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 September 30, 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)

                                  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 SEPTEMBER 30, 1996


       common stock, no par value                    577,058














                            Page 1 of 16
                                  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                                     15 

   Item 6.  Exhibits and Reports on Form 8-K                      15 

            Signatures                                            16  



                                  











                                  



                            Page 2 of 16<PAGE>
 
              PART I,  FINANCIAL INFORMATION                    
               ITEM 1:  FINANCIAL STATEMENT                 
                   THE FARMERS BANCORP                      
             CONSOLIDATED STATEMENTS OF CONDITION                
                   (Dollars in Thousands)                        
                                        
               ASSETS                       Sept 30       June 30    
                                              1996          1996
                                             -----------------------
Cash and due from banks                        7602           9889
Federal funds sold                                0              0
Money market investments                          0              0
                                             -----------------------
   Total cash and cash equivalents             7602           9889
                                        
Available-for-sale securities                 17147          18610
Held-to-maturity securities                   22795          23654
Loans held for sale                             646            492
Total loans                                  183631         173556
   Allowance for loan losses                  -2847          -2741
                                             -----------------------
     Net loans                               180784         170815
Premises and equipment                         4743           4641
Restricted stock, at cost                       771            771
Accrued income and other assets                7947           8172   
                                             -----------------------
     Total Assets                            242435         237044
                                             =======================
               LIABILITIES
Deposits                                     
   Demand                                     23501          22115
   Savings                                    65579          67158
   Time, $100,000 and over                    21829          20250
   Other time                                 79681          81966 
                                             -----------------------
                                             190590         191489
                                        
Short-term borrowings                         15522          12752
Other borrowings                               9171           6259
Accrued interest payable                       1030            958
Other liabilities                              1381           1459
                                             -----------------------
     Total Liabilities                       217694         212917
                                        
               SHAREHOLDERS' EQUITY                         
Common stock, (no par value-2,400,000 shares authorized          
   and 577,058 shares issued and outstanding)  2885           2885
Additional paid-in capital                     5101           5101
Retained earnings                             16810          16235
Net unrealized gain on available-for-sale                         
   securities (net of tax)                      (55)           (94)
                                             -----------------------
     Total Shareholders' Equity               24741          24127
                                             -----------------------
  Total Liabilities & Shareholders' Equity   242435         237044
                                             =======================
See accompanying notes to consolidated financial statements           
                                        
                            Page 3 of 16
               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 Sept 30
                                                          1996   1995  
                                                         -------------  
Interest Income:                                                 
   Interest and fees on loans                              4151  3652 
   Interest on securities:                                            
     Taxable                                                530   510 
     Tax exempt                                             128   136 
   Interest on short-term investments                        25   209 
                                                         --------------  
         Total Interest Income                             4834  4507
Interest Expense:                                        --------------  
   Interest on deposits                                    1910  1846 
   Interest on short-term borrowings                        114   162 
   Interest on other borrowings                              99    76 
                                                         --------------
         Total Interest Expense                            2123  2084 
                                                         --------------  
         Net Interest Income                               2711  2423 
Provision for loan losses                                   120   120 
                                                         --------------
                                                           2591  2303 
Other income:                                            -------------- 
   Trust fees                                                65    61 
   Service charge income                                    196   181 
   Other                                                    163    98 
                                                         --------------
          Total Other Income                                424   340 
Other expenses:                                          --------------
   Salaries and employee benefits                           959   904 
   Occupancy expense                                        143   146 
   Equipment expense                                        143   141 
   Other operating expenses                                 494   472 
                                                         -------------- 
          Total Other Expense                              1739  1663 
                                                         -------------- 
         Income Before Income Tax                          1276   980 
Less:  Income taxes                                         459   338 
                                                         --------------
     Net Income                                             817   642 
Per share data:                                          ==============
   Net income per share                                    1.42  1.11
                                                         ==============
   Dividends per share                                      .42   .40 
                                                         ==============
See accompanying notes to consolidated financial statements
                         
                                                       
                              
                            Page 4 of 16                              
             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                           817          642
                    
Dividends                           (242)        (231) 
                                   
Change in net unrealized gain on                       
  available-for-sale securities       39          (23) 
                                  -------------------  
Balance - September 30             24741        23209  
                                  ===================
                                   
                                   
                                   
                                   
See accompanying notes to consolidated financial statements           
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                                       

















                            Page 5 of 16                    

                                 PART I, FINANCIAL INFORMATION        
                                  ITEM I:  FINANCIAL STATEMENT
                                      THE FARMERS BANCORP                
                              CONSOLIDATED STATEMENTS OF CASH FLOWS   
                                      (Dollars in Thousands)          
                                                                         
                                                      Three Months Ended
                                                         September 30
CASH FLOWS FROM OPERATING ACTIVITIES                     1996     1995

Net income                                                817      642 
Adjustments to reconcile net income to net cash        
  from operating activities                               456      497 
                                                        ---------------  
   Net cash from operating activities                    1273     1139

CASH FLOWS FROM INVESTING ACTIVITIES                        
   Proceeds from maturities and principal repayments on
    available-for-sale securities                        1524      428 
   Purchases of available-for-sale securities             -0-    (1000)
   Proceeds from maturities and principal repayments
    on investment securities                              849     3056 
   Purchase of investment securities                      -0-    (1967)
   Loans made to customers, net of principal
    collections thereon                                (10243)   (3200)
   Net change in interest-bearing balances with
    financial institutions                                -0-      -0- 
   Purchase of life insurance policies                    -0-      -0-
   Property and equipment expenditures                   (231)    (298) 
                                                        ---------------
     Net cash from investing activities                 (8101)   (2981) 

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase/(decrease) in deposits                   (899)    7325 
   Net increase/(decrease) in short term borrowings      2770    (6285) 
   Proceeds from other borrowings                        3000      -0- 
   Repayment of other borrowings                          (88)     (82) 
   Dividends paid                                        (242)    (231)
                                                        --------------- 
    Net cash from financing activities                   4541      727 
                                                        --------------- 
NET CHANGE IN CASH AND CASH EQUIVALENTS                 (2287)   (1115)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR           9889    19085 
                                                        --------------- 
CASH AND CASH EQUIVALENTS AT END OF YEAR                 7602    17970
                                                        ===============





See accompanying notes to consolidated financial statements




                        
                            Page 6 of 16                                 
                        PART I  FINANCIAL INFORMATION
                        ITEM 1:  FINANCIAL STATEMENTS
                            THE FARMERS BANCORP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS        
                             September 30, 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, 1995, the Bancorp adopted Financial Accounting
Standard (FAS) No. 114, "Accounting By Creditors For Impairment of a
Loan", as amended by FAS No. 118, which 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.  Management evaluates loans for
impairment in conjunction with the quarterly evaluation of the allowance
for loan losses.  Generally, such evaluation is limited to large
commercial and commercial real estate loans.  Consumer loans and
mortgage loans secured by 1-to 4 family residential property are
generally not evaluated for impairment.  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
September 30, 1996 management has identified $925,000 of loans as
impaired and allocated $125,000 of the Bank's $2.8 million reserve for
loan losses for those loans.

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 will be to increase the gain, or
reduce the loss, recognized upon the sale of a mortgage loan and will
reduce future servicing fee income.  During 1996, application of this
Standard did not significantly effect the Bancorp's financial condition
or results of operation.


                            Page 7 of 16

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

                               September 30, 1996

FINANCIAL CONDITION:

Total assets increased 2.27 percent from June 30, 1996 to September 30,
1996 and totaled $242,435,000 at period end.  During the three months
ended September 30, 1996 no securities were purchased.  However, during
the same period, $2,322,000 of securities matured, were repaid or were
called prior to their maturity.  As a result, total securities decreased
$2,322,000 or 5.49 percent.  The following table presents, in thousands,
the amortized cost and fair value of securities:

SEPTEMBER 30, 1996  Amortized     Gross              Gross        Fair 
                       Cost   Unrealized Gains  Unrealized Losses  Value 
 
Held-to-maturity
 Securities            $22,795        $219             ($157)    $22,857 
Available-for-sale   
 Securities             17,237          47              (137)     17,147 

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 $7,947,000 at September 30, 1996, and include
insurance policies with a current cash surrender value of $4,541,000
that were purchased in conjunction with the formation of deferred
compensation and death benefit programs.

Other borrowings increased to $9,171,000 and consist primarily of
Federal Home Loan Bank advances and Federal Reserve Seasonal
Agricultural Line Borrowings which were $5,686,000 and $3,000,000
respectively at September 30, 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.  The Federal Reserve
Seasonal Agricultural Borrowings are utilized to fund the fluctuation of
seasonal demand of the Bancorp's agricultural customer's operating lines
of credit.  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 $485,000.  






                            Page 8 of 16
RESULTS OF OPERATIONS:

The Bancorp reported net income, for the first three months of the
fiscal year ending June 30, 1997 of $817,000, as compared to $642,000
for the prior year.  Earnings per share were $1.42 and  $1.11,
respectively, based on an average of 577,058 shares outstanding for the
three months ended September 30, 1996 and September 30, 1995.  The
factor that most affected 1996's performance, as compared to 1995 is the
continued increase in loan demand.  

Total interest income was $4,834,000 for the three months ended
September 30, 1996, compared to $4,507,000 for the three months ended
September 30, 1995, an increase of 7.26 percent.  This increase resulted
from a 13.66 percent increase in interest and fees on loans offset by a
$184,000 decrease in interest income on short-term investments.  Loans,
including those held for sale, increased $24,264,000, or 15.16 percent,
from September 30, 1995 to September 30, 1996.  Interest and fees on
loans totaled $4,151,000 for the three months ended September 30, 1996,
compared to $3,652,000 for the three months ended September 30, 1995, an
increase of $499,000, or 13.66 percent.  Total interest expense was
$2,123,000 for the three months ended September 30, 1996, compared to
$2,084,000 for the same period in 1995, an increase of $39,000, or 1.87
percent.  Total interest bearing deposits and repurchase agreements
increased $2,689,000, or 1.53 percent from September 30, 1995 to
September 30, 1996.  Interest bearing transaction account balances
decreased $752,000 from September 30, 1995 to September 30, 1996, and
time deposits outstanding increased $6,226,000 for the same period. 
Repurchase agreements decreased approximately $2,785,000 or 19.33
percent, from September 30, 1995 to September 30, 1996, as not as many
corporate customers utilized the Bank's Sweep Agreement.  

Average earning assets increased to $222,324,000 during the three months
ended September 30, 1996.  This represents an approximate increase of
4.84 percent compared to $212,051,000 for the three months ended
September 30, 1995.  The tax-equivalent yield on average earning assets
was 8.78 percent for the three months ended September 30, 1996, compared
to 8.55 percent for the three months ended September 30, 1995.  Total
interest expense to average interest bearing liabilities was 4.46
percent for the three months ended September 30, 1996, compared to 4.57
percent for the three months ended September 30, 1995.  This results in
a tax-equivalent net interest margin (net tax-equivalent interest income
divided by average earning assets) of 4.98 percent and 4.65 percent for
the three months ended September 30, 1996 and 1995, respectively.  The
increase in average earning assets and the increase in margin resulted
in net interest income increasing by $288,000, or 11.89 percent.  The
increase in interest margin is a trend that management anticipates will
level off and remain stable.









                      

                            Page 9 of 16

RESULTS OF OPERATIONS (cont.)

The provision for loan losses totaled $120,000 for both three month
periods ended September 30, 1996 and September 30, 1995.  Net chargeoffs
(recoveries) for the three months ended September 30, 1996 totaled
$14,000.  Net chargeoffs (recoveries) by loan type aggregated $(3,000)
for commercial and agricultural loans, $14,000 for consumer loans, $0
for real estate loans, and $3,000 for credit card loans.  On September
30, 1996, the allowance for loan losses totaled $2,847,000 or 1.54
percent of loans, compared to $2,741,000 or 1.57 percent of loans on
June 30, 1996, and $2,678,000 or 1.67 percent of loans at September 30,
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. 
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 $925,000 of
loans as impaired at September 30, 1996 and allocated $125,000 of the
allowance for loan losses to such loans, as compared to $1,234,000 and
$225,000, respectively, as of July 1, 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 September 30, 1996 and
September 30, 1995.

                                            September 30,  
                                          1996        1995
Specific Allocations:
  Allocated to impaired loans        $  125,000  $  215,000
  Allocated to other loans              690,000     599,000   
  Allocated to types of loans           358,000     763,000   
                                     ----------  ----------   
                                      1,173,000   1,577,000 
Unallocated                           1,674,000   1,101,000    
                                     ----------  ---------- 
ACTUAL BALANCE OF RESERVE            $2,847,000  $2,678,000
                                     ==========  ==========  




               
                            Page 10 of 16

RESULTS OF OPERATIONS (cont.)

The Bancorp anticipates receiving lower levels of paybacks from many of
its agricultural customers from the 1996 crop season.  This is due to
unfavorable weather conditions during the spring and early 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, increased to $2,577,000 at
September 30, 1996, compared to $2,373,000 at June 30, 1996. 
Non-performing loans at September 30, 1996 represented 1.40 percent of
total loans and 90.52 percent of the Reserve for Loan Losses.  The
following table shows the composition of non-performing loans at both
period ends.

                               September 30,                 June 30,  
                                   1996                        1996    
 
Real Estate Loans              $  260,000 (2)             $  104,000  
Consumer Loans                    224,000                    134,000  
Commercial and Agricultural     2,093,000 (3)              2,135,000(1)  
                               ----------                 ----------   
                               $2,577,000                 $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 four residential mortgages totaling $136,000 past 
      due more than 90 days, and one construction mortgage loan 
      totaling $124,000 past due more than 90 days.
  3.  Includes four agricultural loans totaling $564,000 on non-accrual, 
      two commercial real estate loans totaling $361,000 on non-accrual,
      one agricultural loan past due more than 90 days in the amount of
      $280,000, three commercial loans past due more than 90 days in the
      amount of $142,000, four restructured agricultural loans totaling
      $579,000, and two commercial restructured loans in the amount of 
      $167,000.  The nonaccrual loans are deemed to be impaired, as
      defined by FAS No. 114.











                            Page 11 of 16

RESULTS OF OPERATIONS (cont.)

Non-interest income increased 24.71 percent or $84,000 to $424,000 for
the three months ended September 30, 1996, compared to $340,000 for the
three months ended September 30, 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 66.33 percent or $65,000 to $163,000 for the three months
ended September 30, 1996 compared to $98,000 for the three months ended
September 30, 1995.  This increase is primarily attributable to
commission income received for a new check card program, income
recognized for the cash surrender value of a death benefit insurance
policy owned by the Bank and an increase in servicing fees and gains on
mortgages sold into the secondary market.

Non-interest expense increased 4.57 percent or $76,000 and totaled
$1,739,000 for the three months ended September 30, 1996, compared to
$1,663,000 for the three months ended September 30, 1995.  The majority
of the increase was in salaries and employee benefits expense which
increased 6.08 percent or $55,000, to $959,000.  Other operating
expenses increased by 4.66 percent or $22,000 for the three months ended
September 30, 1996 as compared to September 30, 1995.  This increase is
attributable to higher computer-related expenses resulting from the
purchase of upgrades of computer equipment and software for the Bank's
in-house computer system.  


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
$11,928,000 at September 30, 1996.  In addition, the Bancorp has 
$646,000 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 20.30 percent on September 30, 1996.  At September 30,
1996 Bancorp had unfunded loan commitments of $40,210,000, primarily
available balance on customer lines of credit, and outstanding letters
of credit of $662,000.  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 16 
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 three months of fiscal 1997, and at September 30, 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 September 30, 1996: 


                     Tier I Capital                  $24,796,000
                     Total Capital                   $27,205,000
                     Risk Weighted Assets           $192,304,000
                     Leverage Ratio                        10.40%
                     Risk-based Capital; Tier I            12.89%
                     Total Risk-based Capital              14.15%



On October 14, 1996, the Bancorp declared a $.22 per share quarterly
dividend, totaling $254,000, payable November 15, 1996 to shareholders
of record as of October 28, 1996.  The book value of common stock on
September 30, 1996 was $42.87 per share, based on 577,058 shares
outstanding.












                            Page 13 of 16
                           PART II  OTHER INFORMATION
                              THE FARMERS BANCORP
                               September 30, 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

The annual meeting of the shareholders of the Farmers Bancorp was held
on Thursday September 19, 1996.  At that meeting the following directors
were elected for three years:  Fred K Agnew, Joe C. Doan, and Jack W.
Ransom.  The three join the following holdover directors:  Ralph M.
Butler, Joseph V Lahrman, Rawl V. Ransom, Tom Rohrabaugh, Stephen G.
Rothenberger, R. Kent Ryan Jr., and Stanley K. Smith.  Armean L. wright
announced his retirement from the Board of Directors effective September
1996.  He served faithfully with dedication and distinction for the past
twenty-eight years.  Of the 577,058 shares outstanding, 314,503 shares
were voted at the annual meeting in connection with the election of
directors as follows:  297,831 for; 16,408 against; with 264
abstentions.  

A vote was also taken to approve an increase in the number of authorized
shares of the Farmers Bancorp from 600,000 to 2,400,000.  Of the 577,058
shares outstanding 314,503 shares were voted as follows:  309,639 for;
3,180 against; with 1,684 abstentions.                   








                            Page 14 of 16 




Item 5.  OTHER INFORMATION

None to be reported.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

  A.  Exhibits #27 - Financial data statement as of September 30, 1996.

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









































                          




                            Page 15 of 16

                           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:  November 13, 1996                -------------------------------  
                             
                                        Tom Rohrabaugh, President
                                         (Principal Executive Officer)



Date:  November 13, 1996                -------------------------------- 
  
                                         Karen I. Miller
                                         Vice President and Treasurer
                                         (Principal Financial and     
                                          Accounting Officer)



















                                  











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