividend Agent
Registrar and Transfer Company
10 Commerce Drive
Cranford, New Jersey 07016
800-368-5948
rtco.com
Kentucky Bancshares, Inc. common stock is available through your broker or Kentucky Bank's Wealth
Management Department. We are listed on the Over-The-Counter Bulletin Board, symbol KTYB.OB.
Investor Relations
We have a new page on our website that will bnng you up to date
information about your Kentucky Bank stock. To see mvestor mformation go
to www.kybank.com, click on the about us tab, then mvestor relations. We
offer you company highlights, dividend history SEC filings, historical
graphs and other helpful information
related to our company and your stock.
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Dear Shareholders:
We a re pleased to report for the year e n d ed December 31, 2011, earnings for your company were up 15.1% w h en
compared to December 31, 2010. On a year to date basis, we e a r n ed $5.7 million for the year e n d ed December 31,
2011 as compared to $4.9 million for the s a me period in 2010. For the fourth quarter 2011, our earnings at $1.2 million
remained level, when compared to the same period in 2010. Additionally I am pleased to announce that our earnings
per share for the year increased from $1.81 per share on a fully diluted basis to $2.09, which is a 15.5% increase.
Total assets at December 31, 2011 were $659.5 million compared to $658.9 million for 2010. Remaining virtually flat
in asset growth is primarily the result of the continued instability of our local, regional, a nd state economies. Deposits
were up 1% from the previous year as reflected by the $542.9 million total at December 31, 2011 versus the $537.4
million figure at December 31, 2010.
The economy in 2011 did show some signs of improvement. In last years letter to our shareholders, we expressed
concern about how much longer we would be experiencing the already four y e ar old recession. The national
unemployment rate h as d r o p p ed from a b o ve 9.0% to 8.3%. In Kentucky 114 of 120 counties h a ve shown lower
unemployment rates, a nd fortunately most all the markets we serve reflect lower unemployment numbers than the
state as a whole.
The housing market, on the national a nd regional levels, continues to be sluggish. Home sales, both new and existing,
are not increasing a nd home values a re flat, if not continuing to decline slightly Low interest rates h a ve encouraged
significant refinancing of homes, but h a ve not spurred a ny major activity
Business activity however, is starting to show some signs of improvement as evidenced by slight increases in
commercial lending. The manufacturing industries h a ve b e en relatively stable a nd car sales h a ve shown healthy
gains. The improvement in the stock market is also encouraging as an indicator of a recovering economy that is
predicted to grow at a less than 3% rate in 2012. Rising oil prices, however a nd events outside our country could still
be impediments to the recovery
The regulatory b u r d e ns placed on the banking industry by the Dodd-Frank Bill a re becoming increasingly
challenging in cost, time, a nd energy Heretofore, only 25% of the legislation h as b e en implemented, a nd the
limitations it h as placed on community banks a nd ultimately to the consumer a re being felt. Despite these burdens,
your bank will continue to deal with these issues a nd adapt, so as to remain successful.
Our commitment to Premier Customer Service h as never b e en stronger as we focus on ensuring that we maintain
a nd grow existing relationships at every opportunity As an example, our Corporate Services Department h as
increased relationships by over 70%, as we provide electronic banking services that our customers expect.
We h a ve initiated an effort to e n h a n ce our abilities to offer Small Business Administration (SBA) loans to commercial
customers a nd prospects that can benefit from these kinds of programs. Other enhancements to lending services
include residential real estate loans in cooperation with governmental programs like Federal Housing Administration
(FHA), Rural Housing Service (RHS), Veterans Affairs ("VA), a nd Kentucky Housing Corporation (KHC).
We a re also very pleased to a n n o u n ce that your company w as recognized by the Kentucky C h a m b er of Commerce
a nd the Kentucky Society for Human Resource Management as one of the Best Places to Work. There are two reasons
to be especially excited about this award. First, b e c a u se this w as the first y e ar in our effort for recognition, we were
not expecting this designation. Second, a nd most importantly this a w a rd is a representation of the quality of the
people who work at Kentucky Bank.
These have b e en challenging times for our economy a nd our industry We believe, despite these challenges, that your
company is in a position to continue to grow a nd prosper
As always, we appreciate your interest a nd support.
Louis Prichard
President, CEO
Kentucky Bank at a Glance
Kentucky Bank Group Photo
Kentucky Bank holds a training d ay at least once a year that includes all employees. The opportunity for the photo
on our cover presented itself on Presidents' Day February 20, 2012, a d ay that the bank offices a re closed for
business. We gather offsite to share current information about our strategic direction a nd results of recent efforts.
Kentucky Bank employs 219 employees in the eight counties in which we serve.
It is our dedication to our employees, a nd their dedication to you, that h as enabled us to be a m o ng the winners of
Best Places to Work in Kentucky for 2012. It is through the efforts of our employees that we a re able to deliver the
level of service a nd commitment that our shareholders a nd customers receive. We a re proud of our employees
a nd we believe they a re proud to represent Kentucky Bank.
Premier Customer Service
Throughout the y e ar we recognize employees
who a re nominated by their peers for
delivering Premier Customer Service. At
the e nd of the year we honor the
employee that we believe delivered
the highest level of service. During
our a n n u al training d ay we were
pleased to recognize not one,
but three winners of the a n n u al
Premier Customer Service
award. The a w a rd winners
were Renee Fowler of
Cynthiana, Renee Conn of
Morehead, a nd Amy White
of Nicholasville. All three
winners exemplified, by
their respective actions, our
commitment to Premier
Customer Service.
*
Electronic
This year we will introduce
Mobile Banking with a custom
a pp that will allow customers to
access their bank information. We
will also be adding online
applications to our website for the
convenience of our customers. Customers
with an email address on file with us will
begin receiving e-newsletters in the n e ar future.
The newsletters will share n ew product information,
industry trends, identity theft precaution tips, a nd much
more.
^ ^ T U C^
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Commercials
We h a ve developed two new commercials that we thought you might enjoy watching, as both commercials
feature several of our customers. O ne commercial promotes our Wealth Management Department. The other is a
loan commercial that features customers working alongside our Market Presidents. Inside our back cover you
will see two OR codes. Using your smart phone, you can download an a pp that reads the OR codes. This will
allow you to click a nd view our newest commercials. We hope you enjoy seeing your bank in action.
Officers
Senior M a n a g e m e nt
Louis Prichard, President a nd CEO
James Braden, SVP Director of Risk Management
Brenda Bragonier SVP Director of Marketing
Carol Caskey SVP Director of Human Resources
Gregory J. Dawson, SVP Chief Financial Officer
Norman J. Fryman, EVP Chief Credit Officer
William Hough, SVP Director of Sales & Service
Clark Nyberg, SA/P Director of Wealth Management
Martha Woodford, SVP Director of Operations
Accounting
Gregory J. Dawson, SVP Chief Financial Officer
Brenda Berry AVP Sr Accountant
Brandon Gilliam, AVP Controller
Janice Hash, AVE? Sr Accountant a nd Purchasing
Commercial Lending
Darren Henry VP Director of Commercial Lending
Benjamin Caudill, VP Commercial Lender
Ken DeVasher VP Commercial Lender
S h a ne Foley VP Commercial Lender
John Hamilton, VP Commercial Lender
Credit Administration
Norman J. Fryman, EVP Chief Credit Officer
Priscilla Hampton, AVP Commercial Loan Processing
Manager
Lisa Highley VP Director of Mortgage Lending
Catherine Hill, VP Collections Manager
Shawn King, VP Credit M a n a g er Sr Credit Analyst
Kay Wilson, DE Underwriter
Human Resources
Carol Caskey SVP Director of Human Resources
Christopher J. LeMaster AVP Director of Training
Marketing
Brenda Bragonier SVP Director of Marketing
Operations
Martha Woodford, SVP Director of Operations
Karen Anderson, AVP Exception Items a nd Data Officer
Melinda Biddle, AVP Operations Officer
Dixie Fite, Quality Control Officer
Jeff Lehmann, Mortgage Servicing Manager
Brandon Sumpter Senior Software Advisor
Risk M a n a g e m e nt
James Braden, SVP Director of Risk Management
Sherr^^ Griffith, AVP BSA, Security Officer
Lydia Sosby VP Compliance Officer
Wealth M a n a g e m e nt
Clark Nyberg, SVP Director of Wealth Management
James Gray Investment Advisor
Jason Gresham, VP Business Development a nd Trust Officer
Eric McAnallen, Investment Advisor
Jan Worth, VP Sr Trust Officer
Bourbon County
Nancye Fightmaster Market President
Wallis Brooks, AVP Branch M a n a g er CRA Officer
Rhonda Brown, AVp Small Business a nd Mortgage
Lender
Benson Fryman, AVP Small Business a nd Mortgage
Lender
Clark County
Darryl Terry Market President
Kathy Newkirk, AVP Small Business a nd Mortgage
Lender
Teresa Shimfessel, AVP Branch Manager a nd
Consumer Lender
Elliott County
Sherry Mathis, Market President
Harrison County
Pam Slone, Market President
Dreama Harris, AVP Small Business a nd Mortgage
Lender
Jessamine County
Brandon Eason, Market President
Teague Sims, AVP Small Business a nd Mortgage Lender
Rowan County
Jeremy Brown, Market President
Connie Ingram, AVP Small Business a nd
Mortgage Lender
Tom James, Branch M a n a g er Consumer Lender
Scott County
Mark Sulski, Market President
Karin Buchanan, AVP Small Business a nd Mortgage
Lender
Woodford County
Duncan Gardiner Market President
Jeremy Gray AVP Small Business a nd Mortgage Lender
Board of Directors
William M. Arvin
Attorney
Law Offices of William Miles Arvin
B. Proctor Caudill Jr.
Special Projects Manager
Kentucky Bank
Henry Hinkle
President
Hinkle Contracting Company LLC
Betty J. Long
Retired President
First Federal Savings of Cynthiana
Theodore Kuster
CEO
Hillside Farm, Shawhan Place,'.
LLC
Ted McClain
President
Hopewell Insurance Company
Louis Prichard
President, CEO
Kentucky Bank
Kentucky Bancshares, Inc.
Robert G. Thompson
Farmer Thoroughbred Breeder
Snowhill Farm
Dr. Woodford Van Meter
Professor of Ophthalmology
University of Kentucky
Edwin S. Saunier
President
Saunier North American, Inc.
Buckner Woodford IV
Chairman
Kentucky Bank
Kentucky Bancshares, Inc.
REGIONAL DIRECTORS
BOURBON
Proctor W Blair
Partner Ludwig, Blair and Bush
, PLLC
Lonnie Conley
Co-Owner Paris Machining
Allyson Eads
Co-owner Eads Hardware
CLARK
Mary Beth Hendricks
Director Clark County
Child Support Services
Donald Pace
Retired Executive Director
Central Kentucky
Educational Co-op with UK
John G. Roche
John G. Roche Opticians, Inc.
Edwin S. Saunter
President
Saunier North American, Inc.
Kevin E. Welsh
Manager
Alltech, Winchester Operations
EAST KENTUCKY
Representative Rocky Adkins
Majority Floor Leader
House of Representatives
Trent Hamilton
Owner Hamilton, Inc.
G.R. (Sonny) Jones
VPCFO
St. Claire Regional Medical Center
William H. Redwine
iWP Auxiliary Services
Morehead State University
Madonna Weathers
VP Student Life
Morehead State University
Gerry Whalen
Appraiser Broker
Whalen and Company
JESSAMINE
William M. Arvin
Attorney
Law Offices of William Miles Arvin
Dr Michael R. Bishop
Michael R. Bishop, DMD, and
Associates, PSC
Tom Buford
Kentucky State Senator
Jonah Mitchell
President, lonah Mitchell Real Estate
and Auction
Eva McDaniel
lessamine County Clerk
SCOTT
Dr Gus Bynum
Family Physician
Mike Hockensmith
Owner and President
The Hockensmith Agency Inc.
George Lusby
Scott County ludge Executive
Katy Prather
Realtor Keller Williams Bluegrass
Realty
Everette Varney
Mayor of Georgetown
HARRISON
WOODFORD
K. Bruce Florence
Branch Campus Director
Maysville Community and Technical
College
Licking Valley Campus and Kiser
Center
Ann Getting
Plant Manager 3 M
Betty J. Long
Retired President
First Federal Savings of Cynthiana
Brad Marshall
Fanner Former-Owner
Tommy Haggard
CEO, Bluegrass Community Hospital
James Kay
Businessman, Farmer
Tricia N. Kittinger
Circuit Clerk, Woodford County
Carolyn H. McDonald
Realtor Rector Hayden Realtors
Rodes Shackelford Parrish
President, The Clay Ward Agen
cy LLC Marshalls Tractor Supply
Bobby Shiflet
Owner Frames on Main
loel Techau
CEO, Techau, Inc.
Office Locations
CUSTOMER SERVICE NUMBER
800-467-1939
JESSAMINE COUNTY
BOURBON COUNTY
Bourbon Banking Center
401 Main Street
Paris, KY 40361
Lexington Road Office
2021 S. Main Street
Paris, KY 40361
CLARK COUNTY
Colby Road Office
1975 Bypass Road
Winchester KY 40391
Winchester Main Office
24 W Lexington Avenue
Winchester KY 40391
ELLIOTT COUNTY
Sandy Hook Office
Main a nd jane Streets
Sandy Hook, KY 41171
HARRISON COUNTY
Cynthiana US 27 Office
939 US Hwy 27 South
Cynthiana, KY 41031
859-987-1795
559-987-1795
859-744-3825
859-744-1632
606-738-5163
Nicholasville Office
920 N. Main Street
Nicholasville, KY 40356
Wilmore Office
108 E. Main Street
Wilmore, KY 40390
ROWAN COUNTY
Morehead Downtown Office
400 W First Street
Morehead, KY 40351
Flemingsburg Road Office
1500 Flemingsburg Road
Morehead, KY 40351
SCOTT COUNTY
Cherry Blossom Office
260 Blossom Park Drive
Georgetown, KY 40324
Showalter Office
103 WShowalter Drive
Georgetown, KY 40324
859-234-3363
WOODFORD COUNTY
Versailles Office
520 Marsailles Road
Versailles, KY 40383
859-885-6028
859-858-3993
606-780-0535
606-784-6973
502-863-5522
502-863-9400
859-873-9400
Commercial Services
Wealth Management
Download an app to read QR codes and view our newest commercials.
Kentucky Bancshares, Inc
P.O. Box 157
Paris, KY 40362-0157
www.kybank.com
800-467-1939