UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                                       or

            [ ] Transition Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

                         For the transition period from
                          ____________ to ____________

                         Commission File Number 0-14412

                        Farmers Capital Bank Corporation

                        --------------------------------
             (Exact name of registrant as specified in its charter)

          Kentucky                                   61-1017851
-------------------------------             ----------------------------
(State or other jurisdiction of        (I.R.S. Employer Identification Number)
 incorporation or organization)

P.O. Box 309, 202 West Main Street
Frankfort, Kentucky                                           40602
----------------------------------------            -----------------------
(Address of principal executive offices)                    (Zip Code)

       Registrant's telephone number, including area code: (502) 227-1600

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [X]       No [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                    Common stock, par value $0.125 per share
                  7,294,513 shares outstanding at July 31, 2000

<PAGE>
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

Part I - Financial Information                                               Page No.
------------------------------                                               --------
<S>                                                                             <C>
  Item 1 - Financial Statements

    Unaudited Consolidated Balance Sheets -
        June 30, 2000 and December 31, 1999                                     3

    Unaudited Consolidated Statements of Income -
        For the Three Months and Six Months Ended
        June 30, 2000 and June 30, 1999                                         4

    Unaudited Consolidated Statements of Comprehensive Income -
        For the Three Months and Six Months Ended
        June 30, 2000 and June 30, 1999                                         5

    Unaudited Consolidated Statements of Cash Flows -
        For the Six Months Ended
        June 30, 2000 and June 30, 1999                                         6

    Unaudited Consolidated Statements of Changes in Shareholders' Equity -
        For the Six Months Ended
        June 30, 2000 and June 30, 1999                                         7

    Notes to Consolidated Financial Statements                                  8

  Item 2 - Management's Discussion and Analysis of Financial

        Condition and Results of Operations                                     9

  Item 3 - Quantitative and Qualitative Disclosures About Market Risk          13

Part II - Other Information

  Item 1 - Legal Proceedings                                                   13

  Item 4 - Submission of Matters to a Vote of Security Holders                 14

  Item 6 - Exhibits and Reports on Form 8-K                                    15
</TABLE>

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

UNAUDITED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
                                                        June 30,    December 31,
(In thousands, except share data)                         2000          1999
--------------------------------------------------------------------------------
ASSETS Cash and cash equivalents:

    Cash and due from banks                             $69,562        $82,862
    Interest bearing deposits in other banks              1,060         11,594
    Federal funds sold and securities purchased
         under agreements to resell                      46,788         40,904
--------------------------------------------------------------------------------
         Total cash and cash equivalents                117,410        135,360
--------------------------------------------------------------------------------
Investment securities:
    Available for sale                                  149,837        167,944
    Held to maturity                                     56,526         61,896
--------------------------------------------------------------------------------
         Total investment securities                    206,363        229,840
--------------------------------------------------------------------------------
Loans, net of unearned income                           671,339        643,190
Allowance for loan losses                              (10,088)         (9,659)
--------------------------------------------------------------------------------
         Loans, net                                     661,251        633,531
--------------------------------------------------------------------------------
Premises and equipment, net                              24,541         24,409
Other assets                                             17,984         16,647
--------------------------------------------------------------------------------
         Total assets                                $1,027,549     $1,039,787
--------------------------------------------------------------------------------
LIABILITIES
Deposits:

    Noninterest bearing                                $160,847       $176,315
    Interest bearing                                    677,861        685,905
--------------------------------------------------------------------------------
         Total deposits                                 838,708        862,220
--------------------------------------------------------------------------------
Securities sold under agreements to repurchase           49,532         41,200
Other borrowed funds                                      6,955          4,439
Dividends payable                                         2,125          2,162
Other liabilities                                         6,839          4,660
--------------------------------------------------------------------------------
         Total liabilities                              904,159        914,681
--------------------------------------------------------------------------------
Commitments and contingencies

SHAREHOLDERS' EQUITY
Common stock, par value $0.125 per share
    9,608,000 shares authorized; 7,299,113 and 7,437,792
    shares issued and outstanding at June 30, 2000 and
    December 31, 1999, respectively                         912            930
Capital surplus                                          12,158         11,686
Retained earnings                                       112,659        114,431
Accumulated other comprehensive loss                     (2,339)        (1,941)
--------------------------------------------------------------------------------
         Total shareholders' equity                     123,390        125,106
--------------------------------------------------------------------------------
         Total liabilities and shareholders'equity   $1,027,549     $1,039,787
--------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------------------------------
(In thousands, except per share data)
                                                   Three Months Ended        Six Months Ended
                                                         June 30,                June 30,
                                                   2000         1999         2000        1999
----------------------------------------------------------------------------------------------
<S>                                             <C>          <C>          <C>          <C>
INTEREST INCOME
Interest and fees on loans                      $14,968      $13,473      $29,382      $26,650
Interest on investment securities:
    Taxable                                       2,127        2,318        4,381        4,655
    Nontaxable                                      870        1,016        1,761        1,919
Interest on deposits in other banks                  11            9           35           37
Interest on federal funds sold and
    securities purchased under
    agreements to resell                            491          274          848          861
-----------------------------------------------------------------------------------------------
       Total interest income                     18,467       17,090       36,407       34,122
-----------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits                              7,104        6,253       13,617       12,587
Interest on other borrowed funds                    685          452        1,253          960
-----------------------------------------------------------------------------------------------
       Total interest expense                     7,789        6,705       14,870       13,547
-----------------------------------------------------------------------------------------------
    Net interest income                          10,678       10,385       21,537       20,575
-----------------------------------------------------------------------------------------------
Provision for loan losses                         1,167          441        1,427          635
-----------------------------------------------------------------------------------------------
    Net interest income after
       provision for loan losses                  9,511        9,944       20,110       19,940
-----------------------------------------------------------------------------------------------
NONINTEREST INCOME
Service charges and fees on deposits              1,279        1,329        2,568        2,550
Other service charges, commissions, and fees      1,057          977        2,007        1,966
Data processing income                              361          391          676          714
Trust income                                        457          326          819          646
Investment securities gains                                       46                        49
Gain (loss) on sale of loans                         11          (44)          15          (49)
Other                                               103          132          247          231
-----------------------------------------------------------------------------------------------
       Total noninterest income                   3,268        3,157        6,332        6,107
-----------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits                    4,742        4,487        9,506        8,918
Occupancy expenses, net                             549          552        1,109        1,111
Equipment expenses                                  677          723        1,352        1,459
Data processing expense                              66          131          152          249
Bank franchise tax                                  289          274          574          526
Other                                             2,184        2,096        4,096        4,069
-----------------------------------------------------------------------------------------------
       Total noninterest expense                  8,507        8,263       16,789       16,332
-----------------------------------------------------------------------------------------------
       Income before income taxes                 4,272        4,838        9,653        9,715
-----------------------------------------------------------------------------------------------
Income tax expense                                1,320        1,170        2,703        2,544
-----------------------------------------------------------------------------------------------
Net income                                       $2,952       $3,668       $6,950       $7,171
-----------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE
    Basic and diluted                              $.40         $.49         $.94         $.96
-----------------------------------------------------------------------------------------------
WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                                         7,346        7,488        7,384        7,501
    Diluted                                       7,348        7,488        7,386        7,501
-----------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statement
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------------------
                                                Three Months Ended         Six Months Ended
                                                      June 30,                 June 30,
(In Thousands)                                  2000          1999         2000        1999
--------------------------------------------------------------------------------------------
<S>                                           <C>           <C>          <C>         <C>
NET INCOME                                    $2,952        $3,668       $6,950      $7,171
Other comprehensive income (loss):
    Unrealized  holding gain (loss) on
    available for sale securities arising
    during the period, net of tax of $38,
    $732, $205, and $895, respectively            74        (1,421)        (398)     (1,737)
Reclassification adjustment for prior
    period unrealized gain recognized
    during current period, net of tax
    of $0, $9, $0, and $37, respectively.                      (18)                     (71)
--------------------------------------------------------------------------------------------
Other comprehensive income (loss)                 74        (1,439)        (398)     (1,808)
--------------------------------------------------------------------------------------------
Comprehensive income                          $3,026        $2,229       $6,552      $5,363
--------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------
Six months ended June 30, (In thousands)                       2000        1999
--------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                               $6,950      $7,171
    Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization                          1,294       1,451
       Net amortization of investment security
          premiums and discounts:
             Available for sale                                (229)        (97)
             Held to maturity                                    (8)         17
       Provision for loan losses                              1,427         635
       Noncash compensation expense                             486         518
       Mortgage loans originated for sale                    (3,432)     (7,776)
       Proceeds from sale of mortgage loans                   3,170      10,257
       Deferred income tax expense                               37          60
       Loss (gain) on sale of mortgage loans                    (15)         49
       Gain on sale of available for sale
          investment securities                                             (49)
       Gain on sale of fixed assets                              (5)         (7)
       Decrease in accrued interest receivable                  117         569
       Increase in other assets                              (1,110)        (40)
       Increase (decrease) in accrued interest payable          188        (151)
       Increase in other liabilities                          1,566       1,447
--------------------------------------------------------------------------------
    Net cash provided by operating activities                10,436      14,054
--------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from maturities and calls of
          investment securities:
             Available for sale                              50,990      91,777
             Held to maturity                                 5,377       4,134
    Proceeds  from  sale of  available for
          sale  investment  securities                                   13,397
    Purchase of investment securities:
          Available for sale                                (33,257)    (98,036)
          Held to maturity
    Loans originated for investment, net of
          principal collected                               (28,870)    (15,370)
    Purchases of premises and equipment                      (1,175)     (1,523)
    Proceeds from sale of equipment                               3         214
--------------------------------------------------------------------------------
Net cash used in investing activities                        (6,932)     (5,407)
--------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Net decrease in deposits                                (23,512)    (21,119)
    Dividends paid                                           (4,312)     (4,216)
    Purchase of common stock                                 (4,636)     (1,721)
    Stock options exercised                                     158          30
    Net increase in other borrowed funds                     10,848      34,416
--------------------------------------------------------------------------------
    Net cash (used in) provided by financing activities     (21,454)      7,390
--------------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents        (17,950)     16,037
--------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year              135,360      91,834
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period                 $117,410    $107,871
--------------------------------------------------------------------------------
Supplemental disclosures Cash paid during the period for:

    Interest                                                $14,682     $13,698
    Income taxes                                              2,600       2,575
Cash dividend declared and unpaid                             2,125       2,096
-------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Accumulated             Total
(In thousands, except per share data)           Common Stock        Capital     Retained     Other Comprehensive     Shareholders'
Six months ended June 30, 2000 and 1999      Shares      Amount     Surplus     Earnings        (Loss) Income           Equity
------------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>          <C>      <C>         <C>              <C>                   <C>
Balance at December 31, 1999                 7,438        $930     $11,686     $114,431         $(1,941)              $125,106
------------------------------------------------------------------------------------------------------------------------------------
Net Income                                                                      6,950                                    6,950
Other comprehensive loss                                                                           (398)                  (398)
Cash dividends declared, $.58 per share                                        (4,275)                                  (4,275)
Purchase of common stock                      (145)        (19)       (171)    (4,447)                                  (4,637)
Stock options exercised, including
    related tax benefits                         6           1         157                                                 158
Effect of noncash compensation
    attributed to stock option grants                                  486                                                 486
------------------------------------------------------------------------------------------------------------------------------------
Balance at June 30, 2000                     7,299        $912     $12,158     $112,659         $(2,339)              $123,390
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 1998                 7,520        $940     $10,520     $112,010            $369               $123,839
------------------------------------------------------------------------------------------------------------------------------------
Net Income                                                                      7,171                                    7,171
Other comprehensive loss                                                                         (1,808)                (1,808)
Cash dividends declared, $.56 per share                                        (4,199)                                  (4,199)
Purchase of common stock                       (48)         (6)        (57)    (1,658)                                  (1,721)
Stock options exercised, including
    related tax benefits                         1                      30                                                  30
Effect of noncash compensation
    attributed to stock options grant                                  518                                                 518
------------------------------------------------------------------------------------------------------------------------------------
Balance at June 30, 1999                     7,473        $934     $11,011     $113,324         $(1,439)              $123,830
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of Presentation

The consolidated  financial  statements  include the accounts of Farmers Capital
Bank Corporation (the "Company"),  a bank holding company, and its subsidiaries,
including its principal  subsidiary,  Farmers Bank & Capital Trust Company.  All
significant  intercompany  transactions  and accounts  have been  eliminated  in
consolidation.

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent assets and liabilities as of the date of the financial statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Estimates  used in the  preparation  of the  financial  statements  are based on
various factors  including the current interest rate environment and the general
strength of the local economy.  Changes in the overall interest rate environment
can significantly  affect the Company's net interest income and the value of its
recorded  assets  and  liabilities.  Actual  results  could  differ  from  those
estimates used in the preparation of the financial statements.

The  financial  information  presented as of any date other than December 31 has
been  prepared  from the books  and  records  without  audit.  The  accompanying
consolidated  financial  statements  have been prepared in  accordance  with the
instructions  to Form 10-Q and Rule 10-01 of  Regulation  S-X and do not include
all  of the  information  and  the  footnotes  required  by  generally  accepted
accounting principles for complete statements. In the opinion of management, all
adjustments,  consisting of normal recurring  adjustments,  necessary for a fair
presentation of such financial  statements,  have been included.  The results of
operations for the interim periods are not necessarily indicative of the results
to be expected for the full year.

For further  information,  refer to the  consolidated  financial  statements and
footnotes  thereto  included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999.

2.   Reclassifications

Certain   reclassifications   have  been  made  to  the  consolidated  financial
statements of prior periods to conform to the current period presentation.

3.   Pending Legal Actions

On April 7, 2000, the Company was assessed  $99,875 in compensatory  damages and
$600,000 in punitive damages as a result of the jury's verdict in the Schilling,
et al. v. Farmers Bank & Capital  Trust  Company  case.  The Company has filed a
motion for a judgment  notwithstanding  the verdict or in the  alternative for a
new trial and is awaiting the judge's final ruling. Management, after discussion
with legal  counsel,  believes  it is more than remote but less than likely they
will receive an  unfavorable  ruling.  Accordingly,  no expense has been accrued
related  to the  jury's  verdict.  The  loss,  if any,  from  this  case will be
recognized  on the date of the judge's final ruling.  See Legal  Proceedings  in
Part II of this Form 10-Q.

As of June 30, 2000 there were various  pending  legal  actions and  proceedings
against  the Company  arising  from the normal  course of business  and in which
claims  for  damages  are  asserted.  Management,  after  discussion  with legal
counsel,  believes  these actions are without  merit and the ultimate  liability
resulting  from these legal  actions and  proceedings,  if any,  will not have a
material  adverse  effect  upon the  consolidated  financial  statements  of the
Company.

<PAGE>

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

FORWARD-LOOKING STATEMENTS

This report contains  forward-looking  statements  under the Private  Securities
Litigation Reform Act of 1995 that involve risks and uncertainties. Although the
Company believes that the assumptions underlying the forward-looking  statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore,  there  can  be no  assurance  that  the  forward-looking  statements
included  herein will prove to be  accurate.  Factors  that could  cause  actual
results to differ from the results discussed in the  forward-looking  statements
include,  but are not limited to: economic  conditions  (both generally and more
specifically in the markets in which the Company and its subsidiaries  operate);
competition  for the  Company's  customers  from other  providers  of  financial
services; government legislation and regulation (which changes from time to time
and over which the Company has no control);  changes in interest rates; material
unforeseen  changes  in the  liquidity,  results  of  operations,  or  financial
condition of the Company's customers;  and other risks detailed in the Company's
filings with the Securities and Exchange Commission,  all of which are difficult
to predict and many of which are beyond the control of the Company.

RESULTS OF OPERATIONS

                   Second Quarter 2000 vs. Second Quarter 1999
                   -------------------------------------------
The Company  reported net income of $3.0  million or $.40 per diluted  share for
the second  quarter of 2000  compared to net income of $3.7  million or $.49 per
diluted share for the second quarter of 1999. Net interest  income for the three
months  increased  $293  thousand or 2.8%,  but was more than offset by the $726
thousand  increase  in the  provision  for  loan  losses  inherent  in the  loan
portfolio. Non-interest expense increased $244 thousand, or 3.0%.

Return on average  assets was 1.17% for the second  quarter of 2000  compared to
1.49%  reported for the same period of 1999.  Return on average equity was 9.51%
for the second quarter of 2000, compared to 11.79% in the same period of 1999.

Net Interest Income
-------------------
Net interest  income  totaled $10.7  million for the second  quarter of 2000, an
increase  of $293  thousand  or 2.8%  over the  second  quarter  of 1999.  Total
interest income was $18.5 million for the second quarter of 2000, an increase of
$1.4 million or 8.1%.  Total  interest  expense was $7.8 million for the current
quarter,  an  increase of $1.1  million or 16.2%  compared to the same period in
1999.  Average  interest bearing  liabilities  increased $14.4 million while the
rate paid increased 52 basis points to 4.29%.

Interest and fees on loans  increased  $1.5 million mainly due to an increase in
volume. Average loans increased $58.5 million, or 9.6% while the yield increased
10 basis points to 9.08%. Interest on taxable securities decreased $191 thousand
or 8.2%  mainly due to a $37.3  million  decrease in the  average  balance.  The
decrease  in the  average  balance  was  partially  offset  by a 92 basis  point
increase in the average rate earned on these securities.  Interest on nontaxable
securities  decreased  $146  thousand  or 14.4% due to a decrease in the average
balance.  Interest on  short-term  investments  increased  $217  thousand due to
increases in both the average balance and rates earned.

The net interest margin on a tax equivalent  basis decreased to 4.90% during the
second  quarter of 2000  compared  to 4.92% in the second  quarter of 1999.  The
spread between rates earned and paid was 4.08% for the current quarter  compared
to 4.21% in the same  period  last year.  The  decrease  is the result of the 52
basis point  increase in the average rate paid on interest  bearing  liabilities
while the yield  earned on  interest  earning  assets  only  increased  39 basis
points.

Noninterest Income
------------------
Noninterest income was $3.3 million for the current quarter, up $111 thousand or
3.5%  compared to the prior year.  Service  charges  and fees on  deposits,  the
largest component of noninterest income,  remained relatively  unchanged at $1.3
million. Other service charges,  commissions,  and fees were up $80 thousand and
totaled $1.1  million.  Data  processing  income  decreased $30 thousand for the
second  quarter of 2000.  Trust fees  increased  $131 thousand to $457 thousand.
Gains on the sale of available for sale investment  securities,  which were zero
in the second  quarter of 2000,  totaled $46 thousand in the previous  year. The
gain on sale of loans increased $55 thousand. Other noninterest income decreased
$29 thousand.

Noninterest Expense
-------------------
Total  noninterest  expenses  increased  $244  thousand  or 3.0% from the second
quarter of 1999 to $8.5  million.  Salaries and employee  benefits,  the largest
component of noninterest  expense,  increased  $255 thousand or 5.7%.  Occupancy
expense,  net of rental  income,  was  relatively  unchanged  at $549  thousand.
Equipment  expense  decreased  $46  thousand or 6.4%.  Data  processing  expense
decreased  $65  thousand  for the second  quarter of 2000.  The decrease in data
processing  expense is due  primarily  to a decrease in credit card  interchange
expenses,  which is the result of a lower  volume of credit  card  transactions.
Bank franchise tax was relatively unchanged at $289 thousand.  Other noninterest
expense increased $88 thousand or 4.2% to $2.2 million.

Income Taxes
------------
Income tax expense for the second quarter of 2000 was $1.3 million,  an increase
of $150  thousand or 12.8% from the second  quarter of 1999.  The  effective tax
rate was 30.9% for the current  quarter,  an increase from 24.2% from the second
quarter of 1999.  The increase in the effective tax rate is due to a decrease in
tax-exempt income from both municipal loans and municipal securities.

                            First six months of 2000
                           -------------------------
Net income for the six months ended June 30, 2000 was $6.95 million  compared to
$7.2 million for the same period in 1999,  a decrease of $221  thousand or 3.1%.
Diluted  net income per share was $.94  compared  to $.96 for the same period in
1999, a decrease of $.02 or 2.1%. Fueled by loan growth, net interest income for
the six months increased $962,000,  or 4.7%, but was nearly offset by a $792,000
increase in the provision for loan losses  inherent in the loan  portfolio.  Net
loan charge-offs increased $571,000. Non-interest expense increased $457,000, or
2.8%.

Return on average  assets was 1.39% for the six months  ended June 30,  2000,  a
decrease of 7 basis point from the same period in 1999. Return on average equity
was 11.24%, a decrease from 11.65% for the first six months of 1999.

Net Interest Income
-------------------
Net  interest  income  totaled  $21.5  million for the six months ended June 30,
2000,  an increase of $962 thousand or 4.7% compared to the same period in 1999.
Total  interest  income was $36.4 million  compared to $34.1 million a year ago.
Total interest expense increased $1.3 million to a total of $14.9 million.

Interest  and fees on loans  increased  $2.7  million or 10.3%.  The increase is
attributed to the increase in average loans of $53.2  million,  or 8.8%, and the
increase  in the  yield  of 10  basis  points  to  9.08%.  Interest  on  taxable
securities  decreased $274 thousand as volume declined,  but the yield increased
78 basis  points to 6.37%.  Interest on  nontaxable  securities  decreased  $158
thousand or 8.2% almost entirely on volume.  Interest on short-term  investments
was relatively unchanged at $848 thousand.

Interest expense on deposits increased $1.0 million or 8.2%. Interest expense on
other borrowed funds  increased $293 thousand.  The increase for both categories
was mainly the result of an increase in the average rate paid.

Net  interest  margin on a tax  equivalent  basis  increased to 4.98% during the
first six  months of 2000  compared  to 4.83% for the same  period of 1999.  The
spread  between  rates  earned  and paid was up 9 basis  points  to 4.22% in the
six-month comparison.

Noninterest Income
------------------
Noninterest  income  was $6.3  million  for the  first six  months  of 2000,  an
increase of $225 thousand or 3.7%  compared to the same period in 1999.  Service
charges and fees on deposits  remained  relatively  unchanged  at $2.6  million.
Other service charges,  commissions,  and fees were also relatively unchanged at
$2.0 million.  Trust fees  increased  $173 thousand to a total of $819 thousand.
Gains on the sale of available for sale investment  securities were $49 thousand
in the  prior  year  with none in the  current  year.  The gain on sale of loans
increased $64 thousand.

Noninterest Expense
-------------------
Noninterest  expense  was $16.8  million  for the first six  months of 2000,  an
increase of $457 thousand or 2.8% compared to the same period in 1999.  Salaries
and employee benefits,  the largest component of noninterest expense,  increased
$588 thousand or 6.6%. Occupancy expense, net of rental income, was unchanged at
$1.1 million. Equipment expense decreased $107 thousand or 7.3%. Data processing
expense  was $152  thousand,  a decrease of $97  thousand.  Bank  franchise  tax
expense increased $48 thousand or 9.1%.

Income Taxes
------------
Income  tax  expense  for the first  six  months  of 2000 was $2.7  million,  an
increase of $159 thousand compared to the same period in 1999. The effective tax
rate was  28.0% for the first  six  months of 2000,  up from  26.2% in the prior
year.  The increase in the effective tax rate is due to a decrease in tax-exempt
income from both municipal loans and municipal securities.

FINANCIAL CONDITION

Total  assets were $1.0  billion on June 30,  2000, a decrease of $12 million or
1.2% from December 31, 1999. Fluctuations in assets and deposits are typical due
to the relationship between the Company's principal  subsidiary,  Farmers Bank &
Capital  Trust Co. and the  Commonwealth  of  Kentucky.  Farmers  Bank  provides
various  services to state agencies of the  Commonwealth.  As the depository for
the Commonwealth,  these agencies issue checks drawn on Farmers Bank,  including
paychecks and state income tax refunds.  Farmers Bank also processes vouchers of
the WIC  (Women,  Infants  and  Children)  program  for the  Cabinet  for  Human
Resources.  The  Bank's  investment  department  provides  services  to both the
Kentucky Retirement and Teacher's  Retirement systems. As the depository for the
Commonwealth,  large  fluctuations  in  deposits  are likely to occur on a daily
basis.  On an average  basis,  total  assets were $1.0 billion for the first six
months of 2000, an increase of $14 million or 1.4% from year-end 1999.

Loans
-----
Loans,  net of  unearned  income,  totaled  $671  million at June 30,  2000,  an
increase  of $28.1  million  or 4.4%  from  year-end  1999.  On  average,  loans
represented 72.9% of earning assets compared to 69.1% for year-end 1999. As loan
demand  fluctuates,  the available funds are redirected between either temporary
investments or investment securities.

Allowance for Loan Losses
-------------------------
The allowance for loan losses was $10.1 million at June 30, 2000, an increase of
$429 thousand from the prior year end. The allowance for loan losses was 1.5% of
net loans at June 30, 2000.  In  management's  opinion,  the  allowance for loan
losses is adequate to cover losses inherent in the loan portfolio. The provision
for loan losses  increased $792 thousand in the current  period  compared to the
same period in 1999.  The Company had net  charge-offs  of $998  thousand in the
first six months of 2000  compared to net  charge-offs  of $427  thousand in the
same period of 1999.  Management  continues to emphasize  collection efforts and
evaluation of risks within the portfolio.

Nonperforming Assets
--------------------
Nonperforming  assets for the Company include  nonperforming  loans,  other real
estate owned,  and other  foreclosed  assets.  Nonperforming  loans  consists of
nonaccrual loans,  restructured loans, and loans past due ninety days or more on
which interest in still accruing.  Nonperforming  assets totaled $5.6 million at
June 30,  2000,  a decrease of $146  thousand  or 2.6% from the prior  year-end.
Nonperforming  assets to total equity  increased  from 4.1% at year-end  1999 to
4.5% at June 30,  2000.  Nonperforming  loans  totaled  $4.7 million at June 30,
2000,  a  decrease  of  $214  thousand  or  4.4%  compared  to  year-end   1999.
Nonperforming loans as a percentage of net loans decreased from .76% at year-end
to .69%.

Other real estate owned,  which had a balance of $735 thousand at year-end 1999,
increased to $801 thousand as of June 30, 2000.

Temporary Investments
---------------------
Time deposits  with banks,  federal funds sold and  securities  purchased  under
agreements to resell averaged $28.1 million,  a decrease of $2.8 million or 9.2%
from  year end  1999.  Temporary  investments  are  reallocated  as loan  demand
presents the opportunity.

Investment Securities
---------------------
Investment  securities  were $206  million on June 30, 2000, a decrease of $23.5
million or 10.2% from  year-end  1999.  Available  for sale and held to maturity
securities  were  $150  and $56  million,  respectively.  Investment  securities
averaged  $217  million  for the first six months of 2000,  a decrease  of $29.6
million or 12.0%  from year end 1999.  The  Company  had an  unrealized  loss on
available for sale  investment  securities of $2.3 million,  net of tax, at June
30, 2000 compared to $1.9 million at year end 1999.

Deposits
--------
Total  deposits  were $839 million at June 30, 2000, a decrease of $23.5 million
or 2.7% from year-end 1999. Noninterest bearing deposits decreased $15.5 million
in the comparison.  This decrease is primarily due to the  relationship  between
the Company's principal subsidiary and the Commonwealth of Kentucky as described
in preceding sections of this report. On average,  noninterest  bearing deposits
were $146.6  million during the current  period,  an increase of $5.9 million or
4.2%.  Interest  bearing  deposits  decreased $8.0 million during the six months
ended June 30, 2000  compared to year-end  1999.  On average,  interest  bearing
deposits were $681 million in the current period, an increase of $7.1 million or
1.1% from year end 1999.  Total deposits  averaged $828 million,  an increase of
$13.1 million or 1.6% from year-end 1999.

Borrowed Funds
--------------
Borrowed  funds  totaled  $56.5  million at June 30, 2000,  an increase of $10.8
million from year-end 1999.  Total  borrowed  funds  averaged  $44.0 million,  a
decrease of $1.4 million or 3.0%.

LIQUIDITY

The  liquidity  of the Parent  Company is  primarily  affected by the receipt of
dividends from its subsidiary banks and cash balances maintained. As of June 30,
2000 combined retained  earnings of the subsidiary banks were $59.4 million,  of
which $22.2  million was  available  for the payment of  dividends to the Parent
Company without  obtaining prior approval from bank  regulatory  agencies.  As a
practical matter, payment of future dividends is also subject to the maintenance
of other capital ratio  requirements.  Management expects that in the aggregate,
its  subsidiary  banks will  continue to have the  ability to dividend  adequate
funds to the Parent Company during the remainder of 2000. The Parent Company had
cash balances of $20.0 million at June 30, 2000.

The Company's  objective as it relates to liquidity is to insure that subsidiary
banks  have funds  available  to meet  deposit  withdrawals  and credit  demands
without unduly penalizing profitability.  In order to maintain a proper level of
liquidity,  the banks have several  sources of funds  available on a daily basis
which can be used for  liquidity  purposes.  These  sources  of funds  primarily
include the  subsidiary  banks' core  deposits,  consisting of both business and
nonbusiness  deposits;  cash flow  generated by repayment of loan  principal and
interest;  and federal funds purchased and securities  sold under  agreements to
repurchase.

For the longer term, the liquidity position is managed by balancing the maturity
structure of the balance sheet. This process allows for an orderly flow of funds
over an extended period of time.

Liquid assets consist of cash and due from banks,  short-term  investments,  and
securities  available  for sale.  At June 30,  2000,  such assets  totaled  $267
million,  a decrease of $36.1 million from year-end  1999.  Net cash provided by
operating  activities  decreased  $3.6  million in the six months ended June 30,
2000 compared to the same period last year. The decrease is primarily attributed
to the decrease in the proceeds from the sale of mortgage  loans.  Net cash used
in investing  activities was $6.9 million, an increase of $1.5 million. Net cash
used in  financing  activities  was $21.5  million for the period ended June 30,
2000 compared to net cash provided of $7.4 million in the prior year comparison.
The increase in net cash used in financing  activities  is due  primarily to the
decrease in utilizing other borrowed funds.

CAPITAL RESOURCES

Shareholders'  equity was $123 million on June 30, 20000, down $1.7 million from
year-end  1999.  The Company  purchased 145 thousand  shares of its  outstanding
common  stock  during  the  first six  months  of 2000 for a total  cost of $4.6
million.  The Company  issued  6,450 shares of common stock during the first six
months pursuant to its nonqualified stock option plan. Dividends of $4.3 million
or $.58 per share were declared during the first six months of 2000, an increase
of 3.6% per share compared to the prior year.  The Company's  available for sale
investment  securities  portfolio had net  unrealized  losses of $2.3 million at
June 30, 2000, up from a net unrealized loss of $1.9 million at year-end.

Consistent with the objective of operating a sound financial  organization,  the
Company's goal is to maintain  capital ratios well above the regulatory  minimum
requirements.  The Company's  capital ratios as of June 30, 2000, the regulatory
minimums and the regulatory standard for a "well capitalized" institution are as
follows:

                         Farmers Capital        Regulatory             Well
                        Bank Corporation         Minimum            Capitalized
--------------------------------------------------------------------------------
Tier 1 risk based           18.07%                4.00%                6.00%

Total risk based            19.32%                8.00%               10.00%

Leverage                    12.32%                4.00%                5.00%

The capital ratios of all the subsidiary  banks, on an individual basis, were in
excess of the applicable  minimum  regulatory capital ratio requirements at June
30, 2000.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------
There have been no material  changes in the Company's  market risk from December
31, 1999.  For  information  regarding the Company's  market risk,  refer to the
Company's Annual Report on Form 10-K for the year ended December 31, 1999.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
--------------------------
In  September  1992,  Farmers Bank (the "Bank") was named as a defendant in Case
No. 92CI05734 in Jefferson Circuit Court, Louisville, Kentucky, in a case styled
Schilling,  et al. v. Farmers Bank & Capital Trust Company. The named plaintiffs
purported to represent a class  consisting  of all present and former  owners of
the County of Jefferson,  Kentucky, Nursing Home Refunding Revenue Bonds (Filson
Care Home Project) Series 1986A and County of Jefferson,  Kentucky, Nursing Home
Improvement  Revenue Bonds (Filson Care Home Project) Series 1986B (collectively
"the Bonds").  The plaintiffs  alleged that the class had been damaged through a
reduction in the value of the Bonds and a loss of interest on the Bonds  because
of the  actions  of the  Bank  in its  capacity  as  indenture  trustee  for the
Bondholders. The plaintiffs demanded compensatory and punitive damages.

On July 6, 1993, the Court denied the plaintiffs'  motion to certify the case as
a class action.  Subsequently,  the plaintiffs  amended their  complaint to join
additional  Bondholders as plaintiffs.  The plaintiffs  claimed to hold Bonds in
the aggregate  principal  amount of $480,000.  Before trial, the Court dismissed
thirty-nine of the  plaintiffs  because they were unable or unwilling to present
testimony to support their claims.

The case was tried to a jury  beginning  on March 28, 2000 on the claims of four
plaintiffs holding Bonds in the aggregate principal amount of $80,000. The Court
granted a directed  verdict in favor of the Bank on the  plaintiffs'  claim that
the Bank had  engaged in  commercial  bribery  and that the legal fees that were
paid by the Bank should be disgorged  because of an alleged conflict of interest
of the Bank's  counsel.  The jury found for the plaintiffs on the claim that the
Bank had  breached  its  fiduciary  duty and awarded the  plaintiffs  $99,875 in
compensatory damages and $600,000 in punitive damages.

The Bank has filed a motion for judgment  notwithstanding the verdict or, in the
alternative,  for a new trial,  asserting  that the jury's verdict that the Bank
breached its fiduciary duty was not supported by sufficient  evidence,  that the
jury's award of damages was  speculative  and was not supported by the evidence,
and that the jury's award of punitive  damages was not  supported by  sufficient
evidence.  The Bank has also asserted  that a new trial is warranted  because of
the erroneous admission of evidence concerning legal fees paid by the Bank.

Plaintiffs filed appeals  contending that the denial of class  certification was
erroneous,  that the individual  plaintiffs  should not have been dismissed from
the  lawsuit,  that  certain  evidence was  erroneously  excluded,  and that the
directed  verdict  regarding the  disgorgement  of legal fees and the commercial
bribery  claims was  erroneous.  On August 1, 2000 the Kentucky Court of Appeals
dismissed the appeals as having been prematurely filed.

Farmers  Bank  intends to  vigorously  pursue its  pending  motion for  judgment
notwithstanding the verdict or, in the alternative,  for a new trial, or, in the
event the trial court denies the motion, to appeal the trial court's judgment to
the  Kentucky  Court  of  Appeals.  It is not  possible  at  this  stage  of the
proceedings to make any prediction as to the outcome.

As of June 30,  2000,  there  were  various  other  pending  legal  actions  and
proceedings  against the Company  arising from the normal course of business and
in which claims for damages are  asserted.  Management,  after  discussion  with
legal  counsel,  believes  that these  actions  are  without  merit and that the
ultimate liability  resulting from these legal actions and proceedings,  if any,
will  not  have a  material  adverse  effect  upon  the  consolidated  financial
statements of the Company.

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

The annual meeting of  shareholders  was held May 9, 2000. The matters that were
voted upon included:

a)       The election of four directors for  three-year  terms ending in 2003 or
         until their successors have been elected and qualified.

b)       The transaction of such other business as may properly come before the
         meeting.

The outcome of the voting was as follows:

Name                                   For      Against    Withheld    Abstained
Frank W. Sower, Jr.                 6,604,338      0         1,100         0
J. Barry Banker                     6,598,068      0         7,370         0
Charles S. Boyd                     6,598,218      0         7,220         0
Glen Birdwhistell                   6,590,202      0         15,236        0
The transaction of other business   6,378,909   159,334        0        67,195

Listed below is the name of each director whose term of office  continued  after
the meeting.

Stokes A. Baird IV                          Harold G. Mays
James H. Childers                           Robert Roach, Jr.
Michael M. Sullivan                         G. Anthony Busseni
Lloyd C. Hillard, Jr.                       Dr. John D. Sutterlin

In addition to the directors above, Dr. John P. Stewart, Chairman Emeritus,
E. Bruce Dungan, and Charles T. Mitchell serve as advisory directors for the
Company.

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------
a)       List of Exhibits
         ----------------
         11    Statement re computation of per share earnings

         27    Financial data schedule (for SEC use only)

b)       Reports on Form 8-K
         -------------------

On July 25, 2000,  the Company  filed a Form 8-K to announce  that it intends to
purchase  up to  500,000  shares of its  outstanding  common  stock.  This is in
addition to the stock  purchase  plan  announced on November 9, 1998 to purchase
400,000 shares. Under the previously announced plan, 283,955 have been purchased
as of July 25, 2000.  The purchase  will be dependent on market  conditions  and
there will be no  guarantee  as to the exact number of shares to be purchased by
the Company. Shares purchased would be used for general corporate purposes.

Consistent  with the  objective of  maximizing  shareholder  value,  the Company
considers the purchase of its  outstanding  shares in the current price range to
be a good investment of the Company's available funds.

Financial statements were not required with this Form 8-K.

<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

Date:    8/11/00                /s/ Charles Scott Boyd

      -------------             ------------------------------------------------
                                Charles Scott Boyd,
                                President and CEO (Principal Executive Officer)


Date:    8/11/00                /s/ Cecil Douglas Carpenter

      -------------             ------------------------------------------------
                                Cecil Douglas Carpenter,
                                Vice President and CFO (Principal Financial
                                and Accounting Officer)

<PAGE>
<TABLE>
<CAPTION>

                                   Exhibit 11
                 Statement re computation of per share earnings
----------------------------------------------------------------------------------------------------------
                                                        Three Months Ended             Six Months Ended
                                                              June 30,                      June 30,
(In thousands, except per share data)                    2000           1999            2000         1999
----------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>             <C>          <C>
Net income, basic and diluted                          $2,952         $3,668          $6,950       $7,171
----------------------------------------------------------------------------------------------------------
Average shares outstanding                              7,346          7,488           7,384        7,501
Effect of dilutive stock options
----------------------------------------------------------------------------------------------------------
Average diluted shares outstanding                      7,346          7,488           7,384        7,501
----------------------------------------------------------------------------------------------------------
Net income per share, basic                              $.40           $.49            $.94         $.96
Net income per share, diluted                            $.40           $.49            $.94         $.96
----------------------------------------------------------------------------------------------------------

</TABLE>
<PAGE>
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{"company-data": {"conformed-name": "FARMERS CAPITAL BANK CORP", "cik": "0000713095", "assigned-sic": "6021", "irs-number": "611017851", "state-of-incorporation": "KY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-14412", "film-number": "694126"}, "business-address": {"street1": "PO BOX 309", "street2": "202 W MAIN ST", "city": "FRANKFORT", "state": "KY", "zip": "40602", "phone": "5022271668"}, "mail-address": {"street1": "P O BOX 309", "street2": "202 WEST MAIN STREET", "city": "FRANKFORT", "state": "KY", "zip": "40602"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                                       or

            [ ] Transition Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

                         For the transition period from
                          ____________ to ____________

                         Commission File Number 0-14412

                        Farmers Capital Bank Corporation

                        --------------------------------
             (Exact name of registrant as specified in its charter)

          Kentucky                                   61-1017851
-------------------------------             ----------------------------
(State or other jurisdiction of        (I.R.S. Employer Identification Number)
 incorporation or organization)

P.O. Box 309, 202 West Main Street
Frankfort, Kentucky                                           40602
----------------------------------------            -----------------------
(Address of principal executive offices)                    (Zip Code)

       Registrant's telephone number, including area code: (502) 227-1600

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [X]       No [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                    Common stock, par value $0.125 per share
                  7,294,513 shares outstanding at July 31, 2000
TABLE OF CONTENTS

Part I - Financial Information                                               Page No.
------------------------------                                               --------
Item 1 - Financial Statements

    Unaudited Consolidated Balance Sheets -
        June 30, 2000 and December 31, 1999                                     3

    Unaudited Consolidated Statements of Income -
        For the Three Months and Six Months Ended
        June 30, 2000 and June 30, 1999                                         4

    Unaudited Consolidated Statements of Comprehensive Income -
        For the Three Months and Six Months Ended
        June 30, 2000 and June 30, 1999                                         5

    Unaudited Consolidated Statements of Cash Flows -
        For the Six Months Ended
        June 30, 2000 and June 30, 1999                                         6

    Unaudited Consolidated Statements of Changes in Shareholders' Equity -
        For the Six Months Ended
        June 30, 2000 and June 30, 1999                                         7

    Notes to Consolidated Financial Statements                                  8

  Item 2 - Management's Discussion and Analysis of Financial

        Condition and Results of Operations                                     9

  Item 3 - Quantitative and Qualitative Disclosures About Market Risk          13

Part II - Other Information

  Item 1 - Legal Proceedings                                                   13

  Item 4 - Submission of Matters to a Vote of Security Holders                 14

  Item 6 - Exhibits and Reports on Form 8-K                                    15
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

UNAUDITED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
                                                        June 30,    December 31,
(In thousands, except share data)                         2000          1999
--------------------------------------------------------------------------------
ASSETS Cash and cash equivalents:

    Cash and due from banks                             $69,562        $82,862
    Interest bearing deposits in other banks              1,060         11,594
    Federal funds sold and securities purchased
         under agreements to resell                      46,788         40,904
--------------------------------------------------------------------------------
         Total cash and cash equivalents                117,410        135,360
--------------------------------------------------------------------------------
Investment securities:
    Available for sale                                  149,837        167,944
    Held to maturity                                     56,526         61,896
--------------------------------------------------------------------------------
         Total investment securities                    206,363        229,840
--------------------------------------------------------------------------------
Loans, net of unearned income                           671,339        643,190
Allowance for loan losses                              (10,088)         (9,659)
--------------------------------------------------------------------------------
         Loans, net                                     661,251        633,531
--------------------------------------------------------------------------------
Premises and equipment, net                              24,541         24,409
Other assets                                             17,984         16,647
--------------------------------------------------------------------------------
         Total assets                                $1,027,549     $1,039,787
--------------------------------------------------------------------------------
LIABILITIES
Deposits:

    Noninterest bearing                                $160,847       $176,315
    Interest bearing                                    677,861        685,905
--------------------------------------------------------------------------------
         Total deposits                                 838,708        862,220
--------------------------------------------------------------------------------
Securities sold under agreements to repurchase           49,532         41,200
Other borrowed funds                                      6,955          4,439
Dividends payable                                         2,125          2,162
Other liabilities                                         6,839          4,660
--------------------------------------------------------------------------------
         Total liabilities                              904,159        914,681
--------------------------------------------------------------------------------
Commitments and contingencies

SHAREHOLDERS' EQUITY
Common stock, par value $0.125 per share
    9,608,000 shares authorized; 7,299,113 and 7,437,792
    shares issued and outstanding at June 30, 2000 and
    December 31, 1999, respectively                         912            930
Capital surplus                                          12,158         11,686
Retained earnings                                       112,659        114,431
Accumulated other comprehensive loss                     (2,339)        (1,941)
--------------------------------------------------------------------------------
         Total shareholders' equity                     123,390        125,106
--------------------------------------------------------------------------------
         Total liabilities and shareholders'equity   $1,027,549     $1,039,787
--------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------------------------------
(In thousands, except per share data)
                                                   Three Months Ended        Six Months Ended
                                                         June 30,                June 30,
                                                   2000         1999         2000        1999
----------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans                      $14,968      $13,473      $29,382      $26,650
Interest on investment securities:
    Taxable                                       2,127        2,318        4,381        4,655
    Nontaxable                                      870        1,016        1,761        1,919
Interest on deposits in other banks                  11            9           35           37
Interest on federal funds sold and
    securities purchased under
    agreements to resell                            491          274          848          861
-----------------------------------------------------------------------------------------------
       Total interest income                     18,467       17,090       36,407       34,122
-----------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits                              7,104        6,253       13,617       12,587
Interest on other borrowed funds                    685          452        1,253          960
-----------------------------------------------------------------------------------------------
       Total interest expense                     7,789        6,705       14,870       13,547
-----------------------------------------------------------------------------------------------
    Net interest income                          10,678       10,385       21,537       20,575
-----------------------------------------------------------------------------------------------
Provision for loan losses                         1,167          441        1,427          635
-----------------------------------------------------------------------------------------------
    Net interest income after
       provision for loan losses                  9,511        9,944       20,110       19,940
-----------------------------------------------------------------------------------------------
NONINTEREST INCOME
Service charges and fees on deposits              1,279        1,329        2,568        2,550
Other service charges, commissions, and fees      1,057          977        2,007        1,966
Data processing income                              361          391          676          714
Trust income                                        457          326          819          646
Investment securities gains                                       46                        49
Gain (loss) on sale of loans                         11          (44)          15          (49)
Other                                               103          132          247          231
-----------------------------------------------------------------------------------------------
       Total noninterest income                   3,268        3,157        6,332        6,107
-----------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits                    4,742        4,487        9,506        8,918
Occupancy expenses, net                             549          552        1,109        1,111
Equipment expenses                                  677          723        1,352        1,459
Data processing expense                              66          131          152          249
Bank franchise tax                                  289          274          574          526
Other                                             2,184        2,096        4,096        4,069
-----------------------------------------------------------------------------------------------
       Total noninterest expense                  8,507        8,263       16,789       16,332
-----------------------------------------------------------------------------------------------
       Income before income taxes                 4,272        4,838        9,653        9,715
-----------------------------------------------------------------------------------------------
Income tax expense                                1,320        1,170        2,703        2,544
-----------------------------------------------------------------------------------------------
Net income                                       $2,952       $3,668       $6,950       $7,171
-----------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE
    Basic and diluted                              $.40         $.49         $.94         $.96
-----------------------------------------------------------------------------------------------
WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                                         7,346        7,488        7,384        7,501
    Diluted                                       7,348        7,488        7,386        7,501
-----------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statement
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------------------
                                                Three Months Ended         Six Months Ended
                                                      June 30,                 June 30,
(In Thousands)                                  2000          1999         2000        1999
--------------------------------------------------------------------------------------------
NET INCOME                                    $2,952        $3,668       $6,950      $7,171
Other comprehensive income (loss):
    Unrealized  holding gain (loss) on
    available for sale securities arising
    during the period, net of tax of $38,
    $732, $205, and $895, respectively            74        (1,421)        (398)     (1,737)
Reclassification adjustment for prior
    period unrealized gain recognized
    during current period, net of tax
    of $0, $9, $0, and $37, respectively.                      (18)                     (71)
--------------------------------------------------------------------------------------------
Other comprehensive income (loss)                 74        (1,439)        (398)     (1,808)
--------------------------------------------------------------------------------------------
Comprehensive income                          $3,026        $2,229       $6,552      $5,363
--------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------
Six months ended June 30, (In thousands)                       2000        1999
--------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                               $6,950      $7,171
    Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization                          1,294       1,451
       Net amortization of investment security
          premiums and discounts:
             Available for sale                                (229)        (97)
             Held to maturity                                    (8)         17
       Provision for loan losses                              1,427         635
       Noncash compensation expense                             486         518
       Mortgage loans originated for sale                    (3,432)     (7,776)
       Proceeds from sale of mortgage loans                   3,170      10,257
       Deferred income tax expense                               37          60
       Loss (gain) on sale of mortgage loans                    (15)         49
       Gain on sale of available for sale
          investment securities                                             (49)
       Gain on sale of fixed assets                              (5)         (7)
       Decrease in accrued interest receivable                  117         569
       Increase in other assets                              (1,110)        (40)
       Increase (decrease) in accrued interest payable          188        (151)
       Increase in other liabilities                          1,566       1,447
--------------------------------------------------------------------------------
    Net cash provided by operating activities                10,436      14,054
--------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from maturities and calls of
          investment securities:
             Available for sale                              50,990      91,777
             Held to maturity                                 5,377       4,134
    Proceeds  from  sale of  available for
          sale  investment  securities                                   13,397
    Purchase of investment securities:
          Available for sale                                (33,257)    (98,036)
          Held to maturity
    Loans originated for investment, net of
          principal collected                               (28,870)    (15,370)
    Purchases of premises and equipment                      (1,175)     (1,523)
    Proceeds from sale of equipment                               3         214
--------------------------------------------------------------------------------
Net cash used in investing activities                        (6,932)     (5,407)
--------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Net decrease in deposits                                (23,512)    (21,119)
    Dividends paid                                           (4,312)     (4,216)
    Purchase of common stock                                 (4,636)     (1,721)
    Stock options exercised                                     158          30
    Net increase in other borrowed funds                     10,848      34,416
--------------------------------------------------------------------------------
    Net cash (used in) provided by financing activities     (21,454)      7,390
--------------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents        (17,950)     16,037
--------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year              135,360      91,834
--------------------------------------------------------------------------------
Cash and cash equivalents at end of period                 $117,410    $107,871
--------------------------------------------------------------------------------
Supplemental disclosures Cash paid during the period for:

    Interest                                                $14,682     $13,698
    Income taxes                                              2,600       2,575
Cash dividend declared and unpaid                             2,125       2,096
-------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Accumulated             Total
(In thousands, except per share data)           Common Stock        Capital     Retained     Other Comprehensive     Shareholders'
Six months ended June 30, 2000 and 1999      Shares      Amount     Surplus     Earnings        (Loss) Income           Equity
------------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 1999                 7,438        $930     $11,686     $114,431         $(1,941)              $125,106
------------------------------------------------------------------------------------------------------------------------------------
Net Income                                                                      6,950                                    6,950
Other comprehensive loss                                                                           (398)                  (398)
Cash dividends declared, $.58 per share                                        (4,275)                                  (4,275)
Purchase of common stock                      (145)        (19)       (171)    (4,447)                                  (4,637)
Stock options exercised, including
    related tax benefits                         6           1         157                                                 158
Effect of noncash compensation
    attributed to stock option grants                                  486                                                 486
------------------------------------------------------------------------------------------------------------------------------------
Balance at June 30, 2000                     7,299        $912     $12,158     $112,659         $(2,339)              $123,390
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 1998                 7,520        $940     $10,520     $112,010            $369               $123,839
------------------------------------------------------------------------------------------------------------------------------------
Net Income                                                                      7,171                                    7,171
Other comprehensive loss                                                                         (1,808)                (1,808)
Cash dividends declared, $.56 per share                                        (4,199)                                  (4,199)
Purchase of common stock                       (48)         (6)        (57)    (1,658)                                  (1,721)
Stock options exercised, including
    related tax benefits                         1                      30                                                  30
Effect of noncash compensation
    attributed to stock options grant                                  518                                                 518
------------------------------------------------------------------------------------------------------------------------------------
Balance at June 30, 1999                     7,473        $934     $11,011     $113,324         $(1,439)              $123,830
------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of Presentation

The consolidated  financial  statements  include the accounts of Farmers Capital
Bank Corporation (the "Company"),  a bank holding company, and its subsidiaries,
including its principal  subsidiary,  Farmers Bank & Capital Trust Company.  All
significant  intercompany  transactions  and accounts  have been  eliminated  in
consolidation.

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent assets and liabilities as of the date of the financial statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Estimates  used in the  preparation  of the  financial  statements  are based on
various factors  including the current interest rate environment and the general
strength of the local economy.  Changes in the overall interest rate environment
can significantly  affect the Company's net interest income and the value of its
recorded  assets  and  liabilities.  Actual  results  could  differ  from  those
estimates used in the preparation of the financial statements.

The  financial  information  presented as of any date other than December 31 has
been  prepared  from the books  and  records  without  audit.  The  accompanying
consolidated  financial  statements  have been prepared in  accordance  with the
instructions  to Form 10-Q and Rule 10-01 of  Regulation  S-X and do not include
all  of the  information  and  the  footnotes  required  by  generally  accepted
accounting principles for complete statements. In the opinion of management, all
adjustments,  consisting of normal recurring  adjustments,  necessary for a fair
presentation of such financial  statements,  have been included.  The results of
operations for the interim periods are not necessarily indicative of the results
to be expected for the full year.

For further  information,  refer to the  consolidated  financial  statements and
footnotes  thereto  included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999.

2.   Reclassifications

Certain   reclassifications   have  been  made  to  the  consolidated  financial
statements of prior periods to conform to the current period presentation.

3.   Pending Legal Actions

On April 7, 2000, the Company was assessed  $99,875 in compensatory  damages and
$600,000 in punitive damages as a result of the jury's verdict in the Schilling,
et al. v. Farmers Bank & Capital  Trust  Company  case.  The Company has filed a
motion for a judgment  notwithstanding  the verdict or in the  alternative for a
new trial and is awaiting the judge's final ruling. Management, after discussion
with legal  counsel,  believes  it is more than remote but less than likely they
will receive an  unfavorable  ruling.  Accordingly,  no expense has been accrued
related  to the  jury's  verdict.  The  loss,  if any,  from  this  case will be
recognized  on the date of the judge's final ruling.  See Legal  Proceedings  in
Part II of this Form 10-Q.

As of June 30, 2000 there were various  pending  legal  actions and  proceedings
against  the Company  arising  from the normal  course of business  and in which
claims  for  damages  are  asserted.  Management,  after  discussion  with legal
counsel,  believes  these actions are without  merit and the ultimate  liability
resulting  from these legal  actions and  proceedings,  if any,  will not have a
material  adverse  effect  upon the  consolidated  financial  statements  of the
Company.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
        of Operations
        -------------

FORWARD-LOOKING STATEMENTS

This report contains  forward-looking  statements  under the Private  Securities
Litigation Reform Act of 1995 that involve risks and uncertainties. Although the
Company believes that the assumptions underlying the forward-looking  statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore,  there  can  be no  assurance  that  the  forward-looking  statements
included  herein will prove to be  accurate.  Factors  that could  cause  actual
results to differ from the results discussed in the  forward-looking  statements
include,  but are not limited to: economic  conditions  (both generally and more
specifically in the markets in which the Company and its subsidiaries  operate);
competition  for the  Company's  customers  from other  providers  of  financial
services; government legislation and regulation (which changes from time to time
and over which the Company has no control);  changes in interest rates; material
unforeseen  changes  in the  liquidity,  results  of  operations,  or  financial
condition of the Company's customers;  and other risks detailed in the Company's
filings with the Securities and Exchange Commission,  all of which are difficult
to predict and many of which are beyond the control of the Company.

RESULTS OF OPERATIONS

                   Second Quarter 2000 vs. Second Quarter 1999
                   -------------------------------------------
The Company  reported net income of $3.0  million or $.40 per diluted  share for
the second  quarter of 2000  compared to net income of $3.7  million or $.49 per
diluted share for the second quarter of 1999. Net interest  income for the three
months  increased  $293  thousand or 2.8%,  but was more than offset by the $726
thousand  increase  in the  provision  for  loan  losses  inherent  in the  loan
portfolio. Non-interest expense increased $244 thousand, or 3.0%.

Return on average  assets was 1.17% for the second  quarter of 2000  compared to
1.49%  reported for the same period of 1999.  Return on average equity was 9.51%
for the second quarter of 2000, compared to 11.79% in the same period of 1999.

Net Interest Income
-------------------
Net interest  income  totaled $10.7  million for the second  quarter of 2000, an
increase  of $293  thousand  or 2.8%  over the  second  quarter  of 1999.  Total
interest income was $18.5 million for the second quarter of 2000, an increase of
$1.4 million or 8.1%.  Total  interest  expense was $7.8 million for the current
quarter,  an  increase of $1.1  million or 16.2%  compared to the same period in
1999.  Average  interest bearing  liabilities  increased $14.4 million while the
rate paid increased 52 basis points to 4.29%.

Interest and fees on loans  increased  $1.5 million mainly due to an increase in
volume. Average loans increased $58.5 million, or 9.6% while the yield increased
10 basis points to 9.08%. Interest on taxable securities decreased $191 thousand
or 8.2%  mainly due to a $37.3  million  decrease in the  average  balance.  The
decrease  in the  average  balance  was  partially  offset  by a 92 basis  point
increase in the average rate earned on these securities.  Interest on nontaxable
securities  decreased  $146  thousand  or 14.4% due to a decrease in the average
balance.  Interest on  short-term  investments  increased  $217  thousand due to
increases in both the average balance and rates earned.

The net interest margin on a tax equivalent  basis decreased to 4.90% during the
second  quarter of 2000  compared  to 4.92% in the second  quarter of 1999.  The
spread between rates earned and paid was 4.08% for the current quarter  compared
to 4.21% in the same  period  last year.  The  decrease  is the result of the 52
basis point  increase in the average rate paid on interest  bearing  liabilities
while the yield  earned on  interest  earning  assets  only  increased  39 basis
points.

Noninterest Income
------------------
Noninterest income was $3.3 million for the current quarter, up $111 thousand or
3.5%  compared to the prior year.  Service  charges  and fees on  deposits,  the
largest component of noninterest income,  remained relatively  unchanged at $1.3
million. Other service charges,  commissions,  and fees were up $80 thousand and
totaled $1.1  million.  Data  processing  income  decreased $30 thousand for the
second  quarter of 2000.  Trust fees  increased  $131 thousand to $457 thousand.
Gains on the sale of available for sale investment  securities,  which were zero
in the second  quarter of 2000,  totaled $46 thousand in the previous  year. The
gain on sale of loans increased $55 thousand. Other noninterest income decreased
$29 thousand.

Noninterest Expense
-------------------
Total  noninterest  expenses  increased  $244  thousand  or 3.0% from the second
quarter of 1999 to $8.5  million.  Salaries and employee  benefits,  the largest
component of noninterest  expense,  increased  $255 thousand or 5.7%.  Occupancy
expense,  net of rental  income,  was  relatively  unchanged  at $549  thousand.
Equipment  expense  decreased  $46  thousand or 6.4%.  Data  processing  expense
decreased  $65  thousand  for the second  quarter of 2000.  The decrease in data
processing  expense is due  primarily  to a decrease in credit card  interchange
expenses,  which is the result of a lower  volume of credit  card  transactions.
Bank franchise tax was relatively unchanged at $289 thousand.  Other noninterest
expense increased $88 thousand or 4.2% to $2.2 million.

Income Taxes
------------
Income tax expense for the second quarter of 2000 was $1.3 million,  an increase
of $150  thousand or 12.8% from the second  quarter of 1999.  The  effective tax
rate was 30.9% for the current  quarter,  an increase from 24.2% from the second
quarter of 1999.  The increase in the effective tax rate is due to a decrease in
tax-exempt income from both municipal loans and municipal securities.

                            First six months of 2000
                           -------------------------
Net income for the six months ended June 30, 2000 was $6.95 million  compared to
$7.2 million for the same period in 1999,  a decrease of $221  thousand or 3.1%.
Diluted  net income per share was $.94  compared  to $.96 for the same period in
1999, a decrease of $.02 or 2.1%. Fueled by loan growth, net interest income for
the six months increased $962,000,  or 4.7%, but was nearly offset by a $792,000
increase in the provision for loan losses  inherent in the loan  portfolio.  Net
loan charge-offs increased $571,000. Non-interest expense increased $457,000, or
2.8%.

Return on average  assets was 1.39% for the six months  ended June 30,  2000,  a
decrease of 7 basis point from the same period in 1999. Return on average equity
was 11.24%, a decrease from 11.65% for the first six months of 1999.

Net Interest Income
-------------------
Net  interest  income  totaled  $21.5  million for the six months ended June 30,
2000,  an increase of $962 thousand or 4.7% compared to the same period in 1999.
Total  interest  income was $36.4 million  compared to $34.1 million a year ago.
Total interest expense increased $1.3 million to a total of $14.9 million.

Interest  and fees on loans  increased  $2.7  million or 10.3%.  The increase is
attributed to the increase in average loans of $53.2  million,  or 8.8%, and the
increase  in the  yield  of 10  basis  points  to  9.08%.  Interest  on  taxable
securities  decreased $274 thousand as volume declined,  but the yield increased
78 basis  points to 6.37%.  Interest on  nontaxable  securities  decreased  $158
thousand or 8.2% almost entirely on volume.  Interest on short-term  investments
was relatively unchanged at $848 thousand.

Interest expense on deposits increased $1.0 million or 8.2%. Interest expense on
other borrowed funds  increased $293 thousand.  The increase for both categories
was mainly the result of an increase in the average rate paid.

Net  interest  margin on a tax  equivalent  basis  increased to 4.98% during the
first six  months of 2000  compared  to 4.83% for the same  period of 1999.  The
spread  between  rates  earned  and paid was up 9 basis  points  to 4.22% in the
six-month comparison.

Noninterest Income
------------------
Noninterest  income  was $6.3  million  for the  first six  months  of 2000,  an
increase of $225 thousand or 3.7%  compared to the same period in 1999.  Service
charges and fees on deposits  remained  relatively  unchanged  at $2.6  million.
Other service charges,  commissions,  and fees were also relatively unchanged at
$2.0 million.  Trust fees  increased  $173 thousand to a total of $819 thousand.
Gains on the sale of available for sale investment  securities were $49 thousand
in the  prior  year  with none in the  current  year.  The gain on sale of loans
increased $64 thousand.

Noninterest Expense
-------------------
Noninterest  expense  was $16.8  million  for the first six  months of 2000,  an
increase of $457 thousand or 2.8% compared to the same period in 1999.  Salaries
and employee benefits,  the largest component of noninterest expense,  increased
$588 thousand or 6.6%. Occupancy expense, net of rental income, was unchanged at
$1.1 million. Equipment expense decreased $107 thousand or 7.3%. Data processing
expense  was $152  thousand,  a decrease of $97  thousand.  Bank  franchise  tax
expense increased $48 thousand or 9.1%.

Income Taxes
------------
Income  tax  expense  for the first  six  months  of 2000 was $2.7  million,  an
increase of $159 thousand compared to the same period in 1999. The effective tax
rate was  28.0% for the first  six  months of 2000,  up from  26.2% in the prior
year.  The increase in the effective tax rate is due to a decrease in tax-exempt
income from both municipal loans and municipal securities.

FINANCIAL CONDITION

Total  assets were $1.0  billion on June 30,  2000, a decrease of $12 million or
1.2% from December 31, 1999. Fluctuations in assets and deposits are typical due
to the relationship between the Company's principal  subsidiary,  Farmers Bank &
Capital  Trust Co. and the  Commonwealth  of  Kentucky.  Farmers  Bank  provides
various  services to state agencies of the  Commonwealth.  As the depository for
the Commonwealth,  these agencies issue checks drawn on Farmers Bank,  including
paychecks and state income tax refunds.  Farmers Bank also processes vouchers of
the WIC  (Women,  Infants  and  Children)  program  for the  Cabinet  for  Human
Resources.  The  Bank's  investment  department  provides  services  to both the
Kentucky Retirement and Teacher's  Retirement systems. As the depository for the
Commonwealth,  large  fluctuations  in  deposits  are likely to occur on a daily
basis.  On an average  basis,  total  assets were $1.0 billion for the first six
months of 2000, an increase of $14 million or 1.4% from year-end 1999.

Loans
-----
Loans,  net of  unearned  income,  totaled  $671  million at June 30,  2000,  an
increase  of $28.1  million  or 4.4%  from  year-end  1999.  On  average,  loans
represented 72.9% of earning assets compared to 69.1% for year-end 1999. As loan
demand  fluctuates,  the available funds are redirected between either temporary
investments or investment securities.

Allowance for Loan Losses
-------------------------
The allowance for loan losses was $10.1 million at June 30, 2000, an increase of
$429 thousand from the prior year end. The allowance for loan losses was 1.5% of
net loans at June 30, 2000.  In  management's  opinion,  the  allowance for loan
losses is adequate to cover losses inherent in the loan portfolio. The provision
for loan losses  increased $792 thousand in the current  period  compared to the
same period in 1999.  The Company had net  charge-offs  of $998  thousand in the
first six months of 2000  compared to net  charge-offs  of $427  thousand in the
same period of 1999.  Management  continues to emphasize  collection efforts and
evaluation of risks within the portfolio.

Nonperforming Assets
--------------------
Nonperforming  assets for the Company include  nonperforming  loans,  other real
estate owned,  and other  foreclosed  assets.  Nonperforming  loans  consists of
nonaccrual loans,  restructured loans, and loans past due ninety days or more on
which interest in still accruing.  Nonperforming  assets totaled $5.6 million at
June 30,  2000,  a decrease of $146  thousand  or 2.6% from the prior  year-end.
Nonperforming  assets to total equity  increased  from 4.1% at year-end  1999 to
4.5% at June 30,  2000.  Nonperforming  loans  totaled  $4.7 million at June 30,
2000,  a  decrease  of  $214  thousand  or  4.4%  compared  to  year-end   1999.
Nonperforming loans as a percentage of net loans decreased from .76% at year-end
to .69%.

Other real estate owned,  which had a balance of $735 thousand at year-end 1999,
increased to $801 thousand as of June 30, 2000.

Temporary Investments
---------------------
Time deposits  with banks,  federal funds sold and  securities  purchased  under
agreements to resell averaged $28.1 million,  a decrease of $2.8 million or 9.2%
from  year end  1999.  Temporary  investments  are  reallocated  as loan  demand
presents the opportunity.

Investment Securities
---------------------
Investment  securities  were $206  million on June 30, 2000, a decrease of $23.5
million or 10.2% from  year-end  1999.  Available  for sale and held to maturity
securities  were  $150  and $56  million,  respectively.  Investment  securities
averaged  $217  million  for the first six months of 2000,  a decrease  of $29.6
million or 12.0%  from year end 1999.  The  Company  had an  unrealized  loss on
available for sale  investment  securities of $2.3 million,  net of tax, at June
30, 2000 compared to $1.9 million at year end 1999.

Deposits
--------
Total  deposits  were $839 million at June 30, 2000, a decrease of $23.5 million
or 2.7% from year-end 1999. Noninterest bearing deposits decreased $15.5 million
in the comparison.  This decrease is primarily due to the  relationship  between
the Company's principal subsidiary and the Commonwealth of Kentucky as described
in preceding sections of this report. On average,  noninterest  bearing deposits
were $146.6  million during the current  period,  an increase of $5.9 million or
4.2%.  Interest  bearing  deposits  decreased $8.0 million during the six months
ended June 30, 2000  compared to year-end  1999.  On average,  interest  bearing
deposits were $681 million in the current period, an increase of $7.1 million or
1.1% from year end 1999.  Total deposits  averaged $828 million,  an increase of
$13.1 million or 1.6% from year-end 1999.

Borrowed Funds
--------------
Borrowed  funds  totaled  $56.5  million at June 30, 2000,  an increase of $10.8
million from year-end 1999.  Total  borrowed  funds  averaged  $44.0 million,  a
decrease of $1.4 million or 3.0%.

LIQUIDITY

The  liquidity  of the Parent  Company is  primarily  affected by the receipt of
dividends from its subsidiary banks and cash balances maintained. As of June 30,
2000 combined retained  earnings of the subsidiary banks were $59.4 million,  of
which $22.2  million was  available  for the payment of  dividends to the Parent
Company without  obtaining prior approval from bank  regulatory  agencies.  As a
practical matter, payment of future dividends is also subject to the maintenance
of other capital ratio  requirements.  Management expects that in the aggregate,
its  subsidiary  banks will  continue to have the  ability to dividend  adequate
funds to the Parent Company during the remainder of 2000. The Parent Company had
cash balances of $20.0 million at June 30, 2000.

The Company's  objective as it relates to liquidity is to insure that subsidiary
banks  have funds  available  to meet  deposit  withdrawals  and credit  demands
without unduly penalizing profitability.  In order to maintain a proper level of
liquidity,  the banks have several  sources of funds  available on a daily basis
which can be used for  liquidity  purposes.  These  sources  of funds  primarily
include the  subsidiary  banks' core  deposits,  consisting of both business and
nonbusiness  deposits;  cash flow  generated by repayment of loan  principal and
interest;  and federal funds purchased and securities  sold under  agreements to
repurchase.

For the longer term, the liquidity position is managed by balancing the maturity
structure of the balance sheet. This process allows for an orderly flow of funds
over an extended period of time.

Liquid assets consist of cash and due from banks,  short-term  investments,  and
securities  available  for sale.  At June 30,  2000,  such assets  totaled  $267
million,  a decrease of $36.1 million from year-end  1999.  Net cash provided by
operating  activities  decreased  $3.6  million in the six months ended June 30,
2000 compared to the same period last year. The decrease is primarily attributed
to the decrease in the proceeds from the sale of mortgage  loans.  Net cash used
in investing  activities was $6.9 million, an increase of $1.5 million. Net cash
used in  financing  activities  was $21.5  million for the period ended June 30,
2000 compared to net cash provided of $7.4 million in the prior year comparison.
The increase in net cash used in financing  activities  is due  primarily to the
decrease in utilizing other borrowed funds.

CAPITAL RESOURCES

Shareholders'  equity was $123 million on June 30, 20000, down $1.7 million from
year-end  1999.  The Company  purchased 145 thousand  shares of its  outstanding
common  stock  during  the  first six  months  of 2000 for a total  cost of $4.6
million.  The Company  issued  6,450 shares of common stock during the first six
months pursuant to its nonqualified stock option plan. Dividends of $4.3 million
or $.58 per share were declared during the first six months of 2000, an increase
of 3.6% per share compared to the prior year.  The Company's  available for sale
investment  securities  portfolio had net  unrealized  losses of $2.3 million at
June 30, 2000, up from a net unrealized loss of $1.9 million at year-end.

Consistent with the objective of operating a sound financial  organization,  the
Company's goal is to maintain  capital ratios well above the regulatory  minimum
requirements.  The Company's  capital ratios as of June 30, 2000, the regulatory
minimums and the regulatory standard for a "well capitalized" institution are as
follows:

                         Farmers Capital        Regulatory             Well
                        Bank Corporation         Minimum            Capitalized
--------------------------------------------------------------------------------
Tier 1 risk based           18.07%                4.00%                6.00%

Total risk based            19.32%                8.00%               10.00%

Leverage                    12.32%                4.00%                5.00%

The capital ratios of all the subsidiary  banks, on an individual basis, were in
excess of the applicable  minimum  regulatory capital ratio requirements at June
30, 2000.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------
There have been no material  changes in the Company's  market risk from December
31, 1999.  For  information  regarding the Company's  market risk,  refer to the
Company's Annual Report on Form 10-K for the year ended December 31, 1999.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
--------------------------
In  September  1992,  Farmers Bank (the "Bank") was named as a defendant in Case
No. 92CI05734 in Jefferson Circuit Court, Louisville, Kentucky, in a case styled
Schilling,  et al. v. Farmers Bank & Capital Trust Company. The named plaintiffs
purported to represent a class  consisting  of all present and former  owners of
the County of Jefferson,  Kentucky, Nursing Home Refunding Revenue Bonds (Filson
Care Home Project) Series 1986A and County of Jefferson,  Kentucky, Nursing Home
Improvement  Revenue Bonds (Filson Care Home Project) Series 1986B (collectively
"the Bonds").  The plaintiffs  alleged that the class had been damaged through a
reduction in the value of the Bonds and a loss of interest on the Bonds  because
of the  actions  of the  Bank  in its  capacity  as  indenture  trustee  for the
Bondholders. The plaintiffs demanded compensatory and punitive damages.

On July 6, 1993, the Court denied the plaintiffs'  motion to certify the case as
a class action.  Subsequently,  the plaintiffs  amended their  complaint to join
additional  Bondholders as plaintiffs.  The plaintiffs  claimed to hold Bonds in
the aggregate  principal  amount of $480,000.  Before trial, the Court dismissed
thirty-nine of the  plaintiffs  because they were unable or unwilling to present
testimony to support their claims.

The case was tried to a jury  beginning  on March 28, 2000 on the claims of four
plaintiffs holding Bonds in the aggregate principal amount of $80,000. The Court
granted a directed  verdict in favor of the Bank on the  plaintiffs'  claim that
the Bank had  engaged in  commercial  bribery  and that the legal fees that were
paid by the Bank should be disgorged  because of an alleged conflict of interest
of the Bank's  counsel.  The jury found for the plaintiffs on the claim that the
Bank had  breached  its  fiduciary  duty and awarded the  plaintiffs  $99,875 in
compensatory damages and $600,000 in punitive damages.

The Bank has filed a motion for judgment  notwithstanding the verdict or, in the
alternative,  for a new trial,  asserting  that the jury's verdict that the Bank
breached its fiduciary duty was not supported by sufficient  evidence,  that the
jury's award of damages was  speculative  and was not supported by the evidence,
and that the jury's award of punitive  damages was not  supported by  sufficient
evidence.  The Bank has also asserted  that a new trial is warranted  because of
the erroneous admission of evidence concerning legal fees paid by the Bank.

Plaintiffs filed appeals  contending that the denial of class  certification was
erroneous,  that the individual  plaintiffs  should not have been dismissed from
the  lawsuit,  that  certain  evidence was  erroneously  excluded,  and that the
directed  verdict  regarding the  disgorgement  of legal fees and the commercial
bribery  claims was  erroneous.  On August 1, 2000 the Kentucky Court of Appeals
dismissed the appeals as having been prematurely filed.

Farmers  Bank  intends to  vigorously  pursue its  pending  motion for  judgment
notwithstanding the verdict or, in the alternative,  for a new trial, or, in the
event the trial court denies the motion, to appeal the trial court's judgment to
the  Kentucky  Court  of  Appeals.  It is not  possible  at  this  stage  of the
proceedings to make any prediction as to the outcome.

As of June 30,  2000,  there  were  various  other  pending  legal  actions  and
proceedings  against the Company  arising from the normal course of business and
in which claims for damages are  asserted.  Management,  after  discussion  with
legal  counsel,  believes  that these  actions  are  without  merit and that the
ultimate liability  resulting from these legal actions and proceedings,  if any,
will  not  have a  material  adverse  effect  upon  the  consolidated  financial
statements of the Company.

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

The annual meeting of  shareholders  was held May 9, 2000. The matters that were
voted upon included:

a)       The election of four directors for  three-year  terms ending in 2003 or
         until their successors have been elected and qualified.

b)       The transaction of such other business as may properly come before the
         meeting.

The outcome of the voting was as follows:

Name                                   For      Against    Withheld    Abstained
Frank W. Sower, Jr.                 6,604,338      0         1,100         0
J. Barry Banker                     6,598,068      0         7,370         0
Charles S. Boyd                     6,598,218      0         7,220         0
Glen Birdwhistell                   6,590,202      0         15,236        0
The transaction of other business   6,378,909   159,334        0        67,195

Listed below is the name of each director whose term of office  continued  after
the meeting.

Stokes A. Baird IV                          Harold G. Mays
James H. Childers                           Robert Roach, Jr.
Michael M. Sullivan                         G. Anthony Busseni
Lloyd C. Hillard, Jr.                       Dr. John D. Sutterlin

In addition to the directors above, Dr. John P. Stewart, Chairman Emeritus,
E. Bruce Dungan, and Charles T. Mitchell serve as advisory directors for the
Company.

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------
a)       List of Exhibits
         ----------------
         11    Statement re computation of per share earnings

         27    Financial data schedule (for SEC use only)

b)       Reports on Form 8-K
         -------------------

On July 25, 2000,  the Company  filed a Form 8-K to announce  that it intends to
purchase  up to  500,000  shares of its  outstanding  common  stock.  This is in
addition to the stock  purchase  plan  announced on November 9, 1998 to purchase
400,000 shares. Under the previously announced plan, 283,955 have been purchased
as of July 25, 2000.  The purchase  will be dependent on market  conditions  and
there will be no  guarantee  as to the exact number of shares to be purchased by
the Company. Shares purchased would be used for general corporate purposes.

Consistent  with the  objective of  maximizing  shareholder  value,  the Company
considers the purchase of its  outstanding  shares in the current price range to
be a good investment of the Company's available funds.

Financial statements were not required with this Form 8-K.
SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

Date:    8/11/00                /s/ Charles Scott Boyd

      -------------             ------------------------------------------------
                                Charles Scott Boyd,
                                President and CEO (Principal Executive Officer)

Date:    8/11/00                /s/ Cecil Douglas Carpenter

      -------------             ------------------------------------------------
                                Cecil Douglas Carpenter,
                                Vice President and CFO (Principal Financial
                                and Accounting Officer)
Exhibit 11
                 Statement re computation of per share earnings
----------------------------------------------------------------------------------------------------------
                                                        Three Months Ended             Six Months Ended
                                                              June 30,                      June 30,
(In thousands, except per share data)                    2000           1999            2000         1999
----------------------------------------------------------------------------------------------------------
Net income, basic and diluted                          $2,952         $3,668          $6,950       $7,171
----------------------------------------------------------------------------------------------------------
Average shares outstanding                              7,346          7,488           7,384        7,501
Effect of dilutive stock options
----------------------------------------------------------------------------------------------------------
Average diluted shares outstanding                      7,346          7,488           7,384        7,501
----------------------------------------------------------------------------------------------------------
Net income per share, basic                              $.40           $.49            $.94         $.96
Net income per share, diluted                            $.40           $.49            $.94         $.96
----------------------------------------------------------------------------------------------------------