|   |                                                   |   |
|--------|--------------------------------------------------------|--------|
|   | 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                                                                           |   |
|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |
| Item 1. Financial Statements                                                                                   |   |
| Unaudited Consolidated Balance Sheets                                                                          | 3      |
| Unaudited Consolidated Statements of Operations                                                                | 4      |
| Unaudited Consolidated Statements of Comprehensive (Loss) Income                                               | 5      |
| Unaudited Consolidated Statements of Cash Flows                                                                | 6      |
| Unaudited Consolidated Statements of Changes in Shareholders’ Equity                                     | 7      |
| Notes to Unaudited Consolidated Financial Statements                                                           | 8      |
|                                                                                                           |   |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20     |
|                                                                                                           |   |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                  | 35     |
|                                                                                                           |   |
| Item 4.  Controls and Procedures                                                                     | 35     |
|                                                                                                           |   |
| PART II - OTHER INFORMATION                                                                                    |   |
|                                                                                                           |   |
| Item 1.  Legal Proceedings                                                                           | 36     |
|                                                                                                           |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                 | 36     |
|                                                                                                           |   |
| Item 4.  Submission of Matters to a Vote of Security Holders                                         | 37     |
|                                                                                                           |   |
| Item 6.  Exhibits                                                                                    | 38     |
|                                                                                                           |   |
| SIGNATURES                                                                                                     | 40     |

----

Unaudited Consolidated Balance Sheets

|                                                                                                                                                                                                   |   | June 30, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|
| (Dollars in thousands, except per share data)                                                                                                                                      |   | 2009     |      |   | 2008         |   |
| Assets                                                                                                                                                                                                 |   |     |      |   |         |   |
| Cash and cash equivalents:                                                                                                                                                                             |   |     |      |   |         |   |
| Cash and due from banks                                                                                                                                                                                |   | $        | 72,016    |   |         | $      | 87,656 |   |
| Interest bearing deposits in other banks                                                                                                                                                               |   |     | 160,518   |   |         |   | 94,823 |   |
| Federal funds sold and securities purchased under agreements to resell                                                                                                                                 |   |     | 40,197    |   |         |   | 8,296 |   |
| Total cash and cash equivalents                                                                                                                                                                        |   |     | 272,731   |   |         |   | 190,775 |   |
| Investment securities:                                                                                                                                                                                 |   |     |      |   |         |   |   |   |
| Available for sale, amortized cost of $546,365 (2009) and $526,698 (2008)                                                                                                                              |   |     | 550,911   |   |         |   | 534,295 |   |
| Held to maturity, fair value of $1,454 (2009) and $1,667 (2008)                                                                                                                                        |   |     | 1,565     |   |         |   | 1,814 |   |
| Total investment securities                                                                                                                                                                            |   |     | 552,476   |   |         |   | 536,109 |   |
| Loans, net of unearned income                                                                                                                                                                          |   |     | 1,315,306 |   |         |   | 1,312,580 |   |
| Allowance for loan losses                                                                                                                                                                              |   |     | (21,318   | )      |         |   | (16,828 | ) |
| Loans, net                                                                                                                                                                                             |   |     | 1,293,988 |   |         |   | 1,295,752 |   |
| Premises and equipment, net                                                                                                                                                                            |   |     | 40,545    |   |         |   | 43,046 |   |
| Company-owned life insurance                                                                                                                                                                           |   |     | 36,005    |   |         |   | 35,396 |   |
| Goodwill                                                                                                                                                                                               |   |     | 52,408    |   |         |   | 52,408 |   |
| Other intangibles, net                                                                                                                                                                                 |   |     | 5,965     |   |         |   | 6,941 |   |
| Other assets                                                                                                                                                                                           |   |     | 42,074    |   |         |   | 41,740 |   |
| Total assets                                                                                                                                                                                           |   | $        | 2,296,192 |   |         | $      | 2,202,167 |   |
| Liabilities                                                                                                                                                                                            |   |     |      |   |         |   |   |   |
| Deposits:                                                                                                                                                                                              |   |     |      |   |         |   |   |   |
| Noninterest bearing                                                                                                                                                                                    |   | $        | 231,650   |   |         | $      | 241,518 |   |
| Interest bearing                                                                                                                                                                                       |   |     | 1,406,615 |   |         |   | 1,352,597 |   |
| Total deposits                                                                                                                                                                                         |   |     | 1,638,265 |   |         |   | 1,594,115 |   |
| Federal funds purchased and other short-term borrowings                                                                                                                                                |   |     | 105,843   |   |         |   | 77,474 |   |
| Securities sold under agreements to repurchase and other long-term borrowings                                                                                                                          |   |     | 280,792   |   |         |   | 286,691 |   |
| Subordinated notes payable to unconsolidated trusts                                                                                                                                                    |   |     | 48,970    |   |         |   | 48,970 |   |
| Dividends payable                                                                                                                                                                                      |   |     | 2,028     |   |         |   | 2,427 |   |
| Other liabilities                                                                                                                                                                                      |   |     | 25,617    |   |         |   | 24,194 |   |
| Total liabilities                                                                                                                                                                                      |   |     | 2,101,515 |   |         |   | 2,033,871 |   |
| Shareholders’ Equity                                                                                                                                                                             |   |     |      |   |         |   |   |   |
| Preferred stock, no par value1,000,000 shares authorized; 30,000 Series A shares issued and outstanding at June 30, 2009; Liquidation preference of $30,000 at June 30, 2009                           |   |     | 28,171    |   |         |   |   |   |
| Common stock, par value $.125 per share   9,608,000 shares authorized;  7,367,067 and 7,357,362 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively |   |     | 921       |   |         |   | 920 |   |
| Capital surplus                                                                                                                                                                                        |   |     | 50,321    |   |         |   | 48,222 |   |
| Retained earnings                                                                                                                                                                                      |   |     | 114,368   |   |         |   | 116,419 |   |
| Accumulated other comprehensive income                                                                                                                                                                 |   |     | 896       |   |         |   | 2,735 |   |
| Total shareholders’ equity                                                                                                                                                                       |   |     | 194,677   |   |         |   | 168,296 |   |
| Total liabilities and shareholders’ equity                                                                                                                                                       |   | $        | 2,296,192 |   |         | $      | 2,202,167 |   |

----

Unaudited Consolidated Statements of Operations

|                                                                                      |   | Three Months Ended |   |   | Six Months Ended |   |
|-------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                                      |   | June 30,           |   |   | June 30,         |   |
| (In thousands, except per share data)                                                     |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Interest Income                                                                           |   |               |   |   |             |   |   |   |   |   |   |   |
| Interest and fees on loans                                                                |   | $                  | 19,388 |   |             | $      | 21,960 |   |   | $ | 39,336 |   |   | $ | 44,736 |   |
| Interest on investment securities:                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                   |   |               | 5,057  |   |             |   | 5,964 |   |   |   | 10,540 |   |   |   | 11,831 |   |
| Nontaxable                                                                                |   |               | 949    |   |             |   | 827 |   |   |   | 1,768 |   |   |   | 1,651 |   |
| Interest on deposits in other banks                                                       |   |               | 74     |   |             |   | 10 |   |   |   | 147 |   |   |   | 24 |   |
| Interest of federal funds sold and securities purchased under agreements to resell        |   |               | 11     |   |             |   | 276 |   |   |   | 17 |   |   |   | 830 |   |
| Total interest income                                                                     |   |               | 25,479 |   |             |   | 29,037 |   |   |   | 51,808 |   |   |   | 59,072 |   |
| Interest Expense                                                                          |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                                                      |   |               | 8,575  |   |             |   | 9,757 |   |   |   | 17,155 |   |   |   | 20,709 |   |
| Interest on federal funds purchased and other short-term borrowings                       |   |               | 121    |   |             |   | 447 |   |   |   | 237 |   |   |   | 1,153 |   |
| Interest on securities sold under agreements to repurchase and other long-term borrowings |   |               | 2,813  |   |             |   | 2,818 |   |   |   | 5,628 |   |   |   | 5,644 |   |
| Interest on subordinated notes payable to unconsolidated trusts                           |   |               | 567    |   |             |   | 664 |   |   |   | 1,146 |   |   |   | 1,460 |   |
| Total interest expense                                                                    |   |               | 12,076 |   |             |   | 13,686 |   |   |   | 24,166 |   |   |   | 28,966 |   |
| Net interest income                                                                       |   |               | 13,403 |   |             |   | 15,351 |   |   |   | 27,642 |   |   |   | 30,106 |   |
| Provision for loan losses                                                                 |   |               | 5,940  |   |             |   | 483 |   |   |   | 7,616 |   |   |   | 1,585 |   |
| Net interest income after provision for loan losses                                       |   |               | 7,463  |   |             |   | 14,868 |   |   |   | 20,026 |   |   |   | 28,521 |   |
| Noninterest Income                                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Service charges and fees on deposits                                                      |   |               | 2,336  |   |             |   | 2,486 |   |   |   | 4,522 |   |   |   | 4,864 |   |
| Allotment processing fees                                                                 |   |               | 1,375  |   |             |   | 1,166 |   |   |   | 2,647 |   |   |   | 2,331 |   |
| Other service charges, commissions, and fees                                              |   |               | 1,110  |   |             |   | 1,119 |   |   |   | 2,157 |   |   |   | 2,226 |   |
| Data processing income                                                                    |   |               | 372    |   |             |   | 305 |   |   |   | 661 |   |   |   | 585 |   |
| Trust income                                                                              |   |               | 602    |   |             |   | 533 |   |   |   | 1,037 |   |   |   | 1,050 |   |
| Investment securities gains, net                                                          |   |               | 1,304  |   |             |   | 214 |   |   |   | 2,058 |   |   |   | 580 |   |
| Gains on sale of mortgage loans, net                                                      |   |               | 345    |   |             |   | 101 |   |   |   | 691 |   |   |   | 226 |   |
| Income from company-owned life insurance                                                  |   |               | 333    |   |             |   | 312 |   |   |   | 658 |   |   |   | 613 |   |
| Other                                                                                     |   |               | 48     |   |             |   | (45 | ) |   |   | 119 |   |   |   | 103 |   |
| Total noninterest income                                                                  |   |               | 7,825  |   |             |   | 6,191 |   |   |   | 14,550 |   |   |   | 12,578 |   |
| Noninterest Expense                                                                       |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                            |   |               | 7,352  |   |             |   | 7,557 |   |   |   | 14,876 |   |   |   | 15,108 |   |
| Occupancy expenses, net                                                                   |   |               | 1,394  |   |             |   | 1,064 |   |   |   | 2,717 |   |   |   | 2,200 |   |
| Equipment expenses                                                                        |   |               | 770    |   |             |   | 753 |   |   |   | 1,525 |   |   |   | 1,467 |   |
| Data processing and communication expenses                                                |   |               | 1,390  |   |             |   | 1,252 |   |   |   | 2,836 |   |   |   | 2,563 |   |
| Bank franchise tax                                                                        |   |               | 565    |   |             |   | 477 |   |   |   | 1,122 |   |   |   | 896 |   |
| Deposit insurance expense                                                                 |   |               | 1,709  |   |             |   | 108 |   |   |   | 2,161 |   |   |   | 175 |   |
| Correspondent bank fees                                                                   |   |               | 298    |   |             |   | 293 |   |   |   | 601 |   |   |   | 508 |   |
| Amortization of intangibles                                                               |   |               | 488    |   |             |   | 650 |   |   |   | 976 |   |   |   | 1,301 |   |
| Other                                                                                     |   |               | 2,197  |   |             |   | 2,238 |   |   |   | 4,461 |   |   |   | 4,554 |   |
| Total noninterest expense                                                                 |   |               | 16,163 |   |             |   | 14,392 |   |   |   | 31,275 |   |   |   | 28,772 |   |
| (Loss) income before income taxes                                                         |   |               | (875   | )      |             |   | 6,667 |   |   |   | 3,301 |   |   |   | 12,327 |   |
| Income tax (benefit) expense                                                              |   |               | (74    | )      |             |   | 1,767 |   |   |   | 797 |   |   |   | 3,051 |   |
| Net (loss) income                                                                         |   |               | (801   | )      |             |   | 4,900 |   |   |   | 2,504 |   |   |   | 9,276 |   |
| Dividends and accretion on preferred shares                                               |   |               | (462   | )      |             |   |   |   |   |   | (876 | ) |   |   |   |   |
| Net (loss) income available to common shareholders                                        |   | $                  | (1,263 | )      |             | $      | 4,900 |   |   | $ | 1,628 |   |   | $ | 9,276 |   |
| Per Common Share                                                                          |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income, basic and diluted                                                      |   | $                  | (.17   | )      |             | $      |  .67 |   |   | $ | .22 |   |   | $ | 1.26 |   |
| Cash dividends declared                                                                   |   |               | .25    |   |             |   | .33 |   |   |   | .50 |   |   |   | .66 |   |
| Weighted Average Common Shares Outstanding                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                                         |   |               | 7,363  |   |             |   | 7,350 |   |   |   | 7,360 |   |   |   | 7,362 |   |

----

Unaudited Consolidated Statements of Comprehensive (Loss) Income

|                                                                                                                                                      |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                                                                                                      |   | June 30,           |   |   | June 30,         |   |
| (In thousands)                                                                                                                                            |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Net (Loss) Income                                                                                                                                         |   | $                  | (801   | )      |             | $      | 4,900 |   |   | $ | 2,504 |   |   | $ | 9,276 |   |
| Other comprehensive income:                                                                                                                               |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized holding gain (loss) on available for sale securities arising during the period, net of tax of $422, $3,423, $114, and $1,020, respectively |   |               | 784    |   |             |   | (6,357 | ) |   |   | (211 | ) |   |   | (1,895 | ) |
|                                                                                                                                                      |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment for prior period unrealized gain recognized during current period, net of tax of $669, $95, $954, and $73, respectively       |   |               | (1,242 | )      |             |   | (176 | )  |   |   | (1,772 | ) |   |   | (135 | )  |
|                                                                                                                                                      |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Change in unfunded portion of postretirement benefit obligation, net of tax of $39, $44, $78 and $88, respectively                                        |   |               | 72     |   |             |   | 82 |   |   |   | 144 |   |   |   | 163 |   |
| Other comprehensive loss                                                                                                                                  |   |               | (386   | )      |             |   | (6,451 | ) |   |   | (1,839 | ) |   |   | (1,867 | ) |
| Comprehensive (Loss) Income                                                                                                                               |   | $                  | (1,187 | )      |             | $      | (1,551 | ) |   | $ | 665 |   |   | $ | 7,409 |   |

----

Unaudited Consolidated Statements of Cash Flows

| Six months ended June 30, (In thousands)                                              |   | 2009   |         |   | 2008   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
| Cash Flows from Operating Activities                                                  |   |   |         |   |   |   |
| Net income                                                                            |   | $      | 2,504        |   |   | $      | 9,276 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:     |   |   |         |   |   |   |   |   |
| Depreciation and amortization                                                         |   |   | 3,216        |   |   |   | 3,215 |   |
| Net amortization of investment security premiums and (discounts):                     |   |   |         |   |   |   |   |   |
| Available for sale                                                                    |   |   | 139          |   |   |   | (368 | ) |
| Held to maturity                                                                      |   |   | (1           | )      |   |   |   |   |
| Provision for loan losses                                                             |   |   | 7,616        |   |   |   | 1,585 |   |
| Noncash compensation expense                                                          |   |   | 26           |   |   |   | 27 |   |
| Mortgage loans originated for sale                                                    |   |   | (30,747      | )      |   |   | (11,436 | ) |
| Proceeds from sale of mortgage loans                                                  |   |   | 28,728       |   |   |   | 8,127 |   |
| Deferred income tax expense                                                           |   |   | 1,706        |   |   |   | 1,705 |   |
| Gain on sale of mortgage loans, net                                                   |   |   | (691         | )      |   |   | (226 | ) |
| Loss on disposal of premises and equipment, net                                       |   |   | 55           |   |   |   | 19 |   |
| Loss (gain) on sale of repossessed assets                                             |   |   | 140          |   |   |   | (44 | )  |
| Gain on sale of available for sale investment securities, net                         |   |   | (2,058       | )      |   |   | (580 | ) |
| Decrease in accrued interest receivable                                               |   |   | 1,515        |   |   |   | 603 |   |
| Income from company-owned life insurance                                              |   |   | (609         | )      |   |   | (604 | ) |
| Decrease (increase) in other assets                                                   |   |   | 3,080        |   |   |   | (3,568 | ) |
| (Decrease) in accrued interest payable                                                |   |   | (153         | )      |   |   | (944 | ) |
| Increase (decrease) in other liabilities                                              |   |   | 1,798        |   |   |   | (689 | ) |
| Net cash provided by operating activities                                             |   |   | 16,264       |   |   |   | 6,098 |   |
| Cash Flows from Investing Activities                                                  |   |   |         |   |   |   |   |   |
| Proceeds from maturities and calls of investment securities:                          |   |   |         |   |   |   |   |   |
| Available for sale                                                                    |   |   | 93,139       |   |   |   | 140,078 |   |
| Held to maturity                                                                      |   |   | 250          |   |   |   | 540 |   |
| Proceeds from sale of available for sale investment securities                        |   |   | 109,236      |   |   |   | 21,512 |   |
| Purchase of available for sale investment securities                                  |   |   | (220,123     | )      |   |   | (165,399 | ) |
| Loans originated for investment, net of principal collected                           |   |   | (8,165       | )      |   |   | (16,289 | )    |
| Additions to mortgage servicing rights, net                                           |   |   | (169         | )      |   |   | (31 | ) |
| Purchase of premises and equipment                                                    |   |   | (1,250       | )      |   |   | (4,013 | ) |
| Proceeds from sale of repossessed assets                                              |   |   | 834          |   |   |   | 1,509 |   |
| Proceeds from sale of equipment                                                       |   |   | 29           |   |   |   | 19 |   |
| Net cash used in investing activities                                                 |   |   | (26,219      | )      |   |   | (22,074 | ) |
| Cash Flows from Financing Activities                                                  |   |   |         |   |   |   |   |   |
| Net increase in deposits                                                              |   |   | 44,150       |   |   |   | 39,517 |   |
| Net increase in federal funds purchased and other short-term borrowings               |   |   | 28,369       |   |   |   | 3,171 |   |
| Proceeds from securities sold under agreements to repurchase and other long-term debt |   |   |         |   |   |   | 19,000 |   |
| Repayments of securities sold under agreements to repurchase and other long-term debt |   |   | (5,899       | )      |   |   | (7,352 | ) |
| Proceeds from issuance of preferred stock, net of issue costs                         |   |   | 29,961       |   |   |   |   |   |
| Dividends paid, common and preferred                                                  |   |   | (4,792       | )      |   |   | (4,869 | ) |
| Purchase of common stock                                                              |   |   |         |   |   |   | (1,049 | ) |
| Shares issued under Employee Stock Purchase Plan                                      |   |   | 122          |   |   |   | 125 |   |
| Net cash provided by financing activities                                             |   |   | 91,911       |   |   |   | 48,543 |   |
| Net increase in cash and cash equivalents                                             |   |   | 81,956       |   |   |   | 32,567 |   |
| Cash and cash equivalents at beginning of year                                        |   |   | 190,775      |   |   |   | 79,140 |   |
| Cash and cash equivalents at end of period                                            |   | $      | 272,731      |   |   | $      | 111,707 |   |
| Supplemental Disclosures                                                              |   |   |         |   |   |   |   |   |
| Cash paid during the period for:                                                      |   |   |         |   |   |   |   |   |
| Interest                                                                              |   | $      |  24,319 |   |   | $      | 29,910 |   |
| Income taxes                                                                          |   |   | 2,450        |   |   |   | 4,200 |   |
| Transfers from loans to repossessed assets                                            |   |   | 5,023        |   |   |   | 5,894 |   |
| Transfers from premises to repossessed assets                                         |   |   | 1,506        |   |   |   |   |   |
| Cash dividends payable, common and preferred                                          |   |   | 2,028        |   |   |   | 2,426 |   |

----

Unaudited Consolidated Statements of Changes in Shareholders’ Equity

| (Dollars in thousands, except per share data)                           |   |      |   |   |         |   |   |    |   |   |     |   |   | Accumulated   |   |   |                |    |
|-------------------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|--------|---------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------------|---------|
|                                                                    |   |      |   |   |         |   |   |    |   |   |     |   |   | Other         |   |   | Total               |    |
| Six months ended                                                        |   | Preferred |   |   | Common Stock |   |   | Capital |   |   | Retained |   |   | Comprehensive |   |   | Shareholders’ |    |
| June 30, 2009 and 2008                                                  |   | Stock     |   |   | Shares       |   |   | Amount  |   |   | Surplus  |   |   | Earnings      |   |   | Income (Loss)       |    |   | Equity |   |
| Balance at January 1, 2009                                              |   |      |   |   |         | 7,357  |   |    | $      | 920    |     |   | $      | 48,222        |   |   | $                   | 116,419 |   |   | $ | 2,735 |   |   | $ | 168,296 |   |
| Issuance of 30,000 shares of Series A preferred stock                   |   | $         | 30,000 |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   | 30,000 |   |
| Initial unearned discount on preferred stock                            |   |      | (1,991 | )      |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   | (1,991 | ) |
| Issuance of common stock warrant                                        |   |      |   |   |         |   |   |    |   |   |     |   |   |          | 1,952  |   |                |    |   |   |   |   |   |   |   |   | 1,952 |   |
| Net income                                                              |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | 2,504 |   |   |   |   |   |   |   | 2,504 |   |
| Other comprehensive loss                                                |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   | (1,839 | ) |   |   | (1,839 | ) |
| Cash dividends declared-common, $.50 per share                          |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | (3,680 | ) |   |   |   |   |   |   | (3,680 | ) |
| Preferred stock dividends                                               |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | (713 | ) |   |   |   |   |   |   | (713 | ) |
| Preferred stock discount accretion                                      |   |      | 162    |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | (162 | ) |   |   |   |   |   |   |   |   |
| Shares issued pursuant to Employee Stock Purchase Plan                  |   |      |   |   |         |   | 10     |    |   |   | 1        |   |   |          | 121    |   |                |    |   |   |   |   |   |   |   |   | 122 |   |
| Noncash compensation expense attributed to Employee Stock Purchase Plan |   |      |   |   |         |   |   |    |   |   |     |   |   |          | 26     |   |                |    |   |   |   |   |   |   |   |   | 26 |   |
| Balance at June 30, 2009                                                |   | $         | 28,171 |   |         |   | 7,367  |    |   | $      | 921      |   |   | $             | 50,321 |   |                | $       | 114,368 |   |   | $ | 896 |   |   | $ | 194,677 |   |
|                                                                    |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2008                                              |   |      |   |   |         |   | 7,385  |    |   | $      | 923      |   |   | $             | 48,176 |   |                | $       | 122,498 |   |   | $ | (3,106 | )  |   | $ | 168,491 |   |
| Net income                                                              |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | 9,276 |   |   |   |   |   |   |   | 9,276 |   |
| Other comprehensive loss                                                |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   | (1,867 | )  |   |   | (1,867 | ) |
| Cash dividends declared, $.66 per share                                 |   |      |   |   |         |   |   |    |   |   |     |   |   |          |   |   |                |    | (4,859 | ) |   |   |   |   |   |   | (4,859 | ) |
| Purchase of common stock                                                |   |      |   |   |         |   | (43    | )       |   |   | (5       | )      |   |          | (281   | )      |                |    | (763 | ) |   |   |   |   |   |   | (1,049 | ) |
| Shares issued pursuant to Employee Stock Purchase Plan                  |   |      |   |   |         |   | 7      |    |   |   | 1        |   |   |          | 124    |   |                |    |   |   |   |   |   |   |   |   | 125 |   |
| Noncash compensation expense attributed to Employee Stock Purchase Plan |   |      |   |   |         |   |   |    |   |   |     |   |   |          | 27     |   |                |    |   |   |   |   |   |   |   |   | 27 |   |
| Balance at June 30, 2008                                                |   |      |   |   |         |   | 7,349  |    |   | $      | 919      |   |   | $             | 48,046 |   |                | $       | 126,152 |   |   | $ | (4,973 | )  |   | $ | 170,144 |   |

----

Notes to Unaudited Consolidated Financial Statements

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

----

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

| 3. | Recently Issued But Not Yet Effective Accounting Standards |
|----|------------------------------------------------------------|

----

| 4. | Adoption of New Accounting Standards |
|----|--------------------------------------|

|   | · | Requires that assets acquired and liabilities assumed in a business combination that arise from contingencies be recognized at fair value if fair value can be reasonably estimated. If fair value of such an asset or liability cannot be reasonably estimated, the asset or liability would generally be recognized in accordance with SFAS No. 5, “Accounting for Contingencies”,and FASB Interpretation No. 14, “Reasonable Estimation of the Amount of a Loss”. Further, the FASB decided to remove the subsequent accounting guidance for assets and liabilities arising from contingencies from Statement 141(R), and carry forward without significant revision the guidance in SFAS No. 141. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Eliminates the requirement to disclose an estimate of the range of outcomes of recognized contingencies at the acquisition date. For unrecognized contingencies, the FASB decided to require that entities include only the disclosures required by Statement 5 and that those disclosures be included in the business combination footnote. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires that contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination be treated as contingent consideration of the acquirer and should be initially and subsequently measured at fair value in accordance with SFAS No. 141(R). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Affirms that the objective of fair value when the market for an asset is not active is the price that would be received to sell the asset in an orderly transaction. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Clarifies and includes additional factors for determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Eliminates the proposed presumption that all transactions are distressed (not orderly) unless proven otherwise. The FSP instead requires an entity to base its conclusion about whether a transaction was not orderly on the weight of the evidence. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Includes an example that provides additional explanation on estimating fair value when the market activity for an asset has declined significantly. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires an entity to disclose a change in valuation technique (and the related inputs) resulting from the application of the FSP and to quantify its effects, if practicable. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Applies to all fair value measurements when appropriate. |
|--------|--------|----------------------------------------------------------|

|   | · | Changes existing guidance for determining whether impairment is other than temporary for debt securities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Replaces the existing requirement that the entity’s management assert it has both the intent and ability to hold an impaired security until recovery with a requirement that management assert: (a) it does not have the intent to sell the security; and (b) it is more likely than not it will not haveto sell the security before recovery of its cost basis; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incorporates examples of factors from existing literature that should be considered in determining whether a debt security is other-than-temporarily impaired; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires that an entity recognize noncredit losses on held-to-maturity debt securities in other comprehensive income and amortize that amount over the remaining life of the security in a prospective manner by offsetting the recorded value of the asset unless the security is subsequently sold or there are additional credit losses; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires an entity to present the total other-than-temporary impairment in the statement of earnings with an offset for the amount recognized in other comprehensive income; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | When adopting FSP FAS 115-2 and FAS 124-2, an entity is required to record a cumulative-effect adjustment as of the beginning of the period of adoption to reclassify the noncredit component of a previously recognized other-temporary impairment from retained earnings to accumulated other comprehensive income if the entity does not intend to sell the security and it is not more likely than not that the entity willbe required to sell the security before recovery. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The disclosures that an entity should make about events or transactions that occurred after the balance sheet date. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

----

|                                                                  |   | Three Months EndedJune 30, |       |   | Six Months EndedJune 30, |   |
|-----------------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
| (In thousands, except per share data)                                 |   | 2009                       |       |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Net (loss) income, basic and diluted                                  |   | $                          | (801       | )      |                     | $      | 4,900 |   |   | $ | 2,504 |   |   | $ | 9,276 |   |
| Preferred stock dividends and discount accretion                      |   |                       | (462       | )      |                     |   |   |   |   |   | (876 | ) |   |   |   |   |
| Net (loss) income available to common shareholders, basic and diluted |   | $                          | (1,263     | )      |                     | $      | 4,900 |   |   | $ | 1,628 |   |   | $ | 9,276 |   |
|                                                                  |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Average common shares outstanding, basic and diluted                  |   |                       | 7,363      |   |                     |   | 7,350 |   |   |   | 7,360 |   |   |   | 7,362 |   |
|                                                                  |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per common share, basic and diluted                 |   | $                          | (. 17 | )      |                     | $      | .67 |   |   | $ | .22 |   |   | $ | 1.26 |   |

|   | Level 1: | Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2: | Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | U.S. Treasury securities are priced using dealer quotes from active market makers and real-time trading systems. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | Marketable equity securities are priced utilizing real-time data feeds from active market exchanges for identical securities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Government-sponsored agency debt securities, obligations of states and political subdivisions, corporate bonds, and other similar investment securities are priced with available market information through processes using benchmark yields, matrix pricing, prepayment speeds, cash flows, live trading data, and market spreads sourced from new issues, dealer quotes, and trade prices, among others sources. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investments in the Federal Reserve Bank, Federal Home Loan Bank, and other similar stock totaling $9.1 million and $8.9 million at June 30, 2009 and December 31, 2008, respectively, are carried at cost and not included in the table below as they are outside the scope of SFAS No. 157. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   |       |    |   | Fair Value Measurements Using                                 |   |
|--------------------------------------------------------------------------|--------|------------|---------|--------|---------------------------------------------------------------|--------|
| (In thousands)   Available For Sale Investment Securities |   | Fair Value |    |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| June 30, 2009                                                            |   |       |    |   |                                                          |   |   |   |   |   |   |   |
| U.S. Treasury securities                                                 |   | $          | 19,151  |   |                                                          | $      | 19,151 |   |   |   |   |   |   |   |
| Obligations of U.S. government-sponsored entities                        |   |       | 42,544  |   |                                                          |   |   |   |   | $ | 42,544 |   |   |   |   |
| Obligations of states and political subdivisions                         |   |       | 109,254 |   |                                                          |   |   |   |   |   | 109,254 |   |   |   |   |
| Mortgage-backed securities – residential                           |   |       | 354,117 |   |                                                          |   |   |   |   |   | 354,117 |   |   |   |   |
| Money market mutual funds                                                |   |       | 891     |   |                                                          |   |   |   |   |   | 891 |   |   |   |   |
| Corporate debt securities                                                |   |       | 15,836  |   |                                                          |   |   |   |   |   | 15,836 |   |   |   |   |
| Total                                                                    |   | $          | 541,793 |   |                                                          | $      | 19,151 |   |   | $ | 522,642 |   |   | $ | 0 |   |
|                                                                     |   |       |    |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                                                        |   | $          | 525,353 |   |                                                          | $      | 10,256 |   |   | $ | 515,097 |   |   | $ | 0 |   |

----

----

|                                                                          |   |          |      |   |              |   |
|-------------------------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                                          |   | June 30, 2009 |      |   | December 31, 2008 |   |
|                                                                          |   | Carrying      |      |   | Fair              |   |   | Carrying |   |   | Fair |   |
| (In thousands)                                                                |   | Amount        |      |   | Value             |   |   | Amount |   |   | Value |   |
| Assets                                                                        |   |          |      |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                     |   | $             | 272,731   |   |              | $      | 272,731 |   |   | $ | 190,775 |   |   | $ | 190,775 |   |
| Investment securities:                                                        |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| FHLB and similar stock                                                        |   |          | 9,118     |   |              |   | N/A |   |   |   | 8,942 |   |   |   | N/A |   |
| Held to maturity                                                              |   |          | 1,565     |   |              |   | 1,454 |   |   |   | 1,814 |   |   |   | 1,667 |   |
| Loans, net                                                                    |   |          | 1,293,988 |   |              |   | 1,301,378 |   |   |   | 1,295,752 |   |   |   | 1,309,604 |   |
| Accrued interest receivable                                                   |   |          | 10,653    |   |              |   | 10,653 |   |   |   | 12,168 |   |   |   | 12,168 |   |
|                                                                          |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                   |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                      |   |          | 1,638,265 |   |              |   | 1,646,595 |   |   |   | 1,594,115 |   |   |   | 1,601,567 |   |
| Federal funds purchased and other short-term borrowings                       |   |          | 105,843   |   |              |   | 105,843 |   |   |   | 77,474 |   |   |   | 77,474 |   |
| Securities sold under agreements to repurchase and other long-term borrowings |   |          | 280,792   |   |              |   | 297,268 |   |   |   | 286,691 |   |   |   | 311,259 |   |
| Subordinated notes payable to unconsolidated trusts                           |   |          | 48,970    |   |              |   | 29,820 |   |   |   | 48,970 |   |   |   | 18,518 |   |
| Accrued interest payable                                                      |   |          | 5,658     |   |              |   | 5,658 |   |   |   | 5,811 |   |   |   | 5,811 |   |

----

|                                              |   |      |    |   |             |   |     |              |   |   |       |   |
|---------------------------------------------------|--------|-----------|---------|--------|------------------|--------|----------|-------------------|--------|--------|------------|--------|
|                                              |   | Amortized |    |   | Gross            |   |     | Gross             |   |   | Estimated  |   |
| June 30, 2009 (In thousands)                      |   | Cost      |    |   | Unrealized Gains |   |     | Unrealized Losses |   |   | Fair Value |   |
| Available For Sale                                |   |      |    |   |             |   |     |              |   |   |       |   |
| Obligations of U.S. government-sponsored entities |   | $         | 42,572  |   |             | $      |  94 |              |   | $      | 122        |   |   | $ | 42,544 |   |
| Obligations of states and political subdivisions  |   |      | 108,682 |   |             |   | 1,590    |              |   |   | 1,018      |   |   |   | 109,254 |   |
| Mortgage-backed securities – residential    |   |      | 345,890 |   |             |   | 8,694    |              |   |   | 467        |   |   |   | 354,117 |   |
| U.S. Treasury securities                          |   |      | 19,140  |   |             |   | 11       |              |   |   |       |   |   |   | 19,151 |   |
| Money market mutual funds                         |   |      | 891     |   |             |   |     |              |   |   |       |   |   |   | 891 |   |
| Corporate debt securities                         |   |      | 20,072  |   |             |   | 52       |              |   |   | 4,288      |   |   |   | 15,836 |   |
| Equity securities                                 |   |      | 9,118   |   |             |   |     |              |   |   |       |   |   |   | 9,118 |   |
| Total securities – available for sale       |   | $         | 546,365 |   |             | $      | 10,441   |              |   | $      | 5,895      |   |   | $ | 550,911 |   |
| Held To Maturity                                  |   |      |    |   |             |   |     |              |   |   |       |   |   |   |   |   |
| Obligations of states and political subdivisions  |   | $         | 1,565   |   |             | $      | 7        |              |   | $      | 118        |   |   | $ | 1,454 |   |

|                                   |   |               |    |   |             |   |
|----------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                   |   | Available For Sale |    |   | Held To Maturity |   |
|                                   |   | Amortized          |    |   | Estimated        |   |   | Amortized |   |   | Estimated |   |
| June 30, 2009 (In thousands)           |   | Cost               |    |   | Fair Value       |   |   | Cost |   |   | Fair Value |   |
| Due in one year or less                |   | $                  | 15,723  |   |             | $      | 15,819 |   |   | $ | 540 |   |   | $ | 547 |   |
| Due after one year through five years  |   |               | 83,628  |   |             |   | 84,676 |   |   |   |   |   |   |   |   |   |
| Due after five years through ten years |   |               | 34,058  |   |             |   | 33,998 |   |   |   |   |   |   |   |   |   |
| Due after ten years                    |   |               | 57,948  |   |             |   | 53,183 |   |   |   | 1,025 |   |   |   | 907 |   |
| Mortgage-backed securities             |   |               | 345,890 |   |             |   | 354,117 |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $                  | 537,247 |   |             | $      | 541,793 |   |   | $ | 1,565 |   |   | $ | 1,454 |   |

|                                                           |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                           |   | June 30,           |   |   | June 30,         |   |
| (In thousands)                                                 |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Gross realized gains                                           |   | $                  | 1,328  |   |             | $      | 218 |   |   | $ | 2,101 |   |   | $ | 684 |   |
| Gross realized losses                                          |   |               | 24     |   |             |   | 4 |   |   |   | 43 |   |   |   | 104 |   |
| Net realized gains                                             |   | $                  | 1,304  |   |             | $      | 214 |   |   | $ | 2,058 |   |   | $ | 580 |   |
|                                                           |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of available for sale investment securities |   | $                  | 52,841 |   |             | $      | 7,127 |   |   | $ | 109,236 |   |   | $ | 21,512 |   |

----

|                                              |   |                |   |   |              |   |   |       |   |
|---------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
|                                              |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total      |   |
|  June 30, 2009 (In thousands)                |   | Fair Value          |   |   | UnrealizedLosses  |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| Obligations of U.S. government-sponsored entities |   | $                   | 10,952 |   |              | $      | 122    |       |   |   |   |   |   |   |   | $ | 10,952 |   |   | $ | 122 |   |
| Obligations of states and political subdivisions  |   |                | 34,251 |   |              |   | 884    |       |   | $ | 3,614 |   |   | $ | 252 |   |   |   | 37,865 |   |   |   | 1,136 |   |
| Mortgage-backed securities – residential    |   |                | 39,207 |   |              |   | 467    |       |   |   |   |   |   |   |   |   |   |   | 39,207 |   |   |   | 467 |   |
| Corporate debt securities                         |   |                | 3,735  |   |              |   | 697    |       |   |   | 9,933 |   |   |   | 3,591 |   |   |   | 13,668 |   |   |   | 4,288 |   |
| Total                                             |   | $                   | 88,145 |   |              | $      | 2,170  |       |   | $ | 13,547 |   |   | $ | 3,843 |   |   | $ | 101,692 |   |   | $ | 6,013 |   |

|   | 1. | the length of time and the extent to which the fair value has been less than cost, |
|--------|----|------------------------------------------------------------------------------------|

|   | 2. | the financial condition and near-term prospects of the issuer, |
|--------|----|----------------------------------------------------------------|

|   | 3. | whether market decline was effected by macroeconomic conditions, and |
|--------|----|----------------------------------------------------------------------|

|   | 4. | whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 9. | Subsequent Event |
|--------|----|------------------|

----

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

|   | § | The $.84 decrease in per common share earnings in the second quarter of 2009 compared to the second quarter a year ago is driven mainly by a $5.5 million increase in the provision for loan losses, a decrease in net interest income of $1.9 million, and higher deposit insurance expense of $1.6 million. In addition, preferred stock dividends and related accretion, which did not exist in the prior year, account for $.06of the decrease in per common share earnings. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The higher provision for loan losses is attributed to an increase in nonperforming assets, primarily nonaccrual loans secured by real estate developments. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The increase in deposit insurance expense was driven by a special assessment imposed by the Federal Deposit Insurance Corporation (“FDIC”) in the current quarter as part of its plan to replenish the Deposit Insurance Fund. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Margin compression, primarily due to a 107 basis point decline in the average rate earned on earning assets, lowered net interest income $1.9 million or 12.7%. Net interest margin declined to 2.85% compared to 3.43% a year ago. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest income increased $1.6 million or 26.4%, mainly attributed to higher securities gains and moderate increases in other fee income categories. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest expenses increased $1.8 million or 12.3% due mainly to the increase in deposit insurance premiums. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | § | Income tax expense decreased $1.8 million due to the net loss in the current quarter. |
|--------|--------|---------------------------------------------------------------------------------------|

----

|   | § | Return on average assets (“ROA”) and equity (“ROE”) was -.14% and -1.62%, respectively compared to .92% and 11.35% for the previous-year quarter. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Net interest spread and margin for the current quarter was 2.61% and 2.85%, respectively compared to 3.17% and 3.43% a year earlier. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

----

| Quarter Ended June 30,                                                                                                                  |   | 2009           |          |   | 2008     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------------|--------|----------|--------|
|  (In thousands)                                                                                                                    |   | AverageBalance |          |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Earning Assets                                                                                                                          |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                                                                                   |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                 |   | $              | 429,124       |   |     | $      | 5,057 |   |   |   | 4.73 | % |   | $ | 431,778 |   |   | $ | 5,964 |   |   |   | 5.54 | % |
| Nontaxable1                                                                                                                             |   |           | 102,456       |   |     |   | 1,378 |   |   |   | 5.39 |   |   |   | 88,604 |   |   |   | 1,191 |   |   |   | 5.39 |   |
| Time deposits with banks, federal funds sold and securities purchased under agreements to resell                                        |   |           | 130,324       |   |     |   | 85 |   |   |   | .26 |   |   |   | 56,058 |   |   |   | 286 |   |   |   | 2.05 |   |
| Loans1,2,3                                                                                                                              |   |           | 1,319,377     |   |     |   | 19,600 |   |   |   | 5.96 |   |   |   | 1,297,789 |   |   |   | 22,260 |   |   |   | 6.88 |   |
| Total earning assets                                                                                                                    |   |           | 1,981,281     |   |     | $      | 26,120 |   |   |   | 5.29 | % |   |   | 1,874,229 |   |   | $ | 29,701 |   |   |   | 6.36 | % |
| Allowance for loan losses                                                                                                               |   |           | (17,408       | )      |     |   |   |   |   |   |   |   |   |   | (14,517 | ) |   |   |   |   |   |   |   |   |
| Total earning assets, net of allowance for loan losses                                                                                  |   |           | 1,963,873     |   |     |   |   |   |   |   |   |   |   |   | 1,859,712 |   |   |   |   |   |   |   |   |   |
| Nonearning Assets                                                                                                                       |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                 |   |           | 101,294       |   |     |   |   |   |   |   |   |   |   |   | 83,623 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                             |   |           | 41,449        |   |     |   |   |   |   |   |   |   |   |   | 40,507 |   |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                            |   |           | 161,613       |   |     |   |   |   |   |   |   |   |   |   | 151,801 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                            |   | $              | 2,268,229     |   |     |   |   |   |   |   |   |   |   | $ | 2,135,643 |   |   |   |   |   |   |   |   |   |
| Interest Bearing Liabilities                                                                                                            |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing demand                                                                                                                 |   | $              | 253,952       |   |     | $      | 236 |   |   |   | .37 | % |   | $ | 267,294 |   |   | $ | 502 |   |   |   | 0.75 | % |
| Savings                                                                                                                                 |   |           | 258,814       |   |     |   | 492 |   |   |   | .76 |   |   |   | 267,405 |   |   |   | 876 |   |   |   | 1.31 |   |
| Time                                                                                                                                    |   |           | 896,176       |   |     |   | 7,847 |   |   |   | 3.51 |   |   |   | 777,327 |   |   |   | 8,379 |   |   |   | 4.32 |   |
| Federal funds purchased and other short-term borrowings                                                                                 |   |           | 65,675        |   |     |   | 121 |   |   |   | .74 |   |   |   | 80,577 |   |   |   | 447 |   |   |   | 2.23 |   |
| Securities sold under agreements to     repurchase and other long-term     borrowings |   |           |  333,416 |   |     |   |  3,380 |   |   |   |  4.07 |   |   |   |  327,214 |   |   |   |  3,482 |   |   |   |  4.27 |   |
| Total interest bearing liabilities                                                                                                      |   |           | 1,808,033     |   |     | $      | 12,076 |   |   |   | 2.68 | % |   |   | 1,719,817 |   |   | $ | 13,686 |   |   |   | 3.19 | % |
| Noninterest Bearing Liabilities                                                                                                         |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth of Kentucky deposits                                                                                                       |   |           | 41,282        |   |     |   |   |   |   |   |   |   |   |   | 42,900 |   |   |   |   |   |   |   |   |   |
| Other demand deposits                                                                                                                   |   |           | 184,363       |   |     |   |   |   |   |   |   |   |   |   | 176,702 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                       |   |           | 36,561        |   |     |   |   |   |   |   |   |   |   |   | 22,640 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                       |   |           | 2,070,239     |   |     |   |   |   |   |   |   |   |   |   | 1,962,059 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                              |   |           | 197,990       |   |     |   |   |   |   |   |   |   |   |   | 173,584 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                        |   | $              | 2,268,229     |   |     |   |   |   |   |   |   |   |   | $ | 2,135,643 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                                     |   |           |          |   |     |   | 14,044 |   |   |   |   |   |   |   |   |   |   |   | 16,015 |   |   |   |   |   |
| TE basis adjustment                                                                                                                     |   |           |          |   |     |   | (641 | ) |   |   |   |   |   |   |   |   |   |   | (664 | ) |   |   |   |   |
| Net interest income                                                                                                                     |   |           |          |   |     | $      | 13,403 |   |   |   |   |   |   |   |   |   |   | $ | 15,351 |   |   |   |   |   |
| Net interest spread                                                                                                                     |   |           |          |   |     |   |   |   |   |   | 2.61 | % |   |   |   |   |   |   |   |   |   |   | 3.17 | % |
| Impact of noninterest bearing sources of funds                                                                                          |   |           |          |   |     |   |   |   |   |   | .24 |   |   |   |   |   |   |   |   |   |   |   |  .26 |   |
| Net interest margin                                                                                                                     |   |           |          |   |     |   |   |   |   |   | 2.85 | % |   |   |   |   |   |   |   |   |   |   | 3.43 | % |

----

| (In thousands)                                                                                   |   | Variance |      |          | Variance Attributed to |   |
|--------------------------------------------------------------------------------------------------|--------|----------|-----------|---------------|------------------------|--------|
| Quarter Ended June 30,                                                                           |   |     | 2009/2008 | 1             |                   | Volume |   |   | Rate |   |
| Interest Income                                                                                  |   |     |      |          |                   |   |   |   |   |   |
| Taxable investment securities                                                                    |   | $        | (907      | )   |                   | $      | (37 | )   |   | $ | (870 | )   |
| Nontaxable investment securities2                                                                |   |     | 187       |          |                   |   | 187 |   |   |   |   |   |
| Time deposits with banks, federal funds sold and securities purchased under agreements to resell |   |     | (201      | )   |                   |   | 1,088 |   |   |   | (1,289 | )   |
| Loans2                                                                                           |   |     | (2,660    | )   |                   |   | 2,347 |   |   |   | (5,007 | )   |
| Total interest income                                                                            |   |     | (3,581    | )   |                   |   | 3,585 |   |   |   | (7,166 | )   |
| Interest Expense                                                                                 |   |     |      |          |                   |   |   |   |   |   |   |   |
| Interest bearing demand deposits                                                                 |   |     | (266      | )   |                   |   | (24 | )   |   |   | (242 | )   |
| Savings deposits                                                                                 |   |     | (384      | )   |                   |   | (27 | )   |   |   | (357 | )   |
| Time deposits                                                                                    |   |     | (532      | )   |                   |   | 5,417 |   |   |   | (5,949 | )   |
| Federal funds purchased and other short-term borrowings                                          |   |     | (326      | )   |                   |   | (71 | )   |   |   | (255 | )   |
| Securities sold under agreements to repurchase and other long-term borrowings               |   |     | (102      | )        |                   |   | 348 |   |   |   | (450 | )   |
| Total interest expense                                                                           |   |     | (1,610    | )   |                   |   | 5,643 |   |   |   | (7,253 | )   |
| Net interest income                                                                              |   | $        | (1,971    | )   |                   | $      | (2,058 | )   |   | $ | 87 |   |
| Percentage change                                                                                |   |     | 100.0     | %             |                   |   | 104.4 | % |   |   | (4.4 | )% |

----

----

|   | § | The $1.04 decrease in per common share earnings for the six-month period ended June 30, 2009 compared to the same period for 2008 is mainly attributed to a $6.0 million increase in the provision for loan losses, lower net interest income of $2.5 million, and higher deposit insurance expense of $2.0 million. In addition, preferred stock dividends and related accretion, which did not exist in the prior year, accountfor $.12 of the decrease in per common share earnings. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The higher provision for loan losses is attributed to a sharp increase in nonperforming assets, primarily nonaccrual loans secured by real estate developments. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The increase in deposit insurance expense was driven by the FDIC special assessment as mentioned in the quarterly discussion above. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Margin compression, primarily due to a 106 basis point decline in the average rate earned on earning assets, lowered net interest income $2.5 million or 8.2%. Net interest margin declined to 2.94% compared to 3.36% a year ago. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest income increased $2.0 million or 15.7%, driven by higher securities gains, allotment processing fees, and net gains on the sale of loans. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest expenses increased $2.5 million or 8.7% due mainly to the increase in deposit insurance. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | § | Income tax expense decreased $2.3 million due to an overall lower taxable position. The Company’s effective income tax rate was relatively unchanged at 24.1%. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | ROA and ROE was .22% and 2.57%, respectively in the current six months. This represents a decrease of 65 basis points in ROA and 825 basis points in ROE compared to the same period a year ago. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Net interest spread and margin for the current six months was 2.68% and 2.94%, respectively compared to 3.08% and 3.36% a year ago. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Six Months Ended June 30,                                                                                                                           |   | 2009           |          |   | 2008     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------------|--------|----------|--------|
|  (In thousands)                                                                                                                                |   | AverageBalance |          |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Earning Assets                                                                                                                                      |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                                                                                               |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                             |   | $              | 430,457       |   |     | $      | 10,540 |   |   |   | 4.94 | % |   | $ | 429,459 |   |   | $ | 11,831 |   |   |   | 5.54 | % |
| Nontaxable1                                                                                                                                         |   |           | 95,155        |   |     |   | 2,566 |   |   |   | 5.44 |   |   |   | 88,876 |   |   |   | 2,372 |   |   |   | 5.37 |   |
| Time deposits with banks, federal funds sold and securities purchased under agreements to resell                                                    |   |           | 137,860       |   |     |   | 164 |   |   |   | .24 |   |   |   | 64,763 |   |   |   | 854 |   |   |   | 2.65 |   |
| Loans1,2,3                                                                                                                                          |   |           | 1,317,491     |   |     |   | 39,742 |   |   |   | 6.08 |   |   |   | 1,296,851 |   |   |   | 45,321 |   |   |   | 7.03 |   |
| Total earning assets                                                                                                                                |   |           | 1,980,963     |   |     | $      | 53,012 |   |   |   | 5.40 | % |   |   | 1,879,949 |   |   | $ | 60,378 |   |   |   | 6.46 | % |
| Allowance for loan losses                                                                                                                           |   |           | (17,134       | )      |     |   |   |   |   |   |   |   |   |   | (14,321 | ) |   |   |   |   |   |   |   |   |
| Total earning assets, net of allowance for loan losses                                                                                              |   |           | 1,963,829     |   |     |   |   |   |   |   |   |   |   |   | 1,865,628 |   |   |   |   |   |   |   |   |   |
| Nonearning Assets                                                                                                                                   |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                             |   |           | 79,793        |   |     |   |   |   |   |   |   |   |   |   | 81,901 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                         |   |           | 42,177        |   |     |   |   |   |   |   |   |   |   |   | 39,881 |   |   |   |   |   |   |   |   |   |
| Other assets                                                                                                                                        |   |           | 161,222       |   |     |   |   |   |   |   |   |   |   |   | 148,738 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                        |   | $              | 2,247,021     |   |     |   |   |   |   |   |   |   |   | $ | 2,136,148 |   |   |   |   |   |   |   |   |   |
| Interest Bearing Liabilities                                                                                                                        |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                            |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing demand                                                                                                                             |   | $              | 254,757       |   |     | $      | 434 |   |   |   | .34 | % |   | $ | 267,364 |   |   | $ | 1,174 |   |   |   | 0.88 | % |
| Savings                                                                                                                                             |   |           | 255,412       |   |     |   | 973 |   |   |   | .77 |   |   |   | 263,340 |   |   |   | 1,908 |   |   |   | 1.46 |   |
| Time                                                                                                                                                |   |           | 880,717       |   |     |   | 15,748 |   |   |   | 3.61 |   |   |   | 780,273 |   |   |   | 17,627 |   |   |   | 4.54 |   |
| Federal funds purchased and other short-term borrowings                                                                                             |   |           | 67,998        |   |     |   | 237 |   |   |   | .70 |   |   |   | 85,225 |   |   |   | 1,153 |   |   |   | 2.72 |   |
| Securities sold under agreements to      repurchase and other long-term      borrowings |   |           |  334,482 |   |     |   |  6,774 |   |   |   |  4.08 |   |   |   |  326,175 |   |   |   |  7,104 |   |   |   |  4.38 |   |
| Total interest bearing liabilities                                                                                                                  |   |           | 1,793,366     |   |     | $      | 24,166 |   |   |   | 2.72 | % |   |   | 1,722,377 |   |   | $ | 28,966 |   |   |   | 3.38 | % |
| Noninterest Bearing Liabilities                                                                                                                     |   |           |          |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth of Kentucky deposits                                                                                                                   |   |           | 37,735        |   |     |   |   |   |   |   |   |   |   |   | 39,645 |   |   |   |   |   |   |   |   |   |
| Other demand deposits                                                                                                                               |   |           | 184,670       |   |     |   |   |   |   |   |   |   |   |   | 175,463 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                                   |   |           | 34,670        |   |     |   |   |   |   |   |   |   |   |   | 26,254 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                   |   |           | 2,050,441     |   |     |   |   |   |   |   |   |   |   |   | 1,963,739 |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                                                          |   |           | 196,580       |   |     |   |   |   |   |   |   |   |   |   | 172,409 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                    |   | $              | 2,247,021     |   |     |   |   |   |   |   |   |   |   | $ | 2,136,148 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                                                 |   |           |          |   |     |   | 28,846 |   |   |   |   |   |   |   |   |   |   |   | 31,412 |   |   |   |   |   |
| TE basis adjustment                                                                                                                                 |   |           |          |   |     |   | (1,204 | ) |   |   |   |   |   |   |   |   |   |   | (1,306 | ) |   |   |   |   |
| Net interest income                                                                                                                                 |   |           |          |   |     | $      | 27,642 |   |   |   |   |   |   |   |   |   |   | $ | 30,106 |   |   |   |   |   |
| Net interest spread                                                                                                                                 |   |           |          |   |     |   |   |   |   |   | 2.68 | % |   |   |   |   |   |   |   |   |   |   | 3.08 | % |
| Impact of noninterest bearing sources of funds                                                                                                      |   |           |          |   |     |   |   |   |   |   | .26 |   |   |   |   |   |   |   |   |   |   |   | .28 |   |
| Net interest margin                                                                                                                                 |   |           |          |   |     |   |   |   |   |   | 2.94 | % |   |   |   |   |   |   |   |   |   |   | 3.36 | % |

----

| (In thousands)                                                                                   |   | Variance |      |          | Variance Attributed to |   |
|--------------------------------------------------------------------------------------------------|--------|----------|-----------|---------------|------------------------|--------|
| Six Months Ended June 30,                                                                        |   |     | 2009/2008 | 1             |                   | Volume |   |   | Rate |   |
| Interest Income                                                                                  |   |     |      |          |                   |   |   |   |   |   |
| Taxable investment securities                                                                    |   | $        | (1,291    | )   |                   | $      | 81 |   |   | $ | (1,372 | ) |
| Nontaxable investment securities2                                                                |   |     | 194       |          |                   |   | 164 |   |   |   | 30 |   |
| Time deposits with banks, federal funds sold and securities purchased under agreements to resell |   |     | (690      | )   |                   |   | 1,347 |   |   |   | (2,037 | ) |
| Loans2                                                                                           |   |     | (5,579    | )   |                   |   | 2,008 |   |   |   | (7,587 | ) |
| Total interest income                                                                            |   |     | (7,366    | )   |                   |   | 3,600 |   |   |   | (10,966 | ) |
| Interest Expense                                                                                 |   |     |      |          |                   |   |   |   |   |   |   |   |
| Interest bearing demand deposits                                                                 |   |     | (740      | )   |                   |   | (53 | )  |   |   | (687 | ) |
| Savings deposits                                                                                 |   |     | (935      | )   |                   |   | (56 | )  |   |   | (879 | ) |
| Time deposits                                                                                    |   |     | (1,879    | )   |                   |   | 4,876 |   |   |   | (6,755 | ) |
| Federal funds purchased and other short-term borrowings                                     |   |     | (916      | )   |                   |   | (196 | )    |   |   | (720 | ) |
| Securities sold under agreements to repurchase and  other long-term borrowings         |   |     | (330      | )   |                   |   |  441 |   |   |   | (771 | ) |
| Total interest expense                                                                           |   |     | (4,800    | )   |                   |   | 5,012 |   |   |   | (9,812 | ) |
| Net interest income                                                                              |   | $        | (2,566    | )   |                   | $      | (1,412 | ) |   | $ | (1,154 | ) |
| Percentage change                                                                                |   |     | 100.0     | %             |                   |   | 55.0 | % |   |   | 45.0 | % |

----

----

----

|                                                             |   | June 30, 2009 |      |   | December 31, 2008 |   |
|------------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
| (Dollars in thousands)                                           |   | Amount        |      |   | %                 |   |   | Amount |   |   | % |   |
| Commercial, financial, and agriculture                           |   | $             | 141,645   |   |              |   | 10.8 | % |   | $ | 144,788 |   |   |   | 11.0 | % |
| Real estate – construction                                 |   |          | 251,625   |   |              |   | 19.1 |   |   |   | 260,524 |   |   |   | 19.9 |   |
| Real estate mortgage – residential                         |   |          | 454,882   |   |              |   | 34.6 |   |   |   | 444,487 |   |   |   | 33.9 |   |
| Real estate mortgage - farmland and other commercial enterprises |   |          | 398,658   |   |              |   | 30.3 |   |   |   | 390,424 |   |   |   | 29.7 |   |
| Installment                                                      |   |          | 40,881    |   |              |   | 3.1 |   |   |   | 45,135 |   |   |   | 3.4 |   |
| Lease financing                                                  |   |          | 27,615    |   |              |   | 2.1 |   |   |   | 27,222 |   |   |   | 2.1 |   |
| Total                                                       |   | $             | 1,315,306 |   |              |   | 100.0 | % |   | $ | 1,312,580 |   |   |   | 100.0 | % |

----

| (In thousands)                              |   | June 30, 2009 |   |   | December 31,2008 |   |   | Change |   |   | %      |   |
|---------------------------------------------|--------|--------------------|--------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|
| Nonaccrual                                  |   | $                  | 34,653 |   |             | $      | 21,545 |   |   | $      | 13,108 |   |   |   | 60.8 | % |
| Past due 90 days or more and still accruing |   |               | 9,651  |   |             |   | 3,913  |   |   |   | 5,738  |   |   |   | 146.6 |   |
| Total nonperforming loans                   |   | $                  | 44,304 |   |             | $      | 25,458 |   |   | $      | 18,846 |   |   |   | 74.0 | % |

----

|                |   | End of Period |      |   | Average          |   |
|---------------------|--------|---------------|-----------|--------|------------------|--------|
| (In thousands)      |   | June 30,2009  |      |   | December 31,2008 |   |   | Difference |   |   | (Six Months)June 30,2009 |   |   | (Twelve Months)December 31,2008 |   |   | Difference |   |
| Noninterest Bearing |   |          |      |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth        |   | $             | 46,301    |   |             | $      | 65,639 |   |   | $ | (19,338 | ) |   | $ | 37,735 |   |   | $ | 37,025 |   |   | $ | 710 |   |
| Other               |   |          | 185,349   |   |             |   | 175,879 |   |   |   | 9,470 |   |   |   | 184,670 |   |   |   | 177,347 |   |   |   | 7,323 |   |
| Total               |   | $             | 231,650   |   |             | $      | 241,518 |   |   | $ |  (9,868 | ) |   | $ | 222,405 |   |   | $ | 214,372 |   |   | $ | 8,033 |   |
|                |   |          |      |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Bearing    |   |          |      |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand              |   | $             | 240,913   |   |             | $      | 246,553 |   |   | $ | (5,640 | ) |   | $ | 254,756 |   |   | $ | 256,129 |   |   | $ | (1,373 | ) |
| Savings             |   |          | 251,546   |   |             |   | 255,550 |   |   |   | (4,004 | ) |   |   | 255,412 |   |   |   | 261,692 |   |   |   | (6,280 | ) |
| Time                |   |          | 914,156   |   |             |   | 850,494 |   |   |   | 63,662 |   |   |   | 880,717 |   |   |   | 793,561 |   |   |   | 87,156 |   |
| Total               |   | $             | 1,406,615 |   |             | $      | 1,352,597 |   |   | $ | 54,018 |   |   | $ | 1,390,885 |   |   | $ | 1,311,382 |   |   | $ | 79,503 |   |
|                |   |          |      |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Deposits      |   | $             | 1,638,265 |   |             | $      | 1,594,115 |   |   | $ | 44,150 |   |   | $ | 1,613,290 |   |   | $ | 1,525,754 |   |   | $ | 87,536 |   |

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|              | Farmers Capital  | Regulatory |
|-------------------|------------------|------------|
|              | Bank Corporation | Minimum    |
| Tier 1 risk based | 13.39%           | 4.00%      |
| Total risk based  | 14.65%           | 8.00%      |
| Leverage          | 8.36%            | 4.00%      |

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4.  Controls and Procedures

----

Item 1.  Legal Proceedings

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

----

Item 4.  Submission of Matters to a Vote of Security Holders

|   | 1. | Election of four directors. |
|--------|----|-----------------------------|

|   | 2. | Ratification of the appointment of the Company’s independent registered public accounting firm. |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | 3. | Endorsement of the compensation the Company pays its executives |
|--------|----|-----------------------------------------------------------------|

|   | The outcome of the voting was as follows: |
|--------|-------------------------------------------|

|                                                          |                              |    |     |      |
|---------------------------------------------------------------|-----------------------------------|---------|----------|-----------|
|                                                          | For      | Against | Withheld | Abstained |
| Election of Directors                                         |                              |    |     |      |
| Frank W. Sower, Jr.                                           |  5,384,841                   | 0  | 195,149  | 0    |
| J. Barry Banker                                               | 5,412,481                         | 0  | 167,509  | 0    |
| Dr. John D. Sutterlin                                         | 5,416,991                         | 0  | 162,999  | 0    |
| Dr. Donald J. Mullineaux                                      | 5,416,055                         | 0  | 163,935  | 0    |
|                                                          |                              |    |     |      |
| Ratification of independent registered public accounting firm | 5,516,534                         | 38,135  | 25,318   | 0         |
|                                                          |                              |    |     |      |
| Endorsement of compensation to executives                     | 5,241,885                         | 275,860 | 62,239   | 0         |
|                                                          |                              |    |     |      |

| Lloyd C. Hillard, Jr    | G. Anthony Busseni |
|-------------------------|--------------------|
| Robert Roach, Jr.       | Shelley S. Sweeney |
| R. Terry Bennett        | Ben F. Brown       |
| Dr. Donald A. Saelinger | Marvin E. Strong   |

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Item 6.  Exhibits

| 3.1    | Articles of Incorporation and Bylaws of the Registrant (incorporated by reference to Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006, the Annual Report on Form 10-K for the fiscal year ended December 31, 1997, the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003, and Current Report onForm 8-K dated January 13, 2009).                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.1    | Junior Subordinated Indenture, dated as of July 21, 2005, between Farmers Capital Bank Corporation and Wilmington Trust Company, as Trustee, relating to unsecured junior subordinated deferrable interest notes that mature in 2035.*                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.2    | Amended and Restated Trust Agreement, dated as of July 21, 2005, among Farmers Capital Bank Corporation, as Depositor, Wilmington Trust Company, as Property and Delaware Trustee, the Administrative Trustees (as named therein), and the Holders (as defined therein).*                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.3    | Guarantee Agreement, dated as of July 21, 2005, between Farmers Capital Bank Corporation, as Guarantor, and Wilmington Trust Company, as Guarantee Trustee.*                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.4    | Junior Subordinated Indenture, dated as of July 26, 2005, between Farmers Capital Bank Corporation and Wilmington Trust Company, as Trustee, relating to unsecured junior subordinated deferrable interest notes that mature in 2035.*                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.5    | Amended and Restated Trust Agreement, dated as of July 26, 2005, among Farmers Capital Bank Corporation, as Depositor, Wilmington Trust Company, as Property and Delaware Trustee, the Administrative Trustees (as named therein), and the Holders (as defined therein).*                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.6    | Guarantee Agreement, dated as of July 26, 2005, between Farmers Capital Bank Corporation, as Guarantor, and Wilmington Trust Company, as Guarantee Trustee.*                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.7    | Indenture, dated as of August 14, 2007 between Farmers Capital Bank Corporation, as Issuer, and Wilmington Trust Company, as Trustee, relating to fixed/floating rate junior subordinated debt due 2037.*                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.8    | Amended and Restated Declaration of Trust, dated as of August 14, 2007, by Farmers Capital Bank Corporation, as Sponsor, Wilmington Trust Company, as Delaware and Institutional Trustee, the Administrative Trustees (as named therein), and the Holders (as defined therein).*                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.9    | Guarantee Agreement, dated as of August 14, 2007, between Farmers Capital Bank Corporation, as Guarantor, and Wilmington Trust Company, as Guarantee Trustee.*                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.10   | Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A(incorporated by reference to the Current Report on Form 8-K dated January 13, 2009).                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.11   | Warrant for Purchase of Shares of Common Stock(incorporated by reference to the Current Report on Form 8-K dated January 13, 2009).                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1   | Agreement and Plan of Merger, Dated July 1, 2005, as Amended, by and among Citizens Bancorp, Inc., Citizens Acquisition Subsidiary Corp, and Farmers Capital Bank Corporation(incorporated by reference to Appendix A of Registration Statement filed on Form S-4 on October 11, 2005).                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.2   | Amended and Restated Plan of Merger of Citizens National Bancshares, Inc. with and into FCBC Acquisition Subsidiary, LLC (incorporated by reference to Appendix A of Proxy Statement for Special Meeting of Shareholders of Citizens National Bancshares, Inc. and Prospectus in connection with an offer of up to 600,000 shares of its common stockof Farmers Capital Bank Corporation filed on Form 424B3 on August 7, 2006). |

----

|    |                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.3    | Stock Purchase Agreement Dated June 1, 2006 by and among Farmers Capital Bank Corporation, Kentucky Banking Centers, Inc. and Citizens First Corporation (incorporated by reference to Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008).                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.4    | Letter Agreement, dated January 9, 2009, between Farmers Capital Bank Corporation and the United States Department of the Treasury, with respect to the issuance and sale of the Series A Preferred Stock and the Warrant, and Securities Purchase Agreement – Standard Terms attached thereto as Exhibit A(incorporated by reference to the Current Report on Form 8-K dated January 13, 2009). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 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                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                   |

|   | * Exhibit not included pursuant to Item 601(b)(4)(iii) and (v) of Regulation S-K. The Company will provide a copy of such exhibit to the Securities and Exchange Commission upon request. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

| Date:  |   August 6, 2009 |   |  /s/ G. Anthony Busseni                 |
|--------|-----------------------|--------|----------------------------------------------|
|   |                  |   | G. Anthony Busseni,                          |
|   |                  |   | President and CEO                            |
|   |                  |   | (Principal Executive Officer)                |
|   |                  |   |                                         |
| Date:  |   8-7-09         |   |  /s/ Doug Carpenter                     |
|   |                  |   | C. Douglas Carpenter,                        |
|   |                  |   | Senior Vice President, Secretary, and CFO    |
|   |                  |   | (Principal Financial and Accounting Officer) |

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