FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                    Quarterly Report Under Section 13 or 15 (d)
                       of the Securities Exchange Act of 1934                  
 
        
                        
                        For Quarter Ended December 31, 1995
                          Commission file number 2-87246

                     THE FARMERS BANCORP, FRANKFORT, INDIANA
             (Exact name of registrant as specified in its charter)


                   INDIANA                               35-1565713       
            (State of incorporation)                 (I.R.S. Employer          
                                                    Identification No.)  

                        P.O. Box 129, Frankfort, Indiana
                    (Address of principal executive offices)
                                   46041-0129
                                   (Zip Code)

                                  317-654-8731
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
Yes  x     No     

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                  CLASS                  OUTSTANDING AT DECEMBER 31, 1995


       common stock, no par value                    577,058

















                                  Page 1 of 18

              

                                   FORM 10-Q

                                     INDEX



Part I.  Financial Information:                                 Page  

   Item 1.  Financial Statements:

            Consolidated Statements of Condition                  3-4   

            Consolidated Statements of Income                     5-6 

            Consolidated Statements of Changes in
            Stockholders' Equity                                    7
 
            Consolidated Statements of Cash Flows                 8-9   

            Notes to Consolidated Financial Statements             10

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations                 11-16

Part II. Other Information:

   Item 1.  Legal Proceedings                                      17  

   Item 2.  Changes in Securities                                  17  

   Item 3.  Defaults upon Senior Securities                        17

   Item 4.  Submission of Matters to a Vote of Security Holders    17

   Item 5.  Other Information                                      17

   Item 6.  Exhibits and Reports on Form 8-K                       17

            Signatures                                             18 



                                  












                                   Page 2 of 18


                       PART I,  FINANCIAL INFORMATION                          
                        ITEM 1:  FINANCIAL STATEMENT                 
                           THE FARMERS BANCORP                     
                    CONSOLIDATED STATEMENTS OF CONDITION                   
                          (Dollars in Thousands)                       
                                        
                                 ASSETS                        
                                                       Dec 31         June 30
                                                        1995            1995
                                 
Cash and due from banks                                 10222           8585   
Federal funds sold                                       4300           6800
Money market investments                                 5000           3700   
                                                       ------         ------
   Total cash and cash equivalents                      19522          19085
                                        
Available-for-sale securities                           20238          12181
Investment securities                                   22161          28833
Loans held for sale                                       164            863
Total loans                                            159566         155777
   Allowance for loan losses                            -2735          -2348   
                                                       ------         ------
     Net loans                                         156831         153429
Premises and equipment                                   4656           4326
Accrued income and other assets                          7533           7315
                                                       ------         ------
     Total Assets                                      231105         226032
                                                       ======         ======   
                    
                                 LIABILITIES                        
Deposits                                     
   Demand                                               23678          22038
   Savings                                              69536          58343
   Time, $100,000 and over                              15956          14593
   Other time                                           79286          80580   
                                                       ------         ------
                                                       188456         175554
  
Short-term borrowings                                   12402          20691
Other borrowings                                         4537           5174
Accrued interest payable                                 1007            831
Other liabilities                                        1077            961
                                                       ------         ------
     Total Liabilities                                 207479         203211
                                        
             

                                  












                                  Page 3 of 18

CONSOLIDATED STATEMENTS OF CONDITION (cont.) 

                      SHAREHOLDERS' EQUITY                         
Common stock, (no par value- 600,000 shares authorized                
   and 577,058 shares issued and outstanding)            2885           2885
Additional paid-in capital                               5101           5101
Retained earnings                                       15559          14753
Net unrealized gain on available-for-sale                                      
   securities (net of tax)                                 81             82   
                                                       ------         ------
     Total Shareholders' Equity                         23626          22821
                                                       ------         ------
  Total Liabilities & Shareholders' Equity             231105         226032
                                                       ======         ======


See accompanying notes to consolidated financial statements           






























 










                                   Page 4 of 18
                     
                      
                       PART I,  FINANCIAL INFORMATION                          
                        ITEM 1:  FINANCIAL STATEMENT                     
                            THE FARMERS BANCORP                         
                     CONSOLIDATED STATEMENTS OF INCOME                 
                (Dollars in Thousands except Per Share Amounts)                
 
                                                       
                                                       
                                      Three Months Ended     Six Months Ended  
                                         December 31            December 31  
                                       1995         1994      1995      1994
                                      ------       ------    ------    ------  
 
Interest Income:                                                 
  Interest and fees on loans           3655         3257      7307      6511 
  Interest on securities:                               
    Taxable                             508          610      1018      1289 
    Tax exempt                          137          120       273       261   
Interest on short-term investments      250          171       459       184   
                                      -----        -----     -----     -----   
          Total Interest Income        4550         4158      9057      8245 
Interest Expense:                     -----        -----     -----     -----   
   Interest on deposits                1864         1628      3710      3136 
   Interest on short-term borrowings    154          107       316       197  
   Interest on other borrowings          67           45       143        85   
                                      -----        -----     -----     -----  

          Total Interest Expense       2085         1780      4169      3418 
                                      -----        -----     -----     ----- 
          Net Interest Income          2465         2378      4888      4827  
Provision for loan losses               120            0       240       119  
                                      -----        -----     -----     ----- 
                                       2345         2378      4648      4708  
Other income:                         -----        -----     -----     -----   
   Trust fees                            60           28       121        47  
   Service charge income                177          154       358       331 
   Security gains (losses)                5            0         5         0  
   Other                                161          120       259       244  
                                      -----        -----     -----     ----- 
          Total Other Income            403          302       743       622 
                                      -----        -----     -----     -----


















                                  Page 5 of 18

STATEMENTS OF INCOME (cont.)


Other expenses:            
   Salaries and employee benefits      1012          903      1916      1802
   Occupancy expense                    144          138       290       258  
   Equipment expense                    142          128       283       260   
   Other operating expenses             496          592       968      1274  
                                      -----        -----     -----     -----  
          Total Other Expense          1794         1761      3457      3594 
                                      -----        -----     -----     -----  
          Income Before Income Tax      954          919      1934      1736   
Less:  Income taxes                     328          312       666       576  
                                      -----        -----     -----     ----- 
          Net Income                    626          607      1268      1160  
Per share data:                       =====        =====     =====     =====  
          Net income per share         1.08         1.05      2.20      2.01  
                                      =====        =====     =====     =====   
          Dividends per share          0.40         0.38      0.80      0.76  
                                      =====        =====     =====     ===== 
                                                          
See accompanying notes to consolidated financial statements                    
             
                                                       
   



















                                                                               








                                  Page 6 of 18


                      PART I,  FINANCIAL INFORMATION
                       ITEM 1:  FINANCIAL STATEMENT          
                           THE FARMERS BANCORP                     
                    CONSOLIDATED STATEMENTS OF CHANGES                
                         IN SHAREHOLDERS' EQUITY                      
                          (Dollars in Thousands)                       
                                   
                                   
                                                                               
                                     1995                    1994 
                                   --------                -------  

Balance - June 30                    22,821                 21,191   
                                   
Net Income                            1,268                  1,160    
                                   
Dividends                              (462)                  (439)
                                       
Change in net unrealized gain on                       
  available-for-sale securities          (1)                  (120)    
                                    --------                -------  
Balance - December 31                23,626                 21,792 
                                    ========               ======== 
 
                                   
                                   
                                   
                                   
See accompanying notes to consolidated financial statements           
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   












                                   
                                  Page 7 of 18          

                       PART I,  FINANCIAL INFORMATION  
                        ITEM I:  FINANCIAL STATEMENT  
                           THE FARMERS BANCORP    
                     CONSOLIDATED STATEMENTS OF CASH FLOWS  
                            (Dollars in Thousands)                             
                        
          
                                                  Six Months Ended December 31 

 CASH FLOWS FROM OPERATING ACTIVITIES                    1995            1994  
                                                         ----            ----
 Net income                                              1268            1160 
 Adjustments to reconcile net income to net cash                            
    from operating activities                            1290           -1834 

                                                       ------          ------  
     Net cash from operating activities                  2558            -674 
                             
CASH FLOWS FROM INVESTING ACTIVITIES                           
   Proceeds from maturities and principal repayments on                       
    available-for-sale securities                        1391            4981
   Purchases of available-for-sale securities           -4447           -1500  
   Proceeds from maturities and principal repayments                           
    on investment securities                             7666            4353  
   Purchase of investment securities                    -6032           -3171 
   Loans made to customers, net of principal                                  
    collections thereon                                 -3642           -4343  
   Net change in interest-bearing balances with                               
    financial institutions                                  0           -1500  
   Purchase of life insurance policies                      0               0  
   Property and equipment expenditures                   -571            -771  
                                                       ------          ------  
     Net cash from investing activities                 -5635           -1951  
                         
 CASH FLOWS FROM FINANCING ACTIVITIES                                  
   Net increase/(decrease) in deposits                  12902            6719
   Net increase/(decrease) in short term borrowings     -8289           -4783
   Proceeds from other borrowings                           0            1332
   Repayment of other borrowings                         -637            -124
   Dividends paid                                        -462            -439
                                                       ------          ------ 
     Net cash from financing activities                  3514            2705
                                                       ------          ------
NET CHANGE IN CASH AND CASH EQUIVALENTS                   437              80  

                             














                                  Page 8 of 18

CONSOLIDATED STATEMENTS OF CASH FLOWS (cont.)


CASH AND CASH EQUIVALENTS AT
 BEGINNING OF PERIOD                                    19085           8158

CASH AND CASH EQUIVALENTS AT                                                  
 END OF PERIOD                                          19522           8238
                                                        ==================== 

              
See accompanying notes to consolidated financial statements                    
  















































                                  Page 9 of 18                              
                                  
                       PART I  FINANCIAL INFORMATION
                        ITEM 1:  FINANCIAL STATEMENTS
                           THE FARMERS BANCORP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS        
                            December 31, 1995
          
NOTE 1- ACCOUNTING POLICIES 

Except for required accounting changes (see Note 2), the significant
accounting policies followed by The Farmers Bancorp, Frankfort, Indiana
("Bancorp") and its consolidated subsidiary, The Farmers Bank, Frankfort,
Indiana ("Bank") for interim financial reporting are consistent with the
accounting policies followed for annual financial reporting.  All adjustments
which are, in the opinion of management, necessary for a fair presentation of
the results for the periods reported have been included in the accompanying
unaudited consolidated financial statements and all such adjustments are of a
normal recurring nature.

NOTE 2 - ACCOUNTING CHANGE

In May, 1993, the Financial Accounting Standards Board issued Financial
Accounting Standard (FAS) No. 114, "Accounting By Creditors For Impairment of
a Loan".  FAS No. 114 as amended by FAS No. 118 requires that allowances for
loan losses on impaired loans be determined using the present value of
estimated future cash flows of the loan, discounted at the loans's effective
interest rate.  A loan is considered to be impaired when it is probable that
all principal and interest amounts will not be collected according to the loan
contract.  FAS No. 114 and No. 118 are effective for fiscal year beginning
after December 15, 1994.  The Bancorp adopted FAS No. 114 and No. 118, as
required, on July 1, 1995.  Accordingly, on July 1, 1995, management
identified $1,234,000 of loans as impaired and allocated $215,000 of the
Bank's $2.3 million reserve for loan losses for those loans.  At December 31,
1995, management has identified $1,555,000 of loans as impaired and allocated
$185,000 of the Bank's $2.7 million reserve for loans losses for those loans.

























                                  Page 10 of 18

                       PART I  FINANCIAL INFORMATION
                ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              THE FARMERS BANCORP

                               December 31, 1995

FINANCIAL CONDITION:

Total assets increased 2.24 percent from June 30, 1995 to December 31, 1995,
and totaled $231,105,000 at period end.  During the six months ended December
31, 1995, $10,479,000 was used to purchase investments.  However, during the
same period, $9,057,000 of investments matured, were repaid or were called
prior to their maturity.  As a result, total investments increased $1,385,000
or 3.38 percent.  The security gain of $5,000 was due to an investment being
called.  The following table presents, in thousands, the amortized cost and
fair value of investments:

DECEMBER 31, 1995     Amortized    Gross                Gross         
                        Cost   Unrealized Gains  Unrealized Losses  Fair Value 

Investment Securities  $22,161        $414             $ (48)        $22,527 
Available-for-sale   
 Securities             20,104         181               (47)         20,238 

JUNE 30,  1995

Investment Securities   28,833         416              (205)         29,044 
Available-for-sale                                                           
 Securities             12,047         161               (27)         12,181
 

In December 1995, pursuant of new accounting guidance, the Bancorp transferred
$5,010,000 of investment securities to the available-for-sale category.  These
investments were primarily corporate notes.  Other assets totaled $7,533,000
at December 31, 1995, and include insurance policies with a current cash
surrender value of $4,278,000 that were purchased in conjunction with the
formation of deferred compensation and death benefit programs.

Other borrowings decreased to $4,537,000 and consist primarily of Federal Home
Loan Bank advances which were $3,936,000 at December 31, 1995.  The Bank
utilized this source to fund certain commercial real estate loans.  These
advances require annual principal payments, and have a final maturity of
September, 2000.  The Bank may occasionally utilize this source of credit to
maintain liquidity, as well as to fund specific loans.  In addition, the Bank
entered into a lease purchase arrangement during 1994.  For financial
reporting purposes, the lease is considered to be a capital lease and other
borrowings include the remaining present value of future lease payments of
$601,000.  











                                  Page 11 of 18

RESULTS OF OPERATIONS:

The Bancorp reported net income, for the first six months of the fiscal year
ending June 30, 1996 of $1,268,000, as compared to $1,160,000 for the prior
year.  Earnings per share were $2.20 and  $2.01, respectively, based on an
average of 577,058 shares outstanding for the six months ended December 31,
1995 and December 31, 1994.  The factors that most affected 1996's
performance, as compared to 1995 are:  increasing loan demand, a shift in mix
of earning assets from investments at lower yields to loans at higher yields,
decreased FDIC expense, and lower expenses resulting from the conversion to an
in-house computer system.  

Total interest income was $9,057,000 for the six months ended December 31,
1995, compared to $8,245,000 for the six months ended December 31, 1994, an
increase of 9.85 percent.   Loans, including those held for sale, increased
$7,810,000, or 5.14 percent, from December 31, 1994 to December 31, 1995. 
Interest and fees on loans totaled $7,307,000 for the six months ended
December 31, 1995, compared to $6,511,000 for the six months ended December
31, 1994, an increase of $796,000, or 12.23 percent.  Investments decreased
$3,593,000, or 7.81 percent, from December 31, 1994 to December 31, 1995, and
interest income on investments decreased by $259,000 as a result of decreased
volume and yield on investments.  Total interest expense was $4,169,000 for
the six months ended December 31, 1995, compared to $3,418,000 for the same
period in 1994, an increase of $751,000, or 21.97 percent.  Total interest
bearing deposits and repurchase agreements increased $8,402,000, or 4.98
percent from December 31, 1994 to December 31, 1995.  Interest bearing
transaction account balances increased $6,872,000 from December 31, 1994 to
December 31, 1995, and time deposits outstanding increased $5,535,000 for the
same period.  Repurchase agreements decreased approximately $4,005,000 or
24.41 percent, from December 31, 1994 to December 31, 1995, as not as many
corporate customers utilized the Bank's Sweep Agreement.  

Average earning assets increased to $216,683,000 during the six months ended
December 31, 1995.  This represents an approximate increase of 6.00 percent
compared to $204,419,000 for the six months ended December 31, 1994.  The
tax-equivalent yield on average earning assets was 8.53 percent for the six
months ended December 31, 1995, compared to 8.20 percent for the six months
ended December 31, 1994.  Total interest expense to average interest bearing
liabilities was 4.54 percent for the six months ended December 31, 1995,
compared to 3.48 percent for the six months ended December 31, 1994.  This
results in a tax-equivalent net interest margin (net tax-equivalent interest
income divided by average earning assets) of 4.66 percent and 4.72 percent for
the six months ended December 31, 1995 and 1994, respectively.  The increase
in average earning assets offset the decline in margin, and resulted in net
interest income increasing by $61,000, or 1.26 percent.  The decrease in
interest margin is a trend that management anticipates will slowly continue.

The provision for loan losses increased $121,000 or 101.68 percent to $240,000
for the six months ended December 31, 1995, compared to $119,000 for the six
months ended December 31, 1994.  Net chargeoffs (recoveries) for the six
months ended December 31, 1995 totaled $(147,000).  Net chargeoffs
(recoveries) by loan type aggregated $(178,000) for commercial and
agricultural loans, $24,000 for consumer loans, $0 for real estate loans, and
$7,000 for credit card loans.  On December 31, 1995, the allowance for loan
losses totaled $2,735,000 or 1.71 percent of loans, compared to $2,348,000 or
1.50 percent of loans on June 30, 1995, and $2,789,000 or 1.84 percent of
loans at December 31, 1994.  The provision is determined by management based



                                  Page 12 of 18

RESULTS OF OPERATIONS (cont.)


upon a detailed review of the risk factors affecting the loan portfolio,
including changes in the portfolio's size and mix, past loan loss experience,
and the financial condition of borrowers in the prevailing economic
environment.  Reserves are allocated based upon the Bank's historical loss
experience, adjusted for recent loss trends, the economic environment, current
levels of non-performing loans, and management's expectations for the future.

The Bancorp's Loan Review function develops a quarterly "watch list" report
representing loans with more than a normal degree of risk.  These credits are
reviewed and, as needed, specific allocations of the reserve are made for
specific loans to provide for potential loss exposure.  Effective July 1,
1995, the Bank adopted FAS 114.  This new accounting standard requires
reserves for loans designated as "impaired" to be determined based upon the
present value of estimated future cash flows or the present value of
collateral securing the loans as opposed to undiscounted values.  Accordingly,
management has designated $1,555,000 of loans as impaired at December 31, 1995
and allocated $185,000 of the allowance for loan losses to such loans, as
compared to $1,163,000 and $215,000 respectively as of September 30, 1995. 
Management has historically reviewed individual problem credits and allocated
reserves based on discounted collateral values, when appropriate. 
Accordingly, the adoption of FAS 114 did not significantly affect management's
analysis of the adequacy of the reserve for loan losses or materially increase
the amount of the allowance allocated to specific problem credits.  A summary
of management's calculation of the adequacy of the Bank's loan loss reserve is
presented below for both December 31, 1995 and December 31, 1994.


    
                                            December 31,
                                         1995          1994
Specific Allocations:
  Allocated to impaired loans        $  185,000  $      -0-
  Allocated to other loans              438,000   1,190,000   
  Allocated to types of loans           643,000     732,000   
                                     ----------  ----------   
                                      1,266,000   1,922,000 
Unallocated                           1,469,000     867,000    
                                     ----------  ---------- 
ACTUAL BALANCE OF RESERVE            $2,735,000  $2,789,000
                                     ==========  ==========  
















               
                                  Page 13 of 18

RESULTS OF OPERATIONS (cont.)

The Bancorp received lower levels of paybacks from most of its agricultural
customers from the 1995 crop season.  This was due to unfavorable weather
conditions during the summer.  Management continues to monitor and evaluate
individual credits to forecast expected levels of loan repayment, collateral
values and attendant loss exposure.

Non-performing loans, consisting of non-accrual loans, restructured loans and
those over 90 days past due, decreased to $1,986,000 at December 31, 1995,
compared to $2,491,000 at June 30, 1995.  Non-performing loans at December 31,
1995 represented 1.24 percent of total loans and 72.61 percent of the Reserve
for Loan Losses.  The following table shows the composition of non-performing
loans at both period ends.

                               December 31,                    June 30,  
                                   1995                          1995    
 
Real Estate Loans              $  165,000 (2)                $   47,000   
Consumer Loans                    173,000                        22,000  
Commercial and Agricultural     1,648,000 (3)                 2,422,000 (1)  
                               ----------                    ----------     
                               $1,986,000                    $2,491,000   
                               ==========                    ==========  

 
Notes:
  1.  Includes five agricultural loans totaling $1,173,000 on non-accrual, two 
      agricultural credits past due more than 90 days in the amount of
      $341,000,  two commercial loans past due more than 90 days totaling
      $200,000, four restructured agricultural loans totaling $658,000,
      and one restructured commercial loan in the amount of $50,000.
  2.  Includes two residential mortgages totaling $82,000 on non-accrual and
      three residential mortgages totaling $83,000 past due more than 90
      days.
  3.  Includes six agricultural loans totaling $1,177,000 on non-accrual, one
      commercial loan past due more than 90 days in the amount of $8,000,
      three restructured agricultural loans totaling $415,000 and one
      commercial restructured loan in the amount of $48,000.





















                                  Page 14 of 18

RESULTS OF OPERATIONS (cont.)

Non-interest income increased 19.45 percent or $121,000 to $743,000 for the
six months ended December 31, 1995, compared to $622,000 for the six months
ended December 31, 1994.  Other income consists of gains on the sale of
mortgage loans, commissions on credit life insurance sales, and safe deposit
box rent.

Non-interest expense decreased 3.81 percent or $137,000 and totaled $3,457,000
for the six months ended December 31, 1995, compared to $3,594,000 for the six
months ended December 31, 1994.  Salaries and employee benefits increased 6.33
percent or $114,000, to $1,916,000.  Occupancy expense increased $32,000 or
12.40 percent and totaled $290,000 for the six months ended December 31, 1995. 
One-time real estate and property tax refunds were received in the quarter
ended September 30, 1994 which explains why the total expenses were lower
during that time period.  Other operating expenses decreased by 24.02 percent
or $306,000 for the six months ended December 31, 1995 as compared to December
31, 1994.  This decrease is attributable to lower expenses resulting from the
conversion to an in-house computer system and a reduction in FDIC expense. 
Tax expense for the six months ended December 31, 1995 was $666,000, compared
to $576,000 for the prior year, an increase of $90,000 or 15.63 percent, due
to increased levels of earnings before tax.

LIQUIDITY:

Bancorp's liquidity is a measurement of its ability to raise cash when needed
without an adverse impact on profits.  Primary sources of asset liquidity are
securities maturing or having a call feature within one year, time deposits in
other banks, federal funds sold, term funds sold, and banker's acceptances. 
All of these sources combined totaled $17,235,000 at December 31, 1995.  In
addition, the Bancorp has $34,000 in student loans which are committed to be
sold when their deferment period ends and $130,000 in mortgage loans being
held for sale into the secondary market.  The factors which have and will
continue to affect the general liquidity of the Bancorp are increasing loan
demand and the continued offering of a deposit instrument based primarily on
money market rates.  All of these factors have contributed to the liquidity
ratio (net cash, short term investments and other marketable assets to
volatile liabilities) of 21.89 percent on December 31, 1995.  At December 31,
1995 Bancorp had unfunded loan commitments of $34,069,000, primarily available
balance on customer lines of credit, and outstanding letters of credit of
$495,000.  However, management expects many of these will expire without being
used.  In addition, the Bancorp intends to continue the sale of newly
originated fixed rate residential mortgages into the secondary market for the
foreseeable future.  
















                                  Page 15 of 18

LIQUIDITY: (cont.)

The asset/liability committee continues to review the matching of loan demand
with deposits, and maturities of assets and liabilities to help ensure the
level of liquidity remains satisfactory.  The asset/liability committee has
managed the rate sensitive assets and liabilities during the first six months
of fiscal 1996, and at December 31, 1995, the Bancorp's one year gap position
was slightly negative.

CAPITAL RESOURCES:

The Bank and Bancorp are subject to regulations established by their
respective regulators, which require the maintenance of established levels of
capital and, as a result, limit the amount of dividends which may be paid by
the companies.  The ability of Bancorp to pay dividends depends primarily upon
the ability of the Bank to pay dividends to the Bancorp.  The Bank is
regulated by the Indiana Department of Financial Institutions and the FDIC,
while the Bancorp is subject to the regulations issued by the Federal Reserve
Board.  These regulations establish minimum levels of Tier I (as defined)
capital to total assets (the leverage ratio) and minimum levels of Tier I and
Total Capital (as defined) to risk-based assets.  Also, FDIC regulations
establish various levels of capital compliance.  Under these regulations, a
"well capitalized" financial institution must maintain a leverage ratio of at
least 5 percent, a Tier I risk-based capital ratio of at least 6 percent and a
total risk-based capital ratio of at least 10 percent.  Institutions which do
not meet these guidelines are subject to higher deposit insurance assessments
and, in certain cases, operational restrictions.  Presented below are the
Bancorp's actual capital ratios as of December 31, 1995: 


                     Tier I Capital                  $23,506,000
                     Total Capital                   $25,861,000
                     Risk Weighted Assets           $188,018,000
                     Leverage Ratio                        10.17%
                     Risk-based Capital; Tier I            12.50%
                     Total Risk-based Capital              13.75%



On October 9, 1995, the Bancorp declared a $.40 per share quarterly dividend,
totaling $231,000, payable November 15, 1995 to shareholders of record as of
October 9, 1995.  In addition, on January 8, 1996 the Bancorp declared a $.40
per share quarterly dividend totaling $231,000, payable February 15, 1996 to
shareholders of record as of January 8, 1996.  The book value of common stock
on December 31, 1995 was $40.94 per share, based on 577,058 shares
outstanding.














                                 Page 16 of 18<PAGE>

                           PART II  OTHER INFORMATION
                              THE FARMERS BANCORP
                               December 31, 1995

Item 1.  LEGAL PROCEEDINGS

The Bancorp is not a party to any material pending legal proceedings before
any court, regulatory authority, administrative agency or other tribunal. 
Further, the Bancorp is not aware of the threat of any such proceeding.

As a part of its ordinary course of business, the Bank is a party to several
lawsuits involving a variety of claims and in the collection of delinquent
accounts.  All such litigation is incidental to the Bank's business.  No
litigation is pending or, to the Bank's knowledge, threatened in which the
Bank faces potential loss or exposure which would have a material adverse
effect upon the financial condition of the Bank.  The Bancorp and the Bank are
not involved in any administrative or judicial proceedings arising under any
Federal, State or Local provisions which have been enacted or adopted to
regulate the discharge of materials into the environment or otherwise relating
to the protection of the environment.

Item 2.  CHANGES IN SECURITIES

None to be reported.

Item 3.  DEFAULTS UPON SENIOR SECURITIES

None to be reported.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None to be reported.

Item 5.  OTHER INFORMATION

None to be reported.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

     A.  Exhibits - None to be reported.

     B.  Form 8-K - None to be reported.

















                                  Page 17 of 18 

                           PART II OTHER INFORMATION
                              THE FARMERS BANCORP
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                              THE FARMERS BANCORP
                                  (Registrant)


Date  February 8,1996                                                    
                                        Tom Rohrabaugh, President
                                         (Principal Executive Officer)



Date  February 8, 1996                                                    
                                         Karen I. Miller
                                         Vice President and Treasurer
                                         (Principal Financial and Accounting
                                         Officer)



















                                  















                                  Page 18 of 18