Paris-based Kentucky Bank reported earnings for the third quarter of $1.37 million, or 51 cents per share, down 19.4 percent from the $1.70 million, or 63 cents per share, reported for the same quarter of 2012.
The decrease in quarterly earnings is primarily due to lower gains on investment sales and higher compensation expense, the bank said. The decline in investment gains is a result of increasing interest rates; the increase in compensation expense is due to the hiring of additional full-time employees in association with the bank's new Lexington branch and staffing for the loan and deposit growth.
Total assets were $741.4 million at Sept. 30, up 10.3 percent from Sept. 30, 2012. The increase in total assets was driven by a 15 percent increase in securities and a 9.2 percent increase in net loans, which were financed by a 6.1 percent increase in deposits and a 94.6 percent increase in other borrowing.
Kentucky Bank is seeking regulatory permission to establish a branch in Richmond. After that office opens, Kentucky Bank will have branches in Fayette County and all contiguous counties, in addition to branches in Cynthiana, Morehead and Sandy Hook.