Exhibit 99.1
                      Press Release Dated January 7, 2005

                                  NEWS RELEASE
                                 January 7, 2005

           JOINT VENTURE ACQUIRES KENTUCKY HOME LIFE INSURANCE COMPANY

     Frankfort,  Kentucky - Farmers Capital Bank Corporation (Nasdaq:  FFKT) and
Hamburg  Insurance,  LLC today  jointly  announced  that they  have  closed  the
acquisition  of  Kentucky  Home  Life  Insurance  Company.   The  close  of  the
transaction was effective January 1, 2005.

     Kentucky Home Life Insurance  Company writes credit  insurance in Kentucky,
with over 750 licensed agents.

     Farmers  Capital and Hamburg  Insurance have equal voting  interests in the
new holding company of Kentucky Home Life Insurance Company.

     Farmers   Capital  Bank   Corporation  is  a  financial   holding   company
headquartered  in Frankfort,  Kentucky.  It operates 26 banking  locations in 16
communities throughout Kentucky, a leasing company, a data processing company, a
mortgage company,  and an insurance company. Its stock is publicly traded on the
National  Association of Securities Dealers Automated  Quotation System (NASDAQ)
SmallCap  Market  tier,  under the symbol:  FFKT.  Hamburg  Insurance,  LLC is a
closely-held firm in which Terry Forcht is a principal  shareholder.  Mr. Forcht
also is a  principal  shareholder  of 10 banks in  Kentucky,  in  addition  to a
variety of healthcare and media ventures.

     The  seller,   National   Guardian  Life  Insurance   Company  (NGLIC),   a
Wisconsin-domiciled mutual life insurer, had formed Kentucky Home Life Insurance
Company  in 1998 in  conjunction  with a  merger  with a  Kentucky  mutual  life
insurer,  primarily  to continue  certain  credit  insurance  operations  of the
absorbed  mutual  insurer.  NGLIC  has  since  determined  these  lines  are not
strategic to its core operations.