| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| WASHINGTON, D.C. 20549             |

|   | x |
|--------|---|

| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------------------------------------------------------------------------------------|
| For the quarterly period ended June 30, 2009                                            |

| o              TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| For the transition period from _______ to _________                                                                                                                       |

| KENTUCKY                                                      | 61-0912615                           |
|---------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.) |

| 1065 Ashley Street                       |       |
|------------------------------------------|------------|
| Bowling Green, Kentucky                  | 42103      |
| (Address of principal executive offices) | (Zip Code) |

| Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  o Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted  pursuant to Rule 405 of Regulation S-T during the preceding 12 months ( or for such shorter period that the registrant was required to submitand post such files).  Yes _    No __  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer oAccelerated filer   oNon-accelerated filer   oSmaller reporting company x                                                                                                                                                                                                                                                                                                                                          |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  o    No  x                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| Class                                | Outstanding at August 14, 2009 |
|--------------------------------------|--------------------------------|
| Common Stock, no par value per share | 1,968,777 shares               |

----

| PART I –               FINANCIAL INFORMATION |                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|                                                                                                                          |                                                                                         |
| ITEM 1                                                                                                                        | FINANCIAL STATEMENTS.                                                                        | 3 |
|                                                                                                                          |                                                                                         |   |
| ITEM 2                                                                                                                        | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. | 18 |
|                                                                                                                          |                                                                                         |   |
| ITEM 3                                                                                                                        | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                   | 31 |
|                                                                                                                          |                                                                                         |   |
| ITEM 4                                                                                                                        | CONTROLS AND PROCEDURES                                                                      | 31 |
|                                                                                                                          |                                                                                         |   |
| PART II –                                                                                                               | OTHER INFORMATION                                                                       |   |
| ITEM  4                                                                                                             | SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS                                         | 32 |
| ITEM  6                                                                                                             | EXHIBITS                                                                                     | 33 |
|                                                                                                                          |                                                                                         |   |
| SIGNATURES                                                                                                                    | 34                                                                                           |

----

| Part 1. Financial Information |
|-------------------------------|

| Citizens First Corporation                                                                                                                                                                                                            |                                     |   |                                                                                                                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Balance Sheets (Unaudited)                                                                                                                                                                                               |                                     |   |                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                  | June  30, 2009                 |   | December 31, 2008                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                  | (Dollars in thousands except share data) |
| Assets                                                                                                                                                                                                                                |
| Cash and due from financial institutions                                                                                                                                                                                              | $6,886                                   |   | $9,248                                                                                                                                                                                                                                                                                           |
| Federal funds sold                                                                                                                                                                                                                    | 500                                      |   | 6,083                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Cash and cash equivalents                                                                                                                                                                                                             | 7,386                                    |   | 15,331                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Available for sale securities                                                                                                                                                                                                         | 41,602                                   |   | 39,928                                                                                                                                                                                                                                                                                           |
| Loans held for sale                                                                                                                                                                                                                   | 1,201                                    |   | 553                                                                                                                                                                                                                                                                                              |
| Loans, net of allowance of $3,657 and $3,816 at June 30, 2009 and December 31, 2008, respectively                                                                                                                                     |  257,655                            |   | 267,929                                                                                                                                                                                                                                                                                          |
| Premises and equipment, net                                                                                                                                                                                                           | 11,335                                   |   | 11,315                                                                                                                                                                                                                                                                                           |
| Bank owned life insurance                                                                                                                                                                                                             | 6,608                                    |   | 6,457                                                                                                                                                                                                                                                                                            |
| Federal Home Loan Bank (FHLB) stock, at cost                                                                                                                                                                                          | 2,025                                    |   | 2,025                                                                                                                                                                                                                                                                                            |
| Accrued interest receivable                                                                                                                                                                                                           | 2,043                                    |   | 2,358                                                                                                                                                                                                                                                                                            |
| Deferred income taxes                                                                                                                                                                                                                 | 4,512                                    |   | 2,971                                                                                                                                                                                                                                                                                            |
| Goodwill                                                                                                                                                                                                                              | 2,575                                    |   | 2,575                                                                                                                                                                                                                                                                                            |
| Core deposit intangible                                                                                                                                                                                                               | 1,430                                    |   | 1,569                                                                                                                                                                                                                                                                                            |
| Other assets                                                                                                                                                                                                                          | 903                                      |   | 2,114                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Total assets                                                                                                                                                                                                                          | $339,275                                 |   | $355,125                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Liabilities and Stockholders' Equity                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Liabilities                                                                                                                                                                                                                           |                                     |   |                                                                                                                                                                                                                                                                                             |
| Deposits:                                                                                                                                                                                                                             |                                     |   |                                                                                                                                                                                                                                                                                             |
| Non-interest bearing                                                                                                                                                                                                                  | $37,055                                  |   | $27,247                                                                                                                                                                                                                                                                                          |
| Savings, NOW and money market                                                                                                                                                                                                         | 68,721                                   |   | 69,548                                                                                                                                                                                                                                                                                           |
| Time                                                                                                                                                                                                                                  | 158,063                                  |   | 176,220                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Total deposits                                                                                                                                                                                                                        | 263,839                                  |   | 273,015                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Securities sold under repurchase agreements                                                                                                                                                                                           | 3,427                                    |   | 8,258                                                                                                                                                                                                                                                                                            |
| FHLB advances                                                                                                                                                                                                                         | 28,000                                   |   | 27,500                                                                                                                                                                                                                                                                                           |
| Subordinated debentures                                                                                                                                                                                                               | 5,000                                    |   | 5,000                                                                                                                                                                                                                                                                                            |
| Accrued interest payable                                                                                                                                                                                                              | 443                                      |   | 683                                                                                                                                                                                                                                                                                              |
| Other liabilities                                                                                                                                                                                                                     | 1,451                                    |   | 1,384                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                  |                                     |   |                                                                                                                                                                                                                                                                                             |
| Total liabilities                                                                                                                                                                                                                     | 302,160                                  |   | 315,840                                                                                                                                                                                                                                                                                          |
| Stockholders' Equity:                                                                                                                                                                                                                 |                                     |   |                                                                                                                                                                                                                                                                                             |
| 6.5% cumulative preferred stock, no par value; authorized 250 shares; issued and outstanding  250 shares at June 30, 2009 and at December 31, 2008; liquidation preference of $7,659 at June 30, 2009 and December 31, 2008 | 7,659                                    |   | 7,659                                                                                                                                                                                                                                                                                            |
| 5.0% Series A preferred stock, no  par value; authorized 250 shares; issued and outstanding 250 shares at June 30, 2009 and at December 31, 2008; liquidation preference of $8,779 at June 30, 2009 and December 31, 2008   | 8,491                                    |   | 8,459                                                                                                                                                                                                                                                                                            |
| Common stock, no par value; authorized 5,000,000 shares; issued and outstanding 1,968,777 shares at June 30, 2009 and  at December 31, 2008                                                                                 | 27,072                                   |   |                                                27,058 |
| Accumulated deficit                                                                                                                                                                                                                   | (5,107)                                  |   | (3,228)                                                                                                                                                                                                                                                                                          |
| Accumulated other comprehensive loss                                                                                                                                                                                                  | (1,000)                                  |   | (663)                                                                                                                                                                                                                                                                                            |
| Total stockholders' equity                                                                                                                                                                                                            | 37,115                                   |   | 39,285                                                                                                                                                                                                                                                                                           |
| Total liabilities  and stockholders' equity                                                                                                                                                                                 | $339,275                                 |   | $355,125                                                                                                                                                                                                                                                                                         |
| See Notes to Consolidated Financial Statements                                                                                                                                                                                        |                                     |   |                                                                                                                                                                                                                                                                                             |

----

| Citizens First Corporation                                          |                                          |   |             |
|---------------------------------------------------------------------|-----------------------------------------------|--------|------------------|
| Consolidated Statements of Operations (Unaudited)                   |                                          |
| For the three months ended June 30                                  | 2009                                          |   | 2008             |
|                                                                | (Dollars in thousands, except per share data) |
| Interest and dividend income                                        |                                          |   |             |
| Loans                                                               | $3,848                                        |   | $4,615           |
| Taxable securities                                                  | 196                                           |   | 273              |
| Non-taxable securities                                              | 189                                           |   | 188              |
| Federal funds sold and other                                        | 24                                            |   | 50               |
| Total interest and dividend income                                  | 4,257                                         |   | 5,126            |
| Interest expense                                                    |                                          |   |             |
| Deposits                                                            | 1,422                                         |   | 2,181            |
| Securities sold under agreements to repurchase and other borrowings | 34                                            |   | 13               |
| FHLB advances                                                       | 169                                           |   | 188              |
| Subordinated debentures                                             | 36                                            |   | 55               |
| Total interest expense                                              | 1,661                                         |   | 2,437            |
| Net interest income                                                 | 2,596                                         |   | 2,689            |
| Provision for loan losses                                           | 2,900                                         |   | 227              |
| Net interest income (loss) after provision for loan losses          | (304)                                         |   | 2,462            |
| Non-interest income                                                 |                                          |   |             |
| Service charges on deposit accounts                                 | 340                                           |   | 402              |
| Net gains on sales of mortgage loans                                | 83                                            |   | 62               |
| Lease income                                                        | 38                                            |   | 53               |
| Gain on sale of investments                                         | 361                                           |   | 0                |
| Income from company-owned life insurance                            | 75                                            |   | 74               |
| Other income                                                        | 135                                           |   | 114              |
| Total non-interest income                                           | 1,032                                         |   | 705              |
| Non-interest expenses                                               |                                          |   |             |
| Salaries and employee benefits                                      | 1,460                                         |   | 1,275            |
| Net occupancy expense                                               | 358                                           |   | 325              |
| Equipment expense                                                   | 197                                           |   | 184              |
| Advertising and public relations                                    | 134                                           |   | 95               |
| Professional fees                                                   | 173                                           |   | 99               |
| Data processing services                                            | 186                                           |   | 189              |
| Franchise shares and deposit tax                                    | 124                                           |   | 118              |
| FDIC Insurance                                                      | 260                                           |   | 55               |
| Core deposit intangible amortization                                | 68                                            |   | 69               |
| Postage and office supplies                                         | 60                                            |   | 49               |
| Telephone and other communication                                   | 46                                            |   | 65               |
| Other                                                               | 192                                           |   | 208              |
| Total non-interest expenses                                         | 3,258                                         |   | 2,731            |
| Income (loss) before income taxes                                   | (2,530)                                       |   | 436              |
| Provision for income taxes                                          | (953)                                         |   | 66               |
| Net income (loss)                                                   | $(1,577)                                      |   | $  370 |
| Dividends declared and discount accretion on preferred stock        | 256                                           |   | 130              |
| Net income (loss) available for common stockholders                 | $(1,833)                                      |   | $  240 |
| Earnings (loss) per common share, basic and diluted                 | $(0.93)                                       |   | $0.13            |
| See Notes to Consolidated Financial Statements.                     |                                          |   |             |

----

| Citizens First Corporation                                          |                                          |   |             |
|---------------------------------------------------------------------|-----------------------------------------------|--------|------------------|
| Consolidated Statements of Operations (Unaudited)                   |                                          |
| For the six months ended June 30                                    | 2009                                          |   | 2008             |
|                                                                | (Dollars in thousands, except per share data) |
| Interest and dividend income                                        |                                          |   |             |
| Loans                                                               | $7,866                                        |   | $9,504           |
| Taxable securities                                                  | 462                                           |   | 584              |
| Non-taxable securities                                              | 377                                           |   | 361              |
| Federal funds sold and other                                        | 51                                            |   | 118              |
| Total interest and dividend income                                  | 8,756                                         |   | 10,567           |
| Interest expense                                                    |                                          |   |             |
| Deposits                                                            | 2,998                                         |   | 4,573            |
| Securities sold under agreements to repurchase and other borrowings | 83                                            |   | 27               |
| FHLB advances                                                       | 344                                           |   | 356              |
| Subordinated debentures                                             | 74                                            |   | 135              |
| Total interest expense                                              | 3,499                                         |   | 5,091            |
| Net interest income                                                 | 5,257                                         |   | 5,476            |
| Provision for loan losses                                           | 3,200                                         |   | 277              |
| Net interest income after provision for loan losses                 | 2,057                                         |   | 5,199            |
| Non-interest income                                                 |                                          |   |             |
| Service charges on deposit accounts                                 | 641                                           |   | 772              |
| Net gains on sales of mortgage loans                                | 195                                           |   | 138              |
| Lease income                                                        | 81                                            |   | 105              |
| Gain on sale of investments                                         | 361                                           |   | 0                |
| Income from company-owned life insurance                            | 150                                           |   | 147              |
| Other income                                                        | 245                                           |   | 215              |
| Total non-interest income                                           | 1,673                                         |   | 1,377            |
| Non-interest expenses                                               |                                          |   |             |
| Salaries and employee benefits                                      | 2,788                                         |   | 2,673            |
| Net occupancy expense                                               | 674                                           |   | 620              |
| Equipment expense                                                   | 377                                           |   | 388              |
| Advertising and public relations                                    | 216                                           |   | 209              |
| Professional fees                                                   | 328                                           |   | 192              |
| Data processing services                                            | 322                                           |   | 380              |
| Franchise shares and deposit tax                                    | 251                                           |   | 229              |
| FDIC Insurance                                                      | 361                                           |   | 91               |
| Core deposit intangible amortization                                | 138                                           |   | 150              |
| Postage and office supplies                                         | 115                                           |   | 88               |
| Telephone and other communication                                   | 100                                           |   | 131              |
| Other                                                               | 449                                           |   | 396              |
| Total non-interest expenses                                         | 6,119                                         |   | 5,547            |
| Income (loss) before income taxes                                   | (2,389)                                       |   | 1,029            |
| Provision for income taxes                                          | (1,018)                                       |   | 191              |
| Net income (loss)                                                   | $(1,371)                                      |   | $  838 |
| Dividends declared and discount accretion on preferred stock        | 508                                           |   | 259              |
| Net income (loss) available for common stockholders                 | $(1,879)                                      |   | $  579 |
| Earnings (loss) per common share, basic and diluted                 | $(0.95)                                       |   | $0.30            |
| See Notes to Consolidated Financial Statements.                     |                                          |   |             |

----

| Citizens First Corporation                                                                                  |
|-------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of Changes in Stockholders' Equity (Unaudited)For the six months ended June 30 |
|                                                                                                        |   |   |   |
|                                                                                                        | 2009 |   | 2008 |
|                                                                                                        | (Dollars in thousands) |
|                                                                                                        |   |   |   |
| Balance January 1                                                                                           | $39,285 |   | $37,296 |
| Net income (loss)                                                                                           | (1,371) |   | 838 |
| Issuance of common stock                                                                                    | - |   | 93 |
| Stock-based compensation                                                                                    | 13 |   | 58 |
| Payment of common dividend, $0.05 per share                                                                 | - |   | (99) |
| Payment of preferred dividends, $951 and $1,036 per share for 2009 and 2008                                 | (475) |   | (259) |
| Other comprehensive income (loss), net of tax                                                               | (337) |   | (452) |
| Balance at end of period                                                                                    | $37,115 |   | $37,475 |
|                                                                                                        |   |   |   |
|                                                                                                        |
| Consolidated Statements of Comprehensive Income (Loss) (Unaudited)For the three months ended June 30        |
|                                                                                                        |   |   |   |
|                                                                                                        | 2009 |   | 2008 |
|                                                                                                        | (Dollars in thousands) |
|                                                                                                        |   |   |   |
| Net income (loss)                                                                                           | $ (1,577) |   | $   370 |
| Other comprehensive income (loss), net of tax:                                                              |   |   |   |
| Unrealized gain (loss) on available for sale securities, net                                                | (515) |   | (506) |
|                                                                                                        |   |   |   |
| Comprehensive income (loss)                                                                                 | $(2,092) |   | $(136) |
|                                                                                                        |   |   |   |
|                                                                                                        |   |   |   |
| Consolidated Statements of Comprehensive Income (Loss) (Unaudited)For the six months ended June 30          |
|                                                                                                        |   |   |   |
|                                                                                                        | 2009 |   | 2008 |
|                                                                                                        | (Dollars in thousands) |
|                                                                                                        |   |   |   |
| Net income (loss)                                                                                           | $  (1,371) |   | $   838 |
| Other comprehensive income (loss), net of tax:                                                              |   |   |   |
| Unrealized gain (loss) on available for sale securities, net                                                | (337) |   | (452) |
|                                                                                                        |   |   |   |
| Comprehensive income (loss)                                                                                 | $  (1,708) |   | $   386 |
|                                                                                                        |   |   |   |

----

| Citizens First Corporation                                                                                         |                                         |                                         |
|--------------------------------------------------------------------------------------------------------------------|----------------------------------------------|----------------------------------------------|
| Consolidated Statements of Cash Flows (Unaudited)                                                                  |                                         |                                         |
| For the six months ended June 30                                                                                   | 2009                                         | 2008                                         |
|                                                                                                               | (Dollars in thousands)                       |
| Operating activities:                                                                                              |                                         |
| Net  income (loss)                                                                                       | $ (1,371)                                    | $ 838                                        |
| Adjustments to reconcile net income to net cash provided by operating activities:                                  |                                         |                                         |
| Depreciation and amortization                                                                                      | 421                                          | 424                                          |
| Stock-based compensation expense                                                                                   | 13                                           | 58                                           |
| Provision for loan losses                                                                                          | 3,200                                        | 277                                          |
| Amortization of premiums and discounts on securities                                                               | 57                                           | 14                                           |
| Amortization of core deposit intangible                                                                            | 138                                          | 150                                          |
| Deferred income taxes                                                                                              | (1,037)                                      | (232)                                        |
| Sale of mortgage loans held for sale                                                                               | 15,151                                       | 9,149                                        |
| Origination of mortgage loans for sale                                                                             | (15,604)                                     | (9,667)                                      |
| Gain on the sale of securities available for sale                                                                  | (361)                                        | -                                            |
| Gain on the sale of property plant and equipment                                                                   | (10)                                         | -                                            |
| Gains on sales of loans                                                                                            | (195)                                        | (138)                                        |
| Net loss on sale of other real estate owned                                                                        | 75                                           | 23                                           |
| FHLB stock dividends received                                                                                      | -                                            | (52)                                         |
| Changes in:                                                                                                        |                                         |                                         |
| Interest receivable                                                                                                | 315                                          | 211                                          |
| Other assets                                                                                                       | (85)                                         | (388)                                        |
| Interest payable and other liabilities                                                                             | -                                            | 53                                           |
| Net cash provided by operating  activities                                                               | 707                                          | 720                                          |
| Investing activities:                                                                                              |                                         |                                         |
| Loan originations and payments, net                                                                                | 6,849                                        | (29,258)                                     |
| Purchases of premises and equipment                                                                                | (530)                                        | (420)                                        |
| Purchase of available-for-sale securities                                                                          | (18,592)                                     | (5,059)                                      |
| Proceeds from maturities of available-for-sale securities                                                          | 4,434                                        | 7,767                                        |
| Proceeds from sales of available-for-sale securities                                                               | 12,278                                       | -                                            |
| Proceeds from sale of other real estate owned                                                                      | 792                                          | 93                                           |
| Proceeds from disposal of property plant and equipment                                                             | 99                                           | -                                            |
| Payment related to purchase of Commonwealth Mortgage and Southern KY Land Title, Inc., net of stock issued    | -                                            | (278)                                        |
| Net cash provided by (used in) investing activities                                                                | 5,330                                        | (27,155)                                     |
| Financing activities:                                                                                              |                                         |                                         |
| Net change in demand deposits, money market, NOW, and savings accounts                                             | 8,981                                        | (8,222)                                      |
| Net change in time deposits                                                                                        | (18,157)                                     | 30,967                                       |
| Proceeds from FHLB advances                                                                                        | 14,000                                       | 2,000                                        |
| Repayment of FHLB advances                                                                                         | (13,500)                                     | (1,368)                                      |
| Net change in repurchase agreements                                                                                | (4,831)                                      | (1,098)                                      |
| Dividends paid on preferred stock                                                                                  | (475)                                        | (259)                                        |
| Dividends paid on common stock                                                                                     | -                                            | (99)                                         |
| Net cash provided by (used in) financing activities                                                                | (13,982)                                     | 21,921                                       |
| Decrease in cash and cash equivalents                                                                              | (7,945)                                      | (4,514)                                      |
| Cash and cash equivalents, beginning of year                                                                       | 15,331                                       | 13,862                                       |
| Cash and cash equivalents, end of quarter                                                                          | $7,386                                       | $9,348                                       |
| Supplemental Cash Flows  Information:                                                                    |                                         |                                         |
| Interest paid                                                                                                      | $3,738                                       | $5,253                                       |
| Income taxes paid                                                                                                  | $       - | $     50            |
| Loans transferred to other real estate                                                                             | $  225                             | $   832                       |
| Stock issued for contingent payment related to purchase of Commonwealth Mortgage and Southern Ky. Land Title, Inc. | $       - | $     93            |
| Deferred revenue related to a sale leaseback transaction                                                           | $      8       | $       8 |
| See Notes to Consolidated Financial Statements.                                                                    |                                         |                                         |

----

----

----

(3) Stock Option Plans 

|                               | 2009    |                           |
|------------------------------------|---------|--------------------------------|
|                               | Shares  | Weighted-Average ExercisePrice |   |   |
|                               |    |                           |   |   |
| Outstanding, beginning of year     | 139,133 | $15.16                         |   |   |
| Granted                            | -       | -                              |   |   |
| Exercised                          | -       | -                              |   |   |
| Forfeited                          | -       | -                              |   |   |
| Expired                            | -       | -                              |   |   |
| Outstanding, end of period         | 139,133 | $15.16                         |   |   |
| Options exercisable, end of period | 139,133 | $15.16                         |   |   |

----

|                                                                       | Quarter ended June 30, 2009    |                  | Quarter ended June 30, 2008                 |
|----------------------------------------------------------------------------|--------------------------------|-----------------------|---------------------------------------------|
|                                                                       |   Income             | WeightedAverageShares |  Per ShareAmount                       |   |   Income | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per common share                                            |                           |                  |                                        |   |   |   |   |
| Net income (loss)                                                          | $ (1,577)                      |                  |                                        |   | $ 370 |   |   |
| Less: Dividends and accretion on   preferred stock          |  (256)                    |                  |                                        |   |   (130) |   |   |
| Net income (loss) available to common shareholders                         | $ (1,833)                      | 1,968,777             | $(0.93)                                     |   | $ 240 | 1,962,614 | $0.13 |
|                                                                       |                           |                  |                                        |   |   |   |   |
| Effect of dilutive securities                                              |                           |                  |                                        |   |   |   |   |
| Convertible preferred stock                                                | -                              | -                     |                                        |   | - | - |   |
| Stock options                                                              | -                              | -                     |                                        |   | - | - |   |
|     Warrant                                            | -                              | -                     |                                        |   | - | - |   |
| Diluted earnings per common share                                          |                           |                  |                                        |   |   |   |   |
|                                                                       |                           |                  |                                        |   |   |   |   |
| Net income (loss) available to common shareholders and assumed conversions | $ (1,833)                      | 1,968,777             | $(0.93)                                     |   | $ 240 | 1,962,614 | $0.13 |
|    Dollars in thousands, except per share data         |
|                                                                       | Six months ended June 30, 2009 |                  | Six months ended June 30, 2008              |
|                                                                       |   Income             | WeightedAverageShares |  Per ShareAmount                       |   |   Income | Weighted-AverageShares |  Per ShareAmount |
| Basic earnings per common share                                            |                           |                  |                                        |   |   |   |   |
| Net income (loss)                                                          | $ (1,371)                      |                  |                                        |   | $ 838 |   |   |
| Less: Dividends and accretion on   preferred stock          |   (508)              |                  |                                        |   | (259) |   |   |
| Net income (loss) available to common shareholders                         | $ (1,879)                      | 1,968,777             | $      (0.95) |   | $ 579 | 1,961,098 | $0.30 |
|                                                                       |                           |                  |                                        |   |   |   |   |
| Effect of dilutive securities                                              |                           |                  |                                        |   |   |   |   |
| Convertible preferred stock                                                | -                              | -                     |                                        |   | - | - |   |
| Stock options                                                              | -                              | -                     |                                        |   | - | - |   |
|     Warrant                                            | -                              | -                     |                                        |   | - | - |   |
| Diluted earnings per common share                                          |                           |                  |                                        |   |   |   |   |
|                                                                       |                           |                  |                                        |   |   |   |   |
| Net income (loss) available to common shareholders and assumed conversions | $ (1,879)                      | 1,968,777             | $      (0.95) |   | $ 579 | 1,961,098 | $0.30 |

----

|                                    |                          Fair Value Measurements at June 30, 2009, Using(Dollars in Thousands) |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |
|                                    |  June 30, 2009                                                                                                                                                                                                         | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) |
| Carrying value                          |                                                                                                                                                                                                                        |   |   |
| Assets:                                 |                                                                                                                                                                                                                        |   |   |   |
| Securities available-for-sale           |                                                                                                                                                                                                                        |   |   |   |
| U. S. government agencies               | $19,465                                                                                                                                                                                                                     |   | $19,465 |   |
| State and municipal                     | $19,091                                                                                                                                                                                                                     |   | $19,091 |   |
| Mortgage-backed securities -residential | $  2,406                                                                                                                                                                                                               |   | $  2,406 |   |
| Trust preferred security                | $     640                                                                                                                                                                                                    |   | $    640 |   |
|                                    |                                                                                                                                                                                                                        |   |   |   |
| Total investment securities             | $41,602                                                                                                                                                                                                                     | - | $41,602 | - |

----

|                                    |                          Fair Value Measurements at December 31, 2008, Using(Dollars in Thousands) |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |
|                                    |  December 31, 2008                                                                                                                                                                                                         | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) |
| Carrying Value                          |                                                                                                                                                                                                                            |   |   |
| Assets:                                 |                                                                                                                                                                                                                            |   |   |   |
| Securities available-for-sale           |                                                                                                                                                                                                                            |   |   |   |
| U. S. government agencies               | $4,504                                                                                                                                                                                                                          |   | $4,504 |   |
| State and municipal                     | $19,042                                                                                                                                                                                                                         |   | $19,042 |   |
| Mortgage-backed securities -residential | $15,582                                                                                                                                                                                                                         |   | $15,582 |   |
| Trust preferred security                | $    800                                                                                                                                                                                                         |   | $   800 |   |
|                                    |                                                                                                                                                                                                                            |   |   |   |
| Total investment securities             | $39,928                                                                                                                                                                                                                         | - | $39,928 | - |

----

|                         | June 30, 2009          | December 31, 2008  |
|------------------------------|------------------------|--------------------|
|                         | (Dollars in Thousands) |
|                         |                   |
|                         | Carrying Amount        | Fair Value         | Carrying Amount | Fair Value |
| Financial Assets             |                   |               |   |   |
|                         |                   |               |   |   |
| Cash and cash equivalents    | $  7,386     | $  7,386 | $  15,331 | $  15,331 |
| Loans held for sale          | 1,201                  | 1,201              | 553 | 553 |
| Loans, net of allowance      | 255,500                | 251,132            | 265,954 | 270,146 |
| Accrued interest receivable  | 2,043                  | 2,043              | 2,358 | 2,358 |
| Federal Home Loan Bank stock | 2,025                  | n/a                | 2,025 | n/a |

| Financial Liabilities                                  |      |      |      |      |
|--------------------------------------------------------|-----------|-----------|-----------|-----------|
| Deposits                                               | $ 263,839 | $ 266,336 | $ 273,015 | $ 276,473 |
| Securities sold under repurchase  agreements | 3,427     | 3,427     | 8,258     | 8,258     |
| FHLB advances                                          | 28,000    | 27,767    | 27,500    | 27,477    |
| Subordinate debentures                                 | 5,000     | 2,998     | 5,000     | 2,998     |
| Accrued interest payable                               | 443       | 443       | 683       | 683       |

----

| (6)   | Investment Securities |
|-----------------|-----------------------|

|                                           | Amortized              | Gross      | Gross                                                                                                            | Fair    |
|------------------------------------------------|------------------------|------------|------------------------------------------------------------------------------------------------------------------|---------|
|                                           | Cost                   | Unrealized | Unrealized                                                                                                       | Value   |
|                                           |                   | Gains      | Losses                                                                                                           |    |
|                                           | (Dollars in Thousands) |
| June 30, 2009                                  |                   |       |                                                                                                             |    |
| U. S. government agencies                      | $  19,533    | $24        | $ (92)                                                                                                           | $19,465 |
| State and municipal                            | 19,349                 | 113        | (371)                                                                                                            | 19,091  |
| Mortgage-backed securities –residential  | 2,375                  | 31         | -                                                                                                                | 2,406   |
| Trust preferred security                       | 1,861                  | -          | (1,221)                                                                                                          | 640     |
|                                           |                   |       |                                                                                                             |    |
| Total investment securities                    | $43,118                | $168       | $(1,684)                                                                                                         | $41,602 |
|                                           |                   |       |                                                                                                             |    |
| December 31, 2008                              |                   |       |                                                                                                             |    |
| U. S. government agencies                      | $4,470                 | $34        |              $       - | $4,504  |
| State and municipal                            | 19,362                 | 155        | (475)                                                                                                            | 19,042  |
| Mortgage-backed securities – residential | 15,241                 | 342        | (1)                                                                                                              | 15,582  |
| Trust preferred security                       | 1,860                  | -          | (1,060)                                                                                                          | 800     |
|                                           |                   |       |                                                                                                             |    |
| Total investment securities                    | $40,933                | $531       | $(1,536)                                                                                                         | $39,928 |

|                       | June 30, 2009                                                  |
|----------------------------|----------------------------------------------------------------|
|                       | Available for Sale                                             |
|                       | (Dollars in Thousands)                                    |
|                       | Amortized Cost                                                 | Fair Value |
|                       |                                                           |   |
| Due in one year or less    | $          - | $          - |
| Due from one to five years | 20,194                                                         | 20,188 |
| Due from five to ten years | 8,495                                                          | 8,532 |
| Due after ten years        | 12,054                                                         | 10,476 |
| Mortgage-backed            |    2,375                                        | 2,406 |
| Total                      | $43,118                                                        | $41,602 |

----

|                                   | Less than 12 Months | 12 Months or More | Total                      |
|----------------------------------------|---------------------|-------------------|----------------------------|
| Description ofSecurities               | Fair Value          | UnrealizedLosses  | Fair Value                 | UnrealizedLosses | Fair Value | UnrealizedLosses |
| (Dollars in Thousands)                 |                |              |                       |   |   |   |
| June 30, 2009                          |                |              |                       |   |   |   |
| U.S. government agencies               | $ 8,722             | $  (92) | $    - |  $            - |   $  8,722 |  $   (92) |
| State and municipal                    | 11,834              | (363)             | 116                        | (8) | 11,950 | (371) |
| Mortgage-backed securities-residential | -                   | -                 | -                          | - | - | - |
| Trust preferred security               | -                   | -                 | 640                        | (1,221) | 640 | (1,221) |
|                                   |                |              |                       |   |   |   |
| Total temporarily impaired             | $20,556             | $(455)            | $756                       | $(1,229) | $21,312 | $(1,684) |

|                                     | Less than 12 Months                                | 12 Months or More                                                    | Total                                              |
|------------------------------------------|----------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------|
| Description ofSecurities                 | Fair Value                                         | UnrealizedLosses                                                     | Fair Value                                         | UnrealizedLosses | Fair Value | UnrealizedLosses |
| (Dollars in Thousands)                   |                                               |                                                                 |                                               |   |   |   |
| December 31, 2008                        |                                               |                                                                 |                                               |   |   |   |
| U.S. government agencies                 | $        - | $           - | $        - | $     - | $         - | $       - |
| State and municipal                      | 8,964                                              | (346)                                                                | 2,012                                              | (129) | 10,976 | (475) |
| Mortgage-backed securities - residential | -                                                  | -                                                                    | 290                                                | (1) | 290 | (1) |
| Trust preferred security                 | 800                                                | (1,060)                                                              | -                                                  | - | 800 | (1,060) |
|                                     |                                               |                                                                 |                                               |   |   |   |
| Total temporarily impaired               | $9,764                                             | $(1,406)                                                             | $2,302                                             | $(130) | $12,066 | $(1,536) |

----

----

----

----

| Average Consolidated Balance Sheets and Net Interest Analysis (Dollars in thousands) |
|--------------------------------------------------------------------------------------|
| Six months ended June 30,                                                            |   | 2009 |   |   | 2008 |   |
|                                                                                 | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning assets:                                                                      |   |   |   |   |   |   |
| Federal funds sold                                                                   | $  4,764 | $ 5 | .21% | $  4,666 | $ 66 | 2.84% |
| Available-for-sale securities (1)                                                    |   |   |   |   |   |   |
| Taxable                                                                              | 23,246 | 462 | 4.01% | 22,618 | 584 | 5.19% |
| Nontaxable (1)                                                                       | 19,346 | 571 | 5.95% | 18,476 | 546 | 5.94% |
| Federal Home Loan Bank stock                                                         | 2,025 | 46 | 4.58% | 1,955 | 52 | 5.35% |
| Loans, net (2)                                                                       | 269,105 | 7,866 | 5.89% | 270,373 | 9,504 | 7.07% |
| Total interest earning assets                                                        | 318,486 | 8,950 | 5.67% | 318,088 | 10,752 | 6.80% |
| Non-interest earning assets                                                          | 33,202 |   |   | 40,810 |   |   |
| Total Assets                                                                         |  $ 351,688 |   |   |  $ 358,898 |   |   |
|                                                                                 |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                        |   |   |   |   |   |   |
| Interest-bearing transaction accounts                                                | $  60,257 | $  188 | .63% | $  68,697 | $  325 | .95% |
| Savings accounts                                                                     | 8,735 | 13 | .30% | 7,599 | 22 | .58% |
| Time deposits                                                                        | 167,292 | 2,797 | 3.37% | 189,055 | 4,226 | 4.50% |
| Total interest-bearing deposits                                                      | 236,284 | 2,998 | 2.56% | 265,351 | 4,573 | 3.47% |
| Short-term borrowings                                                                | 25 | 0 | 0.00% | 509 | 7 | 2.74% |
| Securities sold under repurchase agreements                                          | 5,760 | 83 | 2.91% | 2,625 | 20 | 1.53% |
| FHLB borrowings                                                                      | 26,575 | 344 | 2.61% | 17,578 | 356 | 4.07% |
| Subordinated debentures                                                              | 5,000 | 74 | 2.98% | 5,000 | 135 | 5.43% |
| Total interest-bearing liabilities                                                   | 273,644 | 3,499 | 2.58% | 291,063 | 5,091 | 3.52% |
| Non-interest bearing deposits                                                        | 35,457 |   |   | 27,121 |   |   |
| Other liabilities                                                                    | 1,859 |   |   | 2,775 |   |   |
| Total liabilities                                                                    | 310,960 |   |   | 320,959 |   |   |
| Stockholders’ equity                                                           | 40,728 |   |   | 37,939 |   |   |
| Total Liabilities and Stockholders’   Equity                    | $  351,688 |   |   | $  358,898 |   |   |
| Net interest income                                                                  |   | $ 5,451 |   |   | $ 5,661 |   |
| Net interest spread (1)                                                              |   |   | 3.09% |   |   | 3.28% |
| Net interest margin  (1) (3)                                               |   |   | 3.45% |   |   | 3.58% |
| Return on average assets ratio                                                       |   |   | (.79%) |   |   | .47% |
| Return on average equity ratio                                                       |   |   | (6.79%) |   |   | 4.44% |
| Average equity to assets ratio                                                       |   |   | 11.33% |   |   | 10.57% |
| _______________                                                                      |   |   |   |   |   |   |

----

|                                                        | Six Months Ended       |
|-------------------------------------------------------------|------------------------|
| (Dollars in thousands)                                      | June 30,               |
|                                                        | 2009 vs. 2008          |
|                                                        | Variance Attributed to |
|                                                        |                   | Rate |   | Volume |   | Net |
| Interest-earning assets:                                    |                   |   |   |   |   |   |
| Federal funds sold                                          |                   | $(62) |   | $  1 |   | $ (61) |
| Available-for-sale-securities:                              |                   |   |   |   |   |   |
| Taxable                                                     |                   | (138) |   | 16 |   | (122) |
| Nontaxable (1)                                              |                   | (-) |   | 25 |   | 25 |
| FHLB stock                                                  |                   | (8) |   | 2 |   | (6) |
| Loans, net                                                  |                   | (1,594) |   | (44) |   | (1,638) |
| Total net change in income on earning assets                |                   | (1,802) |   | - |   | (1,802) |
|                                                        |                   |   |   |   |   |   |
| Interest-bearing liabilities:                               |                   |   |   |   |   |   |
| Interest-bearing transaction accounts                       |                   | (97) |   | (40) |   | (137) |
| Savings accounts                                            |                   | (12) |   | 3 |   | (9) |
| Time deposits                                               |                   | (944) |   | (485) |   | (1,429) |
| Securities sold under repurchase agreements                 |                   | 39 |   | 24 |   | 63 |
| FHLB borrowings                                             |                   | (194) |   | 182 |   | (12) |
| Short-term borrowings                                       |                   | 0 |   | (7) |   | (7) |
| Subordinated debentures                                     |                   | (61) |   | 0 |   | (61) |
| Total net change in expense on interest-bearing liabilities |                   |  (1,269) |   | (323) |   | (1,592) |
|                                                        |                   |   |   |   |   |   |
| Net change in net interest income                           |                   | $  (533) |   | $(323) |   | $ (210) |
|                                                        |                   |   |   |   |   |   |
| Percentage change                                           |                   | (253.81)% |   |  (153.81)% |   | 100.0% |

----

| ( Dollars in thousands)                          | June 30, 2009 | June 30, 2008 |      Increase(Decrease) |
|--------------------------------------------------|---------------|---------------|--------------------------------------------------|
| Service charges on deposit accounts              | $641          | $772          | $(131)                                           |
| Gain on the sale of mortgage loans held for sale | 195           | 138           | 57                                               |
| Lease income                                     | 81            | 105           | (24)                                             |
| Gain on the sale of investments                  | 361           | -             | 361                                              |
| BOLI income                                      | 150           | 147           | 3                                                |
| Other income                                     | 245           | 215           | 30                                               |
|                                             | $1,673        | $1,377        | $ 296                                            |

----

| Dollars in thousands                 | June 30, 2009 | June 30, 2008 | Increase(Decrease) |
|--------------------------------------|---------------|---------------|--------------------|
| Salaries and employee benefits       | $2,788        | $2,673        | $115               |
| Net occupancy expense                | 674           | 620           | 54                 |
| Equipment expense                    | 377           | 388           | (11)               |
| Advertising                          | 216           | 209           | 7                  |
| Professional fees                    | 328           | 192           | 136                |
| Data processing services             | 322           | 380           | (58)               |
| Franchise shares and deposit tax     | 251           | 229           | 22                 |
| FDIC Insurance                       | 361           | 91            | 270                |
| Core deposit intangible amortization | 138           | 150           | (12)               |
| Postage and office supplies          | 115           | 88            | 27                 |
| Telephone and other communication    | 100           | 131           | (31)               |
| Other operating expenses             | 449           | 396           | 53                 |
|                                 | $6,119        | $5,547        | $572               |

----

| (Dollars in thousands)      | June 30, |          % of | December 31, |    % of |
|-----------------------------|----------|------------------------------------------------------------|--------------|------------------------|
|                        | 2009     | Total Loans                                                | 2008         | Total Loans       |
| Commercial and agricultural | $75,066  | 28.73%                                                     | $79,248      | 29.16%                 |
| Commercial real estate      | 100,611  | 38.50%                                                     | 104,043      | 38.29%                 |
| Residential real estate     | 73,577   | 28.16%                                                     | 74,027       | 27.24%                 |
| Consumer                    | 12,058   | 4.61%                                                      | 14,427       | 5.31%                  |
|                        | $261,312 | 100.00%                                                    | $271,745     | 100.00%                |

| Loan Maturities             |            |                            |             |           |
|-----------------------------|-----------------|---------------------------------|------------------|----------------|
| June 30, 2009               | Within One Year | After One But Within Five Years | After Five Years | Total          |
| (Dollars in thousands)      |            |                            |             |           |
|                        |            |                            |             |           |
| Commercial and agricultural | $ 34,120   | $28,806                         | $12,140     | $ 75,066  |
| Commercial real estate      | 28,586     | 32,857                     | 39,168           | 100,611        |
| Residential real estate     | 5,193           | 17,175                          | 51,209           | 73,577         |
|  Consumer              | 2,955           | 8,619                           | 484              | 12,058         |
| Total                       | $70,854         | $87,457                         | $103,001         | $261,312       |

|                                              | June 30, 2009 | December 31, 2008 |
|---------------------------------------------------|---------------|-------------------|
| (Dollars in thousands)                            |          |              |
| Non-performing loans                              | $ 2,567       | $2,550            |
| Non-performing assets                             | 3,108         | 3,733             |
| Allowance for loan losses                         | 3,657         | 3,816             |
| Non-performing assets to total loans              | 1.19%         | 1.37%             |
| Non-performing assets to total assets             | 0.92%         | 1.03%             |
| Net charge-offs to average total loans            | 1.26%         | .48%              |
| Allowance for loan losses to non-performing loans | 142.46%       | 149.65%           |
| Allowance for loan losses to total loans          | 1.40%         | 1.40%             |

----

----

|                                                     | June 30, 2009 | June 30, 2008 |
|----------------------------------------------------------|---------------|---------------|
| (Dollars In thousands)                                   |          |          |
| Balance, beginning of year                               | $3,816        | $3,194        |
| Provision for loan losses                                | 3,200         | 277           |
| Amounts charged off:                                     |          |          |
| Commercial                                               | (2,602)       | (4)           |
| Commercial real estate                                   | (516)         | -             |
| Residential real estate                                  | (151)         | (200)         |
| Consumer                                                 | (165)         | (53)          |
| Total loans charged off:                                 | (3,434)       | (257)         |
| Recoveries of  amounts previously charged off: |          |          |
| Commercial                                               | 59            | 13            |
| Commercial real estate                                   | -             | -             |
| Residential real estate                                  | 14            | 13            |
| Consumer                                                 | 2             | 8             |
| Total recoveries                                         | 75            | 34            |
| Net (charge-offs) recoveries                             | (3,359)       | (223)         |
| Balance, end of period                                   | $3,657        | $3,248        |

|  Allocation of Allowance for Loan Loss |
|---------------------------------------------|
|                                        | June 30, 2009 | December 31, 2008 | June 30, 2008 |
|                                        |    Amount | % ofLoans in Each Category to Total Loans |    Amount | % ofLoans in Each Category to TotalLoans |    Amount | % ofLoans in Each Category to Total Loans |
|                                        | (Dollars in thousands) |
| Residential real estate                     | $     809 | 28.16% | $       823 | 27.24% | $     924 | 26.94% |
| Consumer and other loans                    | 188 | 4.61% | 340 | 5.31% | 236 | 5.13% |
| Commercial and agriculture                  | 1,647 | 28.73% | 1,641 | 29.16% | 1,304 | 33.21% |
| Commercial real estate                      | 874 | 38.50% | 830 | 38.29% | 608 | 34.72% |
| Unallocated                                 | 139 | 0.00% |          182 |     0.00% | 176 | 0.00% |
| Total allowance for loan losses             | $  3,657 | 100.00% | $    3,816 | 100.00% | $  3,248 | 100.00% |

----

|                                | June 30, 2009          | December 31, 2008                                      |
|-------------------------------------|------------------------|--------------------------------------------------------|
|                                | (Dollars in thousands) |
|                                |                   |                                                   |
| U.S. Government agencies            | $  19,465    |      $   4,504 |
| Mortgage-backed securities          | 2,406                  | 15,582                                                 |
| Municipal securities                | 19,091                 | 19,042                                                 |
| Trust preferred security            | 640                    |      800                           |
| Total available-for-sale securities | $ 41,602               | $   39,928                              |

|                                              |                             |                |                         |                                                     |
|---------------------------------------------------|----------------------------------|---------------------|------------------------------|----------------------------------------------------------|
| June 30, 2009                                     |                             | Over                | Over                         |                                                     |   |   |
| (Dollars in thousands)                            |                             | One Year            | Five Years                   | Over                                                     |   |   |
|                                              | One Year                         | Through             | Through                      | Ten                                                      | Total | Market |
|                                              | or Less                          | Five Years          | Ten Years                    | Years                                                    | Maturities | Value |
| U.S. Government agencies                          | $     - | $  18,536 | $    997 | $         - | $  19,533 | $   19,465 |
| Mortgage-backed securities:(1)                    | -                                | 2,375               | -                            | -                                                        | 2,375 | 2,406 |
| Municipal securities                              | -                                | 1,658               | 7,498                        | 10,193                                                   | 19,349 | 19,091 |
| Trust preferred security                          | -                                | -                   | -                            | 1,861                                                    | 1,861 | 640 |
|   Total available- for sale -securities | $     - | $  22,569 | $ 8,495                      | $ 12,054                                                 | $ 43,118 | $ 41,602 |
|                                              |                             |                |                         |                                                     |   |   |
| Percent of total                                  | 0.0%                             | 52.3%               | 19.7%                        | 28.0%                                                    | 100.0% |   |
| Weighted average yield(2)                         |                             | 2.38%               | 5.18%                        | 5.98%                                                    | 3.95% |   |

----

| Maturity of Time Deposits of $100,000 or more  |   |                                                          |                                                                |
|-----------------------------------------------------|--------|---------------------------------------------------------------|---------------------------------------------------------------------|
| (Dollars in thousands)                         |   | June 30, 2009                                                 | December 31, 2008                                              |
|                                                |   |                                                          |                                                                |
| Three months or less                                |   | $ 9,597                                                       | $ 9,118                                                             |
| Over three through six months                       |   | 9,693                                                         | 20,842                                                              |
| Over six through twelve months                      |   | 20,413                                                        | 16,028                                                              |
| Over one year through three years                   |   | 22,467                                                        | 20,225                                                              |
| Over three years through 5 years                    |   | 5,129                                                         | 10,127                                                              |
| Over five years                                     |   |           - |            - |
| Total                                               |   | $  67,299                                           | $76,340                                                             |

| (Dollars in thousands) |               |   |    |
|------------------------|--------------------|--------|---------|
| Type                   | Maturity           | Rate   | Amount  |
| Variable               | August 18, 2009    | 0.30%  | $1,000  |
| Variable               | August 20, 2009    | 0.30%  | 1,000   |
| Variable               | September 8, 2009  | 0.30%  | 1,500   |
| Variable               | September 14, 2009 | 0.30%  | 2,500   |
| Variable               | September 28, 2009 | 0.30%  | 500     |
| Fixed                  | July 31, 2009      | 5.14%  | 2,000   |
| Fixed                  | August 26, 2009    | 0.25%  | 6,000   |
| Fixed                  | October 22, 2009   | 4.49%  | 2,000   |
| Fixed                  | November 30, 2009  | 4.00%  | 3,000   |
| Fixed                  | February 16, 2010  | 5.11%  | 2,000   |
| Fixed                  | August 28, 2012    | 4.25%  | 500     |
| Fixed                  | December 24, 2012  | 3.36%  | 2,000   |
| Fixed                  | December 24, 2014  | 3.46%  | 2,000   |
| Fixed                  | February 25, 2015  | 2.85%  | 2,000   |
|                   |               |   |    |
|                   |               |   | $28,000 |

----

| (Dollars in thousands)                                                        |          |
|-------------------------------------------------------------------------------|---------------|
|                                                                          | June 30, 2009 |
|  Federal funds purchased and repurchase agreements:                      |          |
| Balance at period end                                                         | $3,427        |
| Weighted average rate at period end                                           | 2.74%         |
| Average balance during the six months ended June 30, 2009                     | $5,785        |
| Weighted average rate for the six months ending June 30, 2009 during the year | 2.89%         |
| Maximum month-end balance                                                     | $6,878        |

----

|                            | June 30, 2009 | December 31, 2008 | Regulatory Minimum |
|---------------------------------|---------------|-------------------|--------------------|
| Tier I leverage ratio           | 10.45%        | 11.31%            | 4.00%              |
| Tier I risk-based capital ratio | 12.59%        | 13.52%            | 4.00%              |
| Total risk-based capital ratio  | 13.84%        | 14.77%            | 8.00%              |

|                            | June 30,2009 | December 31, 2008 | Regulatory Minimum | “Well-capitalized” Minimum |
|---------------------------------|--------------|-------------------|--------------------|----------------------------------------|
| Tier I leverage ratio           | 8.85%        | 9.68%             | 4.00%              | 5.00%                                  |
| Tier I risk-based capital ratio | 10.67%       | 11.53%            | 4.00%              | 6.00%                                  |
| Total risk-based capital ratio  | 11.92%       | 12.78%            | 8.00%              | 10.00%                                 |

----

  Net interest income would increase at a slower pace in the rising rate environment due to the increased cost of liabilities that would reprice during this time period compared to the assets which would not reprice in the same timeframe. 

Item 4.  Controls and Procedures 

----

|               | Votes for | Votes withheld |
|--------------------|-----------|----------------|
|               |      |           |
| James R. Hilliard  | 1,626,749 | 71,921         |
| John J. Kelly, III | 1,610,138 | 88,532         |
| Dr. Kevin Vance    | 1,596,851 | 101,819        |
|               |      |           |
|               |      |           |

| Name                                                             | Term Expires In      |
|------------------------------------------------------------------|----------------------|
| Barry D. BraySarah Glenn GriseChris B. GuthrieAmy Milliken       | 2011201120112011     |
| Steve NewberryJohn T. PerkinsJack SheidlerJohn TaylorFred Travis | 20102011201020102010 |
|                                                             |                 |
|                                                             |                 |

| Votes For       | 1,714,537 |
|-----------------|-----------|
|            |      |
| Votes Against   | 151,566   |
|            |      |
| Votes Abstained | 56,501    |

----

| 3.1 | Restated Articles of Incorporation of Citizens First Corporation, as amended (incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form SB-2 (No. 333-103238)). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 3 of the Registrant’s Form 10-QSB dated June 30, 2004). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 1 of the Registrant’s Form 8-K filed June 5, 2007). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (incorporated by reference to Exhibit 3. 1 of the Registrant’s Form 8-K filed December 23, 2008). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Amended and Restated Bylaws of Citizens First Corporation (incorporated by reference to Exhibit 3 of the Registrant’s Current Report on Form 8-K/A filed April 27, 2009). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Restated Articles of Incorporation of Citizens First Corporation, as amended (see Exhibit 3.1). |
|-----|-------------------------------------------------------------------------------------------------|

| 4.2 | Articles of Amendment to Amended and Restated Articles of Incorporation of Citizens First Corporation (see Exhibits 3.2, 3.3 and 3.4). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | Amended and Restated Bylaws of Citizens First Corporation (see Exhibit 3.5). |
|-----|------------------------------------------------------------------------------|

| 4.4           Copy of Registrants’ Agreement Pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K dated March 30, 2007 with respect to certain debt instruments (incorporated by reference to Exhibit 4.4 of the Registrant’s Form 10K-SB dated March 31, 2007). |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Warrant to Purchase Common Stock (incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K filed December 23, 2008). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Separation Agreement and General Release dated April 22, 2009 between the Registrant and Mary D. Cohron. |
|------|----------------------------------------------------------------------------------------------------------|

| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|------|---------------------------------------------------------------------------------------------|

| 31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. |
|------|-------------------------------------------------------------------------------------------------|

| 32.2 | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section1350. |
|------|---------------------------------------------------------------------------------|

----

|   |            | CITIZENS FIRST CORPORATION                                        |
|--------|-----------------|-------------------------------------------------------------------|
|   |            |                                                              |
|   |            |                                                              |
| Date:  | August 14, 2009 | /s/M. Todd Kanipe                                                 |
|   |            | M. Todd Kanipe                                                    |
|   |            | President and Chief Executive Officer                             |
|   |            | (Principal Executive Officer)                                     |
|   |            |                                                              |
|   |            |                                                              |
|   |            |                                                              |
|   | August 14, 2009 | /s/ Dawn S. Forbes                                           |
|   |            | Dawn S. Forbes                                                    |
|   |            | Executive Vice President, Finance and Principal Financial Officer |
|   |            |                                                              |

----

----

----

----

----

----

----

----

----

|   | I, M. Todd Kanipe certify that: |
|--------|---------------------------------|

|   | 1. | I have reviewed this Form 10-Q of Citizens First Corporation; |
|--------|----|---------------------------------------------------------------|

|   | 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control overfinancial reporting; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date: August 14, 2009                 |   |
|---------------------------------------|--------|
|                                  |   |
| /s/M. Todd Kanipe                     |   |
| M. Todd Kanipe                        |   |
| President and Chief Executive Officer |   |

----

|   | I, Dawn S. Forbes certify that: |
|--------|---------------------------------|

|   | 1. | I have reviewed this Form 10-Q of Citizens First Corporation; |
|--------|----|---------------------------------------------------------------|

|   | 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control overfinancial reporting; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date: August 14, 2009                                             |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |
| /s/Dawn S. Forbes                                                 |   |
| Dawn S. Forbes                                                    |   |
| Executive Vice President, Finance and Principal Financial Officer |   |
|                                                              |   |

----

| By:    | /s/M. Todd Kanipe                     |   |
|--------|---------------------------------------|--------|
|   | M. Todd Kanipe                        |   |
|   | President and Chief Executive Officer |   |
|   |                                  |   |
|   |                                  |   |
|   |                                  |   |
| Date:  | August 14, 2009                       |   |

----

| By:    | /s/ Dawn S. Forbes                                                |   |
|--------|-------------------------------------------------------------------|--------|
|   | Dawn S. Forbes                                                    |   |
|   | Executive Vice President, Finance and Principal Financial Officer |   |
|   |                                                              |   |
| Date:  | August 14, 2009                                                   |   |