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): January 27, 2021

KENTUCKY BANCSHARES, INC.

(Exact Name of Registrant as specified in its Charter)

Kentucky	000-52598	61-0993464
(State or other	(Commission	(IRS Employer
jurisdiction of incorporation)	File Number)	Identification No.)

P.O. Box 157, Paris, Kentucky
(Address of principal executive offices) 40362-0157
(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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	KTYB	OTCQX

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

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 fourth quarter of 2020 on or about February 15, 2021. A copy of this mailing is attached as Exhibit 99.1.

The information in this Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing of the Registrant under the Securities Act of 1933, as amended, of the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d)Exhibits

Exhibit No. Description

99.1 Release dated January 27, 2021 of quarterly financial information as of December 31, 2020.

104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

2

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.

3

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.

April
	KENTUCKY BANCSHARES, INC.
Date: January 27, 2021	By	/s/ Gregory J. Dawson
		Gregory J. Dawson
		Chief Financial Officer

4

EX-99.1

Exhibit 99.1

January 27, 2021

Earnings Report – December 31, 2020

Record Assets

Dear Shareholders:

We are pleased to announce record assets for your company.  Total assets were $1.2 billion as of December 31, 2020 compared to $1.1 billion as of December 31, 2019.  Year-to-date net income was $11.7 million for the period ending December 31, 2020 compared to $13.2 million for the period ending December 31, 2019.  Year-to-date diluted earnings per share was $1.97 and $2.21, for December 31, 2020 and 2019, respectively.

The change in year-to-date net income from prior year was impacted by the following factors:  a decrease in net interest income primarily due to lower interest rates, higher provision for loan loss expense due to qualitative factors for COVID-19 and one specifically reserved loan, higher non-interest income lifted by gains on secondary market loan sales, and an increase in non-interest expense driven by compensation expense.  The increase in the balance sheet was due to higher investment securities and higher loans which were led by Paycheck Protection Program (“PPP”) loans.  The increase in securities and loans were funded by higher deposits.

As we look back on 2020, we have accomplished a great deal.  We opened two new branches in Lexington, navigated untold challenges due to COVID, and managed to support our small business customers through PPP loans and loan deferrals, all while continuing to provide Premier Customer Service.  As we look forward to 2021 and beyond, we believe we are incredibly well positioned for continued growth.  

As always, thank you for your continued support.

/s/Louis Prichard

Louis Prichard

President, CEO

UNAUDITED

CONSOLIDATED BALANCE SHEET

(in thousands)

					Percentage
	12/31/2020		12/31/2019		Change
Assets
Cash & Due From Banks	$	38,579	$	21,922	76.0	%
Federal Funds Sold		395		260	51.9
Interest Bearing Time Deposits		2,470		2,375	4.0
Securities		353,494		265,330	33.2
Loans Held for Sale		4,427		2,144	106.5
Loans		766,871		744,313	3.0
Reserve for Loan Losses		9,897		8,460	17.0
Net Loans		756,974		735,853	2.9
Bank Owned Life Insurance		18,713		18,165	3.0
Other Assets		64,453		64,741	(0.4)
Total Assets	$	1,239,505	$	1,110,790	11.6	%
Liabilities & Stockholders' Equity
Deposits
Demand	$	313,285	$	235,268	33.2	%
Savings & Interest Checking		494,928		395,680	25.1
Certificates of Deposit		170,391		211,705	(19.5)
Total Deposits		978,604		842,653	16.1
Repurchase Agreements		9,129		5,994	52.3
Other Borrowed Funds		103,749		123,635	(16.1)
Other Liabilities		19,681		19,245	2.3
Total Liabilities		1,111,163		991,527	12.1
Stockholders' Equity		128,342		119,263	7.6
Total Liabilities & Stockholders' Equity	$	1,239,505	$	1,110,790	11.6	%

CONSOLIDATED INCOME STATEMENT

(in thousands)

	Years Ending								Three Months Ending
							Percentage								Percentage
	12/31/2020			12/31/2019			Change		12/31/2020			12/31/2019			Change
Interest Income	$	42,685		$	45,532		(6.3)	%	$	10,488		$	11,481		(8.6)	%
Interest Expense		6,703			8,983		(25.4)			1,289			2,240		(42.5)
Net Interest Income		35,982			36,549		(1.6)			9,199			9,241		(0.5)
Loan Loss Provision		1,775			1,250		42.0			(100)			425		(123.5)
Net Interest Income After Provision		34,207			35,299		(3.1)			9,299			8,816		5.5
Other Income		15,975			14,239		12.2			4,269			3,844		11.1
Other Expenses		37,607			35,308		6.5			9,603			9,035		6.3
Income Before Taxes		12,575			14,230		(11.6)			3,965			3,625		9.4
Income Taxes		878			1,077		(18.5)			444			136		226.5
Net Income	$	11,697		$	13,153		(11.1)	%	$	3,521		$	3,489		0.9	%
Selected Ratios
Return on Average Assets		0.97	%		1.20	%				1.16	%		1.24	%
Return on Average Equity		9.54			11.52					11.22			11.82
Earnings Per Share	$	1.97		$	2.21				$	0.59		$	0.59
Earnings Per Share - assuming dilution		1.97			2.21					0.59			0.59
Cash Dividends Per Share		0.72			0.68					0.18			0.17
Book Value Per Share		21.58			20.17
Tangible Book Value Per Share		19.22			17.78

Market Price	High		Low		Close
Fourth Quarter '20	$	20.70	$	15.75	$	20.70
Third Quarter '20	$	17.00	$	15.83	$	16.10

XML

Document and Entity Information	Jan. 27, 2021
Document and Entity Information
Entity Registrant Name	KENTUCKY BANCSHARES INC /KY/
Entity Central Index Key	0001000232
Document Type	8-K
Document Period End Date	Jan. 27, 2021
Amendment Flag	false
Entity File Number	000-52598
Entity Tax Identification Number	61-0993464
City Area Code	859
Local Phone Number	987-1795
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Incorporation, State or Country Code	KY
Entity Address, Address Line One	P.O. Box 157
Entity Address, City or Town	Paris
Entity Address, Postal Zip Code	40362
Entity Address, State or Province	KY
Title of 12(g) Security	Common Shares
Trading Symbol	KTYB