Kentucky Bancshares, Inc. INVESTOR PR ESE NTATION LOUIS PR IC HARD, PR ESIDENT JIM B R ADE N, SVP AND C AO AND C EO F E B R U A R Y 8 , 2 0 1 7 T R A D I N G S Y M B O L : K T Y B W W W. K Y B A N K . C O M

Cautionary Statement Regarding Forward-Looking Statements Statements in this presentation relating to Kentucky Bancshares, Inc. (“KTYB”, the “Company”, “we”, “our” or “us”) contain forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the federal securities laws. These statements are not historical facts, but rather statements based on our current expectations regarding our business strategies and their intended results and our future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends,” “estimates,” “potential,” “may,” and similar expressions. These forward-looking statement are based on management’s current expectations. KTYB cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements due to various risks and uncertainties. These and other risks and uncertainties are described in greater detail under “Risk Factors” in the From 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. Investors are cautioned that many of the assumptions upon which KTYB's forward-looking statements are based are likely to change after the forward-looking statements are made due to uncertainties KTYB cannot control. The forward-looking statements in this presentation are made as of the date of the release and the Company does not assume any responsibility to update these statements. 2

At a Glance Headquartered in Paris, Kentucky 12.31.16* Primary subsidiary is Kentucky Bank Kentucky Bank is a commercial bank offering standard business and retail banking services including trust and brokerage Roots date to 1851 and currently operate 17 locations predominantly within 30 miles of Lexington, Kentucky *Unaudited 3 Financial Highlights Total Assets $1.03 billion Total Net Loans $648.5 million Total Deposits $803.0 million EPS $2.87 Cash Dividend $1.08 ROAE 9.10% ROAA 0.86% NIM TE 3.62% NPAs 0.82%

Markets Served Kentucky Bank  17 locations serving 11 communities Serving every contiguous county to Lexington, KY which is the economic engine for Central Kentucky Morehead Serving the Morehead, KY market which is a regional economic engine for Eastern Kentucky Strategically located along the I-75 and I-64 corridors www.mapcustomizer.com 4

Branch Franchise ($000) (%) Source: www.snl.com 5 2016 Rank Institution (ST) Branches Dep. In Mkt.($000) Market Share Richmond-Berea, KY 1 Whitaker Bank Corp. of KY (KY) 11 306,640 24.85 2 Community Trust Bancorp Inc. (KY) 5 208,716 16.91 3 JPMorgan Chase & Co. (NY) 2 121,481 9.84 4 Rockcastle Bancorp Inc. (KY) 2 98,785 8.01 5 Kentucky Bancshares Inc. (KY) 3 98,002 7.94 6 Central Bancshares Inc. (KY) 2 86,323 7.00 7 U.S. Bancorp (MN) 4 70,402 5.71 8 PNC Financial Services Group (PA) 2 62,605 5.07 9 Cumberland Valley Finl Corp. (KY) 3 49,778 4.03 10 Citizens Guaranty Finl Corp. (KY) 3 40,330 3.27 Total For Institutions In Market 43 1,233,954 06.30.16 06.30.15 Street Address City State Deposits ($000) Deposits 401 Main St Paris KY 145,604 142,905 939 US Hwy 27 S Cynthiana KY 94,926 85,124 24 W Lexington Ave Winchester KY 62,620 83,267 520 Marsailles Rd Versailles KY 54,192 49,424 660 University Shopping Ctr Richmond KY 51,419 36,951 1001 Gibson Bay Dr Ste 101 Richmond KY 46,583 58,186 920 N Main St Nicholasville KY 46,352 51,052 260 Blossom Park Dr Georgetown KY 44,192 45,326 144 S KY 7 Sandy Hook KY 32,591 32,778 1500 Flemingsburg Rd Morehead KY 32,273 30,393 2021 Main St Paris KY 28,588 27,560 400 W First St Morehead KY 28,544 26,724 103 W Showalter Dr Georgetown KY 27,900 20,556 360 E Vine St Lexington KY 22,589 12,371 1975 Bypass Rd Winchester KY 20,786 21,034 108 E Main St Wilmore KY 13,245 12,830 724 W Main St Richmond KY 0 1 2016 Rank Institution (ST) Branches Dep. In Mkt.($000) Market Share (%) Lexington-Fayette, KY 1 Central Bancshares Inc. (KY) 19 1,555,220 16.55 2 JPMorgan Chase & Co. (NY) 17 1,389,972 14.79 3 Fifth Third Bancorp (OH) 13 1,113,570 11.85 4 PNC Financial Services Group (PA) 14 733,024 7.80 5 Traditional Bancorp. Inc. (KY) 7 676,261 7.20 6 Kentucky Bancshares Inc. (KY) 11 466,068 4.96 7 BB&T Corp. (NC) 8 439,697 4.68 8 Farmers Capital Bank Corp. (KY) 13 376,710 4.01 9 Community Trust Bancorp Inc. (KY) 11 367,275 3.91 10 Whitaker Bank Corp. of KY (KY) 8 308,175 3.28 Total For Institutions In Market 184 9,395,955

Expansion Timeline (De Novo & Purchases) 2013: De novo branch in Lexington 2006: Acquired Peoples Bank in Morehead $84 MM assets 2003: Acquired First Federal in Cynthiana $76 MM assets 2015: Acquired Madison Bank in Richmond $121 MM assets 2014: De novo branch in Richmond 6

Key Members of Management Team 7 Name Position Years of Banking Experience Years with Kentucky Bank Louis Prichard President and Chief Executive Officer 40 11 Norman Fryman EVP, Chief Credit Officer 45 45 Brenda Bragonier SVP, Director of Marketing 38 38 Jim Elliott SVP, Director of Wealth Management 32 5 Greg Dawson SVP, Chief Financial Officer 32 32 Chris Gorley SVP, Director of Operations 25 4 William Hough SVP, Director of Sales and Service 16 16 Jim Braden SVP, Chief Administrative Officer 15 6 Carol Caskey SVP, Director of Human Resources 7 5

Loan Portfolio Yield on Loans 7.00 6.00 5.00 4.00 3.00 2.00 1.00 - 5.88 5.71 5.57 5.15 4.82 4.68 4.62 2010 2011 2012 2013 2014 2015 2016* Source: www.snl.com *Unaudited 8 Total Net Loans ($000’s) 2010201120122013201420152016* 649,190 618,224 533,069 463,438 424,414 406,905 406,649

Deposits Jumbo Time 15% Demand Deps. Retail Time 10% NOW and ATS 8% MMDA and Savings 49% Cost of Int-bearing Deposits Cost of Funds 2 2.00 1.54 1.59 1.5 1.50 1 1.00 0.93 0.83 0.59 0.5 0.51 0.50 0.51 0.50 0.47 0.44 0.45 0.38 0.34 0.34 0 - 2010 2011 20122013 2014 2015 2016* 2010 2011 2012 2013 2014 2015 2016* *Unaudited Source: www.snl.com 9 Total Deposits ($000’s) 2010201120122013201420152016* 802,981 758,981 654,869 617,400 590,425 537,401 542,924

Kentucky is Centrally Located Primary Reasons for Expanding Business in Kentucky 1. Centrally Located – Kentucky is within a day’s drive of two-thirds of the U.S. population. 2. Logistical Solutions – Kentucky ranks 3rd in the nation in total air cargo shipments. 3. Value Proposition – Kentucky ranks 2nd lowest in the nation in cost of doing business according to CNBC. Source: Kentucky Cabinet for Economic Development www.thinkkentucky.com 10

Meaningful Employers in Our Markets Source: Kentucky Cabinet for Economic Development 11 Employment (Manufacturing & Service & Technology Firms Only) Company Est Employees Company Est Employees Toyota Motor Manufacturing Kentucky 8,100 McLane Cumberland 590 Lexmark International Inc. 2,100 Osram Sylvania 575 Xerox 1,800 3M 570 Hitachi Automotive Systems Americas Inc 1,450 Quad Graphics 535 Amazon.com 1,100 CMWA 500 Lockheed Martin 1,100 Innovative Mattress Solutions 500 Trane Lexington 800 Schneider Electric 500 Adient US LLC 785 Tempur Sealy International 475 Big Ass Solutions 770 Alltech Inc. 450 Link-Belt Construction Equipment Company 675 McKechnie Vehicle Components 390 Webasto Roof Systems Inc 655 Pepsi-Cola Bottling Co 370 Hyster-Yale Group Inc 650 Aichi Forge USA Inc. 350 Galls LLC 640 Yokohama Industries Americas Inc. 340 UPS 630 International Crankshaft Inc. 330 Ashland Consumer Markets (Valvoline) 620 IBM Global Services 310 SRG Global 590 Family Dollar Stores Inc. 300

Other Contributors in our Markets Medical Centers  Outlying communities may have small hospital or medical plaza Lexington and Morehead serve as major medical centers for Central and Eastern Kentucky Source: Kentucky Cabinet for Economic Development 12 Contributing Secondary Education Centers (Est Enrollment) Asbury University (Jessamine County) 1,900 Berea College (Madison County) 1,600 Asbury Theological Seminary (Jessamine County) 1,500 Georgetown College (Scott County) 1,300 Midway University (Woodford County) 1,100 Transylvania University (Fayette County) 1,000 Major Secondary Education Centers (Est Enrollment) University of Kentucky (Lexington) 29,200 Eastern Kentucky University (Richmond) 16,300 Morehead State University (Morehead) 11,100

History of Earnings Source: www.snl.com 13 *Unaudited Diluted Earnings Per Share ($) 2010201120122013201420152016* 2.87 2.59 2.60 2.40 2.15 2.09 1.81 Net Income ($000’s) 2010201120122013201420152016* 8,569 7,008 7,071 6,832 5,822 5,687 4,939

Historical Performance Source: www.snl.com 14 *Unaudited Net Interest Margin TE (%) 2010201120122013201420152016* 4.35 4.19 3.85 3.69 3.63 3.62 3.43 Return on Equity (%) 2010201120122013201420152016* 9.70 9.50 9.10 8.74 8.12 8.20 7.84 Return on Assets (%) 2010201120122013201420152016* 1.03 0.89 0.87 0.86 0.80 0.76 0.71

Earnings Allocation Source: www.snl.com *Unaudited 15 Dividends Per Share ($) 2010201120122013201420152016 1.08 1.04 1.00 0.96 0.92 0.88 0.84 Tangible Book Value Per Share ($) 2010201120122013201420152016* 26.50 24.97 23.77 22.19 20.27 19.96 17.14

Capital Adequacy 13.39 13.32 12.32 12.06 12.02 Source: www.snl.com *Unaudited 16 Capital Ratios (%) 14.65 14.0114.0913.90 13.1412.7513.0113.0512.78 2010201120122013201420152016* Tier 1 RatioTotal Capital RatioLeverage RatioTangible Common Equity 9.21 9.26 8.84 8.78 8.73 8.72 8.47 8.55 8.53 7.68 7.78 7.74 7.28 7.16

Asset Quality Stability Source: www.snl.com *Unaudited 17 NPA & Loans 90+ / Tangible Common Equity & LLR (%) 2010201120122013201420152016* 41.68 29.00 25.96 24.54 23.14 14.72 11.96 Non-Performing Assets / Total Assets (%) 2010201120122013201420152016* 3.17 2.63 2.34 2.03 1.72 1.12 0.82

Current Strategic Pursuits Increase core profitability through relationship driven loan growth Increase core profitability through efficiency improvements driven by streamlining operations and consolidating functions Increase core profitability through further diversification of non-interest income through conditionally free product offerings, expansion of wealth management services, and alignment of market opportunities Increase core profitability through further reduction of classified assets through loan and problem asset management 18

Investment Considerations Attractive price to tangible book and price to earnings measures History of earnings and asset growth History of dividend growth History of stable and disciplined expansion Meaningful market player in central and eastern Kentucky Willingness to consider both de novo and acquisitive growth strategies 19

Kentucky Bancshares, Inc. TR ADING SY MB OL: KTY B