Item 2.03. Creation of a Direct Financial Obligation

On November 6, 2008, Premier Financial Bancorp, Inc. ("Premier") executed and delivered to The Bankers' Bank of Kentucky, Inc. of Frankfort, Kentucky ("Bankers' Bank") a Modification and Extension Agreement ( the "Agreement") of a November 10, 2006 Promissory Note whereby Premier may borrow from Bankers' Bank from time to time, up to $3,000,000 principal amount. The Agreement served to extend the expiration date of the Promissory Note to November 9, 2009, reduce the principal amount to $3,000,000 and establish an interest rate floor of 3.00%. Under the terms of the Promissory Note, any outstanding principal balance under the Promissory Note shall bear annual interest floating daily at the JP Morgan Chase Co. prime rate minus 1.00% (currently 3.00%). Interest on the Promissory Note shall be due and payable on the 5th day of each, January, April, July and October during the term of this Promissory Note, and at the maturity date hereof. Any outstanding principal amount loaned to Premier under this Promissory Note, and not previously repaid, shall be due on November 9, 2009. At the date of execution of the Agreement, no balance was outstanding under the Promissory Note.

Item 9.01. Financial Statements and Exhibits

(c) Exhibit 10.1 - Modification and Extension Agreement between Premier Financial Bancorp, Inc. and The Kentucky Bankers' Bank, Inc. dated November 9, 2008.

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 hereunto duly authorized.

PREMIER FINANCIAL BANCORP, INC.
(Registrant)

/s/ Brien M. Chase
Date: November 10, 2008 Brien M. Chase, Senior Vice President
and Chief Financial Officer

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