| x | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

|   | Farmers      Capital Bank Corporation                       |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact      name of registrant as specified in its charter) |   |

| Kentucky                                                                      |   | 61-1017851                                       |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State      or other jurisdiction of incorporation      or organization) |   | (I.R.S.      EmployerIdentification      Number) |

| P.O.      Box 309, 202 West Main St.          |   |            |
|-----------------------------------------------|--------|-----------------|
| Frankfort,      Kentucky                      |   | 40601           |
| (Address      of principal executive offices) |   | (Zip      Code) |

| Common      Stock - $.125 per share Par Value |   | The      NASDAQ Global Select Market            |
|-----------------------------------------------|--------|-------------------------------------------------|
| (Title      of each class)                    |   | (Name      of each exchange on whichregistered) |

|   | None                  |   |
|--------|-----------------------|--------|
|   | (Title      of Class) |   |

| Yes      o | No      x |
|------------|-----------|

| Yes      o | No      x |
|------------|-----------|

| Yes      x | No      o |
|------------|-----------|

| Large      accelerated filer o | Accelerated      filer x | Non-accelerated      filer o |
|--------------------------------|--------------------------|------------------------------|

----

| Yes      o | No      x |
|------------|-----------|

PartIII

index of exhibits 

----

|          |              |                                                                                                              | Page   |
|---------------|-------------------|-------------------------------------------------------------------------------------------------------------------|--------|
| Part      I   |              |                                                                                                              |   |
|          |              |                                                                                                              |   |
|          | Item      1.      | Business                                                                                                          | 4      |
|          | Item      1A.     | Risk Factors                                                                                                      | 12     |
|          | Item      1B.     | Unresolved Staff Comments                                                                                         | 13     |
|          | Item      2.      | Properties                                                                                                        | 14     |
|          | Item      3.      | Legal Proceedings                                                                                                 | 15     |
|          | Item      4.      | Submission of Matters to a Vote of Security      Holders                                                          | 15     |
|          |              |                                                                                                              |   |
| Part      II  |              |                                                                                                              |   |
|          |              |                                                                                                              |   |
|          | Item      5.      | Market for Registrant's Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 15     |
|          | Item      6.      | Selected Financial Data                                                                                           | 18     |
|          | Item      7.      | Management's Discussion and Analysis of Financial Condition      and Results of Operations                        | 19     |
|          | Item      7A.     | Quantitative and Qualitative Disclosures About Market      Risk                                                   | 41     |
|          | Item      8.      | Financial Statements and Supplementary    Data                                                                    | 42     |
|          | Item      9.      | Changes in and Disagreements With Accountants on Accounting      and Financial Disclosure                         | 77     |
|          | Item      9A.     | Controls and Procedures                                                                                           | 77     |
|          | Item      9B.     | Other Information                                                                                                 | 78     |
|          |              |                                                                                                              |   |
| Part      III |              |                                                                                                              |   |
|          |              |                                                                                                              |   |
|          | Item      10.     | Directors, Executive Officers and Corporate      Governance                                                       | 78     |
|          | Item      11.     | Executive Compensation                                                                                            | 79     |
|          | Item      12.     | Security Ownership of Certain Beneficial Owners      and  Management and Related Stockholder    Matters | 79     |
|          | Item      13.     | Certain Relationships and Related      Transactions                                                               | 79     |
|          | Item      14.     | Principal Accounting Fees and Services                                                                            | 79     |
|          |              |                                                                                                              |   |
| Part      IV  |              |                                                                                                              |   |
|          |              |                                                                                                              |   |
|          | Item      15.     | Exhibits, Financial Statement Schedules                                                                           | 79     |
|          |              |                                                                                                              |   |
|          | Signatures        | 81                                                                                                                |
|          | Index of Exhibits | 82                                                                                                                |

----

Item 1.Business

Risk Factors
Forward-Looking Statements

----

| Tier   | Entity                                              |
|--------|-----------------------------------------------------|
| 1      | Farmers      Capital Bank Corporation, Frankfort KY |
|   |                                                |   |
| 2      |                                                | United      Bank & Trust Co., Versailles KY 100% |
| 3      |                                                |   | EV      Properties, Inc., Versailles KY 100% |
|   |                                                |   |   |
| 2      |                                                | The      Lawrenceburg Bank and Trust Company, Harrodsburg KY100% |
|   |                                                |   |
| 2      |                                                | Farmers      Bank & Capital Trust Co., Frankfort KY 100% |
| 3      |                                                |   | Farmers      Bank Realty Co., Frankfort KY 100% |
| 3      |                                                |   | Leasing      One Corporation, Frankfort KY 100% |
| 3      |                                                |   | EG      Properties, Inc., Frankfort KY 100% |
| 3      |                                                |   | Austin      Park Apartments, LTD, Frankfort KY 99% |
| 3      |                                                |   | Frankfort      Apartments II, LTD, Frankfort KY 99.9% |
| 3      |                                                |   | Farmers      Capital Insurance Corporation, Frankfort KY 100% |
| 4      |                                                |   |   | Farmers      Fidelity Insurance Agency, LLP, Lexington KY 50% |
|   |                                                |   |   |   |
| 2      |                                                | Citizens      Bank of Jessamine County, Nicholasville KY 100% |
|   |                                                |   |
| 2      |                                                | First      Citizens Bank, Elizabethtown KY 100% |
|   |                                                |   |   |
| 2      |                                                | Farmers      Bank and Trust Company, Georgetown KY 100% |
|   |                                                |   |   |
| 2      |                                                | Citizens      Bank of Northern Kentucky, Inc., Newport, KY 100% |
|   |                                                |   |   |
| 2      |                                                | FCB      Services, Inc., Frankfort KY 100% |
|   |                                                |   |
| 2      |                                                | Kentucky      General Holdings, LLC, Frankfort, KY 100% |
| 3      |                                                |   | KHL      Holdings, LLC, Frankfort KY 45% (equity), 50% (voting) |
| 4      |                                                |   |   | Kentucky      Home Life Insurance Company, Frankfort KY 100% |
|   |                                                |   |   |   |
| 2      |                                                | FFKT      Insurance Services, Inc., Frankfort, KY 100% |
|   |                                                |   |   |
| 2      |                                                | Farmers      Capital Bank Trust I, Frankfort, KY 100% |
|   |                                                |   |
| 2      |                                                | Farmers      Capital Bank Trust II, Frankfort, KY 100% |
|   |                                                |   |
| 2      |                                                | Farmers      Capital Bank Trust III, Frankfort, KY 100% |
|   |                                                |   |
| 2      |                                                | Kentucky      General Life Insurance Company, Frankfort KY  (Inactive) |

----

----

----

----

----

|   | · | limit      the interest and other charges collected or contracted for by all of the      Company’s subsidiary banks; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | govern      disclosures of credit terms to consumer  borrowers; |
|--------|--------|-----------------------------------------------------------------|

|   | · | require      financial institutions to provide information to enable the public and      public officials to determine whether a financial institution is      fulfilling its obligation to help meet the housing needs of the community      it serves; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | prohibit      discrimination on the basis of race, creed, or other prohibited factors in      extending credit; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | require      all of the Company’s subsidiary banks to safeguard the personal non-public      information of its customers, provide annual notices to consumers      regarding the usage and sharing of such information and limit disclosure      of such information to third parties except under specific circumstances;      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | govern      the manner in which consumer debts may be collected by collection      agencies. |
|--------|--------|----------------------------------------------------------------------------------------------|

----

|   | · | require      disclosure of the interest rate and other terms of consumer deposit      accounts; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | impose      a duty to maintain the confidentiality of consumer financial records and      prescribe procedures for complying with administrative subpoenas of      financial records; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | govern automatic deposits to and withdrawals from deposit      accounts and customers’ rights and liabilities arising from the use of      automated teller machines and other electronic banking  services. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 1A. RiskFactors

|   | · | credit      risks of a particular borrower; |
|--------|--------|---------------------------------------------|

|   | · | changes      in economic and industryconditions; |
|--------|--------|--------------------------------------------------|

|   | · | the      duration of the loan; and |
|--------|--------|------------------------------------|

|   | · | in      the case of a collateralized loan, uncertainties as to the future value of      the collateral. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

----

|   | · | a      regular review of the quality, mix and size of the overall loan      portfolio; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | historical      loan loss experience; |
|--------|--------|---------------------------------------|

|   | · | evaluation      of non-performing loans; |
|--------|--------|------------------------------------------|

|   | · | assessment      of economic conditions and their effects on the bank’s existing portfolio;      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | the      amount and quality of collateral, including guarantees, securing      loans. |
|--------|--------|---------------------------------------------------------------------------------------|

Item 1B.Unresolved Staff Comments

----

Item 2.Properties

Notes to Consolidated FinancialStatements 

| Banking      Offices                                                |
|---------------------------------------------------------------------|
| 125      W. Main Street, Frankfort, KY                              |
| 555      Versailles Road, Frankfort, KY                             |
| 1401      Louisville Road, Frankfort, KY                            |
| 154      Versailles Road, Frankfort, KY                             |
| 1301      US 127 South, Frankfort, KY (leased)                      |
| 200      E. Main Street, Georgetown, KY                             |
| 100      Farmers Bank Drive, Georgetown, KY (leased)                |
| 100      N. Bradford Lane, Georgetown, KY                           |
| 3285      Main Street, Stamping Ground, KY                          |
| 333      W. Vine Street, Suite 102, Lexington, KY (leased)          |
| 3098      Harrodsburg Road, Lexington, KY (leased)                  |
| 100      United Bank Drive, Versailles, KY                          |
| Locust      & Green Streets, Versailles, KY                     |
| 206      N. Gratz, Midway, KY                                       |
| 128      S. Main Street, Lawrenceburg, KY                           |
| West      Park Shopping Center, Lawrenceburg, KY                    |
| 838      N. College Street, Harrodsburg, KY                         |
| 1035      Ben Ali Drive, Danville, KY (leased)                      |
| 425      W. Dixie Avenue, Elizabethtown, KY                         |
| 3030      Ring Road, Elizabethtown, KY                              |
| 111      Towne Drive (Kroger Store) Elizabethtown, KY (leased)      |
| 232      Redmar Plaza, Radcliff, KY (leased)                        |
| 4810      N. Preston Highway, Shepherdsville, KY                    |
| 157      Eastbrooke Court, Mt. Washington, KY                       |
| 103      Churchill Drive, Newport, KY                               |
| 7300      Alexandria Pike, Alexandria, KY                           |
| 164      Fairfield Avenue, Bellevue, KY                             |
| 8730      US Highway 42, Florence, KY                               |
| 34      N. Ft. Thomas Avenue, Ft. Thomas, KY (leased)               |
| 2911      Alexandria Pike, Highland Heights, KY (leased)            |
| 2006      Patriot Way, Independence, KY                             |
| 2774      Town Center Blvd., Crestview Hills, KY (leased)           |
| 201      N. Main Street, Nicholasville, KY                          |
| 995      S. Main Street (Kroger Store), Nicholasville, KY  (leased) |
| 986      N. Main Street, Nicholasville, KY                          |
| 106      S. Lexington Avenue, Wilmore, KY                           |

----

Item 3. LegalProceedings

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

Item 5. Marketfor Registrant's Common Equity, Related Stockholder Matters and Issuer Purchasesof Equity Securities

----

|                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                      |    | 2002   |   |   | 2003   |   |   | 2004   |   |   | 2005   |   |   | 2006   |   |   | 2007   |   |
| Farmers      Capital Bank Corporation                         |         | $      | 100.00 |   |   | $      | 106.31 |   |   | $      | 133.74 |   |   | $      | 103.81 |   |   | $      | 122.13 |   |   | $ | 101.02 |   |
| NASDAQ      Composite                                         |         |   | 100.00 |   |   |   | 149.75 |   |   |   | 164.64 |   |   |   | 168.60 |   |   |   | 187.83 |   |   |   | 205.22 |   |
| Southeastern      Banks Under 1 Billion Market Capitalization |         |   | 100.00 |   |   |   | 138.82 |   |   |   | 162.94 |   |   |   | 164.43 |   |   |   | 192.13 |   |   |   | 142.34 |   |

----

| NASDAQ      Market Makers              |                            |
|----------------------------------------|---------------------------------|
| J.J.B.      Hilliard, W.L. Lyons, Inc. | Morgan,      Keegan and Company |
| (502)      588-8400                    | (800)      260-0280             |
| (800)      444-1854                    |                            |

| UBS      Securities, LLC | Howe      Barnes Investments, Inc. |
|--------------------------|------------------------------------|
| (859)      269-6900      | (800)      621-2364                |
| (502)      589-4000      |                               |

Shareholder Information
Stock Prices
Note 18 

----

Item 6.Selected Financial Data

| Selected      Financial Highlights                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|--------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                                           |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| December      31,(In      thousands, except per share data)                    |   | 2007   |      |   |   | 2006   | 3         |   | 2005   |   |      | 2004   |   |   | 2003      |   |
| Results      of Operations                                                     |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |
| Interest      income                                                           |   | $      | 114,257   |   |   | $      | 92,340    |   |   | $      | 65,651    |   |   | $      | 55,296    |   |   | $ | 52,218 |   |
| Interest      expense                                                          |   |   | 56,039    |   |   |   | 41,432    |   |   |   | 24,409    |   |   |   | 16,729    |   |   |   | 17,565 |   |
| Net      interest income                                                       |   |   | 58,218    |   |   |   | 50,908    |   |   |   | 41,242    |   |   |   | 38,567    |   |   |   | 34,653 |   |
| Provision      for loan losses                                                 |   |   | 3,638     |   |   |   | 965       |   |   |   | 622       |   |   |   | 856       |   |   |   | 1,895 |   |
| Noninterest      income                                                        |   |   | 24,157    |   |   |   | 20,459    |   |   |   | 19,867    |   |   |   | 17,164    |   |   |   | 17,179 |   |
| Noninterest      expense                                                       |   |   | 58,823    |   |   |   | 53,377    |   |   |   | 42,164    |   |   |   | 38,812    |   |   |   | 34,555 |   |
| Income      from continuing operations                                         |   |   | 15,627    |   |   |   | 13,665    |   |   |   | 14,532    |   |   |   | 13,064    |   |   |   | 12,267 |   |
| Income      from discontinued operations1                                      |   |   |      |   |   |   | 7,707     |   |   |   | 1,240     |   |   |   | 328       |   |   |   | 696 |   |
| Net      income                                                                |   |   | 15,627    |   |   |   | 21,372    |   |   |   | 15,772    |   |   |   | 13,392    |   |   |   | 12,963 |   |
| Per      Share Data                                                            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic:                                                                         |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Income      from continuing operations                                         |   | $      | 2.03      |   |   | $      | 1.82      |   |   | $      | 2.13      |   |   | $      | 1.94      |   |   | $ | 1.82 |   |
| Net      income                                                                |   |   | 2.03      |   |   |   | 2.85      |   |   |   | 2.31      |   |   |   | 1.99      |   |   |   | 1.93 |   |
| Diluted:                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Income      from continuing operations                                         |   |   | 2.03      |   |   |   | 1.82      |   |   |   | 2.12      |   |   |   | 1.93      |   |   |   | 1.81 |   |
| Net      income                                                                |   |   | 2.03      |   |   |   | 2.84      |   |   |   | 2.30      |   |   |   | 1.98      |   |   |   | 1.92 |   |
| Cash      dividends declared                                                   |   |   | 1.32      |   |   |   | 1.43      |   |   |   | 1.32      |   |   |   | 1.32      |   |   |   | 1.29 |   |
| Book      value                                                                |   |   | 22.82     |   |   |   | 22.43     |   |   |   | 20.87     |   |   |   | 19.38     |   |   |   | 18.83 |   |
| Selected      Ratios                                                           |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Percentage      of income from continuing operations to:                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Average      shareholders’ equity (ROE)                                  |   |   | 8.88      | %      |   |   | 8.49      | %      |   |   | 10.81     | %      |   |   | 10.21     | % |   |   | 9.83 | % |
| Average      total assets2      (ROA)                                          |   |   | .83       |   |   |   | .85       |   |   |   | 1.10      |   |   |   | 1.07      |   |   |   | 1.07 |   |
| Percentage      of dividends declared to income from continuing operations     |   |   | 64.52     |   |   |   | 78.89     |   |   |   | 61.67     |   |   |   | 68.10     |   |   |   | 70.70 |   |
| Percentage      of average shareholders’ equity to average total assets2 |   |   | 9.33      |   |   |   | 10.04     |   |   |   | 10.19     |   |   |   | 10.45     |   |   |   | 10.88 |   |
| Total      shareholders’ equity                                          |   | $      | 168,491   |   |   | $      | 177,063   |   |   | $      | 154,236   |   |   | $      | 131,450   |   |   | $ | 126,471 |   |
| Total      assets                                                              |   |   | 2,068,247 |   |   |   | 1,825,108 |   |   |   | 1,673,943 |   |   |   | 1,399,896 |   |   |   | 1,324,341 |   |
| Long-term      debt                                                            |   |   | 316,309   |   |   |   | 87,992    |   |   |   | 75,291    |   |   |   | 51,265    |   |   |   | 53,932 |   |
| Weighted      Average Shares Outstanding                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic                                                                          |   |   | 7,706     |   |   |   | 7,511     |   |   |   | 6,831     |   |   |   | 6,737     |   |   |   | 6,727 |   |
| Diluted                                                                        |   |   | 7,706     |   |   |   | 7,526     |   |   |   | 6,864     |   |   |   | 6,780     |   |   |   | 6,770 |   |

Note1

----

Item 7.Management’s Discussion and Analysis of Financial Condition and Results ofOperations

----

Forward-Looking Statements

----

----

|   | · | During      2007, the general trend of the interest rate environment has been sharply      lower, particularly with short-term rates. In the final half of 2007, the      Federal Reserve Board (“Fed”) lowered the short-term federal funds rate by      a total of 100 basis points and at year-end 2007 the rate was 4.25%. The      prime interest rate, which significantly impacts the Company’s loan      portfolio and certain deposits, declined in a similar      manner.  Yields on U.S. Treasury obligations, which impact the      value of bond investments and certain funding sources, have declined      throughout all maturity periods in the year-end comparison. On shorter      term obligations, the yield on the one-year Treasury bill is down 166      basis points at year-end 2007 compared to a year earlier. For intermediate      term maturities, the three, five, and ten year notes have fallen 167, 125,      and 67 basis points in yield, respectively. The yield on the 20-year bond      is down 41 basis points and the 30-year bond is down 36 basis points. The      effect of lower market rates did have a negative impact on the Company’s      net interest spread and margin during 2007; however, the Company has yet      to absorb the full impact due to the timing of market interest rate      changes and the repricing characteristics of the Company’s interest      sensitive assets and liabilities. The Company expects further margin      compression during 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company had a sharp increase in the provision for loan losses in the      fourth quarter of 2007, which is reflective of higher levels of      nonperforming loans, primarily nonaccrual loans. Nonperforming loans were      $21.1 million at December 31, 2007 compared to $12.4 million and $4.3      million at September 30, 2007 and December 31, 2006, respectively. A      significant amount of the increase in nonperforming loans during the      fourth quarter of 2007 compared to the third quarter of 2007 and the prior      year-end is limited to a relatively small number of larger-balance      credits. Although the Company believes that loan demand and credit quality      overall remains healthy, the real estate development segment of the      Company’s portfolio began to show deteriorating conditions, including a      slowdown in demand, in certain parts of its banking market in the fourth      quarter of 2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the fourth quarter of 2007, the Company entered into a balance sheet      leverage transaction to enhance earnings. The Company borrowed      approximately $200 million in multiple fixed rate repurchase agreements      and used      the proceeds to purchase a like amount of fixed rate Government National      Mortgage Association (“GNMA”) bonds. The leverage transaction added $423      thousand to net interest income during the fourth quarter of      2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the third quarter of 2007 the Company purchased 559 thousand shares of its      outstanding common stock at a price of $17.9 million or $32.00 per share      through a process commonly known as a modified “Dutch      Auction”.  The number of shares purchased represented 7.1% of      the shares issued and outstanding on the date of  purchase. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      January 2007, First Citizens completed its transaction to acquire the      Military Allotment operation of PNC Bank, National Association in a cash      transaction. First Citizens acquired intangible assets in the form of a      customer list and goodwill. It also recorded a core deposit intangible in      connection with receiving approximately $10.8 million in deposits from PNC      in the transaction. First Citizens merged the acquired Military Allotment      operation into its existing allotment operations, which specializes in the      processing of federal benefit payments and military allotments. The      purchase added $3.3 million in noninterest income for the year and $887      thousand in amortization expense related to the intangible assets      acquired. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the fourth quarter of 2006 the Company sold KBC and the Bath County      branches of its Farmers Georgetown bank subsidiary. The Company recorded a      pretax gain on these sales of $9.8 million. The impact from these sales,      which has been classified as discontinued operations, was a decrease in      net loans and deposits of $88.6 million and $146 million,      respectively. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                                                                       |   |    |      |   |     |   |    |    |   |
|------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|----------|--------|---------|---------|--------|
| Years      Ended December 31,                                                                              |   | 2007    |      |   | 2006     |   |    | 2005    |   |
|                                                                                                       |   | Average |      |   |     |   |    | Average |   |   | Average |   |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
| (In      thousands)                                                                                        |   | Balance |      |   | Interest |   |    | Rate    |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Earning      Assets                                                                                        |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                 |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                    |   | $       | 253,423   |   |     | $      | 12,627  |    |   |   | 4.98 | % |   | $ | 212,357 |   |   | $ | 9,025 |   |   |   | 4.25 | % |   | $ | 208,967 |   |   | $ | 7,483 |   |   |   | 3.58 | % |
| Nontaxable1                                                                                                |   |    | 88,501    |   |     |   | 4,794   |    |   |   | 5.42 |   |   |   | 91,413 |   |   |   | 5,278 |   |   |   | 5.77 |   |   |   | 90,758 |   |   |   | 5,419 |   |   |   | 5.97 |   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell |   |    | 70,062    |   |     |   | 3,333   |    |   |   | 4.76 |   |   |   | 62,378 |   |   |   | 2,355 |   |   |   | 3.78 |   |   |   | 68,212 |   |   |   | 1,811 |   |   |   | 2.65 |   |
| Loans      1,2,3                                                                                           |   |    | 1,250,423 |   |     |   | 95,825  |    |   |   | 7.66 |   |   |   | 1,051,002 |   |   |   | 77,836 |   |   |   | 7.41 |   |   |   | 805,014 |   |   |   | 52,990 |   |   |   | 6.58 |   |
| Total      earning assets                                                                                  |   |    | 1,662,409 |   |     | $      | 116,579 |    |   |   | 7.01 | % |   |   | 1,417,150 |   |   | $ | 94,494 |   |   |   | 6.67 | % |   |   | 1,172,951 |   |   | $ | 67,703 |   |   |   | 5.77 | % |
| Allowance      for loan losses                                                                             |   |    | (11,486   | )      |     |   |    |    |   |   |   |   |   |   | (11,094 | ) |   |   |   |   |   |   |   |   |   |   | (10,528 | ) |   |   |   |   |   |   |   |   |
| Total      earning assets, net of allowance forloan  losses                                      |   |    | 1,650,923 |   |     |   |    |    |   |   |   |   |   |   | 1,406,056 |   |   |   |   |   |   |   |   |   |   |   | 1,162,423 |   |   |   |   |   |   |   |   |   |
| Nonearning      Assets                                                                                     |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                               |   |    | 78,810    |   |     |   |    |    |   |   |   |   |   |   | 77,509 |   |   |   |   |   |   |   |   |   |   |   | 75,302 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                           |   |    | 38,860    |   |     |   |    |    |   |   |   |   |   |   | 32,029 |   |   |   |   |   |   |   |   |   |   |   | 22,759 |   |   |   |   |   |   |   |   |   |
| Other      assets                                                                                          |   |    | 117,459   |   |     |   |    |    |   |   |   |   |   |   | 88,044 |   |   |   |   |   |   |   |   |   |   |   | 58,566 |   |   |   |   |   |   |   |   |   |
| Assets      of discontinued operations                                                                     |   |    |      |   |     |   |    |    |   |   |   |   |   |   | 129,827 |   |   |   |   |   |   |   |   |   |   |   | 148,474 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                          |   | $       | 1,886,052 |   |     |   |    |    |   |   |   |   |   | $ | 1,733,465 |   |   |   |   |   |   |   |   |   |   | $ | 1,467,524 |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities                                                                          |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                   |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing demand                                                                               |   | $       | 258,992   |   |     | $      | 3,684   |    |   |   | 1.42 | % |   | $ | 260,417 |   |   | $ | 3,774 |   |   |   | 1.45 | % |   | $ | 214,548 |   |   | $ | 1,878 |   |   |   | .88 | % |
| Savings                                                                                                    |   |    | 244,299   |   |     |   | 5,299   |    |   |   | 2.17 |   |   |   | 212,948 |   |   |   | 4,437 |   |   |   | 2.08 |   |   |   | 182,337 |   |   |   | 2,575 |   |   |   | 1.41 |   |
| Time                                                                                                       |   |    | 748,939   |   |     |   | 36,174  |    |   |   | 4.83 |   |   |   | 587,047 |   |   |   | 24,343 |   |   |   | 4.15 |   |   |   | 453,419 |   |   |   | 14,677 |   |   |   | 3.24 |   |
| Federal      funds purchased and other short-term borrowings                                               |   |    | 97,192    |   |     |   | 4,504   |    |   |   | 4.63 |   |   |   | 97,489 |   |   |   | 4,676 |   |   |   | 4.80 |   |   |   | 82,717 |   |   |   | 2,592 |   |   |   | 3.13 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings                    |   |    | 127,277   |   |     |   | 6,378   |    |   |   | 5.01 |   |   |   | 79,472 |   |   |   | 4,202 |   |   |   | 5.29 |   |   |   | 62,628 |   |   |   | 2,687 |   |   |   | 4.29 |   |
| Total      interest bearing liabilities                                                                    |   |    | 1,476,699 |   |     | $      | 56,039  |    |   |   | 3.79 | % |   |   | 1,237,373 |   |   | $ | 41,432 |   |   |   | 3.35 | % |   |   | 995,649 |   |   | $ | 24,409 |   |   |   | 2.45 | % |
| Noninterest      Bearing Liabilities                                                                       |   |    |      |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth      of Kentucky deposits                                                                     |   |    | 37,119    |   |     |   |    |    |   |   |   |   |   |   | 38,627 |   |   |   |   |   |   |   |   |   |   |   | 37,978 |   |   |   |   |   |   |   |   |   |
| Other      demand deposits                                                                                 |   |    | 177,304   |   |     |   |    |    |   |   |   |   |   |   | 157,355 |   |   |   |   |   |   |   |   |   |   |   | 141,219 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                     |   |    | 19,009    |   |     |   |    |    |   |   |   |   |   |   | 7,705 |   |   |   |   |   |   |   |   |   |   |   | 11,292 |   |   |   |   |   |   |   |   |   |
| Liabilities      of discontinued operations                                                                |   |    |      |   |     |   |    |    |   |   |   |   |   |   | 131,437 |   |   |   |   |   |   |   |   |   |   |   | 147,010 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                     |   |    | 1,710,131 |   |     |   |    |    |   |   |   |   |   |   | 1,572,497 |   |   |   |   |   |   |   |   |   |   |   | 1,333,148 |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                            |   |    | 175,921   |   |     |   |    |    |   |   |   |   |   |   | 160,968 |   |   |   |   |   |   |   |   |   |   |   | 134,376 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders’ equity                                                      |   | $       | 1,886,052 |   |     |   |    |    |   |   |   |   |   | $ | 1,733,465 |   |   |   |   |   |   |   |   |   |   | $ | 1,467,524 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                   |   |    |      |   |     |   | 60,540  |    |   |   |   |   |   |   |   |   |   |   | 53,062 |   |   |   |   |   |   |   |   |   |   |   | 43,294 |   |   |   |   |   |
| TE      basis adjustment                                                                                   |   |    |      |   |     |   | (2,322  | )       |   |   |   |   |   |   |   |   |   |   | (2,154 | ) |   |   |   |   |   |   |   |   |   |   | (2,052 | ) |   |   |   |   |
| Net      interest income                                                                                   |   |    |      |   |     | $      | 58,218  |    |   |   |   |   |   |   |   |   |   | $ | 50,908 |   |   |   |   |   |   |   |   |   |   | $ | 41,242 |   |   |   |   |   |
| Net      interest spread                                                                                   |   |    |      |   |     |   |    |    |   |   | 3.22 | % |   |   |   |   |   |   |   |   |   |   | 3.32 | % |   |   |   |   |   |   |   |   |   |   | 3.32 | % |
| Effect      of noninterest bearing sources of funds                                                        |   |    |      |   |     |   |    |    |   |   | .42 |   |   |   |   |   |   |   |   |   |   |   | .43 |   |   |   |   |   |   |   |   |   |   |   | .37 |   |
| Net      interest margin                                                                                   |   |    |      |   |     |   |    |    |   |   | 3.64 | % |   |   |   |   |   |   |   |   |   |   | 3.75 | % |   |   |   |   |   |   |   |   |   |   | 3.69 | % |

| 1 | Income      and yield stated at a fully tax equivalent basis using the marginal      corporate Federal tax rate of 35%. |
|---|-------------------------------------------------------------------------------------------------------------------------|

| 2 | Loan      balances include principal balances on nonaccrual  loans. |
|---|---------------------------------------------------------------------|

| 3 | Loan      fees included in interest income amounted to $2.7 million, $2.0      million, and $2.1 million for 2007, 2006, and 2005,      respectively. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The      following table is an analysis of the change in net interest      income. |
|--------|------------------------------------------------------------------------------------|

|                                                                                                       |   |     |      |   |                        |   |   |     |   |   |                        |   |
|------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|-----------------------------|--------|--------|----------|--------|--------|-----------------------------|--------|
|                                                                                                       |   | Variance |      |   | Variance      Attributed to |   |   | Variance |   |   | Variance      Attributed to |   |
| (In      thousands)                                                                                        |   |     | 2007/2006 | 1      |                        | Volume |   |     | Rate   |   |                        |   | 2006/2005 | 1 |   | Volume |   |   | Rate |   |
| Interest      Income                                                                                       |   |     |      |   |                        |   |   |     |   |   |                        |   |   |   |   |   |   |   |   |   |
| Taxable      investment securities                                                                         |   | $        | 3,602     |   |                        | $      | 1,908  |     |   | $      | 1,694                       |   |   | $ | 1,542 |   |   | $ | 123 |   |   | $ | 1,419 |   |
| Nontaxable      investment securities2                                                                     |   |     | (484      | )      |                        |   | (167   | )        |   |   | (317                        | )      |   |   | (141 | ) |   |   | 39 |   |   |   | (180 | ) |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell |   |     | 978       |   |                        |   | 315    |     |   |   | 663                         |   |   |   | 544 |   |   |   | (167 | ) |   |   | 711 |   |
| Loans2                                                                                                     |   |     | 17,989    |   |                        |   | 15,273 |     |   |   | 2,716                       |   |   |   | 24,846 |   |   |   | 17,586 |   |   |   | 7,260 |   |
| Total      interest income                                                                                 |   |     | 22,085    |   |                        |   | 17,329 |     |   |   | 4,756                       |   |   |   | 26,791 |   |   |   | 17,581 |   |   |   | 9,210 |   |
| Interest      Expense                                                                                      |   |     |      |   |                        |   |   |     |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing demand deposits                                                                      |   |     | (90       | )      |                        |   | (19    | )        |   |   | (71                         | )      |   |   | 1,896 |   |   |   | 471 |   |   |   | 1,425 |   |
| Savings      deposits                                                                                      |   |     | 862       |   |                        |   | 666    |     |   |   | 196                         |   |   |   | 1,862 |   |   |   | 486 |   |   |   | 1,376 |   |
| Time      deposits                                                                                         |   |     | 11,831    |   |                        |   | 7,422  |     |   |   | 4,409                       |   |   |   | 9,666 |   |   |   | 4,950 |   |   |   | 4,716 |   |
| Federal      funds purchased and other short-term borrowings                                               |   |     | (172      | )      |                        |   | (13    | )        |   |   | (159                        | )      |   |   | 2,084 |   |   |   | 522 |   |   |   | 1,562 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings                    |   |     | 2,176     |   |                        |   | 2,410  |     |   |   | (234                        | )      |   |   | 1,515 |   |   |   | 812 |   |   |   | 703 |   |
| Total      interest expense                                                                                |   |     | 14,607    |   |                        |   | 10,466 |     |   |   | 4,141                       |   |   |   | 17,023 |   |   |   | 7,241 |   |   |   | 9,782 |   |
| Net      interest income                                                                                   |   | $        | 7,478     |   |                        | $      | 6,863  |     |   | $      | 615                         |   |   | $ | 9,768 |   |   | $ | 10,340 |   |   | $ | (572 | ) |
| Percentage      change                                                                                     |   |     | 100.0     | %      |                        |   | 91.8   | %        |   |   | 8.2                         | %      |   |   | 100.0 | % |   |   | 105.9 | % |   |   | (5.9 | )% |

| 1 | The      changes which are not solely due to rate or volume are allocated on a      percentage basis using the absolute values of rate and volume variances as      a basis for allocation. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Income      stated at fully tax equivalent basis using the marginal corporate Federal      tax rate of 35%. |
|---|-------------------------------------------------------------------------------------------------------------|

----

----

|                                                                       |   |   |      |   |   |   |   |   |                                              |      |   |   |   |   |   |   |    |   |   |   |   |   |   |    |   |
|----------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|---------------------------------------------------|-----------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---------|--------|
| (In      thousands)December      31,                                       |   | 2007   |      | %      |   |   | 2006   |   |              % |      |   | 2005   |   | %      |   |   | 2004    |   | %      |   |   | 2003   |   | %       |   |
| Commercial,      financial, and agricultural                               |   | $      | 154,015   |   |   | 11.9   | %      |   | $                                                 | 197,613   |   |   | 16.5   | %      |   | $      | 173,797 |   |   | 18.1   | %      |   | $      | 119,004 |   |   | 15.3 | % |   | $ | 99,291 |   |   | 14.7 | % |
| Real      estate  – construction                           |   |   | 254,788   |   |   | 19.7   |   |   |                                              | 176,779   |   |   | 14.7   |   |   |   | 88,693  |   |   | 9.2    |   |   |   | 62,111  |   |   | 8.0 |   |   |   | 44,622 |   |   | 6.6 |   |
| Real      estate mortgage – residential                              |   |   | 405,992   |   |   | 31.5   |   |   |                                              | 381,081   |   |   | 31.8   |   |   |   | 331,508 |   |   | 34.4   |   |   |   | 280,869 |   |   | 36.2 |   |   |   | 245,737 |   |   | 36.4 |   |
| Real      estate mortgage – farmland and other commercialenterprises |   |   | 394,900   |   |   | 30.6   |   |   |                                              | 351,793   |   |   | 29.4   |   |   |   | 274,411 |   |   | 28.5   |   |   |   | 210,701 |   |   | 27.2 |   |   |   | 192,541 |   |   | 28.5 |   |
| Installment                                                                |   |   | 52,028    |   |   | 4.0    |   |   |                                              | 57,116    |   |   | 4.8    |   |   |   | 56,169  |   |   | 5.8    |   |   |   | 63,684  |   |   | 8.2 |   |   |   | 58,274 |   |   | 8.6 |   |
| Lease      financing                                                       |   |   | 30,262    |   |   | 2.3    |   |   |                                              | 33,454    |   |   | 2.8    |   |   |   | 37,993  |   |   | 4.0    |   |   |   | 39,348  |   |   | 5.1 |   |   |   | 35,372 |   |   | 5.2 |   |
| Total                                                                      |   | $      | 1,291,985 |   |   | 100.0  | %      |   | $                                                 | 1,197,836 |   |   | 100.0  | %      |   | $      | 962,571 |   |   | 100.0  | %      |   | $      | 775,717 |   |   | 100.0 | % |   | $ | 675,837 |   |   | 100.0 | % |

----

|                                         |   |          |    |   |                   |   |   |            |   |   |   |   |
|----------------------------------------------|--------|---------------|---------|--------|------------------------|--------|--------|-----------------|--------|--------|--------|--------|
|                                         |   | Within        |    |   | After      One But     |   |   | After           |   |   |   |   |
| (In      thousands)                          |   | One      Year |    |   | Within      Five Years |   |   | Five      Years |   |   | Total  |   |
| Commercial,      financial, and agricultural |   | $             | 82,450  |   |                   | $      | 30,643 |            |   | $      | 40,922 |   |   | $ | 154,015 |   |
| Real      estate – construction        |   |          | 181,804 |   |                   |   | 65,190 |            |   |   | 7,794  |   |   |   | 254,788 |   |
| Total                                        |   | $             | 264,254 |   |                   | $      | 95,833 |            |   | $      | 48,716 |   |   | $ | 408,803 |   |

|                                     |   |   |   |   |     |   |
|------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                     |   | Fixed  |   |   | Variable |   |
| (In      thousands)                      |   | Rate   |   |   | Rate     |   |
| Due      after one but within five years |   | $      | 48,913 |   |     | $      | 45,998 |   |
| Due      after five years                |   |   | 17,208 |   |     |   | 28,948 |   |
| Total                                    |   | $      | 66,121 |   |     | $      | 74,946 |   |

----

|                                                                                               |   |   |      |   |   |   |      |   |   |   |    |   |   |   |    |
|----------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|---------|
| Years      Ended December 31, (In thousands)                                                       |   | 2007   |      |   | 2006   |   |      | 2005   |   |   | 2004    |   |   | 2003   |    |
| Balance      of allowance for loan losses at beginning of year                                     |   | $      | 11,999    |   |   | $      | 11,069    |   |   | $      | 11,043  |   |   | $      | 10,088  |   |   | $ | 9,931 |   |
| Acquisition      of Citizens Jessamine                                                             |   |   |      |   |   |   | 1,066     |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Acquisition      of Citizens Northern                                                              |   |   |      |   |   |   |      |   |   |   | 1,410   |   |   |   |    |   |   |   |   |   |
| Acquisition      of Citizens Georgetown                                                            |   |   |      |   |   |   |      |   |   |   |    |   |   |   | 2,005   |   |   |   |   |   |
| Loans      charged off:                                                                            |   |   |      |   |   |   |      |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial,      financial, and agricultural                                                       |   |   | 520       |   |   |   | 486       |   |   |   | 301     |   |   |   | 678     |   |   |   | 171 |   |
| Real      estate                                                                                   |   |   | 626       |   |   |   | 200       |   |   |   | 288     |   |   |   | 462     |   |   |   | 650 |   |
| Installment      loans to individuals                                                              |   |   | 956       |   |   |   | 839       |   |   |   | 1,254   |   |   |   | 1,115   |   |   |   | 898 |   |
| Lease      financing                                                                               |   |   | 52        |   |   |   | 254       |   |   |   | 602     |   |   |   | 113     |   |   |   | 385 |   |
| Total      loans charged off                                                                       |   |   | 2,154     |   |   |   | 1,779     |   |   |   | 2,445   |   |   |   | 2,368   |   |   |   | 2,104 |   |
| Recoveries      of loans previously charged off:                                                   |   |   |      |   |   |   |      |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial,      financial, and agricultural                                                       |   |   | 126       |   |   |   | 262       |   |   |   | 69      |   |   |   | 119     |   |   |   | 73 |   |
| Real      estate                                                                                   |   |   | 241       |   |   |   | 81        |   |   |   | 66      |   |   |   | 89      |   |   |   | 47 |   |
| Installment      loans to individuals                                                              |   |   | 319       |   |   |   | 294       |   |   |   | 260     |   |   |   | 229     |   |   |   | 227 |   |
| Lease      financing                                                                               |   |   | 47        |   |   |   | 41        |   |   |   | 44      |   |   |   | 25      |   |   |   | 19 |   |
| Total      recoveries                                                                              |   |   | 733       |   |   |   | 678       |   |   |   | 439     |   |   |   | 462     |   |   |   | 366 |   |
| Net      loans charged off                                                                         |   |   | 1,421     |   |   |   | 1,101     |   |   |   | 2,006   |   |   |   | 1,906   |   |   |   | 1,738 |   |
| Additions      to allowance charged to expense                                                     |   |   | 3,638     |   |   |   | 965       |   |   |   | 622     |   |   |   | 856     |   |   |   | 1,895 |   |
| Balance      at end of year                                                                        |   | $      | 14,216    |   |   | $      | 11,999    |   |   | $      | 11,069  |   |   | $      | 11,043  |   |   | $ | 10,088 |   |
| Average      loans net of unearned income                                                          |   | $      | 1,250,423 |   |   | $      | 1,051,002 |   |   | $      | 805,014 |   |   | $      | 735,697 |   |   | $ | 663,442 |   |
| Ratio      of net charge-offs  during year to average loans, net of      unearned income |   |   | .11       | %      |   |   | .10       | %      |   |   | .25     | %      |   |   | .26     | % |   |   | .26 | % |

----

|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| December      31, (In thousands)             |   | 2007   |   |   | 2006   |   |   | 2005   |   |   | 2004   |   |   | 2003   |   |
| Commercial,      financial, and agricultural |   | $      | 2,505  |   |   | $      | 2,223  |   |   | $      | 2,840  |   |   | $      | 2,108  |   |   | $ | 2,068 |   |
| Real      estate                             |   |   | 9,201  |   |   |   | 6,497  |   |   |   | 5,849  |   |   |   | 6,206  |   |   |   | 5,560 |   |
| Installment      loans to individuals        |   |   | 1,979  |   |   |   | 2,316  |   |   |   | 1,601  |   |   |   | 1,634  |   |   |   | 1,478 |   |
| Lease      financing                         |   |   | 531    |   |   |   | 963    |   |   |   | 779    |   |   |   | 1,095  |   |   |   | 982 |   |
| Total                                        |   | $      | 14,216 |   |   | $      | 11,999 |   |   | $      | 11,069 |   |   | $      | 11,043 |   |   | $ | 10,088 |   |

|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| December 31, (In thousands)                            |   | 2007   |   |   | 2006   |   |   | 2005   |   |   | 2004   |   |   | 2003   |   |
| Loans      accounted for on nonaccrual basis           |   | $      | 18,073 |   |   | $      | 1,462  |   |   | $      | 2,269  |   |   | $      | 4,990  |   |   | $ | 4,823 |   |
| Loans      past due 90 days or more and still accruing |   |   | 2,977  |   |   |   | 2,856  |   |   |   | 2,383  |   |   |   | 2,831  |   |   |   | 3,235 |   |
| Total      nonperforming loans                         |   |   | 21,050 |   |   |   | 4,318  |   |   |   | 4,652  |   |   |   | 7,821  |   |   |   | 8,058 |   |
| Other      real estate owned                           |   |   | 6,044  |   |   |   | 5,031  |   |   |   | 8,786  |   |   |   | 3,719  |   |   |   | 1,662 |   |
| Other      foreclosed assets                           |   |   | 66     |   |   |   | 54     |   |   |   | 21     |   |   |   | 32     |   |   |   | 218 |   |
| Total      nonperforming assets                        |   | $      | 27,160 |   |   | $      | 9,403  |   |   | $      | 13,459 |   |   | $      | 11,572 |   |   | $ | 9,938 |   |

----

----

|                                                   |   |                   |    |   |                 |   |   |                   |   |
|--------------------------------------------------------|--------|------------------------|---------|--------|----------------------|--------|--------|------------------------|--------|
| December      31,                                      |   | 2007                   |    |   | 2006                 |   |   | 2005                   |   |
|  (In      thousands)                              |   | Availablefor      Sale |    |   | Held      toMaturity |   |   | Availablefor      Sale |   |   | Held      toMaturity |   |   | Availablefor      Sale |   |   | Held      toMaturity |   |
| Obligations      of U.S. government-sponsored entities |   | $                      | 88,522  |   |                 |   |   |                   | $      | 141,832 |   |   |   |   |   | $ | 123,684 |   |   |   |   |
| Obligations      of states and political subdivisions  |   |                   | 94,181  |   |                 | $      | 3,844  |                   |   |   | 88,147 |   |   | $ | 7,788 |   |   |   | 86,031 |   |   | $ | 13,610 |   |
| Mortgage-backed      securities                        |   |                   | 343,176 |   |                 |   |   |                   |   |   | 86,716 |   |   |   |   |   |   |   | 98,025 |   |   |   |   |   |
| U.S.      Treasury securities                          |   |                   | 863     |   |                 |   |   |                   |   |   | 484 |   |   |   |   |   |   |   | 104 |   |   |   |   |   |
| Money      market mutual funds                         |   |                   | 1,396   |   |                 |   |   |                   |   |   | 1,396 |   |   |   |   |   |   |   | 925 |   |   |   |   |   |
| Equity      securities                                 |   |                   | 9,363   |   |                 |   |   |                   |   |   | 7,910 |   |   |   |   |   |   |   | 6,298 |   |   |   |   |   |
| Other                                                  |   |                   | 5,132   |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $                      | 542,633 |   |                 | $      | 3,844  |                   |   | $ | 326,485 |   |   | $ | 7,788 |   |   | $ | 315,067 |   |   | $ | 13,610 |   |

|                                                   |   |                 |   |   |                   |   |   |                  |   |   |                 |   |
|--------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|----------------------|--------|
|                                                   |   |                 |   |   | After      One But     |   |   | After      Five But   |   |   |                 |   |
|                                                   |   | Within      One Year |   |   | Within      Five Years |   |   | Within      Ten Years |   |   | After      Ten Years |   |
| (In      thousands)                                    |   | Amount               |   |   | Rate                   |   |   | Amount                |   |   | Rate                 |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| Obligations      of U.S. government-sponsored entities |   | $                    | 63,238 |   |                   |   | 4.2    | %                     |   | $      | 17,256               |   |   |   | 4.8 | % |   | $ | 7,025 |   |   |   | 5.2 | % |   | $ | 1,003 |   |   |   | 4.9 | % |
| Obligations      of states and political subdivisions  |   |                 | 3,288  |   |                   |   | 6.1    |                  |   |   | 44,882               |   |   |   | 5.6 |   |   |   | 32,935 |   |   |   | 5.5 |   |   |   | 13,076 |   |   |   | 6.1 |   |
| Mortgage-backed      securities                        |   |                 | 21,314 |   |                   |   | 4.6    |                  |   |   | 23,490               |   |   |   | 4.8 |   |   |   | 33,244 |   |   |   | 4.9 |   |   |   | 265,128 |   |   |   | 5.5 |   |
| U.S.      Treasury securities                          |   |                 | 605    |   |                   |   | 3.4    |                  |   |   | 258                  |   |   |   | 3.1 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money      market mutual funds                         |   |                 | 1,396  |   |                   |   | 4.5    |                  |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                                  |   |                 |   |   |                   |   |   |                  |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,132 |   |   |   | 7.2 |   |
| Total                                                  |   | $                    | 89,841 |   |                   |   | 4.3    | %                     |   | $      | 85,886               |   |   |   | 4.4 | % |   | $ | 73,204 |   |   |   | 4.4 | % |   | $ | 284,339 |   |   |   | 5.5 | % |

|                                                  |   |                 |   |   |                   |   |   |                  |   |   |                 |   |
|-------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|----------------------|--------|
|                                                  |   |                 |   |   | After      One But     |   |   | After      Five But   |   |   |                 |   |
|                                                  |   | Within      One Year |   |   | Within      Five Years |   |   | Within      Ten Years |   |   | After      Ten Years |   |
| (In      thousands)                                   |   | Amount               |   |   | Rate                   |   |   | Amount                |   |   | Rate                 |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| Obligations      of states and political subdivisions |   | $                    | 1,980  |   |                   |   | 6.8    | %                     |   | $      | 789                  |   |   |   | 6.6 | % |   | $ | 0 |   |   |   | 0 | % |   | $ | 1,075 |   |   |   | 6.3 | % |

----

|                            |   |           |      |   |        |   |   |           |   |
|---------------------------------|--------|----------------|-----------|--------|-------------|--------|--------|----------------|--------|
| Years      Ended December 31,   |   | 2007           |      |   | 2006        |   |   | 2005           |   |
|  (In      thousands)       |   | AverageBalance |      |   | AverageRate |   |   | AverageBalance |   |   | AverageRate |   |   | AverageBalance |   |   | AverageRate |   |
| Noninterest      bearing demand |   | $              | 214,423   |   |        |   |   |           | $      | 195,982 |   |   |   |   |   | $ | 179,197 |   |   |   |   |
| Interest      bearing demand    |   |           | 258,992   |   |        |   | 1.42   | %              |   |   | 260,417 |   |   |   | 1.45 | % |   |   | 214,548 |   |   |   | .88 | % |
| Savings                         |   |           | 244,299   |   |        |   | 2.17   |           |   |   | 212,948 |   |   |   | 2.08 |   |   |   | 182,337 |   |   |   | 1.41 |   |
| Time                            |   |           | 748,939   |   |        |   | 4.83   |           |   |   | 587,047 |   |   |   | 4.15 |   |   |   | 453,419 |   |   |   | 3.24 |   |
| Total                           |   | $              | 1,466,653 |   |        |   | 3.08   | %              |   | $ | 1,256,394 |   |   |   | 2.59 | % |   | $ | 1,029,501 |   |   |   | 1.85 | % |

|                          |   |   |    |
|-------------------------------|--------|--------|---------|
| (In      thousands)           |   | Amount |    |
| 3      months or less         |   | $      | 48,724  |   |
| Over      3 through 6 months  |   |   | 82,323  |   |
| Over      6 through 12 months |   |   | 85,345  |   |
| Over      12 months           |   |   | 36,111  |   |
| Total                         |   | $      | 252,503 |   |

|                                       |   |   |    |   |   |   |    |   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| (In      thousands)                        |   | 2007   |    |   | 2006   |   |    | 2005   |   |
| Amount      outstanding at year-end        |   | $      | 80,755  |   |   | $      | 76,718  |   |   | $ | 72,115 |   |
| Maximum      outstanding at any month-end  |   |   | 155,362 |   |   |   | 113,926 |   |   |   | 166,550 |   |
| Average      outstanding                   |   |   | 97,192  |   |   |   | 97,489  |   |   |   | 82,717 |   |
| Weighted      average rate at year-end     |   |   | 3.71    | %      |   |   | 4.55    | %      |   |   | 3.89 | % |
| Weighted      average rate during the year |   |   | 4.63    |   |   |   | 4.80    |   |   |   | 3.13 |   |

Long-term Borrowings

----

|                                                |   |                        |    |
|-----------------------------------------------------|--------|-----------------------------|---------|
|                                                |   | Payments      Due by Period |    |
|  Contractual      Obligations (In thousands)   |   | Total                       |    |   | Less      ThanOne      Year |   |   | One      to ThreeYears |   |   | Three      to FiveYears |   |   | More      Than FiveYears |   |
| Long-term      FHLB debt                            |   | $                           | 66,526  |   |   | $ | 10,565 |   |   | $ | 14,079 |   |   | $ | 17,015 |   |   | $ | 24,867 |   |
| Subordinated      notes payable                     |   |                        | 48,970  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,970 |   |
| Securities      sold under agreements to repurchase |   |                        | 200,000 |   |   |   |   |   |   |   | 50,000 |   |   |   | 50,000 |   |   |   | 100,000 |   |
| Unfunded      postretirement benefit obligations    |   |                        | 4,930   |   |   |   | 361 |   |   |   | 823 |   |   |   | 894 |   |   |   | 2,852 |   |
| Operating      leases                               |   |                        | 3,906   |   |   |   | 596 |   |   |   | 962 |   |   |   | 656 |   |   |   | 1,692 |   |
| Capital      lease obligations                      |   |                        | 813     |   |   |   | 237 |   |   |   | 243 |   |   |   | 248 |   |   |   | 85 |   |
| Total                                               |   | $                           | 325,145 |   |   | $ | 11,759 |   |   | $ | 66,107 |   |   | $ | 68,813 |   |   | $ | 178,466 |   |

Long-Term Borrowings
Note 9 

----

Market Risk Management

----

----

Note 15 

|                   |   |                                      |   |   |              |   |
|------------------------|--------|-------------------------------------------|--------|--------|-------------------|--------|
|                   |   | Farmers      CapitalBank      Corporation |   |   | RegulatoryMinimum |   |
| Tier      1 risk-based |   |                                      | 11.55  | %      |              |   | 4.00 | % |
| Total      risk-based  |   |                                      | 12.60  |   |              |   | 8.00 |   |
| Leverage               |   |                                      | 8.08   |   |              |   | 4.00 |   |

----

|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Years      Ended December 31,                                                  |   | 2007   |   |   | 2006   |   |   | 2005   |   |   | 2004   |   |   | 2003   |   |   |
| Percentage      of dividends declared to income from continuing operations     |   |   | 64.52  | %      |   |   | 78.89  | %      |   |   | 61.67  | %      |   |   | 68.10  | %      |   |   | 70.70 | % |
| Percentage      of average shareholders’ equity to average total assets1 |   |   | 9.33   |   |   |   | 10.04  |   |   |   | 10.19  |   |   |   | 10.45  |   |   |   | 10.88 |   |

Shareholder Information

Stock Prices

|                |   |   |   |   |   |   |   |                    |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
|                |   | High   |   |   | Low    |   |   | Dividends      Declared |   |
| 2007                |   |   |   |   |   |   |   |                    |   |
| Fourth      Quarter |   | $      | 30.72  |   |   | $      | 26.43  |                    |   | $ | .33 |   |
| Third      Quarter  |   |   | 33.50  |   |   |   | 28.35  |                    |   |   | .33 |   |
| Second      Quarter |   |   | 31.66  |   |   |   | 28.29  |                    |   |   | .33 |   |
| First      Quarter  |   |   | 35.35  |   |   |   | 29.00  |                    |   |   | .33 |   |
|                |   |   |   |   |   |   |   |                    |   |   |   |   |
| 2006                |   |   |   |   |   |   |   |                    |   |   |   |   |
| Fourth      Quarter |   | $      | 36.98  |   |   | $      | 32.40  |                    |   | $ | .44 |   |
| Third      Quarter  |   |   | 34.59  |   |   |   | 29.78  |                    |   |   | .33 |   |
| Second      Quarter |   |   | 32.82  |   |   |   | 29.25  |                    |   |   | .33 |   |
| First      Quarter  |   |   | 33.54  |   |   |   | 30.59  |                    |   |   | .33 |   |

Recently Issued ButNot Yet Effective Accounting Standards

----

Item7A.  Quantitative and Qualitative Disclosures About MarketRisk

Market RiskManagement

----

Item 8.Financial Statements and Supplementary Data

|                    |                                           |
|-------------------------|------------------------------------------------|
| G.      Anthony Busseni | C.      Douglas Carpenter                      |
| President      and CEO  | Senior      Vice President, Secretary, and CFO |
|                    |                                           |
|                    |                                           |
| March      12, 2008     |                                           |

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

----

Consolidated Balance Sheets

|                                                                                                                                                                                |   |   |      |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| December      31, (In thousands, except share data)                                                                                                                                 |   | 2007   |      |   |   | 2006   | 1 |
| Assets                                                                                                                                                                              |   |   |      |   |   |   |   |
| Cash      and cash equivalents:                                                                                                                                                     |   |   |      |   |   |   |   |
| Cash      and due from banks                                                                                                                                                        |   | $      | 44,896    |   |   | $      | 115,640 |   |
| Interest      bearing deposits in other banks                                                                                                                                       |   |   | 2,290     |   |   |   | 1,783 |   |
| Federal      funds sold and securities purchased under agreements to    resell                                                                                                      |   |   | 31,954    |   |   |   | 39,405 |   |
| Total      cash and cash equivalents                                                                                                                                                |   |   | 79,140    |   |   |   | 156,828 |   |
| Investment      securities:                                                                                                                                                         |   |   |      |   |   |   |   |   |
| Available      for sale, amortized cost of $542,259 (2007) and $328,499      (2006)                                                                                                 |   |   | 542,633   |   |   |   | 326,485 |   |
| Held      to maturity, fair value of $3,863 (2007) and $7,849 (2006)                                                                                                                |   |   | 3,844     |   |   |   | 7,788 |   |
| Total      investment securities                                                                                                                                                    |   |   | 546,477   |   |   |   | 334,273 |   |
| Loans,      net of unearned income                                                                                                                                                  |   |   | 1,291,985 |   |   |   | 1,197,836 |   |
| Allowance      for loan losses                                                                                                                                                      |   |   | (14,216   | )      |   |   | (11,999 | ) |
| Loans,      net                                                                                                                                                                     |   |   | 1,277,769 |   |   |   | 1,185,837 |   |
| Premises      and equipment, net                                                                                                                                                    |   |   | 38,663    |   |   |   | 37,775 |   |
| Company-owned      life insurance                                                                                                                                                   |   |   | 34,171    |   |   |   | 32,929 |   |
| Goodwill                                                                                                                                                                            |   |   | 52,408    |   |   |   | 42,822 |   |
| Other      intangible assets, net                                                                                                                                                   |   |   | 9,543     |   |   |   | 9,755 |   |
| Other      assets                                                                                                                                                                   |   |   | 30,076    |   |   |   | 24,889 |   |
| Total      assets                                                                                                                                                                   |   | $      | 2,068,247 |   |   | $      | 1,825,108 |   |
| Liabilities                                                                                                                                                                         |   |   |      |   |   |   |   |   |
| Deposits:                                                                                                                                                                           |   |   |      |   |   |   |   |   |
| Noninterest      bearing                                                                                                                                                            |   | $      | 192,432   |   |   | $      | 242,938 |   |
| Interest      bearing                                                                                                                                                               |   |   | 1,281,665 |   |   |   | 1,211,882 |   |
| Total      deposits                                                                                                                                                                 |   |   | 1,474,097 |   |   |   | 1,454,820 |   |
| Federal      funds purchased and other short-term borrowings                                                                                                                        |   |   | 80,755    |   |   |   | 76,718 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings                                                                                             |   |   | 267,339   |   |   |   | 62,218 |   |
| Subordinated      notes payable to unconsolidated trusts                                                                                                                            |   |   | 48,970    |   |   |   | 25,774 |   |
| Dividends      payable                                                                                                                                                              |   |   | 2,436     |   |   |   | 3,472 |   |
| Other      liabilities                                                                                                                                                              |   |   | 26,159    |   |   |   | 25,043 |   |
| Total      liabilities                                                                                                                                                              |   |   | 1,899,756 |   |   |   | 1,648,045 |   |
|                                                                                                                                                                                |   |   |      |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                  |   |   |      |   |   |   |   |   |
|                                                                                                                                                                                |   |   |      |   |   |   |   |   |
| Shareholders’      Equity                                                                                                                                                     |   |   |      |   |   |   |   |   |
| Preferred      stock, no par value; 1,000,000 shares authorized; none    issued                                                                                                     |   |   |      |   |   |   |   |   |
| Common      stock, par value $.125 per share; 9,608,000 sharesauthorized;7,384,865      and 7,895,452 shares issued and outstanding atDecember      31, 2007 and 2006, respectively |   |   | 923       |   |   |   | 988 |   |
| Capital      surplus                                                                                                                                                                |   |   | 48,176    |   |   |   | 53,201 |   |
| Retained      earnings                                                                                                                                                              |   |   | 122,498   |   |   |   | 128,652 |   |
| Accumulated      other comprehensive loss                                                                                                                                           |   |   | (3,106    | )      |   |   | (5,778 | ) |
| Total      shareholders’ equity                                                                                                                                               |   |   | 168,491   |   |   |   | 177,063 |   |
| Total      liabilities and shareholders’ equity                                                                                                                               |   | $      | 2,068,247 |   |   | $      | 1,825,108 |   |

|   | 1Certain amounts have been revised      related to the Company’s postretirement benefits plans and equity      accounts. Please refer to Note 1 under the captions “Revised 2006 Balance Sheet and Statement of Changes in      Shareholders’ Equity” and “Treasury      Stock”. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Consolidated Statements of Income

|                                                                                                              |   |   |    |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| (In      thousands, except per share data)                                                                        |   |   |    |   |   |   |   |   |   |
| Years      Ended December 31,                                                                                     |   | 2007   |    |   | 2006   |   |   | 2005   |   |
| Interest      Income                                                                                              |   |   |    |   |   |   |   |   |   |
| Interest      and fees on loans                                                                                   |   | $      | 94,941  |   |   | $      | 77,303 |   |   | $ | 52,579 |   |
| Interest      on investment securities:                                                                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                           |   |   | 12,627  |   |   |   | 9,025  |   |   |   | 7,483 |   |
| Nontaxable                                                                                                        |   |   | 3,356   |   |   |   | 3,657  |   |   |   | 3,778 |   |
| Interest      on deposits in other banks                                                                          |   |   | 64      |   |   |   | 53     |   |   |   | 61 |   |
| Interest      on federal funds sold and securities  purchased under agreements      to resell           |   |   | 3,269   |   |   |   | 2,302  |   |   |   | 1,750 |   |
| Total      interest income                                                                                        |   |   | 114,257 |   |   |   | 92,340 |   |   |   | 65,651 |   |
| Interest      Expense                                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                                                                                         |   |   | 45,157  |   |   |   | 32,554 |   |   |   | 19,130 |   |
| Interest      on federal funds purchased and other short-term borrowings                                          |   |   | 4,504   |   |   |   | 4,676  |   |   |   | 2,592 |   |
| Interest      on subordinated notes payable to unconsolidated trusts                                              |   |   | 2,394   |   |   |   | 1,747  |   |   |   | 623 |   |
| Interest      on securities sold under agreements to purchase and other long-term      borrowings                 |   |   | 3,984   |   |   |   | 2,455  |   |   |   | 2,064 |   |
| Total      interest expense                                                                                       |   |   | 56,039  |   |   |   | 41,432 |   |   |   | 24,409 |   |
| Net      interest income                                                                                          |   |   | 58,218  |   |   |   | 50,908 |   |   |   | 41,242 |   |
| Provision      for loan losses                                                                                    |   |   | 3,638   |   |   |   | 965    |   |   |   | 622 |   |
| Net      interest income after provision  for loan losses                                               |   |   | 54,580  |   |   |   | 49,943 |   |   |   | 40,620 |   |
| Noninterest      Income                                                                                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Service      charges and fees on deposits                                                                         |   |   | 11,955  |   |   |   | 9,191  |   |   |   | 8,543 |   |
| Allotment      processing fees                                                                                    |   |   | 4,363   |   |   |   | 2,601  |   |   |   | 2,656 |   |
| Other      service charges, commissions, and fees                                                                 |   |   | 2,529   |   |   |   | 2,617  |   |   |   | 2,245 |   |
| Data      processing income                                                                                       |   |   | 1,227   |   |   |   | 1,719  |   |   |   | 1,786 |   |
| Trust      income                                                                                                 |   |   | 2,053   |   |   |   | 1,790  |   |   |   | 1,616 |   |
| Investment      securities losses, net                                                                            |   |   |    |   |   |   | (195   | )      |   |   | (3 | ) |
| Gains      on sale of mortgage loans, net                                                                         |   |   | 591     |   |   |   | 649    |   |   |   | 653 |   |
| Income      from company-owned life insurance                                                                     |   |   | 1,278   |   |   |   | 1,343  |   |   |   | 1,189 |   |
| Other                                                                                                             |   |   | 161     |   |   |   | 744    |   |   |   | 1,182 |   |
| Total      noninterest income                                                                                     |   |   | 24,157  |   |   |   | 20,459 |   |   |   | 19,867 |   |
| Noninterest      Expense                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                                                               |   |   | 31,420  |   |   |   | 28,978 |   |   |   | 22,347 |   |
| Occupancy      expenses, net                                                                                      |   |   | 4,261   |   |   |   | 3,664  |   |   |   | 2,751 |   |
| Equipment      expenses                                                                                           |   |   | 3,232   |   |   |   | 2,929  |   |   |   | 2,587 |   |
| Data      processing and communications expenses                                                                  |   |   | 4,719   |   |   |   | 4,980  |   |   |   | 4,161 |   |
| Bank      franchise tax                                                                                           |   |   | 2,086   |   |   |   | 1,831  |   |   |   | 1,377 |   |
| Correspondent      bank fees                                                                                      |   |   | 721     |   |   |   | 692    |   |   |   | 883 |   |
| Amortization      of intangibles                                                                                  |   |   | 3,362   |   |   |   | 2,009  |   |   |   | 934 |   |
| Other                                                                                                             |   |   | 9,022   |   |   |   | 8,294  |   |   |   | 7,124 |   |
| Total      noninterest expense                                                                                    |   |   | 58,823  |   |   |   | 53,377 |   |   |   | 42,164 |   |
| Income      from continuing operations before income taxes                                                        |   |   | 19,914  |   |   |   | 17,025 |   |   |   | 18,323 |   |
| Income      tax expense from continuing operations                                                                |   |   | 4,287   |   |   |   | 3,360  |   |   |   | 3,791 |   |
| Income      from continuing operations                                                                            |   |   | 15,627  |   |   |   | 13,665 |   |   |   | 14,532 |   |
| Income      from discontinued operations before income taxes (including gain on      disposals of $9,873 in 2006) |   |   |    |   |   |   | 11,842 |   |   |   | 1,723 |   |
| Income      tax expense from discontinued operations (including $3,456 related to gain      on disposals in 2006) |   |   |    |   |   |   | 4,135  |   |   |   | 483 |   |
| Income      from discontinued operations                                                                          |   |   |    |   |   |   | 7,707  |   |   |   | 1,240 |   |
| Net      income                                                                                                   |   | $      | 15,627  |   |   | $      | 21,372 |   |   | $ | 15,772 |   |
| Net      Income Per Common Share                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Income      from continuing operations – basic                                                              |   | $      | 2.03    |   |   | $      | 1.82   |   |   | $ | 2.13 |   |
| Income      from discontinued operations – basic                                                            |   |   |    |   |   |   | 1.03   |   |   |   | .18 |   |
| Net      income per common share – basic                                                                    |   |   | 2.03    |   |   |   | 2.85   |   |   |   | 2.31 |   |
| Income      from continuing operations – diluted                                                            |   |   | 2.03    |   |   |   | 1.82   |   |   |   | 2.12 |   |
| Income      from discontinued operations - diluted                                                                |   |   |    |   |   |   | 1.02   |   |   |   | .18 |   |
| Net      income per common share - diluted                                                                        |   |   | 2.03    |   |   |   | 2.84   |   |   |   | 2.30 |   |
| Weighted      Average Shares Outstanding                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                             |   |   | 7,706   |   |   |   | 7,511  |   |   |   | 6,831 |   |
| Diluted                                                                                                           |   |   | 7,706   |   |   |   | 7,526  |   |   |   | 6,864 |   |

----

Consolidated Statements of ComprehensiveIncome

|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Years      Ended December 31,                                                                                                                                                                               |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Net      income                                                                                                                                                                                             |   | $      | 15,627 |   |   | $      | 21,372 |   |   | $ | 15,772 |   |
| Other      comprehensive income:                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding gain (loss) on available for sale securities arising during the      period on securities held at end of period, net of tax of $830, $306, and      $1,410, respectively            |   |   | 1,542  |   |   |   | 568    |   |   |   | (2,622 | ) |
| Reclassification      adjustment for prior period unrealized loss previously reported in other      comprehensive income recognized during current period, net of tax of $5,      $22, and $3, respectively |   |   | 10     |   |   |   | 40     |   |   |   | 5 |   |
| Change      in unfunded portion of postretirement benefit obligation, net of tax of      $603                                                                                                               |   |   | 1,120  |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss)                                                                                                                                                                      |   |   | 2,672  |   |   |   | 608    |   |   |   | (2,617 | ) |
| Comprehensive      income                                                                                                                                                                                   |   | $      | 18,299 |   |   | $      | 21,980 |   |   | $ | 13,155 |   |

----

Consolidated Statements of Changes in Shareholders'Equity

|                                                                                                                |   |              |   |   |    |   |   |     |   |   |                   |   |   |                |    |
|---------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|---------|--------|--------|----------|--------|--------|------------------------|--------|--------|---------------------|---------|
| (In      thousands, except per share data)                                                                          |   |              |   |   |    |   |   |     |   |   | Accumulated      Other |   |   | Total               |    |
| Years      Ended                                                                                                    |   | Common      Stock |   |   | Capital |   |   | Retained |   |   | Comprehensive          |   |   | Shareholders’ |    |
| December      31, 2007, 2006, and 2005                                                                              |   | Shares            |   |   | Amount  |   |   | Surplus  |   |   | Earnings               |   |   | Income      (Loss)  |    |   | Equity1 |   |
| Balance      at January 1, 2005                                                                                     |   |              | 6,784  |   |    | $      | 848    |     |   | $      | 17,427                 |   |   | $                   | 112,475 |   |   | $ | 700 |   |   | $ | 131,450 |   |
| Net      income                                                                                                     |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | 15,772  |   |   |   |   |   |   |   | 15,772 |   |
| Other      comprehensive loss                                                                                       |   |              |   |   |    |   |   |     |   |   |                   |   |   |                |    |   |   |   | (2,617 | ) |   |   | (2,617 | ) |
| Cash      dividends declared, $1.32 per share                                                                       |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | (8,961  | ) |   |   |   |   |   |   | (8,961 | ) |
| Purchase      of common stock                                                                                       |   |              | (17    | )      |    |   | (2     | )        |   |   | (44                    | )      |   |                | (525    | ) |   |   |   |   |   |   | (571 | ) |
| Stock      options exercised, including related tax benefits                                                        |   |              | 31     |   |    |   | 4      |     |   |   | 770                    |   |   |                |    |   |   |   |   |   |   |   | 774 |   |
| Shares      issued pursuant to Employee Stock Purchase Plan                                                         |   |              | 7      |   |    |   | 1      |     |   |   | 186                    |   |   |                |    |   |   |   |   |   |   |   | 187 |   |
| Shares      issued in connection with the   purchase      of Citizens Bancorp, Inc.                  |   |              | 584    |   |    |   | 73     |     |   |   | 18,129                 |   |   |                |    |   |   |   |   |   |   |   | 18,202 |   |
| Balance      at December 31, 2005                                                                                   |   |              | 7,389  |   |    |   | 924    |     |   |   | 36,468                 |   |   |                | 118,761 |   |   |   | (1,917 | ) |   |   | 154,236 |   |
| Net      income                                                                                                     |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | 21,372  |   |   |   |   |   |   |   | 21,372 |   |
| Other      comprehensive income                                                                                     |   |              |   |   |    |   |   |     |   |   |                   |   |   |                |    |   |   |   | 608 |   |   |   | 608 |   |
| Cash      dividends declared, $1.43 per share                                                                       |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | (10,781 | ) |   |   |   |   |   |   | (10,781 | ) |
| Purchase      of common stock                                                                                       |   |              | (26    | )      |    |   | (3     | )        |   |   | (117                   | )      |   |                | (700    | ) |   |   |   |   |   |   | (820 | ) |
| Stock      options exercised, including related tax benefits                                                        |   |              | 60     |   |    |   | 8      |     |   |   | 1,536                  |   |   |                |    |   |   |   |   |   |   |   | 1,544 |   |
| Shares      issued pursuant to Employee Stock Purchase Plan                                                         |   |              | 8      |   |    |   | 1      |     |   |   | 222                    |   |   |                |    |   |   |   |   |   |   |   | 223 |   |
| Stock      option expense                                                                                           |   |              |   |   |    |   |   |     |   |   | 154                    |   |   |                |    |   |   |   |   |   |   |   | 154 |   |
| Shares      issued in connection with the  purchase of Citizens      National  Bancshares, Inc. |   |              | 464    |   |    |   | 58     |     |   |   | 14,938                 |   |   |                |    |   |   |   |   |   |   |   | 14,996 |   |
| Adjustment      to initially apply SFAS    No.      158, net of tax of $2,4071                  |   |              |   |   |    |   |   |     |   |   |                   |   |   |                |    |   |   |   | (4,469 | ) |   |   | (4,469 | ) |
| Balance      at December 31, 2006                                                                                   |   |              | 7,895  |   |    |   | 988    |     |   |   | 53,201                 |   |   |                | 128,652 |   |   |   | (5,778 | ) |   |   | 177,063 |   |
| Net      income                                                                                                     |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | 15,627  |   |   |   |   |   |   |   | 15,627 |   |
| Other      comprehensive income                                                                                     |   |              |   |   |    |   |   |     |   |   |                   |   |   |                |    |   |   |   | 2,672 |   |   |   | 2,672 |   |
| Cash      dividends declared, $1.32 per share                                                                       |   |              |   |   |    |   |   |     |   |   |                   |   |   |                | (10,082 | ) |   |   |   |   |   |   | (10,082 | ) |
| Purchase      of common stock                                                                                       |   |              | (584   | )      |    |   | (73    | )        |   |   | (6,877                 | )      |   |                | (11,699 | ) |   |   |   |   |   |   | (18,649 | ) |
| Stock      options exercised, including related tax benefits                                                        |   |              | 63     |   |    |   | 7      |     |   |   | 1,540                  |   |   |                |    |   |   |   |   |   |   |   | 1,547 |   |
| Shares      issued pursuant to Employee Stock Purchase Plan                                                         |   |              | 11     |   |    |   | 1      |     |   |   | 253                    |   |   |                |    |   |   |   |   |   |   |   | 254 |   |
| Stock      option expense                                                                                           |   |              |   |   |    |   |   |     |   |   | 59                     |   |   |                |    |   |   |   |   |   |   |   | 59 |   |
| Balance      at December 31, 2007                                                                                   |   |              | 7,385  |   |    | $      | 923    |     |   | $      | 48,176                 |   |   | $                   | 122,498 |   |   | $ | (3,106 | ) |   | $ | 168,491 |   |

Revised 2006Balance Sheet and Statement of Changes in Shareholders’ Equity
Treasury Stock

----

Consolidated Statements of Cash Flows

|                                                                                             |   |   |     |   |   |   |     |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Years      Ended December 31, (In thousands)                                                     |   | 2007   |     |   | 2006   |   |     | 2005   |   |
| Cash      Flows from Operating Activities                                                        |   |   |     |   |   |   |     |   |   |
| Net      income                                                                                  |   | $      | 15,627   |   |   | $      | 21,372   |   |   | $ | 15,772 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:      |   |   |     |   |   |   |     |   |   |   |   |   |
| Depreciation      and amortization                                                               |   |   | 7,477    |   |   |   | 5,826    |   |   |   | 4,085 |   |
| Net      amortization (accretion) of investment security premiums  and      discounts: |   |   |     |   |   |   |     |   |   |   |   |   |
| Available      for sale                                                                          |   |   | (1,132   | )      |   |   | (424     | )      |   |   | 323 |   |
| Held      to maturity                                                                            |   |   | 1        |   |   |   | (25      | )      |   |   | (39 | ) |
| Provision      for loan losses                                                                   |   |   | 3,638    |   |   |   | 965      |   |   |   | 622 |   |
| Deferred      income tax benefit                                                                 |   |   | (1,807   | )      |   |   | (1,848   | )      |   |   | (194 | ) |
| Noncash      stock option expense                                                                |   |   | 59       |   |   |   | 125      |   |   |   |   |   |
| Mortgage      loans originated for sale                                                          |   |   | (19,684  | )      |   |   | (29,539  | )      |   |   | (35,456 | ) |
| Proceeds      from sale of mortgage loans                                                        |   |   | 21,081   |   |   |   | 26,973   |   |   |   | 35,849 |   |
| Gains      on sale of mortgage loans, net                                                        |   |   | (591     | )      |   |   | (649     | )      |   |   | (653 | ) |
| Gain      on sale of credit card portfolio                                                       |   |   |     |   |   |   |     |   |   |   | (700 | ) |
| Loss      (gain) on sale of premises and equipment, net                                          |   |   | 89       |   |   |   | (174     | )      |   |   | 14 |   |
| Loss      on sale of available for sale investment securities, net                               |   |   |     |   |   |   | 195      |   |   |   | 3 |   |
| Increase      in accrued interest receivable                                                     |   |   | (1,602   | )      |   |   | (3,450   | )      |   |   | (1,705 | ) |
| Income      from company-owned life insurance                                                    |   |   | (1,242   | )      |   |   | (1,301   | )      |   |   | (1,162 | ) |
| Decrease      in other assets                                                                    |   |   | 1,124    |   |   |   | 6,157    |   |   |   | 2,869 |   |
| Increase      in accrued interest payable                                                        |   |   | 1,672    |   |   |   | 2,594    |   |   |   | 618 |   |
| (Decrease)      increase in other liabilities                                                    |   |   | (2,656   | )      |   |   | 4,409    |   |   |   | (1,335 | ) |
| Gain      on sales of discontinued operations                                                    |   |   |     |   |   |   | (9,873   | )      |   |   |   |   |
| Net      cash provided by discontinued operating activities                                      |   |   |     |   |   |   | 1,390    |   |   |   | 1,638 |   |
| Net      cash provided by operating activities                                                   |   |   | 22,054   |   |   |   | 22,723   |   |   |   | 20,549 |   |
| Cash      Flows from Investing Activities                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Proceeds      from maturities and calls of investment securities:                                |   |   |     |   |   |   |     |   |   |   |   |   |
| Available      for sale                                                                          |   |   | 323,155  |   |   |   | 121,699  |   |   |   | 164,014 |   |
| Held      to maturity                                                                            |   |   | 3,943    |   |   |   | 5,847    |   |   |   | 4,314 |   |
| Proceeds      from sale of available for sale investment securities                              |   |   | 20,009   |   |   |   | 19,263   |   |   |   | 3,038 |   |
| Purchases      of available for sale  investment securities:                           |   |   | (555,792 | )      |   |   | (138,081 | )      |   |   | (158,252 | ) |
| Loans      originated for investment, net of principal collected                                 |   |   | (96,376  | )      |   |   | (112,426 | )      |   |   | (37,461 | ) |
| Purchase      of company-owned life insurance                                                    |   |   |     |   |   |   | (1,579   | )      |   |   |   |   |
| Payment      of prior year accrued purchase price-Citizens Bancorp,Inc.                          |   |   |     |   |   |   | (21,846  | )      |   |   |   |   |
| Net      cash acquired in purchase of Citizens National Bancshares,      Inc.                    |   |   |     |   |   |   | 1,066    |   |   |   |   |   |
| Purchase      of Citizens Bancorp, Inc., net of cash acquired                                    |   |   |     |   |   |   | (29      | )      |   |   | 10,620 |   |
| Purchase      of PNC Military Allotment operations, net of cash acquired                         |   |   | (1,943   | )      |   |   |     |   |   |   |   |   |
| Purchase      price refinements of previous acquisitions                                         |   |   | 50       |   |   |   |     |   |   |   | (205 | ) |
| Investment      in unconsolidated trusts                                                         |   |   | (696     | )      |   |   |     |   |   |   | (774 | ) |
| Additions      to mortgage servicing rights, net                                                 |   |   | (94      | )      |   |   | (47      | )      |   |   |   |   |
| Purchases      of premises and equipment                                                         |   |   | (5,245   | )      |   |   | (9,682   | )      |   |   | (3,341 | ) |
| Proceeds      from sale of equipment                                                             |   |   | 330      |   |   |   | 720      |   |   |   | 124 |   |
| Net      cash received on disposal of discontinued operations                                    |   |   |     |   |   |   | 47       |   |   |   |   |   |
| Net      cash provided by discontinued investing activities                                      |   |   |     |   |   |   | 9,384    |   |   |   | 15,058 |   |
| Net      cash used in investing activities                                                       |   |   | (312,659 | )      |   |   | (125,664 | )      |   |   | (2,865 | ) |
| Cash      Flows from Financing Activities                                                        |   |   |     |   |   |   |     |   |   |   |   |   |
| Net      increase in deposits                                                                    |   |   | 8,407    |   |   |   | 123,728  |   |   |   | 29,891 |   |
| Net      increase in federal funds purchased and other short-term      borrowings                |   |   | 4,037    |   |   |   | 1,722    |   |   |   | 10,767 |   |
| Proceeds      from securities sold under agreements to purchase and other long-term      debt    |   |   | 249,196  |   |   |   | 26,198   |   |   |   | 27,774 |   |
| Repayments      of securities sold under agreements to purchase and other long-term      debt    |   |   | (20,879  | )      |   |   | (13,496  | )      |   |   | (7,750 | ) |
| Dividends      paid                                                                              |   |   | (11,118  | )      |   |   | (9,553   | )      |   |   | (8,949 | ) |
| Purchase      of common stock                                                                    |   |   | (18,649  | )      |   |   | (820     | )      |   |   | (571 | ) |
| Shares      issued under Employee Stock Purchase Plan                                            |   |   | 254      |   |   |   | 223      |   |   |   | 187 |   |
| Stock      options exercised and related tax benefits                                            |   |   | 1,669    |   |   |   | 1,697    |   |   |   | 880 |   |
| Net      cash provided by (used in) discontinued financing    activities                         |   |   |     |   |   |   | 3,710    |   |   |   | (12,607 | ) |
| Net      cash provided by financing activities                                                   |   |   | 212,917  |   |   |   | 133,409  |   |   |   | 39,622 |   |
| Net      (decrease) increase in cash and cash equivalents                                        |   |   | (77,688  | )      |   |   | 30,468   |   |   |   | 57,306 |   |
| Less:      net increase in cash and cash equivalents of discontinued      operations             |   |   |     |   |   |   | (4,658   | )      |   |   | (4,089 | ) |
| Net      (decrease) increase in cash and cash equivalents from continuing      operations        |   |   | (77,688  | )      |   |   | 25,810   |   |   |   | 53,217 |   |
| Cash      and cash equivalents from continuing operations at beginning of      year              |   |   | 156,828  |   |   |   | 131,018  |   |   |   | 77,801 |   |
| Cash      and cash equivalents from continuing operations at end of    year                      |   | $      | 79,140   |   |   | $      | 156,828  |   |   | $ | 131,018 |   |
|                                                                                             |   |   |     |   |   |   |     |   |   |   |   |   |
| (table      continues on next page)                                                              |

----

|                                                                                                                                            |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Supplemental      Disclosures                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the year for:                                                                                                             |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                        |   | $      | 54,367 |   |   | $      | 42,685 |   |   | $ | 26,973 |   |
| Income      taxes                                                                                                                               |   |   | 9,854  |   |   |   | 4,900  |   |   |   | 2,725 |   |
| Transfers      from loans to repossessed assets                                                                                                 |   |   | 3,952  |   |   |   | 1,973  |   |   |   | 2,751 |   |
| Cash      dividend declared and unpaid at year-end                                                                                              |   |   | 2,436  |   |   |   | 3,472  |   |   |   | 2,244 |   |
| Issuance      of 464 and 584 shares of common stock to acquire Citizens National      Bancshares, Inc. and Citizens Bancorp, Inc., respectively |   |   |   |   |   |   | 14,996 |   |   |   | 18,202 |   |
| Acquisition      purchase price payable at year-end                                                                                             |   |   |   |   |   |   |   |   |   |   | 21,846 |   |

----

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| 1. | Summary      of Significant Accounting Policies |
|----|-------------------------------------------------|

Revised 2006 Balance Sheet and Statement of Changes inShareholders’ Equity

----

----

----

----

|                                                                    |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands, except per share data)Years      Ended December 31, |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |
| Net      income, basic and diluted                                      |   | $      | 15,627 |   |   | $      | 21,372 |   |   | $ | 15,772 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      shares outstanding                                         |   |   | 7,706  |   |   |   | 7,511  |   |   |   | 6,831 |   |
| Effect      of dilutive stock options                                   |   |   |   |   |   |   | 15     |   |   |   | 33 |   |
| Average      diluted shares outstanding                                 |   |   | 7,706  |   |   |   | 7,526  |   |   |   | 6,864 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share, basic                                        |   | $      | 2.03   |   |   | $      | 2.85   |   |   | $ | 2.31 |   |
| Net      income per share, diluted                                      |   |   | 2.03   |   |   |   | 2.84   |   |   |   | 2.30 |   |

| Income      from continuing operations, basic and diluted |   | $      | 15,627 |   |   | $      | 13,665 |   |   | $      | 14,532 |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      per share from continuing operations, basic   |   | $      | 2.03   |   |   | $      | 1.82   |   |   | $      | 2.13   |   |
| Income      per share from continuing operations, diluted |   |   | 2.03   |   |   |   | 1.82   |   |   |   | 2.12   |   |

| Income      from discontinued operations, basic and diluted |   | $      | 0      |   |   | $      | 7,707  |   |   | $      | 1,240  |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      per share from discontinued operations, basic   |   | $      | 0      |   |   | $      | 1.03   |   |   | $      | .18    |   |
| Income      per share from discontinued operations, diluted |   |   | 0      |   |   |   | 1.02   |   |   |   | .18    |   |

Treasury Stock

----

|                                                                                                                                            |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| (In      thousands, except per share data)Years      Ended December 31,                                                                         |   | 2005   |   |
| Net      Income                                                                                                                                 |   |   |   |
| As      reported                                                                                                                                |   | $      | 15,772 |   |
| Add:   Stock-based      compensation expense included in reported net income                                                     |   |   |   |   |
| Less:  Stock-based      compensation expense determined under fair value based method for all      awards, net of related tax effects |   |   | (112   | ) |
| Proforma                                                                                                                                        |   | $      | 15,660 |   |
| Net      Income Per Common Share                                                                                                                |   |   |   |   |
| Basic,      as reported                                                                                                                         |   | $      | 2.31   |   |
| Basic,      proforma                                                                                                                            |   |   | 2.29   |   |
|                                                                                                                                            |   |   |   |   |
| Diluted,      as reported                                                                                                                       |   |   | 2.30   |   |
| Diluted,      proforma                                                                                                                          |   |   | 2.28   |   |

| Income      From Continuing Operations                                                                                                          |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| As      reported                                                                                                                                |   | $      | 14,532 |   |
| Add:   Stock-based      compensation expense included in reported net income                                                     |   |   |   |   |
| Less:  Stock-based      compensation expense determined under fair value based method for all      awards, net of related tax effects |   |   | (100   | ) |
| Proforma                                                                                                                                        |   | $      | 14,432 |   |
| Income      Per Common Share From Continuing Operations                                                                                         |   |   |   |   |
| Basic,      as reported                                                                                                                         |   | $      | 2.13   |   |
| Basic,      proforma                                                                                                                            |   |   | 2.11   |   |
|                                                                                                                                            |   |   |   |   |
| Diluted,      as reported                                                                                                                       |   |   | 2.12   |   |
| Diluted,      proforma                                                                                                                          |   |   | 2.10   |   |

| Income      From Discontinued Operations                                                                                                        |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| As      reported                                                                                                                                |   | $      | 1,240  |   |
| Add:   Stock-based      compensation expense included in reported net income                                                     |   |   |   |   |
| Less:  Stock-based      compensation expense determined under fair value based method for all      awards, net of related tax effects |   |   | (12    | ) |
| Proforma                                                                                                                                        |   | $      | 1,228  |   |
| Income      Per Common Share From Discontinued Operations                                                                                       |   |   |   |   |
| Basic      and diluted, as reported                                                                                                             |   | $      | .18    |   |
| Basic      and diluted, proforma                                                                                                                |   |   | .18    |   |

----

|                          |   |   |   |
|-------------------------------|--------|--------|--------|
|                          |   | ESPP   |   |
|                          |   | 2007   |   |   | 2006 |   |   | 2005 |   |
| Dividend      yield           |   |   | 3.97   |  % |   |   | 3.88 | % |   |   | 3.82 | % |
| Expected      volatility      |   |   | 15.3   |   |   |   | 14.0 |   |   |   | 13.0 |   |
| Risk-free      interest rate  |   |   | 4.75   |   |   |   | 4.70 |   |   |   | 2.98 |   |
| Expected      life (in years) |   |   | .25    |   |   |   | .25 |   |   |   | .25 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value               |   | $      | 5.12   |   |   | $ | 5.75 |   |   | $ | 5.97 |   |

----

Recently Issued But Not Yet EffectiveAccounting Standards

| (In      thousands)              |   | November      30, 2006 |    |
|----------------------------------|--------|------------------------|---------|
| Assets                           |   |                   |    |
| Cash      and cash equivalents   |   | $                      | 13,544  |   |
| Investment      securities       |   |                   | 32,276  |   |
| Loans,      net                  |   |                   | 88,631  |   |
| Premises      and equipment, net |   |                   | 4,978   |   |
| Other      assets                |   |                   | 5,118   |   |
| Total      assets                |   | $                      | 144,547 |   |
| Liabilities                      |   |                   |    |   |
| Deposits                         |   | $                      | 146,208 |   |
| Other      borrowed funds        |   |                   | 1,459   |   |
| Other      liabilities           |   |                   | 921     |   |
| Total      liabilities           |   |                   | 148,588 |   |
|                             |   |                   |    |   |
| Net      liabilities             |   | $                      | 4,041   |   |

----

| (In      thousands)            |   | Eleven      months ended November      30, 2006 |   |   | Year      endedDecember      31, 2005 |   |
|--------------------------------|--------|------------------------------------------------------|--------|--------|---------------------------------------|--------|
| Interest      income           |   | $                                                    | 9,008  |   |                                  | $      | 8,443 |   |
| Interest      expense          |   |                                                 | 3,696  |   |                                  |   | 3,370 |   |
| Net      interest income       |   |                                                 | 5,312  |   |                                  |   | 5,073 |   |
| Provision      for loan losses |   |                                                 | 17     |   |                                  |   | 96 |   |
| Noninterest      income        |   |                                                 | 1,272  |   |                                  |   | 1,305 |   |
| Noninterest      expense       |   |                                                 | 4,597  |   |                                  |   | 4,559 |   |
| Income      tax expense        |   |                                                 | 679    |   |                                  |   | 483 |   |
| Net      income                |   | $                                                    | 1,291  |   |                                  | $      | 1,240 |   |

| 3.        Investment Securities |
|-------------------------------------------|

|                                                   |   |      |    |   |                  |   |   |                   |   |   |            |   |
|--------------------------------------------------------|--------|-----------|---------|--------|-----------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Amortized |    |   | Gross                 |   |   | Gross                  |   |   | Estimated       |   |
| December      31, 2007 (In thousands)                  |   | Cost      |    |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Fair      Value |   |
| Available      For Sale                                |   |      |    |   |                  |   |   |                   |   |   |            |   |
| Obligations      of U.S. government-sponsored entities |   | $         | 88,226  |   |                  | $      | 332    |                   |   | $      | 36              |   |   | $ | 88,522 |   |
| Obligations      of states and political subdivisions  |   |      | 93,430  |   |                  |   | 1,165  |                   |   |   | 414             |   |   |   | 94,181 |   |
| Mortgage-backed      securities                        |   |      | 343,189 |   |                  |   | 1,042  |                   |   |   | 1,055           |   |   |   | 343,176 |   |
| U.S.      Treasury securities                          |   |      | 863     |   |                  |   |   |                   |   |   |            |   |   |   | 863 |   |
| Money      market mutual funds                         |   |      | 1,396   |   |                  |   |   |                   |   |   |            |   |   |   | 1,396 |   |
| Equity      securities                                 |   |      | 9,363   |   |                  |   |   |                   |   |   |            |   |   |   | 9,363 |   |
| Other                                                  |   |      | 5,792   |   |                  |   |   |                   |   |   | 660             |   |   |   | 5,132 |   |
| Total      securities – available for sale       |   | $         | 542,259 |   |                  | $      | 2,539  |                   |   | $      | 2,165           |   |   | $ | 542,633 |   |
| Held      To Maturity                                  |   |      |    |   |                  |   |   |                   |   |   |            |   |   |   |   |   |
| Obligations      of states and political subdivisions  |   | $         | 3,844   |   |                  | $      | 19     |                   |   | $      | 0               |   |   | $ | 3,863 |   |

|                                                   |   |      |    |   |                  |   |   |                   |   |   |            |   |
|--------------------------------------------------------|--------|-----------|---------|--------|-----------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Amortized |    |   | Gross                 |   |   | Gross                  |   |   | Estimated       |   |
| December      31, 2006 (In thousands)                  |   | Cost      |    |   | Unrealized      Gains |   |   | Unrealized      Losses |   |   | Fair      Value |   |
| Available      For Sale                                |   |      |    |   |                  |   |   |                   |   |   |            |   |
| Obligations      of U.S. government-sponsored entities |   | $         | 142,128 |   |                  | $      | 74     |                   |   | $      | 370             |   |   | $ | 141,832 |   |
| Obligations      of states and political subdivisions  |   |      | 87,974  |   |                  |   | 939    |                   |   |   | 766             |   |   |   | 88,147 |   |
| Mortgage-backed      securities                        |   |      | 88,607  |   |                  |   | 87     |                   |   |   | 1,978           |   |   |   | 86,716 |   |
| U.S.      Treasury securities                          |   |      | 484     |   |                  |   |   |                   |   |   |            |   |   |   | 484 |   |
| Money      market mutual funds                         |   |      | 1,396   |   |                  |   |   |                   |   |   |            |   |   |   | 1,396 |   |
| Equity      securities                                 |   |      | 7,910   |   |                  |   |   |                   |   |   |            |   |   |   | 7,910 |   |
| Total      securities – available for sale       |   | $         | 328,499 |   |                  | $      | 1,100  |                   |   | $      | 3,114           |   |   | $ | 326,485 |   |
| Held      To Maturity                                  |   |      |    |   |                  |   |   |                   |   |   |            |   |   |   |   |   |
| Obligations      of states and political subdivisions  |   | $         | 7,788   |   |                  | $      | 61     |                   |   | $      | 0               |   |   | $ | 7,849 |   |

----

|                                        |   |                    |    |   |                  |   |
|---------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                                        |   | Available      For Sale |    |   | Held      To Maturity |   |
|                                        |   | Amortized               |    |   | Estimated             |   |   | Amortized |   |   | Estimated |   |
| December      31, 2007 (In thousands)       |   | Cost                    |    |   | Fair      Value       |   |   | Cost |   |   | Fair      Value |   |
| Due      in one year or less                |   | $                       | 68,516  |   |                  | $      | 68,527 |   |   | $ | 1,980 |   |   | $ | 1,995 |   |
| Due      after one year through five years  |   |                    | 61,939  |   |                  |   | 62,396 |   |   |   | 789 |   |   |   | 793 |   |
| Due      after five years through ten years |   |                    | 39,519  |   |                  |   | 39,960 |   |   |   |   |   |   |   |   |   |
| Due      after ten years                    |   |                    | 19,733  |   |                  |   | 19,211 |   |   |   | 1,075 |   |   |   | 1,075 |   |
| Mortgage-backed      securities             |   |                    | 343,189 |   |                  |   | 343,176 |   |   |   |   |   |   |   |   |   |
| Total                                       |   | $                       | 532,896 |   |                  | $      | 533,270 |   |   | $ | 3,844 |   |   | $ | 3,863 |   |

|                                                   |   |                     |   |   |                   |   |   |            |   |
|--------------------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Less      than 12 Months |   |   | 12      Months or More |   |   | Total           |   |
|  December      31, 2007 (In thousands)            |   | Fair      Value          |   |   | UnrealizedLosses       |   |   | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
| Obligations      of U.S. government-sponsored entities |   | $                        | 999    |   |                   | $      | 4      |            |   | $ | 11,159 |   |   | $ | 33 |   |   | $ | 12,158 |   |   | $ | 36 |   |
| Obligations      of states and political subdivisions  |   |                     | 7,734  |   |                   |   | 82     |            |   |   | 21,323 |   |   |   | 331 |   |   |   | 29,057 |   |   |   | 414 |   |
| Mortgage-backed      securities                        |   |                     | 11,004 |   |                   |   | 46     |            |   |   | 45,740 |   |   |   | 1,009 |   |   |   | 56,744 |   |   |   | 1,055 |   |
| Other                                                  |   |                     | 5,132  |   |                   |   | 660    |            |   |   |   |   |   |   |   |   |   |   | 5,132 |   |   |   | 660 |   |
| Total                                                  |   | $                        | 24,869 |   |                   | $      | 792    |            |   | $ | 78,222 |   |   | $ | 1,373 |   |   | $ | 103,091 |   |   | $ | 2,165 |   |

|                                                   |   |                     |   |   |                   |   |   |            |   |
|--------------------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Less      than 12 Months |   |   | 12      Months or More |   |   | Total           |   |
|  December      31, 2006 (In thousands)            |   | Fair      Value          |   |   | UnrealizedLosses       |   |   | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
| Obligations      of U.S. government-sponsored entities |   | $                        | 25,591 |   |                   | $      | 34     |            |   | $ | 34,949 |   |   | $ | 336 |   |   | $ | 60,540 |   |   | $ | 370 |   |
| Obligations      of states and political subdivisions  |   |                     | 12,756 |   |                   |   | 63     |            |   |   | 25,793 |   |   |   | 703 |   |   |   | 38,549 |   |   |   | 766 |   |
| Mortgage-backed      securities                        |   |                     | 2,467  |   |                   |   | 6      |            |   |   | 68,993 |   |   |   | 1,972 |   |   |   | 71,460 |   |   |   | 1,978 |   |
| Total                                                  |   | $                        | 40,814 |   |                   | $      | 103    |            |   | $ | 129,735 |   |   | $ | 3,011 |   |   | $ | 170,549 |   |   | $ | 3,114 |   |

----

| 4.         Loans |
|---------------------------------|

|                                                                       |   |   |      |   |   |   |
|----------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| December      31, (In thousands)                                           |   | 2007   |      |   | 2006   |   |
| Commercial,      financial, and agricultural                               |   | $      | 154,015   |   |   | $      | 197,613 |   |
| Real      estate – construction                                      |   |   | 254,788   |   |   |   | 176,779 |   |
| Real      estate mortgage – residential                              |   |   | 405,992   |   |   |   | 381,081 |   |
| Real      estate mortgage – farmland and other commercialenterprises |   |   | 394,900   |   |   |   | 351,793 |   |
| Installment      loans                                                     |   |   | 52,028    |   |   |   | 57,116 |   |
| Lease      financing                                                       |   |   | 34,109    |   |   |   | 37,522 |   |
|      Total      loans                             |   |   | 1,295,832 |   |   |   | 1,201,904 |   |
| Less      unearned income                                                  |   |   | (3,847    | )      |   |   | (4,068 | ) |
|      Total      loans, net of unearned income     |   | $      | 1,291,985 |   |   | $      | 1,197,836 |   |

|                                                                                                                        |   |   |    |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| (In      thousands)                                                                                                         |   | Amount |    |
| Balance,      December 31, 2006                                                                                             |   | $      | 25,903  |   |
| New      loans                                                                                                              |   |   | 21,442  |   |
| Repayments                                                                                                                  |   |   | (16,440 | ) |
| Loans      no longer meeting disclosure requirements, new loans meeting disclosure      requirements, and other adjustments |   |   | (1,630  | ) |
|      Balance,      December 31, 2007                                                               |   | $      | 29,275  |   |

| 5.         Allowance for Loan Losses |
|-----------------------------------------------------|

|                                                   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Years      Ended December 31, (In thousands)           |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Balance,      beginning of year                        |   | $      | 11,999 |   |   | $      | 11,069 |   |   | $ | 11,043 |   |
| Acquisition      of Citizens National Bancshares, Inc. |   |   |   |   |   |   | 1,066  |   |   |   |   |   |
| Acquisition      of Citizens Bancorp, Inc.             |   |   |   |   |   |   |   |   |   |   | 1,410 |   |
| Provision      for loan losses                         |   |   | 3,638  |   |   |   | 965    |   |   |   | 622 |   |
| Recoveries                                             |   |   | 733    |   |   |   | 678    |   |   |   | 439 |   |
| Loans      charged off                                 |   |   | (2,154 | )      |   |   | (1,779 | )      |   |   | (2,445 | ) |
| Balance,      end of year                              |   | $      | 14,216 |   |   | $      | 11,999 |   |   | $ | 11,069 |   |

----

|                                                            |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Years      Ended December 31, (In thousands)                    |   | 2007   |   |   | 2006   |   |
| Year-end      loans with no allocated allowance for loan losses |   | $      | 1,877  |   |   | $      | 3,153 |   |
| Year-end      loans with allocated allowance for loan losses    |   |   | 28,127 |   |   |   | 1,920 |   |
| Total                                                           |   | $      | 30,004 |   |   | $      | 5,073 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Amount      of the allowance for loan losses allocated          |   | $      | 1,834  |   |   | $      | 105 |   |

|                                                    |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Years      Ended December 31, (In thousands)            |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Average      of individually impaired loans during year |   | $      | 13,037 |   |   | $      | 5,151  |   |   | $ | 768 |   |
| Interest      income recognized during impairment       |   |   | 1,382  |   |   |   | 323    |   |   |   |   |   |
| Cash-basis      interest income recognized              |   |   | 683    |   |   |   |   |   |   |   |   |   |

|                                                   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| December      31, (In thousands)                       |   | 2007   |   |   | 2006   |   |
| Nonaccrual      loans                                  |   | $      | 18,073 |   |   | $      | 1,462 |   |
| Loans      past due 90 days or more and still accruing |   |   | 2,977  |   |   |   | 2,856 |   |
| Total      nonperforming loans                         |   | $      | 21,050 |   |   | $      | 4,318 |   |

| 6.         Premises and Equipment |
|--------------------------------------------------|

|                                                |   |   |    |   |   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| December      31, (In thousands)                    |   | 2007   |    |   | 2006   |   |
| Land,      buildings, and leasehold improvements    |   | $      | 48,767  |   |   | $      | 45,652 |   |
| Furniture      and equipment                        |   |   | 20,180  |   |   |   | 21,470 |   |
| Total      premises and equipment                   |   |   | 68,947  |   |   |   | 67,122 |   |
| Less      accumulated depreciation and amortization |   |   | (30,284 | )      |   |   | (29,347 | ) |
| Premises      and equipment, net                    |   | $      | 38,663  |   |   | $      | 37,775 |   |

| 7.        Deposit Liabilities |
|-----------------------------------------|

|                |   |   |    |
|---------------------|--------|--------|---------|
| (In      thousands) |   | Amount |    |
| 2008                |   | $      | 630,507 |   |
| 2009                |   |   | 90,041  |   |
| 2010                |   |   | 28,120  |   |
| 2011                |   |   | 11,565  |   |
| 2012                |   |   | 7,436   |   |
| Thereafter          |   |   | 2,352   |   |
| Total               |   | $      | 770,021 |   |

----

| 8.         Federal Funds Purchased and Other Short-term  Borrowings |
|------------------------------------------------------------------------------------|

|                                                                                |   |   |    |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| December      31, (Dollars in thousands)                                            |   | 2007   |    |   | 2006   |   |
| Federal      funds purchased and securities sold under agreement to      repurchase |   | $      | 80,315  |   |   | $      | 67,941 |   |
| FHLB      advances                                                                  |   |   |    |   |   |   | 8,000 |   |
| Other                                                                               |   |   | 440     |   |   |   | 777 |   |
| Total      short-term                                                               |   | $      | 80,755  |   |   | $      | 76,718 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| Average      balance during the year                                                |   | $      | 97,192  |   |   | $      | 97,489 |   |
| Maximum      month-end balance during the year                                      |   |   | 155,362 |   |   |   | 113,926 |   |
| Average      interest rate during the year                                          |   |   | 4.63    | %      |   |   | 4.80 | % |
| Average      interest rate at year-end                                              |   |   | 3.71    |   |   |   | 4.55 |   |

| 9.    Securities Sold Under Agreements to      Repurchase and Other Long-termBorrowings |
|--------------------------------------------------------------------------------------------------------|

|                                                |   |   |    |   |    |   |   |   |   |   |    |   |
|-----------------------------------------------------|--------|--------|---------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                                |   |   |    |   | Average |   |   |   |   |   | Average |   |
| December      31,  (Dollars in thousands) |   | 2007   |    |   | Rate    |   |   | 2006   |   |   | Rate    |   |
| FHLB      advances                                  |   | $      | 66,526  |   |    |   | 4.65   | %      |   | $      | 61,174  |   |   |   | 4.51 | % |
| Subordinated      notes payable                     |   |   | 48,970  |   |    |   | 6.71   |   |   |   | 25,774  |   |   |   | 6.96 |   |
| Securities      sold under agreements to repurchase |   |   | 200,000 |   |    |   | 3.95   |   |   |   |    |   |   |   |   |   |
| Other                                               |   |   | 813     |   |    |   | 2.32   |   |   |   | 1,044   |   |   |   | 2.32 |   |
| Total      long-term                                |   | $      | 316,309 |   |    |   | 4.52   | %      |   | $      | 87,992  |   |   |   | 5.20 | % |

----

|                |   |   |    |
|---------------------|--------|--------|---------|
| (In      thousands) |   | Amount |    |
| 2008                |   | $      | 10,802  |   |
| 2009                |   |   | 13,787  |   |
| 2010                |   |   | 50,783  |   |
| 2011                |   |   | 5,613   |   |
| 2012                |   |   | 61,486  |   |
| Thereafter          |   |   | 173,838 |   |
| Total               |   | $      | 316,309 |   |

----

|                                                                                 |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| December      31, (In thousands)                                                     |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Currently      payable                                                               |   | $      | 6,094  |   |   | $      | 5,208  |   |   | $ | 3,985 |   |
| Deferred                                                                             |   |   | (1,807 | )      |   |   | (1,848 | )      |   |   | (194 | ) |
| Total      applicable to continuing operations                                       |   |   | 4,287  |   |   |   | 3,360  |   |   |   | 3,791 |   |
| Deferred      tax (credited) charged to components of shareholders’    equity: |   |   |   |   |   |   |   |   |   |   |   |   |
|   Unfunded      status of postretirement benefits                          |   |   | (139   | )      |   |   | 1,664  |   |   |   |   |   |
|   Net      unrealized securities gains (losses)                            |   |   | 836    |   |   |   | 237    |   |   |   | (1,362 | ) |
| Total      income taxes from continuing operations                                   |   | $      | 4,984  |   |   | $      | 5,261  |   |   | $ | 2,429 |   |

|                                                                   |   |   |   |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| December      31, (In thousands)                                       |   | 2006   |   |   | 2005   |   |
| Currently      payable                                                 |   | $      | 4,287  |   |   | $      | 294 |   |
| Deferred                                                               |   |   | (152   | )      |   |   | 189 |   |
| Total      applicable to discontinued operations                       |   |   | 4,135  |   |   |   | 483 |   |
| Deferred      tax charged to components of shareholders’ equity: |   |   |   |   |   |   |   |   |
|   Net      unrealized securities gains (losses)              |   |   | 90     |   |   |   | (47 | ) |
| Total      income taxes from discontinued operations                   |   | $      | 4,225  |   |   | $      | 436 |   |

|                                                                |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| December      31,                                                   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Federal      statutory rate                                         |   |   | 35.0   | %      |   |   | 35.0   | %      |   |   | 35.0 | % |
| Changes      from statutory rates resulting from:                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt      interest                                            |   |   | (8.1   | )      |   |   | (9.7   | )      |   |   | (8.3 | ) |
| Nondeductible      interest to carry tax-exempt obligations         |   |   | 1.1    |   |   |   | 1.2    |   |   |   | .7 |   |
| Tax      credits                                                    |   |   | (2.7   | )      |   |   | (3.8   | )      |   |   | (3.6 | ) |
| Premium      income not subject to tax                              |   |   | (1.9   | )      |   |   | (2.4   | )      |   |   | (.2 | ) |
| Company-owned      life insurance                                   |   |   | (2.1   | )      |   |   | (2.4   | )      |   |   | (1.9 | ) |
| Other,      net                                                     |   |   | .2     |   |   |   | 1.8    |   |   |   | (1.0 | ) |
| Effective      tax rate on pretax income from continuing operations |   |   | 21.5   | %      |   |   | 19.7   | %      |   |   | 20.7 | % |

|                                                                  |   |   |   |   |   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| December      31,                                                     |   | 2006   |   |   | 2005   |   |
| Federal      statutory rate                                           |   |   | 35.0   | %      |   |   | 35.0 | % |
| Changes      from statutory rates resulting from:                     |   |   |   |   |   |   |   |   |
| Tax-exempt      interest                                              |   |   | (.7    | )      |   |   | (5.4 | ) |
| Nondeductible      interest to carry tax-exempt obligations           |   |   | .1     |   |   |   | .6 |   |
| Company-owned      life insurance                                     |   |   | (.2    | )      |   |   | (1.1 | ) |
| Other,      net                                                       |   |   | .7     |   |   |   | (1.1 | ) |
| Effective      tax rate on pretax income from discontinued operations |   |   | 34.9   | %      |   |   | 28.0 | % |

----

|                                                                    |   |   |   |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| December      31, (In thousands)                                        |   | 2007   |   |   | 2006   |   |
| Assets                                                                  |   |   |   |   |   |   |
| Allowance      for loan losses                                          |   | $      | 4,891  |   |   | $      | 4,122 |   |
| Unrealized      losses on available for sale investment securities, net |   |   |   |   |   |   | 705 |   |
| Deferred      directors’ fees                                     |   |   | 242    |   |   |   | 131 |   |
| Postretirement      benefit obligations                                 |   |   | 3,894  |   |   |   | 3,251 |   |
| Stock      options                                                      |   |   | 35     |   |   |   | 513 |   |
| Commissions                                                             |   |   |   |   |   |   | 12 |   |
| Self-funded      insurance                                              |   |   | 269    |   |   |   | 279 |   |
| Paid      time off                                                      |   |   | 614    |   |   |   | 455 |   |
| Other                                                                   |   |   | 7      |   |   |   | 157 |   |
| Total      deferred tax assets                                          |   |   | 9,952  |   |   |   | 9,625 |   |
| Liabilities                                                             |   |   |   |   |   |   |   |   |
| Depreciation                                                            |   |   | 533    |   |   |   | 925 |   |
| Unrealized      gains on available for sale investment securities, net  |   |   | 131    |   |   |   |   |   |
| Prepaid      expenses                                                   |   |   | 636    |   |   |   | 590 |   |
| Discount      on investment securities                                  |   |   | 1,012  |   |   |   | 1,040 |   |
| Deferred      loan fees                                                 |   |   | 1,197  |   |   |   | 1,000 |   |
| Lease      financing operations                                         |   |   | 1,502  |   |   |   | 1,942 |   |
| Intangibles                                                             |   |   | 2,577  |   |   |   | 2,874 |   |
| Total      deferred tax liabilities                                     |   |   | 7,588  |   |   |   | 8,371 |   |
| Net      deferred tax asset                                             |   | $      | 2,364  |   |   | $      | 1,254 |   |

----

|                                 |   |   |   |
|--------------------------------------|--------|--------|--------|
| (In      thousands)                  |   | 2007   |   |   | 2006 |   |
| Change      in Benefit Obligation    |   |   |   |   |   |   |
| Obligation      at beginning of year |   | $      | 561    |   |   | $ | 374 |   |
| Service      cost                    |   |   | 31     |   |   |   | 41 |   |
| Interest      cost                   |   |   | 32     |   |   |   | 22 |   |
| Actuarial      (gain) loss           |   |   | (157   | )   |   |   | 124 |   |
| Benefit      payments                |   |   | (5     | ) |   |   |   |   |
| Obligation      at end of year       |   | $      | 462    |   |   | $ | 561 |   |

|                               |   |   |   |
|------------------------------------|--------|--------|--------|
| (In      thousands)                |   | 2007   |   |   | 2006 |   |
| Service      cost                  |   | $      | 31     |   |   | $ | 41 |   |
| Interest      cost                 |   |   | 32     |   |   |   | 21 |   |
| Recognized      net actuarial loss |   |   | 22     |   |   |   | 17 |   |
| Net      periodic benefit cost     |   | $      | 85     |   |   | $ | 79 |   |
| Major      assumptions:            |   |   |   |   |   |   |   |   |
| Discount      rate                 |   |   | 5.75   | % |   |   | 5.75 | % |

|                |   |                              |   |
|---------------------|--------|-----------------------------------|--------|
| (In      thousands) |   | Supplemental      Retirement Plan |   |
| 2008                |   | $                                 | 5      |   |
| 2009                |   |                              | 5      |   |
| 2010                |   |                              | 5      |   |
| 2011                |   |                              | 5      |   |
| 2012                |   |                              | 5      |   |
| 2013-2017           |   |                              |   | 134 |   |
| Total               |   | $                                 | 159    |   |

|                                 |   |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                  |   | 2007   |   |   | 2006   |   |
| Unrecognized      net actuarial loss |   | $      | 125    |   |   | $      | 304 |   |
| Total                                |   | $      | 125    |   |   | $      | 304 |   |

|                                 |   |                              |   |
|--------------------------------------|--------|-----------------------------------|--------|
| (In      thousands)                  |   | Supplemental      Retirement Plan |   |
| Unrecognized      net actuarial loss |   | $                                 | 8      |   |
| Total                                |   | $                                 | 8      |   |

----

|                                 |   |   |    |
|--------------------------------------|--------|--------|---------|
|                                 |   | 2007   |    |
|                                 |   |   |    |   | Weighted |   |
|                                 |   |   |    |   | Average |   |
|                                 |   | Shares |    |   | Price |   |
| Outstanding      at January 1        |   |   | 125,522 |   |   | $ | 28.62 |   |
| Exercised                            |   |   | (62,901 | ) |   |   | 24.61 |   |
| Outstanding      at December 31      |   |   | 62,621  |   |   | $ | 32.66 |   |
|                                 |   |   |    |   |   |   |   |   |
| Options      exercisable at year-end |   |   | 62,621  |   |   | $ | 32.66 |   |

|                         |   |   |        |   |   |                       |   |
|------------------------------|--------|--------|-------------|--------|--------|----------------------------|--------|
|                         |   |   | Outstanding |   |   | Exercisable                |   |
|                         |   |   |        |   |   | Weighted      Average      |   |   |   |   |   |   |   |   |   |   |
|                         |   |   |        |   |   | Remaining      Contractual |   |   | Weighted      Average |   |   |   |   |   | Weighted      Average |   |
| Exercise      Price          |   |   | Number      |   |   | Life      (Years)          |   |   | Exercise      Price |   |   | Number |   |   | Exercise      Price |   |
| $29.75                       |   |   |        | 26,572 |   |                       |   | 2.00 |   |   | $ | 29.75 |   |   |   | 26,572 |   |   | $ | 29.75 |   |
| $34.80                       |   |   |        | 36,049 |   |                       |   | 6.83 |   |   |   | 34.80 |   |   |   | 36,049 |   |   |   | 34.80 |   |
| Outstanding      at year-end |   |   |        | 62,621 |   |                       |   | 4.78 |   |   | $ | 32.66 |   |   |   | 62,621 |   |   | $ | 32.66 |   |

|                                             |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                              |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Tax      benefit realized from options exercised |   | $      | 123    |   |   | $      | 168    |   |   | $ | 109 |   |
| Total      intrinsic value of options exercised  |   |   | 353    |   |   |   | 479    |   |   |   | 311 |   |
| Cash      received from options exercised        |   |   | 1,546  |   |   |   | 1,529  |   |   |   | 771 |   |

| 13.        Postretirement Medical Benefits |
|------------------------------------------------------|

----

|                                 |   |   |   |
|--------------------------------------|--------|--------|--------|
| (In      thousands)                  |   | 2007   |   |   |   | 2006 | 1 |
| Change      in Benefit Obligation    |   |   |   |   |   |   |   |
| Obligation      at beginning of year |   | $      | 11,164 |   |   | $ | 9,437 |   |
| Service      cost                    |   |   | 441    |   |   |   | 258 |   |
| Interest      cost                   |   |   | 632    |   |   |   | 415 |   |
| Prior      service cost              |   |   |   |   |   |   | 299 |   |
| Actuarial      (gain) loss           |   |   | (981   | ) |   |   | 1,091 |   |
| Participant      contributions       |   |   | 55     |   |   |   | 32 |   |
| Benefit      payments                |   |   | (308   | ) |   |   | (368 | ) |
| Obligation      at end of year       |   | $      | 11,003 |   |   | $ | 11,164 |   |

Revised 2006 Balance Sheet and Statement of Changes inShareholders’ Equity

|                                       |   |   |   |
|--------------------------------------------|--------|--------|--------|
| (In      thousands)                        |   | 2007   |   |   | 2006 |   |
| Service      cost                          |   | $      | 441    |   |   | $ | 258 |   |
| Interest      cost                         |   |   | 632    |   |   |   | 415 |   |
| Amortization      of transition obligation |   |   | 101    |   |   |   | 102 |   |
| Recognized      prior service cost         |   |   | 299    |   |   |   | 268 |   |
| Recognized      net actuarial loss         |   |   | 162    |   |   |   | 21 |   |
| Net      periodic benefit cost             |   | $      | 1,635  |   |   | $ | 1,064 |   |
| Major      assumptions:                    |   |   |   |   |   |   |   |   |
| Discount      rate                         |   |   | 5.75   | % |   |   | 5.75 | % |
| Retiree      participation rate (Plan 1)   |   |   | 100.00 |   |   |   | 100.00 |   |
| Retiree      participation rate (Plan 2)   |   |   | 72.00  |   |   |   | 80.00 |   |

|                                                                                                                      |   |             |   |   |             |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| (In      thousands)                                                                                                       |   | 1%      Increase |   |   | 1%      Decrease |   |
| Effect      on total of service and interest cost components of net periodic      postretirement health care benefit cost |   | $                | 239    |   |             | $      | (185 | ) |
| Effect      on accumulated postretirement benefit obligation                                                              |   |             | 1,928  |   |             |   | (1,539 | ) |

|                |   |   |                                 |   |
|---------------------|--------|--------|--------------------------------------|--------|
| (In      thousands) |   |   | Postretirement      Medical Benefits |   |
| 2008                |   |   | $                                    | 356    |   |
| 2009                |   |   |                                 | 393    |   |
| 2010                |   |   |                                 | 420    |   |
| 2011                |   |   |                                 | 436    |   |
| 2012                |   |   |                                 | 448    |   |
|  2013-2017     |   |   |                                 |   | 2,718 |   |
| Total               |   |   | $                                    | 4,771  |   |

----

|                                    |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                     |   | 2007   |   |   | 2006   |   |
| Unrecognized      net actuarial loss    |   | $      | 2,554  |   |   | $      | 3,698 |   |
| Unrecognized      transition obligation |   |   | 507    |   |   |   | 609 |   |
| Unrecognized      prior service cost    |   |   | 1,966  |   |   |   | 2,265 |   |
| Total                                   |   | $      | 5,027  |   |   | $      | 6,572 |   |

|                                 |   |                                 |   |
|--------------------------------------|--------|--------------------------------------|--------|
| (In      thousands)                  |   | Postretirement      Medical Benefits |   |
| Unrecognized      net actuarial loss |   | $                                    | 92     |   |
| Transition      obligation           |   |                                 | 101    |   |
| Unrecognized      prior service cost |   |                                 | 299    |   |
| Total                                |   | $                                    | 492    |   |

|                                          |   |                  |   |   |               |   |
|-----------------------------------------------|--------|-----------------------|--------|--------|--------------------|--------|
| (In      thousands)                           |   | Operating      Leases |   |   | Capital      Lease |   |
| 2008                                          |   | $                     | 596    |   |               | $      | 254 |   |
| 2009                                          |   |                  | 525    |   |               |   | 254 |   |
| 2010                                          |   |                  | 437    |   |               |   | 254 |   |
| 2011                                          |   |                  | 374    |   |               |   | 84 |   |
| 2012                                          |   |                  | 282    |   |               |   |   |   |
| Thereafter                                    |   |                  | 1,692  |   |               |   |   |   |
| Total                                         |   | $                     | 3,906  |   |               |   | 846 |   |
| Less:      amount representing interest       |   |                  |   |   |               |   | 34 |   |
| Long-term      obligation under capital lease |   |                  |   |   |               | $      | 812 |   |

| 15.        Financial Instruments With Off-Balance Sheet      Risk |
|-----------------------------------------------------------------------------|

----

|                              |   |            |   |   |               |   |
|-----------------------------------|--------|-----------------|--------|--------|--------------------|--------|
| December      31,                 |   | 2007            |   |   | 2006               |   |
| (In      thousands)               |   | Fixed      Rate |   |   | Variable      Rate |   |   | Fixed      Rate |   |   | Variable      Rate |   |
| Commitments      to extend credit |   | $               | 75,053 |   |               | $      | 158,445 |   |   | $ | 84,590 |   |   | $ | 132,695 |   |
| Standby      letters of credit    |   |            | 14,982 |   |               |   | 3,355 |   |   |   | 15,102 |   |   |   | 1,761 |   |
| Total                             |   | $               | 90,035 |   |               | $      | 161,800 |   |   | $ | 99,692 |   |   | $ | 134,456 |   |

| 17.        Loss Contingencies |
|-----------------------------------------|

| 18.        RegulatoryMatters |
|----------------------------------------|

----

|                                          |   |   |    |   |                   |   |   |                         |    |
|-----------------------------------------------|--------|--------|---------|--------|------------------------|--------|--------|------------------------------|---------|
|                                          |   |   |    |   |                   |   |   | To      Be Well Capitalized  |    |
|                                          |   |   |    |   | For      Capital       |   |   | Under      Prompt Corrective |    |
|                                          |   | Actual |    |   | Adequacy      Purposes |   |   | Action      Provisions       |    |
| December      31, 2007 (Dollars in thousands) |   | Amount | Ratio   |   |                   | Amount | Ratio  |                         |    | Amount | Ratio |   |
| Tier      1 Capital (to Risk-Weighted Assets) |   |   |    |   |                   |   |   |                         |    |   |   |   |
| Consolidated                                  |   | $      | 157,146 |   | 11.55                  | %      |   | $                            | 54,405  |   | 4.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 34,058  |   | 9.90                   |   |   |                         | 13,764  |   | 4.00 |   |   | $ | 20,646 |   | 6.00 | % |
| Farmers      Bank and Trust Company           |   |   | 25,337  |   | 9.46                   |   |   |                         | 10,711  |   | 4.00 |   |   |   | 16,066 |   | 6.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 11,211  |   | 9.30                   |   |   |                         | 4,820   |   | 4.00 |   |   |   | 7,230 |   | 6.00 |   |
| First      Citizens Bank                      |   |   | 16,929  |   | 10.01                  |   |   |                         | 6,767   |   | 4.00 |   |   |   | 10,151 |   | 6.00 |   |
| United      Bank & Trust Co.              |   |   | 12,703  |   | 9.24                   |   |   |                         | 5,500   |   | 4.00 |   |   |   | 8,250 |   | 6.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 12,572  |   | 9.59                   |   |   |                         | 5,241   |   | 4.00 |   |   |   | 7,862 |   | 6.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 17,891  |   | 9.86                   |   |   |                         | 7,256   |   | 4.00 |   |   |   | 10,884 |   | 6.00 |   |
| Total      Capital (to Risk-Weighted Assets)  |   |   |    |   |                   |   |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consolidated                                  |   | $      | 171,362 |   | 12.60                  | %      |   | $                            | 108,809 |   | 8.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 38,342  |   | 11.14                  |   |   |                         | 27,528  |   | 8.00 |   |   | $ | 34,410 |   | 10.00 | % |
| Farmers      Bank and Trust Company           |   |   | 28,213  |   | 10.54                  |   |   |                         | 21,421  |   | 8.00 |   |   |   | 26,776 |   | 10.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 12,570  |   | 10.43                  |   |   |                         | 9,640   |   | 8.00 |   |   |   | 12,050 |   | 10.00 |   |
| First      Citizens Bank                      |   |   | 18,334  |   | 10.84                  |   |   |                         | 13,534  |   | 8.00 |   |   |   | 16,918 |   | 10.00 |   |
| United      Bank & Trust Co.              |   |   | 14,198  |   | 10.33                  |   |   |                         | 11,000  |   | 8.00 |   |   |   | 13,750 |   | 10.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 13,913  |   | 10.62                  |   |   |                         | 10,482  |   | 8.00 |   |   |   | 13,103 |   | 10.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 19,347  |   | 10.67                  |   |   |                         | 14,512  |   | 8.00 |   |   |   | 18,140 |   | 10.00 |   |
| Tier      1 Capital (to Average Assets)       |   |   |    |   |                   |   |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consolidated                                  |   | $      | 157,146 |   | 8.08                   | %      |   | $                            | 77,828  |   | 4.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 34,058  |   | 5.56                   |   |   |                         | 24,511  |   | 4.00 |   |   | $ | 30,639 |   | 5.00 | % |
| Farmers      Bank and Trust Company           |   |   | 25,337  |   | 7.43                   |   |   |                         | 13,641  |   | 4.00 |   |   |   | 17,051 |   | 5.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 11,211  |   | 5.87                   |   |   |                         | 7,635   |   | 4.00 |   |   |   | 9,544 |   | 5.00 |   |
| First      Citizens Bank                      |   |   | 16,929  |   | 7.09                   |   |   |                         | 9,548   |   | 4.00 |   |   |   | 11,934 |   | 5.00 |   |
| United      Bank & Trust Co.              |   |   | 12,703  |   | 6.18                   |   |   |                         | 8,217   |   | 4.00 |   |   |   | 10,272 |   | 5.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 12,572  |   | 6.85                   |   |   |                         | 7,339   |   | 4.00 |   |   |   | 9,174 |   | 5.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 17,891  |   | 7.98                   |   |   |                         | 8,964   |   | 4.00 |   |   |   | 11,205 |   | 5.00 |   |

----

|                                          |   |   |    |   |                   |   |   |                         |    |
|-----------------------------------------------|--------|--------|---------|--------|------------------------|--------|--------|------------------------------|---------|
|                                          |   |   |    |   |                   |   |   | To      Be Well Capitalized  |    |
|                                          |   |   |    |   | For      Capital       |   |   | Under      Prompt Corrective |    |
|                                          |   | Actual |    |   | Adequacy      Purposes |   |   | Action      Provisions       |    |
| December      31, 2006 (Dollars in thousands) |   | Amount | Ratio   |   |                   | Amount | Ratio  |                         |    | Amount | Ratio |   |
| Tier      1 Capital (to Risk-Weighted Assets) |   |   |    |   |                   |   |   |                         |    |   |   |   |
| Consolidated                                  |   | $      | 155,264 |   | 12.23                  | %      |   | $                            | 50,793  |   | 4.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 38,411  |   | 10.94                  |   |   |                         | 14,046  |   | 4.00 |   |   | $ | 21,069 |   | 6.00 | % |
| Farmers      Bank and Trust Company           |   |   | 26,975  |   | 11.04                  |   |   |                         | 9,771   |   | 4.00 |   |   |   | 14,656 |   | 6.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 11,888  |   | 10.78                  |   |   |                         | 4,413   |   | 4.00 |   |   |   | 6,619 |   | 6.00 |   |
| First      Citizens Bank                      |   |   | 18,072  |   | 11.62                  |   |   |                         | 6,223   |   | 4.00 |   |   |   | 9,335 |   | 6.00 |   |
| United      Bank & Trust Co.              |   |   | 14,084  |   | 11.19                  |   |   |                         | 5,034   |   | 4.00 |   |   |   | 7,552 |   | 6.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 11,429  |   | 9.50                   |   |   |                         | 4,813   |   | 4.00 |   |   |   | 7,220 |   | 6.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 17,345  |   | 10.05                  |   |   |                         | 6,902   |   | 4.00 |   |   |   | 10,353 |   | 6.00 |   |
| Total      Capital (to Risk-Weighted Assets)  |   |   |    |   |                   |   |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consolidated                                  |   | $      | 167,263 |   | 13.17                  | %      |   | $                            | 101,587 |   | 8.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 41,931  |   | 11.94                  |   |   |                         | 28,092  |   | 8.00 |   |   | $ | 35,115 |   | 10.00 | % |
| Farmers      Bank and Trust Company           |   |   | 28,839  |   | 11.81                  |   |   |                         | 19,541  |   | 8.00 |   |   |   | 24,427 |   | 10.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 13,269  |   | 12.03                  |   |   |                         | 8,825   |   | 8.00 |   |   |   | 11,032 |   | 10.00 |   |
| First      Citizens Bank                      |   |   | 19,341  |   | 12.43                  |   |   |                         | 12,447  |   | 8.00 |   |   |   | 15,559 |   | 10.00 |   |
| United      Bank & Trust Co.              |   |   | 15,332  |   | 12.18                  |   |   |                         | 10,069  |   | 8.00 |   |   |   | 12,586 |   | 10.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 12,673  |   | 10.53                  |   |   |                         | 9,626   |   | 8.00 |   |   |   | 12,033 |   | 10.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 18,657  |   | 10.81                  |   |   |                         | 13,804  |   | 8.00 |   |   |   | 17,255 |   | 10.00 |   |
| Tier      1 Capital (to Average Assets)       |   |   |    |   |                   |   |   |                         |    |   |   |   |   |   |   |   |   |   |
| Consolidated                                  |   | $      | 155,264 |   | 8.47                   | %      |   | $                            | 73,314  |   | 4.00 | % |   |   | N/A |   | N/A |   |
| Farmers      Bank & Capital Trust Co.     |   |   | 38,411  |   | 6.55                   |   |   |                         | 23,449  |   | 4.00 |   |   | $ | 29,312 |   | 5.00 | % |
| Farmers      Bank and Trust Company           |   |   | 26,975  |   | 8.05                   |   |   |                         | 13,406  |   | 4.00 |   |   |   | 16,757 |   | 5.00 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |   | 11,888  |   | 6.86                   |   |   |                         | 6,935   |   | 4.00 |   |   |   | 8,669 |   | 5.00 |   |
| First      Citizens Bank                      |   |   | 18,072  |   | 8.41                   |   |   |                         | 8,594   |   | 4.00 |   |   |   | 10,743 |   | 5.00 |   |
| United      Bank & Trust Co.              |   |   | 14,084  |   | 7.90                   |   |   |                         | 7,128   |   | 4.00 |   |   |   | 8,910 |   | 5.00 |   |
| Citizens      Bank of Jessamine County        |   |   | 11,429  |   | 7.61                   |   |   |                         | 6,005   |   | 4.00 |   |   |   | 7,507 |   | 5.00 |   |
| Citizens      Bank of Northern Kentucky       |   |   | 17,345  |   | 8.17                   |   |   |                         | 8,489   |   | 4.00 |   |   |   | 10,611 |   | 5.00 |   |

----

|                                                                                    |   |     |      |   |   |   |
|-----------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------|--------|
| December      31,                                                                       |   | 2007     |      |   | 2006   |   |
|                                                                                    |   | Carrying |      |   | Fair   |   |   | Carrying |   |   | Fair |   |
| (In      thousands)                                                                     |   | Amount   |      |   | Value  |   |   | Amount |   |   | Value |   |
| Assets                                                                                  |   |     |      |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                                          |   | $        | 79,140    |   |   | $      | 79,140 |   |   | $ | 156,828 |   |   | $ | 156,828 |   |
| Investment      securities:                                                             |   |     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available      for sale                                                                 |   |     | 542,633   |   |   |   | 542,633 |   |   |   | 326,485 |   |   |   | 326,485 |   |
| Held      to maturity                                                                   |   |     | 3,844     |   |   |   | 3,863 |   |   |   | 7,788 |   |   |   | 7,849 |   |
| Loans,      net                                                                         |   |     | 1,277,769 |   |   |   | 1,275,746 |   |   |   | 1,185,837 |   |   |   | 1,161,656 |   |
| Accrued      interest receivable                                                        |   |     | 13,337    |   |   |   | 13,337 |   |   |   | 11,735 |   |   |   | 11,735 |   |
|                                                                                    |   |     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                             |   |     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                |   |     | 1,474,097 |   |   |   | 1,475,010 |   |   |   | 1,454,820 |   |   |   | 1,452,129 |   |
| Federal      funds purchased and other short-term borrowings                            |   |     | 80,755    |   |   |   | 80,755 |   |   |   | 76,718 |   |   |   | 76,718 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings |   |     | 267,339   |   |   |   | 272,396 |   |   |   | 62,218 |   |   |   | 71,019 |   |
| Subordinated      notes payable to unconsolidated trusts                                |   |     | 48,970    |   |   |   | 37,857 |   |   |   | 25,774 |   |   |   | 25,774 |   |
| Accrued      interest payable                                                           |   |     | 6,445     |   |   |   | 6,445 |   |   |   | 4,773 |   |   |   | 4,773 |   |

----

|                                                     |   |   |    |   |   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| December      31, (In thousands)                         |   | 2007   |    |   |   | 2006   | 1 |
| Assets                                                   |   |   |    |   |   |   |   |
| Cash      on deposit with subsidiaries                   |   | $      | 14,974  |   |   | $      | 11,103 |   |
| Investment      in subsidiaries                          |   |   | 197,422 |   |   |   | 191,109 |   |
| Other      assets                                        |   |   | 11,115  |   |   |   | 11,625 |   |
| Total      assets                                        |   | $      | 223,511 |   |   | $      | 213,837 |   |
| Liabilities                                              |   |   |    |   |   |   |   |   |
| Dividends      payable                                   |   | $      | 2,436   |   |   | $      | 3,472 |   |
| Subordinated      notes payable to unconsolidated trusts |   |   | 48,970  |   |   |   | 25,774 |   |
| Other      liabilities                                   |   |   | 3,614   |   |   |   | 7,528 |   |
| Total      liabilities                                   |   |   | 55,020  |   |   |   | 36,774 |   |
| Shareholders’      Equity                          |   |   |    |   |   |   |   |   |
| Common      stock                                        |   |   | 923     |   |   |   | 988 |   |
| Capital      surplus                                     |   |   | 48,176  |   |   |   | 53,201 |   |
| Retained      earnings                                   |   |   | 122,498 |   |   |   | 128,652 |   |
| Accumulated      other comprehensive loss                |   |   | (3,106  | )      |   |   | (5,778 | ) |
| Total      shareholders’ equity                    |   |   | 168,491 |   |   |   | 177,063 |   |
| Total      liabilities and shareholders’ equity    |   | $      | 223,511 |   |   | $      | 213,837 |   |

|   | 1Certain      amounts have been revised related to the Company’s postretirement benefits      plans and equity accounts. Please refer to Note 1 under the captions “Revised 2006 Balance Sheet and Statement of Changes in      Shareholders’ Equity” and “Treasury      Stock”. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                          |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Years      Ended December 31, (In thousands)                                                  |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Income                                                                                        |   |   |   |   |   |   |   |   |   |
| Dividends      from subsidiaries                                                              |   | $      | 22,616 |   |   | $      | 9,086  |   |   | $ | 7,490 |   |
| Interest      income                                                                          |   |   | 64     |   |   |   | 74     |   |   |   | 85 |   |
| Gain      on sale of discontinued operations                                                  |   |   |   |   |   |   | 9,442  |   |   |   |   |   |
| Other      noninterest income                                                                 |   |   | 3,170  |   |   |   | 2,732  |   |   |   | 2,110 |   |
| Total      income                                                                             |   |   | 25,850 |   |   |   | 21,334 |   |   |   | 9,685 |   |
| Expense                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense-subordinated notes payable to unconsolidatedtrusts                      |   |   | 2,394  |   |   |   | 1,747  |   |   |   | 623 |   |
| Interest      expense on other borrowed funds                                                 |   |   | 20     |   |   |   | 186    |   |   |   |   |   |
| Noninterest      expense                                                                      |   |   | 4,391  |   |   |   | 4,021  |   |   |   | 3,290 |   |
| Total      expense                                                                            |   |   | 6,805  |   |   |   | 5,954  |   |   |   | 3,913 |   |
| Income      before income tax benefit and equity in undistributed income of      subsidiaries |   |   | 19,045 |   |   |   | 15,380 |   |   |   | 5,772 |   |
| Income      tax (benefit) expense                                                             |   |   | (1,375 | )      |   |   | 2,321  |   |   |   | (772 | ) |
| Income      before equity in undistributed income of subsidiaries                             |   |   | 20,420 |   |   |   | 13,059 |   |   |   | 6,544 |   |
| Equity      in undistributed income of subsidiaries1                                          |   |   | (4,793 | )      |   |   | 8,313  |   |   |   | 9,228 |   |
| Net      income                                                                               |   | $      | 15,627 |   |   | $      | 21,372 |   |   | $ | 15,772 |   |

----

|                                                                                        |   |   |    |   |   |   |    |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Years      Ended December 31, (In thousands)                                                |   | 2007   |    |   | 2006   |   |    | 2005   |   |
| Cash      Flows From Operating Activities                                                   |   |   |    |   |   |   |    |   |   |
| Net      income                                                                             |   | $      | 15,627  |   |   | $      | 21,372  |   |   | $ | 15,772 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |    |   |   |   |    |   |   |   |   |   |
| Gain      on sale of discontinued operations                                                |   |   |    |   |   |   | (9,442  | )      |   |   |   |   |
| Equity      in undistributed income of subsidiaries                                         |   |   | 4,793   |   |   |   | (8,313  | )      |   |   | (9,228 | ) |
| Noncash      stock option expense                                                           |   |   | 13      |   |   |   | 52      |   |   |   |   |   |
| Change      in other assets and liabilities, net                                            |   |   | (3,767  | )      |   |   | 3,925   |   |   |   | (793 | ) |
| Deferred      income tax expense (benefit)                                                  |   |   | 555     |   |   |   | (742    | )      |   |   | 8 |   |
| Net      cash provided by operating activities                                              |   |   | 17,221  |   |   |   | 6,852   |   |   |   | 5,759 |   |
| Cash      Flows From Investing Activities                                                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Proceeds      from disposal of discontinued operations                                      |   |   |    |   |   |   | 19,875  |   |   |   |   |   |
| Investment      in unconsolidated trusts                                                    |   |   | (629    | )      |   |   |    |   |   |   | (774 | ) |
| Investment      in nonbank subsidiaries                                                     |   |   |    |   |   |   |    |   |   |   | (285 | ) |
| Investment      in bank subsidiary                                                          |   |   | (8,000  | )      |   |   | (629    | )      |   |   | (581 | ) |
| Payment      of prior year accrued purchase price-Citizens Bancorp,Inc.                     |   |   |    |   |   |   | (21,846 | )      |   |   |   |   |
| Purchase      of Citizens National Bancshares, Inc.                                         |   |   |    |   |   |   | (15,041 | )      |   |   |   |   |
| Purchase      price refinements of previous acquisitions                                    |   |   | 50      |   |   |   | (29     | )      |   |   | (2 | ) |
| Purchase      of company-owned life insurance                                               |   |   |    |   |   |   | (1,579  | )      |   |   |   |   |
| Net      cash used in investing activities                                                  |   |   | (8,579  | )      |   |   | (19,249 | )      |   |   | (1,642 | ) |
| Cash      Flows From Financing Activities                                                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Proceeds      from short-term borrowings                                                    |   |   | 2,500   |   |   |   | 15,000  |   |   |   |   |   |
| Repayment      of short-term borrowings                                                     |   |   | (2,500  | )      |   |   | (15,000 | )      |   |   |   |   |
| Dividends      paid                                                                         |   |   | (11,118 | )      |   |   | (9,553  | )      |   |   | (8,949 | ) |
| Purchase      of common stock                                                               |   |   | (18,649 | )      |   |   | (820    | )      |   |   | (571 | ) |
| Shares      issued under Employee Stock Purchase Plan                                       |   |   | 254     |   |   |   | 223     |   |   |   | 187 |   |
| Stock      options exercised                                                                |   |   | 1,546   |   |   |   | 1,529   |   |   |   | 771 |   |
| Proceeds      from long-term debt issued to unconsolidated trusts                           |   |   | 23,196  |   |   |   |    |   |   |   | 25,774 |   |
| Net      cash (used in) provided by financing activities                                    |   |   | (4,771  | )      |   |   | (8,621  | )      |   |   | 17,212 |   |
| Net      increase (decrease) in cash and cash equivalents                                   |   |   | 3,871   |   |   |   | (21,018 | )      |   |   | 21,329 |   |
| Cash      and cash equivalents at beginning of year                                         |   |   | 11,103  |   |   |   | 32,121  |   |   |   | 10,792 |   |
| Cash      and cash equivalents at end of year                                               |   | $      | 14,974  |   |   | $      | 11,103  |   |   | $ | 32,121 |   |

| 21.        Quarterly Financial Data(Unaudited) |
|----------------------------------------------------------|

|                                                       |   |          |   |   |         |   |   |          |   |   |          |   |
|------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|--------|---------------|--------|--------|---------------|--------|
| (In      thousands, except per share data)                 |   |          |   |   |         |   |   |          |   |   |          |   |
| Quarters      Ended 2007                                   |   | March      31 |   |   | June      30 |   |   | Sept.      30 |   |   | Dec.      313 |   |
| Interest      income                                       |   | $             | 27,402 |   |         | $      | 28,511 |          |   | $      | 28,494        |   |   | $ | 29,850 |   |
| Interest      expense                                      |   |          | 13,307 |   |         |   | 13,661 |          |   |   | 13,872        |   |   |   | 15,199 |   |
| Net      interest income                                   |   |          | 14,095 |   |         |   | 14,850 |          |   |   | 14,622        |   |   |   | 14,651 |   |
| Provision      for loan losses                             |   |          | (496   | )      |         |   | 330    |          |   |   | 595           |   |   |   | 3,209 |   |
| Net      interest income after provision for loan losses   |   |          | 14,591 |   |         |   | 14,520 |          |   |   | 14,027        |   |   |   | 11,442 |   |
| Noninterest      income                                    |   |          | 5,667  |   |         |   | 6,108  |          |   |   | 6,119         |   |   |   | 6,263 |   |
| Noninterest      expense                                   |   |          | 14,338 |   |         |   | 14,309 |          |   |   | 14,356        |   |   |   | 15,820 |   |
| Income      before income taxes                            |   |          | 5,920  |   |         |   | 6,319  |          |   |   | 5,790         |   |   |   | 1,885 |   |
| Income      tax expense                                    |   |          | 1,310  |   |         |   | 1,407  |          |   |   | 1,633         |   |   |   | (63 | ) |
| Net      income                                            |   | $             | 4,610  |   |         | $      | 4,912  |          |   | $      | 4,157         |   |   | $ | 1,948 |   |
| Net      income per common share – basic and diluted |   | $             | .58    |   |         | $      | .62    |          |   | $      | .54           |   |   | $ | .26 |   |
| Weighted      average shares outstanding, basic            |   |          | 7,893  |   |         |   | 7,884  |          |   |   | 7,672         |   |   |   | 7,382 |   |
| Weighted      average shares outstanding, diluted          |   |          | 7,908  |   |         |   | 7,892  |          |   |   | 7,672         |   |   |   | 7,382 |   |

----

|                                                               |   |          |   |   |         |   |   |          |   |   |         |   |
|--------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|
| (In      thousands, except per share data)                         |   |          |   |   |         |   |   |          |   |   |         |   |
| Quarters      Ended 2006                                           |   | March      31 |   |   | June      30 |   |   | Sept.      30 |   |   | Dec.      31 |   |
| Interest      income                                               |   | $             | 20,883 |   |         | $      | 21,669 |          |   | $      | 22,835       |   |   | $ | 26,953 |   |
| Interest      expense                                              |   |          | 8,567  |   |         |   | 9,427  |          |   |   | 10,447       |   |   |   | 12,991 |   |
| Net      interest income                                           |   |          | 12,316 |   |         |   | 12,242 |          |   |   | 12,388       |   |   |   | 13,962 |   |
| Provision      for loan losses                                     |   |          | (34    | )      |         |   | (46    | )             |   |   | 253          |   |   |   | 792 |   |
| Net      interest income after provision for loan losses           |   |          | 12,350 |   |         |   | 12,288 |          |   |   | 12,135       |   |   |   | 13,170 |   |
| Noninterest      income                                            |   |          | 5,056  |   |         |   | 4,991  |          |   |   | 5,015        |   |   |   | 5,397 |   |
| Noninterest      expense                                           |   |          | 12,507 |   |         |   | 12,434 |          |   |   | 12,901       |   |   |   | 15,535 |   |
| Income      from continuing operations before income taxes         |   |          | 4,899  |   |         |   | 4,845  |          |   |   | 4,249        |   |   |   | 3,032 |   |
| Income      tax expense from continuing operations                 |   |          | 910    |   |         |   | 967    |          |   |   | 966          |   |   |   | 517 |   |
| Income      from continuing operations                             |   |          | 3,989  |   |         |   | 3,878  |          |   |   | 3,283        |   |   |   | 2,515 |   |
| Income      from discontinued operations before income taxes1      |   |          | 567    |   |         |   | 599    |          |   |   | 713          |   |   |   | 9,963 |   |
| Income      tax expense from discontinued operations2              |   |          | 165    |   |         |   | 171    |          |   |   | 250          |   |   |   | 3,549 |   |
| Income      from discontinued operations                           |   |          | 402    |   |         |   | 428    |          |   |   | 463          |   |   |   | 6,414 |   |
| Net      income                                                    |   | $             | 4,391  |   |         | $      | 4,306  |          |   | $      | 3,746        |   |   | $ | 8,929 |   |
| Income      from continuing operations – basic and diluted   |   | $             | .54    |   |         | $      | .52    |          |   | $      | .45          |   |   | $ | .32 |   |
| Income      from discontinued operations – basic and diluted |   |          | .05    |   |         |   | .06    |          |   |   | .06          |   |   |   | .81 |   |
| Net      income per common share, basic and diluted                |   |          | .59    |   |         |   | .58    |          |   |   | .51          |   |   |   | 1.13 |   |
| Weighted      average shares outstanding, basic                    |   |          | 7,385  |   |         |   | 7,378  |          |   |   | 7,393        |   |   |   | 7,884 |   |
| Weighted      average shares outstanding, diluted                  |   |          | 7,413  |   |         |   | 7,400  |          |   |   | 7,412        |   |   |   | 7,904 |   |

Item7

| (In      thousands)                 |   | January      12, 2007 |   |
|-------------------------------------|--------|-----------------------|--------|
| Assets                              |   |                  |   |
| Cash                                |   | $                     | 10,870 |   |
| Customer      list intangible       |   |                  | 1,275  |   |
| Core      deposit intangible        |   |                  | 1,874  |   |
| Goodwill                            |   |                  | 9,663  |   |
|    Total      Assets |   | $                     | 23,682 |   |
|                                |   |                  |   |   |
| Liabilities                         |   |                  |   |   |
| Deposits                            |   | $                     | 10,870 |   |
|                                |   |                  |   |   |
| Net      Assets Acquired            |   | $                     | 12,812 |   |
|                                |   |                  |   |   |

----

|                                                               |   |   |   |   |   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      thousands)                                                |   | 2007   |   |   | 2006   |   |
| Beginning      of year                                             |   | $      | 42,822 |   |   | $      | 28,437 |   |
| Purchase      price refinements of prior years’ acquisitions |   |   | (77    | )      |   |   | 211 |   |
| Acquired      goodwill                                             |   |   | 9,663  |   |   |   | 14,174 |   |
| End      of year                                                   |   | $      | 52,408 |   |   | $      | 42,822 |   |

|                                                |   |        |   |   |                    |   |
|-----------------------------------------------------|--------|-------------|--------|--------|-------------------------|--------|
|                                                |   | 2007        |   |   | 2006                    |   |
| Amortized      Intangible Assets(In      thousands) |   | GrossAmount |   |   | AccumulatedAmortization |   |   | GrossAmount |   |   | AccumulatedAmortization |   |
| Core      deposit intangibles                       |   | $           | 12,765 |   |                    | $      | 5,274 |   |   | $ | 10,890 |   |   | $ | 2,541 |   |
| Other      customer relationship intangibles        |   |        | 3,689  |   |                    |   | 1,637 |   |   |   | 2,414 |   |   |   | 1,008 |   |
| Total                                               |   | $           | 16,454 |   |                    | $      | 6,911 |   |   | $ | 13,304 |   |   | $ | 3,549 |   |

|                |   |   |   |
|---------------------|--------|--------|--------|
| (In      thousands) |   | Amount |   |
| 2008                |   | $      | 2,602  |   |
| 2009                |   |   | 1,952  |   |
| 2010                |   |   | 1,437  |   |
| 2011                |   |   | 1,143  |   |
| 2012                |   |   | 1,014  |   |

Item 9.Changes in and Disagreements with Accountants on Accounting and FinancialDisclosure

Item 9A.Controls and Procedures

----

|   | · | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of Company      assets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that Company’s receipts and expenditures are      being made only in accordance with the authorization of Company’s      management and members of the Company’s Board of Directors;      and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisitions, uses or dispositions of Company assets that      could have a material effect on the Company’s financial      statements. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item9B.  Other Information

PART III

Item 10.Directors, Executive Officers and Corporate Governance

|                    |   | Positions      and                | Years      of Service |
|-------------------------|--------|-----------------------------------|-----------------------|
|                    |   | Offices      With                 | With      the         |
| Executive      Officer1 | Age    | the      Registrant               | Registrant            |
|                    |   |                              |                  |
| G.      Anthony Busseni | 59     | President      and CEO, Director2 | 23*                   |
|                    |   |                              |                  |
| Allison      B. Gordon  | 44     | Senior      Vice President3       | 21*                   |

----

| * | Includes      years of service with the Company and its  subsidiaries. |
|---|------------------------------------------------------------------------|

| 1 | For      Regulation O purposes, Frank W. Sower, Jr., Chairman of the Company’s      board of directors, is considered an executive officer in name      only. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Also      a director of Farmers Bank, Citizens Jessamine, Farmers Georgetown, United      Bank, The Lawrenceburg Bank and Trust, First Citizens, Citizens Northern,      FCB Services, Farmers Insurance (Chairman), Leasing One (Chairman),      Kentucky General (Chairman), FFKT Insurance, Kentucky Home Life Insurance      Company, and an administrative trustee of Farmers Capital Bank Trust I,      Farmers Capital Bank Trust II, and Farmers Capital Bank Trust      III. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Also      a director of Farmers Bank, Farmers Georgetown, FCB Services, and an      administrative trustee of Farmers Capital Bank Trust I, Farmers Capital      Bank Trust II, and Farmers Capital Bank Trust  III. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 11.Executive Compensation

Item 12.Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters

Item 13.Certain Relationships and Related Transactions

Item14.  Principal Accountant Fees and Services

Item 15.Exhibits, Financial Statement Schedules

| (a)1. | Financial      Statements |
|-------|---------------------------|

Item8

Report of Independent Registered Public AccountingFirm

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of ComprehensiveIncome

Consolidated Statements of Changes in Shareholders’Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

| (a)2. | Financial Statement      Schedules |
|-------|------------------------------------|

----

| (a)3. | Exhibits: |
|-------|-----------|

|   | 3.1 | Amended      and Restated Articles of Incorporation of the Registrant (incorporated by      reference to Quarterly Report on Form 10-Q for the quarterly period ended      June 30, 2006). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended      and Restated Bylaws of the Registrant (incorporated by reference to Annual      Report of Form 10-K for the fiscal year ended December 31,      1997). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3 | Amendments      to Bylaws of the Registrant (incorporated by reference to Quarterly Report      of Form 10-Q for the quarterly period ended March 31,    2003). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4 | Articles      of Incorporation and Bylaws of the Registrant (incorporated by reference      to Quarterly Report on Form 10-Q for the quarterly period ended June 30,      2006, the Annual Report on Form 10-K for the fiscal year ended December      31, 1997, and the Quarterly Report on Form 10-Q for the quarterly period      ended March 31, 2003). |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | Subsidiaries of the  Registrant |
|--------|----|---------------------------------|

|   | 23 | Consent of Independent Registered Public      Accounting Firm |
|--------|----|---------------------------------------------------------------|

|   | 31.1 | CEO Certification Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------|

|   | 31.2 | CFO Certification Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------|

|   | 32 | Certifications Pursuant to 18 U.S.C. Section 1350, as      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

|   | FARMERS      CAPITAL BANK CORPORATION |                                       |
|--------|---------------------------------------|--------------------------------------------|
|   |                                  |                                       |   |
|   |                                  |                                       |   |
|   | By:                                   | /s/ G. Anthony Busseni                     |   |
|   |                                  | G.      Anthony Busseni                    |   |
|   |                                  | President      and Chief Executive Officer |   |
|   |                                  |                                       |   |
|   |                                  |                                       |   |
|   | Date:                                 | March      7, 2008                         |   |

| /s/      G. Anthony Busseni       | President,      Chief Executive Officer | March      7, 2008     |
|-----------------------------------|-----------------------------------------|------------------------|
| G.      Anthony Busseni           | and      Director (principal executive  |                   |
|                              | officer      of the Registrant)         |                   |
|                              |                                    |                   |
| /s/ Frank W. Sower,Jr.       | Chairman                                | February      25,2008  |
| Frank      W. Sower, Jr.          |                                    |                   |
|                              |                                    |                   |
| /s/      Frank R. Hamilton, Jr    | Director                                | February 27, 2008      |
| Frank      R. Hamilton, Jr.       |                                    |                   |
|                              |                                    |                   |
| /s/      Lloyd C. Hillard, Jr.    | Director                                | February      25, 2008 |
| Lloyd      C. Hillard, Jr.        |                                    |                   |
|                              |                                    |                   |
| /s/      R. Terry Bennett         | Director                                | March 5, 2008          |
| R.      Terry Bennett             |                                    |                   |
|                              |                                    |                   |
| /s/      Shelley S. Sweeney       | Director                                | March 3, 2008          |
| Shelley      S. Sweeney           |                                    |                   |
|                              |                                    |                   |
| /s/      Dr. Donald J. Mullineaux | Director                                | February 27, 2008      |
| Dr.      Donald J. Mullineaux     |                                    |                   |
|                              |                                    |                   |
| /s/      Dr. Donald A. Saelinger  | Director                                | February      24, 2008 |
| Dr.      Donald A. Saelinger      |                                    |                   |
|                              |                                    |                   |
|                              | Director                                |                   |
| Dr.      John D. Sutterlin        |                                    |                   |
|                              |                                    |                   |
| /s/      Michael M. Sullivan      | Director                                | February      27, 2008 |
| Michael      M. Sullivan          |                                    |                   |
|                              |                                    |                   |
| /s/      J. Barry Banker          | Director                                | February      25, 2008 |
| J.      Barry Banker              |                                    |                   |
|                              |                                    |                   |
| /s/      Robert Roach, Jr.        | Director                                | February      26, 2008 |
| Robert      Roach, Jr.            |                                    |                   |
|                              |                                    |                   |
| /s/      C. Douglas Carpenter     | Senior      Vice President, Secretary   | March      10, 2008    |
| C.      Douglas Carpenter         | and      CFO (principal financial and   |                   |
|                              | accounting      officer)                |                   |

----

INDEX OF EXHIBITS

| Exhibit |                                                                                                                              | Page   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                              |   |
|    |                                                                                                                              |   |
| 21      | Subsidiaries of the Registrant                                                                                                    | 83     |
|    |                                                                                                                              |   |
| 23      | Consent of Independent Registered Public      Accounting Firm                                                                     | 84     |
|    |                                                                                                                              |   |
| 31.1    | CEO Certification Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                  | 85     |
|    |                                                                                                                              |   |
| 31.2    | CFO Certification Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                  | 86     |
|    |                                                                                                                              |   |
| 32      | Certifications      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002 | 87     |

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