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

**FORM      10-QSB**

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

| QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------------------------------------------------------------------------------------------------------------------------------------|
| For                the quarterly period ended March 31,                2007                                                          |

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

**CITIZENS      FIRST CORPORATION**

| **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) |

**(270)      393-0700**

| Check                whether the issuer (1) filed all reports required to be filed by                Section                13 or 15(d) of the Exchange Act during the past 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 is a shell company (as defined                in                Rule 12b-2 of the Exchange Act). Yes o                No                x                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| State                the number of shares outstanding of each of the issuer’s classes of common                equity, as of the latest practicable date:                                                                                                                                                                                                                                                                                                                         |

| **Class**                                           | **Outstanding                at May 15, 2007** |
|-----------------------------------------------------|------------------------------------------------|
| Common                Stock, no par value per share | 1,984,583                shares                |

----

**CITIZENS      FIRST CORPORATION**

**TABLE      OF CONTENTS**

| PART                I - FINANCIAL INFORMATION |                                                                           |
|-----------------------------------------------|--------------------------------------------------------------------------------|
|                                          |                                                                           |
| ITEM                1                         | FINANCIAL                STATEMENTS                                            | 3 |
|                                          |                                                                           |   |
| ITEM                2                         | MANAGEMENT’S                DISCUSSION AND ANALYSIS OR PLAN OF OPERATION | 9 |
|                                          |                                                                           |   |
| ITEM                3                         | CONTROLS                AND PROCEDURES                                         | 20 |
|                                          |                                                                           |   |
|                                          |                                                                           |   |
| PART                II                        |                                                                           |   |
|                                          |                                                                           |   |
| ITEM                6                         | EXHIBITS                                                                       | 21 |
|                                          |                                                                           |   |
| SIGNATURES                                    | 22                                                                             |

----

**Part      1. Financial Information**

**Item      1. Financial Statements**

| **Citizens                First Corporation**                                                                                                                                                                                               |                                                |   |                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|------------------------------------------|
| **Consolidated                Balance Sheets (Unaudited)**                                                                                                                                                                                  |                                                |   |                                     |
|                                                                                                                                                                                                                                        | **March                31,****2007**                |   | **December                31, 200****6** |
|                                                                                                                                                                                                                                        | **(In                thousands except share data)** |
| **Assets**                                                                                                                                                                                                                                  |
| Cash                and due from financial institutions                                                                                                                                                                                     | $7,986                                              |   | $8,715                                   |
| Federal                funds sold                                                                                                                                                                                                           | 29,087                                              |   | 21,135                                   |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Cash                and cash equivalents                                                                                                                                                                                                    | 37,073                                              |   | 29,850                                   |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Available                for sale securities                                                                                                                                                                                                | 37,279                                              |   | 42,613                                   |
| Loans                held for sale                                                                                                                                                                                                          | 1,407                                               |   | 108                                      |
| Loans,                net of allowance of $3,000 and $3,128 at March 31, 2007 and December                31,                2006, respectively                                                                                             | 247,760                                             |   | 236,439                                  |
| Premises                and equipment, net                                                                                                                                                                                                  | 11,253                                              |   | 11,177                                   |
| Federal                Home Loan Bank (FHLB) stock, at cost                                                                                                                                                                                 | 1,946                                               |   | 1,946                                    |
| Accrued                interest receivable                                                                                                                                                                                                  | 2,759                                               |   | 2,813                                    |
| Deferred                income taxes                                                                                                                                                                                                        | 272                                                 |   | 302                                      |
| Goodwill                                                                                                                                                                                                                                    | 10,904                                              |   | 10,945                                   |
| Core                deposit intangible                                                                                                                                                                                                      | 2,117                                               |   | 2,203                                    |
| Other                assets                                                                                                                                                                                                                 | 572                                                 |   | 379                                      |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Total                assets                                                                                                                                                                                                                 | $353,342                                            |   | $338,775                                 |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| **Liabilities                and S****tockholders'                Equity**                                                                                                                                                                  |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| **Liabilities**                                                                                                                                                                                                                             |                                                |   |                                     |
| Deposits:                                                                                                                                                                                                                                   |                                                |   |                                     |
| Non-interest                bearing                                                                                                                                                                                                         | $26,174                                             |   | $26,544                                  |
| Savings,                NOW and money market                                                                                                                                                                                                | 96,840                                              |   | 95,994                                   |
| Time                                                                                                                                                                                                                                        | 173,846                                             |   | 156,837                                  |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Total                deposits                                                                                                                                                                                                               | 296,860                                             |   | 279,375                                  |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Securities                sold under repurchase agreements                                                                                                                                                                                  | 3,390                                               |   | 3,921                                    |
| FHLB                advances                                                                                                                                                                                                                | 9,233                                               |   | 11,354                                   |
| Notes                payable                                                                                                                                                                                                                | -                                                   |   | 350                                      |
| Subordinated                debentures                                                                                                                                                                                                      | 5,000                                               |   | 5,000                                    |
| Accrued                interest payable                                                                                                                                                                                                     | 915                                                 |   | 722                                      |
| Other                liabilities                                                                                                                                                                                                            | 1,061                                               |   | 1,564                                    |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| Total                liabilities                                                                                                                                                                                                            | 316,459                                             |   | 302,286                                  |
|                                                                                                                                                                                                                                        |                                                |   |                                     |
| **Stockholders'                Equity**:                                                                                                                                                                                                    |                                                |   |                                     |
| 6.5%                cumulative preferred stock, no par value; authorized 500 shares;                issued                and outstanding 250 shares at March 31, 2007 and at December 31,                2006,                respectively | 7,659                                               |   | 7,659                                    |
| Common                stock, no par value; authorized 5,000,000 shares; issued and outstanding                1,984,583 shares at March 31, 2007 and 1,978,463 shares at December                31,                2006                    | 26,723                                              |   | 26,573                                   |
| Retained                earnings                                                                                                                                                                                                            | 2,912                                               |   | 2,639                                    |
| Accumulated                other comprehensive income (loss)                                                                                                                                                                                | (411)                                               |   | (382)                                    |
| Total                stockholders' equity                                                                                                                                                                                                   | 36,883                                              |   | 36,489                                   |
| Total                liabilities and stockholders' equity                                                                                                                                                                                   | $353,342                                            |   | $338,775                                 |
|  **See                Notes to Consolidated Financial Statements.**                                                                                                                                                                    |

----

| **Citizens                First Corporation**                                |                                                     |   |                       |
|------------------------------------------------------------------------------|----------------------------------------------------------|--------|----------------------------|
| **Consolidated                Statements of Income (Unaudited)**             |                                                     |
| **For                the three months ended March 31**                       | **2007**                                                 |   | **2006**                   |
|                                                                         | **(In                thousands, except per share data)** |
| **Interest                and dividend income**                              |                                                     |   |                       |
| Loans                                                                        | $5,035                                                   |   | $2,988                     |
| Taxable                securities                                            | 368                                                      |   | 115                        |
| Non-taxable                securities                                        | 83                                                       |   | 6                          |
| Federal                funds sold and other                                  | 328                                                      |   | 124                        |
|  Total                interest and dividend income                      |  5,814                                              |   |  3,233                |
| **Interest                expense**                                          |                                                     |   |                       |
| Deposits                                                                     | 2,408                                                    |   | 1,018                      |
| Securities                sold under agreements to repurchase                | 20                                                       |   | 7                          |
| FHLB                advances                                                 | 110                                                      |   | 122                        |
| Subordinated                debentures                                       | 88                                                       |   | -                          |
| Short-term                borrowings                                         | 6                                                        |   | -                          |
|  Total                interest expense                                  |  2,632                                              |   |  1,147                |
|  **Net                interest income**                                 |  3,182                                              |   |  2,086                |
|  **Provision                for loan losses**                           |  60                                                 |   | -                          |
|  **Net                interest income after provision for loan losses** | 3,122                                                    |   | 2,086                      |
|  **Non-interest                income**                                 |                                                     |   |                       |
| Service                charges on deposit accounts                           | 346                                                      |   | 177                        |
| Other                service charges and fees                                | 53                                                       |   | 21                         |
| Sale                of mortgage loans                                        | 77                                                       |   | 55                         |
| Lease                income                                                  | 57                                                       |   | 52                         |
| Other                                                                        | 25                                                       |   | 15                         |
|  Total                non-interest income                               |  558                                                |   |  320                  |
| **Non-interest                expenses**                                     |                                                     |   |                       |
| Salaries                and employee benefits                                | 1,557                                                    |   | 886                        |
| Net                occupancy expense                                         | 258                                                      |   | 138                        |
| Equipment                expense                                             | 187                                                      |   | 99                         |
| Advertising                                                                  | 102                                                      |   | 54                         |
| Professional                fees                                             | 99                                                       |   | 59                         |
| Data                processing services                                      | 210                                                      |   | 106                        |
| Franchise                shares and deposit tax                              | 117                                                      |   | 56                         |
| Core                deposit intangible amortization                          | 86                                                       |   | -                          |
| Postage                and office supplies                                   | 64                                                       |   | 30                         |
| Telephone                and other communication                             | 63                                                       |   | 28                         |
| Other                                                                        | 240                                                      |   | 117                        |
|  Total                non-interest expenses                             |  2,983                                              |   |  1,573                |
|  **Income                before income taxes**                          |  697                                                |   |  833                  |
|  **Provision                for income taxes**                          |  225                                                |   |  284                  |
|  **Net                income**                                          |  $                472                               |   |  $                549 |
|  Dividends                declared on preferred stock                   |  128                                                |   |  128                  |
|  Net                income available for common stockholders            | $                344                                     |   | $                421       |
|  **Basic                earnings per share**                            |  $0.17                                              |   |  $0.45                |
|  **Diluted                earnings per share**                          |  $0.17                                              |   |  $0.36                |
|  **See                Notes to Consolidated Financial Statements.**     |                                                     |   |                       |

----

| **Citizens                First Corporation**                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Consolidated                Statements of Changes**** ****in                Stockholders' Equity**                (**Unaudited**)**For                the three months ended March 31** |
|                                                                                                                                                                                           |   |   |   |
|                                                                                                                                                                                           | **2007** |   | **2006** |
|                                                                                                                                                                                           | (In                thousands) |
|                                                                                                                                                                                           |   |   |   |
| Balance                January 1                                                                                                                                                               | $36,489 |   | $19,958 |
| Net                income                                                                                                                                                                      | 472 |   | 549 |
| Issuance                of common stock                                                                                                                                                        | 96 |   | - |
| Stock-based                compensation                                                                                                                                                        | 54 |   | 47 |
| Adoption                of FIN 48                                                                                                                                                              | (71) |   | - |
| Payment                of preferred dividends, $ 512.75 per share for 2007 and                2006                                                                                             | (128) |   | (128) |
| Other                comprehensive income (loss), net of tax                                                                                                                                   | (29) |   | (123) |
| Balance                at end of period                                                                                                                                                        | $36,883 |   | $20,303 |
|                                                                                                                                                                                           |   |   |   |
| **See                Notes to Consolidated Financial Statements.**                                                                                                                             |

| **Citizens                First Corporation**                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------|
| **Consolidated                Statements of Comprehensive Income**(**Unaudited**)**For                the three months ended March 31** |
|                                                                                                                                    |   |   |   |
|                                                                                                                                    | **2007** |   | **2006** |
|                                                                                                                                    | (In                thousands) |
|                                                                                                                                    |   |   |   |
| Net                income                                                                                                               | $                472 |   | $                549 |
| Other                comprehensive income (loss), net of tax:                                                                           |   |   |   |
| Unrealized                gain (loss) on available for sale securities, net                                                             | (29) |   | (123) |
|                                                                                                                                    |   |   |   |
| Comprehensive                income                                                                                                     | $                443 |   | $                426 |
|                                                                                                                                    |   |   |   |
| **See                Notes to Consolidated Financial Statements.**                                                                      |

----

| **Citizens                First Corporation**                                                                                                    |                                    |                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|----------------------|
| **Consolidated                Statements of Cash Flows (Unaudited)**                                                                             |                                    |                 |
| **For                the three months ended March 31**                                                                                           | **2007**                                | **2006**             |
|                                                                                                                                             | (** **In                thousands) |
| **Operating                activities:**                                                                                                         |                                    |
| Net                income                                                                                                                        | $                472                    | $                549 |
| Items                not requiring (providing) cash:                                                                                             |                                    |                 |
| Depreciation                and amortization                                                                                                     | 193                                     | 115                  |
| Stock-based                compensation expense                                                                                                  | 54                                      | 46                   |
| Adoption                of FIN 48                                                                                                                | (71)                                    | -                    |
| Provision                for loan losses                                                                                                         | 60                                      | -                    |
| Amortization                of premiums and discounts on securities                                                                              | (101)                                   | (8)                  |
| Deferred                income taxes                                                                                                             | (30)                                    | (87)                 |
| Sale                of mortgage loans held for sale                                                                                              | 4,874                                   | 3,857                |
| Origination                of mortgage loans for sale                                                                                            | (6,096)                                 | (3,252)              |
| Gains                on sales of loans                                                                                                           | (77)                                    | (55)                 |
| Net                gain on sale of other real estate owned                                                                                       | (1)                                     | -                    |
| FHLB                stock dividends received                                                                                                     | -                                       | (9)                  |
|  Changes                in:                                                                                                                 |                                    |                 |
| Interest                receivable                                                                                                               | 54                                      | (18)                 |
| Other                assets                                                                                                                      | 107                                     | (287)                |
| Interest                payable and other liabilities                                                                                            | (106)                                   | 9                    |
|  Net                cash provided by (used in) operating activities                                                                         |  (668)                             |  860            |
| **Investing                activities:**                                                                                                         |                                    |                 |
| Loan                originations and payments, net                                                                                               | (11,382)                                | (4,262)              |
| Purchases                of premises and equipment                                                                                               | (269)                                   | (485)                |
| Purchase                of available-for-sale securities                                                                                         | (7,836)                                 | (830)                |
| Proceeds                from maturities of available-for-sale securities                                                                         | 13,227                                  | 126                  |
| Proceeds                from sale of other real estate owned                                                                                     | 84                                      | -                    |
| Payment                related to purchase of Commonwealth Mortgageand                Southern KY Land Title, Inc., net of stock issued          | (288)                                   | (246)                |
|  Net                cash used in investing activities                                                                                       |  (6,464)                           |  (5,697)        |
| **Financing                activities:**                                                                                                         |                                    |                 |
| Net                change in demand deposits, money market, NOW, and savings                accounts                                             | 476                                     | (183)                |
| Net                change in time deposits                                                                                                       | 17,009                                  | 8,793                |
| Net                change in other borrowings                                                                                                    | (350)                                   | -                    |
| Proceeds                from FHLB advances                                                                                                       | 2,000                                   | 5,000                |
| Repayment                of FHLB advances                                                                                                        | (4,121)                                 | (5,052)              |
| Net                change in repurchase agreements                                                                                               | (531)                                   | (253)                |
| Dividends                paid on preferred stock                                                                                                 | (128**)**                               | (128)                |
|  Net                cash provided by financing activities                                                                                   |  14,355                            |  8,177          |
|  **Increase                in cash and cash equivalents**                                                                                   |  7,223                             |  3,340          |
|  Cash                and cash equivalents, beginning of year                                                                                |  29,850                            |  15,743         |
|  **Cash                and cash equivalents, end of quarter**                                                                               |  $37,073                           |  $19,083        |
| Supplemental                Cash Flows Information:                                                                                              |                                    |                 |
| Interest                paid                                                                                                                     | $2,439                                  | $1,134               |
| Income                taxes paid                                                                                                                 | $                100                    | $                20  |
| Loans                transferred to other real estate                                                                                            | $                140                    | $                136 |
| Stock                issued for contingent payment related to purchase of Commonwealth                Mortgage and Southern Ky. Land Title, Inc. | $                96                     | -                    |
| Deferred                revenue related to a sale leaseback transaction                                                                          | $                4                      | -                    |
| **See                Notes to Consolidated Financial Statements.**                                                                               |                                    |                 |

----

**Notes      to Unaudited Condensed Consolidated Financial Statements**

**(1)      Basis of Presentation**

** **

**(2)      Adoption of New Accounting Standards **

*Accounting      for Certain Hybrid Financial Instruments-an amendment to FASB Statements No.      133      and 140*

*Accounting      for Purchases of Life Insurance - Determining the Amount That Could Be Realized      in Accordance with FASB Technical Bulletin No. 85-4 (Accounting for Purchases      of      Life Insurance). *

----

***Effect      of newly issued but not yet effective accounting standards -***

*Fair      Value Measurements*

*Accounting      for Deferred Compensation and Postretirement Benefit Aspects of Endorsement      Split-Dollar Life Insurance Arrangements*

*The      Fair Value Option for Financial Assets and Financial Liabilities.*

**(3)      Earnings Per Share**

*Dollars*
*n      Thousands, except per share data*

|                                                                                              | **Quarter                ended March 31, 2007** |                              | **Quarter                ended March 31, 2006** |
|---------------------------------------------------------------------------------------------------|-------------------------------------------------|-----------------------------------|-------------------------------------------------|
|                                                                                              |   **Income**                          | **Weighted****Average****Shares** |  **Per                Share****Amount**    |   |   **Income** | **Weighted-****Average****Shares** |  **Per                Share****Amount** |
| **Basic                earnings per share**                                                       |                                            |                              |                                            |   |   |   |   |
| Net                income                                                                         | $                472                            |                              |                                            |   | $                549 |   |   |
| Less:                Dividends on preferred stock                                                 | (128)                                           |                              |                                            |   | (128) |   |   |
|                                                                                              |                                            |                              |                                            |   |   |   |   |
| Net                income available to common shareholders                                        | 344                                             | 1,982,883                         | $0.17                                           |   | 421 | 938,325 | $0.45 |
|                                                                                              |                                            |                              |                                            |   |   |   |   |
| **Effect                of dilutive securities**                                                  |                                            |                              |                                            |   |   |   |   |
| Convertible                preferred stock                                                        | 128                                             | 568,890                           |                                            |   | 128 | 568,890 |   |
| Stock                options                                                                      | ***-***                                         | 7,012                             |                                            |   | **-** | 31,448 |   |
|                                                                                              |                                            |                              |                                            |   |   |   |   |
| **Diluted                earnings per share**                                                     |                                            |                              |                                            |   |   |   |   |
|                                                                                              |                                            |                              |                                            |   |   |   |   |
| Net                income available to common shareholders and assumed                conversions | $472                                            | 2,558,785                         | $                0.17                           |   | $                549 | 1,538,663 | $0.36 |

----

**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

**Forward-Looking      Statements**

**Results      of Operations**

**Net      Interest Income**

----

| **Average                Consolidated Balance Sheets and Net Interest Analysis*****(Dollars in thousands)*** |
|--------------------------------------------------------------------------------------------------------------|
| **Three                months ended March 31,**                                                              |   | **2007** |   |   | **2006** |   |
|                                                                                                         | **Average****Balance** | **Income**/**Expense** | **Average****Rate** | **Average****Balance** | **Income/****Expense** | **Average****Rate** |
| Earning                assets:                                                                               |   |   |   |   |   |   |
| Federal                funds sold                                                                            | $                21,777 | $                297 | 5.53% | $10,575 | $                115 | 4.43% |
| Available-for-sale                securities (1)                                                             |   |   |   |   |   |   |
| Taxable                                                                                                      | 30,473 | 368 | 4.90% | 11,948 | 115 | 3.90% |
| Nontaxable                (1)                                                                                | 8,760 | 125 | 5.79% | 690 | 10 | 5.83% |
| Federal                Home Loan Bank stock                                                                  | 1,946 | 31 | 6.46% | 616 | 9 | 5.92% |
| Loans,                net (2)                                                                                | 246,296 | 5,035 | 8.29% | 158,595 | 2,988 | 7.64% |
| Total                interest earning assets                                                                 | 309,252 | 5,856 | 7.68% | 182,424 | 3,237 | 7.20% |
| Non-interest                earning assets                                                                   | 33,459 |   |   | 13,725 |   |   |
| **Total                Assets**                                                                              | $                342,711 |   |   | $196,149 |   |   |
|                                                                                                         |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                 |   |   |   |   |   |   |
| Interest-bearing                transaction accounts                                                         | $                88,483 | $                411 | 1.88% | $                50,432 | $                148 | 1.19% |
| Savings                accounts                                                                              | 7,120 | 23 | 1.31% | 3,011 | 8 | 1.02% |
| Time                deposits                                                                                 | 164,461 | 1,974 | 4.87% | 88,807 | 862 | 3.94% |
| Total                interest-bearing deposits                                                               | 260,064 | 2,408 | 3.76% | 142,250 | 1,018 | 2.91% |
| Short-term                Borrowings                                                                         | 326 | 6 | 7.46% | 3 | - | 4.91% |
| Securities                sold under repurchase agreements                                                   | 3,351 | 20 | 2.42% | 3,007 | 7 | 0.94% |
| FHLB                borrowings                                                                               | 9,617 | 110 | 4.63% | 13,884 | 122 | 3.57% |
| Subordinated                debentures                                                                       | 5,000 | 88 | 7.14% | - | - |   |
| Total                interest-bearing liabilities                                                            | 278,358 | 2,632 | 3.83% | 159,144 | 1,147 | 2.92% |
| Non-interest                bearing deposits                                                                 | 25,479 |   |   | 15,334 |   |   |
| Other                liabilities                                                                             | 2,133 |   |   | 1,379 |   |   |
| Total                liabilities                                                                             | 305,970 |   |   | 175,857 |   |   |
| Shareholders’                equity                                                                    | 36,741 |   |   | 20,292 |   |   |
| **Total                Liabilities and Shareholders’ Equity**                                          | $                342,711 |   |   | $196,149 |   |   |
| Net                interest income                                                                           |   | $                3,224 |   |   | $                2,090 |   |
| Net                interest spread (1)                                                                       |   |   | 3.85% |   |   | 4.28% |
| Net                interest margin (1) (3)                                                                   |   |   | 4.23% |   |   | 4.65% |
| Return                on average assets ratio                                                                |   |   | .56% |   |   | 1.14% |
| Return                on average equity ratio                                                                |   |   | 5.21% |   |   | 10.97% |
| Equity                to assets ratio                                                                        |   |   | 10.44% |   |   | 10.77% |
| _______________                                                                                              |   |   |   |   |   |   |

----

**Rate/Volume      Analysis**

|                                                                       | **Three                Months Ended**     |
|----------------------------------------------------------------------------|-------------------------------------------|
| ***(Dollars                in thousands)***                                | **March                31,**              |
|                                                                       | **2007                vs. 2006**          |
|                                                                       | **Variance                Attributed to** |
|                                                                       |                                      | **Rate** |   | **Volume** |   | **Net** |
| Interest-earning                assets:                                    |                                      |   |   |   |   |   |
| Federal                funds sold                                          |                                      | $                60 |   | $                122 |   | $                182 |
| Available-for-sale-securities:                                             |                                      |   |   |   |   |   |
| Taxable                                                                    |                                      | 75 |   | 178 |   | 253 |
| Nontaxable                (1)                                              |                                      | - |   | 115 |   | 115 |
| FHLB                stock                                                  |                                      | 3 |   | 19 |   | 22 |
| Loans,                net                                                  |                                      | 395 |   | 1,652 |   | 2,047 |
| Total                net change in income on earning assets                |                                      | 533 |   | 2,086 |   | 2,619 |
|                                                                       |                                      |   |   |   |   |   |
| Interest-bearing                liabilities:                               |                                      |   |   |   |   |   |
| Interest-bearing                transaction accounts                       |                                      | 151 |   | 112 |   | 263 |
| Savings                accounts                                            |                                      | 4 |   | 11 |   | 15 |
| Time                deposits                                               |                                      | 378 |   | 734 |   | 1,112 |
| Securities                sold under repurchase agreements                 |                                      | 13 |   | 0 |   | 13 |
| FHLB                borrowings                                             |                                      | 25 |   | (37) |   | (12) |
| Notes                payable                                               |                                      | - |   | 6 |   | 6 |
| Subordinated                debentures                                     |                                      | - |   | 88 |   | 88 |
| Total                net change in expense on interest-bearing liabilities |                                      | 571 |   | 914 |   | 1,485 |
|                                                                       |                                      |   |   |   |   |   |
| Net                change in net interest income                           |                                      | $                (38) |   | $                1,172 |   | $1,134 |
|                                                                       |                                      |   |   |   |   |   |
| Percentage                change                                           |                                      | (3.4)% |   | 103.4% |   | 100.0% |

**Provision      for Loan Losses**

**Non-Interest      Income**

----

| *(                Dollars In Thousands)*                        | **March                31, 2007** | **March                31, 2006** | **Increase****(Decrease)** |
|-----------------------------------------------------------------|-----------------------------------|-----------------------------------|----------------------------|
| Service                charges on deposit accounts              | $346                              | $177                              | $169                       |
| Other                service charges and fees                   | 53                                | 21                                | 32                         |
| Gain                on the sale of mortgage loans held for sale | 77                                | 55                                | 22                         |
| Title                premium fees                               | 12                                | 13                                | (1)                        |
| Lease                income                                     | 57                                | 52                                | 5                          |
| Other                                                           | 13                                | 2                                 | 11                         |
|                                                            | $558                              | $320                              | $                238       |

**Non-Interest      Expense**

| *(In                Thousands)*                     | **March                31****,                2007** | **March                31, 2006** | **Increase****(Decrease)** |
|-----------------------------------------------------|------------------------------------------------------|-----------------------------------|----------------------------|
| Salaries                and employee benefits       | $1,557                                               | $886                              | 671                        |
| Net                occupancy expense                | 258                                                  | 138                               | 120                        |
| Equipment                expense                    | 187                                                  | 99                                | 88                         |
| Advertising                                         | 102                                                  | 54                                | 48                         |
| Professional                fees                    | 99                                                   | 59                                | 40                         |
| Data                processing services             | 210                                                  | 106                               | 104                        |
| Franchise                shares and deposit tax     | 117                                                  | 56                                | 61                         |
| Core                deposit intangible amortization | 86                                                   | -                                 | 86                         |
| Postage                and office supplies          | 64                                                   | 30                                | 34                         |
| Telephone                and other communication    | 63                                                   | 28                                | 35                         |
| Other                operating expenses             | 240                                                  | 117                               | 123                        |
|                                                | $2,983                                               | $1,573                            | $1,410                     |

**Income      Taxes**

*Accounting      for Uncertainty in Income Taxes*

----

**Balance      Sheet Review**

**Overview**

**Loans**

| *Dollars                in thousands*      | **March                31,** | **%                of**        | **December                31,** | **%                of**        |
|--------------------------------------------|------------------------------|--------------------------------|---------------------------------|--------------------------------|
|                                       | **2007**                     | **Total                Loans** | **2006**                        | **Total                Loans** |
| Commercial                and agricultural | $71,769                      | 28.62%                         | $                61,112         | 25.51%                         |
| Commercial                real estate      | 99,535                       | 39.69%                         | 97,198                          | 40.57%                         |
| Residential                real estate     | 63,063                       | 25.15%                         | 64,623                          | 26.98%                         |
| Consumer                                   | 16,393                       | 6.54%                          | 16,634                          | 6.94%                          |
|                                       | $250,760                     | 100.00%                        | $239,567                        | 100.00%                        |

----

|                                       |                                                                                                                  |                                                                                                                 |                                                                                                           |                                                                                                            |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| **Loan                Maturities**         |                                                                                                                  |                                                                                                                 |                                                                                                           |                                                                                                            |
| **March                31, 2007**          | **Within                One Year**                                                                                    | **After                One But Within Five Years**                                                                   | **After                Five Years**                                                                            | **Total**                                                                                                       |
| *Dollars                in thousands*      |                                                                                                                  |                                                                                                                 |                                                                                                           |                                                                                                            |
|                                       |                                                                                                                  |                                                                                                                 |                                                                                                           |                                                                                                            |
| Commercial                and agricultural | $                   38,311                                                                             | $                 22,172                                                                                        | $                 11,286                                                                                  | $                  71,769                                                                                  |
| Commercial              real estate        |                               36,400  |                              24,654  |                              38,481 |                              99,535  |
| Residential                real estate     |                      8,853                                                                   |                      9,965                                                                  |                    44,245                                                                            |                    63,063                                                                        |
| Consumer                                   |                     4,574                                                                              |                   10,924                                                                                   |                        895                                                       |                    16,393                                                                             |
| Total                                      | $                 88,138                                                                                         | $                67,715                                                                                              | $                94,907                                                                                        | $250,760                                                                                                        |

|                                               |                                           |                             |
|----------------------------------------------------|------------------------------------------------|----------------------------------|
| **March                31, 2007**                  | **Fixed                Rate**                  | **Variable                Rate** |
| *Dollars                in thousands*              |                                           |                             |
|                                               |                                           |                             |
| Due                within one year                 | $                  36,227            | $                152,110         |
| Due                after one but within five years |                     50,071 | -                                |
| Due                after five years                |                    12,352       | -                                |
| Total                                              | $                 98,650                  | $                152,110         |

***Asset      Quality and the***
* *
***Allowance      for Loan Losses***

|                                                             | **March                31, 2007** | **December                31, 2006** |
|------------------------------------------------------------------|-----------------------------------|--------------------------------------|
| *(Dollars                in Thousands)*                          |                              |                                 |
| Non-performing                loans                              | $                967              | $                1,131               |
| Non-performing                assets                             | 1,073                             | 1,330                                |
| Allowance                for loan losses                         | 3,000                             | 3,128                                |
| Non-performing                assets to total loans              | 0.43%                             | 0.56%                                |
| Non-performing                assets to total assets             | 0.30%                             | 0.39%                                |
| Net                charge-offs to average total loans            | 0.08%                             | .06%                                 |
| Allowance                for loan losses to non-performing loans | 310.24%                           | 276.57%                              |
| Allowance                for loan losses to total loans          | 1.20%                             | 1.31%                                |

----

**Summary      of Loan Loss Experience**

|                                                         | **March                31, 2007** | **March                31, 2006** |
|--------------------------------------------------------------|-----------------------------------|-----------------------------------|
| *(Dollars                in thousands)*                      |                              |                              |
| Balance,                beginning of year                    | $3,128                            | $1,957                            |
| Provision                for loan losses                     | 60                                | -                                 |
| Amounts                charged off:                          |                              |                              |
| Commercial                                                   | (27)                              | (48)                              |
| Commercial                real estate                        | (48)                              | -                                 |
| Residential                real estate                       | (95)                              | -                                 |
| Consumer                                                     | (26)                              | (3)                               |
| Total                loans charged off:                      | (196)                             | (51)                              |
| Recoveries                of amounts previously charged off: |                              |                              |
| Commercial                                                   | 2                                 | -                                 |
| Commercial                real estate                        | -                                 | -                                 |
| Residential                real estate                       | -                                 | -                                 |
| Consumer                                                     | 6                                 | -                                 |
| Total                recoveries                              | 8                                 | -                                 |
| Net                (charge-offs) recoveries                  | (188)                             | (51)                              |
| Balance,                end of period                        | $3,000                            | $1,906                            |

----

----

| **Allocation                of Allowance for Loan Loss** |
|----------------------------------------------------------|
|                                                     |
|                                                     |
|                                                     | **March                31, 2007** | **December                31, 2006** | **March                31, 2006** |
|                                                     |    Amount | %                ofLoans                in Each Category to Total                Loans |    Amount | %                ofLoans                in Each Category to Total Loans |    Amount | %                ofLoans                in Each Category to Total                Loans |
|                                                     | *(Dollars**i**n                thousands)* |
| Residential                real estate                   | $                686 | 25.15% | $690 | 26.98% | $                424 | 28.21% |
| Consumer                and other loans                  | 224 | 6.54% | 272 | 6.94% | 167 | 5.92% |
| Commercial                and agriculture                | 713 | 28.62% | 660 | 25.51% | 391 | 26.24% |
| Commercial                real estate                    | 1,276 | 39.69% | 1,344 | 40.57% | 513 | 39.63% |
| Unallocated                                              | 101 | 0.00% | 162 | 0.00% | 411 | 0.00% |
| Total                allowance for loan losses           | $                3,000 | 100.00% | $                3,128 | 100.00% | $                1,906 | 100.00% |

**Securities**

|                                               | **March                31, 2007**       | **December                31, 2006** |
|----------------------------------------------------|-----------------------------------------|--------------------------------------|
|                                               | *(Dollars                in thousands)* |
|                                               |                                    |                                 |
| U.S.                Government agencies            | $                20,131                 | $                29,495              |
| Mortgage-backed                securities          | 7,535                                   | 4,869                                |
| Municipal                securities                | 9,613                                   | 8,249                                |
| Total                available-for-sale securities | $                37,279                 | $                42,613              |

|                                                 |                          |                          |                          |                   |
|------------------------------------------------------|-------------------------------|-------------------------------|-------------------------------|------------------------|
| **March                31, 2007**                    |                          | **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              | $                8,941        | $                4,492        | $6,988                        | $                -     | $                20,421 | $                20,131 |
| Mortgage-backed                securities:(1)   | 196                           | 5,504                         | 2,011                         | -                      | 7,711 | 7,535 |
| Municipal                securities                  | 151                           | 991                           | 3,722                         | 4,906                  | 9,770 | 9,613 |
| Total                available- for sale -securities | $                9,288   | $                10,987  | $                12,721  | $                4,906 | $                37,902  | $                37,279 |
|                                                 |                          |                          |                          |                   |   |   |
| Percent                of total                      | 24.5%                         | 29.0%                         | 33.6%                         | 12.9%                  | 100.0% |   |
| Weighted                average yield(2)        | 5.17%                         | 4.72%                         | 4.62%                         | 5.58%                  | 4.91% |   |

----

**Deposits**

| **Maturity                of Time Deposit**s                **of                $100,000 or more** |   |                              |                                       |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------------------------------------|
| *Dollars                In Thousands*                                                    |   | **March                31, 2007** | **December                31, 2006**  |
|                                                                                               |   |                              |                                       |
| Three                months or less                                                                |   | $9,633                            | $                6,515                     |
| Over                three through six months                                                       |   | 7,997                             | 9,884                                      |
| Over                six through twelve months                                                      |   | 14,895                            | 17,154                                     |
| Over                one year through three years                                                   |   | 16,394                            | 10,802                                     |
| Over                three years                                                                    |   | 2,928                             | 880                                        |
| Total                                                                                              |   | $                51,847           | $                45,235                    |

**Borrowings      **

*FHLB      Advances.*

| *Dollars                In Thousands* |                             |     |       |
|---------------------------------------|----------------------------------|----------|------------|
| **Type**                              | **Maturity**                     | **Rate** | **Amount** |
| Fixed                                 | May                2, 2007       | 4.19%    | $3,000     |
| Fixed                                 | October                27, 2008  | 4.83%    | 500        |
| Fixed                                 | February                1, 2009  | 5.07%    | 624        |
| Fixed                                 | February                16, 2010 | 5.11%    | 2,000      |
| Fixed                                 | July                1, 2013      | 2.91%    | 824        |
| Fixed                                 | January                1, 2018   | 3.95%    | 179        |
| Fixed                                 | July                1, 2023      | 2.96%    | 106        |
| Variable                              | June                27, 2007     | 5.42%    | 1,000      |
| Variable                              | June                27, 2007     | 5.75%    | 1,000      |
|                                  |                             |     | $9,233     |

*Other      Borrowings. *

----

| *Dollars                in Thousands*                                                                          |                              |
|----------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                           | **March                31, 2007** |
| **Federal                funds purchased and repurchase agreements:**                                          |                              |
| Balance                at period end                                                                           | $3,390                            |
| Weighted                average rate at period end                                                             | 2.63%                             |
| Average                balance during the three months ended March 31, 2007                                    | $3,351                            |
| Weighted                average rate for the three months ending March 31, 2007 during the                year | 2.42%                             |
| Maximum                month-end balance                                                                       | $3,390                            |

**Liquidity**

**Capital      Resources**

----

|                                               | **March                31, 2007** | **December                31, 2006** | **Regulatory                Minimum** |
|----------------------------------------------------|-----------------------------------|--------------------------------------|---------------------------------------|
| **Tier                I leverage ratio**           | 8.88%                             | 11.96%                               | 4.00%                                 |
| **Tier                I risk-based capital ratio** | 11.11%                            | 11.52%                               | 4.00%                                 |
| **Total                risk-based capital ratio**  | 12.25%                            | 12.77%                               | 8.00%                                 |

|                                               |  **March                31,****2007** |  **December                31, 2006** |  **Regulatory                Minimum** | **“Well-capitalized”                Minimum** |
|----------------------------------------------------|--------------------------------------------|--------------------------------------------|---------------------------------------------|-----------------------------------------------------------|
| **Tier                I leverage ratio**           | 8.88%                                      | 12.14%                                     | 4.00%                                       | 5.00%                                                     |
| **Tier                I risk-based capital ratio** | 11.11%                                     | 11.70%                                     | 4.00%                                       | 6.00%                                                     |
| **Total                risk-based capital ratio**  | 12.25%                                     | 12.95%                                     | 8.00%                                       | 10.00%                                                    |

**Quantitative        and Qualitative Disclosures about Market Risk**

----

**Item      3. Controls and Procedures**

----

**Part      II.**

**Item      6. Exhibits **

| 3.3 | Amended                and Restated Bylaws of Citizens First Corporation (incorporated by                reference to Exhibit 3 of the Registrant's Form 8-K filed March 19,                2007). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Articles                of Amendment to Amended and Restated Articles of Incorporation of                Citizens                First Corporation (see Exhibit                3.2). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                        |   | **CITIZENS                FIRST CORPORATION**                       |
|--------|-----------------------------|--------|---------------------------------------------------------------------|
|   |                        |   |                                                                |
|   |                        |   |                                                                |
| Date:  | May                15, 2007 |   | /s/                  Mary D. Cohron                       |
|   |                        |   | Mary                D. Cohron                                       |
|   |                        |   | President                and Chief Executive Officer                |
|   |                        |   | (Principal                Executive Officer)                        |
|   |                        |   |                                                                |
|   |                        |   |                                                                |
|   |                        |   |                                                                |
|   | May                15, 2007 |   | /s/                  Steve Marcum                         |
|   |                        |   | Steve                Marcum                                         |
|   |                        |   | Executive                Vice President and Chief Financial Officer |
|   |                        |   | (Principal                Financial and Accounting Officer)         |

----