Kentucky Bancshares, Inc. (Kentucky) is a bank holding company. The Company conducts its business in the Commonwealth of Kentucky through banking subsidiary, Kentucky Bank. 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 commercial and consumer banking. Nonaccrual loans secured by real estate make up 88.4% of the total nonaccruals at September 30, 2014. 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.