<PAGE>
                                   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 June 30, 2002

                                       OR

{ }   QUARTERLY REPORT PURSUANT TO SECTION 14 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)

                                 (586-532-8000)
              (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 June 30, 2002, the Registrant had 1,159,389 shares of Common Stock
  issued and outstanding.

  Transitional Small Business Disclosure Format (check one)

                                Yes       No   X
                                   -----     -----
<PAGE>
                          PART 1. FINANCIAL INFORMATION




ITEM 1.  FINANCIAL STATEMENTS


    The financial statements of Michigan Community Bancorp Limited, (the
"Corporation") include the consolidation of its subsidiaries; Lakeside Community
Bank and North Oakland Community Bank, collectively, (the "Banks").

    The following are the Corporation's Consolidated Balance Sheet as of June
30, 2002 and December 31, 2001, Consolidated Statements of Operations,
Comprehensive Income for the six months and quarter ended June 30, 2002 and
2001, and Cash Flow for the six months ended June 30, 2002 and 2001. These
unaudited financial statements are for interim periods, and do not include all
disclosures normally provided with annual financial statements. The interim
statements should be read in conjunction with the financial statements and
footnotes contained in the Corporation's Annual Report on Form 10KSB for the
fiscal year ended December 31, 2001.

    In the opinion of management, the interim statements referred to above
contain all adjustments (consisting of normal recurring items) necessary for a
fair presentation of the financial statements. The results of operations for
interim periods are not necessarily indicative of the results to be expected for
the full year.


















                                       2
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                           CONSOLIDATED BALANCE SHEET


<TABLE>
<CAPTION>
                                                                                     At
                                                                            ----------------------
                                                                            JUNE 30,   DECEMBER 31,
(in thousands)                                                               2002          2001
                                                                            -----------------------
<S>                                                                         <C>            <C>
ASSETS
Cash and due from banks                                                     $  4,136       $  2,338
Federal funds sold                                                             6,050          3,100
---------------------------------------------------------------------------------------------------
Cash and cash equivalents                                                     10,186          5,438
Securities available for sale, at fair value                                   4,053          5,031
Federal Home Loan Bank stock, at cost                                            143            108
Loans held for sale                                                             --            2,946
Loans                                                                         69,396         63,283
Allowance for loan losses                                                      1,461          1,398
---------------------------------------------------------------------------------------------------
Net loans                                                                     67,935         61,885
Premises and equipment, net                                                    1,051          1,189
Accrued interest receivable and other assets                                     916            700
---------------------------------------------------------------------------------------------------
Total assets                                                                $ 84,284       $ 77,297
===================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing deposits                                               $  9,719       $  3,739
Interest-bearing deposits                                                     66,663         65,799
---------------------------------------------------------------------------------------------------
Total deposits                                                                76,382         69,538
Interest payable and other liabilities                                           658            762
---------------------------------------------------------------------------------------------------
Total liabilities                                                             77,040         70,300

Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized, 20,833 shares
  issued and outstanding                                                         250           --
Common stock - stated value $5; authorized 9,000,000 shares, issued and
  outstanding 1,159,389 shares at June 30, 2002 and at
  December 31, 2001                                                            5,797          5,797
Capital surplus                                                                6,195          6,250
Accumulated deficit                                                           (5,024)        (5,108)
Accumulated other comprehensive income                                            26             58
---------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                     7,244          6,997
---------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                                  $ 84,284       $ 77,297
---------------------------------------------------------------------------------------------------
</TABLE>


                                       3



<PAGE>

                       MICHIGAN COMMUNITY BANCORP LIMITED
                          CONSOLIDATED INCOME STATEMENT

<TABLE>
<CAPTION>
                                                               SIX MONTHS ENDED           THREE MONTHS ENDED
                                                          --------------------------------------------------
(in thousands, except per share data)                              JUNE 30,                    JUNE 30,
                                                              2002         2001          2002         2001
                                                          --------------------------------------------------

<S>                                                       <C>          <C>           <C>          <C>
INTEREST INCOME
Interest on loans, including fees                         $    2,635   $    2,864    $    1,325   $    1,383
Interest on securities                                           101          170            46           86
Interest on federal funds sold                                    20          204            14           77
------------------------------------------------------------------------------------------------------------
Total interest income                                          2,756        3,238         1,385        1,546

INTEREST EXPENSE
Interest expense on deposits                                   1,037        1,855           509          869
------------------------------------------------------------------------------------------------------------
Total interest expense                                         1,037        1,855           509          869
------------------------------------------------------------------------------------------------------------
Net interest income                                            1,719        1,383           876          677
Provision for loan losses                                         96          475            78          425
------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses            1,623          908           798          252

NON INTEREST INCOME
Deposit account service charges                                   89           62            51           33
Other service charges and fees                                    27           49            15           17
Other                                                             35           19            18           18
------------------------------------------------------------------------------------------------------------
Total non interest income                                        151          130            84           68

NON INTEREST EXPENSE
Compensation and benefits                                        894          960           444          462
Occupancy and equipment                                          359          368           185          197
Marketing and business development                                42           90            26           36
Legal and professional                                           117          223            44          150
Outside processing                                               125          108            63           55
Other                                                            153          348           102          287
------------------------------------------------------------------------------------------------------------
Total non interest expense                                     1,690        2,097           864        1,187
Income (loss) before provision for federal income taxes           84       (1,059)           18         (867)
------------------------------------------------------------------------------------------------------------
Provision for federal income taxes                                 -            -             -            -
------------------------------------------------------------------------------------------------------------
Net income (loss)                                         $       84   $   (1,059)   $       18   $     (867)
============================================================================================================

Average shares outstanding                                 1,159,389      828,748     1,159,389      835,092
INCOME (LOSS) PER COMMON SHARE:
  Basic                                                   $     0.07   $    (1.28)   $     0.02   $    (1.04)
</TABLE>


                                       4

<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
           CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                                                                    Accumulated
                                                                                                      Other              Total
(In thousands)                                    Preferred   Common    Capital    Accumulated     Comprehensive     Shareholders'
                                                   Stock       Stock     Suplus      Deficit       (Loss) Income         Total
<S>                                               <C>        <C>        <C>        <C>             <C>              <C>
                                                  --------------------------------------------------------------------------------
BALANCE AT JANUARY 1, 2000                       $     --     3,780    $ 6,410     $(2,392)           $ (10)            $7,778
Private placement of stock (59,043 shares)                       295        155                                            450
Comprehensive loss:
   Net loss                                                                            (840)                              (840)
   Change in unrealized gain on
      securities available for sale                                                                       32                32
                                                                                                                  ----------------
   Total comprehensive loss                                                                                               (808)
----------------------------------------------------------------------------------------------------------------------------------
BALANCE AT DECEMBER 31, 2000                           --      4,075      6,565      (3,232)              22             7,430
Private placement of stock (34,228 shares)                       171         31                                            202
Public Rights Offering                                         1,551       (155)                                         1,396
Cost of rights offering                                                    (191)                                          (191)
Comprehensive loss:
   Net loss                                                                          (1,876)                            (1,876)
   Change in unrealized gain on
      securities available for sale                                                                       36                36
                                                                                                                  ----------------
   Total comprehensive loss                                                                                             (1,840)
----------------------------------------------------------------------------------------------------------------------------------
BALANCE AT DECEMBER 31, 2001                           --      5,797      6,250      (5,108)              58             6,997
Cost of rights offering from prior year                                     (55)                                           (55)
Private placement of stock (20,833 shares)            250                                                                  250
Comprehensive loss:
   Net income                                                                            84                                 84
   Change in unrealized loss on
      securities available for sale                                                                      (32)              (32)
                                                                                                                  ----------------
   Total comprehensive income                                                                                               52
----------------------------------------------------------------------------------------------------------------------------------
BALANCE AT JUNE 30, 2002                          $   250    $ 5,797    $ 6,195     $(5,024)           $  26            $7,244
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>




                                       5
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                     FOR THE SIX MONTHS ENDED
                                                                                    --------------------------
(in thousands)                                                                              JUNE 30,
                                                                                       2002           2001
                                                                                    --------------------------
<S>                                                                                 <C>            <C>
OPERATING ACTIVITIES
  Net income (loss)                                                                 $       84     $   (1,059)
  Adjustments to reconcile net loss to cash provided by operating activities:
     Depreciation and amortization                                                         141            142
     Provision for loan losses                                                              96            475
     Amortization (accretion) of securities                                                 46            (22)
     Decrease in loans held for sale                                                     2,946              -
     (Increase) decrease in interest receivable and other assets                          (216)            32
     Increase (decrease) in interest payable and other liabilities                        (104)           111
--------------------------------------------------------------------------------------------------------------
Total adjustments                                                                        2,909            738
--------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities                                      2,993           (321)

INVESTING ACTIVITIES
  Purchase of available-for-sale securities                                                  -         (1,506)
  Proceeds from maturities of available-for-sale securities                                900          1,000
  Net increase in loans                                                                 (6,146)        (1,495)
  Purchase of Federal Home Loan stock                                                      (35)            (5)
  Premises and equipment expenditures                                                       (3)           (17)
--------------------------------------------------------------------------------------------------------------
Net cash used in investing activities                                                   (5,284)        (2,023)

FINANCING ACTIVITIES
  Net change in deposits                                                                 6,844         (2,752)
  Proceeds from sale of preferred stock                                                    250              -
  Proceeds from (cost of) common stock offering                                            (55)           153
--------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities                                      7,039         (2,599)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents                                     4,748         (4,943)
Beginning cash and cash equivalents                                                      5,438         14,218
--------------------------------------------------------------------------------------------------------------
Ending cash and cash equivalents                                                    $   10,186     $    9,275
==============================================================================================================

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for:
  Interest                                                                          $    1,100     $    1,977
  Income taxes                                                                               -              -
</TABLE>



                                       6
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

SUMMARY OF CORPORATION

     Michigan Community Bancorp Limited (the "Corporation") was incorporated in
January 28, 1998 under Michigan law and is a bank holding company, owning all of
the outstanding common stock of Lakeside Community Bank ("Lakeside") and North
Oakland Community Bank ("North Oakland"), (collectively, the "Banks"). The Banks
were organized as a Michigan chartered bank with depository accounts insured by
the Federal Deposit Insurance Corporation (the "FDIC"). The Banks opened for
business on January 5, 1999.

     Lakeside Community Bank offers its banking services throughout Macomb
County, Michigan, but primarily in Clinton Township, Macomb Township, Ray
Township, Shelby Township, Washington Township, Mt. Clemens, Sterling Heights
and Utica. North Oakland Community Bank offers its banking services throughout
Oakland County, Michigan, but primarily in Rochester, Rochester Hills, Pontiac,
Troy, Auburn Hills, Oakland Township, Orion Township and Lake Orion Village.

     Our office and the office of Lakeside are located at 43850 Schoenherr Road,
Sterling Heights, Michigan 48313. The main office of North Oakland is located at
1467 North Rochester Road, Rochester Hills, Michigan 48307.


     The following discussion compares the financial condition of the
Corporation and its subsidiaries at June 30, 2002 and December 31, 2001, and the
results of operations for the six and three months ended June 30, 2002 and 2001.
This discussion should be read in conjunction with the financial statements and
statistical data presented elsewhere in this report. This report contains
forward-looking statements that can be identified by the use of the words
"anticipate", "believe", "expect", "plan", and similar expressions. These
forward-looking statements are not guarantees of future performance and involve
substantial 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 Corporation's actual results for future periods to differ materially from
those anticipated or projected. A list of the material risks of the Corporation
may be found under the caption "Risk Factors That May Effect Future Results" in
the Corporation's Annual Report on Form 10-KSB for the fiscal year ended
December 31, 2001.


FINANCIAL CONDITION

ASSETS

         The Corporation's total assets have increased by $7.0 million, to $84.3
million at June 30, 2002, compared with $77.3 million at December 31, 2001.

         Cash and cash equivalents, which include federal funds sold and
short-term investments, increased $4.7 million, or 87.3% to $10.2 million at
June 30, 2002, from $5.4 million at December 31, 2001. The increase was a result
of the net of increased deposits and securities which were either called or
matured.


                                       7

<PAGE>
         The following table shows the amortized cost and estimated fair value
of the Corporation's security portfolio as of the dates indicated. On the
balance sheet, securities available for sale are shown on the balance sheet at
estimated fair value.

<TABLE>
<CAPTION>
                                                                              JUNE 30, 2002
                                                     --------------------------------------------------------------
                                                                       GROSS            GROSS          ESTIMATED
                                                     AMORTIZED       UNREALIZED       UNREALIZED        MARKET
                                                       COST            GAINS            LOSSES           VALUE
                                                     --------------------------------------------------------------
<S>                                                  <C>                 <C>          <C>              <C>
U.S. Treasury securities and obligations of
U.S. Government corporations and agencies                 $4,027              $26     $      -            $4,053
                                                     ==============================================================
</TABLE>



<TABLE>
<CAPTION>
                                                                            DECEMBER 31, 2001
                                                     --------------------------------------------------------------
                                                                       GROSS            GROSS          ESTIMATED
                                                     AMORTIZED       UNREALIZED       UNREALIZED         MARKET
                                                       COST            GAINS            LOSSES           VALUE
                                                     --------------------------------------------------------------
<S>                                                  <C>                 <C>          <C>              <C>

U.S. Treasury securities and obligations of
U.S. Government corporations and agencies                 $4,973              $60     $     (2)           $5,031
                                                     ==============================================================
</TABLE>



         The amortized cost and estimated market of available-for-sale
securities at June 30, 2002, by contractual maturity are shown below. Expected
maturities will differ from contractual maturities because issuers may have the
right to call or prepay obligations with or without call or prepayment
penalties.


<TABLE>
<Caption>

                                                                   ESTIMATED
(000's omitted)                                 AMORTIZED            MARKET
                                                  COST               VALUE
                                               ------------------------------
<S>                                              <C>              <C>
Due in one year or less                              $1,518           $1,531
Due after one year through five years                 2,509            2,522
Due after five years through ten years                    -                -
-----------------------------------------------------------------------------
Total                                                $4,027           $4,053
=============================================================================
</TABLE>


         Investment securities with an amortized cost and market value of $2.5
million were pledged to secure the right to participate in the overnight federal
funds market and for lines of credit at the Federal Home Loan Bank of
Indianapolis.

         At June 30, 2002, the Banks had no loans classified as loans held for
sale, compared to $2.9 million at December 31, 2001. The Banks have spent time
on the secondary market infrastructure and therefore had an immaterial amount in
the pipeline at June 30, 2002. The fair value of the loans held for sale is
based on commitments on hand from investors or prevailing market prices. The
loans held for sale are subject to interest rate risk. If rates increase before
the loans are sold a loss may be recognized.




                                       8
<PAGE>
         At June 30, 2002 and December 31, 2001, respectively, the Corporation
had $68.0 million and $61.9 million in net loans. The following table shows the
breakdown into the various loan products as of June 30, 2002 and December 31,
2001.

<TABLE>
<CAPTION>
                                                               At
                                               ---------------------------------
(in thousands)                                     June 30,        December 31,
                                                      2002             2001
                                               ---------------------------------
<S>                                            <C>              <C>
Mortgage loans on real estate:
Residential 1-4 family                         $       6,890    $       5,200
Commercial                                            35,173            1,486
Construction                                           4,540            4,575
Equity lines of credit                                 3,095            3,100
-------------------------------------------------------------------------------
    Total mortgage loans                              49,698            4,361

Commercial loans                                      16,599            5,261
Consumer installment loans                             3,099            3,661
-------------------------------------------------------------------------------
    Total loans                                       69,396           63,283

Less allowance for possible loan losses               (1,461)          (1,398)
-------------------------------------------------------------------------------
Net loans                                      $      67,935    $      61,885
===============================================================================
</TABLE>



         The Banks maintain an allowance for loan losses believed to be
sufficient to absorb credit losses inherent in their loan portfolio. The
allowance for loan losses represents our estimate of probable losses in the
portfolio at each balance sheet date and is supported by all the relevant
information available to management. The allowance contains provisions for
probable losses that have been identified relating to specific borrowing
relationships as well as probable losses believed to be inherent in our loan
portfolio and credit undertakings that are not specifically identified. We
believe that the allowance for loan losses will be adequate to provide for
estimated probable credit losses inherent in our existing loan portfolio.

          At June 30, 2002 the allowance for loan losses was $1.5 million
compared to 1.3 million at June 30, 2001. Allowance for loan losses as a
percentage of total loans was 2.11% at June 30, 2002 and 1.98% as of June 30,
2001. During the six months ended June 30, 2002, provisions for loan losses
decreased $379,000 when compared to provisions made during the same period in
2001. Net charge offs for the six months ended June 30, 2002 and 2001 were
$33,000 and $42,000, respectively. During the calendar year 2001, management of
the Banks allocated increased amounts to the allowance for possible loan losses.
Based on the analysis of the June 30, 2002 loan portfolio, management believes
the provisions for the six months ended June 30, 2002 are adequate. The
following table shows an analysis of the allowance for possible loan losses.

<TABLE>
<CAPTION>
                                      SIX MONTHS ENDED      THREE MONTHS ENDED
                                   --------------------------------------------
                                            JUNE 30                JUNE 30
                                   --------------------------------------------
                                     2002         2001        2002      2001
                                   --------------------------------------------
<S>                                <C>         <C>         <C>        <C>
Balance beginning of period        $ 1,398     $   835     $ 1,407    $   844
Provision for loan losses               96         475          78        425
Charge-offs                            (34)        (42)        (25)        (1)
Recoveries                               1           -           1          -
--------------------------------------------------------------------------------
Net charge-offs                        (33)        (42)        (24)        (1)
--------------------------------------------------------------------------------
Balance end of period              $ 1,461     $ 1,268     $ 1,461    $ 1,268
================================================================================

Reserve as a percentage of loans      2.11%       1.98%

</TABLE>





                                       9

<PAGE>
         Nonperforming assets are made up of impaired loans in nonaccrual
status, loans past due 90 days or more and other repossessed assets. A loan is
considered impaired when, based on current information and events, it is
probable the Banks will be unable to collect the scheduled payment of principal
and interest when due according to the contractual terms of the loan agreement.

         As of June 30, 2002, there were four commercial loans totaling $1.1
million classified as nonaccrual loans. At December 31, 2001 there were eight
commercial loans for $1.2 million in a nonaccrual status. Management actively
manages the loan portfolio, seeking to identify and resolve problem assets at an
early stage.

NONPERFORMING ASSETS

<TABLE>
<CAPTION>

                                                            JUNE 30        DECEMBER 31,
                                                             2002              2001
                                                           -----------------------------
<S>                                                        <C>            <C>
NONACCRUAL LOANS
Commercial loans                                           $    1,058     $    1,215
Consumer loans                                                      -             77
----------------------------------------------------------------------------------------
Total nonaccrual loans                                          1,058          1,292

ACCRUING LOANS PAST DUE 90 DAYS OR MORE
Commercial loans                                                  299            248
Consumer loans                                                      -             18
----------------------------------------------------------------------------------------
Total accruing loans past due 90 days or more                     299            266
----------------------------------------------------------------------------------------
Total nonperforming loans                                       1,357          1,558

REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Commercial real estate owned                                      191
Other repossessed assets                                          116            176
----------------------------------------------------------------------------------------
Total nonperforming assets                                 $    1,664     $    1,734
========================================================================================
</TABLE>


         If the nonaccural loans shown in above had been paying in agreement
with their contractual terms, an additional $61,085 would have been recorded in
interest income during the six-month period ending June 30, 2002. Management
knows of no loans that have not been disclosed above that caused them to have
doubts about the ability of such borrowers to comply with the contractual loan
terms or which may have a material affect on the Corporation's balance sheet or
results of operations.

         The Banks' policies regarding non-accrual loans reflect the importance
of identifying troubled loans early. Consumer loans are normally charged off no
later than 120 days past due, or earlier if deemed uncollectible. Loans other
than consumer are generally placed on non-accrual status when management
determines that principal or interest may not be fully collectible, unless it is
fully collateralized and in the process of collection. Interest previously
accrued but not collected on non-accrual loans is charged against current
income. Income on such loans is then recognized only to the extent that cash is
received and where the future collection of principle is probable.

         Loan quality is continually monitored and is reviewed by management on
a monthly basis. Additions to the allowance for loan losses, which are charged
to earnings through the provision for loan losses, is determined based on a
variety of factors, including assessment of the credit risk of the portfolio,
analysis of individual loans via a loan review process, delinquent loans,
evaluation of current economic conditions in the market area, actual charge-offs
during the year





                                       10
<PAGE>
and historical loss experience. The unallocated portion of the reserve involves
the exercise of judgment by management and reflects various considerations,
including management's view that the reserve should have a margin that
recognizes the imprecision inherent in the process of estimating credit losses.

LIABILITIES

During the six months ended June 30, 2002, total deposits increased by $6.9
million, to $76.4 million compared to $69.5 at December 31, 2001. The increase
in deposits occurred in core deposits of demand deposits, NOW accounts, savings
and money markets in the amount of $3.2 million, an increase of $1.5 million in
certificates of deposits under $100,000 and an increase of $2.1 million in
certificates of deposits $100,000 and over. The following table shows the
breakdown into the various deposits products as of June 30, 2002 and December
31, 2001.

<TABLE>
<CAPTION>

                                                                      AT
                                                        --------------------------------
(in thousands)                                          JUNE 30,            DECEMBER 31,
                                                          2002                 2001
                                                        --------------------------------
<S>                                                     <C>                      <C>
Demand Deposits                                         $  9,719                 $3,739
NOW Accounts                                               2,708                  2,951
Money Market Deposits                                     15,367                 17,598
Savings Deposits                                           2,081                  2,359
Certificates of Deposit under $100,000                    27,153                 25,660
Certificates of Deposit $100,000 and over                 19,354                 17,231
-----------------------------------------------------------------------------------------
    Total deposits                                        76,382                 69,538
=========================================================================================
</TABLE>



CAPITAL AND LIQUIDITY

         The Corporation obtained its initial equity capital in an initial
public offering of its common stock in December 1998. The Corporation's plan of
operation for the next twelve months does not contemplate the need to raise
additional capital during that period. Management believes that its current
capital and liquidity will provide the Corporation with adequate capital to
support its expected level of deposit and loan growth and to otherwise meet its
cash and capital requirements for at least the next twelve months.

         During the first quarter of 2002 there was approximately $55,000 of
costs that were identified subsequent to December 31, 2001 related to the rights
offering that occurred in the fourth quarter of 2001.

         On May 3, 2002, the Corporation sold 20,834 shares of Series A
Preferred Stock, in a private offering, at a price of $12.00 per share. There
are 62,502 shares of common stock reserved for issuance upon the conversion of
the Series A Preferred Stock.

         Following are selected capital ratios for the Corporation as of the
dates indicated, along with the minimum regulatory requirement for each item. To
be considered a "well-capitalized" bank by the FDIC, the Corporation must have a
total risk-based capital ratio of at least 10%, a Tier 1 capital ratio of at
least 6%, a leverage ratio of at least 5% and must not be subject to any written
agreement from any regulatory agency requiring it to meet or maintain any
specific capital levels. As of June 30, 2002, the Banks are both considered well
capitalized.





                                       11

<PAGE>
<TABLE>
<CAPTION>
                                                                                To be adequately         To be well
Total risk based capital                                   Actual                 Capitalized            Capitalized
                                                           ------                 -----------            -----------
              (to risk-weighted assets)                 Amount     Ratio        Amount     Ratio      Amount      Ratio
                                                        ------     -----        ------     -----      ------      -----
<S>                                                     <C>        <C>          <C>        <C>        <C>         <C>
              Consolidated                              $7,069     10.0%        $5,679     8.0%       $7,099      10.0%
              Lakeside Community Bank                   $4,089     10.6%        $3,092     8.0%       $3,865      10.0%
              North Oakland Community Bank              $3,266     10.1%        $2,584     8.0%       $3,231      10.0%
</TABLE>



         The Corporation's sources of liquidity include loan payments by
borrowers, maturity and sales of securities available for sale, growth of
deposits and deposits equivalents, federal funds sold, and the issuance of
common stock. An additional source of liquidity, as the need arises, is
out-of-market or internet certificates of deposits. The out-of-market and
internet certificates of deposits usually require a higher interest rate and are
a more volatile source of liquidity. As of June 30, 2002 the Banks have $12.6
million in out-of-market certificates of deposits compared to $14.5 million at
December 31, 2001. Management is formulating plans to minimize the use of
out-of-market certificates of deposits in 2002. The Corporation had borrowing
capability on an unused line of credit with FHLB at June 30, 2002 of
approximately $500,000. Liquidity management involves the ability to meet the
cash flow requirements of the Banks' customers. These customers may be either
borrowers with credit needs or depositors wanting to withdraw funds.

         The liquidity of a bank allows it to provide funds to meet loan
requests, to accommodate possible outflows in deposits, and to take advantage of
other investment opportunities. Funding of loan requests, providing for
liability outflows, and managing interest rate margins require continuous
analysis to match the maturities of specific categories of loans and investments
with specific types of deposits and borrowings. Bank liquidity depends upon the
mix of the banking institution's potential sources and uses of funds. The major
sources of liquidity have been deposits, federal funds sold, loans which mature
within one year, and advances from the Federal Home Loan Bank of Indianapolis
("FHLB"). Our larger deposit balances, which might be more likely to fluctuate
in response to rate changes, are closely monitored. These deposits consist
mainly of certificates of deposit over $100,000.


RESULTS OF OPERATIONS

COMPARISON OF SIX MONTHS ENDED JUNE 30, 2002 TO SIX MONTHS ENDED JUNE 30, 2001:

         The Corporation reported a year to date 2002 net income of $84,000
($0.07 per share) compared to a net loss of $1,059,000 ($(1.28) per share) for
the six months ended June 30, 2001, representing an increase of 107% in year to
date comparisons. These earnings figures are record six-month earnings for
Michigan Community Bancorp Limited and its subsidiary banks, Lakeside Community
and North Oakland Community Bank since their inception in 1999.

Net interest income increased by 24.3% to $1.7 million for the six months ended
June 30, 2002 compared to $1.4 million for the same period ended June 30, 2001,
despite negative margin pressure arising from drops in the prime lending rate
during 2001. The net interest margin increased to 4.40% at June 30, 2002,
compared to 3.59% at June 30, 2001. The rate earned on interest earning assets
decreased by 1.38% from June 30, 2001 to 7.05% at June 30, 2002. The rate paid
on interest earning liabilities decreased by 2.52% from June 30, 2001 to 3.15%
at June 30, 2002. The decreases in both interest earned and interest paid are
primarily the result of the decreases in rates enacted by the Federal Reserve
throughout the year 2001. Emphasis on balance sheet management should enable the
Corporation to keep net interest income stable.


                                       12

<PAGE>
         The following table shows the Corporation's consolidated average
         balances of assets, liabilities, and stockholders' equity; the amount
         of interest income or interest expense and the average yield or rate
         for each major category of interest earning assets and interest bearing
         liabilities, and the net interest margin, for the six month periods
         ended June 30, 2002 and 2001.


<TABLE>
<CAPTION>
For the six months ended June 30,                               2002                                      2001
----------------------------------------------------------------------------------------------------------------------------------
                                                Average                       Average      Average                        Average
(in thousands)                                  Balance         Interest        Rate       Balance        Interest          Rate
                                                -------         --------------------       -------        -----------------------
<S>                                             <C>            <C>        <C>             <C>             <C>          <C>
Assets
Interest-bearing balances w/banks               $   133            $    1      1.50%      $    58          $    1           3.45%
Federal funds sold                                2,454                20      1.63%        8,158             204           5.00%
Securities                                        5,853               101      3.45%        5,449             168           6.17%
Loans, including fees                            69,700             2,634      7.56%       63,177           2,864           9.07%
                                                 ------            -----------------      -------          ----------------------
   Total earning assets/interest income          78,140             2,756      7.05%       76,842           3,237           8.43%

Cash and due from banks                           3,432                                     3,629
Allowance for loan losses                        (1,406)                                     (892)
Other assets                                      1,875                                     2,091
                                                -------                                   -------
   Total assets                                 $82,041                                   $81,670
                                                =======                                   =======

Liabilities and Equity
Interest-bearing demand and money markets       $17,574            $  129      1.47%      $16,069           $ 337           4.19%
Savings accounts                                  2,150                18      1.67%        1,159              17           2.93%
Time deposits less than $100,000                 26,354               588      4.46%       29,640             853           5.76%
Time deposits $100,000 and over                  19,716               302      3.06%       18,634             650           6.98%
                                                -------            -----------------      -------          ----------------------
   Total interest-bearing liabilities            65,794             1,037      3.15%       65,5O2           1,857           5.67%
   interest expense                             -------            -----------------      -------          ----------------------

Non-interest bearing demand deposits              8,534                                     8,322
Other liabilities                                   678                                       567
Shareholders' equity                              7,035                                     7,279
                                                -------                                   -------
   Total liabilities and shareholders'
   equity                                       $82,041                                   $81,670
                                                =======                                   =======
Net interest income                                                $1,719                                  $1,380
                                                                   ======                                  ======
Net interest spread                                                            3.90%                                        2.76%
                                                                              ======                                        =====
Net interest margin                                                            4.40%                                        3.59%
                                                                              ======                                        =====

</TABLE>



         The Corporation had an allowance for possible loan losses of 2.11% and
1.98% of total loans as of June 30, 2002 and 2001, respectively. The provision
for possible loan losses for the six months ended June 30, 2002 and 2001 was
$96,000 and $475,000, respectively.

         Noninterest income was $151,000 for the six months ended June 30, 2002
compared to $130,000 for the same period in 2001. The largest component of
noninterest income in 2002 is deposit account service charges, which comprised
58.9% of the six month total.

         Noninterest expense for the first six months of 2002 decreased by
$407,000 or 19.4%. The largest component of noninterest expense was compensation
and benefits, which totaled $894,000 and $960,000 for the six months ended June
30, 2002 and 2001, respectively. Salaries and benefits decreased by 6.9% when
comparing the six months ended June 30, 2002 and June 30, 2001. The component
making up the largest decrease in non-interest expense is the other non-interest
expense category. The category decreased by 56.0%, to $153,000 in the six months
ended June 30, 2002



                                       13




<PAGE>
from $348,000 for the same period of 2001. The primary item that contributed to
the decrease was the decision to exit the St Clair county project in 2001.
During the six months ended June 30, 2001, the Corporation determined that a
planned expansion into Algonac, Michigan was not economically feasible at that
time. In order to account for the development costs associated with this
abandoned project, the Corporation took a one-time charge of $270,000. Currently
the Corporation remains liable on a lease for the building at the proposed
project. Management has included in its expenditures an accrual of three months
rent related to remaining lease obligations it expects to pay as it pursues
options regarding lease termination or sublease of the building. The monthly
rent on the building is $3,750 per month during the first five-year period and
$4,125 for the last five-year period. The lease terminates on November 30, 2009.
The Corporation is currently exploring various options with the landlord
including subleasing the building.



COMPARISON OF THREE MONTHS ENDED JUNE 30, 2002 TO THREE MONTHS ENDED JUNE 30,
2001:

         The Corporation reported a second quarter 2002 net income of $18,000
($0.02 per share) compared to a net loss of $867,000 ($(1.04) per share) for the
second quarter ended June 30, 2001, representing an increase of 102% in
quarter-to-quarter comparisons. These earnings figures are all-time record
quarterly earnings figures for Michigan Community Bancorp Limited and its
subsidiary banks, Lakeside Community and North Oakland Community Bank since
their inception in 1999.

         Net interest income increased by 29.4% to $876,000 for the three months
ended June 30, 2002 compared to $677,000 for the three months ended June 30,
2001, despite negative margin pressure arising from drops in the prime lending
rate during 2001. Continued emphasis on balance sheet management should enable
the Corporation to keep net interest income stable.

         The Corporation had an allowance for possible loan losses of 2.11% and
1.98% of total loans as of June 30, 2002 and 2001, respectively. The provision
for possible loan losses for the three months ended June 30, 2002 and 2001 was
$78,000 and $425,000, respectively.

         Non-interest income was $84,000 for the three months ended June 30,
2002 compared to $68,000 for the same period in 2001. The largest component of
non-interest income in 2002 is deposit account service charges, which comprised
60.7% of the three month total.

         Non-interest expense for the three months ended June 30, 2002 decreased
by $323,000 or 27.2%. The largest component of non-interest expense was
compensation and benefits, which totaled $444,000 and $462,000 for the three
months ended June 30, 2002 and 2001, respectively. Compensation and benefits
decrease by 3.9% when comparing the three months ended June 30, 2002 and June
30, 2001. The largest component making up the decrease in non-interest expense
is the other non-interest expense category. The category decreased by 64.4%, to
$102,000 in the three months ended June 30, 2002 from $287,000 for the same
period of 2001. The primary item that contributed to the decrease was the
decision to exit the St Clair county project in 2001. During the six months
ended June 30, 2001, the Corporation determined that a planned expansion into
Algonac, Michigan was not economically feasible at that time. In order to
account for the development costs associated with this abandoned project, the
Corporation took a one-time charge of $270,000. Management has included in its
expenditures an accrual of three months rent related to remaining lease
obligations it expects to pay as it pursues options regarding lease termination
or sublease of the building. Currently the Corporation remains liable on a lease
for the building at the proposed project. The monthly rent on the building is
$3,750 per month during the first five-year period and $4,125 for the last
five-year period. The lease terminates on November 30, 2009. The Corporation is
currently exploring various options with the landlord including subleasing the
building.















                                       14
<PAGE>

                                     PART II
                                OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         As a depository of funds, the Banks may be named as a defendant in a
lawsuit (such as garnishment proceedings) involving claims to the ownership of
funds in particular accounts. All such litigation is incidental to the business
of the Banks. The following is a description of legal proceeding in which MCB is
named:


Roy W. Klecha, Jr. and Christine J. Klecha v Michigan Community Bancorp, Ltd

         This is a conversion, unjust enrichment, promissory estoppel, breach of
express and implied warranty, and intentional and innocent misrepresentation
case brought by Roy and Christine Klecha against Michigan Community Bancorp
filed on August 28, 2001 in the Circuit Court of St. Clair County Michigan (Case
No. D 01002373-CZ). Michigan Community Bancorp has filed a counterclaim against
Roy W. Klecha, Jr. for breach of fiduciary duty, breach of duties under
Michigan's Uniform Trade Secrets Act, tortious interference with business
expectancy, misappropriation, and breach of contract. In their complaint, the
Klechas are demanding $60,000, plus interest, costs and attorney fees. This
legal proceeding has been dismissed through a Stipulated Order of Dismissal
dated July 3, 2002 without any impact to the Corporation.

Daniel J. DuVernay, Joseph C. Fournier and Dennis Guiser v Michigan Community
Bancorp, Ltd

         This is an intentional misrepresentation, innocent misrepresentation,
statutory violations and unjust enrichment case brought by Daniel J. DuVernay,
Joseph C. Fournier and Dennis Guiser against Michigan Community Bancorp filed on
August 6, 2001 in the Circuit Court of St. Clair County Michigan (Case No. D
1002114). In their complaint, the Plaintiffs are demanding $140,000, plus
interest, costs and attorney fees. This legal proceeding has been dismissed
through a Stipulated Order of Dismissal dated July 3, 2002. A settlement
agreement was reach between the parties in June of 2002. Upon execution of this
agreement, Michigan Community Bancorp Limited will convey 25,454 shares of
freely tradable MCB stock. For one year, commencing with the issuance date, the
party will have the right to sell said shares on the stock market for not less
that $5.50 per share, net commissions. After said one-year period, any of the
shares that remain unsold will be repurchased by MCB for a purchase price of
$5.50 per share.


ITEM 4.  SUBMISSIONS OF MATTERS TO A VOTE OR SECURITY HOLDERS


     (a) Annual meeting of the shareholders of Michigan Community Bancorp
         Limited was held on June 10, 2002.

     (b) Election of directors to serve until the annual meeting of shareholders
         in 2005.

<TABLE>
<CAPTION>
                                     For        Against       Abstain       Non-vote

<S>                                 <C>         <C>           <C>           <C>
          Paul "Bud" E. Baltzer     829,784      7,920             0        321,685
          Frank D Blowers           828,984      8,720             0        321,685
          Robert R. Peleman         829,784      7,920             0        321,685
          Russell M. Shelton        832,984      4,720             0        321,685
</TABLE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (c) Exhibits
                  None

     (d) Reports on Form 8-K
                  None



                                       15
<PAGE>
                                   SIGNATURES


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



August 14, 2002                        Michigan Community Bancorp Limited

                                       By:  /s/ J. William Sumner
                                          ---------------------------
                                       J. William Sumner
                                       Chief Executive Officer

                                       By: /s/ Janet C. Smith
                                          ---------------------------
                                       Janet C. Smith
                                       CFO and Corporate Secretary



















                                       16
<PAGE>




                                 EXHIBIT INDEX
                                 -------------



EXHIBIT NO.                     DESCRIPTION
-----------                     -----------

99.1                            Certification of Chief Executive Officer

99.2                            Certification of Chief Financial Officer