UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


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

                                   FORM 10-QSB

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

     For the Quarterly Period Ended June 30, 2003

[ ]  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)


                                 (270) 737-6000
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


                                 NOT APPLICABLE
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  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.

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

     As of June 30, 2003, there were 253,800 shares of the  Registrant's  common
stock, par value $.01 per share, outstanding.

         Transitional Small Business Issuer Disclosure Format (check one):

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

<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.

                             ELIZABETHTOWN, KENTUCKY


                                      INDEX


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

FINANCIAL INFORMATION

Item 1.

Consolidated Statements of Condition as of June 30, 2003
   and December 31, 2002 (Unaudited)                                         3

Consolidated Statements of Income - (Unaudited) for the
   three and six months ended June 30, 2003 and 2002                         4

Consolidated Statements of Cash Flows - (Unaudited)
   for the six months ended June 30, 2003 and 2002                           5

Notes to Consolidated Financial Statements (Unaudited)                       7


Item 2.

Management's Discussion and Analysis or Plan of Operation                    9

Item 3.

Controls and Procedures                                                      13


PART II.
-------

OTHER INFORMATION

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

Signatures                                                                   15


                                       2
<PAGE>


                        KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CONDITION
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                            June 30,              December 31,
                                                                             2003                    2002
                                                                          -----------             -----------
<S>                                                                       <C>                     <C>
ASSETS

Cash and due from banks                                                   $ 1,725,926             $ 2,461,512
Federal funds sold                                                          1,028,815               3,882,452
Investment securities available-for-sale                                    8,258,124               4,344,247
Loans held for sale                                                         2,391,978               1,733,025
Loans, net of unearned interest                                            77,220,595              76,357,879
Allowance for loan loss                                                      (809,716)               (690,811)
Federal Home Loan Bank Stock, at cost                                         396,600                 388,900
Federal Reserve Stock, at cost                                                187,850                 186,000
Premises and equipment, net                                                 2,912,741               2,907,171
Foreclosed assets                                                               8,812                 127,060
Accrued interest receivable and other assets                                  746,046                 787,104
                                                                          -----------             -----------

     Total assets                                                         $94,067,771             $92,484,539
                                                                          ===========             ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Deposits                                                                $76,354,771             $75,449,900
  Federal Home Loan Bank advances                                           7,000,000               7,000,000
  Obligations under capital leases                                          2,055,619               2,058,829
  Accrued interest payable and other
    liabilities                                                               619,556                 470,219
                                                                          -----------             -----------
     Total liabilities                                                     86,029,946              84,978,948
                                                                          -----------             -----------
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, 253,800 and 251,400 shares
    at June 30, 2003 and December 31, 2002,
    respectively                                                                2,538                   2,514
  Surplus                                                                   5,667,054               5,607,078
  Retained earnings                                                         2,287,509               1,808,476
  Accumulated other comprehensive income                                       80,724                  87,523
                                                                          -----------             -----------

     Total stockholders' equity                                             8,037,825               7,505,591
                                                                          -----------             -----------
     Total liabilities and stockholders'
       equity                                                             $94,067,771             $92,484,539
                                                                          ===========             ===========
</TABLE>

                 See notes to consolidated financial statements.

                                       3
<PAGE>
                         KENTUCKY NATIONAL BANCORP, INC.
                        CONSOLIDATED STATEMENTS OF INCOME

            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                                        JUNE 30,                           JUNE 30
                                                              ----------------------------       ----------------------------
                                                                 2003               2002            2003              2002
                                                              ----------        ----------       ----------        ----------
<S>                                                           <C>               <C>              <C>              <C>
Interest income:
  Loans, including fees                                       $1,445,032        $1,493,164       $2,933,473        $2,937,344
  Securities                                                      74,162            54,111          126,282           106,078
  Federal funds sold and other income                             16,926            11,216           36,509            19,465
                                                              ----------        ----------       ----------        ----------
     Total interest income                                     1,536,120         1,558,491        3,096,264         3,062,887
                                                              ----------        ----------       ----------        ----------

Interest expense:
  Deposit accounts                                               323,007           391,301          689,644           783,306
  Certificates of deposit over $100,000                          170,121           157,995          338,809           333,926
  Interest expense - federal funds                                    25             3,184               25             4,980
  Interest expense - FHLB advances                                70,855            75,244          140,932           149,715
  Interest expense - capital lease                                58,017            58,493          116,048           117,578
                                                              ----------        ----------       ----------        ----------

     Total interest expense                                      622,025           686,217        1,285,458         1,389,505
                                                              ----------        ----------       ----------        ----------

     Net interest income                                         914,095           872,274        1,810,806         1,673,382

Provision for loan losses                                         65,520            85,500          130,320           130,500
                                                              ----------        ----------       ----------         ---------

     Net interest income after
       provision for loan losses                                 848,575           786,774        1,680,486         1,542,882
                                                              ----------        ----------       ----------        ----------

Other income:
  Service charges and fees                                       115,230           110,198          217,329           212,558
  Net gain on sale of loans                                      164,444            35,631          293,425            72,212
  Other income                                                    29,966            26,149           49,670            35,385
                                                              ----------        ----------       ----------        ----------

                                                                 309,640           171,978          560,424           320,155
                                                              ----------        ----------       ----------        ----------

Other expenses:
  Salaries and employee benefits                                 349,000           357,225          712,874           710,984
  Net occupancy expense                                           68,960            54,243          127,106           106,630
  Equipment expense                                               57,396            45,348          108,674            87,175
  Advertising                                                     29,691            36,646           57,002            65,490
  Data processing                                                 54,261            46,304          112,899            94,995
  Postage, telephone and supplies                                 42,523            31,844           83,944            63,740
  Bank franchise tax                                              25,480            20,657           50,680            41,087
  Directors fees                                                  13,923            13,923           27,693            27,988
  Professional services                                           44,803            35,248           85,959            72,530
  Other operating expenses                                        69,466            55,627          147,192           114,032
                                                              ----------        ----------       ----------        ----------

                                                                 755,503           697,065        1,514,023         1,384,651
                                                              ----------        ----------       ----------        ----------

Income before income taxes                                       402,712           261,687          726,887           478,386
Income tax expense                                               137,372            88,785          247,854           162,550
                                                              ----------        ----------       ----------        ----------

Net income                                                    $  265,340        $  172,902       $  479,033        $  315,836
                                                              ==========        ==========       ==========        ==========

Earnings per share:
    Basic                                                     $     1.05        $     0.69       $     1.90        $     1.26
                                                              ==========        ==========       ==========        ==========
    Diluted                                                   $     1.04        $     0.69       $     1.88        $     1.25
                                                              ==========        ==========       ==========        ==========
</TABLE>

                 See notes to consolidated financial statements.

                                       4
<PAGE>
                         KENTUCKY NATIONAL BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                          SIX MONTHS ENDED
                                                              JUNE 30,
                                                     --------------------------
                                                         2003           2002
                                                     -----------    -----------
<S>                                                  <C>            <C>
Operating activities:
     Net income                                      $   479,033    $   315,836
     Adjustments to reconcile net income to net
              cash provided by operating
              activities:
         FHLB stock dividend                              (7,700)        (8,300)
         Provision for loan losses                       130,320        130,500
         Provision for depreciation, amortization
           and accretion, net                            147,805        110,399
         Incentive stock option compensation                --           10,400
         Deferred tax                                   (107,223)        47,529
         Net change in assets and liabilities:
              Loans held for sale                       (658,953)       710,984
              Accrued interest receivable
               and other assets                          151,782       (131,324)
              Accrued interest payable                   209,337       (247,710)
                                                     -----------    -----------
                  Net cash provided by
                    operating activities                 344,401        938,314
                                                     -----------    -----------

Investing activities:
     Activity in available-for-sale securities:
          Maturities, prepayments and calls            1,700,514      1,528,199
          Purchases                                   (5,649,428)    (2,581,056)
     Activity in held-to-maturity securities:
          Purchases                                       (1,850)       (25,350)
     Net increase in loans                              (874,131)    (7,446,741)
     Purchases of premises and equipment                (128,638)       (62,843)
                                                     -----------    -----------
                  Net cash used in investing
                    activities                        (4,953,533)    (8,587,791)
                                                     -----------    -----------

Financing activities:
     Net increase in deposits                            904,871      6,352,703
     Payments on capital lease obligations                (3,210)       (24,696)
     Proceeds from sale of foreclosed assets             118,248         12,408
                                                     -----------    -----------
                  Net cash provided by financing
                    activities                         1,019,909      6,340,415
                                                     -----------    -----------

Net decrease in cash and cash
  equivalents                                         (3,589,223)    (1,309,062)

Cash and cash equivalents, beginning of period         6,343,964      2,999,755
                                                     -----------    -----------

Cash and cash equivalents, end of period             $ 2,754,741    $ 1,690,693
                                                     ===========    ===========
</TABLE>

                 See notes to consolidated financial statements.


                                       5
<PAGE>

                         KENTUCKY NATIONAL BANCORP, INC.


                CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED

                 FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                           Six Months Ended
                                                                June 30,
                                                       -------------------------
                                                            2003         2002
                                                       ------------   ----------
<S>                                                    <C>            <C>
SUPPLEMENTAL DISCLOSURES:

Cash paid for interest                                 $  1,289,569   $1,461,902
                                                       ============   ==========

Cash paid for income taxes                             $     99,025   $  497,738
                                                       ============   ==========

NONCASH TRANSACTIONS:

Federal Home Loan Bank Stock dividend
   received                                            $      7,700   $    8,300
                                                       ============   ==========

Total (decrease) increase in unrealized gain on
   securities available-for-sale                       $    (10,300)  $   32,731
                                                       ============   ==========

Loans transferred to foreclosed assets                 $       --     $  122,662
                                                       ============   ==========

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

NONCASH TRANSACTIONS:
During the six month period ended June 30, 2003, the Company issued 2,400 shares
of common stock in lieu of cash payment for accrued directors' fees for the year
ended  December 31, 2002 in the amount of $60,000 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.   EARNINGS PER SHARE

     Earnings per share has been  determined  in accordance  with  Statements of
     Financial  Accounting Standards No. 128, "Earnings per Share." Earnings per
     common and common  equivalent share were computed by dividing net income by
     the weighted average number of shares of common stock outstanding.  Diluted
     earnings per share for the six months ended June 30, 2003 is  determined by
     dividing  net  income by the  weighted  average  number of shares of common
     stock  outstanding plus the weighted average number of shares that would be
     issued upon exercise of the dilutive stock-based compensation plan assuming
     proceeds are used to purchase shares pursuant to the treasury stock method.

     The  following  data show the amounts used in computing  earnings per share
     (EPS) and the effect on income and the weighted average number of shares of
     dilutive potential common stock at June 30, 2003 and 2002.
<TABLE>
<CAPTION>
                                                         JUNE 30,      JUNE 30,
                                                           2003         2002
                                                       ------------   --------
<S>                                                    <C>            <C>
Income  available to common  stockholders
  used in basic and diluted EPS                        $    479,033   $315,836
                                                       ============   ========

Weighted  average  number of common  shares
  used in basic EPS                                         252,090    250,573
                                                       ============   ========

Effect of dilutive securities:
 Stock-based compensation plan                                  922        935
                                                       ============   ========

Weighted number of common shares and dilutive
  potential common stock used in dilutive EPS               254,802    252,335
                                                       ============   ========
</TABLE>

                                       7
<PAGE>
                         KENTUCKY NATIONAL BANCORP, INC.

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
                                   (UNAUDITED)

3.   RECLASSIFICATIONS

     Certain  2002  amounts  have been  reclassified  to  conform  with the 2003
     presentation.


                                       8
<PAGE>
Item 2.

            Management's Discussion and Analysis or Plan of Operation

GENERAL

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

FORWARD-LOOKING STATEMENTS

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

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

COMPARISON  OF THE  RESULTS OF  OPERATIONS  FOR THE THREE AND SIX MONTH  PERIODS
ENDED JUNE 30, 2003 AND 2002

NET INCOME. Net income for the quarter ended June 30, 2003 was $265,300 or $1.04
per diluted share  compared to net income of $172,900 or $0.69 per diluted share
for the same  period  last year,  an  increase  of $92,400 or $0.35 per  diluted
share.  Net income for the six months  ended June 30, 2003 was $479,000 or $1.88
per diluted  share  compared to $315,800 or $1.25 per diluted  share for the six
months ended June 30, 2002, an increase of $163,200 or $0.63 per share.

The  increase in net income for the three  months ended June 30, 2003 was due to
an increase in other income of $137,600,  an increase in net interest  income of
$41,800,  and a decrease in provision  for loan loss of $20,000.  These  factors
were  partially  offset by an  increase  in other  expenses  of  $58,400  and an
increase  in tax  expense of  $48,600.  The  increase  in net income for the six
months  ended June 30, 2003 was due to an increase in other  income of $240,300,
an increase in net interest income of $137,400,  and a decrease in the provision
for loan loss of $200. These factors were partially offset by increases in other
expenses of $129,400 and tax expense of $85,300.

NET INTEREST INCOME.  Net interest income increased  $41,800 or 4.8% to $914,100
for the three  months  ended June 30, 2003  compared  to $872,300  for the three
months ended June 30, 2002.  Year-to-date  net interest  income was $1.8 million
and $1.7 million for the six months ended June 30, 2003 and 2002,  respectively,
an increase of $137,400 or 8.2%  between  periods.  This  increase  reflects the
continued  growth in  interest-earning  assets.  Total average  interest-earning
assets for the six months ended June 30, 2003 increased by  approximately  $14.7
million  with a decrease in average  yield of 130 basis  points,  while  average
interest-bearing  liabilities  increased by  approximately  $14.4 million with a
decrease in average costs of  approximately  107 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 to
record low levels.  As a result,  the Bank's  interest rate spread  decreased to
3.70% for the six  months  ended  June 30,  2003  compared  to 3.93% for the six
months ended June 30, 2002. Net interest margin  decreased to 4.09% for the 2003
period compared to 4.53% for the 2002 period.

                                       9
<PAGE>

PROVISION FOR LOAN LOSSES. The provision for loan losses was $65,500 and $85,500
for the quarters ended June 30, 2003 and 2002,  respectively.  The  year-to-date
provision for loan losses was $130,300 and $130,500 and for the six months ended
June 30, 2003 and 2002, respectively.  The Bank makes provisions for loan losses
in amounts  deemed  necessary to maintain the adequacy of the allowance for loan
losses.  At June 30, 2003, the Bank's  allowance for loan losses was $809,700 or
1.05% of the gross loan portfolio.

OTHER INCOME. Other income was $309,600 and $172,000 for the quarters ended June
30, 2003 and 2002,  respectively.  Year-to-date  other  income was  $560,400 and
$320,200  for the six months  ended June 30,  2003 and 2002,  respectively.  The
increases  for the most recent  periods are  reflective of the growth in the net
gain on sale of loans  from the  secondary  market  loan  division.  During  the
quarter  ended March 31, 2003 the secondary  market loan  division  continued to
expand by opening a loan production office in Radcliff,  Kentucky.  The increase
in gain on sale of loans  has  been  driven  by the  record  level  of  mortgage
refinancings  in the current low  interest-rate  environment.  The Bank does not
anticipate that it will be able to sustain  comparable levels of gain on sale of
loans if long-term interest rates stabilize or turn up.

OTHER  EXPENSE.  Other expense was $755,500 and $697,100 for the quarters  ended
June 30, 2003 and 2002, respectively.  Year-to-date other expense was $1,514,000
and  $1,384,700  for the six months ended June 30, 2003 and 2002,  respectively.
The  increases for both the quarter and  year-to-date  were due primarily to the
growth of the Bank.  Bank growth has led to variety of  increased  miscellaneous
costs  included in other  operating  expense,  which  increased  from $55,600 to
$69,500  for the quarter and from  $114,000 to $147,200  year-to-date.  The Bank
attributes a portion of the increases in net occupancy expense,  data processing
expense, postage,  telephone and supplies, and equipment expense, to the opening
of the new Radcliff loan production office.

INCOME TAX  EXPENSE.  Income tax expense was $137,400 and $247,900 for the three
and six months ended June 30, 2003,  compared to $88,800 and $162,600 during the
2002  periods.  The increase in tax expense for the three and six month  periods
was due to higher net income  before  taxes.  The Company  provides for both the
current and deferred tax effects of the  transactions  reported in its financial
statements and established deferred tax assets and liabilities for the temporary
differences  between  the  financial  reporting  and tax bases of its assets and
liabilities.  The Company, however, establishes valuation allowances for its net
deferred  tax assets  unless it is more likely than not that these net  deferred
tax assets will be realized.

COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2003 AND DECEMBER 31, 2002

The Bank  continued  to  experience  asset  growth  during  2003.  Total  assets
increased  $1.6  million,  or 1.7% to $94.1 million at June 30, 2003 compared to
$92.5  million at December 31, 2002.  The increase in total assets was primarily
attributable  to a $1.5 million or 2.0%  increase in the loan and loans held for
sale portfolio.

The Bank's portfolio of investment securities  available-for-sale increased $3.9
million,  or 90.1%, to $8.3 million at June 30, 2003 due to the purchase of $5.6
million in new  securities  during  the  period  which  offset  $1.7  million in
maturities,  prepayments and calls of investment securities  available-for-sale.
The  investment  securities  acquired  for  the   available-for-sale   portfolio
consisted of mortgage-backed  securities and U.S. Government agency obligations.
The increase in investment  securities offset a $736,000 decline in cash and due
from banks and a $2.9 million  decline in federal  funds sold from  December 31,
2002. The increase in the investment  securities was part of the Bank's strategy
of increasing liquidity.

Funding for the Bank's asset growth came primarily from increased  deposits.  At
June 30, 2003,  deposits totaled $76.4 million,  a $904,900,  or 1.2%,  increase
over deposits at December 31, 2002.  Demand deposit accounts have increased $2.0
million since  December 31, 2002.  During the current year, the Bank has reduced
deposits  obtained through internet CD markets on which the Bank posts its rates
for a fee. Such  certificates  of deposit totaled $14.7 million at June 30, 2003
compared to $19.1  million at December 31, 2002.  This decrease was offset by an

                                       10
<PAGE>

increase in local area  certificates  of deposit of $3.3 million.  Advances from
the Federal Home Loan Bank of  Cincinnati  totaled $7.0 million at June 30, 2003
and December 31, 2002.

Stockholders' equity increased by $532,200 to $8.0 million at June 30, 2003 from
$7.5 million at December 31, 2002.  Net income for the period of $479,000 is the
major source of the increase.  This increase was partially  offset by a decrease
in  unrealized  gain or loss on  available-for-sale  securities  of $6,800.  The
remaining  increase of $60,000  during the current period is due to the issuance
of 2,400 shares of common  stock in lieu of cash payment for accrued  directors'
fees  for the  year  ended  December  31,  2002 in  accordance  with a  deferred
compensation  plan approved by the  stockholders  on April 25, 2000.  Management
believes that a strong capital position is vital to future  profitability and to
promote  depositor  and  investor  confidence.  The  Bank  continues  to  be  in
compliance with all applicable regulatory capital requirements.

ASSET QUALITY

The following table sets forth information  regarding the Bank's  non-performing
assets at the dates indicated.
<TABLE>
<CAPTION>
                                                            JUNE 30,    DECEMBER 31,
                                                              2003         2002
                                                            --------    -----------
                                                                (IN THOUSANDS)
<S>                                                          <C>          <C>
Restructured loans                                           $   --       $   --
Non-accrual loans                                             1,623        1,443
Accruing loans past due 90 days or more                          --           --
                                                             ------       ------

        Total non-performing loans                            1,623        1,450

Foreclosed assets                                                 9          127
                                                             ------       ------

        Total non-performing assets                          $1,632       $1,577
                                                             ======       ======
</TABLE>

The  Bank's  foreclosed  assets at June 30,  2003  consisted  of  acreage on one
property.

At June 30, 2003,  there were no loans  outstanding  not  reflected in the above
table as to which known  information about possible credit problems of borrowers
caused  management to have serious doubts as to the ability of such borrowers to
comply with present loan repayment terms.

An analysis of the changes in the allowance for loan losses is as follows:
<TABLE>
<CAPTION>

                                                         SIX MONTHS ENDED
                                                             JUNE 30,
                                                    ---------------------------
                                                      2003               2002
                                                    ---------         ---------
<S>                                                 <C>               <C>
Balance, beginning of period                        $ 690,811         $ 706,739
Loans charged off                                     (81,761)         (226,536)
Loan recoveries                                        70,346            23,850
                                                    ---------         ---------
Net charge-offs                                       (11,415)         (202,686)

Provision for loan losses                             130,320           130,500
                                                    ---------         ---------

Balance, end of period                              $ 809,716         $ 634,553
                                                    =========         =========
</TABLE>

Charge-offs  for the six  months  ended  June 30,  2003  decreased  by  $144,800
compared to the same period in 2002.  Charge-offs for 2002 included  $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 charge-offs in
2002 consisted of amounts taken on several  loans.  Management  determined  that
these borrowers would not have sufficient resources to repay the debt.

                                       11
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

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

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

At June 30, 2003,  the Bank's  ratio of loans to deposits  was 101%  compared to
100% at December 31, 2002. The loan-to-deposit  ratio is used as an indicator of
a bank's ability to originate additional loans and general liquidity. The Bank's
comparatively  high  loan-to-deposit  ratio  reflects  management's  emphasis on
building the loan portfolio and the use of FHLB advances to supplement deposits.
Because  the  Bank's  continued  loan  growth  will  depend on  deposit  growth,
management  expects to place more emphasis on building  liquidity on the balance
sheet and that the loan-to-deposit  ratio will decline. The Bank's strategies in
this regard  include  the  continued  maintenance  of an  investment  securities
portfolio that can be used as a source of liquidity and earnings.

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

Cash and cash  equivalents  (cash due from banks,  interest-bearing  deposits in
other  financial  institutions,  and federal  funds sold),  as of June 30, 2003,
totaled $2.8 million  compared to $1.7 million at June 30, 2002. The Bank's cash
flows were provided mainly by financing activities,  including $904,900 from net
deposit  increases,  and by investing  activities,  including  $1.7 million from
maturities,  prepayments and calls of available-for-sale  securities.  Operating
activities  provided  $344,400  in cash for the six months  ended June 30,  2003
compared to $938,300  provided in cash for the six months  ended June 30,  2002.
The Bank  used cash  flows for its  investing  activities  primarily  to fund an
increase  in  gross  loans  of  $874,100   and  to  purchase   $5.6  million  in
available-for-sale securities.

As a national bank, the Bank is subject to regulatory  capital  requirements  of
the  Office of the  Comptroller  of the  Currency  ("OCC").  In order to be well
capitalized  under OCC  regulations,  the Bank must maintain a leverage ratio of
Tier I Capital to  average  assets of at least 5% and ratios of Tier I and total
capital to risk-weighted assets of at least 6.0% and 10.0% respectively. At June
30, 2003, the Bank satisfied the capital requirements for classification as well
capitalized under OCC regulations.

                                       12
<PAGE>
ITEM 3.  CONTROLS AND PROCEDURES
         -----------------------

The Company's  management  evaluated,  with the  participation  of the Company's
Chief Executive  Officer and Chief Financial  Officer,  the effectiveness of the
Company's  disclosure  controls  and  procedures,  as of the  end of the  period
covered by this report.  Based on that evaluation,  the Chief Executive  Officer
and Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective to ensure that information  required to be disclosed by
the  Company  in the  reports  that it files or  submits  under  the  Securities
Exchange Act of 1934 is recorded, processed,  summarized and reported within the
time periods  specified in the  Securities and Exchange  Commission's  rules and
forms.

There were no changes in the Company's internal control over financial reporting
that occurred  during the  Company's  last fiscal  quarter that have  materially
affected,  or are reasonably likely to materially affect, the Company's internal
control over financial reporting.

                                       13
<PAGE>

Part II
                                OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

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

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

          3.1    Articles of Incorporation *
          3.2    Bylaws *
          4      Form of Common Stock Certificate *
          10.1   Restrictive Stock Transfer Agreement *
          10.2   Organizational Stock Option and Incentive Plan **
          10.3   Lease Agreement Between Kentucky National   Properties,
                 L.L.C and Kentucky National Bank ***
          10.4   Kentucky National Bancorp, Inc. 2000 Stock Option and
                 Incentive Plan ****
          10.5   Kentucky National Bancorp, Inc. Director Fee Deferral
                 Plan *****
          31     Certifications under Section 302 of Sarbanes-Oxley Act of 2002
          32     Certification under Section 906 of Sarbanes-Oxley Act of 2002
                 -------------
                 *     Incorporated  by  reference  from the  Registrant's
                       Registration Statement on Form S-4 (File No. 333-72371).
                 **    Incorporated  by reference  from  Registrant's  Post-
                       Effective Amendment No. 1 to Registration
                       Statement on Form S-8 (File No. 333-72371).
                 ***   Incorporated by reference from Registrant's Annual Report
                       on Form 10-KSB for the year ended December 31, 2001
                 ****  Incorporated by reference from the Registrant's Annual
                       Report on Form 10-KSB for the year ended December 31,
                       1999.
                 ***** Incorporated by reference from Registrant's Registration
                       Statement on Form S-8 (File No. 333-41676).


     (b)       REPORTS  ON FORM 8-K. During the quarter ended June 30, 2003, 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 13, 2003                 By: /s/ Ronald J. Pence
                                          --------------------------------------
                                          Ronald J. Pence, President
                                          (Duly Authorized Represen-
                                          tative and Principal
                                          Financial Officer)

                                       15