2019 Journal of Community Bank Case Studies

Eastern Kentucky University

SECOND PLACE:

KY Bank Loans Outstanding (In Thousands) Breakdown

Loan Portfolio Composition Kentucky Bank has focused on providing commercial, agricultural, and real estate loans to its commercial customers while primarily emphasizing small-to- medium-sized industrial, service and agricultural businesses. Kentucky Bank has also remained a leading provider of consumer mortgage loans in Central Kentucky communities for the past five years. Approximately 81% of Kentucky Bank’s loans are secured by real estate as of December 2018. In 2016 alone, Kentucky Bank saw an increase of 16% in mortgage loans. This trend continued through 2017 and 2018. The UBPR shows Kentucky Banks 2018 Real Estate (Non-Farm and Non-Residential and 1-4 Family Residential) and Commercial Loans at an all-time high for the past five years with $555,890 and $54,267 respectively. The growth in 2018 Real Estate Loans was a 5.65% increase over the 2017 total of $526,148. Asset Growth Kentucky bank realized an increase in total assets and total earning assets in 2014-2018. Of the earning assets, net loans and leases increased by $146,151 from 2014 to 2018, and saw an annual increase in every year except 2017 (a slight decrease of $7,144 from 2016). Net loans and

$750K

$86,149 $90,954 $60,049

$80,070 $79,094 $59,176 $192,074

$77,436 $95,418 $62,491

$55,929 $86,997 $66,782

$600K

$47,185 $68,495 $71,345 $161,822

$450K

$196,674

$176,024

$183,692

$300K

Net Loans $150K

$253,797

$245,674

$231,479

$239,672

$190,357

$0

2018

2017

2016

2015

2014

Year

Commercial Other (Multi-Family Residential, Consumer, Real Estate Construction) Agriculture Non-Farm & Non-Residential 1-4 Family Residential

KY Bank 2018 Earning Assets

1% 0%

5%

6%

Net Loans and Leases US Treasury and Agency Securities Municipal Securities All Other Securities Interest-Bearing Bank Balances Fed Funds Sold and Resales

20%

68%

KY Bank & Peer Group Total Assets Growth Rates

14%

12%

10%

8%

6%

4%

Growth Rate

2%

0%

2014 10.91% 6.49%

2015 13.80% 6.34%

2016 5.30% 8.77%

2017 2.44% 9.52%

2018 3.10% 7.94%

KY Bank Peer Group

31