Monticello Bankshares, Inc. was established in 1982 to provide strength and oversight for its wholly owned subsidiary, the Monticello Banking Company (MBC). MBC is a Kentucky commercial bank chartered in 1895 with its corporate office located in Monticello. The bank has operated under the same name and at the same location since its inception. MBC operates nineteen full service community banking offices in eleven counties in Central and Southern Kentucky. MBC offers a wide range of banking and investment services which are provided through our branch offices and our growing internet presence. We would like the opportunity to serve all of your financial needs. Please call or visit our offices at your convenience and visit us online at www.mbcbank.com.

Shareholder Inquiries, Stock Transfer or Dividend Payments If you have inquiries or questions regarding your Monticello Bankshares shareholder account, please call Helen Dolen-Richardson at (606) 348-1202 or 1-800-909-3420 or write

Monticello Bankshares, Inc. • P.O. Box 421 • Monticello, KY 42633

InternetFor information on financial results, products and services please visit our website: www.mbcbank.com

Corporate HeadquartersMonticello Bankshares, Inc. • 50 N. Main St., P.O. Box 421

Monticello, Kentucky 42633 • (606) 348-8411 or 1-800-909-3420

Annual MeetingThe annual meeting of shareholders will be held on Thursday, April 9th, 2020 at the Historic Wayne Theater, 30 N. Main Street, Monticello, Kentucky at 3:30 p.m. EDT.

Dividend CalendarDividends, as declared by the Board of Directors, are customarily paid to shareholders of record as follows:March 1 – payable March 10 June 1 – payable June 10

September 1 – payable Sept. 10 December 1 – payable Dec. 10

Financial InformationFor a copy of our audit report, please contact Frances Watson,Sr. Vice President at (606) 348-8411 or 1-800-909-3420 or

email fwatson@mbcbank.com.

Independent AuditorsCrowe LLP, 9600 Brownsboro Road, Suite 400, Louisville, KY 40241 (502) 326-3996

shareholder informationcorporate profile

Our company had a vibrant 2019 with continued expansion in the Commonwealth of

Kentucky. MBC relocated into our newly completed office in Glasgow and opened

two new offices in the Bluegrass, 997 Governors Ln, Suite 125 in Lexington and 104

Springdale Dr in Nicholasville. We were pleased with the resulting growth in all three

of these markets. However, we did experience an office closure in Perryville but have

subsequently showed our support of the city by allowing them to utilize the facility

to provide vital local services. The established markets continue to have successful

performance and maintain MBC’s reputation as a community bank. To meet cus-

tomer demand, we continue to provide onsite service, while investing in technology

to offer mobile access and online convenience.

Please visit one of our nineteen locations or www.mbcbank.com to learn more about

our many products and services.

note to shareholders

shareholder information

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2015 2016 2017 2018 2019

1.09 1.06 1.06

1.37

1.01

Monticello Bankshares Inc.Return on Assets

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2015 2016 2017 2018 2019

10.38 10.59 10.14

12.31

9.36

Monticello Bankshares Inc.Return on Equity

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2015 2016 2017 2018 2019

5,997

7,469 7,415

9,733

7,603

Monticello Bankshares Inc.Net Income

500,000

550,000

600,000

650,000

700,000

750,000

2015 2016 2017 2018 2019

561,212

701,776 693,761

737,197 767,739

Monticello Bankshares Inc.Total Assets

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2015 2016 2017 2018 2019

1.55

1.80 1.79

2.35

1.88

Monticello Bankshares Inc.Earnings Per Share

12.00

14.00

16.00

18.00

20.00

22.00

2015 2016 2017 2018 2019

15.7716.60

18.16

19.41

21.38

Monticello Bankshares Inc.Book Value

financials

Assets

Cash and due from financial institutions

Interest bearing deposits in other financial institutions

Federal funds sold

Total Cash and Equivalents

Interest bearing time deposits in other financial institutions

Securities available-for-sale

Loans, net of allowance of $5,968 and $5,271

Restricted investments

Accrued interest receivable

Other real estate owned

Premises and equipment, net

Goodwill

Bank owned life insurance

Core deposit intangible

Other assets

Total Assets

Liabilities and Stockholders’ Equity

Non-interest bearing

Interest bearing

Total Deposits

Federal Home Loan Bank advances

Long term debt

Accrued interest payable

Other liabilities

Total Liabilities

Stockholders’ Equity

Preferred stock, $5 par value; 50,000 shares

authorized; 22,286 and 23,200 issued

in 2019 and 2018, respectively; 21,481 and 23,200

outstanding in 2019 and 2018 respectively

Common stock, $5 par value; 8,000,000

shares authorized; 4,273,077 and 4,269,163 issued in

2019 and 2018 respectively; 3,684,024 and 4,123,958

outstanding in 2019 and 2018, respectively

Additional paid-in capital

Retained earnings

Accumulated other comprehensive gain (loss) Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity

Statement of Financial ConditionConsolidated for the Year Ended December 31, 2019

(Dollar amounts in thousands except for per share data)

$ 6,246

23,806

1

30,053

992

97,777

584,225

4,755

2,939

1,349

20,256

1,000

18,755

1,242

4,396

$ 767,739

$ 55,373

588,053

643,426

37,742

4,800

560

1,977

688,505

107

18,420

734

58,570

1,403

79,234

$ 767,739

$ 4,812

18,724

1

23,537

2,256

119,451

537,232

4,754

3,107

1,316

20,420

1,000

18,282

1,538

4,304

$ 737,197

$ 79,395

570,598

649,993

4,431

-

466

1,809

656,699

116

20,620

7,633

54,208

(2,079)

80,498

$ 737,197

2018 2019

2019 2018 Interest Income

Loans, including fees

Taxable investment securities

Tax-exempt investment securities

Federal funds sold and other

Total Interest Income

Interest Expense

Deposits

Other borrowed funds

Total interest expense

Net interest income

Provision for Loan Losses

Non-Interest Income

Service charges and fees on deposits

Net gain on sale of securities

Mortgage banking income

Increase in cash value of life insurance

Interchange fees

Bargain purchase gain

Loss on sale of asset

Other income

Total non-interest income

Non-Interest Expense

Salaries and employee benefits

Furniture, fixtures and occupancy

Legal and professional

Advertising and marketing

Franchise taxes

Directors fees

FDIC insurance

Write down and loss on sale of other real estate owned

Acquisition related expenses

Other operating expenses

Total non-interest expense

Income before income taxes

Income tax expense

Net income

Other comprehensive income

Change in unrealized gain (loss) on available-for-sale securities,

net of income taxes of $982 for 2019 and $486 for 2018

Less: realized gains on available for sale securities, net of income taxes

taxes of $37 for 2019 and $10 for 2018

Comprehensive income

Earnings per share

Basic and diluted

$ 25,450

818

2,561

817

29,646

3,667

195

3,862

25,784

925

24,859

2,960

48

340

468

1,139

1,951

(13)

673

7,566

12,207

3,023

324

378

930

477

199

13

432

3,435

21,418

11,007

1,274

9,733

(1,827)

$ (38)

$7,868

$2.35

$ 29,069

522

2,035

787

32,413

4,803

347

5,150

27,263

1,450

25,813

2,734

176

333

473

1,268

-

(7)

905

5,882

13,824

2,992

360

466

1,039

482

100

12

-

3,801

23,076

8,619

1,016

7,603

3,614

$ (132)

$11,085

$1.88

Consolidated for the Year Ended December 31, 2019(Dollar amounts in thousands except for per share data)

Statement of Income

Monticello

Main Office

Highway 90/Barnes Drive

Tradeway

Downtown

loc

atio

ns

Danville

Liberty

Glasgow

Nicholasville Lexington

loc

atio

ns

Bowling Green

Fairview

Cave Mill

Hartland

Russell County

Albany

loc

atio

ns

South

North

Main Village Center

Harlan

Somerset

Mansion

loc

atio

ns

Monticello Bankshares, Inc. Kenneth Ramsey, Chairman

Kenny Ramsey, President & CEO

Dr. James K. Phillips, Jr., Vice Chairman

D. Mack Butler

Earl Croushorn

Roger Dalton

Dr. Mack Drake

Marilyn Drake

Rick Drake

Van Phillips

Albany Advisory Board Rick Drake - Chairman, D. Jeff Choate, Gene Dunnington, Paula Little, E. Howard Stockton, Steve Tallent

Bowling Green Advisory Board Dr. J. K. Phillips, Jr. - Chairman, Jody Allen, Barrett Hammer, Renee Isaacs, Rodney Rogers, David Tarter, Ben ThorntonGayla Warner, Dr. Michael Zachek

Casey County Advisory Board Lyle Denney - Chairman, Todd Hoskins, Garland Sharp, Brian Woodrum

Danville Advisory BoardMark Goss - Chairman, Lowery Anderson, Beth Coyle, Wyatt (Butch) Godfrey, Bill Ruth, Joseph Sharpe, John Stomberger

Glasgow Advisory Board Van Phillips - Chairman, T. Richard Alexander, Sheila Dishman, Bobby Hurt, John Taylor, III

Harlan Advisory BoardEarl Croushorn - Chairman, Rayburn Doss, Rick Fox, Mark David Goss, Wayne Greene, Don Parsons

Lexington/Nicholasville Advisory BoardMark Goss - Chairman, Bruce Davis, James “Cam” Rose, Chad Helm, Jane Phillips Harris

Russell County Advisory Board Michael Blevins - Chairman, Randy Baird, Steve Bledsoe, David Smith, Fred Tarter

Somerset Advisory Board Sam Brown - Chairman, Mack Butler, Danny Ford, Matt Ford, Mark Haney, Bruce Orwin, Dr. Keith Sinclair, Terri Tuttle, LaNette Wright

Monticello Banking CompanyKenneth Ramsey, Chairman

Kenny Ramsey, President & CEO

Dr. James K. Phillips, Jr., Vice Chairman

Mike Blevins

Sam Brown

D. Mack Butler

Lyle Denney

Marilyn Drake

Rick Drake

Mark Goss

Frank Phillips

Board of DirectorsPresident/Chief Executive OfficerKenny Ramsey*

Chief Operations Officer/EVPRegina Brinson*

Chief Financial OfficerSandra Frost*

Chief Human Resource Officer Becky Dolen*

Chief Technology Officer Randy Parsons

Senior Credit OfficerRick McClendon*

Compliance Pattie Corder*

MarketingBarbara Gehring*

Auditor Dawn Harmon

Information & Security Officer Melissa Piercy

Corporate Management

Maintenance & CourierHarmon, DavidNorfleet, Eddie Denney, David

MONTICELLOMain OfficeReceptionistLair, Mary*New AccountsKeith, Patty*LoansBertram, ElaineDolen-Richardson, Helen*TellersGregory, Kista Hurd, AmyBusiness DevelopmentElam, PerryCustodiansBranscum, MelissaDyer, GloriaGross, Amanda

DOWNTOWNBRANCHNew AccountsSimpson, Nadine*LoansDalton, TimHurd, Billy*TellersBarrier, Brenda*Bell, Janet*Martin, BeulahToler, Amy*

TRADEWAY BRANCHBranch Mgr./AVPWeston, Angela*New AccountsBunch, ReneeLoansRoberts, Mary Lois*Tellers Baker, BethaniHumble, PeggyPutman, HannahStinson, Tiffany Troxell, AprilVaughn, Jessica

HWY 90/BARNES DR. BRANCHSr. Exec. Officer Hicks, Jean* New AccountsAdams, Renee*LoansFoster, Wendy Rednour, Jayma*Rose, Kevin*TellersBertram, Elizabeth Davis, MarissaHicks, WhitneyMassengale, Stephanie* Staples, Shanyn

CORPORATEHuman ResourceJones, Jamie*Lester, Barbara*

ComplianceBrowning, BrandiGoley, Misty*

Marketing Edwards, Natalie

AccountingWatson, Frances,* SVP/ControllerCrabtree, Crystal*McGinnis, Amanda

AuditStearns, Johnna

Underwriting & Loan ServicingDunnington, Brandon, VP/Lead Processing SpecialistReagan, Jamie,AVP/Loan Processing Mgr. Morrow, Brian, AVP/Loan Operations Mgr. Bethel, BrittanyBrewster, AmandaBurkhart, TiffanyBurnette, Nicole Decker, Norma Goley, Jonathan* King, LenaMilwee, MaryMontville, M’Rae Parmley, ChristyWillis, Charity

AppraiserSummers, JoeLyons, Kenny

Collections Nelson, Tommy VP/Special Assets Mgr.Jones, StevenParmley, Heather

Information Technology Brown, Rickey,VP/Information Technology Mgr.Asberry, Kyle Castro, JohanCoffey, Garrett*Dennis, JackiePennycuff, AmieYoung, Jennifer

Information Security Caballero, Helen

Deposit OperationsDecker, Tabatha,*VP/Deposit Operations Mgr.Burnette, DakotaDobbs, MelissaDobbs, TabithaGuffey, Leverne*Lozano, AngelaMcGinnis, SylviaNelson, Debbie*Phipps, Elissa*Tucker, Ashley

ALBANYSr. Exec. OfficerJohnson, WillardNew AccountsJones, KendraLoansBrown, Debbie*Norris, AshleyTellersAdams, RachaelMelton, Ashley Slaven, SharonStockton, Kimberly

BOWLING GREEN

HARTLANDCommercial LenderKemp, KathrynExecutive Assistant Firkins, JenniferNew AccountsPainter, AshleyTellersMills, HannahWoodburn, Dianne

CAVE MILLSr. Exec. Officer/LenderPierce, JanetBusiness Dev. OfficerHaynes, Stacy New AccountsHoward, StephanieTellersLutzen, Elizabeth Roberts, SherryVespa, SabinaWalters, Ann

FAIRVIEWNew AccountsCarver, Desiree LoansStratton, MarvinTellersRogers, Janet Haynes, Cindy

GLASGOW Sr. Exec. OfficerWatson, CynthiaNew AccountsBowles, AmberLoansWitty, Leigh TellersAdwell, Lisa D. Cannon, KimEdwards, Marla

CASEYSr. Exec. Officer/LenderMcClendon, MelissaNew AccountsDowns, KristiTellersAllen, Glenda Hansford, GregoryHines, MirandaSmith, Karrie

RUSSELLRegional Exec. OfficerTucker, AnitaExecutive AssistantMoney, NancyNew AccountsSmith, AngelaLoansHoover, BelindaMatney, ChristinTellersCoppage, MarshaJasper, CindyRoy, Lisa L.Stephens, AngelaTucker, Sharon

SOMERSET

NORTHSr. Exec. OfficerHudson, WallyExecutive AssistantReynolds, ValerieReceptionistParkey, LisaNew AccountsPrice, GlendaMcGrew, KaylaLoans Claunch, JerryDungan, Debbie*TellersHarden, MazettaHarper, JeffTaylor, VanessaVinson, Amber

SOUTHBranch Mgr./LenderCompton, SheilaExec. Asst. to COO/EVPGreene, JudyNew AccountsPrice, MatthewLoans Asst.Beshears, Amanda

Bill Hall * Employees with 20 plus years of service

SOUTH (cont’d)TellersHale, Shelia Brooks, BrooklynRoy, Lisa A.Warren, Jessica

HARLAN

MANSIONSr. Exec. OfficerTolliver, SteveNew AccountsCraig, BethLoansCavins, KevinLoan ProcessingMiller, WhitneyTellersChasteen, Jaid Rouse, CaseySimpson, AlexisCustodian Nolan, Joy

MAINNew AccountsWhite, Sheila*TellersDay, AngelJones, TinaCustomer Call CenterHoward, Kay*Thompson, Shirley*White, Kim*White, Rhonda*

VILLAGEOperations Mgr.Estep, Ashley New AccountsNoah, KatelynLoansEnix, EugeneTellersEnix, JillianEwing, MeganForester, Alicia*Gross, KindraWhite, Samantha

DANVILLESr. Exec. OfficerJohnson, AdamNew AccountsCollier, ScottieSims, AmieLoansGray, DaarikLoan Asst.Koehler, YvonneTellersDeatherage. BethaneCole-Preston, Rebecca

LEXINGTONRegional Exec. OfficerWeaver, RodneySr. Executive OfficerCooper, RyanBusiness Development Centers, Charlesetta New AccountsBrown, BradleyTellersDowney, KareyKring, Tiffany

NICHOLASVILLESr. Executive OfficerBrinson, StephenNew AccountsPopham, TaraTellersConley, NeilPayne, ChadThompson, Tanner

staff

Corporate Management