|   |                                                        |   |
|--------|-------------------------------------------------------------|--------|
|   | 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      Income                                                                    | 4      |
| Unaudited Consolidated Statements of      Comprehensive 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 | 12     |
|                                                                                                                |   |
| Item 3.  Quantitative and Qualitative Disclosures      About Market Risk                                  | 23     |
|                                                                                                                |   |
| Item 4.  Controls and    Procedures                                                                       | 23     |
|                                                                                                                |   |
| PART      II - OTHER INFORMATION                                                                                    |   |
|                                                                                                                |   |
| Item 1.  Legal Proceedings                                                                                | 23     |
|                                                                                                                |   |
| Item 2.  Unregistered Sales of Equity      Securities and Use of Proceeds                                 | 23     |
|                                                                                                                |   |
| Item 6.  Exhibits                                                                                         | 24     |
|                                                                                                                |   |
| SIGNATURES                                                                                                          | 25     |

----

Item 1. Financial Statements

Unaudited Consolidated Balance Sheets

|                                                                                                                                                                                                  |   | March      31, |      |   | December      31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
| (In thousands, except share data)                                                                                                                                                 |   | 2008           |      |   | 2007              |   |
| Assets                                                                                                                                                                                                |   |           |      |   |              |   |
| Cash      and cash equivalents:                                                                                                                                                                       |   |           |      |   |              |   |
| Cash      and due from banks                                                                                                                                                                          |   | $              | 89,761    |   |              | $      | 44,896 |   |
| Interest      bearing deposits in other banks                                                                                                                                                         |   |           | 2,102     |   |              |   | 2,290 |   |
| Federal      funds sold and securities purchased under agreements to    resell                                                                                                                        |   |           | 68,019    |   |              |   | 31,954 |   |
| Total      cash and cash equivalents                                                                                                                                                                  |   |           | 159,882   |   |              |   | 79,140 |   |
| Investment      securities:                                                                                                                                                                           |   |           |      |   |              |   |   |   |
| Available      for sale, amortized cost of $549,024 (2008) and $542,259      (2007)                                                                                                                   |   |           | 556,325   |   |              |   | 542,633 |   |
| Held      to maturity, fair value of $3,187 (2008) and $3,863 (2007)                                                                                                                                  |   |           | 3,304     |   |              |   | 3,844 |   |
| Total      investment securities                                                                                                                                                                      |   |           | 559,629   |   |              |   | 546,477 |   |
| Loans,      net of unearned income                                                                                                                                                                    |   |           | 1,290,376 |   |              |   | 1,291,985 |   |
| Allowance      for loan losses                                                                                                                                                                        |   |           | (14,555   | )      |              |   | (14,216 | ) |
| Loans,      net                                                                                                                                                                                       |   |           | 1,275,821 |   |              |   | 1,277,769 |   |
| Premises      and equipment, net                                                                                                                                                                      |   |           | 39,961    |   |              |   | 38,663 |   |
| Company-owned      life insurance                                                                                                                                                                     |   |           | 34,472    |   |              |   | 34,171 |   |
| Goodwill                                                                                                                                                                                              |   |           | 52,408    |   |              |   | 52,408 |   |
| Other      intangibles, net                                                                                                                                                                           |   |           | 8,892     |   |              |   | 9,543 |   |
| Other      assets                                                                                                                                                                                     |   |           | 27,312    |   |              |   | 30,076 |   |
| Total      assets                                                                                                                                                                                     |   | $              | 2,158,377 |   |              | $      | 2,068,247 |   |
| Liabilities                                                                                                                                                                                           |   |           |      |   |              |   |   |   |
| Deposits:                                                                                                                                                                                             |   |           |      |   |              |   |   |   |
| Noninterest      bearing                                                                                                                                                                              |   | $              | 218,540   |   |              | $      |  192,432 |   |
| Interest      bearing                                                                                                                                                                                 |   |           | 1,322,572 |   |              |   | 1,281,665 |   |
| Total      deposits                                                                                                                                                                                   |   |           | 1,541,112 |   |              |   | 1,474,097 |   |
| Federal      funds purchased and other short-term borrowings                                                                                                                                          |   |           | 86,016    |   |              |   | 80,755 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings                                                                                                               |   |           | 276,147   |   |              |   | 267,339 |   |
| Subordinated      notes payable to unconsolidated trusts                                                                                                                                              |   |           | 48,970    |   |              |   | 48,970 |   |
| Dividends      payable                                                                                                                                                                                |   |           | 2,434     |   |              |   | 2,436 |   |
| Other      liabilities                                                                                                                                                                                |   |           | 29,550    |   |              |   | 26,159 |   |
| Total      liabilities                                                                                                                                                                                |   |           | 1,984,229 |   |              |   | 1,899,756 |   |
| Shareholders’      Equity                                                                                                                                                                       |   |           |      |   |              |   |   |   |
| Preferred      stock, no par value; 1,000,000 shares authorized; none    issued                                                                                                                       |   |           |      |   |              |   |   |   |
| Common      stock, par value $.125 per share; 9,608,000 shares authorized; 7,350,162      and 7,384,865 shares issued and outstanding at March 31, 2008 and      December 31, 2007, respectively |   |           | 919       |   |              |   | 923 |   |
| Capital      surplus                                                                                                                                                                                  |   |           | 48,007    |   |              |   | 48,176 |   |
| Retained      earnings                                                                                                                                                                                |   |           | 123,744   |   |              |   | 122,498 |   |
| Accumulated      other comprehensive income (loss)                                                                                                                                                    |   |           | 1,478     |   |              |   | (3,106 | ) |
| Total      shareholders’ equity                                                                                                                                                                 |   |           | 174,148   |   |              |   | 168,491 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                 |   | $              | 2,158,377 |   |              | $      | 2,068,247 |   |

----

Unaudited Consolidated Statements ofIncome

|                                                                                                                 |   | Three      Months Ended |      |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                 |   | March      31,          |      |
| (In      thousands, except per share data)                                                                           |   | 2008                    |      |   | 2007 |   |
| Interest      Income                                                                                                 |   |                    |      |   |   |   |
| Interest      and fees on loans                                                                                      |   | $                       | 22,776    |   |   | $ | 22,537 |   |
| Interest      on investment securities:                                                                              |   |                    |      |   |   |   |   |   |
| Taxable                                                                                                              |   |                    | 5,867     |   |   |   | 2,624 |   |
| Nontaxable                                                                                                           |   |                    | 824       |   |   |   | 857 |   |
| Interest      on deposits in other banks                                                                             |   |                    | 14        |   |   |   | 14 |   |
| Interest      of federal funds sold and securities purchased under agreements to      resell                         |   |                    | 554       |   |   |   | 1,370 |   |
| Total      interest income                                                                                           |   |                    | 30,035    |   |   |   | 27,402 |   |
| Interest      Expense                                                                                                |   |                    |      |   |   |   |   |   |
| Interest      on deposits                                                                                            |   |                    | 10,952    |   |   |   | 10,951 |   |
| Interest      on federal funds purchased and other short-term borrowings                                             |   |                    | 706       |   |   |   | 1,247 |   |
| Interest      on securities sold under agreements to repurchase and other      long-term   borrowings |   |                    | 2,826     |   |   |   | 661 |   |
| Interest      on subordinated notes payable to unconsolidated trusts                                                 |   |                    | 796       |   |   |   | 448 |   |
| Total      interest expense                                                                                          |   |                    | 15,280    |   |   |   | 13,307 |   |
| Net      interest income                                                                                             |   |                    | 14,755    |   |   |   | 14,095 |   |
| Provision      for loan losses                                                                                       |   |                    | 1,102     |   |   |   | (496 | ) |
| Net      interest income after provision for loan losses                                                             |   |                    | 13,653    |   |   |   | 14,591 |   |
| Noninterest      Income                                                                                              |   |                    |      |   |   |   |   |   |
| Service      charges and fees on deposits                                                                            |   |                    | 2,378     |   |   |   | 2,493 |   |
| Allotment      processing fees                                                                                       |   |                    | 1,165     |   |   |   | 957 |   |
| Other      service charges, commissions, and fees                                                                    |   |                    | 1,107     |   |   |   | 984 |   |
| Data      processing income                                                                                          |   |                    | 280       |   |   |   | 277 |   |
| Trust      income                                                                                                    |   |                    | 517       |   |   |   | 488 |   |
| Securities      gains, net                                                                                           |   |                    | 366       |   |   |   |   |   |
| Gains      on sale of mortgage loans, net                                                                            |   |                    | 125       |   |   |   | 117 |   |
| Income      from company-owned life insurance                                                                        |   |                    | 301       |   |   |   | 347 |   |
| Other                                                                                                                |   |                    | 148       |   |   |   | 4 |   |
| Total      noninterest income                                                                                        |   |                    | 6,387     |   |   |   | 5,667 |   |
| Noninterest      Expense                                                                                             |   |                    |      |   |   |   |   |   |
| Salaries      and employee benefits                                                                                  |   |                    | 7,551     |   |   |   | 7,510 |   |
| Occupancy      expenses, net                                                                                         |   |                    | 1,136     |   |   |   | 1,066 |   |
| Equipment      expenses                                                                                              |   |                    | 714       |   |   |   | 781 |   |
| Data      processing and communication expenses                                                                      |   |                    | 1,311     |   |   |   | 1,166 |   |
| Bank      franchise tax                                                                                              |   |                    | 419       |   |   |   | 514 |   |
| Correspondent      bank fees                                                                                         |   |                    | 215       |   |   |   | 159 |   |
| Amortization      of intangibles                                                                                     |   |                    | 651       |   |   |   | 818 |   |
| Other                                                                                                                |   |                    | 2,383     |   |   |   | 2,324 |   |
| Total      noninterest expense                                                                                       |   |                    | 14,380    |   |   |   | 14,338 |   |
| Income      before income taxes                                                                                      |   |                    | 5,660     |   |   |   | 5,920 |   |
| Income      tax expense                                                                                              |   |                    | 1,284     |   |   |   | 1,310 |   |
| Net      income                                                                                                      |   | $                       | 4,376     |   |   | $ | 4,610 |   |
| Net      Income Per Common Share                                                                                     |   |                    |      |   |   |   |   |   |
| Basic      and diluted                                                                                               |   | $                       |  .59 |   |   | $ | .58 |   |
| Weighted      Average Shares Outstanding                                                                             |   |                    |      |   |   |   |   |   |
| Basic                                                                                                                |   |                    | 7,374     |   |   |   | 7,893 |   |
| Diluted                                                                                                              |   |                    | 7,374     |   |   |   | 7,908 |   |

----

Unaudited Consolidated Statements of ComprehensiveIncome

|                                                                                                                                                                                  |   | Three      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                  |   | March      31,          |   |
| (In      thousands)                                                                                                                                                                   |   | 2008                    |   |   | 2007 |   |
| Net      Income                                                                                                                                                                       |   | $                       | 4,376  |   |   | $ | 4,610 |   |
| Other      comprehensive income:                                                                                                                                                      |   |                    |   |   |   |   |   |   |
| Unrealized      net holding gain on available for sale securities arising during the      period, net of tax of $2,485 and $227, respectively                                         |   |                    | 4,615  |   |   |   | 421 |   |
| Reclassification      adjustment for prior period unrealized loss previously reported in other      comprehensive income recognized during the current period, net of tax of      $60 |   |                    | (112   | ) |   |   |   |   |
| Change      in unfunded portion of postretirement benefit obligation, net of tax of      $44 and $35                                                                                  |   |                    | 81     |   |   |   | 65 |   |
| Other      comprehensive income                                                                                                                                                       |   |                    | 4,584  |   |   |   | 486 |   |
| Comprehensive      Income                                                                                                                                                             |   | $                       | 8,960  |   |   | $ | 5,096 |   |

----

Unaudited Consolidated Statements of Cash Flows

| Three      months ended March 31, (In thousands)                                            |   | 2008   |     |    | 2007   |   |
|---------------------------------------------------------------------------------------------|--------|--------|----------|---------|--------|--------|
| Cash      Flows from Operating Activities                                                   |   |   |     |    |   |   |
| Net      income                                                                             |   | $      | 4,376    |    |   | $      | 4,610 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |     |    |   |   |   |   |
| Depreciation      and amortization                                                          |   |   | 1,630    |    |   |   | 1,789 |   |
| Net      discount accretion of available for sale investment    securities                  |   |   | (244     | )       |   |   | (337 | ) |
| Provision      for loan losses                                                              |   |   | 1,102    |    |   |   | (496 | ) |
| Noncash      compensation expense                                                           |   |   | 14       |    |   |   | 17 |   |
| Mortgage      loans originated for sale                                                     |   |   | (5,965   | )       |   |   | (6,007 | ) |
| Proceeds      from sale of mortgage loans                                                   |   |   | 5,368    |    |   |   | 4,384 |   |
| Deferred      income tax expense                                                            |   |   | 1,704    |    |   |   | 2,466 |   |
| Gain      on sale of available for sale investment securities, net                          |   |   | (366     | )       |   |   |   |   |
| Gain      on sale of mortgage loans, net                                                    |   |   | (125     | )       |   |   | (117 | ) |
| Loss      on sale of premises and equipment, net                                            |   |   |     |    |   |   | 105 |   |
| Decrease      in accrued interest receivable                                                |   |   | 628      |    |   |   | 278 |   |
| Income      from company-owned life insurance                                               |   |   | (301     | )       |   |   | (334 | ) |
| (Increase)      decrease in other assets                                                    |   |   | (1,955   | )  |   |   | 1,230 |   |
| (Decrease)      increase in accrued interest payable                                        |   |   | (155     | )  |   |   | 12 |   |
| Increase      (decrease) in other liabilities                                               |   |   | 3,568    |    |   |   | (6,806 | ) |
| Net      cash provided by operating activities                                              |   |   | 9,279    |    |   |   | 794 |   |
| Cash      Flows from Investing Activities                                                   |   |   |     |    |   |   |   |   |
| Proceeds      from maturities and calls of investment securities:                           |   |   |     |    |   |   |   |   |
| Available      for sale                                                                     |   |   | 85,807   |    |   |   | 98,529 |   |
| Held      to maturity                                                                       |   |   | 540      |    |   |   | 476 |   |
| Proceeds      from sale of available for sale investment securities                         |   |   | 14,385   |    |   |   | 667 |   |
| Purchase      of available for sale investment securities                                   |   |   | (106,347 | )       |   |   | (103,464 | ) |
| Loans      originated for investment, net of principal collected                            |   |   | 1,568    |    |   |   | (23,186 | ) |
| Purchase      of PNC Military Allotment operations, net of cash acquired                    |   |   |     |    |   |   | (1,876 | ) |
| Purchase      price refinements of previous acquisitions                                    |   |   |     |    |   |   | (27 | ) |
| Additions      to mortgage servicing rights, net                                            |   |   | (24      | )       |   |   | (15 | ) |
| Purchase      of premises and equipment                                                     |   |   | (2,231   | )       |   |   | (2,285 | ) |
| Proceeds      from sale of equipment                                                        |   |   |     |    |   |   | 198 |   |
| Net      cash used in investing activities                                                  |   |   | (6,302   | )       |   |   | (30,983 | ) |
| Cash      Flows from Financing Activities                                                   |   |   |     |    |   |   |   |   |
| Net      increase in deposits                                                               |   |   | 67,015   |    |   |   | 5,065 |   |
| Net      increase in federal funds purchased and other short-term      borrowings           |   |   | 5,261    |    |   |   | 76,604 |   |
| Proceeds      from other long-term debt                                                     |   |   | 10,000   |    |   |   | 5,000 |   |
| Repayments      of long-term debt                                                           |   |   | (1,192   | )       |   |   | (5,198 | ) |
| Dividends      paid                                                                         |   |   | (2,436   | )       |   |   | (3,473 | ) |
| Purchase      of common stock                                                               |   |   | (949     | )       |   |   | (572 | ) |
| Shares      issued under Employee Stock Purchase Plan                                       |   |   | 66       |    |   |   | 68 |   |
| Stock      options exercised                                                                |   |   |     |    |   |   | 103 |   |
| Net      cash provided by financing activities                                              |   |   | 77,765   |    |   |   | 77,597 |   |
| Net      increase in cash and cash equivalents                                              |   |   | 80,742   |    |   |   | 47,408 |   |
| Cash      and cash equivalents at beginning of year                                         |   |   | 79,140   |    |   |   | 156,828 |   |
| Cash      and cash equivalents at end of period                                             |   | $      | 159,882  |    |   | $      | 204,236 |   |
| Supplemental      Disclosures                                                               |   |   |     |    |   |   |   |   |
| Cash      paid during the period for:                                                       |   |   |     |    |   |   |   |   |
| Interest                                                                                    |   | $      | 15,435   |    |   | $      | 13,590 |   |
| Income      taxes                                                                           |   |   |     |    |   |   | 3,700 |   |
| Transfers      from loans to repossessed assets                                             |   |   | 718      |    |   |   | 136 |   |
| Cash      dividend declared and unpaid                                                      |   |   | 2,434    |    |   |   | 2,606 |   |

----

Unaudited Consolidated Statements of Changes inShareholders’ Equity

| (In      thousands, except per share data)                  |   |              |   |   |    |   |   |     | Accumulated |   |          |   |   |
|-------------------------------------------------------------|--------|-------------------|--------|--------|---------|--------|--------|----------|-------------|--------|---------------|--------|--------|
|                                                        |   |              |   |   |    |   |   |     |        |   | Other         |   |   | Total |   |
| Three      months ended                                     |   | Common      Stock |   |   | Capital |   |   | Retained |        |   | Comprehensive |   |   | Shareholders’ |   |
| March      31, 2008 and 2007                                |   | Shares            |   |   | Amount  |   |   | Surplus  |        |   | Earnings      |   |   | Income      (Loss) |   |   | Equity |   |
| Balance      at January 1, 2008                             |   |              | 7,385  |   |    | $      | 923    |     |        | $      | 48,176        |   |   | $ | 122,498 |   |   | $ | (3,106 | ) |   | $ | 168,491 |   |
| Net      income                                             |   |              |   |   |    |   |   |     |        |   |          |   |   |   | 4,376 |   |   |   |   |   |   |   | 4,376 |   |
| Other      comprehensive income                             |   |              |   |   |    |   |   |     |        |   |          |   |   |   |   |   |   |   | 4,584 |   |   |   | 4,584 |   |
| Cash      dividends declared, $.33 per share                |   |              |   |   |    |   |   |     |        |   |          |   |   |   | (2,434 | ) |   |   |   |   |   |   | (2,434 | ) |
| Purchase      of common stock                               |   |              | (38    | )      |    |   | (5     | )        |        |   | (248          | )      |   |   | (696 | ) |   |   |   |   |   |   | (949 | ) |
| Shares      issued pursuant to Employee Stock Purchase Plan |   |              | 3      |   |    |   | 1      |     |        |   | 65            |   |   |   |   |   |   |   |   |   |   |   | 66 |   |
| Stock-based      compensation                               |   |              |   |   |    |   |   |     |        |   | 14            |   |   |   |   |   |   |   |   |   |   |   | 14 |   |
| Balance      at March 31, 2008                              |   |              | 7,350  |   |    | $      | 919    |     |        | $      | 48,007        |   |   | $ | 123,744 |   |   | $ | 1,478 |   |   | $ | 174,148 |   |
|                                                        |   |              |   |   |    |   |   |     |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |              |   |   |    |   |   |     |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |              |   |   |    |   |   |     |        |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at January 1, 2007                             |   |              | 7,895  |   |    | $      | 988    |     |        | $      | 53,201        |   |   | $ | 128,652 |   |   | $ | (5,778 | ) |   | $ | 177,063 |   |
| Net      income                                             |   |              |   |   |    |   |   |     |        |   |          |   |   |   | 4,610 |   |   |   |   |   |   |   | 4,610 |   |
| Other      comprehensive income                             |   |              |   |   |    |   |   |     |        |   |          |   |   |   |   |   |   |   | 486 |   |   |   | 486 |   |
| Cash      dividends declared, $.33 per share                |   |              |   |   |    |   |   |     |        |   |          |   |   |   | (2,607 | ) |   |   |   |   |   |   | (2,607 | ) |
| Purchase      of common stock                               |   |              | (18    | )      |    |   | (2     | )        |        |   | (112          | )      |   |   | (458 | ) |   |   |   |   |   |   | (572 | ) |
| Stock      options exercised                                |   |              | 4      |   |    |   |   |     |        |   | 104           |   |   |   |   |   |   |   |   |   |   |   | 104 |   |
| Shares      issued pursuant to Employee Stock Purchase Plan |   |              | 3      |   |    |   |   |     |        |   | 68            |   |   |   |   |   |   |   |   |   |   |   | 68 |   |
| Stock-based      compensation                               |   |              |   |   |    |   |   |     |        |   | 17            |   |   |   |   |   |   |   |   |   |   |   | 17 |   |
| Balance      at March 31, 2007                              |   |              | 7,884  |   |    | $      | 986    |     |        | $      | 53,278        |   |   | $ | 130,197 |   |   | $ | (5,292 | ) |   | $ | 179,169 |   |

----

Notes to Unaudited Consolidated Financial Statements

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

----

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

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

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

----

| 5. | Net      Income per Common Share |
|----|----------------------------------|

|                                         |   | Three      Months EndedMarch      31, |   |
|----------------------------------------------|--------|---------------------------------------|--------|
| (In      thousands, except per share data)   |   | 2008                                  |   |   | 2007 |   |
|                                         |   |                                  |   |   |   |   |
| Net      income, basic and diluted           |   | $                                     | 4,376  |   |   | $ | 4,610 |   |
|                                         |   |                                  |   |   |   |   |   |   |
| Average      shares outstanding              |   |                                  | 7,374  |   |   |   | 7,893 |   |
| Effect      of dilutive stock options        |   |                                  |   |   |   |   | 15 |   |
| Average      diluted shares outstanding      |   |                                  | 7,374  |   |   |   | 7,908 |   |
|                                         |   |                                  |   |   |   |   |   |   |
| Net      income per share, basic and diluted |   | $                                     | .59    |   |   | $ | .58 |   |

6.           FairValue Measurements

|   | 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 tradingsystems. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 $9.6 million at March 31, 2008 is carried at cost and not      included in the table below, as they are outside the scope of SFAS No.      157. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   |                               |    |   | Fair      Value Measurements at March 31, 2008 Using                    |   |
|-----------------------------------------------|--------|------------------------------------|---------|--------|-------------------------------------------------------------------------|--------|
| (In thousands)   Description   |   | Fair      ValueMarch      31, 2008 |    |   | Quoted      Prices in Active Markets for Identical Assets(Level      1) |   |   | Significant      Other Observable Inputs(Level      2) |   |   | Significant      Unobservable Inputs(Level      3) |   |
|                                          |   |                               |    |   |                                                                    |   |   |   |   |   |   |   |
| Available      for sale investment securities |   | $                                  | 546,705 |   |                                                                    | $      | 11,115 |   |   | $ | 535,590 |   |   | $ | 0 |   |
|                                          |   |                               |    |   |                                                                    |   |   |   |   |   |   |   |   |   |   |   |

----

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

----

----

----

| Quarter      Ended March 31,                                                                               |   | 2008           |           |   | 2007     |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|----------|--------|
|  (In      thousands)                                                                                  |   | AverageBalance |           |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Earning      Assets                                                                                        |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                 |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                    |   | $              | 427,138        |   |     | $      | 5,867 |   |   |   | 5.52 | % |   | $ | 222,203 |   |   | $ | 2,624 |   |   |   | 4.79 | % |
| Nontaxable1                                                                                                |   |           | 89,147         |   |     |   | 1,180 |   |   |   | 5.32 |   |   |   | 89,940 |   |   |   | 1,227 |   |   |   | 5.53 |   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell |   |           | 73,468         |   |     |   | 568 |   |   |   | 3.11 |   |   |   | 112,403 |   |   |   | 1,384 |   |   |   | 4.99 |   |
| Loans1,2,3                                                                                                 |   |           | 1,295,913      |   |     |   | 23,078 |   |   |   | 7.16 |   |   |   | 1,199,064 |   |   |   | 22,753 |   |   |   | 7.70 |   |
| Total      earning assets                                                                                  |   |           | 1,885,666      |   |     | $      | 30,693 |   |   |   | 6.55 | % |   |   | 1,623,610 |   |   | $ | 27,988 |   |   |   | 6.99 | % |
| Allowance      for loan losses                                                                             |   |           | (14,125        | )      |     |   |   |   |   |   |   |   |   |   | (11,983 | ) |   |   |   |   |   |   |   |   |
| Total      earning assets, net ofallowance for loan losses                                                 |   |           | 1,871,541      |   |     |   |   |   |   |   |   |   |   |   | 1,611,627 |   |   |   |   |   |   |   |   |   |
| Nonearning      Assets                                                                                     |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                               |   |           | 80,178         |   |     |   |   |   |   |   |   |   |   |   | 78,028 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                           |   |           | 39,254         |   |     |   |   |   |   |   |   |   |   |   | 38,497 |   |   |   |   |   |   |   |   |   |
| Other      assets                                                                                          |   |           | 145,680        |   |     |   |   |   |   |   |   |   |   |   | 116,199 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                          |   | $              | 2,136,653      |   |     |   |   |   |   |   |   |   |   | $ | 1,844,351 |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities                                                                          |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                   |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing demand                                                                               |   | $              | 267,433        |   |     | $      | 672 |   |   |   | 1.01 | % |   | $ | 267,487 |   |   | $ | 1,033 |   |   |   | 1.57 | % |
| Savings                                                                                                    |   |           | 259,272        |   |     |   | 1,032 |   |   |   | 1.60 |   |   |   | 246,212 |   |   |   | 1,402 |   |   |   | 2.31 |   |
| Time                                                                                                       |   |           | 783,225        |   |     |   | 9,248 |   |   |   | 4.75 |   |   |   | 726,591 |   |   |   | 8,516 |   |   |   | 4.75 |   |
| Federal      funds purchased and other short-term borrowings                                               |   |           | 89,870         |   |     |   | 706 |   |   |   | 3.16 |   |   |   | 105,677 |   |   |   | 1,247 |   |   |   | 4.79 |   |
| Securities      sold under agreements to repurchase      and other long-term borrowings          |   |           |   325,136 |   |     |   |   3,622 |   |   |   |   4.48 |   |   |   |   86,421 |   |   |   |   1,109 |   |   |   |   5.20 |   |
| Total      interest bearing liabilities                                                                    |   |           | 1,724,936      |   |     | $      | 15,280 |   |   |   | 3.56 | % |   |   | 1,432,388 |   |   | $ | 13,307 |   |   |   | 3.77 | % |
| Noninterest      Bearing Liabilities                                                                       |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth      of Kentucky deposits                                                                     |   |           | 36,389         |   |     |   |   |   |   |   |   |   |   |   | 36,537 |   |   |   |   |   |   |   |   |   |
| Other      demand deposits                                                                                 |   |           | 174,223        |   |     |   |   |   |   |   |   |   |   |   | 175,527 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                     |   |           | 29,871         |   |     |   |   |   |   |   |   |   |   |   | 21,783 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                     |   |           | 1,965,419      |   |     |   |   |   |   |   |   |   |   |   | 1,666,235 |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                            |   |           | 171,234        |   |     |   |   |   |   |   |   |   |   |   | 178,116 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders’ equity                                                      |   | $              | 2,136,653      |   |     |   |   |   |   |   |   |   |   | $ | 1,844,351 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                   |   |           |           |   |     |   | 15,413 |   |   |   |   |   |   |   |   |   |   |   | 14,681 |   |   |   |   |   |
| TE      basis adjustment                                                                                   |   |           |           |   |     |   | (658 | ) |   |   |   |   |   |   |   |   |   |   | (586 | ) |   |   |   |   |
| Net      interest income                                                                                   |   |           |           |   |     | $      | 14,755 |   |   |   |   |   |   |   |   |   |   | $ | 14,095 |   |   |   |   |   |
| Net      interest spread                                                                                   |   |           |           |   |     |   |   |   |   |   | 2.99 | % |   |   |   |   |   |   |   |   |   |   | 3.22 | % |
| Impact      of noninterest bearing sources of funds                                                        |   |           |           |   |     |   |   |   |   |   | .30 |   |   |   |   |   |   |   |   |   |   |   | .45 |   |
| Net      interest margin                                                                                   |   |           |           |   |     |   |   |   |   |   | 3.29 | % |   |   |   |   |   |   |   |   |   |   | 3.67 | % |

----

| (In      thousands)                                                                                        |   | Variance |      |          | Variance      Attributed to |   |
|------------------------------------------------------------------------------------------------------------|--------|----------|-----------|---------------|-----------------------------|--------|
| Quarter      Ended March 31,                                                                               |   |     | 2008/2007 | 1             |                        | Volume |   |   | Rate |   |
| Interest      Income                                                                                       |   |     |      |          |                        |   |   |   |   |   |
| Taxable      investment securities                                                                         |   | $        | 3,243     |          |                        | $      | 2,783 |   |   | $ | 460 |   |
| Nontaxable      investment securities2                                                                     |   |     | (47       | )   |                        |   | (9 | )   |   |   | (38 | )   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell |   |     | (816      | )   |                        |   | (391 | )   |   |   | (425 | )   |
| Loans2                                                                                                     |   |     | 325       |          |                        |   | 7,105 |   |   |   | (6,780 | )   |
| Total      interest income                                                                                 |   |     | 2,705     |          |                        |   | 9,488 |   |   |   | (6,783 | )   |
| Interest      Expense                                                                                      |   |     |      |          |                        |   |   |   |   |   |   |   |
| Interest      bearing demand deposits                                                                      |   |     | (361      | )   |                        |   | - |   |   |   | (361 | )   |
| Savings      deposits                                                                                      |   |     | (370      | )   |                        |   | 461 |   |   |   | (831 | )   |
| Time      deposits                                                                                         |   |     | 732       |          |                        |   | 732 |   |   |   | - |   |
| Federal      funds purchased and other short-term borrowings                                               |   |     | (541      | )   |                        |   | (165 | )   |   |   | (376 | )   |
| Securities      sold under agreements to repurchase and other long-term borrowings                         |   |     | 2,513     |          |                        |   | 3,578 |   |   |   | (1,065 | )   |
| Total      interest expense                                                                                |   |     | 1,973     |          |                        |   | 4,606 |   |   |   | (2,633 | )   |
| Net      interest income                                                                                   |   | $        | 732       |          |                        | $      | 4,882 |   |   | $ | (4,150 | )   |
| Percentage      change                                                                                     |   |     | 100.0     | %             |                        |   | 666.9 | % |   |   | (566.9 | )% |

|  1 | The      changes that are not solely due to rate or volume are allocated on a      percentage basis using the absolute values of rate and volume variances as      a basis for allocation. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                |   | March      31, 2008 |      |   | December      31, 2007 |   |
|---------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| (Dollars      in thousands)                                         |   | Amount              |      |   | %                      |   |   | Amount |   |   | % |   |
|                                                                |   |                |      |   |                   |   |   |   |   |   |   |   |
| Commercial,      financial, and agriculture                         |   | $                   | 153,149   |   |                   |   | 11.9 | % |   | $ | 154,015 |   |   |   | 11.9 | % |
| Real      estate - construction                                     |   |                | 245,580   |   |                   |   | 19.0 |   |   |   | 254,788 |   |   |   | 19.7 |   |
| Real      estate mortgage - residential                             |   |                | 411,650   |   |                   |   | 31.9 |   |   |   | 405,992 |   |   |   | 31.5 |   |
| Real      estate mortgage farmland and other commercial enterprises |   |                | 402,711   |   |                   |   | 31.2 |   |   |   | 394,900 |   |   |   | 30.6 |   |
| Installment                                                         |   |                | 49,287    |   |                   |   | 3.8 |   |   |   | 52,028 |   |   |   | 4.0 |   |
| Lease      financing                                                |   |                | 27,999    |   |                   |   | 2.2 |   |   |   | 30,262 |   |   |   | 2.3 |   |
| Total                                                               |   | $                   | 1,290,376 |   |                   |   | 100.0 | % |   | $ | 1,291,985 |   |   |   | 100.0 | % |

----

| (In      thousands)                              |   | March      31,2008 |   |   | December      31,2007 |   |   | Change |   |   | %     |   |
|--------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|--------|--------|--------|--------|-------|--------|
| Nonaccrual                                       |   | $                  | 24,041 |   |                  | $      | 18,073 |   |   | $      | 5,968 |   |   |   | 33.0 | % |
| Past      due 90 days or more and still accruing |   |               | 5,851  |   |                  |   | 2,977  |   |   |   | 2,874 |   |   |   | 96.5 |   |
| Total      nonperforming loans                   |   | $                  | 29,892 |   |                  | $      | 21,050 |   |   | $      | 8,842 |   |   |   | 42.0 | % |

|                     |   | End      of Period |      |   | Average                     |   |
|--------------------------|--------|--------------------|-----------|--------|-----------------------------|--------|
| (In      thousands)      |   | March      31,2008 |      |   | December      31, 2007 |   |   | Difference |   |   | March      31, 2008 |   |   | December      31, 2007 |   |   | Difference |   |
| Noninterest      Bearing |   |               |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth             |   | $                  | 40,720    |   |                        | $      | 15,367 |   |   | $ | 25,353 |   |   | $ | 36,389 |   |   | $ | 37,119 |   |   | $ | (730 | ) |
| Other                    |   |               | 177,820   |   |                        |   | 177,065 |   |   |   | 755 |   |   |   | 174,223 |   |   |   | 177,304 |   |   |   | (3,081 | ) |
| Total                    |   | $                  | 218,540   |   |                        | $      | 192,432 |   |   | $ | 26,108 |   |   | $ | 210,612 |   |   | $ | 214,423 |   |   | $ | (3,811 | ) |
|                     |   |               |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing    |   |               |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                   |   | $                  | 273,589   |   |                        | $      | 261,642 |   |   | $ | 11,947 |   |   | $ | 267,433 |   |   | $ | 258,992 |   |   | $ | 8,441 |   |
| Savings                  |   |               | 263,484   |   |                        |   | 250,002 |   |   |   | 13,482 |   |   |   | 259,272 |   |   |   | 244,299 |   |   |   | 14,973 |   |
| Time                     |   |               | 785,499   |   |                        |   | 770,021 |   |   |   | 15,478 |   |   |   | 783,225 |   |   |   | 748,939 |   |   |   | 34,286 |   |
| Total                    |   | $                  | 1,322,572 |   |                        | $      | 1,281,665 |   |   | $ | 40,907 |   |   | $ | 1,309,930 |   |   | $ | 1,252,230 |   |   | $ | 57,700 |   |
|                     |   |               |      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Deposits      |   | $                  | 1,541,112 |   |                        | $      | 1,474,097 |   |   | $ | 67,015 |   |   | $ | 1,520,542 |   |   | $ | 1,466,653 |   |   | $ | 53,889 |   |

----

----

|                   |   | Farmers      Capital  |   |   | Regulatory |   |
|------------------------|--------|-----------------------|--------|--------|------------|--------|
|                   |   | Bank      Corporation |   |   | Minimum    |   |
| Tier      1 risk based |   |                  | 11.44  | %      |       |   | 4.00 | % |
| Total      risk based  |   |                  | 12.49  | %      |       |   | 8.00 | % |
| Leverage               |   |                  | 7.64   | %      |       |   | 4.00 | % |

----

Item 3.  Quantitative and Qualitative DisclosuresAbout Market Risk

Item 4.  Controls and Procedures

Item 1.  Legal Proceedings

Item 2.  Unregistered Sales of EquitySecurities and Use of Proceeds

|                                       |                                  |                              |                                                                                       |                                                                                     |
|--------------------------------------------|---------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Period                                     | Total      Number of Shares Purchased | Average      Price Paid per Share | Total      Number of Shares Purchased as Part of Publicly Announced Plans or      Programs | Maximum      Number of Shares that May Yet Be Purchased Under the Plans or      Programs |
| January      1, 2008 to January 31, 2008   |                                  |                              |                                                                                       | 127,971                                                                                  |
| February      1, 2008 to February 29, 2008 | 10,000                                | $26.35                            | 10,000                                                                                     | 117,971                                                                                  |
| March      1, 2008 to March 31, 2008       | 28,000                                |   24.47                 | 28,000                                                                                     | 89,971                                                                                   |
| Total                                      | 38,000                                | $24.97                            | 38,000                                                                                     |                                                                                     |

----

Item 6.  Exhibits

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

----

SIGNATURES

| Date:  |        May 5,      2008 |   |  /s/      G. Anthony Busseni                 |
|--------|------------------------------|--------|---------------------------------------------------|
|   |                         |   | G.      Anthony Busseni,                          |
|   |                         |   | President      and CEO                            |
|   |                         |   | (Principal      Executive Officer)                |
|   |                         |   |                                              |
| Date:  |        May 8,      2008 |   |  /s/      Doug Carpenter                     |
|   |                         |   | C.      Douglas Carpenter,                        |
|   |                         |   | Senior      Vice President, Secretary, and CFO    |
|   |                         |   | (Principal      Financial and Accounting Officer) |

----