SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                         ------------------------------

                                   FORM 10-QSB


[X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

     FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     FOR THE TRANSITION PERIOD FROM ____________ TO ____________

                        COMMISSION FILE NUMBER 333-72371

                            KENTUCKY NATIONAL BANCORP, INC.
------------------------------------------------------------------------------
        (Exact name of Small Business Issuer as specified in its Charter)


INDIANA                                                          61-1345603
----------------------------------                           -------------------
(State or other jurisdiction                                     (IRS Employer
of organization)                                             Identification No.)



1000 NORTH DIXIE AVENUE, ELIZABETHTOWN, KENTUCKY                   42701
------------------------------------------------                 ---------
(Address of principal executive offices)                         (Zip code)

Issuer's telephone number, including area code: (270)737-6000
                                                 -------------


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

           X   Yes                        No
         -----                      -----


     As of June 30, 2001, there were 248,920 shares of the  Registrant's  common
stock, par value $.01 per share, outstanding.


     Transitional Small Business Issuer Disclosure Format (check one):

               Yes                     X   No
         -----                      ------

                                       1
<PAGE>


                         KENTUCKY NATIONAL BANCORP, INC.

                             ELIZABETHTOWN, KENTUCKY


                                      INDEX


                                                                            PAGE
                                                                            ----
PART I.
------

FINANCIAL INFORMATION

Item 1.

Consolidated Statements of Condition as of June 30, 2001
   and December 31, 2000 (Unaudited)                                          3

Consolidated Statements of Income - (Unaudited) for the
   three and six months ended June 30, 2001 and 2000                          4

Consolidated Statements of Cash Flows - (Unaudited)
   for the six months ended June 30, 2001 and 2000                            5

Notes to Consolidated Financial Statements (Unaudited)                        7


Item 2.

Management's Discussion and Analysis of Financial
     Condition and Results of Operations                                      11


PART II.
-------

OTHER INFORMATION

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

Signatures                                                                    16



                                       2
<PAGE>



                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CONDITION
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                            JUNE 30,               DECEMBER 31,
                                                                             2001                     2000
                                                                         -------------             ------------
                               ASSETS

<S>                                                                      <C>                       <C>
Cash and due from banks                                                  $ 1,049,512               $ 1,574,759
Federal funds sold                                                         5,323,000                   304,000
Investment securities:
  Securities available-for-sale                                            2,890,140                 3,305,870
  Securities held-to-maturity, at fair value                                 176,650                   152,300
Loans held for sale                                                          681,730                   258,535
Loans, net                                                                61,869,204                58,079,886
Premises and equipment                                                     1,930,157                 1,924,511
Accrued interest receivable and other assets                                 899,836                   901,432
                                                                         -----------               -----------
     Total assets                                                        $74,820,229               $66,501,293
                                                                         ===========               ===========

                LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposits                                                               $61,515,328               $58,675,405
  Federal Home Loan Bank advances                                          5,000,000                      --
  Obligations under capital leases                                         1,237,135                 1,260,482
  Accrued interest payable and other
    liabilities                                                              766,073                   631,713
                                                                         -----------               -----------
     Total liabilities                                                    68,518,536                60,567,600
                                                                         -----------               -----------

Stockholders' equity:
  Preferred stock, $.01 par value;
    authorized 1,000,000 shares                                                 --                        --
  Common stock, $.01 par value;
    authorized 5,000,000 shares; issued and
    outstanding, 248,920 and 246,440 shares
    at June 30, 2001 and December 31,
    2000, respectively                                                         2,489                     2,464
  Surplus                                                                  5,519,103                 5,441,528
  Retained earnings                                                          750,147                   476,241
  Accumulated other comprehensive income                                      29,954                    13,460
                                                                         -----------               -----------
     Total stockholders' equity                                            6,301,693                 5,933,693
                                                                         -----------               -----------

Commitments and contingent liabilities                                          --                        --
                                                                         -----------               -----------
     Total liabilities and stockholders'
       equity                                                            $74,820,229               $66,501,293
                                                                         ===========               ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       3
<PAGE>


                         KENTUCKY NATIONAL BANCORP, INC.
                        CONSOLIDATED STATEMENTS OF INCOME

            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                            THREE MONTHS ENDED           SIX  MONTHS ENDED
                                                 JUNE 30,                     JUNE 30,
                                          -------------------------    -------------------------
                                             2001          2000             2001         2000
                                          -----------   -----------    -----------   -----------
Interest income:
<S>                                       <C>           <C>            <C>           <C>
  Loans, including fees                   $ 1,533,986   $ 1,253,286    $ 2,979,516   $ 2,410,528
  Securities                                   59,172        61,558        114,625       109,314
  Federal funds sold                           47,907        22,771         70,268        36,328
                                          -----------   -----------    -----------   -----------
     Total interest income                  1,641,065     1,343,615      3,164,409     2,556,170
                                          -----------   -----------    -----------   -----------
Interest expense:
  Deposit accounts                            550,356       487,505      1,119,379       891,396
  Certificates of deposit over $100,000       269,226       207,291        531,717       408,904
  Interest expense - federal funds               --            --             --           1,187
  Interest expense - FHLB advances             63,495          --           98,088          --
  Interest expense - capital lease             32,859        33,379         65,851        66,883
                                          -----------   -----------    -----------   -----------
     Total interest expense                   915,936       728,175      1,815,035     1,368,370
                                          -----------   -----------    -----------   -----------
     Net interest income                      725,129       615,440      1,349,374     1,187,800

Provision for loan losses                      45,500        54,600         90,800       107,172
                                          -----------   -----------    -----------   -----------
     Net interest income after
       provision for loan losses              679,629       560,840      1,258,574     1,080,628
                                          -----------   -----------    -----------   -----------
Other income:
  Service charges and fees                    130,997        87,491        232,266       165,266
  Net gain on sale of loans                    52,434          --           74,712          --
  Credit life and accident insurance            8,485        23,703         12,144        35,247
                                          -----------   -----------    -----------   -----------
                                              191,916       111,194        319,122       200,513
                                          -----------   -----------    -----------   -----------
Other expenses:
  Salaries and employee benefits              287,671       247,544        582,893       491,730
  Net occupancy expense                        37,789        35,950         74,787        70,171
  Advertising                                  23,234        24,757         46,820        60,158
  Data processing                              51,262        47,309         97,592        90,656
  Postage, telephone and supplies              32,452        30,024         66,471        57,645
  Bank franchise tax                           15,929        16,418         39,239        33,148
  Directors fees                               14,924        15,000         32,008        21,020
  Professional services                        32,505        60,436         66,700       121,675
  Other operating expenses                     71,597        58,001        154,080       122,235
                                          -----------   -----------    -----------   -----------
                                              567,363       535,439      1,160,590     1,068,438
                                          -----------   -----------    -----------   -----------

Income before income taxes                    304,182       136,595        417,106       212,703
Income tax expense (benefit)                  102,199      (244,361)       143,199      (244,361)
                                          -----------   -----------    -----------   -----------
Net income                                $   201,983   $   380,956    $   273,907   $   457,064
                                          ===========   ===========    ===========   ===========
Earnings per share
    Basic                                 $      0.81   $      1.56    $      1.10   $      1.89
                                          ===========   ===========    ===========   ===========
    Diluted                               $      0.81   $       n/a    $      1.10   $       n/a
                                          ===========   ===========    ===========   ===========
</TABLE>

                 See notes to consolidated financial statements.


                                       4
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                         SIX MONTHS ENDED
                                                              JUNE 30,
                                                    --------------------------
                                                        2001          2000
                                                    -----------    -----------
<S>                                                 <C>            <C>
Operating activities:
     Net income                                     $   273,907    $   457,064
     Adjustments to reconcile net income to net
              cash provided (used) by operating
              activities:
         FHLB stock dividend                            (10,900)        (7,300)
         Provision for loan losses                       90,800        107,172
         Provision for depreciation, amortization
           and accretion, net                            61,390         52,291
         Incentive stock option compensation             15,600         46,800
         Deferred tax                                    15,053       (244,361)
         Net change in assets and liabilities:
              Loans held for sale                      (423,195)          --
              Accrued interest receivable
               and other assets                         (21,954)      (126,635)
              Accrued interest payable                  196,360        102,026
                                                    -----------    -----------
                  Net cash provided by
                    operating activities                197,061        387,057
                                                    -----------    -----------
Investing activities:
     Activity in available-for-sale securities:
          Maturities, prepayments and calls             500,000           --
          Purchases                                     (48,380)    (1,101,019)
     Activity in held-to-maturity securities:
          Maturities, prepayments and calls                --           27,700
          Purchases                                     (24,350)          --
     Net increase in loans                           (3,880,118)    (6,041,916)
     Purchases of premises and equipment                (67,036)        (9,453)
                                                    -----------    -----------
                  Net cash used in investing
                    activities                       (3,519,884)    (7,124,688)
                                                    -----------    -----------
Financing activities:
     Net increase in deposits                         2,839,923      7,181,546
     Net increase in Federal Home Loan advances       5,000,000           --
     Payments on capital lease obligations              (23,347)       (22,315)
                                                    -----------    -----------
                  Net cash provided by financing
                    activities                        7,816,576      7,181,546
                                                    -----------    -----------
Net increase in cash and cash
  equivalents                                         4,493,753        443,915

Cash and cash equivalents, beginning of period        1,878,759      2,925,188
                                                    -----------    -----------
Cash and cash equivalents, end of period            $ 6,372,512    $ 3,369,103
                                                    ===========    ===========
SUPPLEMENTAL DISCLOSURES:

Cash paid for interest                              $ 1,854,077    $ 1,305,981
                                                    ===========    ===========
Federal Home Loan Bank Stock dividend
   received                                         $    10,900    $     7,300
                                                    ===========    ===========
Total increase (decrease) in unrealized
   gain on securities available-for-sale            $    24,990    $   (36,482)
                                                    ===========    ===========
</TABLE>
                 See notes to consolidated financial statements.


                                       5
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)



NONCASH TRANSACTIONS:
During the six month period ended June 30, 2001, the Company issued 2,480 shares
of common stock in lieu of cash payment for accrued directors' fees for the year
ended  December 31, 2000 in the amount of $62,000 in accordance  with a deferred
compensation plan approved by the stockholders on April 25, 2000.




                                       6
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

     The unaudited  consolidated  financial  statements  include the accounts of
     Kentucky National Bancorp, Inc., and its subsidiary Kentucky National Bank.
     All material intercompany balances and transactions have been eliminated in
     consolidation.

     The accompanying  unaudited consolidated financial statements were prepared
     in  accordance  with  instructions  for Form 10-QSB and  therefore,  do not
     include  all  disclosures  necessary  for a  complete  presentation  of the
     statement of financial condition, statement of income and statement of cash
     flows in conformity with generally accepted accounting principles. However,
     all adjustments (all of which are of a normal recurring  nature) which are,
     in the opinion of management,  necessary for the fair  presentation  of the
     interim  financial  statements have been included.  The statement of income
     for periods  presented is not  necessarily  indicative of the results which
     may be expected for the entire year.

2.   COMPREHENSIVE INCOME

     At June 30, 2001 and December 31, 2000, the Bank held securities classified
     as  available-for-sale,  which have net  unrealized  gains of  $45,384  and
     $20,394,  respectively.  The before and after tax amount and tax expense of
     this  component of  comprehensive  income at June 30, 2001 and December 31,
     2000 is summarized below:
<TABLE>
<CAPTION>
                                                              BEFORE              TAX                  AFTER
                                                                TAX              EXPENSE                TAX
                                                            ---------           ---------            ---------
<S>                                                         <C>                 <C>                  <C>
     JUNE 30, 2001
       Unrealized holding gains                             $  24,990           $   8,497            $  16,493
       Reclassification adjustment
         for gains included in net
         income                                                  --                  --                   --
                                                            ---------           ---------            ---------

                                                            $  24,990           $   8,497            $  16,493
                                                            =========           =========            =========

     DECEMBER 31, 2000
       Unrealized holding gains                             $  33,909           $  11,529            $  22,380
       Reclassification adjustment
         for gains included in net
         income                                                  --                  --                   --
                                                            ---------           ---------            ---------

                                                            $  33,909           $  11,529            $  22,380
                                                            =========           =========            =========
</TABLE>

3. FEDERAL HOME LOAN BANK ADVANCES

     During 1999,  the Bank entered into a blanket  agreement  for advances with
     the Federal  Home Loan Bank  (FHLB).  The Bank had  $5,000,000  in advances
     outstanding  at June 30, 2001 and no advances  outstanding  at December 31,
     2000.  Advances  from FHLB are payable at maturity  with  interest  payable
     monthly, and are summarized as follows:



                                       7
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                   (UNAUDITED)

3. FEDERAL HOME LOAN BANK ADVANCES, CONTINUED
<TABLE>
<CAPTION>
                                                              INTEREST            JUNE 30,       DECEMBER 31,
                                            MATURITY            RATE               2001             2000
                                            --------          --------          ----------       ------------

<S>                                         <C>               <C>               <C>                   <C>
     Long-term Borrowings                   1/19/11           5.44%             $2,000,000             -
                                            1/24/11           4.60%              1,000,000             -
                                            3/09/11           5.22%              1,000,000             -
                                            3/14/11           4.22%              1,000,000             -
                                                                                ----------       ------------
                                                                                $5,000,000             -
                                                                                ==========       ============
</TABLE>

     Mortgage  loans and all FHLB stock are pledged to the FHLB as collateral on
     advances.

4. EARNINGS PER SHARE

     Earnings per share has been  determined  in accordance  with  Statements of
     Financial  Accounting Standards No. 128, "Earnings per Share." Earnings per
     common and common  equivalent share were computed by dividing net income by
     the weighted average number of shares of common stock outstanding.  Diluted
     earnings per share for the six months ended June 30, 2001 is  determined by
     dividing  net  income by the  weighted  average  number of shares of common
     stock  outstanding plus the weighted average number of shares that would be
     issued upon exercise of the dilutive stock-based compensation plan assuming
     proceeds are used to purchase shares pursuant to the treasury stock method.
     Diluted  earnings  per share does not  include  the  effect of  outstanding
     options to purchase  40,000 and 16,000  shares of common  stock in 2001 and
     2000 respectively as their effect is antidilutive.

     The  following  data show the amounts used in computing  earnings per share
     (EPS) and the effect on income and the weighted average number of shares of
     dilutive potential common stock at June 30, 2001 and 2000.
<TABLE>
<CAPTION>
                                                                       JUNE 30,      JUNE 30,
                                                                         2001          2000
                                                                       --------      ---------
<S>                                                                    <C>            <C>
             Income  available to common  stock-  holders used in
             basic and diluted EPS                                     $273,907       $457,064
                                                                       ========       ========

             Weighted  average  number of common  shares  used in
             basic EPS                                                  248,093        242,147
                                                                       ========       ========
             Effect of dilutive securities:
               Stock-based compensation plan                              1,280          na
                                                                       ========       ========

             Weighted   number  of  common  shares  and  dilutive
             potential common stock used in dilutive EPS                249,373          na
                                                                       ========       ========
</TABLE>


                                       8
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                   (UNAUDITED)

5. RECLASSIFICATIONS

     Certain  2000  amounts  have been  reclassified  to  conform  with the 2001
     presentation.

6. LEASE COMMITMENT

     A related party is currently constructing a building addition onto the main
     branch which the Bank will lease under a capital lease arrangement upon its
     completion which is expected to be August 2001. As a result of the addition
     of building and equipment  under capital leases in the aggregate  amount of
     approximately $900,000, the Bank will incur monthly amortization expense of
     approximately  $1,900,  and monthly operating lease expense for land rental
     of approximately  $700. The monthly cash flow  requirement  under the lease
     obligations,  including interest expense, will be approximately $10,500 per
     month.

7. INCOME TAXES

     The Company and the Bank file a consolidated income tax return. The Bank is
     charged or credited the amount equal to the income tax that would have been
     applicable on a separate return basis.

     The components of consolidated  income tax expense (benefit)  applicable to
     continuing  operations for the six months ended June 30, 2001 and 2000 were
     as follows:
<TABLE>
<CAPTION>
                                               JUNE 30,         JUNE 30,
                                                 2001            2000
                                              ---------        ---------
           <S>                                <C>              <C>
           Current                            $156,312         $    -
           Deferred                            (13,113)         (244,361)
                                              ---------        ---------
                                              $143,199         $(244,361)
                                              =========        =========
</TABLE>

     Deferred   income  tax  assets  net  of  deferred  tax   liabilities   were
     approximately $195,100 and $185,900 at June 30, 2001 and December 31, 2000,
     respectively.  Such amounts are included in accrued interest receivable and
     other  assets  in the  accompanying  balance  sheet.  At June 30,  2001 and
     December 31, 2000 deferred tax assets and  liabilities  are composed of the
     following:
<TABLE>
<CAPTION>
                                                                          JUNE 30,        DECEMBER 31,
                                                                            2001              2000
                                                                       ------------       ------------
             <S>                                                       <C>                <C>
             Deferred tax assets:
               Allowance for loan losses                               $    192,200       $   156,900
               Startup costs                                                 26,200            35,500
               Organization costs                                            18,000            25,100
               Stock options                                                 44,200            38,900
                                                                       ------------       -----------
                                                                            280,600           256,400
                                                                       ------------       -----------
             Deferred tax liabilities:
               Federal Home Loan Bank stock                                 (13,500)           (9,800)
               Accumulated depreciation                                     (56,600)          (53,800)
               Available-for-sale securities                                (15,400)           (6,900)
                                                                       ------------       -----------
                                                                            (85,500)          (70,500)
                                                                       ------------       -----------
             Net deferred tax asset                                    $    195,100       $   185,900
                                                                       ============       ===========
</TABLE>
                                       9
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                   (UNAUDITED)



7. INCOME TAXES, CONTINUED

     The provision for federal tax expense  differs from the amount  computed by
     applying the U.S.  federal  income tax rate of 34 percent to income  before
     income taxes as a result of the following:
<TABLE>
<CAPTION>

                                                                         JUNE 30,        JUNE 30,
                                                                           2001            2000
                                                                       ----------       -----------
             <S>                                                       <C>              <C>
             U.S. federal income tax                                   $  141,816       $     -
             Changes from statutory tax:
               Other, net                                                   1,383             -
                                                                       ----------       ----------
             Income tax expense                                        $  143,199       $     -
                                                                       ==========       ==========
</TABLE>



                                       10
<PAGE>

Item 2.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

GENERAL

The following discussion and analysis is intended to assist in understanding the
consolidated financial condition and results of operations of the Company.

FORWARD-LOOKING STATEMENTS

When used in this  discussion  and  elsewhere in this  Quarterly  Report on Form
10-QSB,  the words or phrases  "will likely  result,"  "are  expected  to," will
continue," "is anticipated,"  "estimate,"  "project," or similar expressions are
intended  to  identify  "forward-looking  statements"  within the meaning of the
Private  Securities  Litigation Reform Act of 1995. The Company cautions readers
not to place undue reliance on any such forward-looking statements,  which speak
only as of the date made, and advises  readers that various  factors,  including
regional  and  national  economic  conditions,  substantial  changes in level of
market  interest  rates,  credit  and  other  risks of  lending  and  investment
activities  and  competitive  and  regulator  factors could affect the Company's
financial  performance  and could cause the Company's  actual results for future
periods to differ materially from those anticipated or projected.

The Company does not undertake and specifically disclaims any obligation to
update any forward-looking statements to reflect occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS
ENDED JUNE 30, 2001 AND 2000

NET INCOME. Net income for the quarter ended June 30, 2001 was $202,000 or $0.81
per  diluted  share  compared to a net income of $381,000 or $1.56 per share for
the same  period last year,  a decrease of $179,000 or $0.75 per share.  Year to
date net  income  at June 30,  2001 was  $273,900  or $1.10  per  diluted  share
compared  to net income of  $457,000  or $1.89 per share for the same  period in
2000.

Income  before income taxes for the three and six months ended June 30, 2001 was
$304,200 and $417,100,  respectively,  compared to $136,600 and $212,700 for the
same periods last year, an increase of $167,600 (122.69%) and $204,400 (96.10%),
respectively.  The  increases  in pre-tax  income were due to an increase in net
interest income of $109,700 and $161,600, an increase in other income of $80,700
and  $118,600  and a decrease  in the  provision  for loan  losses of $9,100 and
$16,400. These increases were partially offset by increases in other expenses of
$31,900 and  $92,200.  The overall  decrease in net income for the three and six
months  ended at June 30,  2001  compared  to the same  period last year was due
largely to the  recording of income tax expense of $102,200 and $143,200  during
the 2001  periods as compared to an income tax benefit of $244,000  for the same
periods last year.  During the year ended  December  31, 2000,  the Company used
approximately $320,000 in tax loss carryforwards to offset taxable income.

NET INTEREST INCOME. Net interest income increased $109,700 or 17.8% to $725,100
for the three  months  ended June 30, 2001  compared  to $615,400  for the three
months  ended June 30, 2000.  Year to date net interest  income was $1.3 million
and $1.2 million for the six months ended June 30, 2001 and 2000,  respectively,
an increase of $161,600 or 13.6% between  periods.  This  increase  reflects the
continued  growth in  interest-earning  assets.  Total average  interest-earning
assets for the six months ended June 30, 2001 increased by  approximately  $12.9
million  with an  increase in average  yield of 5 basis  points,  while  average
interest-bearing  liabilities  increased by approximately  $12.1 million with an
increase in average  costs of  approximately  34 basis  points.  The increase in
yield on assets is due to an increase in loan-related  fees for the period ended
June 30, 2001, which is partially  offset by lower market rates  generally.  The
increase  in  the  Bank's  cost  of  funds  reflects  an  increase  in  24-month


                                       11
<PAGE>

certificates of deposits which the Bank marketed  aggressively during the second
and  third  quarters  of  2000  to  fund  the  growing  loan  portfolio.   These
certificates  of deposit bore  interest at rates  between  6.75% to 7.25%.  As a
result of these changes,  the Bank's interest rate spread decreased to 3.20% for
the six months  ended June 30, 2001  compared to 3.49% for the six months  ended
June 30,  2000.  Net  interest  margin  decreased  to 3.95% for the 2001  period
compared to 4.28% for the 2000 period.

PROVISION FOR LOAN LOSSES. The provision for loan losses was $45,500 and $54,600
for the quarters  ended June 30, 2001 and 2000,  respectively.  The year to date
provision for loan losses was $90,800 and $107,200 for the six months ended June
30, 2001 and 2000,  respectively.  The Bank makes  provisions for loan losses in
amounts  deemed  necessary to maintain the  adequacy of the  allowance  for loan
losses.  At June 30, 2001, the Bank's  allowance for loan losses was $697,500 or
1.11% of the gross loan portfolio.

OTHER INCOME. Other income was $191,900 and $111,200 for the quarters ended June
30, 2001 and 2000,  respectively.  Year to date other  income was  $319,100  and
$200,500  for the six months  ended June 30,  2001 and 2000,  respectively.  The
increase  for the  quarter of $80,700 or 72.6% is  reflective  of the  continued
growth of loans and deposits and the net gain on sale of loans from the addition
of the secondary  market loan division in October,  2000.  The Bank's  secondary
market  activities  benefited from a decline in interest rates during 2001 which
triggered a wave of refinancing.

OTHER  EXPENSE.  Other expense was $567,400 and $535,400 for the quarters  ended
June 30, 2001 and 2000, respectively.  Year to date other expense was $1,160,600
and  $1,068,400  for the six months ended June 30, 2001 and 2000,  respectively.
The increase  for the quarter of $32,000 or 6.0% was due  primarily to increases
in salaries and employee benefits of $40,100 for the quarter and $91,000 for the
six-month  period.  The growth in  salaries  and  benefits is the result of bank
growth and the addition of the secondary market loan division in October,  2000.
The  growth in  salaries  and  benefits  was  partially  offset by a decline  in
professional  services  expense as the Bank has sought to reduce its reliance on
outside professionals.

INCOME TAX BENEFIT  (EXPENSE).  Income tax expense was $102,200 and $143,200 for
the three and six  months  ended June 30,  2001,  compared  to a tax  benefit of
$244,400  during the 2000  periods.  The tax  benefit  during  the 2000  periods
related to the reversal of valuation  allowances related to its net deferred tax
assets.  During the year ended December 31, 2000, the Company used approximately
$320,000  in tax loss  carryforwards  to  offset  taxable  income.  The  Company
provides  for both the current  and  deferred  tax  effects of the  transactions
reported in its financial  statements  and  established  deferred tax assets and
liabilities for the temporary  differences  between the financial  reporting and
tax bases of its assets  and  liabilities.  The  Company,  however,  establishes
valuation  allowances  for its net deferred tax assets  unless it is more likely
than not that these net  deferred  tax assets will be  realized.  During the six
months ended June 30, 2000,  the Company had a valuation  allowance  for its net
deferred  tax  assets.  Based on its current  earnings  and other  factors,  the
Company  determined  that it was more  likely  than  not  that it would  realize
certain of its net deferred tax assets and reversed the corresponding  valuation
allowance during the quarter ended June 30, 2000.

COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2001 AND DECEMBER 31, 2000

The Bank continued to experience  strong asset growth during 2001.  Total assets
have increased $8.3 million, or 12.5% to $74.8 million at June 30, 2001 compared
to $66.5  million  at  December  31,  2000.  The  increase  in total  assets was
primarily  attributable to a $4.2 million or 7.2% increase in the loan and loans
held for sale portfolios. Also contributing to the increase in assets was a $5.0
million  increase  in  federal  funds  sold as the Bank has  sought  to  improve
liquidity.  Funding for the Bank's asset growth came  primarily  from  increased
deposits and advances from the Federal Home Loan Bank of Cincinnati  (FHLB).  At
June 30, 2001, deposits totaled $61.5 million, a $2.8 million, or 4.8%, increase
over  deposits at December  31,  2000.  Advances  from FHLB totaled $5.0 million
compared to no advances outstanding at December 31, 2000.


                                       12
<PAGE>
Stockholders'  equity  increased by $368,000 to $6,301,693 at June 30, 2001 from
$5,933,693  at December  31,  2000.  Net income for the period of $273,900 and a
$32,100 increase in unrealized gain or loss on available-for-sale securities and
net surplus from stock  options  accrued are the major  sources of the increase.
The  remaining  increase  of  $62,000  during the  current  period is due to the
issuance  of 2,480  shares of common  stock in lieu of cash  payment for accrued
directors'  fees for the year  ended  December  31,  2000 in  accordance  with a
deferred  compensation  plan  approved by the  stockholders  on April 25,  2000.
Management   believes  that  a  strong  capital  position  is  vital  to  future
profitability  and to  promote  depositor  and  investor  confidence.  The  Bank
continues  to  be  in  compliance   with  all  applicable   regulatory   capital
requirements.

ASSET QUALITY

The following table sets forth information  regarding the Bank's  non-performing
assets at the dates indicated.
<TABLE>
<CAPTION>
                                                                                JUNE 30,     DECEMBER 31,
                                                                                  2001          2000
                                                                                --------     -----------
<S>                                                                             <C>           <C>
         Restructured loans                                                     $   -         $   -
         Non-accrual loans                                                       416,000       225,000
         Accruing loans past due 90 days or more                                    -             -
                                                                                --------      --------
                 Total                                                          $416,000      $225,000
                                                                                ========      ========
</TABLE>

At June 30, 2001,  there were no loans  outstanding  not  reflected in the above
table as to which known  information about possible credit problems of borrowers
caused  management to have serious doubts as to the ability of such borrowers to
comply with present loan repayment terms.

An analysis of the changes in the allowance for loan losses is as follows:
<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED JUNE 30,
                                                                       ----------------------------------
                                                                          2001                     2000
                                                                       ----------              ----------
         <S>                                                           <C>                     <C>
         Balance, beginning of period                                  $  625,556              $  561,944

         Loans charged off                                                (36,562)                (89,123)
         Loan recoveries                                                   17,691                   5,345
                                                                       ----------              ----------
         Net charge-offs                                                  (18,871)                (83,778)

         Provision for loan losses                                         90,800                 107,172
                                                                       ----------              ----------
         Balance, end of period                                        $  697,485              $  585,338
                                                                       ==========              ==========
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES

The Company currently has no operating business other than the Bank and does not
have material  funding needs.  In the future,  the Company may require funds for
dividends  and tax  payments  for  which it will  rely on  dividends  and  other
distributions  from  the  Bank.  The  Bank  is  subject  to  various  regulatory
restrictions on the payment of dividends.

The Bank's  sources of funds for lending  activities and operations are deposits
from its primary  market  area,  funds  raised in its initial  public  offering,
advances from the FHLB of Cincinnati,  principal and interest payments on loans,
interest  received  on  other  investments  and  federal  funds  purchased.  Its
principal  funding  commitments are for the origination of loans, the payment of
maturing  deposits,  principal and interest  payments on advances from FHLB, and
obligations  under  capital  leases for buildings  and  equipment.  Deposits are
considered  a  primary  source  of  funds  supporting  the  Bank's  lending  and
investment activities.
                                       13
<PAGE>

At June 30, 2001,  the Bank's ratio of loans to deposits was 100.6%  compared to
99.4% at December 31, 2000. The loan-to-deposit ratio is used as an indicator of
a bank's ability to originate additional loans and general liquidity. The Bank's
comparatively  high  loan-to-deposit  ratio  reflects  management's  emphasis on
building the loan portfolio and the use of FHLB advances to supplement deposits.
Because  the  Bank's  continued  loan  growth  will  depend on  deposit  growth,
management  expects to place more emphasis on building  liquidity on the balance
sheet and that the loan-to-deposit  ratio will decline. The Bank's strategies in
this regard include the sale of  participations  in loans and the creation of an
investment  securities  portfolio  that can be used as a source of liquidity and
earnings.

Kentucky National Properties,  L.L.C., a limited liability company controlled by
the Company's  directors,  is constructing an addition to the Bank's main office
which is expected to be completed in August,  2001. It is  anticipated  that the
Bank will lease these premises  under a capital lease in an aggregate  amount of
$900,000 and incur  monthly  amortization  expense of  approximately  $1,900 and
monthly  operating lease expense for the land rental of approximately  $700. The
monthly cash flow requirement under the lease  obligations,  including  interest
expense, will be approximately $10,500 per month.

The Bank's most liquid assets are cash and cash  equivalents,  which are cash on
hand,  amounts due from  financial  institutions,  federal  funds sold and money
market  mutual  funds.  The levels of such  assets are  dependent  on the Bank's
operating, financing and investment activities at any given time. The variations
in levels of cash and cash  equivalents  are  influenced  by  deposit  flows and
anticipated future deposit flows.

Cash and cash  equivalents  (cash due from banks,  interest-bearing  deposits in
other  financial  institutions,  and federal  funds sold),  as of June 30, 2001,
totaled $6.4 million  compared to $3.4 million at June 30, 2000. The Bank's cash
flows were provided mainly by financing activities,  including $2.8 million from
net deposit  increases and $5.0 million from FHLB  advances.  During the quarter
ended  June 30,  2001,  the Bank had bonds  called  totaling  $500,000  with the
proceeds invested in federal funds sold.  Operating activities provided $197,100
in cash for the six months ended June 30, 2001 compared to $387,100  provided in
cash for the six months  ended June 30,  2000.  The Bank used cash flows for its
investing  activities  primarily  to fund an  increase  in  gross  loans of $3.9
million.

As a national bank, the Bank is subject to regulatory  capital  requirements  of
the  Office of the  Comptroller  of the  Currency  ("OCC").  In order to be well
capitalized  under OCC  regulations,  the Bank must maintain a leverage ratio of
Tier I Capital to  average  assets of at least 5% and ratios of Tier I and total
capital to risk-weighted assets of at least 6.0% and 10.0% respectively. At June
30, 2001, the Bank satisfied the capital requirements for classification as well
capitalized under OCC regulations.


                                       14
<PAGE>



PART II
                                OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)      The following exhibits are either being filed with or incorporated
              by reference in this quarterly report on Form 10-QSB:

              NUMBER    DESCRIPTION
              ------    ----------

              3.1      Articles of Incorporation *
              3.2      Bylaws *
              4        Form of Common Stock Certificate *
              10.1     Restrictive Stock Transfer Agreement *
              10.2     Organizational Stock Option and Incentive Plan **
              10.3     Lease Agreement Between Kentucky National   Properties,
                       L.L.C and Kentucky National Bank *
              10.4     Kentucky National Bancorp, Inc. 2000 Stock Option and
                       Incentive Plan ***
              10.5     Kentucky National Bancorp, Inc. Director Fee Deferral
                       Plan ****

              -------------
              *    Incorporated by reference from the registrant's  Registration
                   Statement on Form S-4 (File No. 333-72371).
              **   Incorporated by reference from Registrant's Post- Effective
                   Amendment No. 1 to Registration Statement on Form S-8
                   (File No. 333-72371).
              ***  Incorporated by reference from the registrant's Annual Report
                   on Form 10-KSB for the year ended December 31, 1999.
              **** Incorporated by reference from Registrant's  Registration
                   Statement on Form S-8 (File No. 333-41676).


     (b)  During the quarter  ended June 30, 2001,  the Company did not file any
          current reports on Form 8-K.


                                       15
<PAGE>



In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                                               KENTUCKY NATIONAL BANCORP, INC.


Date: August 13, 2001                          By: /s/ Ronald J. Pence
                                                   -----------------------------
                                                   Ronald J. Pence, President
                                                   (Duly Authorized Represen-
                                                   tative and Principal
                                                   Financial Officer)