<PAGE>   1
                                   FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


(Mark One)

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 For the quarterly period ended September 30, 1999

                                       OR

[ ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 For the transition period from             to
                                               -------------  ------------------

                          Commission File No. 0-25079



                       MICHIGAN COMMUNITY BANCORP LIMITED
             (Exact name of registrant as specified in its charter)

         MICHIGAN                                     38-3390193
   (State of incorporation)                 (I.R.S. Employer Identification No.)


                              43850 SCHOENHERR ROAD
                            STERLING HEIGHTS MI 48313
                    (Address of principal executive offices)

                                 (810) 532-8000
               Registrant's Telephone Number, including area code:


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 report(s), and (2) has been subject to such filing
requirements for the past 90 days.


                              Yes x    No
                                 -----    -----

As of September 30, 1999, the Registrant had 665,000 shares of Common Stock
issued and outstanding.

Transitional Small Business Disclosure Format (check one)


                               Yes      No  x
                                  -----   -----



                                      (1)
<PAGE>   2


                          PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

        Michigan Community Bancorp Limited (the "Company" or "MCB") completed an
        initial public offering of its common Stock in December 1998 raising
        $9,975,000 of gross proceeds before fees and expenses. The total
        offering consisted of 665,000 shares which were priced at $15 per share.
        The net proceeds to the Company after deducting underwriting fees were
        $9.2 million. The consolidated financial statements of the Company
        include its subsidiary banks, Lakeside Community Bank (LCB) and North
        Oakland Community Bank (NOCB). All adjustments, which in the opinion of
        management are necessary in order to ensure the financial statements are
        not misleading, have been included.





                                      (2)
<PAGE>   3


                       MICHIGAN COMMUNITY BANCORP LIMITED
                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                      (IN THOUSANDS)
                                                                      --------------
                                                                  9/30/99       12/31/98
                                                                  -------       --------
<S>                                                             <C>            <C>
Assets
Cash & cash equivalents:
     Cash & due from banks                                       $  2,005       $     67
     Federal funds sold                                             9,950          7,839
                                                                 --------       --------
          Cash and cash equivalents                                11,955          7,906

Securities Available for Sale (Note 2)                              1,993             --
Loans: (Note 3)
     Loans, gross                                                  36,093             --
     Less: allowance for loan losses                                  560             --
                                                                 --------       --------
          Net loans                                                35,533             --

Premises and equipment-Net                                          1,677            222
Other assets                                                          439            835
                                                                 --------       --------
          Total assets                                           $ 51,597       $  8,963
                                                                 ========       ========

Liabilities and Stockholders' Equity
Liabilities
Deposits: (Note 4)
     Non-Interest Bearing Demand Deposits                        $  5,190             --
     Interest Bearing Demand Deposits                               5,302             --
     Savings Deposits                                               1,620             --
     Time Deposits                                                 31,032             --
                                                                 --------       --------
           Total deposits                                        $ 43,144             --

Other liabilities                                                   1,328            318
                                                                 --------       --------
          Total liabilities                                        44,472            318
Shareholders Equity
     Preferred stock, no par value, 1,000,000
          shares authorized, none issued                               --             --
     Common stocks-$5 stated value
          authorized - 9,000,000 shares
          issued and outstanding - 665,000 shares                   3,325          3,325
     Capital surplus                                                5,880          5,880
     Accumulated deficit                                           (2,081)          (560)
     Accumulated Other Comprehensive, Net of                            1             --
          Tax of $ 1
                                                                 --------       --------
          Total stockholders' equity                                7,125          8,645
                                                                 --------       --------

Total liabilities and stockholders' equity                       $ 51,597       $  8,963
                                                                 ========       ========
</TABLE>



                                      (3)
<PAGE>   4

                       MICHIGAN COMMUNITY BANCORP LIMITED
                       CONSOLIDATED STATEMENT OF EARNINGS
                      JANUARY 1, 1999 TO SEPTEMBER 30, 1999
                                   (UNAUDITED)


<TABLE>
<CAPTION>


                                                                                          (IN THOUSANDS)
                                                                                          --------------
                                                                                3 MONTH ENDED       YEAR-TO-DATE
                                                                                     9/30/99          9/30/99
                                                                                -------------       ------------
<S>                                                                            <C>                   <C>
Interest Income:
     Interest & Fee on Loans                                                    $     689             $   1,041
     Interest on Investment Securities                                                 29                    39
     Interest on Certificate of Deposit                                                --                     4
     Interest on Federal Funds Sold                                                   126                   368
                                                                                ---------             ---------
          Total Interest Income                                                       844                 1,452

Interest Expense:
     Interest on Demand Deposits                                                       38                    73
     Interest on Savings Deposits                                                       7                    12
     Interest on Time Deposits                                                        385                   594
                                                                                ---------             ---------
           Total Interest Expense                                                     430                   679
                                                                                ---------             ---------
          Net interest income before allowance for loan losses                        414                   773
Less allowance for loan losses                                                        200                   560
                                                                                ---------             ---------
     Net interest income after allowance for loan losses                              214                   213

Other Income                                                                            3                    27
Other operating expenses:
     Salaries and employee benefits                                                   329                 1,005
     Occupancy                                                                         44                   162
     Equipment expense                                                                 70                   164
     Advertising                                                                       30                    72
     Miscellaneous                                                                    148                   358
                                                                                ---------             ---------
     Total other operating expense                                                    621                 1,761
                                                                                ---------             ---------

Loss - Before income taxes                                                           (404)               (1,521)

Provision for income taxes                                                             --                    --
                                                                                ---------             ---------
Net loss                                                                        $    (404)            $  (1,521)
                                                                                =========             =========

Number of shares outstanding                                                      665,000               665,000
                                                                                =========             =========

Net loss per share                                                              $   (0.61)            $   (2.29)
                                                                                =========             =========
</TABLE>


                                      (4)
<PAGE>   5

                       MICHIGAN COMMUNITY BANCORP LIMITED
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                     JANUARY 28, 1998 TO SEPTEMBER 30, 1999
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                                                              ACCUMULATED
                                                                                                 OTHER            TOTAL
                                                     COMMON     CAPITAL     ACCUMULATED      COMPREHENSIVE    STOCKHOLDERS'
                                                      STOCK     SURPLUS       DEFICIT           INCOME            EQUITY
                                                     ---------  ---------   -----------      -------------    -------------
<S>                                                  <C>        <C>         <C>              <C>               <C>
BALANCE - JANUARY 28, 1998 - INCEPTION               $     -    $     -     $      -         $      -          $     -

Public Stock Offering                                  3,325      6,102            -                -            9,427

Cost of Stock Offering                                     -       (222)           -                -             (222)

Net Loss                                                   -          -         (560)               -             (560)
                                                     ---------  ---------   -----------      -------------     -----------

BALANCE - DECEMBER 31, 1998                            3,325      5,880         (560)               -            8,645

Comprehensive Income:

Net Loss                                                   -          -       (1,521)                           (1,521)

Change in Unrealized Loss on Securities                                                             -                -

Available for Sale, Net of Re-classification

Adjustment and Tax Effect of $ 1                                                                    1                1
                                                     ---------  ---------   ----------       ------------      ----------

Total Comprehensive Income                                 -          -       (1,521)               1           (1,520)
                                                     ---------  ---------   ----------       ------------      ----------

September 30, 1999                                   $ 3,325    $ 5,880     $ (2,081)        $      1          $ 7,125
                                                     =========  ==========  ==========       ============      ==========
</TABLE>




                                      (5)
<PAGE>   6
                       MICHIGAN COMMUNITY BANCORP LIMITED
                       CONSOLIDATED STATEMENT OF CASH FLOW
                      JANUARY 1, 1999 TO SEPTEMBER 30, 1999
                                   (UNAUDITED)

<TABLE>
<CAPTION>




                                                                                 (IN THOUSANDS)
<S>                                                                            <C>
Operating activities:
     Net loss                                                                              ($1,521)
     Adjustments to reconcile net loss to net cash
        provided in operating activities
     Loss on Sale of Securities                                                                  2
     Provision for loan loss                                                                   560
     Depreciation                                                                               94
     Accretion of Securities                                                                    (1)
     (Increase) Decrease in Interest Receivable & other assets                                 396
     Increase (Decrease) in Interest Payable & other liabilities                             1,009
                                                                               --------------------

        Net cash provided by operating activities                                              539

Investing activities:
     Increase in gross loans                                                               (36,093)
     Additions to premises and equipment                                                    (1,549)
     Purchases of Available for Sale Securities                                             (3,981)
     Proceeds from sale of Available for Sale Securities                                     1,989
                                                                               --------------------

        Net cash used in investing activities                                              (39,634)

Cash flows from financing activities:
     Net increase in interest-bearing and non-interest
       bearing demand accounts                                                              10,492
     Net increase in savings and time deposits                                              32,652
                                                                               --------------------

        Net cash provided by financing activities                                           43,144

Net increase in cash and cash equivalents                                                    4,049

Cash and cash equivalents - December 31, 1998                                                7,906
                                                                               --------------------

Cash and cash equivalents - September 30, 1999                                             $11,955
                                                                               ====================

Cash paid for interest                                                                        $548
                                                                               ====================
</TABLE>



                                      (6)
<PAGE>   7
                       MICHIGAN COMMUNITY BANCORP LIMITED
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         The accounting and reporting policies of Michigan Community Bancorp
         Limited (the "Company") conform to generally accepted accounting
         principles. Management is required to make estimates and assumptions
         that affect the amounts reported in the consolidated financial
         statements and accompanying notes. Actual results could differ from
         these estimates and assumptions.


         NATURE OF OPERATIONS - Michigan Community Bancorp Limited was
         incorporated on January 28, 1998 as a bank holding company to establish
         and operate two new banks, Lakeside Community Bank (LCB) in Sterling
         Heights, Michigan and North Oakland Community Bank (NOCB) in Rochester
         Hills, Michigan. In December 1998, the Company completed an initial
         public offering for the sale of 665,000 shares of common stock, raising
         $9.2 million, net of offering costs. LCB and NOCB commenced operations
         in January 1999.


         PRINCIPLES OF CONSOLIDATION - The consolidated financial statements
         include the accounts of Michigan Community Bancorp Limited (the
         "Corporation") and its wholly owned subsidiaries, Lakeside Community
         Bank and North Oakland Community Bank (the "Banks"). The tabular
         presentations omit 000's.


         SECURITIES - Securities for which the Corporation has both the positive
         intent and ability to hold to maturity are classified as
         "held-to-maturity." Those securities are recorded at cost, adjusted for
         accumulated amortization of premium and accretion of discount. Realized
         gains and losses on sales of held to maturity securities, while rare,
         will be included in net securities gains based on the adjusted cost of
         the specific item sold. At September 30, 1999 there are no securities
         classified as held to maturity.

         When securities are purchased and the Corporation intends to hold the
         securities for an indefinite period of time, but not necessarily to
         maturity, they are classified as "available for sale" and recorded at
         market value. Any decision to sell a security available for sale will
         be based on various factors, including significant movements in
         interest rates, changes in the maturity mix of the Corporation's assets
         and liabilities, liquidity demands, regulatory capital considerations
         and other similar factors. Cost is adjusted for amortization of
         premiums and accretion of discounts to maturity or, for mortgage-backed
         securities, over the estimated life of the security. Unrealized gains
         and losses for available-for-sale securities will be excluded from
         earnings and recorded as an amount, net of tax, as a component of
         comprehensive income in stockholders' equity.

                                      (7)
<PAGE>   8
                       MICHIGAN COMMUNITY BANCORP LIMITED
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         INTEREST INCOME ON LOANS - Interest on loans is accrued and credited to
         income based on the principal amount outstanding. The accrual of
         interest on loans is discontinued when, in the opinion of management,
         there is an indication that the borrower may be unable to meet payments
         as they become due. Upon such discontinuance, all unpaid interest
         accrued during the current year is reversed. Interest accruals are
         generally resumed when all delinquent principal and/or interest has
         been brought current, and in the opinion of management, the borrower
         has demonstrated the ability to meet the terms and conditions of the
         agreement.

         LOANS AND RESERVE FOR POSSIBLE LOAN LOSSES - The reserve for possible
         loan losses is established through a provision for possible loan losses
         charged to expense. Loans are charged against the reserve for possible
         loan losses when management believes collection of the principal is
         unlikely. The reserve for possible loan losses is an amount management
         believes will be adequate to absorb losses inherent in existing loans
         based on evaluations of the anticipated repayment and prior loss
         experience. The factors taken into consideration include: changes in
         the nature, volume and quality of the portfolio, loan concentrations,
         specific problem loans and current and anticipated economic conditions
         that may affect the borrower's ability to pay.

         PREMISES AND EQUIPMENT - Premises and equipment are stated at cost.
         Depreciation is computed on the straight-line basis and charged to
         operations over the estimated useful lives of the properties.

         INCOME TAXES - The Corporation files a consolidated federal income tax
         return and uses the asset and liability method of accounting for income
         taxes. Current taxes are measured by applying the provisions of enacted
         tax laws to taxable income to determine the amount of taxes receivable
         or payable. Deferred tax assets and liabilities are recorded based on
         the difference between the tax basis of assets and liabilities and
         their carrying amounts for financial reporting purposes.

         OTHER COMPREHENSIVE INCOME - Accounting principles generally require
         that recognized revenue, expenses, gains and losses be included in net
         income. Certain changes in assets and liabilities however, such as
         unrealized gains and losses on available-for-sale securities, are
         reported as a direct adjustment of the equity section of the balance
         sheet. Such items, along with net income, are components of
         comprehensive income. The only item included in "accumulated other
         comprehensive income" at September 30, 1999 is the net unrealized gains
         and losses on available-for-sale securities.

         OFFERING COSTS - Costs related to the offering of common stock have
         been netted against the offering proceeds from the sale of the
         Company's stock.

         EARNINGS PER SHARE - Basic earnings per share is based on the weighted
         number of shares outstanding during the period.

                                      (8)
<PAGE>   9
                       MICHIGAN COMMUNITY BANCORP LIMITED
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)


NOTE 1 - SUMMARY OF  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         STOCK OPTIONS - The Company has two stock option plans. Options granted
         to directors and key employees under both plans are accounted for using
         the intrinsic value method, under which compensation expense is
         recorded at the amount by which the market price of the underlying
         stock at grant date exceeds the exercise price of an option. Under the
         Company's plans, the exercise price on all options granted equals or
         exceeds the fair value of the stock at the grant date. Accordingly, no
         compensation cost is recorded as a result of stock options awards under
         the plan.

NOTE 2 - SECURITIES

         The amortized cost and estimated market value of securities available
         for sale are as follows:

<TABLE>
<CAPTION>
                                                                      Gross            Gross
                                                   Amortized        Unrealized       Unrealized        Estimated
                                                      Cost            Gains           Losses          Market Value
                                                -----------------   -----------     -----------      --------------
<S>                                             <C>                <C>              <C>              <C>
U.S. Treasury securities and obligations of
  U.S. government corporations and agencies     $           1,991  $          2     $         -      $        1,993
                                                =================  ============     ===========      ==============
</TABLE>

         The amortized cost and estimated market value of securities available
         for sale at September 30, 1999, by contractual maturity, are shown
         below. Expected maturities will differ from contractual maturity
         because issuers have the right to call or prepay obligations with or
         without call or prepayment penalties:

<TABLE>
<CAPTION>
                                                               Amortized              Estimated
                                                                 Cost                Market Value
                                                              ------------          -------------
<S>                                                           <C>                   <C>
                  Due after one year but within five years    $      1,991          $       1,993
                                                              ============          =============

</TABLE>

         At September 30, 1999, U.S. Treasury Securities and obligations of U.S.
         Government corporations and agencies were carried at $1,993 with a
         market value of $1,993 and were pledged to secure public deposits and
         for other purposes required by law.

         Other than the U.S. Treasury Securities and obligations of U.S.
         Government corporations and agencies, there were no investment
         securities of any one issuer aggregating 10 percent of consolidated
         stockholders' equity at September 30, 1999.


                                      (9)
<PAGE>   10
                       MICHIGAN COMMUNITY BANCORP LIMITED
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)


NOTE 3 - LOANS

         Major classifications of loans are summarized as follows:

<TABLE>
<CAPTION>
                                            September 30, 1999
                                            ------------------
<S>                                                  <C>
                  Commercial                         $         29,834
                  Real Estate Mortgage                          2,700
                  Installment                                   3,559
                                                     ----------------

                           Total Loans                         36,093

                  Less reserve for possible loan losses           560
                                                       --------------

                           Net Loans                 $         35,533
                                                     ================
</TABLE>

         At September 30, 1999, approximately 3.7 million of loans were
         outstanding to officers, bank directors, principal stockholders and
         their associated companies. In the opinion of the Board of Directors of
         the respective Banks, such loans were made on the same terms and
         conditions as those to other borrowers and did not involve more than
         the normal risk of collectibility.

         At September 30, 1999, the Company had a loan concentration of 6.4
         million in non-residential building operators and single-family housing
         construction. Management does not feel that the borrowers will be
         similarily impacted by economic or other activities.

         ALLOCATION OF THE RESERVE FOR LOAN LOSS

         At September 30, 1999, there were two loans 30 days past due (1.0
         million).  There were no non-accrual loans and no watch loans.

         Transactions in the reserve for possible loan losses were as follows:

<TABLE>
<S>                                                           <C>
                  Balance - Beginning of year                 $      -
                  Provision charged to operations                  560
                  Loans charged off                                  -
                  Recoveries                                         -
                                                              --------

                  Balance - September 30, 1999                $    560
                                                              ========

                  Reserve as a percentage of total loans          1.55%
                                                              ========
</TABLE>


                                      (10)
<PAGE>   11
                       MICHIGAN COMMUNITY BANCORP LIMITED
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (UNAUDITED)

NOTE 4 - CERTIFICATES OF DEPOSIT

         The aggregate amount of certificates of deposit in denominations in
         excess of $100,000 totaled approximately $11 million at September 30,
         1999. The interest expense related to such deposits throughout the year
         was approximately $265,800, which is included in interest on time
         deposits in the accompanying consolidated statement of income.

NOTE 5 - OPERATING LEASE

         The company assigned the lease for a building utilized by NOCB's branch
         operations to NOCB. The assignment required the prepayment of the lease
         totaling $250,000 and an ongoing monthly rental payment of $600. The
         prepayment of rent will be expensed over the lease assignment term that
         expires on December 31, 2004.

         The Company has entered into a lease for a building to be utilized to
         LCB's branch operations and the Company's headquarters. During the
         first five year period, the lease requires a $8,392 monthly payment. A
         credit of $4,196 for the first sixteen months will be given for tenant
         improvements. The last five year period of the lease requires a $8,890
         monthly payment. The lease expires December 1, 2008.

         The annual future minimum lease payments required under these
         non-cancelable operating leases as of September 30, 1999 are as
         follows:

<TABLE>
<S>                       <C>
    1999                       $  16,775
    2000                          95,316
    2001                         107,904
    2002                         107,904
    2003                         108,402
thereafter                       535,310
                          ---------------

    Total                      $ 971,611
                          ===============

</TABLE>

NOTE 6 - SUBSEQUENT EVENT

         During September, 1999, the Company commenced a Private Placement of
         91,000 units.  Each unit is comprised of 1 share of common stock and
         1 common stock purchase warrant which entitles the holder to acquire 1
         1/2 shares of common stock at $11.00 per share.  At September 30,
         1999, the Company has collected $951.993, this amount is recorded as a
         deposit in other liabilities. On October 1, 1999 the remaining units
         were sold and the common stock and warrants were issued.


                                      (11)
<PAGE>   12



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATION

         FORWARD - LOOKING STATEMENTS

         The following discussion contains forward-looking statements that
         involve substantial risks and uncertainties. These forward-looking
         statements can be identified by the use of the words "anticipate",
         "believe", "expect", "plan", and similar expressions. They are not
         guarantees of future performance and involve certain risks,
         uncertainties and assumptions that are difficult to predict with regard
         to timing, extent, likeliness and degree of occurrence. Various
         factors, including regional and national economic conditions,
         substantial changes in levels of market interest rates, credit and
         other risks of lending and investment activities and competitive and
         regulatory factors could affect the Company's financial performance and
         could cause the Company's actual results for future periods to differ
         materially from those anticipated or projected. A list of the material
         risks of the Company may be found under the caption "Factors That May
         Affect Our Future Results" in the Company's Annual Report on Form 10-K
         for the fiscal year ended December 31, 1998.

(A)      PLAN OF OPERATION

         ORGANIZATION

         The Company was incorporated in 1998 as a bank holding company. The
         Company operates two wholly owned subsidiary banks, Lakeside Community
         Bank (LCB) and North Oakland Community Bank (NOCB) (collectively the
         "Banks"). LCB and NOCB are organized as Michigan banking corporations
         with depository accounts insured by the Bank Insurance Fund of the
         Federal Deposit Insurance Corporation. LOC and NOCB provide a range of
         commercial and consumer banking services primarily in the northern
         communities of Macomb and Oakland Counties.

         MARKET AREA

         LCB is located on Schoenherr Road in a rapidly growing area of Macomb
         County. NOCB is located on Rochester Road and occupies a renovated
         former bank building in a rapidly growing area of Oakland County. The
         communities that comprise the company's primary service area include
         Sterling Heights, Macomb, Rochester and Rochester Hills. Management
         believes these communities have an expanding and diverse economic base,
         which includes a wide range of small to medium-sized businesses engaged
         in manufacturing, construction and retail.

         BANK LINES OF BUSINESS

         The Banks' core business activities include attracting deposits from
         the general public and using such deposits along with equity capital to
         originate commercial loans. The Banks also offer installment and home
         equity loans to consumers. The Banks' results of operations are
         dependent primarily upon net interest income, which is the difference
         between interest income from interest earning assets and interest
         expense on interest bearing liabilities. Results of operation may be
         positively influenced by non-interest income such as fees related to
         loan origination and service charges associated with customer deposit
         accounts.  The Banks offer a full array of demand deposit accounts,
         money market demand accounts, NOW accounts, savings accounts,
         individual retirement accounts, certificates of deposit and ATM cards.


                                      (12)
<PAGE>   13

         CASH REQUIREMENTS

         During September, 1999, the Company commenced a private placement of
         91,000 units. Each unit is comprised of 1 share of common stock and 1
         common stock purchase warrant which entitles the holder to acquire 1
         1/2 shares of common stock at $11.00 per share. As of October 1, 1999
         all the units were sold providing $1,001,000.00 in net proceeds to the
         Company. Proceeds from the offering are to be used to repay
         indebtedness to Lakeside Community Bank and North Oakland Community
         Bank and to bring the Company and the Banks into compliance with
         Section 23A and 23B of the Federal Reserve Act. Remaining proceeds will
         be used to provide the company with additional working capital.

         NUMBER OF EMPLOYEES

         At September 30, 1999 the Company and the Banks' employed 22 people on
         a full time basis and 4 people on a part time basis. Over the next
         twelve months, MCB does not expect any significant changes in staffing
         levels.


(B)  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
     RESULTS OF OPERATIONS

         Total assets at September 30, 1999 were $51.6 million as compared to
         $32.9 million at June 30, 1999. The increase in total assets was funded
         by a $17.9 million dollar increase in deposits. Total net loss year to
         date September 30, 1999 was $1.5 million. A portion of the loss can be
         attributed to the volume of funds invested in low interest federal
         funds sold, in anticipation of the commercial loans committed to, but
         as of September 30, 1999 not funded.


DISTRIBUTION OF ASSETS, LIABILITES AND SHAREHOLDERS' EQUITY; INTEREST RATES AND
INTEREST DIFFERENTIAL

         Net interest income, the primary component of earnings, represents the
         difference between interest income on interest-earning assets and the
         interest expense of interest-bearing liabilities. Net interest income
         depends upon the volume of interest-earning assets and interest-bearing
         liabilities and the rates earned or paid on them. This table represents
         the daily average balances for the major asset and liability categories
         and the related interest income and expense and interest rates for the
         periods:


                                      (13)
<PAGE>   14

<TABLE>
<CAPTION>

                                        Three months ended September 30, 1999         Nine Months Ended September 30, 1999

                                                                        Average                              Average
                                                       Interest          Rate                     Interest    Rate
                                           Average      Income/         Earned/         Average    Income/   Earned/
            (in thousands)                 Balance      Expense          Paid           Balance   Expenses    Paid
                                        ------------------------------------------------------------------------------
                                                                     (Annualized)                         (Annualized)
<S>                                         <C>            <C>         <C>              <C>         <C>        <C>
Assets
     Federal funds sold                         9,924         126        5.07              10,187       368      4.82
     Securities                                 2,047          29        5.62                 960        39      5.43
     Loans                                     29,577         689        9.32              14,234     1,041      9.75
     Purchased CD's                          $      -           -          -                  110         4      4.86
                                             ------------------------------------------------------------------------

Total Earning Assets/Total Interest            41,548         844        8.12              25,491     1,452       7.6
     Income

Cash and due from banks                         1,793                                       1,223
All other assets                                2,131                                       1,940
                                             --------                                     -------

Total Assets                                   45,472                                      28,654
                                             ========                                     =======

Liabilities and Stockholder's Equity
     NOW and money market accounts              4,581          38        3.29               2,660        73      3.67
     Savings deposits                             939           7        2.98                 560        12      2.86
     Time deposits                             28,114         385        5.48              14,910       594      5.31
                                             ------------------------------------------------------------------------

Total Interest Bearing Liabilities/Total       33,634         430        5.11              18,130       679      4.99
     Interest Expense

Noninterest bearing demand deposits             4,286                                       2,314
All other liabilities                             262                                         151
Stockholder's equity                            7,772                                       8,174
                                             --------                                     -------

Total Liabilities and Stockholder's
     Equity                                    45,954                                      28,769
                                             ========                                     =======

Net Interest Income                                           414                                       773
                                                          =======                                    ======


Net Interest Spread (Net Interest
     Income/Total Earning Assets)                                        3.95                                    4.05
                                                                       ======                                   =====
</TABLE>



                                      (14)
<PAGE>   15

The following table shows the rate sensitivity of the Corporation's interest
earning assets and interest bearing liabilities as of September 30, 1999. This
table displays the interest rate sensitivity gap (i.e., interest rate sensitive
assets less interest rate sensitive liabilities), cumulative interest rate
sensitivity gap. For the purposes of this table, an asset or liability is
considered rate sensitive within a specified period when it matures or could be
repriced within such period, generally according to its contractual terms.


<TABLE>
<CAPTION>
                                                     After Three     After One
                                         Within       Months But      Year But      After
                                          Three       Within One       Within        Five
                                         Months          Year        Five Years     Years        Total
                                       ------------  -------------- ------------- ----------- ------------
                                                                    (in thousands)

<S>                                      <C>              <C>          <C>          <C>         <C>
Interest Earning Assets
     Federal funds sold                      9,950               -             -           -        9,950
     Securities (1)                              -               -         1,993           -        1,993
     Loans                                  15,053           3,355        13,671       4,014       36,093
                                       -----------   -------------  ------------  ----------  -----------

Total                                       25,003           3,355        15,664       4,014       48,036
                                       ===========   =============  ============  ==========  ===========

Interest Bearing Liabilities
     NOW and money market
        accounts                             3,447             225         1,200         430        5,302
     Savings deposits                           54             162           810         594        1,620
     Jumbo time deposits/
        Time deposits $100,000               7,666          21,065         2,301           -       31,032
                                       -----------   -------------  ------------  ----------  -----------

Total                                       11,167          21,452         4,311       1,024       37,954
                                       ===========   =============  ============  ==========  ===========

(1) Securities in the "available for sale" category are reported in this table
at fair value

Interest rate sensitivity gap               13,836         (18,097)       11,353       2,990       10,082

Cumulative interest rate
   sensitivity gap                          13,836          (4,261)        7,092      10,082       10,082
</TABLE>



The Corporation is asset sensitive, a decrease in market interest rates will
adversely affect net interest income.


The preceding table indicates the time periods in which interest earning assets
and interest bearing liabilities will mature or may be repriced, generally
according to their contractual terms. However, this table does not necessarily
indicate the impact that general interest rate movements would have on the
Corporation's net interest yield, because the repricing of various categories of
assets and liabilities is discretionary and is subject to competitive and other
pressures. As a result, various assets and liabilities indicated as repricing
within the same period may, in fact, reprice at different times and by different
increments.


                                      (15)
<PAGE>   16

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         On July 21, 1999 the Company held its annual meeting of shareholders.
         At the meeting Messrs Balter, Blowers, Ferlito, Peleman, Shelton and
         Sumner were elected to the Company's Board of Directors.





                                     PART II
                                OTHER INFORMATION



ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

    Exhibit           Description
    27                Financial Data Schedule (EDGAR filing only)

(b) Reports on Form 8-K

    No reports on form 8-K have been filed during the quarter for which this
    report is filed.



                                   SIGNATURES

In accordance with the requirements of the Exchange Act the registrant caused
this report to be signed on its behalf by the undersigned, there onto duly
organized.

November 5, 1999                 Michigan Community Bancorp Limited


                                 By: /s/ David A. McKinnon
                                     --------------------------------------
                                     David A. McKinnon, President and Chief
                                     Executive Officer


                                 By: /s/ William L. Carley
                                     -------------------------------------------
                                     William L. Carley, Vice President and Chief
                                     Financial Officer


                                      (16)
<PAGE>   17



EXHIBIT INDEX

    Exhibit           Description
    -------           -----------
    27                Financial Data Schedule (EDGAR filing only)


                                      (17)