|   |                                                        |   |
|--------|-------------------------------------------------------------|--------|
|   | 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 Income (Loss)                                               | 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 | 22     |
|                                                                                                                |   |
| Item 3.  Quantitative and Qualitative      Disclosures About Market Risk                                  | 40     |
|                                                                                                                |   |
| Item 4.  Controls and      Procedures                                                                     | 41     |
|                                                                                                                |   |
| PART      II - OTHER INFORMATION                                                                                    |   |
|                                                                                                                |   |
| Item 1.  Legal      Proceedings                                                                           | 41     |
|                                                                                                                |   |
| Item 2.  Unregistered Sales of Equity      Securities and Use of Proceeds                                 | 41     |
|                                                                                                                |   |
| Item 6.  Exhibits                                                                                         | 42     |
|                                                                                                                |   |
| SIGNATURES                                                                                                          | 44     |

----

Unaudited Consolidated Balance Sheets

|                                                                                                                                                                                                       |   | September      30, |      |   | December      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| (Dollars      in thousands, except per share data)                                                                                                                                     |   | 2009               |      |   | 2008              |   |
| Assets                                                                                                                                                                                                     |   |               |      |   |              |   |
| Cash      and cash equivalents:                                                                                                                                                                            |   |               |      |   |              |   |
| Cash      and due from banks                                                                                                                                                                               |   | $                  | 85,097    |   |              | $      | 87,656 |   |
| Interest      bearing deposits in other banks                                                                                                                                                              |   |               | 126,358   |   |              |   | 94,823 |   |
| Federal      funds sold and securities purchased under agreements to    resell                                                                                                                             |   |               | 24,786    |   |              |   | 8,296 |   |
| Total      cash and cash equivalents                                                                                                                                                                       |   |               | 236,241   |   |              |   | 190,775 |   |
| Investment      securities:                                                                                                                                                                                |   |               |      |   |              |   |   |   |
| Available      for sale, amortized cost of $576,178 (2009) and $526,698      (2008)                                                                                                                        |   |               | 590,425   |   |              |   | 534,295 |   |
| Held      to maturity, fair value of $1,151 (2009) and $1,667 (2008)                                                                                                                                       |   |               | 1,195     |   |              |   | 1,814 |   |
| Total      investment securities                                                                                                                                                                           |   |               | 591,620   |   |              |   | 536,109 |   |
| Loans,      net of unearned income                                                                                                                                                                         |   |               | 1,294,394 |   |              |   | 1,312,580 |   |
| Allowance      for loan losses                                                                                                                                                                             |   |               | (22,022   | )      |              |   | (16,828 | ) |
| Loans,      net                                                                                                                                                                                            |   |               | 1,272,372 |   |              |   | 1,295,752 |   |
| Premises      and equipment, net                                                                                                                                                                           |   |               | 39,878    |   |              |   | 43,046 |   |
| Company-owned      life insurance                                                                                                                                                                          |   |               | 36,314    |   |              |   | 35,396 |   |
| Goodwill                                                                                                                                                                                                   |   |               | 52,408    |   |              |   | 52,408 |   |
| Other      intangibles, net                                                                                                                                                                                |   |               | 5,477     |   |              |   | 6,941 |   |
| Other      assets                                                                                                                                                                                          |   |               | 38,949    |   |              |   | 41,740 |   |
| Total      assets                                                                                                                                                                                          |   | $                  | 2,273,259 |   |              | $      | 2,202,167 |   |
| Liabilities                                                                                                                                                                                                |   |               |      |   |              |   |   |   |
| Deposits:                                                                                                                                                                                                  |   |               |      |   |              |   |   |   |
| Noninterest      bearing                                                                                                                                                                                   |   | $                  | 249,624   |   |              | $      | 241,518 |   |
| Interest      bearing                                                                                                                                                                                      |   |               | 1,415,783 |   |              |   | 1,352,597 |   |
| Total      deposits                                                                                                                                                                                        |   |               | 1,665,407 |   |              |   | 1,594,115 |   |
| Federal      funds purchased and other short-term borrowings                                                                                                                                               |   |               | 49,500    |   |              |   | 77,474 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings                                                                                                                    |   |               | 280,626   |   |              |   | 286,691 |   |
| Subordinated      notes payable to unconsolidated trusts                                                                                                                                                   |   |               | 48,970    |   |              |   | 48,970 |   |
| Dividends      payable                                                                                                                                                                                     |   |               | 2,029     |   |              |   | 2,427 |   |
| Other      liabilities                                                                                                                                                                                     |   |               | 27,986    |   |              |   | 24,194 |   |
| Total      liabilities                                                                                                                                                                                     |   |               | 2,074,518 |   |              |   | 2,033,871 |   |
| Shareholders’      Equity                                                                                                                                                                            |   |               |      |   |              |   |   |   |
| Preferred      stock, no par value1,000,000      shares authorized; 30,000 Series A shares issued and outstanding at      September 30, 2009; Liquidation preference of $30,000 at September 30,      2009 |   |               | 28,259    |   |              |   |   |   |
| Common      stock, par value $.125 per share9,608,000      shares authorized; 7,371,207 and 7,357,362 shares issued and outstanding      at September 30, 2009 and December 31, 2008, respectively         |   |               | 921       |   |              |   | 920 |   |
| Capital      surplus                                                                                                                                                                                       |   |               | 50,396    |   |              |   | 48,222 |   |
| Retained      earnings                                                                                                                                                                                     |   |               | 111,890   |   |              |   | 116,419 |   |
| Accumulated      other comprehensive income                                                                                                                                                                |   |               | 7,275     |   |              |   | 2,735 |   |
| Total      shareholders’ equity                                                                                                                                                                      |   |               | 198,741   |   |              |   | 168,296 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                      |   | $                  | 2,273,259 |   |              | $      | 2,202,167 |   |

----

Unaudited Consolidated Statements ofOperations

|                                                                                                |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                                |   | September      30,      |   |   | September      30,     |   |
| (In      thousands, except per share data)                                                          |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Interest      Income                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Interest      and fees on loans                                                                     |   | $                       | 19,381 |   |                   | $      | 21,458 |   |   | $ | 58,717 |   |   | $ | 66,194 |   |
| Interest      on investment securities:                                                             |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                             |   |                    | 5,019  |   |                   |   | 5,411 |   |   |   | 15,559 |   |   |   | 17,242 |   |
| Nontaxable                                                                                          |   |                    | 916    |   |                   |   | 795 |   |   |   | 2,684 |   |   |   | 2,446 |   |
| Interest      on deposits in other banks                                                            |   |                    | 60     |   |                   |   | 20 |   |   |   | 207 |   |   |   | 44 |   |
| Interest      of federal funds sold and securities purchased under agreements to      resell        |   |                    | 5      |   |                   |   | 175 |   |   |   | 22 |   |   |   | 1,005 |   |
| Total      interest income                                                                          |   |                    | 25,381 |   |                   |   | 27,859 |   |   |   | 77,189 |   |   |   | 86,931 |   |
| Interest      Expense                                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                                                                           |   |                    | 8,412  |   |                   |   | 9,082 |   |   |   | 25,567 |   |   |   | 29,791 |   |
| Interest      on federal funds purchased and other short-term borrowings                            |   |                    | 111    |   |                   |   | 453 |   |   |   | 348 |   |   |   | 1,606 |   |
| Interest      on securities sold under agreements to repurchase and other long-term      borrowings |   |                    | 2,829  |   |                   |   | 2,879 |   |   |   | 8,457 |   |   |   | 8,523 |   |
| Interest      on subordinated notes payable to unconsolidated trusts                                |   |                    | 527    |   |                   |   | 671 |   |   |   | 1,673 |   |   |   | 2,131 |   |
| Total      interest expense                                                                         |   |                    | 11,879 |   |                   |   | 13,085 |   |   |   | 36,045 |   |   |   | 42,051 |   |
| Net      interest income                                                                            |   |                    | 13,502 |   |                   |   | 14,774 |   |   |   | 41,144 |   |   |   | 44,880 |   |
| Provision      for loan losses                                                                      |   |                    | 6,653  |   |                   |   | 1,780 |   |   |   | 14,269 |   |   |   | 3,365 |   |
| Net      interest income after provision for loan losses                                            |   |                    | 6,849  |   |                   |   | 12,994 |   |   |   | 26,875 |   |   |   | 41,515 |   |
| Noninterest      Income                                                                             |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Service      charges and fees on deposits                                                           |   |                    | 2,424  |   |                   |   | 2,539 |   |   |   | 6,946 |   |   |   | 7,403 |   |
| Allotment      processing fees                                                                      |   |                    | 1,355  |   |                   |   | 1,199 |   |   |   | 4,002 |   |   |   | 3,530 |   |
| Other      service charges, commissions, and fees                                                   |   |                    | 1,183  |   |                   |   | 1,098 |   |   |   | 3,340 |   |   |   | 3,324 |   |
| Data      processing income                                                                         |   |                    | 338    |   |                   |   | 258 |   |   |   | 999 |   |   |   | 843 |   |
| Trust      income                                                                                   |   |                    | 394    |   |                   |   | 535 |   |   |   | 1,431 |   |   |   | 1,585 |   |
| Investment      securities gains, net                                                               |   |                    | 18     |   |                   |   | 5 |   |   |   | 2,076 |   |   |   | 585 |   |
| Other-than-temporary      impairment of investment securities                                       |   |                    |   |   |                   |   | (13,962 | ) |   |   |   |   |   |   | (13,962 | ) |
| Gains      on sale of mortgage loans, net                                                           |   |                    | 228    |   |                   |   | 128 |   |   |   | 919 |   |   |   | 354 |   |
| Income      from company-owned life insurance                                                       |   |                    | 313    |   |                   |   | 310 |   |   |   | 971 |   |   |   | 923 |   |
| Other                                                                                               |   |                    | 275    |   |                   |   | 25 |   |   |   | 394 |   |   |   | 128 |   |
| Total      noninterest income                                                                       |   |                    | 6,528  |   |                   |   | (7,865 | ) |   |   | 21,078 |   |   |   | 4,713 |   |
| Noninterest      Expense                                                                            |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                                                 |   |                    | 7,409  |   |                   |   | 7,411 |   |   |   | 22,285 |   |   |   | 22,519 |   |
| Occupancy      expenses, net                                                                        |   |                    | 1,208  |   |                   |   | 1,140 |   |   |   | 3,925 |   |   |   | 3,340 |   |
| Equipment      expenses                                                                             |   |                    | 794    |   |                   |   | 824 |   |   |   | 2,319 |   |   |   | 2,291 |   |
| Data      processing and communication expenses                                                     |   |                    | 1,352  |   |                   |   | 1,417 |   |   |   | 4,188 |   |   |   | 3,980 |   |
| Bank      franchise tax                                                                             |   |                    | 578    |   |                   |   | 574 |   |   |   | 1,700 |   |   |   | 1,470 |   |
| Deposit      insurance expense                                                                      |   |                    | 726    |   |                   |   | 135 |   |   |   | 2,887 |   |   |   | 310 |   |
| Correspondent      bank fees                                                                        |   |                    | 203    |   |                   |   | 259 |   |   |   | 804 |   |   |   | 767 |   |
| Amortization      of intangibles                                                                    |   |                    | 488    |   |                   |   | 651 |   |   |   | 1,464 |   |   |   | 1,952 |   |
| Other                                                                                               |   |                    | 2,541  |   |                   |   | 2,468 |   |   |   | 7,002 |   |   |   | 7,022 |   |
| Total      noninterest expense                                                                      |   |                    | 15,299 |   |                   |   | 14,879 |   |   |   | 46,574 |   |   |   | 43,651 |   |
| (Loss)      income before income taxes                                                              |   |                    | (1,922 | )      |                   |   | (9,750 | ) |   |   | 1,379 |   |   |   | 2,577 |   |
| Income      tax (benefit) expense                                                                   |   |                    | (1,748 | )      |                   |   | (2,865 | ) |   |   | (951 | ) |   |   | 186 |   |
| Net      (loss) income                                                                              |   |                    | (174   | )      |                   |   | (6,885 | ) |   |   | 2,330 |   |   |   | 2,391 |   |
| Dividends      and accretion on preferred shares                                                    |   |                    | (462   | )      |                   |   |   |   |   |   | (1,338 | ) |   |   |   |   |
| Net      (loss) income available to common shareholders                                             |   | $                       | (636   | )      |                   | $      | (6,885 | ) |   | $ | 992 |   |   | $ | 2,391 |   |
| Per      Common Share                                                                               |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income, basic and diluted                                                           |   | $                       | (.09   | )      |                   | $      |  (.94 | ) |   | $ | .13 |   |   | $ | .32 |   |
| Cash      dividends declared                                                                        |   |                    | .25    |   |                   |   | .33 |   |   |   | .75 |   |   |   | .99 |   |
| Weighted      Average Common Shares Outstanding                                                     |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      & Diluted                                                                            |   |                    | 7,367  |   |                   |   | 7,349 |   |   |   | 7,363 |   |   |   | 7,358 |   |

----

Unaudited Consolidated Statements of ComprehensiveIncome (Loss)

|                                                                                                                                                                       |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                       |   | September      30,      |   |   | September      30,     |   |
| (In      thousands)                                                                                                                                                        |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Net      (Loss) Income                                                                                                                                                     |   | $                       | (174   | )      |                   | $      | (6,885 | ) |   | $ | 2,330 |   |   | $ | 2,391 |   |
| Other      comprehensive income:                                                                                                                                           |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      unrealized holding gain (loss) on available for sale securities arising      during the period, net of tax of $3,404, $267, $3,293, and $1,228,      respectively |   |                    | 6,322  |   |                   |   | (496 | ) |   |   | 6,116 |   |   |   | (2,280 | ) |
|                                                                                                                                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification      adjustment for prior period unrealized (gain) loss recognized during      current period, net of tax of $9, $47, $965, and $85,      respectively    |   |                    | (16    | )      |                   |   | 88 |   |   |   | (1,793 | ) |   |   | (158 | ) |
|                                                                                                                                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in unfunded portion of postretirement benefit obligation, net of tax of      $39, $43, $117 and $131, respectively                                             |   |                    | 73     |   |                   |   | 81 |   |   |   | 217 |   |   |   | 244 |   |
| Other      comprehensive income (loss)                                                                                                                                     |   |                    | 6,379  |   |                   |   | (327 | ) |   |   | 4,540 |   |   |   | (2,194 | ) |
| Comprehensive      Income (Loss)                                                                                                                                           |   | $                       | 6,205  |   |                   | $      | (7,212 | ) |   | $ | 6,870 |   |   | $ | 197 |   |

----

Unaudited Consolidated Statements of Cash Flows

| Nine      months ended September 30, (In thousands)                                             |   | 2009   |     |   | 2008   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Cash      Flows from Operating Activities                                                       |   |   |     |   |   |   |
| Net      income                                                                                 |   | $      | 2,330    |   |   | $      | 2,391 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:     |   |   |     |   |   |   |   |   |
| Depreciation      and amortization                                                              |   |   | 4,738    |   |   |   | 4,853 |   |
| Net      amortization of investment security premiums and    (discounts):                       |   |   |     |   |   |   |   |   |
| Available      for sale                                                                         |   |   | 510      |   |   |   | (94 | ) |
| Held      to maturity                                                                           |   |   | (1       | )      |   |   |   |   |
| Provision      for loan losses                                                                  |   |   | 14,269   |   |   |   | 3,365 |   |
| Noncash      compensation expense                                                               |   |   | 39       |   |   |   | 41 |   |
| Mortgage      loans originated for sale                                                         |   |   | (37,713  | )      |   |   | (13,525 | ) |
| Proceeds      from sale of mortgage loans                                                       |   |   | 39,660   |   |   |   | 12,812 |   |
| Deferred      income tax expense (benefit)                                                      |   |   | 1,639    |   |   |   | (3,249 | ) |
| Gain      on sale of mortgage loans, net                                                        |   |   | (919     | )      |   |   | (354 | ) |
| Loss      on disposal of premises and equipment, net                                            |   |   | 59       |   |   |   | 12 |   |
| Loss      on sale of repossessed assets                                                         |   |   | 432      |   |   |   | 87 |   |
| Gain      on sale of available for sale investment securities, net                              |   |   | (2,076   | )      |   |   | (585 | ) |
| Other-than-temporary      impairment of investment securities                                   |   |   |     |   |   |   | 13,962 |   |
| Decrease      in accrued interest receivable                                                    |   |   | 1,603    |   |   |   | 340 |   |
| Income      from company-owned life insurance                                                   |   |   | (918     | )      |   |   | (913 | ) |
| Decrease      (increase) in other assets                                                        |   |   | 3,636    |   |   |   | (3,364 | ) |
| Decrease      in accrued interest payable                                                       |   |   | (37      | )      |   |   | (955 | ) |
| Increase      in other liabilities                                                              |   |   | 1,550    |   |   |   | 71 |   |
| Net      cash provided by operating activities                                                  |   |   | 28,801   |   |   |   | 14,895 |   |
| Cash      Flows from Investing Activities                                                       |   |   |     |   |   |   |   |   |
| Proceeds      from maturities and calls of investment securities:                               |   |   |     |   |   |   |   |   |
| Available      for sale                                                                         |   |   | 170,293  |   |   |   | 185,925 |   |
| Held      to maturity                                                                           |   |   | 620      |   |   |   | 1,305 |   |
| Proceeds      from sale of available for sale investment securities                             |   |   | 109,202  |   |   |   | 30,672 |   |
| Purchase      of available for sale investment securities                                       |   |   | (325,909 | )      |   |   | (207,112 | ) |
| Loans      originated for investment, net of principal collected                                |   |   | 1,083    |   |   |   | (25,448 | )   |
| Additions      to mortgage servicing rights, net                                                |   |   | (236     | )      |   |   | (65 | ) |
| Purchase      of premises and equipment                                                         |   |   | (1,587   | )      |   |   | (7,596 | ) |
| Proceeds      from sale of repossessed assets                                                   |   |   | 2,775    |   |   |   | 4,040 |   |
| Proceeds      from sale of equipment                                                            |   |   | 32       |   |   |   | 2,356 |   |
| Net      cash used in investing activities                                                      |   |   | (43,727  | )      |   |   | (15,923 | ) |
| Cash      Flows from Financing Activities                                                       |   |   |     |   |   |   |   |   |
| Net      increase in deposits                                                                   |   |   | 71,292   |   |   |   | 73,379 |   |
| Net      (decrease) increase in federal funds purchased and other short-term      borrowings    |   |   | (27,974  | )      |   |   | 2,492 |   |
| Proceeds      from securities sold under agreements to repurchase and other long-term      debt |   |   |     |   |   |   | 27,000 |   |
| Repayments      of securities sold under agreements to repurchase and other long-term      debt |   |   | (6,065   | )      |   |   | (7,518 | ) |
| Proceeds      from issuance of preferred stock, net of issue costs                              |   |   | 29,961   |   |   |   |   |   |
| Dividends      paid, common and preferred                                                       |   |   | (7,006   | )      |   |   | (7,295 | ) |
| Purchase      of common stock                                                                   |   |   |     |   |   |   | (1,048 | ) |
| Shares      issued under Employee Stock Purchase Plan                                           |   |   | 184      |   |   |   | 191 |   |
| Stock      options exercised                                                                    |   |   |     |   |   |   | 30 |   |
| Net      cash provided by financing activities                                                  |   |   | 60,392   |   |   |   | 87,231 |   |
| Net      increase in cash and cash equivalents                                                  |   |   | 45,466   |   |   |   | 86,203 |   |
| Cash      and cash equivalents at beginning of year                                             |   |   | 190,775  |   |   |   | 79,140 |   |
| Cash      and cash equivalents at end of period                                                 |   | $      | 236,241  |   |   | $      | 165,343 |   |
| Supplemental      Disclosures                                                                   |   |   |     |   |   |   |   |   |
| Cash      paid during the period for:                                                           |   |   |     |   |   |   |   |   |
| Interest                                                                                        |   | $      | 36,082   |   |   | $      | 43,006 |   |
| Income      taxes                                                                               |   |   | 2,450    |   |   |   | 5,600 |   |
| Transfers      from loans to repossessed assets                                                 |   |   | 7,000    |   |   |   | 13,105 |   |
| Transfers      from premises to repossessed assets                                              |   |   | 1,506    |   |   |   |   |   |
| Cash      dividends payable, common and preferred                                               |   |   | 2,029    |   |   |   | 2,425 |   |

----

Unaudited Consolidated Statements of Changes inShareholders’ Equity

| (Dollars      in thousands, except per share data)                                |   |      |   |   |              |   |   |    |   |   |     |   |   | Accumulated   |   |   |                |    |
|-----------------------------------------------------------------------------------|--------|-----------|--------|--------|-------------------|--------|--------|---------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------------|---------|
|                                                                              |   |      |   |   |              |   |   |    |   |   |     |   |   | Other         |   |   | Total               |    |
| Nine      months ended                                                            |   | Preferred |   |   | Common      Stock |   |   | Capital |   |   | Retained |   |   | Comprehensive |   |   | Shareholders’ |    |
| September      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                                                                   |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | 2,330 |   |   |   |   |   |   |   | 2,330 |   |
| Other      comprehensive loss                                                     |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   | 4,540 |   |   |   | 4,540 |   |
| Cash      dividends declared-common, $.75 per share                               |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | (5,521 | ) |   |   |   |   |   |   | (5,521 | ) |
| Preferred      stock dividends                                                    |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | (1,088 | ) |   |   |   |   |   |   | (1,088 | ) |
| Preferred      stock discount accretion                                           |   |      | 250    |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | (250 | ) |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to Employee Stock Purchase Plan                       |   |      |   |   |              |   | 14     |    |   |   | 1        |   |   |          | 183    |   |                |    |   |   |   |   |   |   |   |   | 184 |   |
| Noncash      compensation expense attributed to Employee Stock Purchase      Plan |   |      |   |   |              |   |   |    |   |   |     |   |   |          | 39     |   |                |    |   |   |   |   |   |   |   |   | 39 |   |
| Balance      at September 30, 2009                                                |   | $         | 28,259 |   |              |   | 7,371  |    |   | $      | 921      |   |   | $             | 50,396 |   |                | $       | 111,890 |   |   | $ | 7,275 |   |   | $ | 198,741 |   |
|                                                                              |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   |   |   |   |   |   |   |
| Balance      at January 1, 2008                                                   |   |      |   |   |              |   | 7,385  |    |   | $      | 923      |   |   | $             | 48,176 |   |                | $       | 122,498 |   |   | $ | (3,106 | )  |   | $ | 168,491 |   |
| Net      income                                                                   |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | 2,391 |   |   |   |   |   |   |   | 2,391 |   |
| Other      comprehensive loss                                                     |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    |   |   |   |   | (2,194 | )  |   |   | (2,194 | ) |
| Cash      dividends declared, $.99 per share                                      |   |      |   |   |              |   |   |    |   |   |     |   |   |          |   |   |                |    | (7,284 | ) |   |   |   |   |   |   | (7,284 | ) |
| Purchase      of common stock                                                     |   |      |   |   |              |   | (43    | )       |   |   | (5       | )      |   |          | (281   | )      |                |    | (762 | ) |   |   |   |   |   |   | (1,048 | ) |
| Stock      options exercised, including related tax      benefits            |   |      |   |   |              |   | 1      |    |   |   |     |   |   |          | 30     |   |                |    |   |   |   |   |   |   |   |   | 30 |   |
| Shares      issued pursuant to Employee Stock Purchase Plan                       |   |      |   |   |              |   | 11     |    |   |   | 1        |   |   |          | 190    |   |                |    |   |   |   |   |   |   |   |   | 191 |   |
| Noncash      compensation expense attributed to Employee Stock Purchase      Plan |   |      |   |   |              |   |   |    |   |   |     |   |   |          | 41     |   |                |    |   |   |   |   |   |   |   |   | 41 |   |
| Balance      at September 30, 2008                                                |   |      |   |   |              |   | 7,354  |    |   | $      | 919      |   |   | $             | 48,156 |   |                | $       | 116,843 |   |   | $ | (5,300 | )  |   | $ | 160,618 |   |

----

Notes to Unaudited Consolidated FinancialStatements

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

----

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

| 3. | Adoption      of New Accounting Standards |
|----|-------------------------------------------|

----

|   | · | 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 new guidance 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 new guidance and to quantify      its effects, if practicable. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Applies      to all fair value measurements whenappropriate. |
|--------|--------|--------------------------------------------------------------|

|   | · | 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 have to 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; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Recently      Issued But Not Yet Effective Accounting  Standards |
|----|------------------------------------------------------------------|

----

|                                                                            |   | Three      Months EndedSeptember      30, |   |   | Nine      Months EndedSeptember      30, |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
| (In      thousands, except per share data)                                      |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Net      (loss) income, basic and diluted                                       |   | $                                         | (174   | )      |                                     | $      | (6,885 | ) |   | $ | 2,330 |   |   | $ | 2,391 |   |
| Preferred      stock dividends and discount accretion                           |   |                                      | (462   | )      |                                     |   |   |   |   |   | (1,338 | ) |   |   |   |   |
| Net      income (loss) available to common shareholders, basic and      diluted |   | $                                         | (636   | )      |                                     | $      | (6,885 | ) |   | $ | 992 |   |   | $ | 2,391 |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Average      common shares outstanding, basic and diluted                       |   |                                      | 7,367  |   |                                     |   | 7,349 |   |   |   | 7,363 |   |   |   | 7,358 |   |
|                                                                            |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income per common share, basic and diluted                      |   | $                                         | (.09   | )      |                                     | $      | (.94 | ) |   | $ | .13 |   |   | $ | .32 |   |

----

|   | 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 identicalsecurities. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 September 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 ASC Topic      820. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                               |   |            |    |   | 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) |   |
|                                                                               |   |            |    |   |                                                                    |   |   |   |   |   |   |   |
| September      30, 2009                                                            |   |            |    |   |                                                                    |   |   |   |   |   |   |   |
| U.S.      Treasury securities                                                      |   | $               | 19,064  |   |                                                                    | $      | 19,064 |   |   |   |   |   |   |   |
| Obligations      of U.S. government-sponsored entities                             |   |            | 64,199  |   |                                                                    |   |   |   |   | $ | 64,199 |   |   |   |   |
| Obligations      of states and political subdivisions                              |   |            | 112,960 |   |                                                                    |   |   |   |   |   | 112,960 |   |   |   |   |
| Mortgage-backed      securities – residential                                |   |            | 365,833 |   |                                                                    |   |   |   |   |   | 365,833 |   |   |   |   |
| Money      market mutual funds                                                     |   |            | 1,357   |   |                                                                    |   |   |   |   |   | 1,357 |   |   |   |   |
| Corporate      debt securities                                                     |   |            | 17,894  |   |                                                                    |   |   |   |   |   | 17,894 |   |   |   |   |
| Total                                                                              |   | $               | 581,307 |   |                                                                    | $      | 19,064 |   |   | $ | 562,243 |   |   | $ | 0 |   |
|                                                                               |   |            |    |   |                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008                                                             |   | $               | 525,353 |   |                                                                    | $      | 10,256 |   |   | $ | 515,097 |   |   | $ | 0 |   |

----

----

|                                                                                    |   |                    |      |   |                   |   |
|-----------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                                    |   | September      30, 2009 |      |   | December      31, 2008 |   |
|                                                                                    |   | Carrying                |      |   | Fair                   |   |   | Carrying |   |   | Fair |   |
| (In      thousands)                                                                     |   | Amount                  |      |   | Value                  |   |   | Amount |   |   | Value |   |
| Assets                                                                                  |   |                    |      |   |                   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                                          |   | $                       | 236,241   |   |                   | $      | 236,241 |   |   | $ | 190,775 |   |   | $ | 190,775 |   |
| Investment      securities:                                                             |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB      and similar stock                                                             |   |                    | 9,118     |   |                   |   | N/A |   |   |   | 8,942 |   |   |   | N/A |   |
| Held      to maturity                                                                   |   |                    | 1,195     |   |                   |   | 1,151 |   |   |   | 1,814 |   |   |   | 1,667 |   |
| Loans,      net                                                                         |   |                    | 1,272,372 |   |                   |   | 1,277,293 |   |   |   | 1,295,752 |   |   |   | 1,309,604 |   |
| Accrued      interest receivable                                                        |   |                    | 10,565    |   |                   |   | 10,565 |   |   |   | 12,168 |   |   |   | 12,168 |   |
|                                                                                    |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                             |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                |   |                    | 1,665,407 |   |                   |   | 1,671,623 |   |   |   | 1,594,115 |   |   |   | 1,601,567 |   |
| Federal      funds purchased and other short-term borrowings                            |   |                    | 49,500    |   |                   |   | 49,500 |   |   |   | 77,474 |   |   |   | 77,474 |   |
| Securities      sold under agreements to repurchase and other long-term      borrowings |   |                    | 280,626   |   |                   |   | 301,537 |   |   |   | 286,691 |   |   |   | 311,259 |   |
| Subordinated      notes payable to unconsolidated trusts                                |   |                    | 48,970    |   |                   |   | 28,249 |   |   |   | 48,970 |   |   |   | 18,518 |   |
| Accrued      interest payable                                                           |   |                    | 5,774     |   |                   |   | 5,774 |   |   |   | 5,811 |   |   |   | 5,811 |   |

|                                                   |   |      |    |   |                  |   |      |                   |   |   |            |   |
|--------------------------------------------------------|--------|-----------|---------|--------|-----------------------|--------|-----------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Amortized |    |   | Gross                 |   |      | Gross                  |   |   | Estimated       |   |
| September      30, 2009 (In thousands)                 |   | Cost      |    |   | Unrealized      Gains |   |      | Unrealized      Losses |   |   | Fair      Value |   |
| Available      For Sale                                |   |      |    |   |                  |   |      |                   |   |   |            |   |
| Obligations      of U.S. government-sponsored entities |   | $         | 63,878  |   |                  | $      |  337 |                   |   | $      | 16              |   |   | $ | 64,199 |   |
| Obligations      of states and political subdivisions  |   |      | 109,858 |   |                  |   | 3,559     |                   |   |   | 457             |   |   |   | 112,960 |   |
| Mortgage-backed      securities – residential    |   |      | 352,946 |   |                  |   | 13,101    |                   |   |   | 214             |   |   |   | 365,833 |   |
| U.S.      Treasury securities                          |   |      | 18,990  |   |                  |   | 74        |                   |   |   |            |   |   |   | 19,064 |   |
| Money      market mutual funds                         |   |      | 1,357   |   |                  |   |      |                   |   |   |            |   |   |   | 1,357 |   |
| Corporate      debt securities                         |   |      | 20,031  |   |                  |   | 40        |                   |   |   | 2,177           |   |   |   | 17,894 |   |
| Equity      securities                                 |   |      | 9,118   |   |                  |   |      |                   |   |   |            |   |   |   | 9,118 |   |
| Total      securities – available for sale       |   | $         | 576,178 |   |                  | $      | 17,111    |                   |   | $      | 2,864           |   |   | $ | 590,425 |   |
| Held      To Maturity                                  |   |      |    |   |                  |   |      |                   |   |   |            |   |   |   |   |   |
| Obligations      of states and political subdivisions  |   | $         | 1,195   |   |                  | $      | 0         |                   |   | $      | 44              |   |   | $ | 1,151 |   |

----

|                                        |   |                    |    |   |                  |   |
|---------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                                        |   | Available      For Sale |    |   | Held      To Maturity |   |
|                                        |   | Amortized               |    |   | Estimated             |   |   | Amortized |   |   | Estimated |   |
| September      30, 2009 (In thousands)      |   | Cost                    |    |   | Fair      Value       |   |   | Cost |   |   | Fair      Value |   |
| Due      in one year or less                |   | $                       | 28,976  |   |                  | $      | 29,108 |   |   | $ | 170 |   |   | $ | 170 |   |
| Due      after one year through five years  |   |                    | 81,086  |   |                  |   | 82,216 |   |   |   |   |   |   |   |   |   |
| Due      after five years through ten years |   |                    | 37,961  |   |                  |   | 39,157 |   |   |   |   |   |   |   |   |   |
| Due      after ten years                    |   |                    | 66,091  |   |                  |   | 64,993 |   |   |   | 1,025 |   |   |   | 981 |   |
| Mortgage-backed      securities             |   |                    | 352,946 |   |                  |   | 365,833 |   |   |   |   |   |   |   |   |   |
| Total                                       |   | $                       | 567,060 |   |                  | $      | 581,307 |   |   | $ | 1,195 |   |   | $ | 1,151 |   |

|                                                                                |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                |   | September      30,      |   |   | September      30,     |   |
| (In      thousands)                                                                 |   | 2009                    |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Gross      realized gains                                                           |   | $                       | 18     |   |                   | $      | 15 |   |   | $ | 2,119 |   |   | $ | 699 |   |
| Gross      realized losses                                                          |   |                    |   |   |                   |   | 10 |   |   |   | 43 |   |   |   | 114 |   |
| Net      realized gains                                                             |   | $                       | 18     |   |                   | $      | 5 |   |   | $ | 2,076 |   |   | $ | 585 |   |
|                                                                                |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from sales and calls of available for sale investment      securities |   | $                       | 36,288 |   |                   | $      | 19,566 |   |   | $ | 207,265 |   |   | $ | 74,647 |   |

|                                                   |   |                     |   |   |                   |   |   |            |   |
|--------------------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                                   |   | Less      than 12 Months |   |   | 12      Months or More |   |   | Total           |   |
|  September      30, 2009 (In thousands)           |   | Fair      Value          |   |   | UnrealizedLosses       |   |   | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
| Obligations      of U.S. government-sponsored entities |   | $                        | 19,993 |   |                   | $      | 16     |            |   |   |   |   |   |   |   | $ | 19,993 |   |   | $ | 16 |   |
| Obligations      of states and political subdivisions  |   |                     | 10,635 |   |                   |   | 422    |            |   | $ | 2,902 |   |   | $ | 79 |   |   |   | 13,537 |   |   |   | 501 |   |
| Mortgage-backed      securities – residential    |   |                     | 27,433 |   |                   |   | 214    |            |   |   |   |   |   |   |   |   |   |   | 27,433 |   |   |   | 214 |   |
| Corporate      debt securities                         |   |                     |   |   |                   |   |   |            |   |   | 15,773 |   |   |   | 2,177 |   |   |   | 15,773 |   |   |   | 2,177 |   |
| Total                                                  |   | $                        | 58,061 |   |                   | $      | 652    |            |   | $ | 18,675 |   |   | $ | 2,256 |   |   | $ | 76,736 |   |   | $ | 2,908 |   |

|   | 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. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | Loans |
|----|-------|

|                                                                 |   | September      30, 2009 |      |   | December      31, 2008 |   |
|----------------------------------------------------------------------|--------|------------------------------|-----------|--------|-----------------------------|--------|
| (Dollars      in thousands)                                          |   | Amount                       |      |   | Amount                      |   |
|                                                                 |   |                         |      |   |                        |   |
| Commercial,      financial, and agriculture                          |   | $                            | 147,384   |   |                        | $      | 144,788 |   |
| Real      estate – construction                                |   |                         | 234,392   |   |                        |   | 260,524 |   |
| Real      estate mortgage – residential                        |   |                         | 453,230   |   |                        |   | 444,487 |   |
| Real      estate mortgage - farmland and other commercialenterprises |   |                         | 394,815   |   |                        |   | 390,424 |   |
| Installment                                                          |   |                         | 38,935    |   |                        |   | 45,135 |   |
| Lease      financing                                                 |   |                         | 25,638    |   |                        |   | 27,222 |   |
| Total                                                           |   | $                            | 1,294,394 |   |                        | $      | 1,312,580 |   |

----

| (Dollars      in thousands)     |   | September      30, 2009 |   |   | December      31, 2008 |   |
|---------------------------------|--------|------------------------------|--------|--------|-----------------------------|--------|
|                            |   |                         |   |   |                        |   |
| Balance,      beginning of year |   | $                            | 16,828 |   |                        | $      | 14,216 |   |
| Provision      for loan losses  |   |                         | 14,269 |   |                        |   | 5,321 |   |
| Recoveries                      |   |                         | 389    |   |                        |   | 1,833 |   |
| Loans      charged off          |   |                         | (9,464 | )      |                        |   | (4,542 | ) |
| Balance,      end of period     |   | $                            | 22,022 |   |                        | $      | 16,828 |   |

| (Dollars      in thousands)                                     |   | September      30, 2009 |   |   | December      31, 2008 |   |
|-----------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------|--------|
|                                                            |   |                         |   |   |                        |   |
| Impaired      loans with no allocated allowance for loan losses |   | $                            | 35,480 |   |                        | $      | 4,684 |   |
| Impaired      loans with allocated allowance for loan losses    |   |                         | 64,034 |   |                        |   | 43,670 |   |
| Total      impaired loans                                       |   | $                            | 99,514 |   |                        | $      | 48,354 |   |
|                                                            |   |                         |   |   |                        |   |   |   |
| Allowance      for loan losses related to impaired loans        |   | $                            | 8,014  |   |                        | $      | 3,619 |   |
| Average      impaired loans                                     |   | $                            | 70,945 |   |                        | $      | 34,364 |   |
|                                                            |   |                         |   |   |                        |   |   |   |
| Nonaccrual      loans                                           |   | $                            | 34,686 |   |                        | $      | 21,545 |   |
| Restructured      loans                                         |   |                         | 6,374  |   |                        |   |   |   |
| Loans      past due 90 days or more and still accruing          |   |                         | 3,426  |   |                        |   | 3,913 |   |
| Total      nonperforming loans                                  |   | $                            | 44,486 |   |                        | $      | 25,458 |   |

----

|                                          |   | September      30, 2009  |   |   | December      31, 2008 |   |
|-----------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|
|                                          |   | Tier      1 Capital |   |   | TotalCapital           |   |   | Tier      1Leverage |   |   | Tier      1 Capital |   |   | TotalCapital |   |   | Tier      1Leverage |   |
| Consolidated                                  |   |                     | 13.49  | %      |                   |   | 14.75 | % |   |   | 8.27 | % |   |   | 11.32 | % |   |   | 12.55 | % |   |   | 7.37 | % |
| Farmers      Bank & Capital Trust Company |   |                     | 10.69  |   |                   |   | 11.95 |   |   |   | 5.96 |   |   |   | 10.55 |   |   |   | 11.81 |   |   |   | 6.05 |   |
| United      Bank & Trust Co.              |   |                     | 9.98   |   |                   |   | 11.24 |   |   |   | 6.16 |   |   |   | 9.66 |   |   |   | 10.91 |   |   |   | 6.37 |   |
| The      Lawrenceburg Bank & Trust Co.    |   |                     | 9.93   |   |                   |   | 11.18 |   |   |   | 5.36 |   |   |   | 9.34 |   |   |   | 10.59 |   |   |   | 5.00 |   |
| First      Citizens Bank                      |   |                     | 12.34  |   |                   |   | 13.22 |   |   |   | 8.42 |   |   |   | 10.38 |   |   |   | 11.20 |   |   |   | 7.49 |   |
| Citizens      Bank of Northern Kentucky, Inc. |   |                     | 10.26  |   |                   |   | 11.34 |   |   |   | 7.25 |   |   |   | 9.67 |   |   |   | 10.74 |   |   |   | 7.28 |   |

----

----

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

|   | § | The      $6.7 million or $.85 improvement in per common share earnings in the third      quarter of 2009 compared to the third quarter of 2008 was heavily impacted      by a pre-tax $14.0 million other-than-temporary impairment (“OTTI”) charge      in the third quarter a year ago. The impairment charge related to the      Company’s investment in preferred stocks of the Federal National Mortgage      Association (“Fannie”) and the Federal Home Loan Mortgage Corporation      (“Freddie”). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      Company increased its provision for loan losses $4.9 million to $6.7      million as economic conditions and real estate markets continue to      negatively impact the Company and its banks’ loan    portfolio. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Margin      compression, primarily due to a larger decline in the average rate earned      on earning assets compared to the average rate paid on interest bearing      liabilities, lowered net interest income $1.3 million or 8.6%. Net      interest margin declined to 2.84% in the current quarter compared to 3.27%      in the same quarter a year earlier. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest      income increased $14.4 million, mainly attributed to the $14.0 million      OTTI charge that was recorded in the prioryear. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest      expenses increased $420 thousand or 2.8% due mainly to the increase in      deposit insurance premiums. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | § | The      $1.1 million decrease in the income tax benefit between the periods is      mainly attributable to the OTTI charge during the third quarter of      2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | Return      on average assets (“ROA”) and equity (“ROE”) was (.03)% and (.35)% for the      current quarter, respectively, compared to (1.30)% and (16.45)% for the      previous-year quarter. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Net      interest spread and margin for the current quarter was 2.61% and 2.84%,      respectively compared to 3.03% and 3.27% a year  earlier. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Quarter      Ended September 30,                                                                                                                  |   | 2009           |           |   | 2008     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|----------|--------|
|  (In      thousands)                                                                                                                         |   | AverageBalance |           |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Earning      Assets                                                                                                                               |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                                                        |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                           |   | $              | 460,003        |   |     | $      | 5,019 |   |   |   | 4.33 | % |   | $ | 418,043 |   |   | $ | 5,411 |   |   |   | 5.15 | % |
| Nontaxable1                                                                                                                                       |   |           | 101,465        |   |     |   | 1,330 |   |   |   | 5.20 |   |   |   | 85,489 |   |   |   | 1,148 |   |   |   | 5.34 |   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell                                        |   |           | 111,445        |   |     |   | 65 |   |   |   | .23 |   |   |   | 41,782 |   |   |   | 195 |   |   |   | 1.86 |   |
| Loans1,2,3                                                                                                                                        |   |           | 1,304,705      |   |     |   | 19,623 |   |   |   | 5.97 |   |   |   | 1,308,192 |   |   |   | 21,583 |   |   |   | 6.56 |   |
| Total      earning assets                                                                                                                         |   |           | 1,977,618      |   |     | $      | 26,037 |   |   |   | 5.22 | % |   |   | 1,853,506 |   |   | $ | 28,337 |   |   |   | 6.08 | % |
| Allowance      for loan losses                                                                                                                    |   |           | (20,706        | )      |     |   |   |   |   |   |   |   |   |   | (14,911 | ) |   |   |   |   |   |   |   |   |
| Total      earning assets, net of allowance for loan losses                                                                                       |   |           | 1,956,912      |   |     |   |   |   |   |   |   |   |   |   | 1,838,595 |   |   |   |   |   |   |   |   |   |
| Nonearning      Assets                                                                                                                            |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                                      |   |           | 106,584        |   |     |   |   |   |   |   |   |   |   |   | 66,765 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                  |   |           | 40,222         |   |     |   |   |   |   |   |   |   |   |   | 41,221 |   |   |   |   |   |   |   |   |   |
| Other      assets                                                                                                                                 |   |           | 164,624        |   |     |   |   |   |   |   |   |   |   |   | 165,172 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                 |   | $              | 2,268,342      |   |     |   |   |   |   |   |   |   |   | $ | 2,111,753 |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities                                                                                                                 |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                          |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing demand                                                                                                                      |   | $              | 236,643        |   |     | $      | 145 |   |   |   | .24 | % |   | $ | 246,453 |   |   | $ | 346 |   |   |   | 0.56 | % |
| Savings                                                                                                                                           |   |           | 257,038        |   |     |   | 503 |   |   |   | .78 |   |   |   | 267,191 |   |   |   | 895 |   |   |   | 1.33 |   |
| Time                                                                                                                                              |   |           | 924,712        |   |     |   | 7,764 |   |   |   | 3.33 |   |   |   | 774,127 |   |   |   | 7,841 |   |   |   | 4.03 |   |
| Federal      funds purchased and other short-term borrowings                                                                                      |   |           | 59,692         |   |     |   | 111 |   |   |   | .74 |   |   |   | 83,929 |   |   |   | 453 |   |   |   | 2.15 |   |
| Securities      sold under agreements to     repurchase      and other long-term     borrowings |   |           |   329,654 |   |     |   |   3,356 |   |   |   |   4.04 |   |   |   |    333,796 |   |   |   |   3,550 |   |   |   |   4.23 |   |
| Total      interest bearing liabilities                                                                                                           |   |           | 1,807,739      |   |     | $      | 11,879 |   |   |   | 2.61 | % |   |   | 1,705,496 |   |   | $ | 13,085 |   |   |   | 3.05 | % |
| Noninterest      Bearing Liabilities                                                                                                              |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth      of Kentucky deposits                                                                                                            |   |           | 29,347         |   |     |   |   |   |   |   |   |   |   |   | 34,144 |   |   |   |   |   |   |   |   |   |
| Other      demand deposits                                                                                                                        |   |           | 191,623        |   |     |   |   |   |   |   |   |   |   |   | 176,388 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                                                            |   |           | 42,914         |   |     |   |   |   |   |   |   |   |   |   | 29,186 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                                            |   |           | 2,071,623      |   |     |   |   |   |   |   |   |   |   |   | 1,945,214 |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                                                                   |   |           | 196,719        |   |     |   |   |   |   |   |   |   |   |   | 166,539 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders’ equity                                                                                             |   | $              | 2,268,342      |   |     |   |   |   |   |   |   |   |   | $ | 2,111,753 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                          |   |           |           |   |     |   | 14,158 |   |   |   |   |   |   |   |   |   |   |   | 15,252 |   |   |   |   |   |
| TE      basis adjustment                                                                                                                          |   |           |           |   |     |   | (656 | ) |   |   |   |   |   |   |   |   |   |   | (478 | ) |   |   |   |   |
| Net      interest income                                                                                                                          |   |           |           |   |     | $      | 13,502 |   |   |   |   |   |   |   |   |   |   | $ | 14,774 |   |   |   |   |   |
| Net      interest spread                                                                                                                          |   |           |           |   |     |   |   |   |   |   | 2.61 | % |   |   |   |   |   |   |   |   |   |   | 3.03 | % |
| Impact      of noninterest bearing sources of funds                                                                                               |   |           |           |   |     |   |   |   |   |   | .23 |   |   |   |   |   |   |   |   |   |   |   | .24 |   |
| Net      interest margin                                                                                                                          |   |           |           |   |     |   |   |   |   |   | 2.84 | % |   |   |   |   |   |   |   |   |   |   | 3.27 | % |

----

| (In      thousands)                                                                                                  |   | Variance |      |          | Variance      Attributed to |   |
|----------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|---------------|-----------------------------|--------|
| Quarter      Ended September 30,                                                                                     |   |     | 2009/2008 | 1             |                        | Volume |   |   | Rate |   |
|                                                                                                                 |   |     |      |          |                        |   |   |   |   |   |
| Interest      Income                                                                                                 |   |     |      |          |                        |   |   |   |   |   |
| Taxable      investment securities                                                                                   |   | $        | (392      | )   |                        | $      | 2,499 |   |   | $ | (2,891 | )   |
| Nontaxable      investment securities2                                                                               |   |     | 182       |          |                        |   | 370 |   |   |   | (188 | )   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell           |   |     | (130      | )   |                        |   | 808 |   |   |   | (938 | )   |
| Loans2                                                                                                               |   |     | (1,960    | )   |                        |   | (56 | ) |   |   | (1,904 | )   |
| Total      interest income                                                                                           |   |     | (2,300    | )   |                        |   | 3,621 |   |   |   | (5,921 | )   |
| Interest      Expense                                                                                                |   |     |      |          |                        |   |   |   |   |   |   |   |
| Interest      bearing demand deposits                                                                                |   |     | (201      | )   |                        |   | (13 | )   |   |   | (188 | )   |
| Savings      deposits                                                                                                |   |     | (392      | )   |                        |   | (33 | )   |   |   | (359 | )   |
| Time      deposits                                                                                                   |   |     | (77       | )   |                        |   | 5,685 |   |   |   | (5,762 | )   |
| Federal      funds purchased and other short-term borrowings                                                         |   |     | (342      | )   |                        |   | (105 | )   |   |   | (237 | )   |
| Securities      sold under agreements to repurchase and     other      long-term borrowings |   |     | (194      | )        |                        |   | (42 | )   |   |   | (152 | )   |
| Total      interest expense                                                                                          |   |     | (1,206    | )   |                        |   | 5,492 |   |   |   | (6,698 | )   |
| Net      interest income                                                                                             |   | $        | (1,094    | )   |                        | $      | (1,871 | )   |   | $ | 777 |   |
| Percentage      change                                                                                               |   |     | 100.0     | %             |                        |   | 171.0 | % |   |   | (71.0 | )% |

----

----

|   | § | Net      income decreased $61 thousand or 2.6% in the nine-month comparison. Per      common share earnings decreased $.19 or 59.4% in the comparison due mainly      to the impact of preferred stock dividends and related accretion, which      did not exist in the prior year. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      provision for loan losses increased $10.9 million in the current nine      months and is attributed to a sharp increase in nonperforming loans,      primarily nonaccrual loans secured by real estate      developments. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Net      interest margin declined 42 basis points to 2.91% in the current nine      months compared to 3.33% a year earlier. The decrease in margin was driven      by a decline in the average rate earned on earning assets, which outpaced      the drop in the average interest rate paid on interest bearing      liabilities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest      income increased $16.4 million driven mainly by the $14.0 million OTTI      charge that was recorded in the prior nine months and higher investment      securities gains of $1.5 million in the current nine    months. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Noninterest      expenses increased $2.9 million or 6.7% due mainly to the increase in      deposit insurance. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | § | Income      taxes positively impacted net income by $1.1 million due to an increase in      tax-exempt investments in 2009 compared to 2008 as well as expected      decreased annual pre-tax net income in2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | ROA      and ROE was .14% and 1.58%, respectively in the current nine months. This      represents a decrease of 1 basis point in ROA and 29 basis points in ROE      compared to the same period a yearago. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Net      interest spread and margin for the current nine months was 2.66% and      2.91%, respectively compared to 3.06% and 3.33% a year  ago. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Nine      Months Ended September 30,                                                                                                                          |   | 2009           |           |   | 2008     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|----------|--------|
|  (In      thousands)                                                                                                                                     |   | AverageBalance |           |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Earning      Assets                                                                                                                                           |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                                                                                                    |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                                       |   | $              | 440,306        |   |     | $      | 15,559 |   |   |   | 4.72 | % |   | $ | 425,650 |   |   | $ | 17,242 |   |   |   | 5.41 | % |
| Nontaxable1                                                                                                                                                   |   |           | 97,258         |   |     |   | 3,896 |   |   |   | 5.36 |   |   |   | 87,747 |   |   |   | 3,520 |   |   |   | 5.36 |   |
| Time      deposits with banks, federal funds sold and securities purchased under      agreements to resell                                                    |   |           | 129,055        |   |     |   | 229 |   |   |   | .24 |   |   |   | 57,102 |   |   |   | 1,049 |   |   |   | 2.45 |   |
| Loans1,2,3                                                                                                                                                    |   |           | 1,313,182      |   |     |   | 59,365 |   |   |   | 6.04 |   |   |   | 1,300,659 |   |   |   | 66,904 |   |   |   | 6.87 |   |
| Total      earning assets                                                                                                                                     |   |           | 1,979,801      |   |     | $      | 79,049 |   |   |   | 5.34 | % |   |   | 1,871,158 |   |   | $ | 88,715 |   |   |   | 6.33 | % |
| Allowance      for loan losses                                                                                                                                |   |           | (18,325        | )      |     |   |   |   |   |   |   |   |   |   | (14,518 | ) |   |   |   |   |   |   |   |   |
| Total      earning assets, net of allowance for loan losses                                                                                                   |   |           | 1,961,476      |   |     |   |   |   |   |   |   |   |   |   | 1,856,640 |   |   |   |   |   |   |   |   |   |
| Nonearning      Assets                                                                                                                                        |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                                                  |   |           | 88,723         |   |     |   |   |   |   |   |   |   |   |   | 76,856 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                              |   |           | 41,525         |   |     |   |   |   |   |   |   |   |   |   | 40,327 |   |   |   |   |   |   |   |   |   |
| Other      assets                                                                                                                                             |   |           | 162,482        |   |     |   |   |   |   |   |   |   |   |   | 154,134 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                             |   | $              | 2,254,206      |   |     |   |   |   |   |   |   |   |   | $ | 2,127,957 |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities                                                                                                                             |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                                      |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing demand                                                                                                                                  |   | $              | 248,719        |   |     | $      | 579 |   |   |   | .31 | % |   | $ | 260,393 |   |   | $ | 1,520 |   |   |   | 0.78 | % |
| Savings                                                                                                                                                       |   |           | 255,954        |   |     |   | 1,476 |   |   |   | .77 |   |   |   | 264,622 |   |   |   | 2,803 |   |   |   | 1.41 |   |
| Time                                                                                                                                                          |   |           | 895,477        |   |     |   | 23,512 |   |   |   | 3.51 |   |   |   | 778,160 |   |   |   | 25,468 |   |   |   | 4.37 |   |
| Federal      funds purchased and other short-term borrowings                                                                                                  |   |           | 65,232         |   |     |   | 348 |   |   |   | .71 |   |   |   | 84,791 |   |   |   | 1,606 |   |   |   | 2.53 |   |
| Securities      sold under agreements to      repurchase      and other long-term      borrowings |   |           |   332,869 |   |     |   |   10,130 |   |   |   |   4.07 |   |   |   |   328,716 |   |   |   |   10,654 |   |   |   |   4.33 |   |
| Total      interest bearing liabilities                                                                                                                       |   |           | 1,798,251      |   |     | $      | 36,045 |   |   |   | 2.68 | % |   |   | 1,716,682 |   |   | $ | 42,051 |   |   |   | 3.27 | % |
| Noninterest      Bearing Liabilities                                                                                                                          |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth      of Kentucky deposits                                                                                                                        |   |           | 34,939         |   |     |   |   |   |   |   |   |   |   |   | 37,811 |   |   |   |   |   |   |   |   |   |
| Other      demand deposits                                                                                                                                    |   |           | 186,988        |   |     |   |   |   |   |   |   |   |   |   | 175,771 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                                                                                                                        |   |           | 37,401         |   |     |   |   |   |   |   |   |   |   |   | 27,255 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                                                                                        |   |           | 2,057,579      |   |     |   |   |   |   |   |   |   |   |   | 1,957,519 |   |   |   |   |   |   |   |   |   |
| Shareholders’      equity                                                                                                                               |   |           | 196,627        |   |     |   |   |   |   |   |   |   |   |   | 170,438 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders’                                                                                                                |   |           |           |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity                                                                                                                                                        |   | $              | 2,254,206      |   |     |   |   |   |   |   |   |   |   | $ | 2,127,957 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                                      |   |           |           |   |     |   | 43,004 |   |   |   |   |   |   |   |   |   |   |   | 46,664 |   |   |   |   |   |
| TE      basis adjustment                                                                                                                                      |   |           |           |   |     |   | (1,860 | ) |   |   |   |   |   |   |   |   |   |   | (1,784 | ) |   |   |   |   |
| Net      interest income                                                                                                                                      |   |           |           |   |     | $      | 41,144 |   |   |   |   |   |   |   |   |   |   | $ | 44,880 |   |   |   |   |   |
| Net      interest spread                                                                                                                                      |   |           |           |   |     |   |   |   |   |   | 2.66 | % |   |   |   |   |   |   |   |   |   |   | 3.06 | % |
| Impact      of noninterest bearing sources of funds                                                                                                           |   |           |           |   |     |   |   |   |   |   | .25 |   |   |   |   |   |   |   |   |   |   |   | .27 |   |
| Net      interest margin                                                                                                                                      |   |           |           |   |     |   |   |   |   |   | 2.91 | % |   |   |   |   |   |   |   |   |   |   | 3.33 | % |

----

| (In      thousands)                                                                                       |   | Variance |      |          | Variance      Attributed to |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------|-----------|---------------|-----------------------------|--------|
| Nine      Months Ended September 30,                                                                      |   |     | 2009/2008 | 1             |                        | Volume |   |   | Rate |   |
|                                                                                                      |   |     |      |          |                        |   |   |   |   |   |
| Interest      Income                                                                                      |   |     |      |          |                        |   |   |   |   |   |
| Taxable      investment securities                                                                        |   | $        | (1,683    | )   |                        | $      | 891 |   |   | $ | (2,574 | ) |
| Nontaxable      investment securities2                                                                    |   |     | 376       |          |                        |   | 376 |   |   |   |   |   |
| Time      deposits with banks, federal funds sold andsecurities      purchased under agreements to resell |   |     | (820      | )   |                        |   | 993 |   |   |   | (1,813 | ) |
| Loans2                                                                                                    |   |     | (7,539    | )   |                        |   | 1,037 |   |   |   | (8,576 | ) |
| Total      interest income                                                                                |   |     | (9,666    | )   |                        |   | 3,297 |   |   |   | (12,963 | ) |
| Interest      Expense                                                                                     |   |     |      |          |                        |   |   |   |   |   |   |   |
| Interest      bearing demand deposits                                                                     |   |     | (941      | )   |                        |   | (65 | ) |   |   | (876 | ) |
| Savings      deposits                                                                                     |   |     | (1,327    | )   |                        |   | (89 | ) |   |   | (1,238 | ) |
| Time      deposits                                                                                        |   |     | (1,956    | )   |                        |   | 4,957 |   |   |   | (6,913 | ) |
| Federal      funds purchased and other short-term   borrowings                             |   |     | (1,258    | )   |                        |   | (306 | )   |   |   | (952 | ) |
| Securities      sold under agreements to repurchase and   other      long-term borrowings  |   |     | (524      | )   |                        |   | 206 |   |   |   | (730 | ) |
| Total      interest expense                                                                               |   |     | (6,006    | )   |                        |   | 4,703 |   |   |   | (10,709 | ) |
| Net      interest income                                                                                  |   | $        | (3,660    | )   |                        | $      | (1,406 | ) |   | $ | (2,254 | ) |
| Percentage      change                                                                                    |   |     | 100.0     | %             |                        |   | 38.4 | % |   |   | 61.6 | % |

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|                                                                 |   | September      30, 2009 |      |   | December      31, 2008 |   |
|----------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
| (Dollars      in thousands)                                          |   | Amount                  |      |   | %                      |   |   | Amount |   |   | % |   |
|                                                                 |   |                    |      |   |                   |   |   |   |   |   |   |   |
| Commercial,      financial, and agriculture                          |   | $                       | 147,384   |   |                   |   | 11.4 | % |   | $ | 144,788 |   |   |   | 11.0 | % |
| Real      estate – construction                                |   |                    | 234,392   |   |                   |   | 18.1 |   |   |   | 260,524 |   |   |   | 19.9 |   |
| Real      estate mortgage – residential                        |   |                    | 453,230   |   |                   |   | 35.0 |   |   |   | 444,487 |   |   |   | 33.9 |   |
| Real      estate mortgage - farmland and other commercialenterprises |   |                    | 394,815   |   |                   |   | 30.5 |   |   |   | 390,424 |   |   |   | 29.7 |   |
| Installment                                                          |   |                    | 38,935    |   |                   |   | 3.0 |   |   |   | 45,135 |   |   |   | 3.4 |   |
| Lease      financing                                                 |   |                    | 25,638    |   |                   |   | 2.0 |   |   |   | 27,222 |   |   |   | 2.1 |   |
| Total                                                           |   | $                       | 1,294,394 |   |                   |   | 100.0 | % |   | $ | 1,312,580 |   |   |   | 100.0 | % |

| (In      thousands)                                       |   | September      30, 2009 |   |   | December      31,2008 |   |   | Change |   |   | %      |   |
|-----------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   |                         |   |   |                  |   |   |   |   |   |   |   |
| Nonaccrual                                                |   | $                            | 34,686 |   |                  | $      | 21,545 |   |   | $      | 13,141 |   |   |   | 61.0 | % |
| Restructured                                              |   |                         | 6,374  |   |                  |   |   |   |   |   | 6,374  |   |   |   |   |   |
| Past      due 90 days or more and still accruing interest |   |                         | 3,426  |   |                  |   | 3,913  |   |   |   | (487   | )      |   |   | (12.4 | )   |
| Total      nonperforming loans                            |   | $                            | 44,486 |   |                  | $      | 25,458 |   |   | $      | 19,028 |   |   |   | 74.7 | % |

----

|                          |   | End      of Period     |      |   | Average               |   |
|-------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|
| (In      thousands)           |   | September      30,2009 |      |   | December      31,2008 |   |   | Difference |   |   | (Nine      Months)September      30,2009 |   |   | (Twelve      Months)December      31,2008 |   |   | Difference |   |
| Noninterest      Bearing      |   |                   |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commonwealth      of Kentucky |   | $                      | 60,486    |   |                  | $      | 65,639 |   |   | $ | (5,153 | ) |   | $ | 34,939 |   |   | $ | 37,025 |   |   | $ | (2,086 | ) |
| Other                         |   |                   | 189,138   |   |                  |   | 175,879 |   |   |   | 13,259 |   |   |   | 186,988 |   |   |   | 177,347 |   |   |   | 9,641 |   |
| Total                         |   | $                      | 249,624   |   |                  | $      | 241,518 |   |   | $ |  8,106 |   |   | $ | 221,927 |   |   | $ | 214,372 |   |   | $ | 7,555 |   |
|                          |   |                   |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing         |   |                   |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                        |   | $                      | 231,778   |   |                  | $      | 246,553 |   |   | $ | (14,775 | ) |   | $ | 248,719 |   |   | $ | 256,129 |   |   | $ | (7,410 | ) |
| Savings                       |   |                   | 248,324   |   |                  |   | 255,550 |   |   |   | (7,226 | ) |   |   | 255,954 |   |   |   | 261,692 |   |   |   | (5,738 | ) |
| Time                          |   |                   | 935,681   |   |                  |   | 850,494 |   |   |   | 85,187 |   |   |   | 895,477 |   |   |   | 793,561 |   |   |   | 101,916 |   |
| Total                         |   | $                      | 1,415,783 |   |                  | $      | 1,352,597 |   |   | $ | 63,186 |   |   | $ | 1,400,150 |   |   | $ | 1,311,382 |   |   | $ | 88,768 |   |
|                          |   |                   |      |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Deposits           |   | $                      | 1,665,407 |   |                  | $      | 1,594,115 |   |   | $ | 71,292 |   |   | $ | 1,622,077 |   |   | $ | 1,525,754 |   |   | $ | 96,323 |   |

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|                   |   | Farmers      Capital Bank Corporation |   |   | Regulatory      Minimum |   |
|------------------------|--------|---------------------------------------|--------|--------|-------------------------|--------|
|                   |   |                                  |   |   |                    |   |
| Tier      1 risk based |   |                                  | 13.49  | %      |                    |   | 4.00 | % |
| Total      risk based  |   |                                  | 14.75  | %      |                    |   | 8.00 | % |
| Leverage               |   |                                  | 8.27   | %      |                    |   | 4.00 | % |

1

|                                          |   | Tier      1 Leverage Capital Ratio |   |   | Total      Risk-Based Capital Ratio |   |
|-----------------------------------------------|--------|------------------------------------|--------|--------|-------------------------------------|--------|
|                                          |   |                               |   |   |                                |   |
| Farmers      Bank & Capital Trust Co.     |   |                               | 5.96   | %      |                                |   | 11.95 | % |
| United      Bank & Trust Company          |   |                               | 6.16   | %      |                                |   | 11.24 | % |
| The      Lawrenceburg Bank and Trust Company  |   |                               | 5.36   | %      |                                |   | 11.18 | % |
| First      Citizens Bank                      |   |                               | 8.42   | %      |                                |   | 13.22 | % |
| Citizens      Bank of Northern Kentucky, Inc. |   |                               | 7.25   | %      |                                |   | 11.34 | % |

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| 2 | The      Leverage Ratio is computed by dividing a bank’s Total Capital, as defined      by regulation, by its total averageassets. |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Risk-Based Ratio is computed by dividing a bank’s Total Capital, as      defined by regulation, by a risk-weighted sum of the bank's assets, with      the risk weighting determined by general standards established by      regulation.  The safest assets (e.g., government      obligations) are assigned a weighting of 0% with riskier assets receiving      higher ratings (e.g., ordinary      commercial loans are assigned a weighting of  100%). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3.  Quantitative and Qualitative DisclosuresAbout Market Risk

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Item 4.  Controls andProcedures

Item 1.  Legal Proceedings

Item 2.  Unregistered Sales of EquitySecurities and Use of Proceeds

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Item 6.  Exhibits

| 3.1    | 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, the Quarterly Report on Form 10-Q for the quarterly period      ended March 31, 2003, and Current Report on Form 8-K dated January 13,      2009). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                      |
| 3.2**  | Amended and Restated Bylaws of Farmers Capital      Bank Corporation                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                      |
| 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).                          |

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 stock of 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                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

SIGNATURES

| Date:  |        Nov-6-09 |   |  /s/ G. Anthony      Busseni                 |
|--------|----------------------|--------|---------------------------------------------------|
|   |                 |   | G.      Anthony Busseni,                          |
|   |                 |   | President      and CEO                            |
|   |                 |   | (Principal      Executive Officer)                |
|   |                 |   |                                              |
| Date:  |        11-6-09  |   |  /s/ Doug      Carpenter                     |
|   |                 |   | C.      Douglas Carpenter,                        |
|   |                 |   | Senior      Vice President, Secretary, and CFO    |
|   |                 |   | (Principal      Financial and Accounting Officer) |

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