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

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

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

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

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

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

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

| Class                                     | Outstanding at November 5,    2009 |
|-------------------------------------------|------------------------------------|
| Common      Stock, no par value per share | 1,968,777      shares              |

----

| PART      I – FINANCIAL INFORMATION  |                                                                                                  |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------|
|                                       |                                                                                                  |
| ITEM      1                                | FINANCIAL      STATEMENTS                                                                             | 3 |
|                                       |                                                                                                  |   |
| ITEM      2                                | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS | 17 |
|                                       |                                                                                                  |   |
| ITEM      3                                | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                       | 29 |
|                                       |                                                                                                  |   |
| ITEM      4                                | CONTROLS      AND PROCEDURES                                                                          | 29 |
|                                       |                                                                                                  |   |
| PART      II – FINANCIAL INFORMATION | OTHER      INFORMATION                                                                           |   |
| ITEM  6                          | EXHIBITS                                                                                              | 30 |
|                                       |                                                                                                  |   |
| SIGNATURES                                 | 31                                                                                                    |

----

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

| Citizens      First Corporation                                                                                                                                                                                                                                     |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Balance Sheets (Unaudited)                                                                                                                                                                                                                        |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                | September 30, 2009                                                                                                                                                                   |   | December 31, 2008                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                | (Dollars      in thousands except share data)                                                                                                                                        |
| Assets                                                                                                                                                                                                                                                              |
| Cash      and due from financial institutions                                                                                                                                                                                                                       | $6,095                                                                                                                                                                               |   | $9,248                                                                                                                                                                                                                                                                                           |
| Federal      funds sold                                                                                                                                                                                                                                             | 7,260                                                                                                                                                                                |   | 6,083                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Cash      and cash equivalents                                                                                                                                                                                                                                      | 13,355                                                                                                                                                                               |   | 15,331                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Available      for sale securities                                                                                                                                                                                                                                  | 38,733                                                                                                                                                                               |   | 39,928                                                                                                                                                                                                                                                                                           |
| Loans      held for sale                                                                                                                                                                                                                                            | 2,877                                                                                                                                                                                |   | 553                                                                                                                                                                                                                                                                                              |
| Loans,      net of allowance of $3,777 and $3,816 at September 30, 2009 and December      31, 2008, respectively                                                                                                                                                    |  255,631                                                                                                                                                                        |   | 267,929                                                                                                                                                                                                                                                                                          |
| Premises      and equipment, net                                                                                                                                                                                                                                    | 11,213                                                                                                                                                                               |   | 11,315                                                                                                                                                                                                                                                                                           |
| Bank      owned life insurance                                                                                                                                                                                                                                      | 6,685                                                                                                                                                                                |   | 6,457                                                                                                                                                                                                                                                                                            |
| Federal      Home Loan Bank (FHLB) stock, at cost                                                                                                                                                                                                                   | 2,025                                                                                                                                                                                |   | 2,025                                                                                                                                                                                                                                                                                            |
| Accrued      interest receivable                                                                                                                                                                                                                                    | 2,090                                                                                                                                                                                |   | 2,358                                                                                                                                                                                                                                                                                            |
| Deferred      income taxes                                                                                                                                                                                                                                          | 4,112                                                                                                                                                                                |   | 2,971                                                                                                                                                                                                                                                                                            |
| Goodwill                                                                                                                                                                                                                                                            | 2,575                                                                                                                                                                                |   | 2,575                                                                                                                                                                                                                                                                                            |
| Core      deposit intangible                                                                                                                                                                                                                                        | 1,361                                                                                                                                                                                |   | 1,569                                                                                                                                                                                                                                                                                            |
| Other      assets                                                                                                                                                                                                                                                   | 1,083                                                                                                                                                                                |   | 2,114                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Total      assets                                                                                                                                                                                                                                                   | $341,740                                                                                                                                                                             |   | $355,125                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Liabilities      and Stockholders' Equity                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Liabilities                                                                                                                                                                                                                                                         |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Deposits:                                                                                                                                                                                                                                                           |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Non-interest      bearing                                                                                                                                                                                                                                           | $36,858                                                                                                                                                                              |   | $27,247                                                                                                                                                                                                                                                                                          |
| Savings,      NOW and money market                                                                                                                                                                                                                                  | 65,214                                                                                                                                                                               |   | 69,548                                                                                                                                                                                                                                                                                           |
| Time                                                                                                                                                                                                                                                                | 173,702                                                                                                                                                                              |   | 176,220                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Total      deposits                                                                                                                                                                                                                                                 | 275,774                                                                                                                                                                              |   | 273,015                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Securities      sold under repurchase agreements                                                                                                                                                                                                                    | 1,517                                                                                                                                                                                |   | 8,258                                                                                                                                                                                                                                                                                            |
| FHLB      advances                                                                                                                                                                                                                                                  | 19,500                                                                                                                                                                               |   | 27,500                                                                                                                                                                                                                                                                                           |
| Subordinated      debentures                                                                                                                                                                                                                                        | 5,000                                                                                                                                                                                |   | 5,000                                                                                                                                                                                                                                                                                            |
| Accrued      interest payable                                                                                                                                                                                                                                       | 469                                                                                                                                                                                  |   | 683                                                                                                                                                                                                                                                                                              |
| Other      liabilities                                                                                                                                                                                                                                              | 1,502                                                                                                                                                                                |   | 1,384                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| Total      liabilities                                                                                                                                                                                                                                              | 303,762                                                                                                                                                                              |   | 315,840                                                                                                                                                                                                                                                                                          |
| Stockholders'      Equity:                                                                                                                                                                                                                                          |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |
| 6.5%      cumulative preferred stock, no par value; authorized 250 shares; issued      and outstanding  250 shares at September 30, 2009 and at      December 31, 2008; liquidation preference of $7,659 at September 30, 2009      and December 31, 2008 | 7,659                                                                                                                                                                                |   | 7,659                                                                                                                                                                                                                                                                                            |
| 5.0%      Series A preferred stock, no  par value; authorized 250 shares;      issued and outstanding 250 shares at September 30, 2009 and at December      31, 2008; liquidation preference of $8,779 at September 30, 2009 and      December 31, 2008   | 8,507                                                                                                                                                                                |   | 8,459                                                                                                                                                                                                                                                                                            |
| Common      stock, no par value; authorized 5,000,000 shares; issued and outstanding      1,968,777 shares at September 30, 2009 and  at December 31,      2008                                                                                           |                              27,072 |   |                                                27,058 |
| Accumulated      deficit                                                                                                                                                                                                                                            | (5,036)                                                                                                                                                                              |   | (3,228)                                                                                                                                                                                                                                                                                          |
| Accumulated      other comprehensive loss                                                                                                                                                                                                                           | (224)                                                                                                                                                                                |   | (663)                                                                                                                                                                                                                                                                                            |
| Total      stockholders' equity                                                                                                                                                                                                                                     | 37,978                                                                                                                                                                               |   | 39,285                                                                                                                                                                                                                                                                                           |
| Total      liabilities  and stockholders' equity                                                                                                                                                                                                          | $341,740                                                                                                                                                                             |   | $355,125                                                                                                                                                                                                                                                                                         |
| See      Notes to Consolidated Financial Statements                                                                                                                                                                                                                 |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                             |

----

| Citizens      First Corporation                                          |                                               |   |             |
|--------------------------------------------------------------------------|----------------------------------------------------|--------|------------------|
| Consolidated      Statements of Income (Unaudited)                       |                                               |
| For      the three months ended September 30                             | 2009                                               |   | 2008             |
|                                                                     | (Dollars      in thousands, except per share data) |
| Interest      and dividend income                                        |                                               |   |             |
| Loans                                                                    | $3,969                                             |   | $4,630           |
| Taxable      securities                                                  | 146                                                |   | 291              |
| Non-taxable      securities                                              | 188                                                |   | 189              |
| Federal      funds sold and other                                        | 27                                                 |   | 48               |
| Total      interest and dividend income                                  | 4,330                                              |   | 5,158            |
| Interest      expense                                                    |                                               |   |             |
| Deposits                                                                 | 1,297                                              |   | 2,027            |
| Securities      sold under agreements to repurchase and other borrowings | 13                                                 |   | 82               |
| FHLB      advances                                                       | 147                                                |   | 193              |
| Subordinated      debentures                                             | 29                                                 |   | 57               |
| Total      interest expense                                              | 1,486                                              |   | 2,359            |
| Net      interest income                                                 | 2,844                                              |   | 2,799            |
| Provision      for loan losses                                           | 300                                                |   | 575              |
| Net      interest income after provision for loan losses                 | 2,544                                              |   | 2,224            |
| Non-interest      income                                                 |                                               |   |             |
| Service      charges on deposit accounts                                 | 353                                                |   | 453              |
| Net      gains on sales of mortgage loans                                | 63                                                 |   | 76               |
| Lease      income                                                        | 38                                                 |   | 72               |
| Gain      on sale of investments                                         | -                                                  |   | -                |
| Income      from company-owned life insurance                            | 76                                                 |   | 77               |
| Other      income                                                        | 146                                                |   | 114              |
| Total      non-interest income                                           | 676                                                |   | 792              |
| Non-interest      expenses                                               |                                               |   |             |
| Salaries      and employee benefits                                      | 1,304                                              |   | 1,327            |
| Net      occupancy expense                                               | 336                                                |   | 338              |
| Equipment      expense                                                   | 192                                                |   | 189              |
| Advertising      and public relations                                    | 113                                                |   | 129              |
| Professional      fees                                                   | 120                                                |   | 104              |
| Data      processing services                                            | 179                                                |   | 166              |
| Franchise      shares and deposit tax                                    | 114                                                |   | 116              |
| FDIC      Insurance                                                      | 128                                                |   | 54               |
| Core      deposit intangible amortization                                | 69                                                 |   | 70               |
| Postage      and office supplies                                         | 50                                                 |   | 52               |
| Telephone      and other communication                                   | 49                                                 |   | 62               |
| Other                                                                    | 208                                                |   | 236              |
| Total      non-interest expenses                                         | 2,862                                              |   | 2,843            |
| Income      before income taxes                                          | 358                                                |   | 173              |
| Provision      for income taxes (benefit)                                | 31                                                 |   | (24)             |
| Net      income                                                          | $  327                                   |   | $  197 |
| Dividends      declared and discount accretion on preferred stock        | 256                                                |   | 130              |
| Net      income available for common stockholders                        | $   71                              |   | $  67  |
| Earnings      per common share, basic and diluted                        | $0.03                                              |   | $0.03            |
| See      Notes to Consolidated Financial Statements.                     |                                               |   |             |

----

| Citizens      First Corporation                                          |                                               |   |               |
|--------------------------------------------------------------------------|----------------------------------------------------|--------|--------------------|
| Consolidated      Statements of Operations (Unaudited)                   |                                               |
| For      the nine months ended September 30                              | 2009                                               |   | 2008               |
|                                                                     | (Dollars      in thousands, except per share data) |
| Interest      and dividend income                                        |                                               |   |               |
| Loans                                                                    | $11,835                                            |   | $14,134            |
| Taxable      securities                                                  | 608                                                |   | 875                |
| Non-taxable      securities                                              | 565                                                |   | 550                |
| Federal      funds sold and other                                        | 78                                                 |   | 166                |
| Total      interest and dividend income                                  | 13,086                                             |   | 15,725             |
| Interest      expense                                                    |                                               |   |               |
| Deposits                                                                 | 4,295                                              |   | 6,600              |
| Securities      sold under agreements to repurchase and other borrowings | 96                                                 |   | 109                |
| FHLB      advances                                                       | 491                                                |   | 549                |
| Subordinated      debentures                                             | 103                                                |   | 192                |
| Total      interest expense                                              | 4,985                                              |   | 7,450              |
| Net      interest income                                                 | 8,101                                              |   | 8,275              |
| Provision      for loan losses                                           | 3,500                                              |   | 852                |
| Net      interest income after provision for loan losses                 | 4,601                                              |   | 7,423              |
| Non-interest      income                                                 |                                               |   |               |
| Service      charges on deposit accounts                                 | 994                                                |   | 1,225              |
| Net      gains on sales of mortgage loans                                | 258                                                |   | 214                |
| Lease      income                                                        | 119                                                |   | 177                |
| Gain      on sale of investments                                         | 361                                                |   | 0                  |
| Income      from company-owned life insurance                            | 226                                                |   | 224                |
| Other      income                                                        | 391                                                |   | 329                |
| Total      non-interest income                                           | 2,349                                              |   | 2,169              |
| Non-interest      expenses                                               |                                               |   |               |
| Salaries      and employee benefits                                      | 4,092                                              |   | 4,000              |
| Net      occupancy expense                                               | 1,010                                              |   | 958                |
| Equipment      expense                                                   | 569                                                |   | 577                |
| Advertising      and public relations                                    | 340                                                |   | 360                |
| Professional      fees                                                   | 448                                                |   | 296                |
| Data      processing services                                            | 501                                                |   | 546                |
| Franchise      shares and deposit tax                                    | 365                                                |   | 345                |
| FDIC      Insurance                                                      | 489                                                |   | 145                |
| Core      deposit intangible amortization                                | 207                                                |   | 220                |
| Postage      and office supplies                                         | 165                                                |   | 140                |
| Telephone      and other communication                                   | 149                                                |   | 193                |
| Other                                                                    | 646                                                |   | 610                |
| Total      non-interest expenses                                         | 8,981                                              |   | 8,390              |
| Income      (loss) before income taxes                                   | (2,031)                                            |   | 1,202              |
| Provision      for income taxes (benefit)                                | (987)                                              |   | 167                |
| Net      income (loss)                                                   | $(1,044)                                           |   | $  1,035 |
| Dividends      declared and discount accretion on preferred stock        | 764                                                |   | 389                |
| Net      income (loss) available for common stockholders                 | $(1,808)                                           |   | $  646   |
| Earnings      (loss) per common share, basic and diluted                 | $(0.92)                                            |   | $0.33              |
| Cash      dividend per common share                                      | -                                                  |   | $0.05              |
| See      Notes to Consolidated Financial Statements.                     |                                               |   |               |

----

| Citizens      First Corporation                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of      Changes in Stockholders' Equity      (Unaudited)For      the nine months ended September 30 |
|                                                                                                                             |   |   |   |
|                                                                                                                             | 2009 |   | 2008 |
|                                                                                                                             | (Dollars      in thousands) |
|                                                                                                                             |   |   |   |
| Balance      January 1                                                                                                           | $39,285 |   | $37,296 |
| Net      income (loss)                                                                                                           | (1,044) |   | 1,035 |
| Issuance      of common stock                                                                                                    | - |   | 93 |
| Stock-based      compensation                                                                                                    | 13 |   |      87 |
| Payment      of common dividend, $0.05 per share                                                                                 | - |   | (99) |
| Payment      of preferred dividends, $1,432 and $1,557 per share for 2009 and      2008                                          | (716) |   | (389) |
| Other      comprehensive income (loss), net of tax                                                                               | 440 |   | (883) |
| Balance      at end of period                                                                                                    | $37,978 |   | $37,140 |
|                                                                                                                             |   |   |   |
|                                                                                                                             |
| Consolidated Statements of      Comprehensive Income (Loss) (Unaudited)For      the three months ended September 30              |
|                                                                                                                             |   |   |   |
|                                                                                                                             | 2009 |   | 2008 |
|                                                                                                                             | (Dollars      in thousands) |
|                                                                                                                             |   |   |   |
| Net      income                                                                                                                  | $327 |   | $197 |
| Other      comprehensive income (loss), net of tax:                                                                              |   |   |   |
| Unrealized      gain (loss) on available for sale securities, net                                                                | 776 |   | (431) |
|                                                                                                                             |   |   |   |
| Comprehensive      income (loss)                                                                                                 | $1,103 |   | $(234) |
|                                                                                                                             |   |   |   |
|                                                                                                                             |   |   |   |
| Consolidated Statements of      Comprehensive Income (Loss) (Unaudited)For      the nine months ended September 30               |
|                                                                                                                             |   |   |   |
|                                                                                                                             | 2009 |   | 2008 |
|                                                                                                                             | (Dollars      in thousands) |
|                                                                                                                             |   |   |   |
| Net      income (loss)                                                                                                           | $(1,044) |   | $1,035 |
| Other      comprehensive income (loss), net of tax:                                                                              |   |   |   |
| Unrealized      gain (loss) on available for sale securities, net                                                                | 440 |   | (883) |
|                                                                                                                             |   |   |   |
| Comprehensive      income (loss)                                                                                                 | $(604) |   | $152 |
|                                                                                                                             |   |   |   |

----

| Citizens      First Corporation                                                                                              |                                         |                                          |
|------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-----------------------------------------------|
| Consolidated      Statements of Cash Flows (Unaudited)                                                                       |                                         |                                          |
| For      the nine months ended September 30                                                                                  | 2009                                         | 2008                                          |
|                                                                                                                         | (Dollars in      thousands)                  |
| Operating      activities:                                                                                                   |                                         |
| Net  income      (loss)                                                                                            | $      (1,044)                               | $1,035                                        |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                  |                                         |                                          |
| Depreciation      and amortization                                                                                           | 636                                          | 628                                           |
| Stock-based      compensation expense                                                                                        | 13                                           | 87                                            |
| Provision      for loan losses                                                                                               | 3,500                                        | 852                                           |
| Amortization      of premiums and discounts on securities                                                                    | 82                                           | 46                                            |
| Amortization      of core deposit intangible                                                                                 | 207                                          | 220                                           |
| Deferred      income taxes                                                                                                   | (1,141)                                      | (454)                                         |
| Sale      of mortgage loans held for sale                                                                                    | 19,311                                       | 13,244                                        |
| Origination      of mortgage loans for sale                                                                                  | (21,377)                                     | (12,823)                                      |
| Gain      on the sale of securities available for sale                                                                       | (361)                                        | -                                             |
| Gain      on the sale of property plant and equipment                                                                        | (14)                                         | -                                             |
| Gains      on sales of loans                                                                                                 | (258)                                        | (214)                                         |
| Net      loss on sale of other real estate owned                                                                             | 92                                           | 33                                            |
| FHLB      stock dividends received                                                                                           | -                                            | (79)                                          |
| Changes      in:                                                                                                             |                                         |                                          |
| Interest      receivable                                                                                                     | 268                                          | 346                                           |
| Other      assets                                                                                                            | 406                                          | (417)                                         |
| Interest      payable and other liabilities                                                                                  | (322)                                        | 338                                           |
| Net      cash provided by operating  activities                                                                    | (2)                                          | 2,842                                         |
| Investing      activities:                                                                                                   |                                         |                                          |
| Loan      originations and payments, net                                                                                     | 8,313                                        | (21,447)                                      |
| Purchases      of premises and equipment                                                                                     | (623)                                        | (290)                                         |
| Purchase      of available-for-sale securities                                                                               | (22,092)                                     | (10,538)                                      |
| Proceeds      from maturities of available-for-sale securities                                                               | 11,953                                       | 9,302                                         |
| Proceeds      from sales of available-for-sale securities                                                                    | 12,278                                       | -                                             |
| Proceeds      from sale of other real estate owned                                                                           | 792                                          | 860                                           |
| Proceeds      from disposal of property plant and equipment                                                                  | 103                                          | -                                             |
| Payment      related to purchase of Commonwealth Mortgage and      Southern KY Land Title, Inc., net of stock issued    | -                                            | (278)                                         |
| Net      cash provided by (used in) investing activities                                                                     | 10,724                                       | (22,391)                                      |
| Financing      activities:                                                                                                   |                                         |                                          |
| Net      change in demand deposits, money market, NOW, and savings      accounts                                             | 5,277                                        | (12,714)                                      |
| Net      change in time deposits                                                                                             | (2,518)                                      | 12,013                                        |
| Proceeds      from FHLB advances                                                                                             | 21,500                                       | 17,500                                        |
| Repayment      of FHLB advances                                                                                              | (29,500)                                     | (11,847)                                      |
| Net      change in repurchase agreements                                                                                     | (6,741)                                      | 8,852                                         |
| Dividends      paid on preferred stock                                                                                       | (716)                                        | (389)                                         |
| Dividends      paid on common stock                                                                                          | -                                            | (99)                                          |
| Net      cash provided by (used in) financing activities                                                                     | (12,698)                                     | 13,316                                        |
| Decrease      in cash and cash equivalents                                                                                   | (1,976)                                      | (6,233)                                       |
| Cash      and cash equivalents, beginning of year                                                                            | 15,331                                       | 13,862                                        |
| Cash      and cash equivalents, end of quarter                                                                               | $13,355                                      | $7,629                                        |
| Supplemental      Cash Flows  Information:                                                                         |                                         |                                          |
| Interest      paid                                                                                                           | $5,199                                       | $7,658                                        |
| Income      taxes paid                                                                                                       | $       - | $     50             |
| Loans      transferred to other real estate                                                                                  | $  485                             | $   1,047                      |
| Stock      issued for contingent payment related to purchase of Commonwealth Mortgage      and Southern Ky. Land Title, Inc. | $       - | $     93             |
| Deferred      revenue related to a sale leaseback transaction                                                                | $    12                  | $       12 |
| See      Notes to Consolidated Financial Statements.                                                                         |                                         |                                          |

----

----

----

(3) Stock Option Plans

|   |   |
|--------|--------|

|                                    | 2009     |                                |
|-----------------------------------------|----------|-------------------------------------|
|                                    | Shares   | Weighted-Average      ExercisePrice |   |   |
|                                    |     |                                |   |   |
| Outstanding,      beginning of year     | 139,133  | $15.16                              |   |   |
| Granted                                 | -        | -                                   |   |   |
| Exercised                               | -        | -                                   |   |   |
| Forfeited                               | (40,407) | $14.84                              |   |   |
| Expired                                 | -        | -                                   |   |   |
| Outstanding,      end of period         | 98,726   | $15.31                              |   |   |
| Options      exercisable, end of period | 98,726   | $15.31                              |   |   |

----

|                                                                                 | Quarter      ended September 30, 2009               |                  | Quarter      ended September 30, 2008          |
|--------------------------------------------------------------------------------------|-----------------------------------------------------|-----------------------|------------------------------------------------|
|                                                                                 |   Income                                  | WeightedAverageShares |  Per      ShareAmount                     |   |   Income | Weighted-AverageShares |  Per      ShareAmount |
| Basic      earnings per common share                                                 |                                                |                  |                                           |   |   |   |   |
| Net      income (loss)                                                               | $      327            |                  |                                           |   | $  197 |   |   |
| Less:      Dividends and accretion on   preferredstock                |  (256)                                         |                  |                                           |   |   (130) |   |   |
| Net income (loss) available to common      shareholders                              | $        71 | 1,968,777             | $   0.03                        |   | $    67 | 1,968,677 | $0.03 |
|                                                                                 |                                                |                  |                                           |   |   |   |   |
| Effect      of dilutive securities                                                   |                                                |                  |                                           |   |   |   |   |
| Convertible      preferred stock                                                     | -                                                   | -                     |                                           |   | - | - |   |
| Stock      options                                                                   | -                                                   | -                     |                                           |   | - | - |   |
|     Warrant                                                      | -                                                   | -                     |                                           |   | - | - |   |
| Diluted      earnings per common share                                               |                                                |                  |                                           |   |   |   |   |
|                                                                                 |                                                |                  |                                           |   |   |   |   |
| Net      income (loss) available to common shareholders and assumed      conversions | $       71       | 1,968,777             | $   0.03                        |   | $   67 | 1,968,677 | $0.03 |
|    Dollars in      thousands, except per share data         |
|                                                                                 | Nine      months ended September 30, 2009           |                  | Nine      months ended September 30, 2008 |
|                                                                                 |   Income                                  | WeightedAverageShares |  Per      ShareAmount                     |   |   Income | Weighted-AverageShares |  Per      ShareAmount |
| Basic      earnings per common share                                                 |                                                |                  |                                           |   |   |   |   |
| Net      income (loss)                                                               | $      (1,044)                                      |                  |                                           |   | $1,035 |   |   |
| Less:      Dividends and accretion on   preferredstock                |   (764)                                   |                  |                                           |   | (389) |   |   |
| Net      income (loss) available to common shareholders                              | $      (1,808)                                      | 1,968,777             | $      (0.92)    |   | $      646 | 1,963,677 | $0.33 |
|                                                                                 |                                                |                  |                                           |   |   |   |   |
| Effect      of dilutive securities                                                   |                                                |                  |                                           |   |   |   |   |
| Convertible      preferred stock                                                     | -                                                   | -                     |                                           |   | - | - |   |
| Stock      options                                                                   | -                                                   | -                     |                                           |   | - | - |   |
|     Warrant                                                      | -                                                   | -                     |                                           |   | - | - |   |
| Diluted      earnings per common share                                               |                                                |                  |                                           |   |   |   |   |
|                                                                                 |                                                |                  |                                           |   |   |   |   |
| Net      income (loss) available to common shareholders and assumed      conversions | $      (1,808)                                      | 1,968,777             | $      (0.92)    |   | $      646 | 1,963,677 | $0.33 |

----

|                                    |                          Fair Value Measurements at September 30, 2009,      Using(Dollars      in Thousands) |
|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |
|                                    |  September  30,      2009                                                                                                                                                                                                   | Quoted      Prices in Active Markets for Identical Assets (Level 1) | Significant      Other Observable Inputs (Level 2) | Significant      Unobservable Inputs (Level 3) |
| Carrying      value                     |                                                                                                                                                                                                                                       |   |   |
| Assets:                                 |                                                                                                                                                                                                                                       |   |   |   |
| Securities      available-for-sale      |                                                                                                                                                                                                                                       |   |   |   |
| U.      S. government agencies          | $16,042                                                                                                                                                                                                                                    |   | $16,042 |   |
| State      and municipal                | $19,785                                                                                                                                                                                                                                    |   | $19,785 |   |
| Mortgage-backed securities -residential | $2,206                                                                                                                                                                                                                                     |   | $2,206 |   |
| Trust      preferred security           | $700                                                                                                                                                                                                                                       |   | $700 |   |
|                                    |                                                                                                                                                                                                                                       |   |   |   |
| Total      investment securities        | $38,733                                                                                                                                                                                                                                    | - | $38,733 | - |

----

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

----

|                              | September      30, 2009     | December      31, 2008 |
|-----------------------------------|-----------------------------|------------------------|
|                              | (Dollars      in Thousands) |
|                              |                        |
|                              | Carrying      Amount        | Fair      Value        | Carrying      Amount | Fair      Value |
| Financial      Assets             |                        |                   |   |   |
|                              |                        |                   |   |   |
| Cash      and cash equivalents    | $      13,355               | $  13,355    | $  15,331 | $  15,331 |
| Loans      held for sale          | 2,877                       | 2,877                  | 553 | 553 |
| Loans,      net of allowance      | 253,538                     | 252,188                | 265,954 | 270,146 |
| Accrued      interest receivable  | 2,090                       | 2,090                  | 2,358 | 2,358 |
| Federal      Home Loan Bank stock | 2,025                       | n/a                    | 2,025 | n/a |

| Financial      Liabilities                                  |           |           |           |           |
|-------------------------------------------------------------|----------------|----------------|----------------|----------------|
| Deposits                                                    | $      275,774 | $      276,567 | $      273,015 | $      276,473 |
| Securities      sold under repurchase  agreements | 1,517          | 1,517          | 8,258          | 8,258          |
| FHLB      advances                                          | 19,500         | 20,099         | 27,500         | 27,477         |
| Subordinate      debentures                                 | 5,000          | 2,998          | 5,000          | 2,998          |
| Accrued      interest payable                               | 469            | 469            | 683            | 683            |

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

|                                                | Amortized                   | Gross      | Gross                                        | Fair    |
|-----------------------------------------------------|-----------------------------|------------|----------------------------------------------|---------|
|                                                | Cost                        | Unrealized | Unrealized                                   | Value   |
|                                                |                        | Gains      | Losses                                       |    |
|                                                | (Dollars      in Thousands) |
| September      30, 2009                             |                        |       |                                         |    |
| U.      S. government agencies                      | $  16,016         | $30        | $      (4)                                   | $16,042 |
| State      and municipal                            | 19,065                      | 732        | (12)                                         | 19,785  |
| Mortgage-backed      securities –residential  | 2,131                       | 75         | -                                            | 2,206   |
| Trust      preferred security                       | 1,861                       | -          | (1,161)                                      | 700     |
|                                                |                        |       |                                         |    |
| Total      investment securities                    | $39,073                     | $837       | $(1,177)                                     | $38,733 |
|                                                |                        |       |                                         |    |
| December      31, 2008                              |                        |       |                                         |    |
| U.      S. government agencies                      | $4,470                      | $34        |        $- | $4,504  |
| State      and municipal                            | 19,362                      | 155        | (475)                                        | 19,042  |
| Mortgage-backed      securities – residential | 15,241                      | 342        | (1)                                          | 15,582  |
| Trust      preferred security                       | 1,860                       | -          | (1,060)                                      | 800     |
|                                                |                        |       |                                         |    |
| Total      investment securities                    | $40,933                     | $531       | $(1,536)                                     | $39,928 |

----

|                            | September      30, 2009                                        |
|---------------------------------|----------------------------------------------------------------|
|                            | Available      for Sale                                        |
|                            | (Dollars      in Thousands)                               |
|                            | Amortized Cost                                                 | Fair Value |
|                            |                                                           |   |
| Due      in one year or less    | $          - | $          - |
| Due      from one to five years | 16,675                                                         | 16,781 |
| Due      from five to ten years | 9,003                                                          | 9,333 |
| Due      after ten years        | 11,264                                                         | 10,413 |
| Mortgage-backed                 | 2,131                                                          | 2,206 |
| Total                           | $39,073                                                        | $38,733 |

|                            | Less      than 12 Months | 12      Months or More | Total                      |
|---------------------------------|--------------------------|------------------------|----------------------------|
| Description      ofSecurities   | Fair      Value          | UnrealizedLosses       | Fair      Value            | UnrealizedLosses | Fair      Value | UnrealizedLosses |
| (Dollars      in Thousands)     |                     |                   |                       |   |   |   |
| September      30, 2009         |                     |                   |                       |   |   |   |
| U.S.      government agencies   | $      1,994             | $  (4)       | $    - |  $            - |   $  1,994 |  $   (4) |
| State      and municipal        | 603                      | (12)                   | -                          | - | 603 | (12) |
| Trust      preferred security   | -                        | -                      | 700                        | (1,161) | 700 | (1,161) |
|                            |                     |                   |                       |   |   |   |
| Total      temporarily impaired | $2,597                   | $(16)                  | $700                       | $(1,161) | $3,297 | $(1,177) |

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

----

----

----

----

| Average      Consolidated Balance Sheets and Net Interest Analysis (Dollars in      thousands) |
|------------------------------------------------------------------------------------------------|
| Nine      months ended September 30,                                                           |   | 2009 |   |   | 2008 |   |
|                                                                                           | AverageBalance | Income/Expense | AverageRate | AverageBalance | Income/Expense | AverageRate |
| Earning      assets:                                                                           |   |   |   |   |   |   |
| Federal      funds sold                                                                        | $  4,214 | $      7 | .22% | $  4,400 | $      87 | 2.64% |
| Available-for-sale      securities (1)                                                         |   |   |   |   |   |   |
| Taxable                                                                                        | 22,683 | 608 | 3.58% | 22,946 | 875 | 5.09% |
| Nontaxable      (1)                                                                            | 19,330 | 857 | 5.93% | 18,808 | 833 | 5.92% |
| Federal      Home Loan Bank stock                                                              | 2,025 | 71 | 4.69% | 1,970 | 79 | 5.36% |
| Loans      (2)                                                                                 | 266,296 | 11,835 | 5.94% | 273,970 | 14,134 | 6.89% |
| Total      interest earning assets                                                             | 314,548 | 13,378 | 5.69% | 322,094 | 16,008 | 6.64% |
| Non-interest      earning assets                                                               | 33,447 |   |   | 40,789 |   |   |
| Total      Assets                                                                              |  $ 347,995 |   |   |  $ 362,883 |   |   |
|                                                                                           |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                             |   |   |   |   |   |   |
| Interest-bearing      transaction accounts                                                     | $  60,202 | $  282 | .63% | $  65,974 | $  453 | .92% |
| Savings      accounts                                                                          | 8,915 | 20 | .30% | 7,727 | 31 | .54% |
| Time      deposits                                                                             | 166,759 | 3,993 | 3.20% | 192,820 | 6,117 | 4.24% |
| Total      interest-bearing deposits                                                           | 235,876 | 4,295 | 2.43% | 266,521 | 6,601 | 3.31% |
| Short-term      borrowings                                                                     | 17 | 0 | 0.00% | 353 | 8 | 3.03% |
| Securities      sold under repurchase agreements                                               | 4,572 | 96 | 2.81% | 5,330 | 101 | 2.53% |
| FHLB      borrowings                                                                           | 24,993 | 491 | 2.63% | 17,533 | 549 | 4.18% |
| Subordinated      debentures                                                                   | 5,000 | 103 | 2.75% | 5,000 | 191 | 5.10% |
| Total      interest-bearing liabilities                                                        | 270,458 | 4,985 | 2.46% | 294,737 | 7,450 | 3.38% |
| Non-interest      bearing deposits                                                             | 35,999 |   |   | 27,367 |   |   |
| Other      liabilities                                                                         | 1,867 |   |   | 2,856 |   |   |
| Total      liabilities                                                                         | 308,324 |   |   | 324,960 |   |   |
| Stockholders’      equity                                                                | 39,671 |   |   | 37,923 |   |   |
| Total      Liabilities and Stockholders’   Equity                         | $  347,995 |   |   | $  362,883 |   |   |
| Net      interest income                                                                       |   | $ 8,393 |   |   | $ 8,558 |   |
| Net      interest spread (1)                                                                   |   |   | 3.23% |   |   | 3.26% |
| Net      interest margin  (1) (3)                                                    |   |   | 3.57% |   |   | 3.55% |
| Return      on average assets ratio                                                            |   |   | (.40%) |   |   | .38% |
| Return      on average equity ratio                                                            |   |   | (3.52%) |   |   | 3.65% |
| Average      equity to assets ratio                                                            |   |   | 11.40% |   |   | 10.45% |
| _______________                                                                                |   |   |   |   |   |   |

----

|                                                             | Nine      Months Ended      |
|------------------------------------------------------------------|-----------------------------|
| (Dollars      in thousands)                                      | September      30,          |
|                                                             | 2009      vs. 2008          |
|                                                             | Variance      Attributed to |
|                                                             |                        | Rate |   | Volume |   | Net |
| Interest-earning      assets:                                    |                        |   |   |   |   |   |
| Federal      funds sold                                          |                        | $(76) |   | $   (4) |   | $      (80) |
| Available-for-sale-securities:                                   |                        |   |   |   |   |   |
| Taxable                                                          |                        | (256) |   | (11) |   | (267) |
| Nontaxable      (1)                                              |                        | 1 |   | 23 |   | 24 |
| FHLB      stock                                                  |                        | (9) |   | 1 |   | (8) |
| Loans,      net                                                  |                        | (1,899) |   | (400) |   | (2,299) |
| Total      net change in income on earning assets                |                        | (2,239) |   | (391) |   | (2,630) |
|                                                             |                        |   |   |   |   |   |
| Interest-bearing      liabilities:                               |                        |   |   |   |   |   |
| Interest-bearing      transaction accounts                       |                        | (131) |   | (40) |   | (171) |
| Savings      accounts                                            |                        | (16) |   | 5 |   | (11) |
| Time      deposits                                               |                        | (1,298) |   | (826) |   | (2,124) |
| Securities      sold under repurchase agreements                 |                        | 9 |   | (14) |   | (5) |
| FHLB      borrowings                                             |                        | (291) |   | 233 |   | (58) |
| Short-term      borrowings                                       |                        | 0 |   | (8) |   | (8) |
| Subordinated      debentures                                     |                        | (88) |   | 0 |   | (88) |
| Total      net change in expense on interest-bearing liabilities |                        |  (1,815) |   | (650) |   | (2,465) |
|                                                             |                        |   |   |   |   |   |
| Net      change in net interest income                           |                        | $  (424) |   | $  259 |   | $ (165) |
|                                                             |                        |   |   |   |   |   |
| Percentage      change                                           |                        | (256.97)% |   |  (156.97)% |   | 100.0% |

----

| (      Dollars in thousands)                          | September 30, 2009 | September 30, 2008 |      Increase(Decrease) |
|-------------------------------------------------------|--------------------|--------------------|--------------------------------------------------|
| Service      charges on deposit accounts              | $994               | $1,225             | $(231)                                           |
| Gain      on the sale of mortgage loans held for sale | 258                | 214                | 44                                               |
| Lease      income                                     | 119                | 177                | (58)                                             |
| Gain      on the sale of investments                  | 361                | -                  | 361                                              |
| BOLI      income                                      | 226                | 224                | 2                                                |
| Other      income                                     | 391                | 329                | 62                                               |
|                                                  | $2,349             | $2,169             | $180                                             |

----

| Dollars      in thousands                 | September 30, 2009 | September 30, 2008 | Increase(Decrease) |
|-------------------------------------------|--------------------|--------------------|--------------------|
| Salaries      and employee benefits       | $4,092             | $4,000             | $92                |
| Net      occupancy expense                | 1,010              | 958                | 52                 |
| Equipment      expense                    | 569                | 577                | (8)                |
| Advertising                               | 340                | 360                | (20)               |
| Professional      fees                    | 448                | 296                | 152                |
| Data      processing services             | 501                | 546                | (45)               |
| Franchise      shares and deposit tax     | 365                | 345                | 20                 |
| FDIC      Insurance                       | 489                | 145                | 344                |
| Core      deposit intangible amortization | 207                | 220                | (13)               |
| Postage      and office supplies          | 165                | 140                | 25                 |
| Telephone      and other communication    | 149                | 193                | (44)               |
| Other      operating expenses             | 646                | 610                | 36                 |
|                                      | $8,981             | $8,390             | $591               |

----

| (Dollars      in thousands)      | September 30, |          %      of | December 31, |    %      of |
|----------------------------------|---------------|-----------------------------------------------------------------|--------------|-----------------------------|
|                             | 2009          | Total Loans                                                     | 2008         | Total Loans            |
| Commercial      and agricultural | $74,539       | 28.74%                                                          | $79,248      | 29.16%                      |
| Commercial      real estate      | 102,502       | 39.51%                                                          | 104,043      | 38.29%                      |
| Residential      real estate     | 70,876        | 27.32%                                                          | 74,027       | 27.24%                      |
| Consumer                         | 11,491        | 4.43%                                                           | 14,427       | 5.31%                       |
|                             | $259,408      | 100.00%                                                         | $271,745     | 100.00%                     |

| Loan      Maturities             |                |                               |             |                |
|----------------------------------|---------------------|------------------------------------|------------------|---------------------|
| September 30, 2009               | Within One Year     | After One But Within Five    Years | After Five Years | Total               |
| (Dollars      in thousands)      |                |                               |             |                |
|                             |                |                               |             |                |
| Commercial      and agricultural | $      33,610  | $29,308                            | $11,621     | $      74,539  |
| Commercial      real estate      | 29,318         | 34,498                        | 38,686           | 102,502             |
| Residential      real estate     | 3,918               | 17,354                             | 49,604           | 70,876              |
|  Consumer                   | 2,860               | 8,214                              | 417              | 11,491              |
| Total                            | $69,706             | $89,374                            | $100,328         | $259,408            |

|                                                   | September 30, 2009 | December 31, 2008 |
|--------------------------------------------------------|--------------------|-------------------|
| (Dollars      in thousands)                            |               |              |
| Non-performing      loans                              | $      2,698       | $2,550            |
| Non-performing      assets                             | 3,482              | 3,733             |
| Allowance      for loan losses                         | 3,777              | 3,816             |
| Non-performing      assets to total loans              | 1.34%              | 1.37%             |
| Non-performing      assets to total assets             | 1.02%              | 1.03%             |
| Net      charge-offs to average total loans            | 1.36%              | .48%              |
| Allowance      for loan losses to non-performing loans | 139.90%            | 149.65%           |
| Allowance      for loan losses to total loans          | 1.46%              | 1.40%             |

----

|                                                          | September      30, 2009 | September      30, 2008 |
|---------------------------------------------------------------|-------------------------|-------------------------|
| (Dollars      In thousands)                                   |                    |                    |
| Balance,      beginning of year                               | $3,816                  | $3,194                  |
| Provision      for loan losses                                | 3,500                   | 852                     |
| Amounts      charged off:                                     |                    |                    |
| Commercial                                                    | (2,612)                 | (432)                   |
| Commercial      real estate                                   | (555)                   | (16)                    |
| Residential      real estate                                  | (151)                   | (304)                   |
| Consumer                                                      | (300)                   | (90)                    |
| Total      loans charged off:                                 | (3,618)                 | (842)                   |
| Recoveries      of  amounts previously charged off: |                    |                    |
| Commercial                                                    | 59                      | 13                      |
| Commercial      real estate                                   | -                       | -                       |
| Residential      real estate                                  | 17                      | 13                      |
| Consumer                                                      | 3                       | 16                      |
| Total      recoveries                                         | 79                      | 42                      |
| Net      (charge-offs) recoveries                             | (3,539)                 | (800)                   |
| Balance,      end of period                                   | $3,777                  | $3,246                  |

----

| Allocation      of Allowance for Loan Loss |
|--------------------------------------------|
|                                       | September 30, 2009 | December 31, 2008 | September 30, 2008 |
|                                       |    Amount | %      ofLoans      in Each Category to Total      Loans |    Amount | %      ofLoans      in Each Category to TotalLoans |    Amount | %      ofLoans      in Each Category to Total      Loans |
|                                       | (Dollars in      thousands) |
| Residential      real estate               | $     818 | 27.32% | $       823 | 27.24% | $     900 | 27.18% |
| Consumer      and other loans              | 176 | 4.43% | 340 | 5.31% | 228 | 5.29% |
| Commercial      and agriculture            | 1,781 | 28.74% | 1,641 | 29.16% | 1,162 | 28.98% |
| Commercial      real estate                | 886 | 39.51% | 830 | 38.29% | 678 | 38.55% |
| Unallocated                                | 116 | 0.00% |          182 |     0.00% | 278 | 0.00% |
| Total      allowance for loan losses       | $  3,777 | 100.00% | $    3,816 | 100.00% | $  3,246 | 100.00% |

|                                     | September 30, 2009          | December 31, 2008                                      |
|------------------------------------------|-----------------------------|--------------------------------------------------------|
|                                     | (Dollars      in thousands) |
|                                     |                        |                                                   |
| U.S.      Government agencies            | $  16,042         |      $   4,504 |
| Mortgage-backed      securities          | 2,206                       | 15,582                                                 |
| Municipal      securities                | 19,785                      | 19,042                                                 |
| Trust      preferred security            | 700                         |      800 2,000,249            |
| Total      available-for-sale securities | $ 38,733                    | $   39,928                              |

----

|                                                   |                             |                |                         |                                                     |
|--------------------------------------------------------|----------------------------------|---------------------|------------------------------|----------------------------------------------------------|
| September      30, 2009                                |                             | Over                | Over                         |                                                     |   |   |
| (Dollars      in thousands)                            |                             | One      Year       | Five      Years              | Over                                                     |   |   |
|                                                   | One      Year                    | Through             | Through                      | Ten                                                      | Total | Market |
|                                                   | or Less                          | Five Years          | Ten Years                    | Years                                                    | Maturities | Value |
| U.S.      Government agencies                          | $     - | $  15,019 | $    997 | $         - | $      16,016 | $      16,042 |
| Mortgage-backed      securities:(1)                    | -                                | 2,131               | -                            | -                                                        | 2,131 | 2,206 |
| Municipal      securities                              | -                                | 1,656               | 8,006                        | 9,403                                                    | 19,065 | 19,785 |
| Trust      preferred security                          | -                                | -                   | -                            | 1,861                                                    | 1,861 | 700 |
|   Total      available- for sale -securities | $     - | $  18,806 | $ 9,003                      | $ 11,264                                                 | $ 39,073 | $ 38,733 |
|                                                   |                             |                |                         |                                                     |   |   |
| Percent      of total                                  | 0.0%                             | 48.1%               | 23.1%                        | 28.8%                                                    | 100.0% |   |
| Weighted      average yield(2)                         |                             | 2.39%               | 5.21%                        | 6.01%                                                    | 4.10% |   |

| Maturity of Time      Deposits of      $100,000 or more  |   |                                                          |                                                                |
|---------------------------------------------------------------|--------|---------------------------------------------------------------|---------------------------------------------------------------------|
| (Dollars      in thousands)                    |   | September 30, 2009                                            | December 31, 2008                                              |
|                                                          |   |                                                          |                                                                |
| Three      months or less                                     |   | $9,857                                                        | $9,118                                                              |
| Over      three through six months                            |   | 10,432                                                        | 20,842                                                              |
| Over      six through twelve months                           |   | 30,351                                                        | 16,028                                                              |
| Over      one year through three years                        |   | 21,016                                                        | 20,225                                                              |
| Over      three years through 5 years                         |   | 4,643                                                         | 10,127                                                              |
| Over      five years                                          |   |           - |            - |
| Total                                                         |   | $76,299                                                       | $76,340                                                             |

----

| (Dollars      in thousands) |                   |   |    |
|-----------------------------|------------------------|--------|---------|
| Type                        | Maturity               | Rate   | Amount  |
| Fixed                       | October      22, 2009  | 4.49%  | 2,000   |
| Fixed                       | November      24, 2009 | 0.25%  | 6,000   |
| Fixed                       | November      30, 2009 | 4.00%  | 3,000   |
| Fixed                       | February      16, 2010 | 5.11%  | 2,000   |
| Fixed                       | August      28, 2012   | 4.25%  | 500     |
| Fixed                       | December      24, 2012 | 3.36%  | 2,000   |
| Fixed                       | December      24, 2014 | 3.46%  | 2,000   |
| Fixed                       | February      25, 2015 | 2.85%  | 2,000   |
|                        |                   |   |    |
|                        |                   |   | $19,500 |

| (Dollars      in thousands)                                                                   |                    |
|-----------------------------------------------------------------------------------------------|-------------------------|
|                                                                                          | September      30, 2009 |
|  Federal      funds purchased and repurchase agreements:                                 |                    |
| Balance      at period end                                                                    | $1,517                  |
| Weighted      average rate at period end                                                      | 2.01%                   |
| Average      balance during the nine months ended September 30, 2009                          | $4,589                  |
| Weighted      average rate for the nine months ending September 30, 2009 during the      year | 2.81%                   |
| Maximum      month-end balance                                                                | $6,878                  |

----

|                                 | September 30, 2009 | December 31, 2008 | Regulatory Minimum |
|--------------------------------------|--------------------|-------------------|--------------------|
| Tier      I leverage ratio           | 11.01%             | 11.31%            | 4.00%              |
| Tier      I risk-based capital ratio | 13.05%             | 13.52%            | 4.00%              |
| Total      risk-based capital ratio  | 14.30%             | 14.77%            | 8.00%              |

|                                 | September 30,2009 | December 31, 2008 | Regulatory Minimum | “Well-capitalized”  Minimum |
|--------------------------------------|-------------------|-------------------|--------------------|-----------------------------------------|
| Tier      I leverage ratio           | 9.48%             | 9.68%             | 4.00%              | 5.00%                                   |
| Tier      I risk-based capital ratio | 11.24%            | 11.53%            | 4.00%              | 6.00%                                   |
| Total      risk-based capital ratio  | 12.49%            | 12.78%            | 8.00%              | 10.00%                                  |

----

  Netinterest income would increase at a slower pace in the rising rate environmentdue to the increased cost of liabilities that would reprice during this timeperiod compared to the assets which would not reprice in the sametimeframe.

ITEM4.  Controls and Procedures

----

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

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

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

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

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

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

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

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

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

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

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

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

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

----

|   |                  | CITIZENS      FIRST CORPORATION                           |
|--------|-----------------------|-----------------------------------------------------------|
|   |                  |                                                      |
|   |                  |                                                      |
| Date:  | November      5, 2009 | /s/M. Todd Kanipe                                         |
|   |                  | M.      Todd Kanipe                                       |
|   |                  | President      and Chief Executive Officer                |
|   |                  | (Principal      Executive Officer)                        |
|   |                  |                                                      |
|   |                  |                                                      |
|   |                  |                                                      |
|   | November      5, 2009 | /s/ Steve Marcum                                     |
|   |                  | Steve      Marcum                                         |
|   |                  | Executive      Vice President and Chief Financial Officer |
|   |                  |                                                      |