2012 Ky Bank-RD2 copy.pdf 1 3/27/13 9:43 AM C M Y CM MY CY CMY K Kentucky Bancshares, Inc. P.O. Box 157 Paris, KY 40362-0157 www.kybank.com 800-467-1939 KENTUCKY BANCSHARES, INC. 2012 ANNUAL REPORT L026273insidepages_Layout 1 3/26/13 8:27 AM Page 1 Financial Highlights Assets ($ thousands) $701,010 $659,453 $658,943 $675,231 2012 2011 2010 2009 Net income Per Share: $ 7,008 $ 5,687 $ 4,939 $ 4,848 Earnings (assuming dilution) Dividend $ $ 2.59 .92 $ $ 2.09 .88 $ $ 1.81 .84 $ $ 1.77 .80 Annual Meeting The annual meeting of Kentucky Bancshares, Inc. will be held Wednesday, May 15, 2013 at 11:00 in the corporate headquarters. Investor Information Any individual requesting a copy of the Corporation’s 2012 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 800-467-1939 www.kybank.com Transfer, Registrar and Dividend Agent Registrar and Transfer Company 10 Commerce Drive Cranford, New Jersey 07016 800-368-5948 rtco.com Acquiring Stock Kentucky Bancshares, Inc. common stock is available through your broker or Kentucky Bank’s Wealth Management Department. Our stock symbol is listed as KTYB. Investor Relations For more information about your investment in Kentucky Bancshares, Inc., please visit www.kybank.com, click on About Us, then Investor Relations. We offer you company highlights, dividend history, SEC filings, historical graphs and other helpful information related to our company and your stock. In addition, you can sign up for email alerts of daily stock updates and public announcements. 1 O RRR KKKKK III NN C E NN III MMMMM BBBBBB LLL AAAA TTTT IIIII OOOOO NNNN P E RRR SSSSS C O N V E N I E N C E N I M B L E S L E EE KK C O M M U N I C A T I O N P E R S O N A L M O B I L E C OO NN N EE CC TT EE DD A C C E S S I B L E L O C A L N E T W O R K I N D I S P E N S I B L E C O N V E N I E N C E N II MM B L EE S L E E K C O M M UU N II C A T I ON P E R S O N A L M O B I L E CC O N N E C T ED A C C E S S I B L E E C T E DD AA C C E S S I B L E L O CC AA L N E T W O R K I N D I S P E N S I B L E SS PPPPP EEEEEE NNNNNNN SSS I B L E C O N V E N I E N C E N I M B L E LLLL EEEEEE E K P E R S O N A L AAAAA LL M U N I C AAA C OO MM M M O B I L E A C C E S S I B L E EEE AA CCCC CCCCC E S SSSSS II L E CC OOOOOOO NNNNNN L O C A L N E T W O R K OOO RRR KKK L NNN EE TTT WWWW OOOO C O N V E N I E N C E N I M B L E C E NNN IIIIII MMMMMM E N I E N AAAAA TTTT I OO N PP EEEEE M U NNN IIII CCCC AAAA C OO M M M O B I L E EEE CCCCC TTTTTTT EEEEEE DD A C CC EEEE LLLLL EEEEEE CCCCCCCCC OOOO NNN NN E CC TTT EEEEEE DDDD A C C EEEEE M O B I LLLLL L O C A L N E T W O R K L N EE TT W O R K I NN DDDDD IIIIIIII SSSSSSS P EE NNNNNNN L OO CCCCCCCC AAAAAAA LL C O N V E N I E N C E N I M B L E EEEEE NNN III EEEE NNNNN CCCCCCC EEEEEE NNN I M BBB LLLLLLLL EE SSSS LLLLL EE EE KK CCC OOOOOO NNNNNNN VVVVVVV C O M M U N I C A T I O N P E R S O N A L M U N I C A T II OOOOOOO NNNN P E RRRRR SS OO NN AA LL CCCC OOOO M M U N I C A T I OOOO NNNNNN P E RRR SSS OOO NNN AAA LLL M O B I L E A C C E S S I B L E M O B I L E C OO NN N E CT E DD AAAAAAA CCCCC C E S SS II BB LL EE L O C A L N E T W O R K L O C A L N E T W O R K II NN DD I SSSSS PPPPPPPP EEEEE NNNNN SSSSS IIIII BBBBB LLLLL EEEEE C O N V E N I E N C E N I M B L E S L E E KK C O N V E N I E N C E N I M B LL EE S L E EE KKK C O M M U N I C A T I O N P E R S O N A L P E R S O N A L NNNNN A LLLL A C C E S S I B L E BBB LL E LLL EE EEEEE NNNNNN S II BBBBBB LLLLLL E EEEEEEE L026273insidepages_Layout 1 3/26/13 8:27 AM Page 2 Dear Shareholders: We are pleased to report for the year ended December 31, 2012, your company had record earnings of $7.0 million. This represents a 23.2% increase over the year ended December 31, 2011 total of $5.7 million. For the fourth quarter 2012, net income is $1.9 million. When compared to the same period in 2011, earnings are up 55.6% over the $1.2 million figure. Additionally, I am pleased to announce that our earnings for the year increased from $2.09 per share on a fully diluted basis to $2.59, which is a 23.9% increase. We are also pleased to announce that total assets reached a record high at December 31, 2012 of $701 million compared to $659 million for 2011. This represents a 6.3% increase. The national and local economies are showing some improvement, but there is still a bit of uncertainty facing the country. At the date of this letter, the so called “sequestration” deadline has passed. The cuts in the federal budget that are to automatically take place will start at the end of March. There has been much speculation as to its potential impact on the economy if Congress does not approve alternative measures to those required cuts. Beyond those economic uncertainties, we as an industry are still facing regulatory concerns. In meeting with our regulators, we do know that the writing of the rules associated with the Dodd-Frank bill is still being issued, with many of the rules still being considered for implementation. Until all of this legislation is put into practice, we as an industry, and individually at Kentucky Bank, can only do our best to prepare for the ultimate challenges associated with such a comprehensive bill. The markets in which we operate are showing economic improvement. Business activity is picking up as reflected in recent commercial loan activity. With rates still at historic lows, refinancing of residential mortgages is continuing and we are starting to see a small increase in home purchases. This is good news, as the value of homes is showing increases as well. As was mentioned in our Fourth Quarter Report, we want to thank William M. Arvin, who has retired from the board after sixteen years as a director of your company. He has served on our Compensation, Audit, Wealth Management, Loan, and Strategic Planning Committees. His leadership and contributions have been significant in helping us grow in a profitable manner. 2 L026273insidepages_Layout 1 3/26/13 8:27 AM Page 3 In that same report we indicated that, because of our strong balance sheet and the financial success we have enjoyed, there would be opportunities for both organic and acquisitive growth. We are pleased to announce that the board approved management to apply for regulatory approval to expand into Lexington and Fayette County. We submitted our application with the FDIC on February 25, 2013 and have recently received regulatory approval. The Lexington office will be located in downtown Lexington and, barring any delays, our intent is to be open by the middle of May. We are also pleased to announce that, for the second year in a row, your company was recognized by the Kentucky Chamber of Commerce and the Kentucky Society for Human Resource Management as one of the Best Places to work in Kentucky. This designation continues to reflect the quality of people that make up Kentucky Bank. We are pleased also to note that the market value of your stock has increased since the end of the year. Additionally, the board and management are pleased to be able to increase the quarterly dividend to 24 cents per share, up from 23 cents over the previous quarter, for those shareholders as of Record on March 20, 2013. With our financial success and growth in 2012, our prospects for continued growth, combined with the high quality of people that represent us, point toward a future that is indeed bright. Certainly there are challenges that face our industry, but we believe that Kentucky Bank is in a position to grow and prosper to meet those challenges. As always, we appreciate your interest and support. Louis Prichard President and CEO 3 O RRR KKKKK III NN C E NN III MMMMM BBBBBB LLL AAAA TTTT IIIII OOOOO NNNN P E RRR SSSSS C O N V E N I E N C E N I M B L E S L E EE KK C O M M U N I C A T I O N P E R S O N A L M O B I L E C OO NN N EE CC TT EE DD A C C E S S I B L E L O C A L N E T W O R K I N D I S P E N S I B L E C O N V E N I E N C E N II MM B L EE S L E E K C O M M UU N II C A T I ON P E R S O N A L M O B I L E CC O N N E C T ED A C C E S S I B L E E C T E DD AA C C E S S I B L E L O CC AA L N E T W O R K I N D I S P E N S I B L E SS PPPPP EEEEEE NNNNNNN SSS I B L E C O N V E N I E N C E N I M B L E LLLL EEEEEE E K P E R S O N A L AAAAA LL M U N I C AAA C OO MM M M O B I L E A C C E S S I B L E EEE AA CCCC CCCCC E S SSSSS II L E CC OOOOOOO NNNNNN L O C A L N E T W O R K OOO RRR KKK L NNN EE TTT WWWW OOOO C O N V E N I E N C E N I M B L E C E NNN IIIIII MMMMMM E N I E N AAAAA TTTT I OO N PP EEEEE M U NNN IIII CCCC AAAA C OO M M M O B I L E EEE CCCCC TTTTTTT EEEEEE DD A C CC EEEE LLLLL EEEEEE CCCCCCCCC OOOO NNN NN E CC TTT EEEEEE DDDD A C C EEEEE M O B I LLLLL L O C A L N E T W O R K L N EE TT W O R K I NN DDDDD IIIIIIII SSSSSSS P EE NNNNNNN L OO CCCCCCCC AAAAAAA LL C O N V E N I E N C E N I M B L E EEEEE NNN III EEEE NNNNN CCCCCCC EEEEEE NNN I M BBB LLLLLLLL EE SSSS LLLLL EE EE KK CCC OOOOOO NNNNNNN VVVVVVV C O M M U N I C A T I O N P E R S O N A L M U N I C A T II OOOOOOO NNNN P E RRRRR SS OO NN AA LL CCCC OOOO M M U N I C A T I OOOO NNNNNN P E RRR SSS OOO NNN AAA LLL M O B I L E A C C E S S I B L E M O B I L E C OO NN N E CT E DD AAAAAAA CCCCC C E S SS II BB LL EE L O C A L N E T W O R K L O C A L N E T W O R K II NN DD I SSSSS PPPPPPPP EEEEE NNNNN SSSSS IIIII BBBBB LLLLL EEEEE C O N V E N I E N C E N I M B L E S L E E KK C O N V E N I E N C E N I M B LL EE S L E EE KKK C O M M U N I C A T I O N P E R S O N A L P E R S O N A L NNNNN A LLLL A C C E S S I B L E BBB LL E LLL EE EEEEE NNNNNN S II BBBBBB LLLLLL E EEEEEEE L026273insidepages_Layout 1 3/26/13 8:27 AM Page 4 Our Customers: “STRONG LEADERSHIP AND SOUND BUSINESS PRACTICES AFFORD US THE OPPORTUNITY TO RISE ABOVE EVERY CHALLENGE.” - Louis Prichard Over 30,000 customers call Kentucky Bank Home! It is important to us that, alongside a full suite of electronic banking options, we deliver the high level of personal service our customers have come to expect since 1851. We asked some of our customers to share how Kentucky Bank has helped them achieve their financial goals. JIM FRIESS LAURA AND VICTOR TORRES Claiborne Farm is one of the world’s premier horse farms. Jim Friess, Chief Financial Officer at Claiborne, is accustomed to dealing with professionals and champions. He expects no less when it comes to banking. Jim Friess shares his experience. “Kentucky Bank and Claiborne Farm have enjoyed a very long relationship; the people at Kentucky Bank make my job easier! With a quick call I can accomplish what I need, there is no red tape. Kentucky Bank’s staff has the expertise to handle all kinds of complex banking. Their team is first-rate when it comes to customer service and they handle our business and personal banking like true professionals. We have utilized just about every service Kentucky Bank offers: Wealth Management, deposits, loans, remote deposit capture, ACH, payroll, employee 401(k) plans, wires, and even their program that offers our employees special banking benefits. Kentucky Bank is also a great member of the community.” Gabe, Lance, Laura, Lena, Joe and Victor Torres There is never a dull moment with two veterinarians, four children, and a farm with resident dogs, cats, horses, chickens, and a goat. The Torres family certainly knows animals; they needed a bank that knew banking and that would help them with their financial plans. Laura explained, “We have moved around a lot and wanted a friendly bank that could handle all of our needs. Having an experienced banker and direct access to the decision makers, is a huge advantage in working with a bank. What impressed us most about Kentucky Bank is that they took the time to get to know us. We love the convenience of having everything in one place. Kentucky Bank helps us with everything - business and rental accounts, farm loans, CDs, and all the kids have their own savings accounts, too. We use online banking and we even have a scanner to make deposits by remote capture when it is not convenient to go to the bank to deposit checks for our business. Kentucky Bank is the bank we call home!” 4 L026273insidepages_Layout 1 3/26/13 8:27 AM Page 5 ALONZO AND TONYA ALLEN DONALD SMOTHERS As experienced home buyers Alonzo and Tonya Allen know how important professionalism and service are when working through the mortgage process. Tonya and Alonzo told us about their mortgage experiences. “When we got our first mortgage in 1989 we were nervous, we had never taken out a loan. Kentucky Bank was great to work with and they took very good care of us. Over the years we have gotten into the rental home business and dealt with a few other banks in the mortgage process, but they just did not offer the care and hometown feel that Kentucky Bank gives us. When we called the other banks we would talk to a different person each time; we want to talk to someone who knows our business. The staff at Kentucky Bank provided outstanding service by researching answers to my questions concerning lines of credit, escrow accounts, and mortgage options. We recently consolidated all of our mortgages to Kentucky Bank, their responsiveness is unsurpassed.” The Allens have such confidence in Kentucky Bank that they have also referred their friends. J. Donald Smothers is Vice President of Financial Services & Chief Financial Officer of Blue Grass Energy, which serves more than 55,000 customers in 23 Kentucky counties. He needs a bank he can count on. “Kentucky Bank and Blue Grass Energy enjoy a very good working relationship. Kentucky Bank has the expertise to provide all types of banking solutions. They have been excellent when it comes to customer service and are helpful and professional in accommodating our requests. We truly depend on Kentucky Bank for our banking in all areas. Kentucky Bank is a great asset to the communities that we serve and we hope to continue this excellent working relationship into the future.” “WHEN YOU FIND SOMETHING THAT WORKS, YOU STICK WITH IT. KENTUCKY BANK - A GREAT PLACE TO START, A GREAT PLACE TO STAY.” - Colonel George Shackleford Robinson COLONEL GEORGE SHACKLEFORD ROBINSON “In 1951, when I was five years old, my mother opened a passbook savings account for me at the Bourbon Agricultural Deposit Bank and Trust Company in Paris, Kentucky. In the sixty-two years since then, I have lived in four countries, eight states, and spent more than eighteen years overseas. I have spent 27 years on Active Duty with the United States Army. Throughout those six decades, my family and I have had accounts at that bank, now Kentucky Bank, and it has always served us well. “Kentucky Bank may be a hometown bank, but it has an international reach. Whether I’m in Paris, Kentucky or Paris, France, I can always depend on Kentucky Bank to provide me with the banking services I need. The thing that makes Kentucky Bank the best in the business is its personal service, its responsiveness, its careful and concerned management, and its fair and equitable practices and policies. I have the greatest confidence in their state-of-the-art security procedures and privacy policies for their on-line banking services. Kentucky Bank is there for you when you need them; always on time and on target. It is a rock-solid institution and I am totally pleased with my bank and the way they treat me. When you find something that works, you stick with it. Kentucky Bank – a Great Place to Start, a Great Place to Stay. “ 5 L026273insidepages_Layout 1 3/26/13 8:27 AM Page 6 Board of Directors Buckner Woodford IV Chairman, Kentucky Bancshares, Inc., Kentucky Bank Louis Prichard President, CEO, Kentucky Bancshares, Inc. Kentucky Bank William M. Arvin Attorney, Law Offices of William Miles Arvin B. Proctor Caudill, Jr. Special Projects Manager, Kentucky Bank Henry Hinkle Senior Vice-President, Hinkle Contracting Company, LLC Theodore Kuster CEO, Hillside Farm/Shawhan Place, LLC Betty J. Long Retired President, First Federal Savings of Cynthiana Ted McClain President, Hopewell Insurance Company Edwin S. Saunier President, Saunier North American, Inc. Robert G. Thompson Farmer, Thoroughbred Breeder, Snowhill Farm Woodford Van Meter Professor of Ophthalmology, University of Kentucky REGIONAL DIRECTORS Betty J. Long Retired President First Federal Savings of Cynthiana Ryan Quarles Kentucky House of Representatives Attorney, Farmer BOURBON REGION Proctor W. Blair Partner Ludwig, Blair and Bush, PLLC Lonnie Conley Co-owner, Paris Machining Allyson Eads Co-owner, Eads Hardware Rodes Shackelford Parrish President The Clay Ward Agency, LLC Bobby L. Shiflet Owner, Frames on Main CLARK REGION Brad Marshall Farmer, Former Owner, Marshall’s Tractor Supply Joel Techau CEO, Techau, Inc. Gerry Whalen Appraiser, Broker Whalen and Company JESSAMINE REGION William M. Arvin Attorney Law Offices of William Miles Arvin Mary Beth Hendricks Owner, Beech Springs Garden Barn and Beech Springs Farm Market Dr. Michael R. Bishop Michael R. Bishop, DMD, and Associates, PSC Donald Pace Retired Executive Director Central Kentucky Educational Co-op with UK John G. Roche John G. Roche Opticians, Inc. Edwin S. Saunier President Saunier North American, Inc. Kevin E. Welsh Manager, Alltech Winchester Operations HARRISON REGION K. Bruce Florence Branch Campus Director Maysville Community and Technical College, Licking Valley Campus and Kiser Center Tom Buford Kentucky State Senator Eva McDaniel Jessamine County Clerk Jonah Mitchell President Jonah Mitchell Real Estate and Auction SCOTT REGION Dr. Gus Bynum Family Physician Mike Hockensmith Owner and President The Hockensmith Agency, Inc. Katy Prather Realtor, Keller Williams Bluegrass Realty 6 WOODFORD REGION Tommy Haggard CEO, Bluegrass Community Hospital James Kay Businessman, Farmer Tricia N. Kittinger Retired Circuit Clerk Woodford County Carolyn H. McDonald Realtor, Rector Hayden Realtors EAST KENTUCKY REGION Rocky Adkins Majority Floor Leader House of Representatives Trent Hamilton Owner, Hamilton, Inc. G.R. (Sonny) Jones VP, CFO St. Claire Regional Medical Center William H. Redwine AVP, Auxiliary Services Morehead State University Aaron S. Roberts Owner, Best One Tire Madonna Weathers VP, Student Life Morehead State University O RRR KKKKK III NN C E NN III MMMMM BBBBBB LLL AAAA TTTT IIIII OOOOO NNNN P E RRR SSSSS C O N V E N I E N C E N I M B L E S L E EE KK C O M M U N I C A T I O N P E R S O N A L M O B I L E C OO NN N EE CC TT EE DD A C C E S S I B L E L O C A L N E T W O R K I N D I S P E N S I B L E C O N V E N I E N C E N II MM B L EE S L E E K C O M M UU N II C A T I ON P E R S O N A L M O B I L E CC O N N E C T ED A C C E S S I B L E E C T E DD AA C C E S S I B L E L O CC AA L N E T W O R K I N D I S P E N S I B L E SS PPPPP EEEEEE NNNNNNN SSS I B L E C O N V E N I E N C E N I M B L E LLLL EEEEEE E K P E R S O N A L AAAAA LL M U N I C AAA C OO MM M M O B I L E A C C E S S I B L E EEE AA CCCC CCCCC E S SSSSS II L E CC OOOOOOO NNNNNN L O C A L N E T W O R K OOO RRR KKK L NNN EE TTT WWWW OOOO C O N V E N I E N C E N I M B L E C E NNN IIIIII MMMMMM E N I E N AAAAA TTTT I OO N PP EEEEE M U NNN IIII CCCC AAAA C OO M M M O B I L E EEE CCCCC TTTTTTT EEEEEE DD A C CC EEEE LLLLL EEEEEE CCCCCCCCC OOOO NNN NN E CC TTT EEEEEE DDDD A C C EEEEE M O B I LLLLL L O C A L N E T W O R K L N EE TT W O R K I NN DDDDD IIIIIIII SSSSSSS P EE NNNNNNN L OO CCCCCCCC AAAAAAA LL C O N V E N I E N C E N I M B L E EEEEE NNN III EEEE NNNNN CCCCCCC EEEEEE NNN I M BBB LLLLLLLL EE SSSS LLLLL EE EE KK CCC OOOOOO NNNNNNN VVVVVVV C O M M U N I C A T I O N P E R S O N A L M U N I C A T II OOOOOOO NNNN P E RRRRR SS OO NN AA LL CCCC OOOO M M U N I C A T I OOOO NNNNNN P E RRR SSS OOO NNN AAA LLL M O B I L E A C C E S S I B L E M O B I L E C OO NN N E CT E DD AAAAAAA CCCCC C E S SS II BB LL EE L O C A L N E T W O R K L O C A L N E T W O R K II NN DD I SSSSS PPPPPPPP EEEEE NNNNN SSSSS IIIII BBBBB LLLLL EEEEE C O N V E N I E N C E N I M B L E S L E E KK C O N V E N I E N C E N I M B LL EE S L E EE KKK C O M M U N I C A T I O N P E R S O N A L P E R S O N A L NNNNN A LLLL A C C E S S I B L E BBB LL E LLL EE EEEEE NNNNNN S II BBBBBB LLLLLL E EEEEEEE L026273insidepages_Layout 1 3/26/13 8:27 AM Page 7 Leadership Team Senior Management Louis Prichard President and Chief Executive Officer Norman J. Fryman EVP, Chief Credit Officer James Braden SVP, Chief Administrative Officer Brenda Bragonier SVP, Director of Marketing Carol Caskey SVP, Director of Human Resources Gregory J. Dawson SVP, Chief Financial Officer William Hough SVP, Director of Sales and Service Clark Nyberg SVP, Director of Wealth Management Martha Woodford SVP, Director of Operations “LEADERSHIP IS NOT A TERM WE LIMIT TO OUR BOARD OF DIRECTORS AND SENIOR MANAGEMENT. WE EXPECT LEADERSHIP FROM OUR MARKET PRESIDENTS AND MANAGERS.” - Louis Prichard Accounting Gregory Dawson, SVP, Chief Financial Officer Brenda Berry, AVP, Senior Accountant Brandon Gilliam, AVP, Controller Janice Hash, AVP, Senior Accountant/Purchasing Agent Commercial Lending Darren Henry, VP, Director of Commercial Lending Benjamin Caudill, VP, Commercial Lender Ken Devasher, VP, Commercial Lender Shane 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 Manager/Senior Credit Analyst Patricia Wilson, Direct Endorsement Underwriter Human Resources Carol Caskey, SVP, Director of Human Resources Deanna Foley, Human Resources Supervisor Carol Raskin, AVP, Director of Education and Development Marketing Brenda Bragonier, SVP, Director of Marketing Carol Norton, Corporate Services Manager Operations Martha Woodford, SVP, Director of Operations Karen Anderson, AVP, Exception Item and Data Officer Melinda Biddle, Bank Support Specialist Dixie Fite, AVP, Quality Control Officer Eric Hash, Manager of Electronic Services Jeffrey Lehmann, AVP, Mortgage Servicing Manager James B. Sumpter, Senior Software Administrator Wanda Thomas, AVP, Product Development Manager Risk Management James Braden, SVP, Chief Administrative Officer Lydia Sosby, VP, Compliance Officer Sherry Griffith, AVP, Bank Secrecy Act/Security Officer Wealth Management Clark Nyberg, SVP, Director of Wealth Management James Elliott, SVP, Wealth Management James Gray, Investment Advisor Jason Gresham, VP, Business Development/Trust Officer Chad Kobes, Investment Advisor Janice Worth, VP, Senior Trust Officer Regions William Hough, SVP, Director of Sales and Service Bourbon Region Nancye Fightmaster, Market President Wallis Brooks, AVP, Branch Manager/CRA Officer Rhonda Franklin, AVP, Small Business/Mortgage Lender Benson Fryman, AVP, Small Business/Mortgage Lender Clark Region Darryl Terry, Market President Christopher J. LeMaster, AVP, Small Business/ Mortgage Lender Agnes Newkirk, AVP, Small Business/Mortgage Lender Teresa Shimfessel, AVP, Branch Manager, Consumer Lender Elliott Region Sherry Mathis, Market President Harrison Region Pamela Slone, Market President Allen Johnson, AVP, Small Business/Mortgage Lender Jessamine Region Brandon Eason, Market President Michael Foley, VP, Commercial Lender Teague Sims, AVP, Small Business/Mortgage Lender Rowan Region Jeremy Brown, Market President Benjamin Caudill, VP, Commercial Lender Connie Ingram, AVP, Small Business/Mortgage Lender Tom James, AVP, Small Business/Mortgage Lender Scott Region Mark Sulski, Market President Karin Buchanan, AVP Small Business/Mortgage Lender Woodford Region Duncan Gardiner, Market President Jeremy Gray, AVP Small Business/Mortgage Lender 7 O RRR KKKKK III NN C E NN III MMMMM BBBBBB LLL AAAA TTTT IIIII OOOOO NNNN P E RRR SSSSS C O N V E N I E N C E N I M B L E S L E EE KK C O M M U N I C A T I O N P E R S O N A L M O B I L E C OO NN N EE CC TT EE DD A C C E S S I B L E L O C A L N E T W O R K I N D I S P E N S I B L E C O N V E N I E N C E N II MM B L EE S L E E K C O M M UU N II C A T I ON P E R S O N A L M O B I L E CC O N N E C T ED A C C E S S I B L E E C T E DD AA C C E S S I B L E L O CC AA L N E T W O R K I N D I S P E N S I B L E SS PPPPP EEEEEE NNNNNNN SSS I B L E C O N V E N I E N C E N I M B L E LLLL EEEEEE E K P E R S O N A L AAAAA LL M U N I C AAA C OO MM M M O B I L E A C C E S S I B L E EEE AA CCCC CCCCC E S SSSSS II L E CC OOOOOOO NNNNNN L O C A L N E T W O R K OOO RRR KKK L NNN EE TTT WWWW OOOO C O N V E N I E N C E N I M B L E C E NNN IIIIII MMMMMM E N I E N AAAAA TTTT I OO N PP EEEEE M U NNN IIII CCCC AAAA C OO M M M O B I L E EEE CCCCC TTTTTTT EEEEEE DD A C CC EEEE LLLLL EEEEEE CCCCCCCCC OOOO NNN NN E CC TTT EEEEEE DDDD A C C EEEEE M O B I LLLLL L O C A L N E T W O R K L N EE TT W O R K I NN DDDDD IIIIIIII SSSSSSS P EE NNNNNNN L OO CCCCCCCC AAAAAAA LL C O N V E N I E N C E N I M B L E EEEEE NNN III EEEE NNNNN CCCCCCC EEEEEE NNN I M BBB LLLLLLLL EE SSSS LLLLL EE EE KK CCC OOOOOO NNNNNNN VVVVVVV C O M M U N I C A T I O N P E R S O N A L M U N I C A T II OOOOOOO NNNN P E RRRRR SS OO NN AA LL CCCC OOOO M M U N I C A T I OOOO NNNNNN P E RRR SSS OOO NNN AAA LLL M O B I L E A C C E S S I B L E M O B I L E C OO NN N E CT E DD AAAAAAA CCCCC C E S SS II BB LL EE L O C A L N E T W O R K L O C A L N E T W O R K II NN DD I SSSSS PPPPPPPP EEEEE NNNNN SSSSS IIIII BBBBB LLLLL EEEEE C O N V E N I E N C E N I M B L E S L E E KK C O N V E N I E N C E N I M B LL EE S L E EE KKK C O M M U N I C A T I O N P E R S O N A L P E R S O N A L NNNNN A LLLL A C C E S S I B L E BBB LL E LLL EE EEEEE NNNNNN S II BBBBBB LLLLLL E EEEEEEE L026273insidepages_Layout 1 3/26/13 8:27 AM Page 8 Office Locations CUSTOMER SERVICE NUMBER 800-467-1939 JESSAMINE REGION BOURBON REGION Bourbon Banking Center 401 Main Street Paris, KY 40361 Lexington Road Office 2021 S. Main Street Paris, KY 40361 859-987-1795 859-987-1795 Wealth Management & Administration 339 Main Street Paris, KY 40361 800-467-1939 CLARK REGION Colby Road Office 1975 Bypass Road Winchester, KY 40391 Winchester Main Office 24 W. Lexington Avenue Winchester, KY 40391 ELLIOTT REGION Sandy Hook Office Main and Jane Streets Sandy Hook, KY 41171 FAYETTE REGION 859-744-3825 859-744-1632 606-738-5163 Coming May 2013 800-467-1939 HARRISON REGION Cynthiana US 27 Office 939 US Hwy. 27 South Cynthiana, KY 41031 859-234-3363 Nicholasville Office 920 N. Main Street Nicholasville, KY 40356 Wilmore Office 108 E. Main Street Wilmore, KY 40390 ROWAN REGION Morehead Downtown Office 400 W. First Street Morehead, KY 40351 Flemingsburg Road Office 1500 Flemingsburg Road Morehead, KY 40351 SCOTT REGION Cherry Blossom Office 260 Blossom Park Drive Georgetown, KY 40324 Showalter Office 103 W. Showalter Drive Georgetown, KY 40324 WOODFORD REGION 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 8 O RRR KKKKK III NN C E NN III MMMMM BBBBBB LLL AAAA TTTT IIIII OOOOO NNNN P E RRR SSSSS C O N V E N I E N C E N I M B L E S L E EE KK C O M M U N I C A T I O N P E R S O N A L M O B I L E C OO NN N EE CC TT EE DD A C C E S S I B L E L O C A L N E T W O R K I N D I S P E N S I B L E C O N V E N I E N C E N II MM B L EE S L E E K C O M M UU N II C A T I ON P E R S O N A L M O B I L E CC O N N E C T ED A C C E S S I B L E E C T E DD AA C C E S S I B L E L O CC AA L N E T W O R K I N D I S P E N S I B L E SS PPPPP EEEEEE NNNNNNN SSS I B L E C O N V E N I E N C E N I M B L E LLLL EEEEEE E K P E R S O N A L AAAAA LL M U N I C AAA C OO MM M M O B I L E A C C E S S I B L E EEE AA CCCC CCCCC E S SSSSS II L E CC OOOOOOO NNNNNN L O C A L N E T W O R K OOO RRR KKK L NNN EE TTT WWWW OOOO C O N V E N I E N C E N I M B L E C E NNN IIIIII MMMMMM E N I E N AAAAA TTTT I OO N PP EEEEE M U NNN IIII CCCC AAAA C OO M M M O B I L E EEE CCCCC TTTTTTT EEEEEE DD A C CC EEEE LLLLL EEEEEE CCCCCCCCC OOOO NNN NN E CC TTT EEEEEE DDDD A C C EEEEE M O B I LLLLL L O C A L N E T W O R K L N EE TT W O R K I NN DDDDD IIIIIIII SSSSSSS P EE NNNNNNN L OO CCCCCCCC AAAAAAA LL C O N V E N I E N C E N I M B L E EEEEE NNN III EEEE NNNNN CCCCCCC EEEEEE NNN I M BBB LLLLLLLL EE SSSS LLLLL EE EE KK CCC OOOOOO NNNNNNN VVVVVVV C O M M U N I C A T I O N P E R S O N A L M U N I C A T II OOOOOOO NNNN P E RRRRR SS OO NN AA LL CCCC OOOO M M U N I C A T I OOOO NNNNNN P E RRR SSS OOO NNN AAA LLL M O B I L E A C C E S S I B L E M O B I L E C OO NN N E CT E DD AAAAAAA CCCCC C E S SS II BB LL EE L O C A L N E T W O R K L O C A L N E T W O R K II NN DD I SSSSS PPPPPPPP EEEEE NNNNN SSSSS IIIII BBBBB LLLLL EEEEE C O N V E N I E N C E N I M B L E S L E E KK C O N V E N I E N C E N I M B LL EE S L E EE KKK C O M M U N I C A T I O N P E R S O N A L P E R S O N A L NNNNN A LLLL A C C E S S I B L E BBB LL E LLL EE EEEEE NNNNNN S II BBBBBB LLLLLL E EEEEEEE 2012 inside cover_Layout 1 3/27/13 10:55 AM Page 1 2012 Ky Bank-RD2 copy.pdf 1 3/27/13 9:43 AM C M Y CM MY CY CMY K Kentucky Bancshares, Inc. P.O. Box 157 Paris, KY 40362-0157 www.kybank.com 800-467-1939 KENTUCKY BANCSHARES, INC. 2012 ANNUAL REPORT