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, 2000

     [ ] 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, 2000,  there were 246,440  shares of the  Registrant's
common stock, par value $.01 per share, outstanding.


         Transitional Small Business Issuer Disclosure Format (check one):

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

<PAGE>



                         KENTUCKY NATIONAL BANCORP, INC.

                             ELIZABETHTOWN, KENTUCKY


                                      INDEX


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

FINANCIAL INFORMATION

Item 1.

Consolidated Statement of Condition as of June 30, 2000
   and December 31, 1999 (Unaudited)                                       3

Consolidated Statement of Income - (Unaudited) for the
   three months and six months ended June 30, 2000 and 1999                4

Consolidated Statement of Cash Flows - (Unaudited)
   for the six months ended June 30, 2000 and 1999                         5

Notes to Consolidated Financial Statements (Unaudited)                     6


Item 2.

Management's Discussion and Analysis of Financial
     Condition and Results of Operations                                  10


PART II.
-------

OTHER INFORMATION

Item 6.               Exhibits and Reports on Form 8-K                    14

Signatures                                                                15



                                        2

<PAGE>


                         KENTUCKY NATIONAL BANCORP, INC.

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

                                                                             JUNE 30,              DECEMBER 31,
                                                                               2000                    1999
                                                                           ------------            ------------
                                ASSETS

<S>                                                                        <C>                     <C>
Cash and due from banks                                                    $ 1,513,103             $ 1,594,188
Federal funds sold                                                           1,856,000               1,331,000
Investment securities:
  Securities available-for-sale                                              3,224,980               2,152,985
  Securities held-to-maturity, at fair value                                   152,300                 180,000
Loans, net                                                                  53,914,049              48,330,667
Premises and equipment                                                       1,937,305               1,980,301
Accrued interest receivable and other assets                                   884,506                 501,106
                                                                           -----------             -----------

     Total assets                                                          $63,482,243             $56,070,247
                                                                           ===========             ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposits                                                                 $56,058,912             $49,206,413
  Obligations under capital leases                                           1,283,614               1,305,929
  Accrued interest payable and other
    liabilities                                                                418,793                 477,767
                                                                           -----------             -----------

     Total liabilities                                                      57,761,319              50,990,109
                                                                           -----------             -----------

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,
    246,440 and 240,000 shares at June 30, 2000 and
    December 31, 1999, respectively                                              2,464                   2,400
  Surplus                                                                    5,419,861               5,212,125
  Retained earnings (deficit)                                                  331,597                (125,467)
  Accumulated other comprehensive income                                       (32,998)                 (8,920)
                                                                           -----------             -----------

     Total stockholders' equity                                              5,720,924               5,080,138
                                                                           -----------             -----------

Commitments and contingent liabilities                                            -                       -
                                                                           -----------             -----------

     Total liabilities and stockholders'
       equity                                                              $63,482,243             $56,070,247
                                                                           ===========             ===========

</TABLE>

                See notes to consolidated financial statements.

                                        3
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                        CONSOLIDATED STATEMENT OF INCOME

        FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                         THREE MONTHS ENDED                  SIX MONTHS ENDED
                                                               JUNE 30,                           JUNE 30,
                                                     -----------------------------      --------------------------
                                                         2000              1999            2000            1999
                                                     -----------       -----------      ------------    -----------
<S>                                                  <C>               <C>              <C>             <C>
Interest income:
     Loans, including fees                           $ 1,253,286       $   947,674      $2,410,528      $1,780,176
     Securities                                           61,558             5,400         109,314           8,452
     Federal funds sold                                   28,771             1,272          36,328           6,078
                                                     -----------       -----------      ----------      ----------

         Total interest income                         1,343,615           954,346       2,556,170       1,794,706
                                                     -----------       -----------      ----------      ----------

Interest expense:
     Deposit accounts                                    487,505           291,248         891,396         564,717
     Certificates of deposit over $100,000               207,291           130,935         408,904         252,144
     Interest expense - federal funds                       -               11,442           1,187          15,838
     Interest expense - capital lease                     33,379            33,866          66,883          67,870
                                                     -----------       -----------      ----------      ----------

         Total interest expense                          728,175           467,491       1,368,370         900,569
                                                     -----------       -----------      ----------      ----------

         Net interest income                             615,440           486,855       1,187,800         894,137

Provision for loan losses                                 54,600            83,234         107,172         258,804
                                                     -----------       -----------      ----------      ----------

         Net interest income after provision
           for loan losses                               560,840           403,621       1,080,628         635,333
                                                     -----------       -----------      ----------      ----------

Other income:
     Service charges and fees                             87,491            66,369         165,266         122,691
     Credit life and accident insurance                   23,703            12,222          35,247          17,345
                                                     -----------       -----------      ----------      ----------

                                                         111,194            78,591         200,513         140,036
                                                     -----------       -----------      ----------      ----------

Other expenses:
     Salaries and employee benefits                      247,544           201,839         491,730         400,449
     Net occupancy expense                                35,950            31,822          70,171          60,602
     Advertising                                          24,757            27,884          60,158          61,816
     Data processing                                      47,309            25,168          90,656          73,757
     Postage, telephone and supplies                      30,024            21,436          57,645          48,777
     Bank franchise tax                                   16,418            22,975          33,148          28,536
     Directors fees                                       15,000            19,110          21,020          38,010
     Professional services                                60,436            40,459         121,675          96,513
     Other operating expenses                             58,001            37,790         122,235          92,099
                                                     -----------       -----------      ----------      ----------

                                                         535,439           428,483       1,068,438         900,559
                                                     -----------       -----------      ----------      ----------

Income (loss) before income taxes and
 cumulative effect of accounting change                  136,595            53,729         212,703        (125,190)

Income tax benefit                                       244,361              -            244,361          -
                                                     -----------       -----------      ----------     -----------

Net income (loss) before cumulative effect
 of accounting change                                    380,956            53,729         457,064        (125,190)

Cumulative effect of accounting change                      -                 -               -           (156,769)
                                                     -----------       -----------      ----------      ----------

Net income (loss)                                    $   380,956       $    53,729      $  457,064      $ (281,959)
                                                     ===========       ===========      ==========      ==========

Earnings (loss) per share                            $      1.56       $       .22      $     1.89      $    (1.17)
                                                     ===========       ===========      ==========      ==========
</TABLE>
                See notes to consolidated financial statements.

                                        4
<PAGE>


                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                 FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                    SIX MONTHS ENDED
                                                                                         JUNE 30,
                                                                           ---------------------------------
                                                                               2000                  1999
                                                                           -----------           -----------
<S>                                                                        <C>                   <C>
Operating activities:
     Net income (loss)                                                     $   457,064           $  (281,959)
     Adjustments to reconcile net loss to net
              cash provided by operating activities:
         FHLB stock dividend                                                    (7,300)                 -
         Provision for loan losses                                             107,172               258,804
         Provision for depreciation, amortization
           and accretion, net                                                   52,291                44,420
         Incentive stock option plans                                           46,800                 9,303
         Deferred tax                                                         (244,361)                 -
         Cumulative effect of accounting change                                   -                  156,769
         Changes in assets and liabilities:
              Increase in accrued interest receivable
               and other assets                                               (126,635)              (66,713)
              Increase in accrued interest payable
               and other liabilities                                           102,026                34,224
                                                                           -----------           -----------

                  Net cash provided by
                    operating activities                                       387,057               154,848
                                                                           -----------           -----------

Investing activities:
     Purchases of available-for-sale securities                             (1,101,019)              (62,900)
     Proceeds from maturity of held-to-maturity
       securities                                                               27,700                  -
     Net increase in loans                                                  (6,041,916)           (9,405,927)
     Purchases of premises and equipment                                        (9,453)             (114,980)
                                                                           -----------           -----------

                  Net cash used in investing
                    activities                                              (7,124,688)           (9,583,807)
                                                                           -----------           -----------

Financing activities:
     Net increase in deposits                                                7,203,861             9,318,009
     Payments on capital lease obligations                                     (22,315)              (21,328)
     Net decrease in federal funds purchased                                    -                   (447,000)
     Federal Home Loan Bank advances                                            -                  1,000,000
                                                                           -----------           -----------

                  Net cash provided by financing
                    activities                                               7,181,546             9,849,681
                                                                           -----------           -----------

Net increase in cash and cash equivalents                                      443,915               420,722

Cash and cash equivalents, beginning of period                               2,925,188               924,798
                                                                           -----------           -----------

Cash and cash equivalents, end of period                                   $ 3,369,103           $ 1,345,520
                                                                           ===========           ===========

SUPPLEMENTAL DISCLOSURES:

Cash paid for interest                                                     $ 1,305,981           $   892,073
                                                                           ===========           ===========
</TABLE>

NONCASH TRANSACTIONS:

During the six month period ended June 30, 2000, the Company issued 6,440 shares
of  common  stock in lieu of cash  payment  for  accrued  directors'  fees  from
inception through December 31, 1999 in the amount of $161,000 in accordance with
a deferred compensation plan approved by the stockholders on April 25, 2000.

                       See notes to consolidated financial statements.

                                        5

<PAGE>


                         KENTUCKY NATIONAL BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.   BASIS OF PRESENTATION

     Kentucky National  Bancorp,  Inc., (the Company) became the holding company
     for  Kentucky  National  Bank (the Bank) on May 18,  1999,  by issuing  and
     exchanging its stock on a share for share basis for the  outstanding  stock
     of the Bank.  The  transfer of stock  between  the  entities  under  common
     control  was  accounted  for at  historical  cost in a manner  similar to a
     pooling  of  interests.  Accordingly,  the 1999  financial  statements  are
     presented as if the holding company formation occurred on January 1, 1999.

     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 operations 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 operations for periods presented is not necessarily indicative
     of the results which may be expected for the entire year.

2.   COMPREHENSIVE INCOME

     During the year ended December 31, 1999,  Kentucky National  Bancorp,  Inc.
     adopted  FASB  Statement  No. 130,  "Reporting  Comprehensive  Income." The
     statement requires the reporting of comprehensive income in addition to net
     income from operations.  Comprehensive income is a more inclusive financial
     reporting  methodology  that  includes  disclosures  of  certain  financial
     information that historically has not been recognized in the calculation of
     net income.

     At June 30, 2000 and December 31, 1999, the Bank held securities classified
     as  available-for-sale,  which have net unrealized  losses of approximately
     $50,000 and $13,500,  respectively. The before and after tax amount and tax
     expense  (benefit) of this  component of  comprehensive  income at June 30,
     2000 and December 31, 1999 is summarized below:
<TABLE>
<CAPTION>

                                                                                   TAX
                                                              BEFORE            (BENEFIT)              AFTER
                                                                TAX              EXPENSE                TAX
                                                              ------            ---------              -----
       <S>                                                  <C>                 <C>                  <C>
     JUNE 30, 2000
       Unrealized holding losses                            $ (49,997)          $ (16,999)           $ (32,998)
       Reclassification adjustment
         for gains included in net
         income                                                  -                   -                    -
                                                            ---------           ---------            ---------

                                                            $ (49,997)          $ (16,999)           $ (32,998)
                                                            =========           =========            =========

     DECEMBER 31, 1999
       Unrealized holding losses                            $ (13,515)          $  (4,595)           $  (8,920)
       Reclassification adjustment
         for gains included in net
         income                                                  -                   -                    -
                                                            ---------           ---------            ---------

                                                            $ (13,515)          $  (4,595)           $  (8,920)
                                                            =========           =========            =========
</TABLE>

                                        6
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                   (Unaudited)


3.   EARNINGS (LOSS) PER SHARE

     Earnings (loss) per share has been determined in accordance with Statements
     of Financial Accounting Standards No. 128, "Earnings per Share."

     Earnings (loss) per share for the six month periods ended June 30, 2000 and
     1999 have been  computed  based on the  weighted  average  number of shares
     outstanding  throughout  the periods of 242,147 and 240,000,  respectively.
     Earnings  (loss) per share for the three month  periods ended June 30, 2000
     and 1999 have been computed based on the weighted  average number of shares
     outstanding  throughout  the periods of 244,293 and 240,000,  respectively.
     Diluted  earnings  (loss) per share has not been presented as the effect of
     options granted under stock option plans are antidilutive.

4.   ORGANIZATION COSTS

     In April 1998, Accounting Standards Executive Committee issued Statement of
     Position 98-5, "Reporting on the Costs of Start-up  Activities,"  effective
     for financial  statements  for fiscal years  beginning  after  December 15,
     1998. In  accordance  with this  standard,  the Bank expensed on January 1,
     1999,  unamortized start-up costs in the amount of $156,769 as a cumulative
     effect of a change in accounting principle.

5.   RECLASSIFICATIONS

     Certain  1999  amounts  have been  reclassified  to  conform  with the 2000
     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, 2000 and 1999 were
     as follows:

<TABLE>
<CAPTION>

                                                   June 30,    June 30,
                                                    2000         1999
                                                 ----------    --------

<S>                                              <C>            <C>
Current                                          $    --        $   --
Deferred                                          (244,361)         --
                                                 ---------      ------

                                                 $(244,361)     $   --
                                                 =========      ======
</TABLE>



                                        7
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                   (UNAUDITED)


6.   INCOME TAXES, CONTINUED

     At June 30, 2000 and December 31, 1999 deferred tax assets and  liabilities
     are composed of the following:
<TABLE>
<CAPTION>

                                                                            JUNE 30,              DECEMBER 31,
                                                                              2000                    1999
                                                                          -----------            -------------
             <S>                                                         <C>                     <C>
             Deferred tax assets:
               Allowance for loan losses                                 $   151,200             $   143,200
               Net operating losses                                           31,700                 109,000
               Startup costs                                                  44,700                  54,100
               Organization costs                                             32,100                  39,200
               Stock options                                                  31,500                  15,600
               Available-for-sale securities                                  17,000                   4,600
                                                                         -----------             -----------

                                                                             308,200                 365,700
                                                                         -----------             -----------
             Deferred tax liabilities:
               Federal Home Loan Bank stock                                   (6,500)                 (3,800)
               Depreciation                                                  (40,400)                (34,100)
                                                                         -----------             -----------
                                                                             (46,900)                (37,900)
                                                                         -----------             -----------

                                                                             261,300                 327,800
             Less valuation allowance                                           -                   (323,200)
                                                                         -----------             -----------

             Net deferred tax asset                                      $   261,300             $     4,600
                                                                         ===========             ===========
</TABLE>


     At June 30, 2000, the Company has tax loss  carryforwards  of approximately
     $93,300 that may be offset against future taxable income. The carryforwards
     expire from 2012 to 2015.

7.   STOCK OPTION PLAN

     Under a new plan approved by  stockholders  on April 25, 2000,  the Company
     granted performance based options to purchase 24,000 shares of stock to key
     employees,  service  providers  and  consultants.  The  options to purchase
     shares expire 10 years from the date of the grant. One third of the options
     vested  immediately.  The  remaining  options  vest  over  two  years  upon
     achievement  of corporate  performance  goals.  There are 6,000  additional
     options available to be granted under the plan.  Compensation accrued under
     this plan at June 30, 2000 was $36,400.

     A summary of the  options  outstanding  during 2000 for the year 2000 stock
     option plan is as follows:
<TABLE>
<CAPTION>
                                                             WEIGHTED
                                                 NUMBER       AVERAGE
                                                  OF         EXERCISE
                                                OPTIONS       PRICE
                                               ---------     --------

<S>                                            <C>           <C>
Issued at inception                            24,000        $25.00

Granted during period                            --            --

Exercised during period                          --            --
                                               ------        ------

                                               24,000        $25.00
                                               ======

Eligible for exercise at end of period          9,333
                                               ------

Weighted average fair value of options
  granted during period                          --
                                               ======

</TABLE>

                                        8
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                   (UNAUDITED)


8.   DEFERRED COMPENSATION PLAN

     On April 25,  2000,  the  stockholders  approved a plan for the  payment of
     deferred  directors' fees whereby 18,000 shares of common stock were issued
     for the  settlement of directors'  fees in lieu of cash payment.  Under the
     plan, 6,440 shares were immediately distributed for payment of fees accrued
     from inception through December 31, 1999 in the amount of $161,000.  Shares
     are to be distributed annually as soon as practical after the calendar year
     for which the shares  have been  earned.  The plan is  effective  until its
     termination by the Board of Directors.




                                        9
<PAGE>
ITEM 2.


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

GENERAL

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

FORWARD-LOOKING STATEMENTS

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

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

COMPARISON  OF THE  RESULTS OF  OPERATIONS  FOR THE THREE AND SIX MONTH  PERIODS
ENDED JUNE 30, 2000 AND 1999

NET INCOME  (LOSS).  Net income for the quarter ended June 30, 2000 was $381,000
or $1.56 per share  compared  to net income of $53,700 or $.22 per share for the
same period last year,  an increase of $327,300 or $1.34 per share.  The year to
date net income at June 30, 2000 was  $457,100 or $1.89 per share  compared to a
net  loss  $282,000  or  $1.17  per  share  for the same  period  in  1999.  The
improvement of net income for the three months ended June 30, 2000 over the same
period last year was due  primarily to increased  profitability  of the Bank and
the lifting of the valuation  allowance  relating to net deferred tax assets. In
accordance with Statement of Financial Accounting Standards No. 109, the Company
has determined that it is more likely than not that net deferred tax assets will
be  realized,  and thus  concluded  that no  valuation  allowance  is needed for
deductible  temporary  differences.  The  lifting  of  the  valuation  allowance
relating to net deferred tax assets  resulted in a current income tax benefit of
$244,400.  The  increase in the year to date income at June 30, 2000 of $739,100
or $3.06 per share is due  largely to the  increase  in net  interest  income of
$293,700, increase in other income of $60,500, reduced provision for loan losses
of  $31,600,  and the  recognition  of the income tax  benefit  of  $244,400  as
described  above,  relative to an increase in expense of $167,900.  In addition,
the six months ended June 30, 1999  included a  nonrecurring  accounting  change
implementation  which  required  the  Bank  to  expense  previously  capitalized
start-up  costs of $156,800 and also included a specific  charge off of $120,000
which increased the provision for loan losses for that period.

NET INTEREST INCOME. Net interest income increased $128,600 or 26.4% to $615,400
for the three  months  ended June 30, 2000  compared  to $486,800  for the three
months  ended June 30, 1999.  Year to date net interest  income was $1.2 million
and $894,100 for the six months ended June 30, 2000 and 1999,  respectively,  an
increase of $305,900 or 34.2%. Total average  interest-earning  assets increased
by  approximately  $16.2  million  with an increase in average  yield of 9 basis
points while average  interest  bearing  liabilities  increased by approximately
$14.7  million  with an  increase  in average  costs of  approximately  28 basis
points.



                                       10
<PAGE>

As a result,  the Bank's  interest  rate spread  decreased  to 3.49% for the six
months  ended June 30, 2000  compared to 3.68% for the six months ended June 30,
1999.  Net  interest  margin was to 4.28% for the six months ended June 30, 2000
compared to 4.54% for the six months ended June 30, 1999.

PROVISION FOR LOAN LOSSES. The provision for loan losses was $54,600 and $83,200
for the quarters  ended June 30, 2000 and 1999,  respectively.  The year to date
provision  for loan losses was  $107,200  and  $258,800 for the six months ended
June 30, 2000 and 1999, respectively.  The year to date decrease of $151,600 was
primarily  due to a specific  charge off in the  amount of  $120,000  during the
first  quarter of 1999. At June 30, 2000,  the Bank's  allowance for loan losses
was $585,300 or 1.1% of the gross loan portfolio.

OTHER INCOME.  Other income was $111,200 and $78,600 for the quarters ended June
30, 2000 and 1999,  respectively.  Year to date other  income was  $200,500  and
$140,000  for the six months  ended June 30,  2000 and 1999,  respectively.  The
increase for the quarter of $32,600 or 41.5%,  and the year to date  increase of
$60,500 or 43.2%,  is  reflective  of loan and  deposit  growth from which other
income  of  service  charges,  fees,  and  credit  life and  accident  insurance
commissions are generated.

OTHER  EXPENSE.  Other expense was $535,400 and $428,500 for the quarters  ended
June 30, 2000 and 1999, respectively.  Year to date other expense was $1,068,400
and $900,600 for the six months ended June 30, 2000 and 1999, respectively.  The
increase  for the quarter of $106,900 or 24.9% and the year to date  increase of
$167,800 or 18.6% was due  primarily  to the  increases in salaries and employee
benefits  of $45,700 or 22.6% for the  quarter and 91,300 or 22.8% year to date.
The growth in salaries and employee benefits are the results of bank growth, the
addition  of the branch  location  in December  1998,  the  addition of internet
banking personnel in 1999 and the accrual of $36,400  compensation under a stock
option plan effected April 25, 2000.

INCOME TAX BENEFIT (EXPENSE).  For the three and six months ended June 30, 2000,
the Company  recorded a tax  benefit of  $244,400  compared to no tax benefit or
expense  during the three and six months  ended June 30,  1999.  The tax benefit
during the 2000 periods related to the reversal of valuation  allowances related
to its net  deferred tax assets.  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.  Based on its current  earnings and other  factors,
the Company  determined  that it is more  likely  than not that it will  realize
certain of its net deferred tax assets and reversed the corresponding  valuation
allowance.

COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2000 AND DECEMBER 31, 1999

The Bank  continued to experience  strong asset growth during the second quarter
of 2000. Total assets increased $7.4 million,  or 13.2% to $63.5 million at June
30, 2000 compared to $56.1  million at December 31, 1999.  The increase in total
assets was  primarily  attributable  to a $5.6 million or 11.6%  increase in the
loan  portfolio.  Also  contributing  to the increase in assets was a $1 million
increase in investment securities,  $525,000 increase in federal funds sold, and
a $383,400  increase in other  assets due  primarily to the  recordation  of the
deferred  tax asset of  $244,300.  Funding  for the  Bank's  asset  growth  came
primarily  from increased  deposits.  At June 30, 2000,  deposits  totaled $56.1
million, a $6.9 million, or 13.9%, increase over deposits at December 31, 1999.

Stockholders'  equity  increased by $640,800 to $5,720,924 at June 30, 2000 from
$5,080,100  at  December  31,  1999.  Net  income for the year of  $457,100  the
recordation of stock and contributed  capital for payment of deferred directors'
fees  through  December  31, 1999 of $161,000  and  surplus  from stock  options
accrued




                                       11
<PAGE>

of $46,800, less $24,100 change in unrealized gain or loss on available-for-sale
securities  is the source of the  increase.  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.

As a  condition  to its  approval  of the  Bank's  deposit  insurance,  the FDIC
required  the Bank to  maintain  a ratio of Tier I capital  to assets of no less
than 8% during its first three years of  operations.  The Bank was in compliance
with this requirement as of June 30, 2000, with a Tier 1 capital ratio of 9.22%,
an increase of .16% over the March 31, 2000 Tier I capital ratio of 9.06%. Based
on its level of Tier I capital at June 30, 2000, the Bank will only be permitted
to grow its assets to  approximately  $72 million  prior to October 15, 2000 and
still  be in  compliance  with  the  FDIC  requirement.  The  Company  has  made
arrangements  to borrow funds from a third party lender for capital  infusion to
enhance continued  growth.  Although the Bank believes that it will be permitted
to maintain  Tier 1 capital at a lower  percentage  of assets after  October 15,
2000,  there can be no  assurance  that the Bank will be permitted to resume its
historic rate of growth without an increase in capital.

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,
                                                                                    2000             1999
                                                                                -----------      ------------
         <S>                                                                    <C>              <C>
         Restructured loans                                                     $      -         $     -
         Non-accrual loans                                                          124,900          155,000
         Accruing loans past due 90 days or more                                       -                -
                                                                                -----------      ------------

              Total                                                             $   124,900      $   155,000
                                                                                ===========      ===========
</TABLE>

At June 30, 2000, there were $676,700 in 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,
                                                                       ----------------------------------
                                                                          2000                    1999
                                                                       -----------             ----------

         <S>                                                           <C>                     <C>
         Balance, beginning of period                                  $  561,944              $  347,000
         Loans charged off                                                (89,123)               (159,110)
         Loan recoveries                                                    5,345                      20
                                                                       ----------              ----------

         Net charge-offs                                                  (83,778)               (159,090)
         Provision for loan losses                                        107,172                 258,804
                                                                       ----------              ----------

         Balance, end of period                                        $  585,338              $  446,714
                                                                       ==========              ==========
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES.

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







                                       12
<PAGE>

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,
principal and interest payments on loans, interest received on other investments
and federal funds  purchased.  The Bank is also eligible to borrow from the FHLB
of Cincinnati.  Its principal  funding  commitments  are for the  origination of
loans, the payment of maturing deposits 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, 2000,  the Bank's  ratio of loans to deposits was 96.2%  compared to
98.2% at December 31, 1999. 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 has been possible  because the Bank has funded a
significant portion of its loan growth with capital raised in its initial public
offering.  Because  the Bank's  continued  loan  growth  will  depend on deposit
growth,  management  expects to place more emphasis on building liquidity on the
balance  sheet and that the  loan-to-deposit  ratio  will  decline.  The  Bank's
strategies in this regard  include the sale of  participations  in loans and the
creation of an investment  securities  portfolio that can be used as a source of
liquidity and earnings.

Due to the growth of the Bank and increase in  personnel,  the Bank is currently
reaching  full premises  capacity at the main branch  location.  Management  has
begun the  preliminary  planning stage for future  expansion of bank premises to
enable continued growth.

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, 2000,
totaled $3.4 million  compared to $1.3 million at June 30, 1999. The Bank's cash
flows were provided mainly by financing activities,  including $7.2 million from
net deposit increases.  Operating  activities  provided $387,100 in cash for the
six months  ended June 30,  2000  compared to $154,800 in cash for the first six
months of 1999. The Bank used cash flows for its investing  activities primarily
to fund an increase in gross loans of $6 million and purchase of  securities  of
$1.1 million.

As a national bank, the Bank is subject to regulatory  capital  requirements  of
the  Office of the  Comptroller  of the  Currency  ("OCC").  In order to be well
capitalized  under OCC  regulations,  the Bank must maintain a leverage ratio of
Tier I Capital to  average  assets of at lease 5% and ratios of Tier I and total
capital  to  risk-weighted  assets  of at  least  6% and  10%  respectively.  In
addition,  as a condition to the approval of the insurance of its deposits,  the
FDIC  required  the Bank to  maintain  a ratio of Tier I capital to assets of at
least 8% for the first three years of  operations.  At June 30,  2000,  the Bank
satisfied the capital  requirements  for  classification  as well as capitalized
under OCC regulations  and was in compliance  with the condition  imposed by the
FDIC in connection with the insurance of its deposits.



                                       13


<PAGE>

PART II


                                OTHER INFORMATION


ITEM 6.  Exhibits and Reports on Form 8-K
         --------------------------------

     (a) The following  exhibits are being filed with this  quarterly  report on
         Form 10-QSB:

                  Number                       Description
                  ------                       -----------

                    27              Financial Data Schedule (EDGAR only)

     (b) During the quarter  ended June 30,  2000,  the Company did not file any
         current reports on Form 8-K.




                                       14

<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 10, 2000                         By: /s/ Ronald J. Pence
                                                  -----------------------------
                                                  Ronald J. Pence, President
                                                  (Duly Authorized Represen-
                                                  tative and Principal
                                                  Financial Officer)




                                       15