T H E B A N K E R S ’ B A N K O F K E N T U C K Y

Greek architecture has

always been revered for its

precision and excellence

of workmanship. Greeks strove for perfection and

carefully balanced the visual relationship of columns

to the other architectural elements in their structures.

Strong emphasis was placed on the unity of these

parts resulting in design principles or “orders.” The

columns used in the Bankers’ Bank of Kentucky logo are

of the Ionic Order, one of three basic orders of Greek

architecture. The column is a fitting symbol because it

symbolizes strength, support and stability, all important

characteristics for a bank. Bankers’ Bank of Kentucky –

a carefully designed organization that unifies its services

into a perfectly balanced whole.

3 Corporate Information4 Message From The CEO

5 Shareholder Information

6 Shareholders’ Equity

7 2015 Highlights

8 Executive Officers & Staff

9 Board of Directors

10 Assets Under Management

11 Credit Ratings/Financial Performance Ratios/

11 Regulation F Ratios

12 Net Income/Total Equity Capital

13 Statement of Condition

TABLE OF CONTENTS

CORPORATE INFORMATION

The Bankers’ Bank of Kentucky was founded in 1988 to

provide Correspondent Services exclusively to community

banks. It is owned and directed by its customers and

operates in Kentucky, Indiana, Tennessee and West Virginia.

The Bankers’ Bank is a State-Chartered, Federal Reserve

Member Institution headquartered in Frankfort, Kentucky.

3. TABLE OF CONTENTS

MESSAGE FROM THE CEO

Shareholders, Customers and Friends,

The year 2015 presented interesting challenges and rewards for your Bankers’ Bank. We initiated our planned Management Succession with John Clark becoming President of the Bank. I will continue as CEO for a two year period to provide for a smooth transition. We hired Derek Hetherington as Senior Vice President to bolster our management team. Derek joins us from a regional institution with a solid financial background and a commitment to our business model. The year’s earnings of $341,000 was slightly higher than 2014 earnings of $321,000. Total income was negatively affected by a significant decrease in loans outstanding at the beginning of the year due to payoffs and refinances.

Our ROA was actually lowered from .68% to .51% year over year due to the increase in our total assets. Assets under management, which includes off balance sheet items, rose from $337,869,000 to $469,675,000 at year end 2015. Our performance numbers again rank favorably among our peer banks. Asset quality remains strong with zero NPAs at year end. Our capital ratios (see page 11) are still the highest among the Bankers’ Banks nationwide. We added several new services during the year. We established a marketing partnership with Paycor, a leading provider of payroll and HR services. We also added service offerings with our long-time partner First Data. We will continue to seek quality products that will ensure the competitiveness of the Community Banks we serve. We will also endeavor to obtain the latest technology to ensure that our web-

based services and data security are at the highest levels. 2016 will bring additional challenges as our industry faces further consolidation. We will continue to focus on providing the best customer service in our markets. Additionally, providing quality loan participation opportunities to our customers will remain a priority. As always, we appreciate the privilege of serving your correspondent banking needs and welcome your feedback, ideas and suggestions. Our success, and yours, depends on vibrant banks serving our communities’ needs. Please join us at our annual meeting at the Frankfort Country Club, Frankfort, KY on June 13, 2016 at 10 a.m.

Warmest Regards,

William L. Fallon, CEO

ENDURANCE

4. TABLE OF CONTENTS

SHAREHOLDER INFORMATION

ANNUAL SHAREHOLDERS MEETING

The annual meeting of the Independent Community

Bancorp, Inc. will be held Monday, June 13, 2016.

SHAREHOLDER STOCK OWNERSHIP

CONFIRMATIONS

For confirmations of stock ownership please contact:

Kaylene Hicks, Assistant Vice President The Bankers’ Bank of Kentucky P.O. Box 713Frankfort, Kentucky 40602-0713

Email: khicks@bbky.comPhone: (800)248-3229

DIVIDENDS

Annual Cash Dividends are

declared by the Independent

Community Bancorp, Inc., and

are paid on a per share basis.

PRIVACY POLICY

The Privacy Policy of The

Bankers’ Bank of Kentucky

describes how we safeguard

our customer’s privacy.

For more information,

please visit our website

at www.bbky.com

5. TABLE OF CONTENTS

SHAREHOLDERS’ EQUITY

2015 2014

Shareholders Equity

Common Stock

Capital & Surplus

Retained Earnings

TOTAL SHAREHOLDERS EQUITY

6.

$498,000

$4,502,000

$7,808,000

$12,808,000

$498,000

$4,502,000

$7,467,000

$12,467,000

TABLE OF CONTENTS

2015 HIGHLIGHTS

The Bankers’ Bank of Kentucky

introduced several new partnerships

in 2015 to further enhance our

existing product suite.

 

The Bankers’ Bank in partnership

with First Data offers a full Merchant

Services product suite, including

CloverGo, Clover Station, and

Clover Mobile.

 

The Bankers’ Bank in partnership

with PayCor, Inc provides

Community Banks and their

Commercial Business Customers

Best in Class Payroll & Employee

Administration solutions.

 

The Bankers’ Bank in partnership

with Sellers Design provides

professionally designed Commercial

Business Marketing Brochures for

Community Banks.

7. TABLE OF CONTENTS

EXECUTIVE OFFICERS William L. Fallon, CEO

John B. Clark, PRESIDENT

CORRESPONDENT BANKINGLynn Ellis, FIRST VICE PRESIDENT Van Davidson, VICE PRESIDENT

Ralph Ising, VICE PRESIDENT

David Fletcher, VICE PRESIDENT

LOAN DEPARTMENT Derek Hetherington, SENIOR VICE PRESIDENT

Stephanie Oerther, ASSISTANT VICE PRESIDENT

Dede Johnson, LOAN ADMINISTRATIVE ASSISTANT

Ashley Brown, LOAN SUPPORT ASSOCIATE

OPERATIONS DEPARTMENT Becky Sisco, VICE PRESIDENT

Carol Brewer, OPERATIONS SUPERVISOR

Velta Riddle, CUSTOMER SERVICE REPRESENTATIVE

Janet Collins, CUSTOMER SERVICE REPRESENTATIVE

ADMINISTRATION Janice Smoot, CHIEF FINANCIAL OFFICER Kaylene Hicks, ASSISTANT VICE PRESIDENT Angel Hafley, ADMINISTRATIVE STAFF ASSISTANT

INVESTMENTS Scott Kimel, SENIOR VICE PRESIDENT Richard Robey, SENIOR VICE PRESIDENT

Todd Beers, INVESTMENT REPRESENTATIVE

Maria Wilke, CALLING OFFICER

WIRE TRANSFER DEPARTMENT Jeanne Kaye Hellard, WIRE OPERATOR

Heather Mackey, WIRE OPERATOR

MORTGAGE PROCESSING Jeanne Martin, VICE PRESIDENT

Missy Harrod, ASSISTANT VICE PRESIDENT

Beth Miller, MORTGAGE PROCESSOR

Michelle Nearhoof, MORTGAGE PROCESSOR

EXECUTIVE OFFICERS & STAFF

FOUNDATION

8. TABLE OF CONTENTS

BOARD OF DIRECTORS

Mr. William L. FallonTHE BANKERS’ BANK OF KENTUCKY

Mr. Chris Rodgers THE CITIZENS BANKHICKMAN, KENTUCKY

Mr. Mitchell Bennett FARMERS BANKHARDINSBURG, KENTUCKY

Ms. Kathy SamplesCITIZENS GUARANTY BANKRICHMOND, KENTUCKY

Mr. G. Michael Simpson CUMBERLAND SECURITY BANK SOMERSET, KENTUCKY

Mr. Melvin “Mac” GodbyLEXINGTON, KENTUCKY

Mr. Corey CraigCITIZENS BANKMOUNT VERNON, KENTUCKY

9.

Mr. C. K. StacyBANK OF THE MOUNTAINSWEST LIBERTY, KENTUCKY

Mr. Gary TraughberELKTON BANK & TRUSTELKTON, KENTUCKY

Mr. Randall SniderCOMMUNITY BANKPARKERSBURG, WEST VIRGINIA

Mr. Jon LawsonBANK OF OHIO COUNTYBEAVER DAM, KENTUCKY

Mr. Orson OliverTHE AL J. SCHNEIDER CO.LOUISVILLE, KENTUCKY

Mr. Billy BinghamLEWISBURG BANKING COMPANY LEWISBURG, KENTUCKY

TABLE OF CONTENTS

ASSETS UNDER MANAGEMENT

December 2015 December 2014

Total Assets $86,428,000.00 $85,025,000.00

Agent Fed Funds $383,247,000.00 $252,844,000.00

Total Assets

Under Management $469,675,000.00 $337,869,000.00

DEPENDABLE

10. TABLE OF CONTENTS

FINANCIAL PERFORMANCE RATIOS

DECEMBER 31, 2015 DECEMBER 31, 2014

Return of Average Assets 0.51% 0.68%

Net Interest Margin 2.86% 3.44%

Loans/Deposits 27.91% 37.86%

REGULATION F RATIOS

DECEMBER 31, 2015 DECEMBER 31, 2014

Leverage Ratio 15.96% 19.20%

Tier 1 Capital Ratio 45.75% 46.67%

Total Capital Ratio 46.77% 47.70%

11. TABLE OF CONTENTS

NET INCOME/TOTAL EQUITY CAPITAL

As of December 31, 2015

Net Income $341,000.00

Total Equity Capital $12,808,000.00

FORTITUDE

12. TABLE OF CONTENTS

ASSETSDue from BankNet LoansPremises & Fixed AssetsOther AssetsFederal Funds Sold

Total Assets

LIABILITIESDemand DepositsFed Funds PurchasedOther Liabilities

Total Liabilities

EQUITY CAPITALCommon StockSurplusUndivided Profits

Total Capital

TOTAL LIABILTIES & EQUITY CAPITAL

STATEMENT OF CONDITION

2015$49,109,000$20,010,000

$1,240,000 $1,300,000

$14,769,000

$86,428,000

$72,723,000$0

$897,000

$73,620,000

$498,000$4,502,000$7,808,000

$12,808,000

$86,428,000

2014$59,870,000$22,677,000

$1,313,000$1,165,000

$0.00

$85,025,000

$59,867,000$11,997,000

$694,000

$72,558,000

$498,000$4,502,000$7,467,000

$12,467,000

$85,025,000

13. TABLE OF CONTENTS

THE BANKERS’ BANKOF KENTUCKY

107 Progress Drive

Frankfort, KY 40601

800-248-3229

www.bbky.com