KRS 286.3-350: When dividends may be declared.

(1) (a) Except as provided in subsection (2) of this section, the board of directors of

any state bank or trust company may declare a dividend of so much of the net

profits as they deem appropriate.

(b) The net profits referenced in paragraph (a) of this subsectio n shall be

computed by deducting all expenses, losses, and interest and taxes accrued or

due from the bank.

(2) The prior approval of the commissioner shall be required if the total of all dividends

that a state bank or trust company intends to declare in any calendar year would

exceed the total of its net profits of that year combined with its retained net profits

of the preceding two (2) years, less any required transfers to surplus or a fund for

the retirement of preferred stock or debt.