**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**QUARTERLY      REPORT**

**Pursuant      to Section 13 OR 15(d) of**

**The      Securities Exchange Act of 1934**

|   |                                                                  |   |
|--------|-----------------------------------------------------------------------|--------|
|   | **Farmers                Capital Bank Corporation**                   |   |
|   | (Exact                name of registrant as specified in its charter) |   |

|   | Kentucky                                    |   | 0-14412                     |   | 61-1017851                         |   |
|--------|---------------------------------------------|--------|-----------------------------|--------|------------------------------------|--------|
|   | (State                or other jurisdiction |   | (Commission                 |   | (IRS                Employer       |   |
|   | of                incorporation)            |   | File                Number) |   | Identification                No.) |   |

|   | P.O.                Box 309 Frankfort, KY               |   | 40602                     |   |
|--------|---------------------------------------------------------|--------|---------------------------|--------|
|   | (Address                of principal executive offices) |   | (Zip                Code) |   |

|   | Not                Applicable                                                 |   |
|--------|-------------------------------------------------------------------------------|--------|
|   | (Former                name or former address, if changed since last report.) |   |

----

| PART                I - FINANCIAL INFORMATION                                                                                     | 3  |
|-----------------------------------------------------------------------------------------------------------------------------------|----|
| Item                1. Financial                Statements                                                                        | 3  |
| Unaudited                Consolidated Balance                Sheets                                                               | 3  |
| Unaudited                Consolidated Statements of                Income                                                         | 4  |
| Unaudited                Consolidated Statements of                Comprehensive Income                                           | 5  |
| Unaudited                Consolidated Statements of Cash                Flows                                                     | 6  |
| Unaudited                Consolidated Statements of Changes in                Shareholders’ Equity                          | 8  |
| Notes                to Unaudited Consolidated Financial                Statements                                                | 9  |
| Item                2. Management’s Discussion and Analysis of Financial                Condition and Results of Operations | 19 |
| Item                3. Quantitative and Qualitative Disclosures About                Market Risk                                  | 36 |
| Item                4. Controls and                Procedures                                                                     | 37 |
| PART                II - OTHER INFORMATION                                                                                        | 37 |
| Item                1. Legal Proceedings                                                                                          | 37 |
| Item                2. Unregistered Sales of Equity Securities                and Use of Proceeds                                 | 37 |
| Item                6. Exhibits                                                                                                   | 37 |
| SIGNATURES                                                                                                                        | 38 |

----

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**Unaudited Consolidated Balance Sheets**

|                                                                                                     |   | September                30,  |      | December                31,  |   |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------------|-----------|-----------------------------------|--------|
| (In thousands, except share data)                                                    |   | 2006                          |      | 2005                         |   |
| **Assets**                                                                                               |   |                               |      |                              |   |   |   |
| Cash                and cash equivalents:                                                                |   |                               |      |                              |   |   |   |
| Cash                and due from banks                                                                   |   | $                                  | 107,558   |                              | $      | 71,496 |   |
| Interest                bearing deposits in other banks                                                  |   |                               | 2,698     |                              |   | 2,565 |   |
| Federal                funds sold and securities purchased under agreements to                resell     |   |                               | 36,715    |                              |   | 56,957 |   |
| Total                cash and cash equivalents                                                           |   |                               | 146,971   |                              |   | 131,018 |   |
| Investment                securities:                                                                    |   |                               |      |                              |   |   |   |
| Available                for sale, amortized cost of $268,112 (2006) and $317,759                (2005)  |   |                               | 266,085   |                              |   | 315,067 |   |
| Held                to maturity, fair value of $9,977 (2006) and $13,815                (2005)           |   |                               | 9,888     |                              |   | 13,610 |   |
| Total                investment securities                                                               |   |                               | 275,973   |                              |   | 328,677 |   |
| Loans,                net of unearned income                                                             |   |                               | 1,055,431 |                              |   | 962,571 |   |
| Allowance                for loan losses                                                                 |   |                               | (10,501   | )                                 |   | (11,069 | ) |
| Loans,                net                                                                                |   |                               | 1,044,930 |                              |   | 951,502 |   |
| Premises                and equipment, net                                                               |   |                               | 32,870    |                              |   | 28,832 |   |
| Company-owned                life insurance                                                              |   |                               | 31,022    |                              |   | 30,049 |   |
| Goodwill                                                                                                 |   |                               | 28,226    |                              |   | 28,437 |   |
| Other                intangibles, net                                                                    |   |                               | 5,945     |                              |   | 7,271 |   |
| Assets                of discontinued operations                                                         |   |                               | 138,922   |                              |   | 143,569 |   |
| Other                assets                                                                              |   |                               | 22,662    |                              |   | 24,588 |   |
| Total                assets                                                                              |   | $                                  | 1,727,521 |                              | $      | 1,673,943 |   |
| **Liabilities**                                                                                          |   |                               |      |                              |   |   |   |
| Deposits:                                                                                                |   |                               |      |                              |   |   |   |
| Noninterest                bearing                                                                       |   | $                                  | 212,043   |                              | $      | 183,248 |   |
| Interest                bearing                                                                          |   |                               | 1,023,786 |                              |   | 1,008,403 |   |
| Total                deposits                                                                            |   |                               | 1,235,829 |                              |   | 1,191,651 |   |
| Federal                funds purchased and securities sold under agreements to                repurchase |   |                               | 74,311    |                              |   | 71,336 |   |
| Other                short-term borrowings                                                               |   |                               | 23,788    |                              |   | 780 |   |
| Subordinated                notes payable to unconsolidated trusts                                       |   |                               | 25,774    |                              |   | 25,774 |   |
| Long-term                debt                                                                            |   |                               | 50,438    |                              |   | 49,516 |   |
| Dividends                payable                                                                         |   |                               | 2,442     |                              |   | 2,244 |   |
| Accrued                purchase price-Citizens Bancorp, Inc.                                             |   |                               |           |                              |   | 21,846 |   |
| Liabilities                of discontinued operations                                                    |   |                               | 140,245   |                              |   | 144,409 |   |
| Other                liabilities                                                                         |   |                               | 14,274    |                              |   | 12,151 |   |
| Total                liabilities                                                                         |   |                               | 1,567,101 |                              |   | 1,519,707 |   |
| **Shareholders’                Equity**                                                            |   |                               |      |                              |   |   |   |
| Common                stock, par value $.125 per share                                                   |   |                               |      |                              |   |   |   |
| 9,608,000                shares authorized; 8,899,158 and 8,856,249                                      |   |                               |      |                              |   |   |   |
| shares                issued at September 30, 2006 and December 31, 2005,                respectively    |   |                               | 1,112     |                              |   | 1,107 |   |
| Capital                surplus                                                                           |   |                               | 41,055    |                              |   | 39,829 |   |
| Retained                earnings                                                                         |   |                               | 161,929   |                              |   | 156,796 |   |
| Treasury                stock, at cost; 1,490,351 and 1,467,351 shares                                   |   |                               |      |                              |   |   |   |
| at                September 30, 2006 and December 31, 2005, respectively                                 |   |                               | (42,294   | )                                 |   | (41,579 | ) |
| Accumulated                other comprehensive loss                                                      |   |                               | (1,382    | )                                 |   | (1,917 | ) |
| Total                shareholders’ equity                                                          |   |                               | 160,420   |                              |   | 154,236 |   |
| Total                liabilities and shareholders’ equity                                          |   | $                                  | 1,727,521 |                              | $      | 1,673,943 |   |
| See                accompanying notes to unaudited consolidated financial                statements.     |   |

----

**Unaudited      Consolidated Statements of      Income**

|                                                                                                             |   | Three                Months Ended |   | Nine                Months Ended |   |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                                             |   | September                30,      |   | September                30,     |   |
| (In                thousands, except per share data)                                                             |   | 2006                         |   | 2005                        |   | 2006  |   | 2005  |   |
| **Interest                Income**                                                                               |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Interest                and fees on loans                                                                        |   | $                                 | 19,446 |                             | $      | 13,195 |   | $ | 54,839 |   | $ | 37,872 |   |
| Interest                on investment securities:                                                                |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                          |   |                              | 2,005  |                             |   | 1,887 |   |   | 6,556 |   |   | 5,401 |   |
| Nontaxable                                                                                                       |   |                              | 896    |                             |   | 920 |   |   | 2,758 |   |   | 2,768 |   |
| Interest                on deposits in other banks                                                               |   |                              | 14     |                             |   | 23 |   |   | 39 |   |   | 51 |   |
| Interest                of federal funds sold and securities purchased under agreements to                resell |   |                              | 474    |                             |   | 344 |   |   | 1,196 |   |   | 1,126 |   |
| Total                interest income                                                                             |   |                              | 22,835 |                             |   | 16,369 |   |   | 65,388 |   |   | 47,218 |   |
| **Interest                Expense**                                                                              |   |                              |   |                             |   |  |   |   |  |   |   |  |   |
| Interest                on deposits                                                                              |   |                              | 8,133  |                             |   | 4,834 |   |   | 22,219 |   |   | 13,491 |   |
| Interest                on federal funds purchased and securities sold                                           |   |                              |        |                             |   |  |   |   |  |   |   |  |   |
| under                agreements to repurchase                                                                    |   |                              | 1,212  |                             |   | 640 |   |   | 3,206 |   |   | 1,814 |   |
| Interest                on other borrowed funds                                                                  |   |                              | 636    |                             |   | 531 |   |   | 1,727 |   |   | 1,553 |   |
| Interest                on subordinated notes payable to unconsolidated trusts                                   |   |                              | 466    |                             |   | 255 |   |   | 1,290 |   |   | 255 |   |
| Total                interest expense                                                                            |   |                              | 10,447 |                             |   | 6,260 |   |   | 28,442 |   |   | 17,113 |   |
| Net                interest income                                                                               |   |                              | 12,388 |                             |   | 10,109 |   |   | 36,946 |   |   | 30,105 |   |
| Provision                for loan losses                                                                         |   |                              | 253    |                             |   | 348 |   |   | 172 |   |   | 367 |   |
| Net                interest income after provision for loan losses                                               |   |                              | 12,135 |                             |   | 9,761 |   |   | 36,774 |   |   | 29,738 |   |
| **Noninterest                Income**                                                                            |   |                              |        |                             |   |  |   |   |   |   |   |  |   |
| Service                charges and fees on deposits                                                              |   |                              | 2,317  |                             |   | 2,184 |   |   | 6,639 |   |   | 6,507 |   |
| Allotment                processing fees                                                                         |   |                              | 621    |                             |   | 659 |   |   | 1,957 |   |   | 1,957 |   |
| Other                service charges, commissions, and fees                                                      |   |                              | 568    |                             |   | 503 |   |   | 1,958 |   |   | 1,675 |   |
| Data                processing income                                                                            |   |                              | 439    |                             |   | 440 |   |   | 1,323 |   |   | 1,376 |   |
| Trust                income                                                                                      |   |                              | 456    |                             |   | 397 |   |   | 1,374 |   |   | 1,223 |   |
| Investment                securities losses, net                                                                 |   |                              |        |                             |   |  |   |   | (195 | ) |   | (3 | ) |
| Gains                on sale of mortgage loans, net                                                              |   |                              | 146    |                             |   | 169 |   |   | 464 |   |   | 505 |   |
| Income                from company-owned life insurance                                                          |   |                              | 320    |                             |   | 314 |   |   | 1,003 |   |   | 861 |   |
| Other                                                                                                            |   |                              | 148    |                             |   | 186 |   |   | 539 |   |   | 1,097 |   |
| Total                noninterest income                                                                          |   |                              | 5,015  |                             |   | 4,852 |   |   | 15,062 |   |   | 15,198 |   |
| **Noninterest                Expense**                                                                           |   |                              |        |                             |   |  |   |   |  |   |   |  |   |
| Salaries                and employee benefits                                                                    |   |                              | 6,780  |                             |   | 5,743 |   |   | 20,238 |   |   | 16,741 |   |
| Occupancy                expenses, net                                                                           |   |                              | 866    |                             |   | 670 |   |   | 2,629 |   |   | 1,976 |   |
| Equipment                expenses                                                                                |   |                              | 651    |                             |   | 619 |   |   | 2,077 |   |   | 1,879 |   |
| Data                processing and communication expenses                                                        |   |                              | 1,309  |                             |   | 1,053 |   |   | 3,773 |   |   | 3,079 |   |
| Bank                franchise tax                                                                                |   |                              | 449    |                             |   | 344 |   |   | 1,331 |   |   | 1,019 |   |
| Correspondent                bank fees                                                                           |   |                              | 177    |                             |   | 214 |   |   | 515 |   |   | 688 |   |
| Amortization                of intangibles                                                                       |   |                              | 433    |                             |   | 307 |   |   | 1,325 |   |   | 737 |   |
| Other                                                                                                            |   |                              | 2,236  |                             |   | 1,553 |   |   | 5,954 |   |   | 5,303 |   |
| Total                noninterest expense                                                                         |   |                              | 12,901 |                             |   | 10,503 |   |   | 37,842 |   |   | 31,422 |   |
| Income                from continuing operations before income taxes                                             |   |                              | 4,249  |                             |   | 4,110 |   |   | 13,994 |   |   | 13,514 |   |
| Income                tax expense from continuing operations                                                     |   |                              | 966    |                             |   | 699 |   |   | 2,844 |   |   | 2,822 |   |
| Income                from continuing operations                                                                 |   |                              | 3,283  |                             |   | 3,411 |   |   | 11,150 |   |   | 10,692 |   |
| Income                from discontinued operations before income tax expense                                     |   |                              | 713    |                             |   | 656 |   |   | 1,878 |   |   | 1,544 |   |
| Income                tax expense from discontinued operations                                                   |   |                              | 250    |                             |   | 214 |   |   | 585 |   |   | 439 |   |
| Income                from discontinued operations                                                               |   |                              | 463    |                             |   | 442 |   |   | 1,293 |   |   | 1,105 |   |
| Net                income                                                                                        |   | $                                 | 3,746  |                             | $      | 3,853 |   | $ | 12,443 |   | $ | 11,797 |   |
| **Net                Income Per Common Share**                                                                   |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations - basic                                                         |   | $                                 | .45    |                             | $      | .51 |   | $ | 1.51 |   | $ | 1.58 |   |
| Income                from discontinued operations - basic                                                       |   |                              | .06    |                             |   | .06 |   |   | .17 |   |   | .16 |   |
| Net                income per common share - basic                                                               |   |                              | .51    |                             |   | .57 |   |   | 1.68 |   |   | 1.74 |   |
| Income                from continuing operations - diluted                                                       |   |                              | .45    |                             |   | .50 |   |   | 1.51 |   |   | 1.57 |   |
| Income                from discontinued operations - diluted                                                     |   |                              | .06    |                             |   | .06 |   |   | .17 |   |   | .16 |   |
| Net                income per common share - diluted                                                             |   |                              | .51    |                             |   | .56 |   |   | 1.68 |   |   | 1.73 |   |
| **Weighted                Average Shares Outstanding**                                                           |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                            |   |                              | 7,393  |                             |   | 6,786 |   |   | 7,385 |   |   | 6,786 |   |
| Diluted                                                                                                          |   |                              | 7,412  |                             |   | 6,821 |   |   | 7,404 |   |   | 6,824 |   |
| See                accompanying notes to unaudited consolidated financial                statements.             |

----

**Unaudited      Consolidated Statements of Comprehensive      Income**

|                                                                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                                 |   | September                30,      |   | September                30,     |   |
| (In                thousands)                                                                        |   | 2006                         |   | 2005                        |   | 2006  |   | 2005  |   |
| **Net                Income**                                                                        |   | $                                 | 3,746  |                             | $      | 3,853 |   | $ | 12,443 |   | $ | 11,797 |   |
| Other                comprehensive income (loss):                                                    |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gain (loss) on available for sale                                  |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| securities                arising during the period, net of tax                                      |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| of                $1,691, $(867), $267, and $(981), respectively                                     |   |                              | 3,140  |                             |   | (1,610 | ) |   | 495 |   |   | (1,822 | ) |
| Reclassification                adjustment for prior period                                          |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| unrealized                loss recognized during current period,                                     |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| net                of tax of $22 and $3                                                              |   |                              |   |                             |   |    |   |   | 40 |   |   | 5 |   |
| Other                comprehensive (loss) income                                                     |   |                              | 3,140  |                             |   | (1,610 | ) |   | 535 |   |   | (1,817 | ) |
| **Comprehensive                Income**                                                              |   | $                                 | 6,886  |                             | $      | 2,243 |   | $ | 12,978 |   | $ | 9,980 |   |
| See                accompanying notes to unaudited consolidated financial                statements. |

----

**Unaudited        Consolidated Statements of Cash Flows**

| Nine                  months ended September 30, (In thousands)                                                     |   | 2006  |    | 2005  |   |
|---------------------------------------------------------------------------------------------------------------------|--------|------------|---------|------------|--------|
| **Cash                  Flows from Operating Activities**                                                           |   |       |    |       |   |   |   |
| Net                  income                                                                                         |   | $          | 12,443  |       | $      | 11,797 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |       |    |       |   |   |   |
| Depreciation                  and amortization                                                                      |   |       | 4,036   |       |   | 2,916 |   |
| Net                  amortization of investment security premiums and                  (discounts):                 |   |       |    |       |   |  |   |
| Available                  for sale                                                                                 |   |       | (53     | )          |   | 291 |   |
| Held                  to maturity                                                                                   |   |       | (18     | )          |   | (32 | ) |
| Provision                  for loan losses                                                                          |   |       | 172     |       |   | 367 |   |
| Noncash                  compensation expense                                                                       |   |       | 102     |       |   |  |   |
| Mortgage                  loans originated for sale                                                                 |   |       | (24,419 | )          |   | (27,359 | ) |
| Proceeds                  from sale of mortgage loans                                                               |   |       | 22,020  |       |   | 25,460 |   |
| Deferred                  income tax expense (benefit)                                                              |   |       | 1,566   |       |   | (419 | ) |
| Gains                  on sale of mortgage loans, net                                                               |   |       | (464    | )          |   | (505 | ) |
| Gain                  on sale of credit card portfolio                                                              |   |       |         |       |   | (700 | ) |
| Gain                  on sale of premises and equipment, net                                                        |   |       | (93     | )          |   | (5 | ) |
| Loss                  on sale of available for sale investment securities, net                                      |   |       | 195     |       |   | 3 |   |
| Increase                  in accrued interest receivable                                                            |   |       | (1,377  | )          |   | (840 | ) |
| Income                  from company-owned life insurance                                                           |   |       | (973    | )          |   | (836 | ) |
| Decrease                  (increase) in other assets                                                                |   |       | 2,303   |       |   | (1,039 | ) |
| Increase                  in accrued interest payable                                                               |   |       | 886     |       |   | 339 |   |
| Increase                  in other liabilities                                                                      |   |       | 968     |       |   | 1,061 |   |
| Net                  cash provided by discontinued operating activities                                             |   |       | 1,343   |       |   | 1,387 |   |
| Net                  cash provided by operating activities                                                          |   |       | 18,637  |       |   | 11,886 |   |
| **Cash                  Flows from Investing Activities**                                                           |   |       |    |       |   |   |   |
| Proceeds                  from maturities and calls of investment securities:                                       |   |       |    |       |   |   |   |
| Available                  for sale                                                                                 |   |       | 76,093  |       |   | 111,379 |   |
| Held                  to maturity                                                                                   |   |       | 3,740   |       |   | 3,040 |   |
| Proceeds                  from sale of available for sale investment securities                                     |   |       | 19,122  |       |   | 3,038 |   |
| Purchase                  of available for sale investment securities                                               |   |       | (45,709 | )          |   | (122,774 | ) |
| Loans                  originated for investment, net of principal collected                                        |   |       | (90,737 | )          |   | (23,802 | ) |
| Payment                  of prior year accrued purchase price-Citizens Bancorp,                  Inc.               |   |       | (21,846 | )          |   |   |   |
| Purchase                  price refinements-Citizens Bancorp, Inc.                                                  |   |       | 211     |       |   |   |   |
| Additions                  to mortgage servicing rights, net                                                        |   |       | (41     | )          |   |   |   |
| Purchase                  of premises and equipment                                                                 |   |       | (7,006  | )          |   | (2,487 | ) |
| Proceeds                  from sale of equipment                                                                    |   |       | 476     |       |   | 121 |   |
| Net                  cash provided by discontinued investing activities                                             |   |       | 14,225  |       |   | 21,977 |   |
| Net                  cash used in investing activities                                                              |   |       | (51,472 | )          |   | (9,508 | ) |
| **Cash                  Flows from Financing Activities**                                                           |   |       |    |       |   |   |   |
| Net                  increase in deposits                                                                           |   |       | 44,178  |       |   | 69,541 |   |
| Net                  increase in securities sold under agreements to repurchase                                     |   |       | 2,975   |       |   | 154 |   |
| Proceeds                  from long-term debt issued to unconsolidated trusts                                       |   |       |         |       |   | 25,774 |   |
| Proceeds                  from other long-term debt                                                                 |   |       | 11,198  |       |   | 2,000 |   |
| Repayments                  of long-term debt                                                                       |   |       | (10,276 | )          |   | (1,049 | ) |
| Net                  increase (decrease) in other short-term borrowings                                             |   |       | 23,008  |       |   | (999 | ) |
| Dividends                  paid                                                                                     |   |       | (7,112  | )          |   | (6,709 | ) |
| Purchase                  of common stock                                                                           |   |       | (715    | )          |   | (526 | ) |
| Shares                  issued under Employee Stock Purchase Plan                                                   |   |       | 173     |       |   | 147 |   |
| Stock                  options exercised                                                                            |   |       | 927     |       |   | 455 |   |
| Net                  cash used in discontinued financing activities                                                 |   |       | (5,123  | )          |   | (17,103 | ) |
| Net                  cash provided by financing activities                                                          |   |       | 59,233  |       |   | 71,685 |   |
| Net                  increase in cash and cash equivalents                                                          |   |       | 26,398  |       |   | 74,063 |   |
| Less:                  net increase in cash and cash equivalents of discontinued                  operations        |   |       | (10,445 | )          |   | (6,261 | ) |
| Net                  increase in cash and cash equivalents from continuing                  operations              |   |       | 15,953  |       |   | 67,802 |   |
| Cash                  and cash equivalents from continuing activities at beginning of                  year         |   |       | 131,018 |       |   | 77,802 |   |
| Cash                  and cash equivalents from continuing activities at end of                  period             |   | $          | 146,971 |       | $      | 145,604 |   |
| **Supplemental                  Disclosures**                                                                       |   |       |    |       |   |   |   |
| Cash                  paid during the period for:                                                                   |   |       |    |       |   |   |   |
| Interest                                                                                                            |   | $          | 30,484  |       | $      | 19,105 |   |
| Income                  taxes                                                                                       |   |       | 4,050   |       |   | 2,000 |   |
| Transfers                  from loans to repossessed assets                                                         |   |       | 1,184   |       |   | 2,599 |   |
| Cash                  dividend declared and unpaid                                                                  |   |       | 2,442   |       |   | 2,241 |   |

----

**Unaudited      Consolidated Statements of Changes in Shareholders’Equity**

| (In                thousands, except per share data)                                                                          |   |                        |   |    |   |     |   | Accumulated                   |   |          |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|---------|--------|----------|--------|-------------------------------|--------|---------------|--------|
|                                                                                                                          |   |                        |   |    |   |     |   |                          |   | Other         |   | Total |   |
| Nine                months ended                                                                                              |   | Common                Stock |   | Capital |   | Retained |   | Treasury                Stock |   | Comprehensive |   | Shareholders’ |   |
| September                30, 2006 and 2005                                                                                    |   | Shares                      |   | Amount  |   | Surplus  |   | Earnings                      |   | Shares        |   | Amount |   | Income |   | Equity |   |
| Balance                at January 1, 2006                                                                                     |   |                        | 8,856  |    | $      | 1,107    |   | $                             | 39,829 |          | $      | 156,796 |   |   | 1,467 |   | $ | (41,579 | ) | $ | (1,917 | ) | $ | 154,236 |   |
| Net                income                                                                                                     |   |                        |   |    |   |     |   |                          |   |          |   | 12,443 |   |   |   |   |   |   |   |   |   |   |   | 12,443 |   |
| Other                comprehensive income                                                                                     |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   |   |   |   |   |   |   | 535 |   |   | 535 |   |
| Cash                dividends declared, $.99 per share                                                                        |   |                        |   |    |   |     |   |                          |   |          |   | (7,310 | ) |   |   |   |   |   |   |   |   |   |   | (7,310 | ) |
| Purchase                of common stock                                                                                       |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   | 23 |   |   | (715 | ) |   |   |   |   | (715 | ) |
| Stock                options exercised, including related tax benefits                                                        |   |                        | 37     |    |   | 4        |   |                          | 929    |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 933 |   |
| Shares                issued pursuant to Employee Stock Purchase Plan                                                         |   |                        | 6      |    |   | 1        |   |                          | 172    |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 173 |   |
| Noncash                compensation expense attributed to stock option and Employee Stock                Purchase Plan grants |   |                        |   |    |   |     |   |                          | 125    |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 125 |   |
| Balance                at September 30, 2006                                                                                  |   |                        | 8,899  |    | $      | 1,112    |   | $                             | 41,055 |          | $      | 161,929 |   |   | 1,490 |   | $ | (42,294 | ) | $ | (1,382 | ) | $ | 160,420 |   |
|                                                                                                                          |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                          |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                          |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at January 1, 2005                                                                                     |   |                        | 8,234  |    | $      | 1,029    |   | $                             | 20,744 |          | $      | 149,985 |   |   | 1,450 |   | $ | (41,008 | ) | $ | 700 |   | $ | 131,450 |   |
| Net                income                                                                                                     |   |                        |   |    |   |     |   |                          |   |          |   | 11,797 |   |   |   |   |   |   |   |   |   |   |   | 11,797 |   |
| Other                comprehensive income                                                                                     |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   |   |   |   |   |   |   | (1,817 | ) |   | (1,817 | ) |
| Cash                dividends declared, $.99 per share                                                                        |   |                        |   |    |   |     |   |                          |   |          |   | (6,718 | ) |   |   |   |   |   |   |   |   |   |   | (6,718 | ) |
| Purchase                of common stock                                                                                       |   |                        |   |    |   |     |   |                          |   |          |   |   |   |   | 16 |   |   | (526 | ) |   |   |   |   | (526 | ) |
| Stock                options exercised, including related tax benefits                                                        |   |                        | 18     |    |   | 2        |   |                          | 456    |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 458 |   |
| Shares                issued pursuant to Employee Stock Purchase Plan                                                         |   |                        | 6      |    |   | 1        |   |                          | 146    |          |   |   |   |   |   |   |   |   |   |   |   |   |   | 147 |   |
| Balance                at September 30, 2005                                                                                  |   |                        | 8,258  |    | $      | 1,032    |   | $                             | 21,346 |          | $      | 155,064 |   |   | 1,466 |   | $ | (41,534 | ) | $ | (1,117 | ) | $ | 134,791 |   |
| See                accompanying notes to unaudited consolidated financial                statements.                          |

----

**Notes      to Unaudited Consolidated Financial      Statements**

| 1. | **Basis                of Presentation and Nature of                Operations** |
|----|----------------------------------------------------------------------------------|

Note 7

----

| 2. | **Reclassifications** |
|----|-----------------------|

| 3. | **Recently                Issued Accounting                Standards** |
|----|------------------------------------------------------------------------|

*“Share-Based      Payment”*
*“Accounting      for Stock-Based Compensation”*
*“Accounting      for Stock Issued to Employees,”*

*“Transition      Election to Accounting for the Tax Effects of Share-Based Payment      Awards”*

*"Accounting      for Certain Hybrid Financial Instruments”*

*"Accounting      for Servicing of Financial Assets”.*
*"Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities"*

----

*“Accounting      for Uncertainty in Income Taxes - an interpretation of FASB Statement No.      109”*

*“Considering      the Effects of Prior Year Misstatements when Quantifying Misstatements in      Current Year Financial Statements”*

*Fair      Value Measurements*

*“Employers’      Accounting for Defined Benefit Pension and Other Postretirement Plans, an      amendment of FASB Statements No. 87, 88, 106, and 132(R).”*

----

| 4. | **Net                Income Per Common Share** |
|----|------------------------------------------------|

|                                                                  |   | Three                Months EndedSeptember                30, |   | Nine                Months EndedSeptember                30, |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| (In                thousands, except per share data)                  |   | 2006                                                     |   | 2005                                                    |   | 2006  |   | 2005  |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Net                income, basic and diluted                          |   | $                                                             | 3,746  |                                                         | $      | 3,853 |   | $ | 12,443 |   | $ | 11,797 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Average                shares outstanding                             |   |                                                          | 7,393  |                                                         |   | 6,786 |   |   | 7,385 |   |   | 6,786 |   |
| Effect                of dilutive stock options                       |   |                                                          | 19     |                                                         |   | 35 |   |   | 19 |   |   | 38 |   |
| Average                diluted shares outstanding                     |   |                                                          | 7,412  |                                                         |   | 6,821 |   |   | 7,404 |   |   | 6,824 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Net                income per share, basic                            |   | $                                                             | .51    |                                                         | $      | .57 |   | $ | 1.68 |   | $ | 1.74 |   |
| Net                income per share, diluted                          |   |                                                          | .51    |                                                         |   | .56 |   |   | 1.68 |   |   | 1.73 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| **Continuing                Operations**                              |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations, basic and diluted   |   | $                                                             | 3,283  |                                                         | $      | 3,411 |   | $ | 11,150 |   | $ | 10,692 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Average                shares outstanding                             |   |                                                          | 7,393  |                                                         |   | 6,786 |   |   | 7,385 |   |   | 6,786 |   |
| Effect                of dilutive stock options                       |   |                                                          | 19     |                                                         |   | 35 |   |   | 19 |   |   | 38 |   |
| Average                diluted shares outstanding                     |   |                                                          | 7,412  |                                                         |   | 6,821 |   |   | 7,404 |   |   | 6,824 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Income                per share from continuing operations, basic     |   | $                                                             | .45    |                                                         | $      | .51 |   | $ | 1.51 |   | $ | 1.58 |   |
| Income                per share from continuing operations, diluted   |   |                                                          | .45    |                                                         |   | .50 |   |   | 1.51 |   |   | 1.57 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| **Discontinued                Operations**                            |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations, basic and diluted |   | $                                                             | 463    |                                                         | $      | 442 |   | $ | 1,293 |   | $ | 1,105 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Average                shares outstanding                             |   |                                                          | 7,393  |                                                         |   | 6,786 |   |   | 7,385 |   |   | 6,786 |   |
| Effect                of dilutive stock options                       |   |                                                          | 19     |                                                         |   | 35 |   |   | 19 |   |   | 38 |   |
| Average                diluted shares outstanding                     |   |                                                          | 7,412  |                                                         |   | 6,821 |   |   | 7,404 |   |   | 6,824 |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Income                per share from discontinued operations, basic   |   | $                                                             | .06    |                                                         | $      | .06 |   | $ | .17 |   | $ | .16 |   |
| Income                per share from discontinued operations, diluted |   |                                                          | .06    |                                                         |   | .06 |   |   | .17 |   |   | .16 |   |

----

**Stock-Based      Compensation**

|  (In                thousands, except per share data)                                                                                                              |   | Three                Months EndedSeptember                30, 2005 |   | Nine                Months EndedSeptember                30, 2005 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| **Net                Income**                                                                                                                                           |   |                                                               |   |                                                              |   |
| As                reported                                                                                                                                              |   | $                                                                  | 3,853  |                                                              | $      | 11,797 |   |
| Less:                Stock-based compensation expense determined under fair value based                method                for all awards, net of related tax effects |   |                                                               | (15    | )                                                                 |   | (95 | ) |
| Proforma                                                                                                                                                                |   | $                                                                  | 3,838  |                                                              | $      | 11,702 |   |
| **Net                Income Per Common Share**                                                                                                                          |   |                                                               |   |                                                              |   |   |   |
| Basic,                as reported                                                                                                                                       |   | $                                                                  | .57    |                                                              | $      | 1.74 |   |
| Basic,                proforma                                                                                                                                          |   |                                                               | .57    |                                                              |   | 1.72 |   |
|                                                                                                                                                                    |   |                                                               |   |                                                              |   |   |   |
| Diluted,                as reported                                                                                                                                     |   |                                                               | .56    |                                                              |   | 1.73 |   |
| Diluted,                proforma                                                                                                                                        |   |                                                               | .56    |                                                              |   | 1.71 |   |

| **Income                From Continuing Operations**                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| As                reported                                                                                                                                              |   | $ | 3,411 |   | $ | 10,692 |   |
| Less:                Stock-based compensation expense determined under fair value based                method                for all awards, net of related tax effects |   |   | (14 | ) |   | (93 | ) |
| Proforma                                                                                                                                                                |   | $ | 3,397 |   | $ | 10,599 |   |
| **Income                Per Common Share From Continuing Operations**                                                                                                   |   |   |   |   |   |   |   |
| Basic,                as reported                                                                                                                                       |   | $ | .51 |   | $ | 1.58 |   |
| Basic,                proforma                                                                                                                                          |   |   | .51 |   |   | 1.56 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Diluted,                as reported                                                                                                                                     |   |   | .50 |   |   | 1.57 |   |
| Diluted,                proforma                                                                                                                                        |   |   | .50 |   |   | 1.55 |   |

----

| **Income                From Discontinued Operations**                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| As                reported                                                                                                                                              |   | $ | 442 |   | $ | 1,105 |   |
| Less:                Stock-based compensation expense determined under fair value based                method                for all awards, net of related tax effects |   |   | (1 | ) |   | (2 | ) |
| Proforma                                                                                                                                                                |   | $ | 441 |   | $ | 1,103 |   |
| **Income                Per Common Share From Discontinued Operations**                                                                                                 |   |   |   |   |   |   |   |
| Basic,                as reported                                                                                                                                       |   | $ | .06 |   | $ | .16 |   |
| Basic,                proforma                                                                                                                                          |   |   | .06 |   |   | .16 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Diluted,                as reported                                                                                                                                     |   |   | .06 |   |   | .16 |   |
| Diluted,                proforma                                                                                                                                        |   |   | .06 |   |   | .16 |   |

|                                               |   | Three                Months EndedSeptember                30, 2006 |    | Nine                Months EndedSeptember                30, 2006 |   |
|----------------------------------------------------|--------|--------------------------------------------------------------------|---------|-------------------------------------------------------------------|--------|
|                                               |   |                                                               |    | Weighted                                                          |   |   |   | Weighted |   |
|                                               |   |                                                               |    | Average                                                           |   |   |   | Average |   |
|                                               |   | Shares                                                             |    | Price                                                             |   | Shares |   | Price |   |
| Outstanding                at beginning of period  |   |                                                               | 178,304 |                                                              | $      | 27.75 |   |   | 189,447 |   | $ | 27.67 |   |
| Granted                                            |   |                                                               |    |                                                              |   |   |   |   |   |   |   |   |   |
| Forfeited                                          |   |                                                               |    |                                                              |   |   |   |   | (2,000 | ) |   | 34.80 |   |
| Exercised                                          |   |                                                               | (27,364 | )                                                                 |   | 25.65 |   |   | (36,507 | ) |   | 25.36 |   |
| Outstanding                at September 30         |   |                                                               | 150,940 |                                                              | $      | 28.13 |   |   | 150,940 |   | $ | 28.13 |   |
|                                               |   |                                                               |    |                                                              |   |   |   |   |   |   |   |   |   |
| Options                exercisable at September 30 |   |                                                               | 144,083 |                                                              | $      | 28.05 |   |   | 144,083 |   | $ | 28.05 |   |

|                                             |   | Outstanding |    | Exercisable                          |   |
|--------------------------------------------------|--------|-------------|---------|--------------------------------------|--------|
|                                             |   |        |    | Weighted                Average      |   |   |   |   |   |   |   |
|                                             |   |        |    | Remaining                Contractual |   | Weighted                Average |   |   |   | Weighted                Average |   |
| Range                of Exercise Prices          |   | Number      |    | Life                (Years)          |   | Exercise                Price |   | Number |   | Exercise                Price |   |
|                                             |   |        |    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| $ 24.50                                     |   |        | 81,319  |                                 |   | 1.00 |   | $ | 24.50 |   |   | 81,319 |   | $ | 24.50 |   |
| $ 29.75                                     |   |        | 33,572  |                                 |   | 3.25 |   |   | 29.75 |   |   | 26,715 |   |   | 29.75 |   |
| $ 34.80                                     |   |        | 36,049  |                                 |   | 8.08 |   |   | 34.80 |   |   | 36,049 |   |   | 34.80 |   |
| Outstanding                at September 30, 2006 |   |        | 150,940 |                                 |   | 8.19 |   | $ | 28.13 |   |   | 144,083 |   | $ | 28.05 |   |

----

|                                                                     |   | Three                months ended September 30, |   | Nine                months ended September 30, |   |
|--------------------------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------------|--------|
| (In                thousands)                                            |   | 2006                                            |   | 2005                                           |   | 2006 |   | 2005 |   |
| Compensation                expense recognized for stock options         |   | $                                               | 29     |                                           |   |   |   | $ | 88 |   |   |   |   |
| Related                tax benefit recognized                            |   |                                            | 65     |                                           | $      | 38 |   |   | 88 |   | $ | 74 |   |
| Weighted                average grant date fair value of options granted |   |                                            |   |                                           |   |   |   |   |   |   |   |   |   |
| Total                intrinsic value of options exercised                |   |                                            | 186    |                                           |   | 110 |   |   | 252 |   |   | 212 |   |
| Total                fair value of options vested                        |   |                                            |   |                                           |   |   |   |   | 63 |   |   | 135 |   |
| Cash                received from options exercised                      |   |                                            | 702    |                                           |   | 272 |   |   | 926 |   |   | 453 |   |

|                                    |   | Options                   |   |
|-----------------------------------------|--------|---------------------------|--------|
|                                    |   | 2000                Grant |   | 2004                Grant |   |
|                                    |   |                      |   |   |   |   |   |
| Dividend                yield           |   |                      | 3.12   | % |   | 3.80 | % |
| Expected                volatility      |   |                      | 29.6   |   |   | 10.5 |   |
| Risk-free                interest rate  |   |                      | 6.71   |   |   | 2.78 |   |
| Expected                life (in years) |   |                      | 7      |   |   | 3 |   |
|                                    |   |                      |   |   |   |   |   |
| Fair                value               |   | $                         | 9.25   |   | $ | 1.79 |   |

| 6. | **Employee                Stock Purchase Plan** |
|----|-------------------------------------------------|

----

|                                    |   | ESPP                                                               |   |
|-----------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                    |   | Three                Months EndedSeptember                30, 2006 |   | Three                Months EndedSeptember                30, 2005 |   | Nine                Months EndedSeptember                30, 2006 |   | Nine                Months EndedSeptember                30, 2005 |   |
|                                    |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                yield           |   |                                                               | 3.83   | % |   | 3.85 | % |   | 3.85 | % |   | 3.80 | % |
| Expected                volatility      |   |                                                               | 13.6   |   |   | 13.1 |   |   | 13.8 |   |   | 12.6 |   |
| Risk-free                interest rate  |   |                                                               | 5.08   |   |   | 3.17 |   |   | 4.64 |   |   | 2.76 |   |
| Expected                life (in years) |   |                                                               | .25    |   |   | .25 |   |   | .25 |   |   | .25 |   |
|                                    |   |                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Fair                value               |   | $                                                                  | 5.69   |   | $ | 5.31 |   | $ | 5.51 |   | $ | 6.00 |   |

**7.** **Discontinued      Operations**

*“Accounting      for the Impairment or Disposal of Long-Lived Assets”*

**Condensed      Balance Sheets - KBC**

| (In                thousands)                                   |   | September                30, 2006 |    | December                31, 2005 |   |
|-----------------------------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                                            |   |                              |    |                             |   |   |   |
| **Assets**                                                      |   |                              |    |                             |   |   |   |
| Cash                and cash equivalents                        |   | $                                 | 12,512  |                             | $      | 3,348 |   |
| Investment                securities                            |   |                              | 24,044  |                             |   | 36,027 |   |
| Loans,                net                                       |   |                              | 80,301  |                             |   | 80,646 |   |
| Premises                and equipment, net                      |   |                              | 4,158   |                             |   | 4,186 |   |
| Other                assets                                     |   |                              | 3,368   |                             |   | 3,032 |   |
| Total                assets                                     |   | $                                 | 124,383 |                             | $      | 127,239 |   |
|                                                            |   |                              |    |                             |   |   |   |
| **Liabilities**                                                 |   |                              |    |                             |   |   |   |
| Deposits                                                        |   | $                                 | 112,391 |                             | $      | 115,277 |   |
| Other                borrowed funds                             |   |                              | 1,547   |                             |   | 2,368 |   |
| Other                liabilities                                |   |                              | 782     |                             |   | 451 |   |
| Total                liabilities                                |   |                              | 114,720 |                             |   | 118,096 |   |
|                                                            |   |                              |    |                             |   |   |   |
| **Shareholders’                equity**                   |   |                              | 9,663   |                             |   | 9,143 |   |
|                                                            |   |                              |    |                             |   |   |   |
| Total                liabilities and shareholders’ equity |   | $                                 | 124,383 |                             | $      | 127,239 |   |

----

**Condensed      Statements of Income - KBC**

|                                     |   | Three                Months EndedSeptember                30, |   | Nine                Months EndedSeptember                30, |   |
|------------------------------------------|--------|---------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| (In                thousands)            |   | 2006                                                          |   | 2005                                                         |   | 2006 |   | 2005 |   |
|                                     |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Interest                income           |   | $                                                             | 2,121  |                                                         | $      | 1,841 |   | $ | 6,092 |   | $ | 5,324 |   |
| Interest                expense          |   |                                                          | 862    |                                                         |   | 695 |   |   | 2,463 |   |   | 2,057 |   |
| Net                interest income       |   |                                                          | 1,259  |                                                         |   | 1,146 |   |   | 3,629 |   |   | 3,267 |   |
| Provision                for loan losses |   |                                                          | 45     |                                                         |   | (11 | ) |   | (39 | ) |   | 65 |   |
| Noninterest                income        |   |                                                          | 273    |                                                         |   | 269 |   |   | 832 |   |   | 819 |   |
| Noninterest                expense       |   |                                                          | 953    |                                                         |   | 933 |   |   | 3,040 |   |   | 2,758 |   |
| Income                tax expense        |   |                                                          | 189    |                                                         |   | 159 |   |   | 443 |   |   | 344 |   |
| Net                income                |   | $                                                             | 345    |                                                         | $      | 334 |   | $ | 1,017 |   | $ | 919 |   |

**Condensed      Balance Sheets - Farmers Georgetown’s Branches**

| (In                thousands)              |   | September                30, 2006 |    | December                31, 2005 |   |
|--------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                       |   |                              |    |                             |   |   |   |
| **Assets**                                 |   |                              |    |                             |   |   |   |
| Cash                and cash equivalents   |   | $                                 | 371     |                             | $      | 370 |   |
| Loans,                net                  |   |                              | 11,727  |                             |   | 13,397 |   |
| Premises                and equipment, net |   |                              | 936     |                             |   | 978 |   |
| Other                assets                |   |                              | 1,504   |                             |   | 1,584 |   |
| Total                assets                |   | $                                 | 14,538  |                             | $      | 16,329 |   |
|                                       |   |                              |    |                             |   |   |   |
| **Liabilities**                            |   |                              |    |                             |   |   |   |
| Deposits                                   |   | $                                 | 25,525  |                             | $      | 26,312 |   |
|                                       |   |                              |    |                             |   |   |   |
| **Net                liabilities**         |   | $                                 | (10,987 | )                                | $      | (9,983 | ) |

**Condensed      Statements of Income - Farmers Georgetown’s Branches**

|                                     |   | Three                Months EndedSeptember                30, |   | Nine                Months EndedSeptember                30, |   |
|------------------------------------------|--------|---------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
| (In                thousands)            |   | 2006                                                          |   | 2005                                                         |   | 2006 |   | 2005 |   |
|                                     |   |                                                          |   |                                                         |   |   |   |   |   |   |   |   |   |
| Interest                income           |   | $                                                             | 491    |                                                         | $      | 386 |   | $ | 1,211 |   | $ | 938 |   |
| Interest                expense          |   |                                                          | 191    |                                                         |   | 143 |   |   | 511 |   |   | 408 |   |
| Net                interest income       |   |                                                          | 300    |                                                         |   | 243 |   |   | 700 |   |   | 530 |   |
| Provision                for loan losses |   |                                                          | (19    | )                                                            |   | (90 | ) |   | (119 | ) |   | (248 | ) |
| Noninterest                income        |   |                                                          | 68     |                                                         |   | 57 |   |   | 202 |   |   | 167 |   |
| Noninterest                expense       |   |                                                          | 209    |                                                         |   | 227 |   |   | 604 |   |   | 664 |   |
| Income                tax expense        |   |                                                          | 61     |                                                         |   | 55 |   |   | 142 |   |   | 96 |   |
| Net                income                |   | $                                                             | 117    |                                                         | $      | 108 |   | $ | 275 |   | $ | 185 |   |

**Subsequent      Event - Citizens National Bancshares, Inc.**

----

| (In                thousands)                                              |   | October                1, 2006 |    |
|----------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                       |   |                           |    |   |
| **Assets**                                                                 |   |                           |    |   |
| Cash                and equivalents                                        |   | $                              | 16,307  |   |
| Investment                securities                                       |   |                           | 13,391  |   |
| Loans,                net of unearned income and allowance for loan losses |   |                           | 119,659 |   |
| Premises                and equipment, net                                 |   |                           | 3,424   |   |
| Goodwill                                                                   |   |                           | 14,596  |   |
| Core                deposit intangible                                     |   |                           | 4,524   |   |
| Other                assets                                                |   |                           | 4,407   |   |
| Total                assets                                                |   | $                              | 176,308 |   |
|                                                                       |   |                           |    |   |
| **Liabilities**                                                            |   |                           |    |   |
| Deposits                                                                   |   | $                              | 139,441 |   |
| Short-term                borrowings                                       |   |                           | 2,880   |   |
| Other                liabilities                                           |   |                           | 3,724   |   |
| Total                liabilities                                           |   |                           | 146,045 |   |
|                                                                       |   |                           |    |   |
| **Net                Assets Acquired**                                     |   | $                              | 30,263  |   |
|                                                                       |   |                           |    |   |

**9.**
**Subsequent      Event - Special Dividend**

**10.**
**Subsequent      Event - Acquisition of Military Allotment Operation**

----

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**** **

**FORWARD-LOOKING      STATEMENTS**

**DISCONTINUED      OPERATIONS**

*Unless      otherwise noted, this Management’s Discussion and Analysis of Financial      Condition and Results of Operations relate only to the Company’s continuing      operations.*

----

**RESULTS      OF OPERATIONS**

**Third Quarter 2006 vs. Third Quarter 2005**

----

**Net Interest Income**

----

----

**Distribution      of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest      Differential**

| Quarter                Ended September 30,               |   | 2006           |      | 2005            |   |
|----------------------------------------------------------|--------|----------------|-----------|-----------------|--------|
|  (In                thousands)                      |   | AverageBalance |      |  Interest4 |   | AverageRate |   | AverageBalance |   |  Interest4 |   | AverageRate |   |
| **Earning                Assets**                        |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities                     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                  |   | $              | 186,769   |            | $      | 2,005 |   |   | 4.26 | % | $ | 210,249 |   | $ | 1,887 |   |   | 3.56 | % |
| Nontaxable1                                              |   |           | 89,434    |            |   | 1,330 |   |   | 5.90 |   |   | 90,209 |   |   | 1,395 |   |   | 6.14 |   |
| Time                deposits with banks, federal         |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| funds                sold and securities purchased       |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| under                agreements to resell                |   |           | 65,403    |            |   | 488 |   |   | 2.96 |   |   | 58,610 |   |   | 367 |   |   | 2.48 |   |
| Loans1,2,3                                               |   |           | 1,038,458 |            |   | 19,547 |   |   | 7.47 |   |   | 802,827 |   |   | 13,232 |   |   | 6.54 |   |
| Total                earning assets                      |   |           | 1,380,064 |            | $      | 23,370 |   |   | 6.72 | % |   | 1,161,895 |   | $ | 16,881 |   |   | 5.76 | % |
| Allowance                for loan losses                 |   |           | (10,602   | )               |   |   |   |   |   |   |   | (10,136 | ) |   |   |   |   |   |   |
| Total                earning assets, net of              |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| allowance                for loan losses                 |   |           | 1,369,462 |            |   |   |   |   |   |   |   | 1,151,759 |   |   |   |   |   |   |   |
| **Nonearning                Assets**                     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks                   |   |           | 69,615    |            |   |   |   |   |   |   |   | 68,028 |   |   |   |   |   |   |   |
| Premises                and equipment, net               |   |           | 31,581    |            |   |   |   |   |   |   |   | 22,529 |   |   |   |   |   |   |   |
| Other                assets                              |   |           | 86,669    |            |   |   |   |   |   |   |   | 59,404 |   |   |   |   |   |   |   |
| Assets                of discontinued operations         |   |           | 141,479   |            |   |   |   |   |   |   |   | 144,485 |   |   |   |   |   |   |   |
| Total                assets                              |   | $              | 1,698,806 |            |   |   |   |   |   |   | $ | 1,446,205 |   |   |   |   |   |   |   |
| **Interest                Bearing Liabilities**          |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                 |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing demand                   |   | $              | 245,623   |            | $      | 883 |   |   | 1.43 | % | $ | 201,062 |   | $ | 404 |   |   | .80 | % |
| Savings                                                  |   |           | 196,897   |            |   | 1,028 |   |   | 2.07 |   |   | 178,724 |   |   | 653 |   |   | 1.45 |   |
| Time                                                     |   |           | 576,626   |            |   | 6,222 |   |   | 4.28 |   |   | 455,765 |   |   | 3,777 |   |   | 3.29 |   |
| Federal                funds purchased and               |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                sold under agreements          |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                repurchase                             |   |           | 101,489   |            |   | 1,212 |   |   | 4.74 |   |   | 75,485 |   |   | 640 |   |   | 3.36 |   |
| Other                borrowed funds                      |   |           | 83,901    |            |   | 1,102 |   |   | 5.21 |   |   | 70,903 |   |   | 786 |   |   | 4.40 |   |
| Total                interest bearing liabilities        |   |           | 1,204,536 |            | $      | 10,447 |   |   | 3.44 | % |   | 981,939 |   | $ | 6,260 |   |   | 2.53 | % |
| **Noninterest                Bearing Liabilities**       |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth                of Kentucky deposits         |   |           | 34,459    |            |   |   |   |   |   |   |   | 34,913 |   |   |   |   |   |   |   |
| Other                demand deposits                     |   |           | 146,724   |            |   |   |   |   |   |   |   | 140,611 |   |   |   |   |   |   |   |
| Other                liabilities                         |   |           | 13,461    |            |   |   |   |   |   |   |   | 12,183 |   |   |   |   |   |   |   |
| Liabilities                of discontinued operations    |   |           | 142,979   |            |   |   |   |   |   |   |   | 142,502 |   |   |   |   |   |   |   |
| Total                liabilities                         |   |           | 1,542,159 |            |   |   |   |   |   |   |   | 1,312,148 |   |   |   |   |   |   |   |
| Shareholders’                equity                |   |           | 156,647   |            |   |   |   |   |   |   |   | 134,057 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders’ |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity                                                   |   | $              | 1,698,806 |            |   |   |   |   |   |   | $ | 1,446,205 |   |   |   |   |   |   |   |
| Net                interest income                       |   |           |      |            |   | 12,923 |   |   |   |   |   |   |   |   | 10,621 |   |   |   |   |
| TE                basis adjustment                       |   |           |      |            |   | (535 | ) |   |   |   |   |   |   |   | (512 | ) |   |   |   |
| Net                interest income                       |   |           |      |            | $      | 12,388 |   |   |   |   |   |   |   | $ | 10,109 |   |   |   |   |
| Net                interest spread                       |   |           |      |            |   |   |   |   | 3.28 | % |   |   |   |   |   |   |   | 3.23 | % |
| Impact                of noninterest bearing sources     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                funds                                  |   |           |      |            |   |   |   |   | .44 |   |   |   |   |   |   |   |   | .39 |   |
| Net                interest margin                       |   |           |      |            |   |   |   |   | 3.72 | % |   |   |   |   |   |   |   | 3.62 | % |

----

**Analysis      of Changes in Net Interest Income (tax equivalent basis)**

| (In                thousands)                                                                                                                 |   | Variance     |   | Variance                Attributed to |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|---------------------------------------|--------|
| Quarter                Ended September 30,                                                                                                    |   | 2006/20051,3 |   | Volume                                |   | Rate |   |
|                                                                                                                                          |   |         |   |                                  |   |   |   |   |   |   |
| **Interest                Income**                                                                                                            |   |         |   |                                  |   |   |   |   |   |   |
| Taxable                investment securities                                                                                                  |   | $            | 118    |                                  | $      | (1,024 | ) | $ | 1,142 |   |
| Nontaxable                investment securities2                                                                                              |   |         | (65    | )                                     |   | (12 | ) |   | (53 | ) |
| Time                deposits with banks, federal funds sold and securities purchased                under                agreements to resell |   |         | 121    |                                  |   | 45 |   |   | 76 |   |
| Loans2                                                                                                                                        |   |         | 6,315  |                                  |   | 4,254 |   |   | 2,061 |   |
| Total                interest income                                                                                                          |   |         | 6,489  |                                  |   | 3,263 |   |   | 3,226 |   |
| **Interest                Expense**                                                                                                           |   |         |   |                                  |   |   |   |   |   |   |
| Interest                bearing demand deposits                                                                                               |   |         | 479    |                                  |   | 105 |   |   | 374 |   |
| Savings                deposits                                                                                                               |   |         | 375    |                                  |   | 72 |   |   | 303 |   |
| Time                deposits                                                                                                                  |   |         | 2,445  |                                  |   | 1,145 |   |   | 1,300 |   |
| Federal                funds purchased and securities sold under agreements to                repurchase                                      |   |         | 572    |                                  |   | 261 |   |   | 311 |   |
| Other                borrowed funds                                                                                                           |   |         | 316    |                                  |   | 158 |   |   | 158 |   |
| Total                interest expense                                                                                                         |   |         | 4,187  |                                  |   | 1,741 |   |   | 2,446 |   |
| Net                interest income                                                                                                            |   | $            | 2,302  |                                  |   | 1,522 |   | $ | 780 |   |
| Percentage                change                                                                                                              |   |         | 100.0  | %                                     |   | 66.1 | % |   | 33.9 | % |

**Noninterest Income**

----

**Noninterest Expense**

**Income Taxes**

**Income      From Discontinued Operations**

----

**First      Nine Months of 2006 vs. First Nine Months of 2005**

----

**Net      Interest Income**

----

----

**Distribution      of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest      Differential**

| Nine                Months Ended September 30,           |   | 2006           |      | 2005            |   |
|----------------------------------------------------------|--------|----------------|-----------|-----------------|--------|
|  (In                thousands)                      |   | AverageBalance |      |  Interest4 |   | AverageRate |   | AverageBalance |   |  Interest4 |   | AverageRate |   |
| **Earning                Assets**                        |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities                     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                  |   | $              | 210,978   |            | $      | 6,556 |   |   | 4.15 | % | $ | 203,290 |   | $ | 5,401 |   |   | 3.55 | % |
| Nontaxable1                                              |   |           | 91,504    |            |   | 3,988 |   |   | 5.83 |   |   | 90,236 |   |   | 4,059 |   |   | 6.01 |   |
| Time                deposits with banks, federal         |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| funds                sold and securities purchased       |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| under                agreements to resell                |   |           | 51,113    |            |   | 1,235 |   |   | 3.23 |   |   | 65,651 |   |   | 1,177 |   |   | 2.40 |   |
| Loans1,2,3                                               |   |           | 1,005,865 |            |   | 55,202 |   |   | 7.34 |   |   | 791,370 |   |   | 38,111 |   |   | 6.44 |   |
| Total                earning assets                      |   |           | 1,359,460 |            | $      | 66,981 |   |   | 6.59 | % |   | 1,150,547 |   | $ | 48,748 |   |   | 5.66 | % |
| Allowance                for loan losses                 |   |           | (10,930   | )               |   |   |   |   |   |   |   | (10,684 | ) |   |   |   |   |   |   |
| Total                earning assets, net of              |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| allowance                for loan losses                 |   |           | 1,348,530 |            |   |   |   |   |   |   |   | 1,139,863 |   |   |   |   |   |   |   |
| **Nonearning                Assets**                     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and due from banks                   |   |           | 78,047    |            |   |   |   |   |   |   |   | 75,257 |   |   |   |   |   |   |   |
| Premises                and equipment, net               |   |           | 30,376    |            |   |   |   |   |   |   |   | 22,356 |   |   |   |   |   |   |   |
| Other                assets                              |   |           | 86,136    |            |   |   |   |   |   |   |   | 57,393 |   |   |   |   |   |   |   |
| Assets                of discontinued operations         |   |           | 141,708   |            |   |   |   |   |   |   |   | 149,949 |   |   |   |   |   |   |   |
| Total                assets                              |   | $              | 1,684,797 |            |   |   |   |   |   |   | $ | 1,444,818 |   |   |   |   |   |   |   |
| **Interest                Bearing Liabilities**          |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                 |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing demand                   |   | $              | 259,045   |            | $      | 2,728 |   |   | 1.41 | % | $ | 211,778 |   | $ | 1,259 |   |   | .79 | % |
| Savings                                                  |   |           | 205,253   |            |   | 3,015 |   |   | 1.96 |   |   | 177,428 |   |   | 1,745 |   |   | 1.31 |   |
| Time                                                     |   |           | 554,419   |            |   | 16,476 |   |   | 3.97 |   |   | 445,666 |   |   | 10,487 |   |   | 3.15 |   |
| Federal                funds purchased and               |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                sold under agreements          |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                repurchase                             |   |           | 90,069    |            |   | 3,206 |   |   | 4.76 |   |   | 83,136 |   |   | 1,814 |   |   | 2.92 |   |
| Other                borrowed funds                      |   |           | 80,085    |            |   | 3,017 |   |   | 5.04 |   |   | 58,768 |   |   | 1,808 |   |   | 4.11 |   |
| Total                interest bearing liabilities        |   |           | 1,188,871 |            | $      | 28,442 |   |   | 3.20 | % |   | 976,776 |   | $ | 17,113 |   |   | 2.34 | % |
| **Noninterest                Bearing Liabilities**       |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth                of Kentucky deposits         |   |           | 39,004    |            |   |   |   |   |   |   |   | 38,689 |   |   |   |   |   |   |   |
| Other                demand deposits                     |   |           | 150,086   |            |   |   |   |   |   |   |   | 137,559 |   |   |   |   |   |   |   |
| Other                liabilities                         |   |           | 8,593     |            |   |   |   |   |   |   |   | 11,482 |   |   |   |   |   |   |   |
| Liabilities                of discontinued operations    |   |           | 143,109   |            |   |   |   |   |   |   |   | 147,851 |   |   |   |   |   |   |   |
| Total                liabilities                         |   |           | 1,529,663 |            |   |   |   |   |   |   |   | 1,312,357 |   |   |   |   |   |   |   |
| Shareholders’                equity                |   |           | 155,134   |            |   |   |   |   |   |   |   | 132,461 |   |   |   |   |   |   |   |
| Total                liabilities and shareholders’ |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity                                                   |   | $              | 1,684,797 |            |   |   |   |   |   |   | $ | 1,444,818 |   |   |   |   |   |   |   |
| Net                interest income                       |   |           |      |            |   | 38,539 |   |   |   |   |   |   |   |   | 31,635 |   |   |   |   |
| TE                basis adjustment                       |   |           |      |            |   | (1,593 | ) |   |   |   |   |   |   |   | (1,530 | ) |   |   |   |
| Net                interest income                       |   |           |      |            | $      | 36,946 |   |   |   |   |   |   |   | $ | 30,105 |   |   |   |   |
| Net                interest spread                       |   |           |      |            |   |   |   |   | 3.39 | % |   |   |   |   |   |   |   | 3.32 | % |
| Impact                of noninterest bearing sources     |   |           |      |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                funds                                  |   |           |      |            |   |   |   |   | .40 |   |   |   |   |   |   |   |   | .35 |   |
| Net                interest margin                       |   |           |      |            |   |   |   |   | 3.79 | % |   |   |   |   |   |   |   | 3.67 | % |

----

**Analysis      of Changes in Net Interest Income (tax equivalent basis)**

| (In                thousands)                                                                                                                 |   | Variance     |   | Variance                Attributed to |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|---------------------------------------|--------|
| Nine                Months Ended September 30,                                                                                                |   | 2006/20051,3 |   | Volume                           |   | Rate  |   |
|                                                                                                                                          |   |         |   |                                  |   |   |   |   |   |   |
| **Interest                Income**                                                                                                            |   |         |   |                                  |   |   |   |   |   |   |
| Taxable                investment securities                                                                                                  |   | $            | 1,155  |                                  | $      | 211 |   | $ | 944 |   |
| Nontaxable                investment securities2                                                                                              |   |         | (71    | )                                     |   | 81 |   |   | (152 | ) |
| Time                deposits with banks, federal funds sold and securities purchased                under                agreements to resell |   |         | 58     |                                  |   | (403 | ) |   | 461 |   |
| Loans2                                                                                                                                        |   |         | 17,091 |                                  |   | 11,277 |   |   | 5,814 |   |
| Total                interest income                                                                                                          |   |         | 18,233 |                                  |   | 11,166 |   |   | 7,067 |   |
| **Interest                Expense**                                                                                                           |   |         |   |                                  |   |   |   |   |   |   |
| Interest                bearing demand deposits                                                                                               |   |         | 1,469  |                                  |   | 325 |   |   | 1,144 |   |
| Savings                deposits                                                                                                               |   |         | 1,270  |                                  |   | 305 |   |   | 965 |   |
| Time                deposits                                                                                                                  |   |         | 5,989  |                                  |   | 2,898 |   |   | 3,091 |   |
| Federal                funds purchased and securities sold under agreements to                repurchase                                      |   |         | 1,392  |                                  |   | 162 |   |   | 1,230 |   |
| Other                borrowed funds                                                                                                           |   |         | 1,209  |                                  |   | 744 |   |   | 465 |   |
| Total                interest expense                                                                                                         |   |         | 11,329 |                                  |   | 4,434 |   |   | 6,895 |   |
| Net                interest income                                                                                                            |   | $            | 6,904  |                                  | $      | 6,732 |   | $ | 172 |   |
| Percentage                change                                                                                                              |   |         | 100.0  | %                                     |   | 97.5 | % |   | 2.5 | % |

**Noninterest      Income**

----

**Noninterest      Expense**

**Income      Taxes**

**Income      From Discontinued Operations**

----

**FINANCIAL      CONDITION**

**Loans**

|                                              |   | September                30, 2006 |      | December                31, 2005 |   |
|---------------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
| (Dollars                in thousands)             |   | Amount                            |      | %                           |   | Amount |   | %  |   |
|                                              |   |                              |      |                             |   |   |   |   |   |   |   |   |   |
| Commercial,                financial,             |   |                              |      |                             |   |   |   |   |   |   |   |   |   |
| and                agriculture                    |   | $                                 | 185,290   |                             |   | 17.5 | % | $ | 173,797 |   |   | 18.1 | % |
| Real                estate - construction         |   |                              | 130,425   |                             |   | 12.4 |   |   | 88,693 |   |   | 9.2 |   |
| Real                estate mortgage - residential |   |                              | 340,823   |                             |   | 32.3 |   |   | 331,508 |   |   | 34.4 |   |
| Real                estate mortgage farmland and  |   |                              |      |                             |   |   |   |   |   |   |   |   |   |
| other                commercial enterprises       |   |                              | 310,929   |                             |   | 29.5 |   |   | 274,411 |   |   | 28.5 |   |
| Installment                                       |   |                              | 54,345    |                             |   | 5.1 |   |   | 56,169 |   |   | 5.8 |   |
| Lease                financing                    |   |                              | 33,619    |                             |   | 3.2 |   |   | 37,993 |   |   | 4.0 |   |
| Total                                             |   | $                                 | 1,055,431 |                             |   | 100.0 | % | $ | 962,571 |   |   | 100.0 | % |

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**Allowance      for Loan Losses**

**Nonperforming Assets**

**Temporary Investments**

**Investment Securities**

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**Company-owned      Life Insurance**

**Assets      of Discontinued Operations**

**Deposits**

**Borrowed Funds**

**Liabilities      of Discontinued Operations**

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**LIQUIDITY**

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**CAPITAL      RESOURCES**

|                             |   | Farmers                Capital  |   | Regulatory |   |
|----------------------------------|--------|---------------------------------|--------|------------|--------|
|                             |   | Bank                Corporation |   | Minimum    |   |
| Tier                1 risk based |   |                            | 12.46  | %          |   | 4.00 | % |
| Total                risk based  |   |                            | 13.31  | %          |   | 8.00 | % |
| Leverage                         |   |                            | 9.17   | %          |   | 4.00 | % |

**Item**** 3.  Quantitative      and Qualitative Disclosures About Market Risk**

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**Item      4. Controls and      Procedures**

**PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      2. Unregistered Sales of Equity Securities and Use      of Proceeds**

**Item      6. Exhibits**

|   | List                of Exhibits |
|--------|---------------------------------|
|   |                            |   |
|   | 3i.                             | Amended                and Restated Articles of Incorporation of Farmers Capital Bank Corporation                (incorporated by reference to Quarterly Report on Form 10-Q for the                quarterly period ended June 30, 2006). |
|   |                            |   |
|   | 3ii.                            | Amended                and Restated By-Laws of Farmers Capital Bank Corporation (incorporated                by                reference to Annual Report of Form 10-K for the fiscal year ended                December                31, 1997. |
|   |                            |   |
|   | 3iia                            | Amendments                to By-Laws of Farmers Capital Bank Corporation (incorporated by reference                to Quarterly Report of Form 10-Q for the quarterly period ended March                31,                2003). |
|   |                            |   |
|   | 31.1                            | CEO                Certification Pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002 |
|   |                            |   |
|   | 31.2                            | CFO                Certification Pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002 |
|   |                            |   |
|   | 32                              | CEO&CFO                Certifications Pursuant to                Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |                            |   |

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**SIGNATURES**

| Date:  |  November              7, 2006 |   | /s/              G. Anthony Busseni                    |
|--------|-------------------------------------|--------|-------------------------------------------------------------|
|   |                                |   | G.                Anthony Busseni,                          |
|   |                                |   | President                and CEO                            |
|   |                                |   | (Principal                Executive Officer)                |
|   |                                |   |                                                        |
| Date:  |  11-7-06                       |   |  /s/              Doug Carpenter                       |
|   |                                |   | C.                Douglas Carpenter,                        |
|   |                                |   | Senior                Vice President, Secretary, and CFO    |
|   |                                |   | (Principal                Financial and Accounting Officer) |

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