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 SEPTEMBER 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 September  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 September 30, 2002
   and December 31, 2001 (Unaudited)                                        3

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

Consolidated Statements of Cash Flows - (Unaudited)
   for the nine months ended September 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

Item 3.

Controls and Procedures                                                     15

PART II.
--------

OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K                                  16

Signatures and Certifications                                               17


                                       2
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CONDITION
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                          SEPTEMBER 30,            DECEMBER 31,
                                                                              2002                     2001
                                                                          -----------              -----------
<S>                                                                       <C>                      <C>
ASSETS

Cash and due from banks                                                   $ 2,247,831              $ 2,211,755
Federal funds sold                                                          3,265,000                  788,000
Investment securities available-for-sale                                    4,573,433                3,540,810
Federal Home Loan Bank Stock, at cost                                         384,600                  355,800
Federal Reserve Stock, at cost                                                186,000                  176,650
Loans held for sale                                                         1,892,057                1,370,740
Loans, net                                                                 74,011,815               64,589,393
Premises and equipment, net                                                 2,953,947                3,031,510
Foreclosed assets                                                             139,515                       --
Accrued interest receivable and other assets                                1,036,000                  858,240
                                                                          -----------              -----------

     Total assets                                                         $90,690,198              $76,922,898
                                                                          ===========              ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposits                                                                $73,532,130              $60,186,450
  Federal Home Loan Bank advances                                           7,000,000                7,000,000
  Obligations under capital leases                                          2,073,268                2,110,760
  Accrued interest payable and other
    liabilities                                                               713,450                  917,778
                                                                          -----------              -----------

     Total liabilities                                                     83,318,848               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 September 30, 2002 and December 31,
    2001, respectively                                                          2,514                    2,489
  Surplus                                                                   5,607,078                5,534,703
  Retained earnings                                                         1,671,286                1,138,946
  Accumulated other comprehensive
    income                                                                     90,472                   31,772
                                                                          -----------              -----------
     Total stockholders' equity                                             7,371,350                6,707,910
                                                                          -----------              -----------
     Total liabilities and stockholders'
       equity                                                             $90,690,198              $76,922,898
                                                                          ===========              ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       3
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.
                        CONSOLIDATED STATEMENTS OF INCOME

         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED        NINE MONTHS ENDED
                                                SEPTEMBER 30,            SEPTEMBER 30,
                                          -----------------------   -----------------------
                                             2002         2001        2002            2001
                                          ----------   ----------   ----------   ----------
<S>                                       <C>          <C>          <C>          <C>
Interest income:
  Loans, including fees                   $1,560,584   $1,476,969   $4,497,928   $4,456,485
  Securities                                  55,633       47,693      161,711      146,445
  Federal funds sold                          13,248       52,145       32,713      138,286
                                          ----------   ----------   ----------   ----------
     Total interest income                 1,629,465    1,576,807    4,692,352    4,741,216
                                          ----------   ----------   ----------   ----------
Interest expense:
  Deposit accounts                           380,735      525,048    1,164,041    1,644,427
  Certificates of deposit over $100,000      171,211      250,691      505,137      782,408
  Interest expense - federal funds               130           --        5,110           --
  Interest expense - FHLB advances            76,070       61,447      225,785      159,535
  Interest expense - capital lease            58,342       32,725      175,920       98,576
                                          ----------   ----------   ----------   ----------
     Total interest expense                  686,488      869,911    2,075,993    2,684,946
                                          ----------   ----------   ----------   ----------
     Net interest income                     942,977      706,896    2,616,359    2,056,270

Provision for loan losses                     68,750       46,000      199,250      136,800
                                          ----------   ----------   ----------   ----------
     Net interest income after
       provision for loan losses             874,227      660,896    2,417,109    1,919,470
                                          ----------   ----------   ----------   ----------
Other income:
  Service charges and fees                   113,887      137,023      326,445      360,140
  Net gain on sale of loans                   48,972       37,089      121,184      100,364
  Net gain on sale of investments              9,372           --        9,372           --
  Other income                                 6,854       23,693       42,239       56,423
                                          ----------   ----------   ----------   ----------
                                             179,085      197,805      499,240      516,927
                                          ----------   ----------   ----------   ----------
Other expenses:
  Salaries and employee benefits             360,771      315,671    1,071,755      898,564
  Net occupancy expense                       48,853       46,679      142,547      121,466
  Equipment expense                           48,171       30,729      135,346       81,872
  Advertising                                 27,694       25,953       93,184       72,773
  Data processing                             56,558       56,266      151,553      153,858
  Postage, telephone and supplies             31,192       34,465       94,932      100,936
  Bank franchise tax                          20,884       20,148       61,971       59,387
  Directors fees                              14,076       13,579       42,064       42,386
  Professional services                       36,574       29,659      109,104       99,560
  Other operating expenses                    78,992       56,563      205,960      159,500
                                          ----------   ----------   ----------   ----------
                                             723,765      629,712    2,108,416    1,790,302
                                          ----------   ----------   ----------   ----------
Income before income taxes                   329,547      228,989      807,933      646,095
Income tax expense                           113,043       76,443      275,593      219,642
                                          ----------   ----------   ----------   ----------
Net income                                $  216,504   $  152,546   $  532,340   $  426,453
                                          ==========   ==========   ==========   ==========
Earnings per share
    Basic                                 $     0.86   $     0.61   $     2.12   $     1.72
                                          ==========   ==========   ==========   ==========
    Diluted                               $     0.86   $     0.61   $     2.11   $     1.70
                                          ==========   ==========   ==========   ==========
</TABLE>

                 See notes to consolidated financial statements.

                                       4
<PAGE>
                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                  NINE MONTHS ENDED
                                                                    SEPTEMBER 30,
                                                            ----------------------------
                                                                2002            2001
                                                            ------------   -------------
<S>                                                         <C>            <C>
Operating activities:
     Net income                                             $    532,340   $   426,453
     Adjustments to reconcile net income to net
              cash provided (used) by operating
              activities:
         FHLB stock dividend                                     (12,800)      (16,900)
         Provision for loan losses                               199,250       136,800
         Provision for depreciation, amortization
           and accretion, net                                    170,407        98,490
         Incentive stock option compensation                      10,400        23,400
         Deferred tax                                             44,904         2,855
         Change in assets and liabilities:
         Loans held for sale                                    (521,317)     (202,484)
              Accrued interest receivable
               and other assets                                 (252,903)      (49,830)
              Accrued interest payable                          (142,328)      303,494
                                                            ------------   -----------
                  Net cash provided by
                    operating activities                          27,953       722,278
                                                            ------------   -----------
Investing activities:
     Activity in available-for-sale securities:
          Maturities, prepayments and calls                    1,637,166            --
          Purchases                                           (2,580,850)      (48,448)
     Activity in held-to-maturity securities:
          Purchases                                              (25,350)      (24,350)
     Net increase in loans                                    (9,774,455)   (4,850,916)
     Purchases of premises and equipment                         (92,844)     (300,455)
                                                            ------------   -----------
                  Net cash used in investing
                    activities                               (10,836,333)   (5,224,169)
                                                            ------------   -----------
Financing activities:
     Net increase in deposits                                 13,345,680     2,386,907
     Payments on capital lease obligations                       (37,492)      (35,221)
     Proceeds from sale of foreclosed assets                      13,268            --
     Net increase in FHLB advances                                    --     5,000,000
                                                            ------------   -----------
                  Net cash provided by financing
                    activities                                13,321,456     7,351,686
                                                            ------------   -----------
Net increase in cash and cash
  equivalents                                                  2,513,076     2,849,795

Cash and cash equivalents, beginning of period                 2,999,755     1,878,759
                                                            ------------   -----------
Cash and cash equivalents, end of period                    $  5,512,831   $ 4,728,554
                                                            ============   ===========
</TABLE>
                 See notes to consolidated financial statements.

                                       5
<PAGE>
                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                               NINE MONTHS ENDED
                                                 SEPTEMBER 30,
                                            -----------------------
                                               2002         2001
                                            ----------   ----------
<S>                                         <C>          <C>
SUPPLEMENTAL DISCLOSURES:

Cash paid for interest                      $2,179,780   $2,721,436
                                            ==========   ==========
Cash paid for income taxes                  $  581,668   $       --
                                            ==========   ==========
NONCASH TRANSACTIONS:

Federal Home Loan Bank stock dividend
   received                                 $   12,800   $   16,900
                                            ==========   ==========
Total increase in unrealized gain on
   securities available-for-sale            $   88,940   $   52,317
                                            ==========   ==========
Loans transferred to foreclosed assets      $  240,910   $       --
                                            ==========   ==========
Loan to facilitate the sale of foreclosed
   assets                                   $   88,127   $       --
                                            ==========   ==========
</TABLE>

NONCASH TRANSACTIONS:
During the nine month period ended  September 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  September  30, 2002 and December  31,  2001,  the Bank held  securities
     classified  as  available-for-sale,  which  have  net  unrealized  gains of
     $137,078 and $48,138, respectively. The before and after tax amount and tax
     expense of this component of comprehensive income at September 30, 2002 and
     December 31, 2001 is summarized below:
<TABLE>
<CAPTION>
                                                             BEFORE               TAX                 AFTER
                                                              TAX               EXPENSE                TAX
                                                            --------            --------             --------
<S>                                                         <C>                 <C>                  <C>
     SEPTEMBER 30, 2002
       Unrealized holding gains                             $ 98,312            $ 33,426             $ 64,886
       Reclassification adjustment
         for gains included in net
         income                                               (9,372)             (3,186)              (6,186)
                                                            --------            --------             --------
                                                            $ 88,940            $ 30,240             $ 58,700
                                                            ========            ========             ========
     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 September 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           SEPTEMBER 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  nine  months  ended  September  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 September 30, 2002 and 2001.
<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30,             SEPTEMBER 30,
                                                                           2002                      2001
                                                                       ------------              -------------
<S>                                                                    <C>                       <C>
             Income  available to common  stockholders used in
               basic and diluted  EPS                                  $   532,340               $   426,453
                                                                       ===========               ===========

             Weighted  average  number of common  shares  used in
               basic EPS                                                   250,849                   248,300
                                                                       ===========               ===========

             Effect of dilutive securities:
               stock-based compensation plan                                 1,557                     1,884
                                                                       ===========               ===========

             Weighted   number  of  common  shares  and  dilutive
               potential common stock used in dilutive EPS                 252,957                   250,184
                                                                       ===========               ===========
</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 nine months ended September 30, 2002 and 2001
     were as follows:
<TABLE>
<CAPTION>
                                               SEPTEMBER 30,         SEPTEMBER 30,
                                                   2002                  2001
                                                ---------             ---------
               <S>                              <C>                   <C>
               Current                          $ 261,200             $ 242,500
               Deferred                            14,400               (22,900)
                                                ---------             ---------
                                                $ 275,600             $ 219,600
                                                =========             =========
</TABLE>

     Deferred   income  tax  assets  net  of  deferred  tax   liabilities   were
     approximately  $121,900 and $166,800 at September 30, 2002 and December 31,
     2001,   respectively.   Such  amounts  are  included  in  accrued  interest
     receivable and other assets in the accompanying balance sheet. At September
     30, 2002 and December  31, 2001  deferred  tax assets and  liabilities  are
     composed of the following:
<TABLE>
<CAPTION>
                                                    SEPTEMBER 30,     DECEMBER 31,
                                                        2002             2001
                                                     ---------        ---------
Deferred tax assets:
<S>                                                  <C>              <C>
  Allowance for loan losses                          $ 184,800        $ 186,800
  Startup costs                                          5,700           16,900
  Organization costs                                     2,700           10,900
  Stock options                                         53,000           49,500
  Capital lease asset                                       --            2,600
                                                     ---------        ---------
                                                       246,200          266,700
                                                     ---------        ---------
Deferred tax liabilities:
  Federal Home Loan Bank stock                         (21,500)         (17,200)
  Accumulated depreciation                             (56,200)         (65,900)
  Capital lease obligation                                  --             (400)
  Available-for-sale securities                        (46,600)         (16,400)
                                                     ---------        ---------
                                                      (124,300)         (99,900)
                                                     ---------        ---------
Net deferred tax asset                               $ 121,900        $ 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>
                                                   SEPTEMBER 30,     SEPTEMBER 30,
                                                      2002               2001
                                                   ------------      -----------
<S>                                                 <C>               <C>
             U.S. federal income tax                $ 274,700         $ 219,700
             Changes from statutory tax:
             Other, net                                   900              (100)
                                                    ---------         ---------
             Income tax expense                     $ 275,600         $ 219,600
                                                    =========         =========
</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 NINE MONTH  PERIODS
ENDED SEPTEMBER 30, 2002 AND 2001

NET INCOME.  Net income for the quarter ended September 30, 2002 was $216,500 or
$0.86 per  diluted  share  compared  to a net  income of  $152,500  or $0.61 per
diluted share for the same period last year, an increase of $64,000 or $0.25 per
share.  Net income for the nine months ended  September 30, 2002 was $532,300 or
$2.11 per diluted share  compared to $426,500 or $1.70 per diluted share for the
nine  months  ended  September  30,  2001,  an increase of $105,800 or $0.41 per
share.

The increase in net income for the three months ended September 30, 2002 was due
to an increase in net interest  income of $236,100.  This increase was partially
offset by an increase in the provision  for loan loss of $22,800,  a decrease in
other  income of  $18,700,  and an increase  in other  expenses of $94,100.  The
increase in net income for the nine months ended  September  30, 2002 was due to
an increase in net  interest  income of $560,100.  The  increase  was  partially
offset by an increase in the provision for loan losses of $62,500, a decrease in
other income of $17,800 and an increase in other expenses of $318,100.

NET INTEREST INCOME. Net interest income increased $236,100 or 33.3% to $943,000
for the three months ended September 30, 2002 compared to $706,900 for the three
months  ended  September  30, 2001.  Year to date net  interest  income was $2.6
million and $2.1 million for the nine months ended  September 30, 2002 and 2001,
respectively,  an increase of $560,100 or 27.2% between  periods.  This increase
reflects the continued growth in interest-earning assets as well as an improving
interest rate spread. Total average  interest-earning assets for the nine months
ended September 30, 2002 increased by approximately $7.2 million with a decrease
in average yield of 95 basis points, while average interest-bearing  liabilities
increased by  approximately  $5.5  million  with a decrease in average  costs of
approximately  173 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 3.99% for the nine months  ended  September  30, 2002
compared to 3.21% for the nine months ended  September  30,  2001.  Net interest
margin  increased  to 4.56% for the 2002  period  compared to 3.96% for the 2001

                                       11
<PAGE>

period.

PROVISION FOR LOAN LOSSES. The provision for loan losses was $68,800 and $46,000
for the quarters ended  September 30, 2002 and 2001,  respectively.  The year to
date  provision  for loan losses was  $199,300  and $136,800 for the nine months
ended September 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  $22,800  should be charged to bad debt  expense
during the third quarter of 2002. At September  30, 2002,  the Bank's  allowance
for loan losses was $716,800 or 0.95% of the gross loan portfolio.

OTHER  INCOME.  Other income was  $179,100  and $197,800 for the quarters  ended
September  30,  2002 and  2001,  respectively.  Year to date  other  income  was
$499,200 and $516,900  for the nine months  ended  September  30, 2002 and 2001,
respectively.  The  decrease for the quarter of $18,700 or 9.5% and for the nine
month  period of  $17,700  or 3.4% are 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.  Also,  contributing  to the decline in other  income was a decline in
service charges and fees of $23,000,  or 16.9%, for the quarter and $34,000,  or
9.4% year to date.  The lower  levels of service  charges  and fees for the 2002
period reflect a decline in overdraft  activity after the  introduction of a new
overdraft fee structure in 2001.

OTHER EXPENSES. Other expenses were $723,800 and $629,700 for the quarters ended
September 30, 2002 and 2001, respectively. Year to date other expenses were $2.1
million and $1.8 million for the nine months ended  September 30, 2002 and 2001,
respectively.  The  increase for the quarter of $94,100 or 14.9% and $318,100 or
17.8%  for the  nine  months  ended  September  30,  2002 was due  primarily  to
increases  in  salaries  and  employee  benefits  of $45,100 for the quarter and
$173,200 for the nine-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 $19,600  and $74,600 for the three and nine month
periods,  respectively,  due to the expansion of the Bank's  office  facility in
September 2001 and related equipment expenditures.

INCOME TAX  EXPENSE.  Income tax expense was $113,000 and $275,600 for the three
and nine months  ended  September  30,  2002,  compared to $76,400 and  $219,600
during the 2001 periods.  The increase in tax expense for the three-month period
and the  nine-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 SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

The Bank continued to experience  steady asset growth during 2002.  Total assets
have increased  $13.8  million,  or 17.9% to $90.7 million at September 30, 2002
compared to $76.9 million at December 31, 2001. The increase in total assets was
primarily  attributable  to a  $9.4  million  or  14.6%  increase  in  the  loan
portfolio.  Also  contributing  to the  increase  in assets  was a $1.1  million
increase in investment  securities and $2.5 million increase in cash and federal
funds sold as the Bank has sought to improve liquidity. Loans held for sale also
increased by $500,000.

Funding for the Bank's asset growth came primarily from increased  deposits.  At
September 30, 2002,  deposits totaled $73.5 million, a $13.3 million,  or 22.1%,
increase  over  deposits at December  31, 2001.  Demand  deposit  accounts  have
increased $6.4 million and  certificates  of deposit have increased $6.9 million
since  December 31, 2001.  During the current  year,  the Bank has  increasingly
obtained deposits through internet CD markets on which the Bank

                                       12
<PAGE>
posts its rates for a fee. Such certificates of deposit totaled $19.6 million at
September 30, 2002  compared to $6.2 million at December 31, 2001.  The Bank has
found that deposits can be obtained  through the internet at lower rates than it
would be required to pay to attract funds in the Elizabethtown market.  Advances
from the Federal  Home Loan Bank of  Cincinnati  totaled $7 million at September
30, 2002 and December 31, 2001.

Stockholders' equity increased by $663,400 to $7.4 million at September 30, 2002
from $6.7 million at December  31, 2001.  Net income for the period of $532,300,
an increase  in  unrealized  gain or loss on  available-for-sale  securities  of
$58,700 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
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>
                                                          SEPTEMBER 30,    DECEMBER 31,
                                                              2002             2001
                                                          -------------    ------------
<S>                                                          <C>          <C>
Restructured loans                                           $    0       $    0
Non-accrual loans                                             1,349          644
Accruing loans past due 90 days or more                           0            0
                                                             ------       ------
        Total non-performing loans                            1,349          644

Foreclosed assets                                               140            0
                                                             ------       ------
        Total non-performing assets                          $1,489       $  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  September  30,  2002  consisted  of two real
properties and three repossessed vehicles.

At September  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>
                                                        NINE MONTHS ENDED
                                                           SEPTEMBER 30,
                                                    ----------------------------
                                                       2002              2001
                                                    ---------         ----------
<S>                                                 <C>               <C>
Balance, beginning of period                        $ 706,739         $ 625,556

Loans charged off                                    (231,776)          (46,535)
Loan recoveries                                        42,539            21,878
                                                    ---------         ---------
Net charge-offs                                      (189,237)          (24,657)

Provision for loan losses                             199,250           136,800
                                                    ---------         ---------
Balance, end of period                              $ 716,752         $ 737,699
                                                    =========         =========
</TABLE>
                                       13
<PAGE>
Charge-offs  for the nine months ended  September 30, 2002 increased by $185,200
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 and 2002.

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 and attracted over the internet,  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.  The
Bank has also used FHLB  advances  to fund  operations  and may draw on lines of
credit from its correspondent  banks. At September 30, 2002, the Bank has unused
lines of credit  from the FHLB for up to $13.8  million  and from  correspondent
banks for another $5.0 million.

At September 30, 2002, the Bank's ratio of loans to deposits was 103.2% 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 September 30, 2002,
totaled $5.5 million  compared to $4.7 million at September 30, 2001. The Bank's
cash flows were provided mainly by financing activities, including $13.3 million
from net deposit increases.  Operating  activities  provided $28,000 in cash for
the nine months ended  September 30, 2002 compared to $722,300  provided in cash
for the nine months ended  September 30, 2001.  The Bank used cash flows for its
investing  activities  primarily  to fund an  increase  in  gross  loans of $9.8
million and to purchase $943,700 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 10.0%  respectively.  At
September  30,  2002,   the  Bank   satisfied  the  capital   requirements   for
classification as well capitalized under OCC regulations.

                                       14
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

     The Company's  Chief  Executive  Officer and Chief  Financial  Officer have
evaluated  the Company's  disclosure  controls and  procedures  (as such term is
defined in Rule 13a-14(c) under the Exchange Act) as of a date within 90 days of
the date of  filing  of this  Form  10-QSB.  Based  upon  such  evaluation,  the
Company's  Chief Executive  Officer and Chief  Financial  Officer have concluded
that such controls and procedures  are effective to ensure that the  information
required  to be  disclosed  by the  Company in the  reports  it files  under the
Exchange Act is gathered, analyzed and disclosed with adequate timeliness.

     There have been no significant  changes in the Company's  internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of the evaluation described above.

                                       15
<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:
<TABLE>
<CAPTION>
          NUMBER    DESCRIPTION
          -----     -----------
          <S>        <C>
           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
<FN>
                    _____________
                    *        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).
</FN>
</TABLE>

     (b)  During the quarter ended  September 30, 2002, the Company did not file
          any current reports on Form 8-K.

                                       16
<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: November 14, 2002               By: /s/ Ronald J. Pence
                                          -------------------------------------
                                          Ronald J. Pence, President
                                          (Duly Authorized Represen-
                                          tative and Principal
                                          Financial Officer)

                                       17
<PAGE>
                                  CERTIFICATION


I, Lawrence P. Calvert,  Chief Executive  Officer of Kentucky  National Bancorp,
Inc., certify that:

1. I have reviewed  this  quarterly  report on Form 10-QSB of Kentucky  National
Bancorp, Inc.;

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

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

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

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

     (b)  Evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  Presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
the  registrant's  board or  directors  (or persons  fulfilling  the  equivalent
functions):

     (a)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: November 14, 2002


                                         /s/ Lawrence P. Calvert
                                         ------------------------------------
                                         Lawrence P. Calvert
                                         Chief Executive Officer

<PAGE>

                                  CERTIFICATION

I, Ronald J. Pence,  President and Chief Financial  Officer of Kentucky National
Bancorp, Inc., certify that:

1. I have reviewed  this  quarterly  report on Form 10-QSB of Kentucky  National
Bancorp, Inc.;

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

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

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

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

     (b)  Evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  Presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
the  registrant's  board or  directors  (or persons  fulfilling  the  equivalent
functions):

     (a)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: November 14, 2002


                                     /s/ Ronald J. Pence
                                     ---------------------------------------
                                     Ronald J. Pence
                                     President and Chief Financial Officer