<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 March 31, 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 March 31, 2002, the Registrant had 1,159,839 shares of Common Stock
issued and outstanding.

  Transitional Small Business Disclosure Format (check one)

                               Yes        No   X
                                   -----     -----


<PAGE>



                                     PART 1


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 (the "Banks").

    The following are the Corporation's Consolidated Balance Sheet as of March
31, 2002 and December 31, 2001, Consolidated Statements of Operations,
Comprehensive Income, and Cash Flow for the quarter ended March 31, 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.


<PAGE>


                       MICHIGAN COMMUNITY BANCORP LIMITED
                           CONSOLIDATED BALANCE SHEET


<TABLE>
<CAPTION>
                                                                                           At
                                                                              -----------------------------
                                                                              March 31,        December 31,
(in thousands)                                                                  2002              2001
                                                                              -----------------------------
<S>                                                                           <C>              <C>
ASSETS
Cash and due from banks                                                        $  7,917         $  2,338
Federal funds sold                                                                 --              3,100
-----------------------------------------------------------------------------------------------------------
Cash and cash equivalents                                                         7,917            5,438
Securities available for sale, at fair value                                      4,477            5,031
Federal Home Loan Bank stock, at cost                                               108              108
Loans Held for Sale                                                               4,229            2,946
Loans                                                                            67,036           63,283
Allowance for loan losses                                                         1,407            1,398
-----------------------------------------------------------------------------------------------------------
Net loans                                                                        65,629           61,885
Premises and equipment, net                                                       1,120            1,189
Accrued interest receivable and other assets                                        799              700
-----------------------------------------------------------------------------------------------------------
Total assets                                                                   $ 84,279         $ 77,297
===========================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Non-interest bearing deposits                                                  $  7,252         $  3,739
Interest-bearing deposits                                                        69,354           65,799
-----------------------------------------------------------------------------------------------------------
Total deposits                                                                   76,606           69,538
Interest payable and other liabilities                                              695              762
-----------------------------------------------------------------------------------------------------------
Total liabilities                                                                77,301           70,300
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized, 0 shares               --               --
  issued and outstanding
Common stock - stated value $5; authorized 9,000,000 shares, issued and
  outstanding 1,159,389 shares at March 31, 2002 and at
  December 31, 2001.                                                              5,797            5,797
Capital surplus                                                                   6,195            6,250
Accumulated deficit                                                              (5,042)          (5,108)
Accumulated other comprehensive income (loss)                                        28               58
-----------------------------------------------------------------------------------------------------------
Total Stockholders' Equity                                                        6,978            6,997
-----------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                                     $ 84,279         $ 77,297
===========================================================================================================
</TABLE>

<PAGE>

                       MICHIGAN COMMUNITY BANCORP LIMITED
                          CONSOLIDATED INCOME STATEMENT


<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED
                                                               -----------------------------
                                                                           MARCH 31,
(In thousands, expect share data)                                  2002              2001
                                                               -----------------------------
<S>                                                            <C>               <C>
INTEREST INCOME
Interest on loans, including fees                              $    1,310        $    1,481
Interest on securities                                                 56                84
Interest on federal funds sold                                          6               127
--------------------------------------------------------------------------------------------
Total interest income                                               1,372             1,692

INTEREST EXPENSE
Interest expense on deposits                                          529               986
--------------------------------------------------------------------------------------------
Total interest expense                                                529               986
--------------------------------------------------------------------------------------------
Net interest income                                                   843               706
Provision for loan losses                                              18                50
--------------------------------------------------------------------------------------------
Net interest income after provision for loan losses                   825               656

NON INTEREST INCOME
Deposit account service charges                                        38                29
Other service charges and fees                                         27                32
Other                                                                   2                 1
--------------------------------------------------------------------------------------------
Total non interest income                                              67                62

NON INTEREST EXPENSE
Compensation and benefits                                             450               498
Occupancy and equipment                                               174               171
Marketing and business development                                     16                54
Legal and professional                                                 73                73
Outside processing                                                     62                53
Other                                                                  51                61
--------------------------------------------------------------------------------------------
Total non interest expense                                            826               910
Income (loss) before provision for federal income taxes                66              (192)
--------------------------------------------------------------------------------------------
Provision for federal income taxes                                   --                --
--------------------------------------------------------------------------------------------
Net income (loss)                                              $       66        $     (192)
============================================================================================

Average common shares outstanding                               1,159,389           823,925

INCOME (LOSS) PER COMMON SHARE                                 $     0.06        $    (0.23)
</TABLE>


<PAGE>


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


<TABLE>
<CAPTION>
                                                                                          Accumulated
                                                                                             Other           Total
(In thousands)                                  Common          Capital      Accumulated  Comprehensive   Shareholders'
                                                 Stock          Surplus        Deficit    (Loss) Income      Equity
                                                 -----          -------        -------    -------------      ------
<S>                                         <C>             <C>            <C>           <C>             <C>
BALANCE AT JANUARY 1, 2000                     $  3,780        $  6,410       $(2,392)      $    (10)       $   7,788
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
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)
Comprehensive loss:
  Net income                                                                       66                              66
  Change in unrealized loss on
    securities available for sale                                                                (30)             (30)
                                                                                                           ------------
  Total comprehensive income                                                                                       36
-----------------------------------------------------------------------------------------------------------------------
BALANCE AT MARCH 31, 2002                      $  5,797        $  6,195       $(5,042)      $     28        $   6,978
=======================================================================================================================
</TABLE>

<PAGE>


                       MICHIGAN COMMUNITY BANCORP LIMITED
                      CONSOLIDATED STATEMENT OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                                     FOR THE THREE MONTHS ENDED
                                                                                     --------------------------
(In thousands)                                                                               MARCH 31,
                                                                                        2002           2001
                                                                                     --------------------------
<S>                                                                                  <C>              <C>
OPERATING ACTIVITIES
  Net income (loss)                                                                  $     66         $   (192)
  Adjustments to reconcile net loss to cash provided by operating activities:
    Depreciation and amortization                                                          25               70
    Provision for loan losses                                                              18               50
    Amortization (accretion) of securities                                                 51              (10)
    Increase in loans held for sale                                                    (1,283)
    Decrease (increase) in interest receivable and other assets                           (99)              22
    Decrease in interest payable and other liabilities                                    (67)             (79)
---------------------------------------------------------------------------------------------------------------
Total adjustments                                                                      (1,355)              53
---------------------------------------------------------------------------------------------------------------
Net cash used in operating activities                                                  (1,289)            (139)

INVESTING ACTIVITIES
  Purchase of available-for-sale securities                                              --             (1,006)
  Proceeds from maturities of available-for-sale securities                               500              500
  Net increase in loans                                                                (3,744)            (904)
  Premises and equipment expenditures                                                    --                (16)
---------------------------------------------------------------------------------------------------------------
Net cash used in investing activities                                                  (3,244)          (1,426)

FINANCING ACTIVITIES
  Net increase in deposits                                                              7,067              300
  Proceeds from (cost of) common stock offering                                           (55)             100
---------------------------------------------------------------------------------------------------------------
Net cash provided from financing activities                                             7,012              400
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents                                    2,479           (1,165)
Beginning cash and cash equivalents                                                     5,438           14,218
---------------------------------------------------------------------------------------------------------------
Ending cash and cash equivalents                                                     $  7,917         $ 13,053
===============================================================================================================

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for:
  Interest paid                                                                      $    595         $  1,026
</TABLE>


<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 March 31, 2002 and December 31, 2001, and
the results of operations for the quarter ended March 31, 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 March 31, 2002, compared with $77.3 million at December 31, 2001.

         Cash and cash equivalents, which include federal funds sold and
short-term investments, increased $2.5 million, or 45.6% to $7.9 million at
March 31, 2002, from $5.4 million at December 21, 2001. The increase was a
result of the net of increased deposits and loan growth.



<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>
                                                                     MARCH 31, 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          $4,449        $   33        $   (5)        $4,477
                                                  ====================================================

<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 March 31, 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                                          $     1,000        $   1,018
Due after one year through five years                                  3,449            3,459
Due after five years through ten years
----------------------------------------------------------------------------------------------
Total                                                            $     4,449        $   4,477
==============================================================================================
</TABLE>

         Investment securities with an amortized cost of $1.4 million and a
market value of $1.4 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 March 31, 2002, the Banks had $4.2 million in loans classified as
loans held for sale, compared to $2.9 million at December 31, 2001. 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.



<PAGE>


         At March 31, 2002 and December 31, 2001, respectively, the Corporation
had $71.3 million and $66.2 million in loans. The following table shows the
breakdown into the various loan products as of March 31, 2002 and December 31,
2001.

<TABLE>
<CAPTION>
                                                          AT
                                              ----------------------------
(in thousands)                                 MARCH 31,      DECEMBER 31,
                                                 2002             2001
                                              ----------------------------
<S>                                           <C>              <C>
Mortgage loans on real estate:
Residential 1-4 family                         $  5,018         $  5,200
Commercial                                       34,217           31,486
Construction                                      5,013            4,575
Equity lines of credit                            3,269            3,100
--------------------------------------------------------------------------
    Total mortgage loans                         47,517           44,361

Commercial loans                                 16,394           15,261
Consumer installment loans                        3,125            3,661
--------------------------------------------------------------------------
    Total loans                                  67,036           63,283

Less allowance for possible loan losses          (1,407)          (1,398)
--------------------------------------------------------------------------
Net loans                                      $ 65,629         $ 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 March 31, 2002 the allowance for loan losses was $1.4 million
compared to $844,000 at March 31, 2001. Allowance for loan losses as a
percentage of total loans was 2.10% at March 31, 2002 and 1.33% as of March 31,
2001. During the quarter, provisions for loan losses decreased $32,000 when
compared to provisions made during the same quarter in 2001. Net charge offs for
the three months ended March 31, 2002 and 2001 were $9,000 and $41,000,
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 March 31, 2002 loan portfolio, management believes the
provisions for the first quarter in 2002 are adequate. The following table shows
an analysis of the allowance for possible loan losses.

<TABLE>
<CAPTION>
                                                 MARCH 31,
                                        --------------------------
                                          2002             2001
                                        --------------------------
<S>                                     <C>              <C>
Balance beginning of year               $ 1,398          $   835
Provision for loan losses                    18               50
Charge-offs                                  (9)             (41)
Recoveries                                  --
------------------------------------------------------------------
Net charge-offs                              (9)             (41)
------------------------------------------------------------------
Balance end of year                     $ 1,407          $   844
==================================================================

Reserve as a percentage of loans           2.10%            1.33%
</TABLE>



<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 March 31, 2002, there were six commercial loans totaling $1.2
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>
                                                     MARCH 31,   DECEMBER 31,
                                                       2002          2001
                                                     ------------------------
<S>                                                  <C>              <C>
Nonaccrual loans
Commercial loans                                     $1,193           $1,215
Consumer loans                                           77               77
-----------------------------------------------------------------------------
Total nonaccrual loans                                1,270            1,292

Accruing loans past due 90 days or more
Commercial loans                                      1,114              248
Consumer loans                                         --                 18
-----------------------------------------------------------------------------
Total accruing loans past due 90 days or more         1,114              266
-----------------------------------------------------------------------------
Total nonperforming loans                             2,384            1,558

Other repossessed assets                                156              176
-----------------------------------------------------------------------------
Total nonperforming assets                           $2,540           $1,734
=============================================================================
</TABLE>

         If the loans shown above had been paying in agreement with their
contractual terms, an additional $30,143 would have been recorded in interest
income during the first quarter of 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 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 three months ended March 31, 2002, total deposits increased
by $7.1 million, to $76.6 million. A large portion of the increase in deposits
occurred in core deposits of demand deposits and money market accounts.


<PAGE>


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.

         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 March 31, 2002, the Banks are both considered
well capitalized.

<TABLE>
<CAPTION>
As of March 31, 2002:                                                            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                               $     7,031        9.8%   $   5,761        8.0%     $  7,202      10.00%
        Lakeside Community Bank                    $     4,558       11.3%   $   3,221        8.0%     $  4,026      10.00%
        North Oakland Community Bank               $     3,584       11.3%   $   2,537        8.0%     $  3,171      10.00%
</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 March 31, 2002 the Banks have $11.9
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 March 31, 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.





<PAGE>

RESULTS OF OPERATIONS

         The Corporation reported first quarter 2002 net income of $66,000
($0.06 per share) compared to a net loss of $192,000 ($(0.23) per share) for the
quarter ended March 31, 2001, representing an increase of 135% 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 19.4% to $843,000 for the quarter
ended March 31, 2002 compared to $706,000 for the quarter ended March 31, 2001,
despite negative margin pressure arising from drops in the prime lending rate
during 2001. The net interest margin increased to 4.46% at March 31, 2002,
compared to 3.66% at March 31, 2001. The rate earned on interest earning assets
decrease from March 31, 2001 by 1.51% to 7.27% at March 31, 2002. The rate paid
on interest earning liabilities decrease from March 31, 2002 by 2.68% to 3.31%
at March 31, 2001. 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. 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 three month
periods ended March 31, 2002 and 2001.

Net Interest Income
Average Balances, Interest Income/Expense, Average Rates

<TABLE>
<CAPTION>
For the quarter ended March 31,                                            2002                                2001
-----------------------------------------------------------------------------------------------------------------------------------
(in thousands)                                                 Average               Average    Average                    Average
                                                               Balance   Interest     Rate      Balance       Interest       Rate
                                                               -------   --------     ----      -------       --------       ----
<S>                                                          <C>         <C>        <C>        <C>            <C>         <C>
Assets
Interest-bearing balances w/banks                            $    145     $    3      8.28%     $    47        $    1       8.51%
Federal funds sold                                              1,370          6      1.75%       9,208           127       5.52%
Securities                                                      4,992         53      4.25%       5,231            82       6.27%
Loans, including fees                                          69,014      1,310      7.59%      62,640         1,482       9.46%
                                                             --------     -----------------     -------        ------------------
    Total earning assets/interest income                       75,521      1,372      7.27%      77,126         1,692       8.78%

Cash and due from banks                                         3,493                             3,591
Allowance for loan losses                                      (1,382)                             (808)
Other assets                                                    1,888                             2,087
                                                             --------                           -------
    Total assets                                             $ 79,520                           $81,996
                                                             ========                           =======
Liabilities and Equity
Interest-bearing demand and money markets                    $ 17,672     $   65      1.47%     $15,610        $  187       4.79%
Savings accounts                                                2,225          9      1.62%       1,219             9       2.95%
Time deposits less than $100,000                               26,023        300      4.61%      30,197           485       6.42%
Time deposits $100,000 and over                                18,083        155      3.43%      18,771           305       6.50%
                                                             --------     -----------------     -------        ------------------
    Total interest-bearing liabilities interest expense        64,003        529      3.31%      65,797           986       5.99%
                                                             --------     -----------------     -------        ------------------

Non-interest bearing demand deposits                            7,868                             8,101
Other liabilities                                                 701                               690
Shareholders' equity                                            6,948                             7,408
                                                             --------                           -------
    Total liabilities and shareholders'
    equity                                                   $ 79,520                           $81,996
                                                             ========                           =======
Net interest income                                                       $  843                               $  706
                                                                          ======                               ======
Net interest spread                                                                   3.96%                                 2.78%
                                                                                      ====                                  ====
Net interest margin                                                                   4.46%                                 3.66%
                                                                                      ====                                  ====
</TABLE>


<PAGE>




         The Corporation had an allowance for possible loan losses of 2.10% and
1.33% of total loans as of March 31, 2002 and 2001, respectively. The provision
for possible loan losses for the three months ended March 31, 2002 and 2001 was
$18,000 and $50,000, respectively.

         Non-interest income increased by 8.1% to $67,000 for the three months
ended March 31, 2002 compared to $62,000 for the same period in 2001. The
largest component of non-interest income in 2002 is deposit account service
charges, which comprised 56.7% of the three month total.

         Non-interest expense for the first three months of 2002 decreased by
$84,000 or 9.2%. The largest component of non-interest expense, salaries and
benefits, decreased 9.6% to $450,000 for the quarter-ended March 31, 2002,
compared to $498,000 for the quarter ended March 31, 2001. Additionally,
marketing and business development expenses decreased 70.4% to $16,000 for the
three months ended March 31, 2002, compared to $54,000 for the same period in
2001.


                                     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 are descriptions 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. Currently, the case is in the discovery
    phase, with limited discovery having taken place.

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. Currently, the case is in the discovery
phase, with limited discovery having taken place. As of today, no trial date has
been set.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


(a)      Exhibits

                  None

(b)      Reports on Form 8-K

                  None

<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.



May 14, 2002                          Michigan Community Bancorp Limited


                                      By:  /s/ Frank F. Blowers
                                      ---------------------------------------
                                      Frank F. Blowers
                                      President and Chief Operations Officer

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