Kentucky Bancshares Inc. (Kentucky) is a bank holding company. The Company conducts its business in the Commonwealth of Kentucky through one banking subsidiary, Kentucky Bank, and one non-bank subsidiary KBI Insurance Company. The Kentucky Bank is a commercial bank and trust company. The deposits of Kentucky Bank are insured up to prescribed limits by the Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Corporation (FDIC). Kentucky Bank is engaged in general full-service commercial and consumer banking. KBI Insurance Company is a captive insurance subsidiary. Kentucky Bank makes commercial, agricultural and real estate loans to its commercial customers, with emphasis on small-to-medium-sized industrial service and agricultural businesses. It also makes residential mortgage, instalment and other loans to its individual and other non-commercial customers. Nonaccrual loans secured by real estate make up 99.6% of the total nonaccruals at December 31, 2014.