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, 1996   
                         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)

                                  765-654-8731
              (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, 1996


       common stock, no par value                  1,154,116














                            Page 1 of 15
                                  FORM 10-Q

                                     INDEX



Part I.  Financial Information:                                  Page  

   Item 1.  Financial Statements:

            Consolidated Statements of Condition                   3    

            Consolidated Statements of Income                      4  

            Consolidated Statements of Changes in
            Stockholders' Equity                                   5 
 
            Consolidated Statements of Cash Flows                  6    

            Notes to Consolidated Financial Statements             7 

   Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations                  8-13

Part II. Other Information:

   Item 1.  Legal Proceedings                                     14   

   Item 2.  Changes in Securities                                 14   

   Item 3.  Defaults upon Senior Securities                       14 

   Item 4.  Submission of Matters to a Vote of Security Holders   14 

   Item 5.  Other Information                                     14 

   Item 6.  Exhibits and Reports on Form 8-K                      14 

            Signatures                                            15  



                                  











                                  



                            Page 2 of 15<PAGE>
    
             PART I,  FINANCIAL INFORMATION                    
               ITEM 1:  FINANCIAL STATEMENT                 
                   THE FARMERS BANCORP                      
             CONSOLIDATED STATEMENTS OF CONDITION                
                   (Dollars in Thousands)                        
                                        
               ASSETS                        Dec 31       June 30    
                                              1996          1996
                                             -----------------------
Cash and due from banks                        5985           9889
                                                                      
   Total cash and cash equivalents             5985           9889
                                        
Available-for-sale securities                 13613          18610
Held-to-maturity securities                   22095          23654
Loans held for sale                             895            492
Total loans                                  189996         173556
   Allowance for loan losses                  -2975          -2741
                                             -----------------------
     Net loans                               187021         170815
Premises and equipment                         4750           4641
Restricted stock, at cost                      1012            771
Accrued income and other assets                8345           8172   
                                             -----------------------
     Total Assets                            243716         237044
                                             =======================
               LIABILITIES
Deposits                                     
   Demand                                     24596          22115
   Savings                                    67109          67158
   Time, $100,000 and over                    20701          20250
   Other time                                 82692          81966 
                                             -----------------------
                                             195098         191489
                                        
Short-term borrowings                         12868          12752
Other borrowings                               8006           6259
Accrued interest payable                        904            958
Other liabilities                              1375           1459
                                             -----------------------
     Total Liabilities                       218251         212917
                                        
               SHAREHOLDERS' EQUITY                         
Common stock, (no par value-2,400,000 shares authorized
 and 1,154,116 shares issued and outstanding)  2885           2885
Additional paid-in capital                     5101           5101
Retained earnings                             17478          16235
Unrealized gain/(loss) on available-for-sale                         
   securities (net of tax)                        1            (94)
                                             -----------------------
     Total Shareholders' Equity               25465          24127
                                             -----------------------
  Total Liabilities & Shareholders' Equity   243716         237044
                                             =======================
See accompanying notes to consolidated financial statements           
                                        
                         

                            Page 3 of 15
               PART I,  FINANCIAL INFORMATION                         
                ITEM 1:  FINANCIAL STATEMENT                     
                     THE FARMERS BANCORP                         
               CONSOLIDATED STATEMENTS OF INCOME                 
          (Dollars in Thousands except Per Share Amounts)             
     
                                                       
                                                       
                                             Three Months    Six Months
                                             Ended Dec 31   Ended Dec 31
                                               1996  1995    1996  1995
                                             -------------- ------------
Interest Income:                                                 
   Loans, including related fees               4346  3655    8497  7307
   Securities:                                    
     Taxable                                    469   508     999  1018
     Tax exempt                                 116   137     244   273
   Short-term investments                        26   250      51   459
                                             -------------- ------------
         Total Interest Income                 4957  4550    9791  9057
Interest Expense:                            -------------- ------------
   Deposits                                    1898  1864    3808  3710
   Short-term borrowings                        125   154     239   316
   Other borrowings                             108    67     207   143
                                             -------------- ------------
         Total Interest Expense                2131  2085    4254  4169
                                             -------------- ------------
         Net Interest Income                   2826  2465    5537  4888
Provision for loan losses                       120   120     240   240
                                             -------------- ------------
                                               2706  2345    5297  4648
Other income:                                -------------- ------------ 
   Trust fees                                    65    60     130   121
   Service charge income                        201   177     397   358
   Security gains (losses)                        0     5       0     5
   Other                                        203   161     366   259
                                             -------------- ------------
          Total Other Income                    469   403     893   743
Other expenses:                              -------------- ------------
   Salaries and employee benefits               947  1012    1906  1916
   Occupancy                                    142   144     285   290
   Equipment                                    157   142     300   283
   Other                                        475   496     969   968
                                             -------------- ------------
          Total Other Expense                  1721  1794    3460  3457
                                             -------------- ------------
         Income Before Income Tax              1454   954    2730  1934
Less:  Income taxes                             532   328     991   666
                                             -------------- ------------
     Net Income                                 922   626    1739  1268
Per share data: (Note 3)                     ============== ============
   Net income per share                         .80   .54    1.51  1.10
                                             ============== ============
   Dividends per share                          .22   .20     .43   .40  
                                             ============== ============
See accompanying notes to consolidated financial statements
                         
                                                       
                            Page 4 of 15                              
             PART I,  FINANCIAL INFORMATION            
               ITEM 1:  FINANCIAL STATEMENT            
                 THE FARMERS BANCORP                        
            CONSOLIDATED STATEMENTS OF CHANGES              
                IN SHAREHOLDERS' EQUITY                     
                 (Dollars in Thousands)                     
                                   
                                   
                                   1996         1995   
                                  -------------------  
Balance - June 30                  24127        22821
                    
Net Income                          1739         1268
                    
Dividends                           (496)        (462) 
                                   
Change in net unrealized gain on                       
  available-for-sale securities       95           (1) 
                                  -------------------  
Balance - December 31              25465        23626  
                                  ===================
                                   
                                   
                                   
                                   
See accompanying notes to consolidated financial statements           
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                                       

















                            Page 5 of 15                    

                                 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                     1996     1995


Net income                                               1739     1268 
Adjustments to reconcile net income to net cash        
  from operating activities                               174     1290 
                                                        ---------------  
     Net cash from operating activities                  1913     2558

CASH FLOWS FROM INVESTING ACTIVITIES                        
   Proceeds from maturities and principal repayments on
    available-for-sale securities                        5147     1391 
   Purchases of available-for-sale securities             -0-    (4447)
   Proceeds from maturities and principal repayments
    on investment securities                             1708     7666 
   Purchase of investment securities                     (170)   (6032)
   Loans made to customers, net of principal
    collections thereon                                (16849)   (3642)
   Net change in interest-bearing balances with
    financial institutions                                -0-      -0- 
   Purchase of life insurance policies                    (24)     -0-
   Property and equipment expenditures                   (364)    (571)
   Purchase of restricted stock                          (242)     -0- 
                                                        ---------------
     Net cash from investing activities                (10794)   (5635) 

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase/(decrease) in deposits                   3610    12902 
   Net increase/(decrease) in short term borrowings       116    (8289) 
   Proceeds from other borrowings                        6335      -0- 
   Repayment of other borrowings                        (4588)    (637) 
   Dividends paid                                        (496)    (462)
                                                        --------------- 
    Net cash from financing activities                   4977     3514 
                                                        --------------- 
NET CHANGE IN CASH AND CASH EQUIVALENTS                 (3904)     437 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR           9889    19085 
                                                        --------------- 
CASH AND CASH EQUIVALENTS AT END OF YEAR                 5985    19522
                                                        ===============





See accompanying notes to consolidated financial statements


                     
                            Page 6 of 15                                 
                        PART I  FINANCIAL INFORMATION
                        ITEM 1:  FINANCIAL STATEMENTS
                            THE FARMERS BANCORP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS        
                              December 31, 1996
          
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

Effective July 1, 1996, the Bancorp adopted Financial Accounting
Standard No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of."  Management does not
believe the Bancorp has any material assets subject to this new
Standard.

Effective July 1, 1996, the Bancorp adopted Financial Accounting
Standard No. 122, "Accounting for Mortgage Servicing Rights."  This
Standard requires the basis on mortgage loans originated and sold, with
servicing retained, to be allocated between the mortgage loan and the
mortgage servicing right, based upon the relative fair value of such
assets.  The effect of this Standard is to increase the gain, or reduce
the loss, recognized upon the sale of a mortgage loan and future
servicing fee income is reduced as the asset is amortized.  Application
of this Standard did not significantly effect the Bancorp's financial
condition or results of operation.

NOTE 3 - SHARES OUTSTANDING

On October 14, 1996, the Board approved a 2 for 1 stock split effective
October 28, 1996.  All per share data has been restated to give
retroactive effect to that stock split.















                            Page 7 of 15

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

                               December 31, 1996

FINANCIAL CONDITION:

Total assets increased 2.81 percent from June 30, 1996 to December 31,
1996 and totaled $243,716,000 at period end.  During the six months
ended December 31, 1996 $170,000 of securities were purchased.  However,
during the same period, $6,885,000 of securities matured, were repaid or
were called prior to their maturity.  As a result, total securities
decreased $6,556,000 or 15.51 percent.  The following table presents, in
thousands, the amortized cost and fair value of securities:

DECEMBER 31, 1996   Amortized     Gross              Gross        Fair 
                       Cost   Unrealized Gains  Unrealized Losses  Value 
 
Held-to-maturity
 Securities            $22,095        $288              ($71)    $22,312 
Available-for-sale   
 Securities             13,610          56               (53)     13,613 

JUNE 30, 1996

Held-to-maturity
 Securities             23,654         188              (307)     23,535
 Available-for-sale                                                      
  Securities            18,766          59              (215)     18,610
 

Other assets totaled $8,345,000 at December 31, 1996, and include
insurance policies with a current cash surrender value of $4,601,000
that were purchased in conjunction with the formation of deferred
compensation and death benefit programs.

Other borrowings increased to $8,006,000 and consist primarily of
Federal Home Loan Bank advances which were $7,561,000 at December 31,
1996.  The Bank utilized the FHLB advances to fund certain commercial
real estate loans.  These advances require annual principal payments,
and have a final maturity of June, 2006.  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 $445,000.  










                            Page 8 of 15 
RESULTS OF OPERATIONS:

The Bancorp reported net income, for the first six months of the fiscal
year ending June 30, 1997 of $1,739,000, as compared to $1,268,000 for
the prior year.  Earnings per share were $1.51 and  $1.10, respectively,
based on an average of 1,154,116 shares outstanding for the six months
ended December 31, 1996 and December 31, 1995.  The factor most
affecting operating results in fiscal 1997, as compared to 1996, is the
increase in net interest income which is being driven by continued focus
on loan growth.

Total interest income was $9,791,000 for the six months ended December
31, 1996, compared to $9,057,000 for the six months ended December 31,
1995, an increase of 8.10 percent.  This increase resulted from a 16.29
percent increase in interest and fees on loans offset by a $408,000
decrease in interest income on short-term investments.  Loans, including
those held for sale, increased $31,161,000, or 19.51 percent, from
December 31, 1995 to December 31, 1996.  Interest and fees on loans
totaled $8,497,000 for the six months ended December 31, 1996, compared
to $7,307,000 for the six months ended December 31, 1995, an increase of
$1,190,000, or 16.29 percent.  Total interest expense was $4,254,000 for
the six months ended December 31, 1996, compared to $4,169,000 for the
same period in 1995, an increase of $85,000, or 2.04 percent.  Total
interest bearing deposits and repurchase agreements increased
$5,489,000, or 3.10 percent from December 31, 1995 to December 31, 1996. 
Interest bearing transaction account balances decreased $2,445,000 from
December 31, 1995 to December 31, 1996, and time deposits outstanding
increased $8,168,000 for the same period.  Repurchase agreements
decreased approximately $234,000 or 1.89 percent, from December 31, 1995
to December 31, 1996, as fewer corporate customers utilized the Bank's
Sweep Agreement.  

Average earning assets increased to $224,132,000 during the six months
ended December 31, 1996.  This represents an approximate increase of
4.90 percent compared to $213,662,000 for the six months ended December
30, 1995.  The tax-equivalent yield on average earning assets was 8.81
percent for the six months ended December 31, 1996, compared to 8.53
percent for the six months ended December 31, 1995.  Total interest
expense to average interest bearing liabilities was 4.45 percent for the
six months ended December 31, 1996, compared to 4.54 percent for the six
months ended December 31, 1995.  This results in a tax-equivalent net
interest margin (net tax-equivalent interest income divided by average
earning assets) of 5.04 percent and 4.66 percent for the six months
ended December 31, 1996 and 1995, respectively.  The increase in average
earning assets and the increase in margin resulted in net interest
income increasing by $649,000, or 13.28 percent.  The increase in
interest margin is a trend that management anticipates will level off
and remain stable.








                      

                            Page 9 of 15

RESULTS OF OPERATIONS (cont.)

The provision for loan losses totaled $240,000 for both six month
periods ended December 31, 1996 and December 31, 1995.  Net chargeoffs 
for the six months ended December 31, 1996 totaled $6,000.  Net
chargeoffs (recoveries) by loan type aggregated $(4,000) for commercial
and agricultural loans, $37,000 for consumer loans, $(42,000) for real
estate loans, and $15,000 for credit card loans.  On December 31, 1996,
the allowance for loan losses totaled $2,975,000 or 1.56 percent of
loans, compared to $2,741,000 or 1.57 percent of loans on June 30, 1996,
and $2,735,000 or 1.71 percent of loans at December 31, 1995.  The
provision is determined by management based 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. 
Impaired loans are also identified and evaluated as part of that
analysis.  The amount of the reserve allocated to impaired loans is
determined based upon the present value of estimated future cash flows
or the present value of the collateral securing the loans.  In general,
all loans included on the watch list are evaluated for impairment. 
However, small dollar consumer and residential mortgage loans are
evaluated collectively as opposed to individually for impairment.  At
December 31, 1996, management designated $979,000 of loans as impaired
and allocated $125,000 of the allowance to such loans compared to
$1,233,000 of loans and $125,000 of the allowance at June 30, 1996.  A
summary of management's calculation of the adequacy of the Bank's loan
loss reserve is presented below for both December 31, 1996 and December
31, 1995.

                                            December 31,  
                                          1996        1995
Specific Allocations:
  Allocated to impaired loans        $  125,000  $  185,000
  Allocated to other loans              620,000     438,000   
  Allocated to types of loans           358,000     643,000   
                                     ----------  ----------   
                                      1,103,000   1,266,000 
Unallocated                           1,872,000   1,469,000    
                                     ----------  ---------- 
ACTUAL BALANCE OF RESERVE            $2,975,000  $2,735,000
                                     ==========  ==========  








               
                            Page 10 of 15

RESULTS OF OPERATIONS (cont.)

The 1996 performance of the Bancorp's agricultural customers followed
historical trends and were not adversely affected by the long planting
season or dry weather conditions experienced last year.  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 $2,275,000 at
December 31, 1996, compared to $2,373,000 at June 30, 1996. 
Non-performing loans at December 31, 1996 represented 1.19 percent of
total loans and 76.47 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,  
                                   1996                        1996    
 
Real Estate Loans              $  200,000 (2)             $  104,000  
Consumer Loans                    216,000                    134,000  
Commercial and Agricultural     1,859,000 (3)              2,135,000(1)  
                               ----------                 ----------   
                               $2,275,000                 $2,373,000   
                               ==========                 ==========  

 
Notes:
  1.  Includes five agricultural loans totaling $632,000 on non-
      accrual, two commercial real estate loans totaling $361,000
      on non-accrual, one agricultural credit past due more than 
      90 days in the amount of $280,000, two commercial loans past 
      due more than 90 days totaling $114,000, four restructured 
      agricultural loans totaling $579,000, and two restructured
      commercial loans in the amount of $169,000.
  2.  Includes three residential mortgages totaling $177,000 past 
      due more than 90 days, and one residential mortgage loan 
      totaling $23,000 on non-accrual.
  3.  Includes four agricultural loans totaling $579,000 on non-accrual,
      one commercial loan totaling $3,000 on non-accrual, two commercial
      real estate loans totaling $361,000 on non-accrual, three  
      commercial loans past due more than 90 days in the amount of 
      $173,000, four restructured agricultural loans totaling $578,000,
      and two commercial restructured loans in the amount of $165,000.
      The nonaccrual loans are deemed to be impaired, as defined by FAS
      No. 114, whereas the restructured loans were recast prior to June
      30, 1995, are currently performing as agreed, and are not 
      considered to be impaired loans.









                            Page 11 of 15

RESULTS OF OPERATIONS (cont.)

Non-interest income increased 20.19 percent or $150,000 to $893,000 for
the six months ended December 31, 1996, compared to $743,000 for the six
months ended December 31, 1995.  Other income, consisting of gains on
the sale of mortgage loans, commissions on credit life insurance sales,
safe deposit box rent, and other miscellaneous income increased 41.31
percent or $107,000 to $366,000 for the six months ended December 31,
1996 compared to $259,000 for the six months ended December 31, 1995. 
This increase is primarily attributable to commission income received
for a new check card program and income recognized for the cash
surrender value of a death benefit insurance policy owned by the Bank. 

Non-interest expense increased $3,000 and totaled $3,460,000 for the six
months ended December 31, 1996, compared to $3,457,000 for the six
months ended December 31, 1995.  Salaries and employee benefits expense
decreased .52 percent or $10,000, to $1,906,000.  Equipment expense
increased 6.00% or $17,000 and totaled $300,000 for the six months ended
December 31, 1996 compared to $283,000 for the six months ended December
31, 1995.

Income tax expense increased to $991,000 for the six months ended
December 31, 1996 from $666,000 for the same period in the prior year. 
The increase was primarily driven by increased income before income tax
but the effective tax rate also increased to 36 percent this year from
34 percent in 1996 due primarily to lower relative levels of tax exempt
income.


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
$9,791,000 at December 31, 1996.  In addition, the Bancorp has $895,000
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
18.45 percent on December 31, 1996.  At December 31, 1996 Bancorp had
unfunded loan commitments of $43,669,000, primarily available balances
on customer lines of credit, and outstanding letters of credit of
$970,000.  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 12 of 15 
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 1997, and at December 31, 1996, 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 the 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, 1996: 


                     Tier I Capital                  $25,464,000
                     Total Capital                   $27,947,000
                     Risk Weighted Assets           $198,139,000
                     Leverage Ratio                        10.50%
                     Risk-based Capital; Tier I            12.85%
                     Total Risk-based Capital              14.10%



On October 14, 1996 a 2-for-1 stock split was declared, increasing the
number of shares outstanding from 577,058 to 1,154,116, to shareholders
of record as of October 28, 1996.  All previous per share data has been
revised to reflect this stock split.  On January 13, 1997, the Bancorp
declared a $.22 per share quarterly dividend totaling $254,000, payable
February 14, 1996 to shareholders of record as of January 27, 1997.  The
book value of common stock on December 31, 1996 was $22.06 based on
1,154,116 shares outstanding.





                        



                            Page 13 of 15
                           PART II  OTHER INFORMATION
                              THE FARMERS BANCORP
                                December 31, 1996

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.  Exhibit #27 - Financial data statement as of December 31, 1996.

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














                            Page 14 of 15 

                           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 13, 1997                -------------------------------  
                             
                                        Tom Rohrabaugh, President
                                         (Principal Executive Officer)



Date:  February 13, 1997                -------------------------------- 
  
                                         Karen I. Miller
                                         Vice President and Treasurer
                                         (Principal Financial and     
                                          Accounting Officer)



















                                  











                            Page 15 of 15