Local bank doubles its dividend

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2011 most profitable year for Kentucky Neighborhood Bank

By Sarah Bennett

After experiencing its most profitable year to date in 2011, Hardin County-based Kentucky Neighborhood Bank announced to shareholders it will double its dividend.

The bank will double its dividend from 50 cents to $1, it announced to shareholders last week in a letter.

“I give credit to the customers we’ve got and the great employees,” said President and CEO Ronnie Pence, who called the bank’s successful year “humbling.”

For two years in a row, KNB has experienced year-end profit growth, he said. KNB began paying shareholders a dividend in 2011 after experiencing its most profitable year in 2010.

Last year topped that success.

“Our stockholders have been very patient,” said Pence, adding the bank first opened its doors in 1997.

With three locations in Elizabethtown and Radcliff, the bank’s assets totaled $125 million by the end of 2011, Pence said.

KNB takes a “conservative approach” to banking, he said, and it is very fortunate to be doing business in Hardin County.

“It has been a very humbling and rewarding experience starting KNB, and we are looking for another great year in 2012,” Pence wrote in an email.

Sarah Bennett can be reached at (270) 505-1750 or sbennett@thenewsenterprise.com.