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, 2002

[ ]  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 of organization)  (IRS Employer 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, 2002, there were 251,400 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, 2002
   and December 31, 2001 (Unaudited)                                         3

Consolidated Statements of Income - (Unaudited) for the
   three and six months ended June 30, 2002 and 2001                         4

Consolidated Statements of Cash Flows - (Unaudited)
   for the six months ended June 30, 2002 and 2001                           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,
                                                                              2002                    2001
                                                                          ------------            -----------
ASSETS
<S>                                                                       <C>                     <C>
Cash and due from banks                                                   $   474,693             $ 2,211,755
Federal funds sold                                                          1,216,000                 788,000
Investment securities available-for-sale                                    4,626,398               3,540,810
Federal Home Loan Bank Stock, at cost                                         380,100                 355,800
Federal Reserve Stock, at cost                                                186,000                 176,650
Loans held for sale                                                           659,756               1,370,740
Loans, net                                                                 71,824,328              64,589,393
Premises and equipment, net                                                 2,983,954               3,031,510
Foreclosed assets                                                              68,898                      --
Accrued interest receivable and other assets                                  930,906                 858,240
                                                                          -----------             -----------

     Total assets                                                         $83,351,033             $76,922,898
                                                                          ===========             ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposits                                                                $66,539,153             $60,186,450
  Federal Home Loan Bank advances                                           7,000,000               7,000,000
  Obligations under capital leases                                          2,086,064               2,110,760
  Accrued interest payable and other
    Liabilities                                                               608,068                 917,778
                                                                          -----------             -----------

     Total liabilities                                                     76,233,285              70,214,988
                                                                          -----------             -----------

Commitments and contingent liabilities                                             --                      --
                                                                          -----------             -----------
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, 251,400 and 248,920 shares
    at June 30, 2002 and December 31, 2001,
    respectively                                                                2,514                   2,489
  Surplus                                                                   5,607,078               5,534,703
  Retained earnings                                                         1,454,782               1,138,946
  Accumulated other comprehensive
    income                                                                     53,374                  31,772
                                                                          -----------             -----------
     Total stockholders' equity                                             7,117,748               6,707,910
                                                                          -----------             -----------
     Total liabilities and stockholders'
       equity                                                             $83,351,033             $76,922,898
                                                                          ===========             ===========
</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, 2002 AND 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED        SIX MONTHS ENDED
                                                   JUNE 30,                JUNE 30,
                                          -----------------------   -----------------------
                                             2002         2001        2002         2001
                                          ----------   ----------   ----------   ----------
<S>                                       <C>          <C>          <C>          <C>
Interest income:
  Loans, including fees                   $1,493,164   $1,533,986   $2,937,344   $2,979,516
  Securities                                  54,111       49,502      106,078       98,752
  Federal funds sold and other income         11,216       57,577       19,465       86,141
                                          ----------   ----------   ----------   ----------
     Total interest income                 1,558,491    1,641,065    3,062,887    3,164,409
                                          ----------   ----------   ----------   ----------
Interest expense:
  Deposit accounts                           391,301      550,356      783,306    1,119,379
  Certificates of deposit over $100,000      157,995      269,226      333,926      531,717
  Interest expense - federal funds             3,184           --        4,980           --
  Interest expense - FHLB advances            75,244       63,495      149,715       98,088
  Interest expense - capital lease            58,493       32,859      117,578       65,851
                                          ----------   ----------   ----------   ----------
     Total interest expense                  686,217      915,936    1,389,505    1,815,035
                                          ----------   ----------   ----------   ----------

     Net interest income                     872,274      725,129    1,673,382    1,349,374

Provision for loan losses                     85,500       45,500      130,500       90,800
                                          ----------   ----------   ----------   ----------
     Net interest income after
       provision for loan losses             786,774      679,629    1,542,882    1,258,574
                                          ----------   ----------   ----------   ----------
Other income:
  Service charges and fees                   110,198      124,922      212,558      223,117
  Net gain on sale of loans                   35,631       44,668       72,212       63,275
  Other income                                26,149       22,326       35,385       32,730
                                          ----------   ----------   ----------   ----------
                                             171,978      191,916      320,155      319,122
                                          ----------   ----------   ----------   ----------
Other expenses:
  Salaries and employee benefits             357,225      287,671      710,984      582,893
  Net occupancy expense                       46,570       37,789       93,694       74,787
  Equipment expense                           45,348       26,433       87,175       51,143
  Advertising                                 36,646       23,234       65,490       46,820
  Data processing                             46,304       51,262       94,995       97,592
  Postage, telephone and supplies             31,844       32,452       63,740       66,471
  Bank franchise tax                          20,657       15,929       41,087       39,239
  Directors fees                              13,923       13,431       27,988       28,807
  Professional services                       35,248       33,998       72,530       69,901
  Other operating expenses                    63,300       45,164      126,968      102,937
                                          ----------   ----------   ----------   ----------
                                             697,065      567,363    1,384,651    1,160,590
                                          ----------   ----------   ----------   ----------
Income before income taxes                   261,687      304,182      478,386      417,106
Income tax expense                            88,785      102,199      162,550      143,199
                                          ----------   ----------   ----------   ----------
Net income                                $  172,902   $  201,983   $  315,836   $  273,907
                                          ==========   ==========   ==========   ==========
Earnings per share
    Basic                                 $     0.69   $     0.81   $     1.26   $     1.10
                                          ==========   ==========   ==========   ==========
    Diluted                               $     0.69   $     0.81   $     1.25   $     1.10
                                          ==========   ==========   ==========   ==========
</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, 2002 AND 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                         SIX MONTHS ENDED
                                                            JUNE 30,
                                                    --------------------------
                                                         2002          2001
                                                    -----------    -----------
<S>                                                 <C>            <C>
Operating activities:
     Net income                                     $   315,836    $   273,907
     Adjustments to reconcile net income to net
              cash provided by operating
              activities:
         FHLB stock dividend                             (8,300)       (10,900)
         Provision for loan losses                      130,500         90,800
         Provision for depreciation, amortization
           and accretion, net                           110,399         61,390
         Incentive stock option compensation             10,400         15,600
         Deferred tax                                    47,529         15,053
         Net change in assets and liabilities:
              Loans held for sale                       710,984       (423,195)
              Accrued interest receivable
               and other assets                        (131,324)       (21,954)
              Accrued interest payable                 (247,710)       196,360
                                                    -----------    -----------
                  Net cash provided by
                    operating activities                938,314        197,061
                                                    -----------    -----------
Investing activities:
     Activity in available-for-sale securities:
          Maturities, prepayments and calls           1,528,199        500,000
          Purchases                                  (2,581,056)       (48,380)
     Activity in held-to-maturity securities:
          Purchases                                     (25,350)       (24,350)
     Net increase in loans                           (7,446,741)    (3,880,118)
     Purchases of premises and equipment                (62,843)       (67,036)
                                                    -----------    -----------
                  Net cash used in investing
                    activities                       (8,587,791)    (3,519,884)
                                                    -----------    -----------
Financing activities:
     Net increase in deposits                         6,352,703      2,839,923
     Net increase in Federal Home Loan Bank
        Advances                                             --      5,000,000
     Payments on capital lease obligations              (24,696)       (23,347)
     Proceeds from sale of foreclosed assets             12,408             --
                                                    -----------    -----------
                  Net cash provided by financing
                    activities                        6,340,415      7,816,576
                                                    -----------    -----------

Net increase (decrease) in cash and cash
  equivalents                                        (1,309,062)     4,493,753

Cash and cash equivalents, beginning of period        2,999,755      1,878,759
                                                    -----------    -----------

Cash and cash equivalents, end of period            $ 1,690,693    $ 6,372,512
                                                    ===========    ===========
</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, 2002 AND 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                          SIX MONTHS ENDED
                                                              JUNE 30,
                                                    --------------------------
                                                         2002          2001
                                                    -----------    -----------
<S>                                                 <C>            <C>
SUPPLEMENTAL DISCLOSURES:

Cash paid for interest                              $1,461,902     $1,854,077
                                                    ==========     ==========

Cash paid for income taxes                          $  497,738     $       --
                                                    ==========     ==========
NONCASH TRANSACTIONS:

Federal Home Loan Bank Stock dividend
   received                                         $    8,300     $   10,900
                                                    ==========     ==========
Total increase in unrealized gain on
   securities available-for-sale                    $   32,731     $   24,990
                                                    ==========     ==========

Loans transferred to foreclosed assets              $  122,662     $       --
                                                    ==========     ==========
Loan to facilitate the sale of foreclosed
    assets                                          $   41,356     $       --
                                                    ==========     ==========
</TABLE>


NONCASH TRANSACTIONS:

During the six month period ended June 30, 2002, the Company issued 2,480 shares
of common stock in lieu of cash payment for accrued directors' fees for the year
ended  December 31, 2001 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, 2002 and December 31, 2001, the Bank held securities classified
     as  available-for-sale,  which have net  unrealized  gains of  $80,869  and
     $48,138,  respectively.  The before and after tax amount and tax expense of
     this  component of  comprehensive  income at June 30, 2002 and December 31,
     2001 is summarized below:
<TABLE>
<CAPTION>
                                                             BEFORE               TAX                 AFTER
                                                              TAX               EXPENSE                TAX
                                                            --------            -------              --------
<S>                                                         <C>                 <C>                  <C>
     JUNE 30, 2002
       Unrealized holding gains                             $ 32,731            $ 11,129             $ 21,602
       Reclassification adjustment
         for gains included in net                                --                  --                   --
         Income
                                                            --------            --------             --------
                                                            $ 32,731            $ 11,129             $ 21,602
                                                            ========            ========             ========
     DECEMBER 31, 2001
       Unrealized holding gains                             $ 27,744            $  9,432             $ 18,312
       Reclassification adjustment
         for gains included in net
         income                                                   --                  --                   --
                                                            --------            --------             --------
                                                            $ 27,744            $  9,432             $ 18,312
                                                            ========            ========             ========
</TABLE>

3.   FEDERAL HOME LOAN BANK ADVANCES

     During 2000,  the Bank entered into a blanket  agreement  for advances with
     the Federal  Home Loan Bank  (FHLB).  The Bank had  $7,000,000  in advances
     outstanding at June 30, 2002 and December 31, 2001.  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                2002                  2001
                  --------          --------            --------             -----------

                  <S>               <C>                <C>                   <C>
                  12/14/02          2.63%              $2,000,000            $2,000,000
                  01/19/11          5.44%               2,000,000             2,000,000
                  01/24/11          4.60%               1,000,000             1,000,000
                  03/09/11          5.22%               1,000,000             1,000,000
                  03/14/11          4.22%               1,000,000             1,000,000
                                                       ----------            ----------
                                                       $7,000,000            $7,000,000
                                                       ==========            ==========
</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, 2002 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.

     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, 2002 and 2001.
<TABLE>
<CAPTION>
                                                                         JUNE 30,                  JUNE 30,
                                                                          2002                      2001
                                                                       -----------               -----------
             <S>                                                       <C>                       <C>
             Income  available to common  stockholders used in
             basic and diluted  EPS                                    $   315,836               $   273,907
                                                                       ===========               ===========

             Weighted  average  number of common  shares  used in
             basic EPS                                                     250,573                   248,093
                                                                       ===========               ===========

             Effect of dilutive securities:
              stock-based compensation plan                                    935                     1,280
                                                                       ===========               ===========

             Weighted   number  of  common  shares  and  dilutive
             potential common stock used in dilutive EPS                   252,335                   249,373
                                                                       ===========               ===========
</TABLE>

                                       8
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                   (UNAUDITED)

5.   RECLASSIFICATIONS

     Certain  2001  amounts  have been  reclassified  to  conform  with the 2002
     presentation.

6.   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, 2002 and 2001 were
     as follows:
<TABLE>
<CAPTION>
                                                  JUNE 30,          JUNE 30,
                                                    2002              2001
                                                  ---------        ---------
                    <S>                            <C>             <C>
                    Current                        $126,464        $156,312
                    Deferred                         36,086         (13,113)
                                                   --------        --------
                                                   $162,550        $143,199
                                                   ========        ========
</TABLE>

     Deferred   income  tax  assets  net  of  deferred  tax   liabilities   were
     approximately $119,300 and $166,800 at June 30, 2002 and December 31, 2001,
     respectively.  Such amounts are included in accrued interest receivable and
     other  assets  in the  accompanying  balance  sheet.  At June 30,  2002 and
     December 31, 2001 deferred tax assets and  liabilities  are composed of the
     following:
<TABLE>
<CAPTION>
                                                                           JUNE 30,             DECEMBER 31,
                                                                            2002                   2001
                                                                         ----------             -----------
             <S>                                                         <C>                     <C>
             Deferred tax assets:
               Allowance for loan losses                                 $ 157,200               $ 186,800
               Startup costs                                                 9,500                  16,900
               Organization costs                                            5,500                  10,900
               Stock options                                                53,000                  49,500
               Capital lease asset                                              --                   2,600
                                                                         ---------               ---------
                                                                           225,200                 266,700
                                                                         ---------               ---------
             Deferred tax liabilities:
               Federal Home Loan Bank stock                                (18,500)                (17,200)
               Accumulated depreciation                                    (59,900)                (65,900)
               Capital lease obligation                                       -                       (400)
               Available-for-sale securities                               (27,500)                (16,400)
                                                                         ---------               ---------
                                                                          (105,900)                (99,900)
                                                                         ---------               ---------
             Net deferred tax asset                                      $ 119,300               $ 166,800
                                                                         =========               =========
</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,
                                                           2002           2001
                                                         --------       --------
<S>                                                      <C>            <C>
U.S. federal income tax                                  $162,651       $141,816
Changes from statutory tax:
  Other, net                                                  101          1,383
                                                         --------       --------
Income tax expense                                       $162,550       $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  regulatory  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, 2002 AND 2001

NET INCOME. Net income for the quarter ended June 30, 2002 was $172,900 or $0.69
per  diluted  share  compared to a net income of $202,000 or $0.81 per share for
the same period last year, a decrease of $29,100 or $0.12 per share.  Net income
for the six months ended June 30, 2002 was  $315,800 or $1.25 per diluted  share
compared to $273,900 or $1.10 per share for the six months  ended June 30, 2001,
an increase of $41,900 or $0.15 per share.

The  decrease in net income for the three  months ended June 30, 2002 was due to
an  increase  in the  provision  for loan loss of  $40,000,  a decrease in other
income  of  $19,900,  and an  increase  in other  expenses  of  $129,700.  These
decreases in income were partially  offset by an increase in net interest income
of  $147,100.  The increase in net income for the six months ended June 30, 2002
was due to an increase  in net  interest  income of $324,000  and an increase in
other income of $1,000.  These  increases were partially  offset by increases in
the provision for loan losses of $39,700 and other expenses of $224,000.

NET INTEREST INCOME. Net interest income increased $147,100 or 20.3% to $872,200
for the three  months  ended June 30, 2002  compared  to $725,100  for the three
months  ended June 30, 2001.  Year to date net interest  income was $1.7 million
and $1.3 million for the six months ended June 30, 2002 and 2001,  respectively,
an increase of $324,000 or 24.0% between  periods.  This  increase  reflects the
continued  growth in  interest-earning  assets.  Total average  interest-earning
assets for the six months ended June 30, 2002  increased by  approximately  $5.4
million  with a decrease  in average  yield of 96 basis  points,  while  average
interest-bearing  liabilities  increased  by  approximately  $3.7 million with a
decrease in average costs of  approximately  169 basis  points.  The declines in
average  yields and costs both reflect a significant  decline in interest  rates
between the  periods as the Federal  Reserve  cut  short-term  interest  rates a
record 11 times.  These  rate cuts had a greater  impact on the  Bank's  cost of
funds because a number of higher rate  certificate  accounts  matured during the
period. As a result,  the Bank's interest rate spread increased to 3.93% for the
six months  ended June 30, 2002  compared to 3.20% for the six months ended June
30, 2001. Net interest margin increased to 4.53% for the 2002 period compared to
3.95% for the 2001 period.
                                       11
<PAGE>
PROVISION FOR LOAN LOSSES. The provision for loan losses was $85,500 and $45,500
for the quarters  ended June 30, 2002 and 2001,  respectively.  The year to date
provision  for loan losses was $130,500 and $90,800 and for the six months ended
June 30, 2002 and 2001, respectively.  The Bank makes provisions for loan losses
in amounts  deemed  necessary to maintain the adequacy of the allowance for loan
losses. Based upon a review of the Bank's loan portfolio, the Bank's recent loss
experience  and  current  economic  conditions,  management  determined  that an
additional  $40,000  should be  charged  to bad debt  expense  during the second
quarter of 2002.  At June 30,  2002,  the Bank's  allowance  for loan losses was
$634,600 or 0.88% of the gross loan portfolio.

OTHER INCOME. Other income was $172,000 and $191,900 for the quarters ended June
30, 2002 and 2001,  respectively.  Year to date other  income was  $320,200  and
$319,100  for the six months  ended June 30,  2002 and 2001,  respectively.  The
decrease  for the quarter of $19,900 or 10.4% is due in part to a  stabilization
of rates during the current quarter and  management's  decision to retain in the
Bank's loan portfolio a portion of the loans  originated by the secondary market
division.

OTHER  EXPENSE.  Other expense was $697,100 and $567,400 for the quarters  ended
June 30, 2002 and 2001, respectively.  Year to date other expense was $1,384,700
and  $1,160,600  for the six months ended June 30, 2002 and 2001,  respectively.
The  increase for the quarter of $129,700 or 22.9% and $224,100 or 19.3% for the
six months  ended June 30, 2002 was due  primarily  to increases in salaries and
employee  benefits of $69,600 for the quarter  and  $128,100  for the  six-month
period.  The growth in  salaries  and  benefits  is the result of normal  salary
increases and bank growth. Net occupancy and equipment expense increased a total
of $27,700 and $54,900 for the three and six month  periods due to the expansion
of  the  Bank's  office  facility  in  September  2001  and  related   equipment
expenditures.

INCOME TAX  EXPENSE.  Income tax expense was $88,800 and  $162,600 for the three
and six months ended June 30, 2002, compared to $102,200 and $143,200 during the
2001 periods.  The decrease in tax expense for the three-month period was due to
lower net income  before  taxes while the increase in income tax expense for the
six-month period was due to the increase in net income before taxes. 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.

COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2002 AND DECEMBER 31, 2001

The Bank continued to experience  steady asset growth during 2002.  Total assets
have increased $6.5 million,  or 8.5% to $83.4 million at June 30, 2002 compared
to $76.9  million  at  December  31,  2001.  The  increase  in total  assets was
primarily  attributable  to a  $7.2  million  or  11.2%  increase  in  the  loan
portfolio.  Also  contributing  to the  increase  in assets  was a $1.1  million
increase in investment  securities as the Bank has sought to improve  liquidity.
This  increase was offset by a $1.3 million  decrease in cash and federal  funds
sold.  Loans  held  for  sale  also  declined  by  $711,000  reflecting  reduced
refinancing  activity as interest rates stabilized and management's  decision to
retain a portion of the loans originated by the secondary market division in the
Bank's loan  portfolio.  Funding for the Bank's asset growth came primarily from
increased  deposits.  At June 30, 2002,  deposits totaled $66.5 million,  a $6.3
million,  or 10.5%,  increase over deposits at December 31, 2001.  Advances from
the Federal Home Loan Bank of  Cincinnati  totaled $7.0 million at June 30, 2002
and December 31, 2001.

Stockholders' equity increased by $409,800 to $7.1 million at June 30, 2002 from
$6.7  million at December 31,  2001.  Net income for the period of $315,800,  an
increase in unrealized gain or loss on available-for-sale  securities of $21,600
and a $10,400  increase in 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, 2001 in

                                       12
<PAGE>

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,
                                                              2002           2001
                                                             --------    ------------
<S>                                                          <C>           <C>
Restructured loans                                           $    0         $    0
Non-accrual loans                                             1,136            644
Accruing loans past due 90 days or more                           0              0
                                                             ------         ------
        Total non-performing loans                            1,136            644

Foreclosed assets                                                69              0
                                                             ------         ------
        Total non-performing assets                          $1,205         $  644
                                                             ======         ======
</TABLE>

The increase in non-accrual loans was primarily attributable to a group of loans
to a family of borrowers whose payment  prospects had  diminished.  The Bank has
taken charge-offs of $112,000 on these loans.

The Bank's foreclosed assets at June 30, 2002 consisted of one real property and
three repossessed vehicles.

At June 30, 2002,  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,
                                                                       ----------------------------------
                                                                          2002                    2001
                                                                       ----------              ----------
         <S>                                                           <C>                     <C>
         Balance, beginning of period                                  $  706,739              $  625,556

         Loans charged off                                               (226,536)                (36,562)
         Loan recoveries                                                   23,850                  17,691
                                                                       ----------              ----------
         Net charge-offs                                                 (202,686)                (18,871)

         Provision for loan losses                                        130,500                  90,800
                                                                       ----------              ----------
         Balance, end of period                                        $  634,553              $  697,485
                                                                       ==========              ==========
</TABLE>

Charge-offs  for the six  months  ended  June 30,  2002  increased  by  $190,000
compared to the same period in 2001. The charge-offs  for 2002 include  $112,000
of  charge-offs  taken on loans to one  family of  borrowers  and an  additional
$40,000 charge-off taken on loans to one borrower. The remainder of the increase
consists of charge-offs taken on several loans. Management determined that these
borrowers  would not have  sufficient  resources  to repay the debt.  Management
believes  that the  increase in  charge-offs  is a result of the  maturing  loan
portfolio and the economic slowdown in 2001.

                                       13
<PAGE>

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.

At June 30, 2002,  the Bank's  ratio of loans to deposits  was 108%  compared to
107% at December 31, 2001. 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  continued  maintenance  of an  investment  securities
portfolio that can be used as a source of liquidity and earnings.

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, 2002,
totaled $1.7 million  compared to $6.4 million at June 30, 2001. The Bank's cash
flows were provided mainly by financing activities,  including $6.4 million from
net deposit increases.  Operating  activities  provided $938,300 in cash for the
six months ended June 30, 2002 compared to $197,100 provided in cash for the six
months  ended  June 30,  2001.  The  Bank  used  cash  flows  for its  investing
activities  primarily  to fund an increase in gross loans of $7.4 million and to
purchase $1.1 million in available-for-sale securities.

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 10.00%  respectively.  At
June 30, 2002, 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 *****
           99.1     Certification under Section 906 of Sarbanes-Oxley Act of
                    2002.
                    _____________
                    *     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  Registrant's Annual
                          Report on Form  10-KSB  for the year ended
                          December 31, 2001
                    ****  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, 2002,  the Company did not file any
          current reports on Form 8-K.

                                       15
<PAGE>
                                   SIGNATURES


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, 2002              By: /s/ Ronald J. Pence
                                       -----------------------------------
                                       Ronald J. Pence, President
                                       (Duly Authorized Represen-
                                       tative and Principal
                                       Financial Officer)



                                       16