<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

  (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, 2003

                                       OR

{x} TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

    For the transition period from _____________ to _________________

                           Commission File No. 0-25079

                       MICHIGAN COMMUNITY BANCORP LIMITED
      (Exact name of small business 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 and zip code)

                                 (586) 532-8000
                         (Registrant's telephone number)

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 August 13, 2003 the Registrant had 1,184,843 shares of Common Stock issued
and outstanding.

Transitional Small Business Disclosure Format (check one)

                            Yes        No   X
                                ------    -----
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED

                                TABLE OF CONTENTS

<TABLE>
<S>      <C>                                                                                <C>
Part I - FINANCIAL INFORMATION

Item 1.  Financial Statements ..............................................................3

         Consolidated statements of financial condition at June 30, 2003
                  (unaudited) and December 31, 2002 ........................................3

         Consolidated statements of operations (unaudited) for the three and six month
                          periods ended June 30, 2003 and 2002 .............................4

         Consolidated statements of changes in stockholders' equity (unaudited) for
                          the six month period ended June 30, 2003 .........................5

         Consolidated statements of cash flows (unaudited) for the six month periods
                  ended June 30, 2003 and 2002 .............................................6

         Notes to consolidated financial statements ........................................7

Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations ................................................9

Item 3.  Controls and Procedures ..........................................................18

Part II - OTHER INFORMATION

Item 1.  Legal Proceedings ................................................................19

Item 4.  Submission of Matters to a Vote of Security-Holders ..............................19

Item 5.  Other Information ................................................................19

Item 6.  Exhibits and Reports on Form 8-K..................................................22

Signatures ................................................................................23
</TABLE>




                                       2
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


<TABLE>
<CAPTION>

                                                                                 JUNE 30,    DECEMBER 31,
($ in thousands)                                                                   2003          2002
                                                                                -------------------------
                                                                                (UNAUDITED)
<S>                                                                               <C>           <C>
ASSETS
Cash and due from banks                                                           $  5,255      $  2,829
Federal funds sold                                                                   2,950             -
Interest bearing deposits in bank                                                       44           647
                                                                                  --------      --------
Total cash and cash equivalents                                                      8,249         3,476
Available-for-sale securities                                                          981           996
Federal Home Loan Bank stock, at cost                                                   92            93
Loans held for sale                                                                  1,339         2,188
Loans                                                                               33,674        37,616
Less allowance for loan losses                                                         937         1,049
                                                                                  --------      --------
Net loans                                                                           32,737        36,567
Premises and equipment, net                                                            548           628
Interest receivable and other assets                                                   772           208
Assets held for sale (See Note C)                                                   32,095        34,222
                                                                                  --------      --------
Total assets                                                                      $ 76,813      $ 78,378
                                                                                  ========      ========


LIABILITIES AND STOCKHOLDERS' EQUITY

Noninterest-bearing deposits                                                      $  8,530      $  2,621
Interest-bearing deposits                                                           33,030        37,536
                                                                                  --------      --------
Total deposits                                                                      41,560        40,157
Borrowings                                                                               -           800
Interest payable and other liabilities                                                 518           603
Liabilities held for sale (See note C)                                              28,982        31,179
                                                                                  --------      --------
Total liabilities                                                                   71,060        72,739
Common stock subject to redemption (25,454 shares)                                     141           141
Stockholders' equity:
Preferred stock - stated value $12; authorized 1,000,000 shares, 20,834 shares
  issued and outstanding at June 30, 2003 and December 31, 2002                        250           250
Common stock - stated value $5; authorized 9,000,000 shares, 1,184,843 shares
  issued and outstanding at June 30, 2003 and December 31, 2002                      5,797         5,797
Additional paid-in capital                                                           6,195         6,195
Accumulated deficit                                                                 (6,679)       (6,797)
Accumulated other comprehensive income                                                  49            53
                                                                                  --------      --------
Total stockholders' equity                                                           5,612         5,498
                                                                                  --------      --------
Total liabilities and stockholders' equity                                        $ 76,813      $ 78,378
                                                                                  ========      ========
</TABLE>



See notes to consolidated financial statements.


                                       3
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                              SIX MONTHS ENDED               THREE MONTHS ENDED
                                                        --------------------------      --------------------------
                                                         JUNE 30,        JUNE 30,        JUNE 30,        JUNE 30,
($ in thousands, except per share data)                    2003            2002            2003            2002
                                                        ----------     -----------      ----------     -----------

<S>                                                     <C>            <C>              <C>            <C>
INTEREST INCOME
Interest and fees on loans                              $    1,309     $     1,491      $      643     $       756
Interest on securities                                          16              43               7              21
Interest on federal funds sold                                  10              10               8               7
                                                        ----------     -----------      ----------     -----------
Total interest income                                        1,335           1,544             658             784

INTEREST EXPENSE
Interest expense on deposits                                   509             599             242             292
                                                        ----------     -----------      ----------     -----------
Net interest income                                            826             945             416             492
Provision for loan losses                                       53              45              23              45
                                                        ----------     -----------      ----------     -----------
Net interest income after provision for loan losses            773             900             393             447

NONINTEREST INCOME
Service charges on deposits                                    155              63              94              36
Gain on sale of loans                                          145              31              72              16
Other service charges and fees                                  18              17               9              10
Other                                                           23               4              14               2
                                                        ----------     -----------      ----------     -----------
Total noninterest income                                       341             115             189              64

NONINTEREST EXPENSE
Salaries and employee benefits                                 535             559             259             285
Occupancy and equipment                                        203             243              74             126
Professional fees                                               95              74              50              22
Data processing fee                                             92              82              50              43
Other                                                          123             144              73             100
                                                        ----------     -----------      ----------     -----------
Total noninterest expense                                    1,048           1,102             506             576
                                                        ----------     -----------      ----------     -----------
Net income (loss) from continuing operations                    66             (87)             76             (65)
Net income from discontinued operations (Note C)                52             171               7              83
                                                        ----------     -----------      ----------     -----------
Net income                                              $      118     $        84      $       83     $        18
                                                        ==========     ===========      ==========     ===========

Average common shares outstanding                        1,184,843       1,159,389       1,184,843       1,159,389
NET (LOSS) INCOME PER COMMON SHARE:
    Basic and fully diluted
    Continuing operations                               $     0.06     $     (0.08)     $     0.06     $     (0.05)
    Discontinued operations                                   0.04            0.15            0.01            0.07
                                                        ----------     -----------      ----------     -----------
    Net income per common share                         $     0.10     $      0.07      $     0.07     $      0.02
                                                        ==========     ===========      ==========     ===========
</TABLE>


See notes to consolidated financial statements.







                                       4
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                 CONSOLIDATED STATEMENTS IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)



<TABLE>
<CAPTION>
                                                                                                       Accumulated        Total
                                                                         Additional                       Other       Shareholders'
($ in thousands)                                  Preferred   Common      Paid-In      Accumulated    Comprehensive       Equity
                                                  ---------   ------     ----------    -----------   --------------   -------------

<S>                <C>                            <C>         <C>        <C>           <C>            <C>             <C>
BALANCE AT JANUARY 1, 2003                        $    250    $ 5,797    $  6,195      $   (6,797)    $         53    $      5,498
Comprehensive income:
  Net income                                                                                  118                              118
  Change in unrealized gain on available-for-
    sale-securities                                                                                             (4)             (4)
                                                                                                                      ------------
Total comprehensive income                                                                                                     114
                                                  --------    -------    --------      ----------     ------------    ------------
BALANCE AT JUNE 30, 2003                          $    250    $ 5,797    $  6,195      $   (6,679)    $         49    $      5,612
                                                  ========    =======    ========      ==========     ============    ============
</TABLE>


See notes to consolidated financial statements.


                                       5
<PAGE>
                       MICHIGAN COMMUNITY BANCORP LIMITED
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                    SIX MONTHS ENDED
                                                                                                 ---------------------
($ in thousands)                                                                                 JUNE 30,     JUNE 30,
                                                                                                   2003         2002
                                                                                                 --------     --------
<S>                                                                                              <C>          <C>
OPERATING ACTIVITIES
  Net income                                                                                     $   118      $    84
  Adjustments to reconcile net income to net cash provided by (used in) operating activities:
    Depreciation and amortization                                                                     80           85
    Provision for loan losses                                                                         53           30
    (Accretion) amortization of securities                                                            (4)         (32)
    Decrease (increase) in loans held for sale                                                       849        1,048
    Increase in interest receivable and other assets                                                (564)        (243)
    Decrease in interest payable and other liabilities                                               (85)           2
                                                                                                 -------      -------
Net cash provided by operating activities                                                            447          974

INVESTING ACTIVITIES
 Disposals (Purchases) of available-for-sale securities                                               15       (1,110)
  Sale of Federal Home Loan Bank stock                                                                 1           16
  Net decrease (increase) in loans                                                                 3,777       (2,050)
  Change in net assets of discontinued operations held for sale                                      (70)         (32)
                                                                                                 -------      -------
Net cash provided by (used in) investing activities                                                3,723       (3,176)

FINANCING ACTIVITIES
  Decrease in borrowings                                                                            (800)           -
  Net (decrease) increase in deposits                                                              1,403        3,163
  Sale of preferred stock                                                                              -          250
  Cost of common stock offering                                                                        -          (55)
                                                                                                 -------      -------
Net cash provided by financing activities                                                            603        3,358
                                                                                                 -------      -------
Net increase cash and cash equivalents                                                             4,773        1,156
Cash and cash equivalents, beginning of period                                                     3,476        3,039
                                                                                                 -------      -------
Cash and cash equivalents, end of period                                                         $ 8,249      $ 4,195
                                                                                                 =======      =======

SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
  Interest                                                                                       $   541      $   607
</TABLE>







                                       6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MICHIGAN COMMUNITY BANCORP LIMITED

SIX MONTHS ENDED JUNE 30, 2003


NOTE A - BASIS OF PRESENTATION

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

    The unaudited financial statements as noted in the table of contents 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 consolidated financial statements and footnotes contained
in the Corporation's Annual Report on Form 10-KSB for the year ended December
31, 2002.

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

NOTE B - EARNINGS PER SHARE

     Earnings per share are calculated on the basis of the weighted average
number of shares outstanding. The weighted average shares outstanding were
1,184,843 for the six month period ended June 30, 2003 and 1,159,839 for the six
month period ended June 30, 2002.

NOTE C - DISCONTINUED OPERATIONS

    During the first quarter of 2003 the Board of Directors authorized the sale
of North Oakland Community Bank. This decision was the result of North Oakland's
past operating performance and the need to improve Lakeside Bank's capital
position. A definitive agreement to purchase substantially all of the assets and
liabilities of North Oakland has been entered into, subject to regulatory
approval. As a result, the assets and liabilities North Oakland Community Bank
are presented as held-for-sale on the accompanying consolidated balance sheets
and its operations are reported as discontinued on the accompanying consolidated
statements of operations, in accordance with the provisions of Statement of
Financial Accounting Standards (SFAS) No. 144.

    Major components of assets and liabilities held for sale (in thousands) as
of June 30, 2003 and December 31, 2002 are as follows:

<TABLE>
<CAPTION>
                                                           2003        2002
                                                           ----        ----
<S>                                                     <C>          <C>
                  ASSETS
                  Investments                           $  7,930     $  4,026
                  Loans, net                              23,612       28,023
                  Other                                      553          781
</TABLE>




                                       7
<PAGE>

<TABLE>
<S>                                                     <C>          <C>

                  LIABILITIES
                  Deposits                               28,835      30,991
                  Other                                     147         188
</TABLE>

    Summarized results of operations for the six months ended June 30, 2003 and
2002 are as follows:


<TABLE>
<CAPTION>
                                                          2003        2002
                                                          ----        ----
<S>                                                     <C>          <C>
                  Interest and fee income                $ 1,001     $ 1,228
                  Interest expense                           362         455
                                                         -------     -------
                           Net interest margin           $   639     $   773
                           Provision for loan losses     $    53          51
                           Other income                       49          36
                           Operating expenses                583         587
                                    Net income                52         171
</TABLE>


    As of June 30, 2003 North Oakland's total risk-based capital ratio was
13.26%. Tier one risk-based capital was 11.99% and leverage ratio was 9.28%. At
June 30, 2003 North Oakland was considered well-capitalized by the FDIC.

NOTE D - RECENT ACCOUNTING PRONOUNCEMENTS

    In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities," which is effective for exit or disposal
activities that are initiated after December 31, 2002. This Statement addresses
financial accounting and reporting for costs associated with exit or disposal
activities and nullifies Emerging Issues Task Force (EITF) Issue No. 94-3,
"Liability Recognition for Certain Employee Termination Benefits and Other Costs
to Exit an Activity (including Certain Costs Incurred in a Restructuring)." SFAS
No. 146 requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred. Under Issue EITF 94-3, a
liability for an exit cost as defined in Issue 94-3 was recognized at the date
of an entity's commitment to an exit plan. It is not expected that the
provisions of SFAS No. 146, taken together with SFAS No. 144 (Note C) will have
a material impact on the net financial position or results of operations of the
Corporation. The Corporation expects to sell North Oakland Community Bank for an
amount in excess of its net book value.

    In November 2002, the FASB issued Interpretation No. 45 (FIN 45),
"Guarantor's Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others," which addresses the disclosure
to be made by a guarantor in its interim and annual financial statements about
its obligations under guarantees. FIN 45 requires the guarantor to recognize a
liability for the non-contingent component of the guarantee, this is the
obligation to stand ready to perform in the event that specified triggering
events or conditions occur. The initial measurement of this liability is the
fair value of the guarantee at inception. The recognition of the liability is
required even if it is not probable that payments will be required under the
guarantee or if the guarantee was issued with a premium payment or as part of a
transaction with multiple events. The initial recognition and measurement
provisions are effective for all guarantees within the scope of FIN 45 issued or
modified after December 31, 2002. The impact of adoption is not expected to have
a significant impact on the Corporation's financial reporting.

    In December 2002, the FASB issued SFAS 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure - an Amendment of FASB Statement No.
123", which is effective for years ending after December 15, 2002. This
Statement amends FASB SFAS 123, "Accounting for Stock-Based Compensation," to
provide alternative methods of transition for a voluntary change to the fair
value based method of accounts for stock-based employee compensation. In
addition, this Statement amends the disclosure requirements of Statement No. 123
to require prominent disclosure in both annual and interim financial statements
about the method of accounting for stock-based employee compensation and the
effect of the method used on





                                       8
<PAGE>
reported results. Implementation of SFAS No. 148 will not have an impact on the
Corporation's financial position or results of operations.


    In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable interest Entities, an interpretation of ARB No. 51." This
Interpretation addresses the consolidation by business enterprises of variable
interest entities as defined in the Interpretation. The Interpretation applies
immediately to variable interests in variable interest entities created after
January 31, 2003, and to variable interests in variable interest entities
obtained after January 31, 2003. The adoption of this standard did not have an
affect on the Corporation's financial position or results of operations.

     In April 2003 the FASB issued SFAS No. 149 which amends and clarifies
financial accounting and reporting for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities
under SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." This statement clarifies under what circumstances a contract with
an initial net investment meets the characteristic of a derivative discussed in
paragraph 6(b) of SFAS No. 133, clarifies when a derivative contains a financing
component, amends the definition of an underlying to conform to language used in
FASB Interpretation No. 45, and amends certain other existing pronouncements.
This statement is effective for contracts entered into or modified after June
30, 2003. It is not expected that the provisions of Statement No. 149 will have
a material impact on the financial position or results of operations of the
Corporation.

     In May 2003 the FASB issued SFAS No. 150, which establishes standards for
how an issuer classifies and measures certain financial instruments with
characteristics of both liabilities and equity. It requires that an issuer
classify a financial instrument that is within its scope as a liability (or an
asset in some circumstances). This statement is effective for financial
instruments entered into or modified after May 31, 2003, and otherwise is
effective at the beginning of the first interim period beginning after June 15,
2003. It is to be implemented by reporting the cumulative effect of a change in
accounting principle for financial instruments created before the issuance date
of the Statement and still existing at the beginning of the interim period of
adoption. It is not expected that the provisions of Statement No. 150 will have
a material impact on the financial position of the Corporation.

NOTE E - RECLASSIFICATION

    Certain prior period amounts have been reclassified to conform with the
current period presentation.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
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"). Lakeside and North Oakland were
organized as Michigan chartered banks 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




                                       9
<PAGE>
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.

     The Corporation's 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.



CRITICAL ACCOUNTING POLICIES

     The Corporation's significant accounting policies are set forth in Note 1
of the Consolidated Financial Statements for the year ended December 31, 2002.
Of these significant accounting policies, the Corporation considers its policy
regarding the allowance for loan losses to be its most critical accounting
policy. The allowance for loan losses requires management's most subjective and
complex judgment. Changes in economic conditions can have a significant impact
on the allowance for loan losses and therefore the provision for loan losses and
results of operations. The Corporation has developed appropriate policy and
procedures for assessing the adequacy of the allowance for loan losses,
recognizing that this process requires a number of assumptions and estimates
with respect to its loan portfolio. The Corporation's assessments may be
impacted in future periods by changes in economic conditions, the impact of
regulatory examinations, and the discovery of information with respect to
borrowers which is not known to management at the time of the issuance of the
consolidated financial statements. For additional discussion concerning the
Corporation's allowance for loan losses and related matters, see information on
the provision for loan losses and allowance for loan losses under assets.

     The following discussion compares the financial condition of the
Corporation and Lakeside (continuing operations) at June 30, 2003 and December
31, 2002, and the results of operations for the six month periods ended June 30,
2003 and 2002. North Oakland's assets and liabilities are classified as held for
sale (Refer to Note C). 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
Affect Future Results" in the Corporation's Annual Report on Form 10-KSB for the
year ended December 31, 2002.

FINANCIAL CONDITION

CONTINUING OPERATIONS

ASSETS

     The Corporation's total assets have decreased by $1.6 million, to $76.8
million at June 30, 2003, compared with $78.4 million at December 31, 2002.

     Cash and cash equivalents, which include federal funds sold and short-term
investments, increased $4.7 million to $8.2 million at June 30, 2003 from $3.5
million at December 31, 2002. The increase was primarily the result of the
increase in federal funds sold and cash and due from banks offset by a decrease
in interest bearing deposits as of June 30, 2003.




                                       10
<PAGE>
     The following table shows the amortized cost and estimated fair value of
the Corporation's security portfolio as of the dates indicated.
Available-for-sale securities are shown on the balance sheet at estimated fair
value.





<TABLE>
<CAPTION>
                                                                         JUNE 30, 2003
                                                    ----------------------------------------------------
($ in thousands)                                                     GROSS           GROSS
                                                    AMORTIZED      UNREALIZED      UNREALIZED      FAIR
                                                      COST           GAINS           LOSSES        VALUE
                                                    ---------      ----------      ----------      -----
<S>                                                 <C>            <C>             <C>           <C>
U. S. Treasury securities and obligations of
  U. S. Government corporations and agencies         $  715          $  4            $    -        $ 719
Corporate Bonds                                         259             3                 -          262
                                                     ------          ----            ------        -----
Total                                                $  974          $  7            $    -        $ 981
                                                     ======          ====            ======        =====
</TABLE>


<TABLE>
<CAPTION>
                                                                       DECEMBER 31, 2002
                                                    -----------------------------------------------------
($ in thousands)                                                     GROSS           GROSS
                                                    AMORTIZED      UNREALIZED      UNREALIZED      FAIR
                                                      COST           GAINS           LOSSES        VALUE
                                                    ---------      ----------      ----------      -----
<S>                                                 <C>            <C>             <C>           <C>
U. S. Treasury securities and obligations of
  U. S. Government corporations and agencies         $  727          $   3           $    -        $ 730
Corporate Bonds                                         264              2                -          266
                                                     ------          -----           ------        -----
Total                                                $  991          $   5           $    -        $ 996
                                                     ======          =====           ======        =====
</TABLE>



The amortized cost and estimated market of available-for-sale securities at June
30, 2003 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>
($ in thousands)                                        AMORTIZED        FAIR
                                                          COST          VALUE
                                                        ---------       -----

<S>                                                     <C>           <C>
Due in one year or less                                   $974          $ 981
Due after one year through five years                        -              -
                                                          ----          -----
Total                                                     $974          $ 981
                                                          ====          =====
</TABLE>


     Investment securities with an amortized cost and market value of $.9
million were pledged to secure the right to participate in the overnight federal
funds market at Bank One.

     At June 30, 2003, Lakeside had $1.3 million classified as loans held for
sale, compared to $2.2 million at December 31, 2002. These loans represent
mortgage loans in process of being sold to various investor banks. 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.

     At June, 2003 and December 31, 2002, respectively, the Corporation had
$33.6 million and $37.6 million in loans. The following table shows the
breakdown into the various loan products as of June 30, 2003 and December 31,
2002.

                                       11
<PAGE>

<TABLE>
<CAPTION>
($ in thousands)                                  JUNE 30,      DECEMBER 31,
                                                   2003            2002
                                                  --------      ------------
<S>                                               <C>           <C>
Mortgage loans on real estate:
Residential 1-4 family                            $ 3,143          $ 6,356
Commercial                                         15,109           11,490
Construction                                        2,140            3,235
Equity lines of credit                              1,791              270
                                                  -------          -------
    Total mortgage loans                           22,183           21,351

Commercial loans                                    9,717           14,022
Consumer installment loans                          1,774            2,243
                                                  -------          -------
    Total loans                                    33,674           37,616

Less allowance for loan losses                        937            1,049
                                                  -------          -------
Net loans                                         $32,737          $36,567
                                                  -------          -------
</TABLE>



     The Bank maintains an allowance for loan losses believed to be sufficient
to absorb credit losses inherent in their loan portfolio. The allowance for loan
losses represents management's 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, 2003 the allowance for loan losses was $937,000 compared to
$1.0 million at December 31, 2002. Allowance for loan losses as a percentage of
total loans was 2.8% at June 30, 2003 and December 31, 2002. Net charge offs for
the six months ended June 30, 2003 and 2002 were $165,000 and $26,000,
respectively. Based on the analysis of the June 30, 2003 loan portfolio,
management believes the loan loss provision for the six months ended June 30,
2003 is adequate. The following table shows an analysis of the allowance for
loan losses.

<TABLE>
<CAPTION>
                                            SIX MONTHS ENDED                  THREE MONTHS ENDED
                                       --------------------------         -------------------------
                                       JUNE 30,          JUNE 30,         JUNE 30,         JUNE 30,
($ in thousands)                         2003              2002             2003             2002
                                       -------            -----            -----            -----

<S>                                    <C>                <C>              <C>              <C>
Balance beginning of period            $ 1,049            $ 537            $ 936            $ 527
Provision for loan losses                   53               30               23               30
Charge-offs                               (199)             (26)             (27)             (17)
Recoveries                                  34                -                5                1
                                       -------            -----            -----            -----
Net charge-offs                           (165)             (26)             (22)             (16)
                                       -------            -----            -----            -----
Balance end of period                  $   937            $ 541            $ 937            $ 541
                                       =======            =====            =====            =====

Allowance as a percentage of:
  Loans                                   2.78%            2.11%               -                -
  Net charge-offs                        17.61%            4.81%            2.35%            2.96%
</TABLE>


     Nonperforming assets consist of impaired loans on nonaccrual status, loans
past due 90 days or more and other repossessed assets. A loan is considered
impaired when, based on current



                                       12
<PAGE>
information and events, it is probable the Bank 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, 2003, there was one commercial loan totaling $32,000
classified as nonaccrual. At June 30, 2003 and December 31, 2002 there was one
mortgage loan totaling $209,000 in a nonaccrual status. Management actively
manages the loan portfolio, seeking to identify and resolve problem assets at an
early stage.

     If the nonaccrual loans discussed above had been paying in accordance with
contractual term, an additional $7,500 would have been recorded in interest
income during the six month period ended June 30, 2003. To management's
knowledge, there are no additional loans which cause management 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.



<TABLE>
<CAPTION>
NONPERFORMING ASSETS
($ in thousands)                                        JUNE 30,    DECEMBER 31,
                                                          2003          2002
                                                        --------    ------------
<S>                                                     <C>         <C>
NONACCRUAL LOANS
Commercial loans                                        $   32        $    -
Mortgage loan                                              209           209
                                                        ------          ----
Total nonaccrual loans                                     241           209
                                                        ------          ----

ACCRUING LOANS PAST DUE 90 DAYS OR MORE
Commercial loans                                           285             -
Commercial mortgages                                         -           455
                                                        ------          ----
Total accruing loans past due 90 days or more              285           455
                                                        ------          ----
Total nonperforming loans                                  526           664
                                                        ------          ----

REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Residential real estate owned                              535             -
                                                        ------          ----
Total nonperforming assets                              $1,061          $664
                                                        ======          ====
</TABLE>


     The Bank's policies regarding nonaccrual 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 nonaccrual 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 nonaccrual 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 principal 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.



                                       13
<PAGE>
LIABILITIES

     During the six months ended June 30, 2003, total deposits increased by $1.4
million, to $41.6 million compared to $40.2 million at December 31, 2002. The
increase occurred in NOW accounts in the amount of $.7 million, in savings and
money markets in the amount of $2.4 million, and in demand deposits in the
amount of $5.9 million offset by a decrease in certificates in the amount of
$7.5 million. The following table shows the breakdown into the various deposits
products as of June 30, 2003 and December 31, 2002.

<TABLE>
<CAPTION>

($ in thousands)                                   JUNE 30,       DECEMBER 31,
                                                     2003             2002
                                                   -------        ------------

<S>                                                <C>            <C>
NOW accounts                                       $ 1,832          $ 1,113
Money market deposits                                9,937            7,656
Savings deposits                                       612              549
Certificates of deposit under $100,000              15,320           18,206
Certificates of deposit $100,000 and over            5,329           10,012
                                                   -------          -------
Total interest bearing deposits                     33,030           37,536
Demand deposits                                      8,530            2,621
                                                   -------          -------
    Total deposits                                 $41,560          $40,157
                                                   -------          -------
</TABLE>


CAPITAL

     The Corporation was originally capitalized through an initial public
offering of common stock in December 1998. The Corporation does not contemplate
the need to raise additional capital during the next twelve months. Management
believes, based on the expected proceeds from the proposed sale of North Oakland
Community Bank (See "Part II - Item 5, Other Information"), that its current
capital and liquidity will provide the Corporation with adequate capital to
support expected level of deposit and loan growth and to otherwise meet cash and
capital requirements.

     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 "well-capitalized" by the FDIC, the Corporation must have a total
risk-based capital ratio of at least 10%, a Tier 1 risk-based capital ratio of
at least 6%, 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, 2003, Lakeside Community Bank's
total risk-based capital ratio was 9.6%, Tier 1 risk-based capital ratio was
8.3% and leverage capital ratio was 6.9%. At June 30, 2003 the Bank was
considered to be "adequately-capitalized" by the FDIC. The following table
represents a consolidated capital calculation for the Corporation.

<TABLE>
<CAPTION>
                                                                       To be adequately        To be well
                                                       Actual            Capitalized          Capitalized
                                                 -----------------    -----------------     ----------------
($ in thousands)                                 Amount      Ratio     Amount     Ratio      Amount    Ratio
                                                 ------      -----     ------     -----      ------    -----

<S>                                             <C>          <C>      <C>         <C>       <C>        <C>
Total capital to risk weighted assets           $ 3,409       9.6%    $ 2,839       8.0%    $ 3,548    10.00%
Tier I capital to risk weighted assets            2,959       8.3       1,419       4.0       2,129     6.00
Tier I capital to average assets (leverage)       2,959       6.9       1,710       4.0       2,138     5.00
</TABLE>


LIQUIDITY

     Liquidity management involves the ability to meet the cash flow
requirements of the Bank's customers. These customers may be either borrowers
with credit needs or depositors wanting to



                                       14
<PAGE>
withdraw funds. The Corporation's sources of liquidity include loan payments by
borrowers, maturity and sales of securities available for sale, growth of
deposits, 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, 2003 the Bank had $3.6 million in out-of-market
certificates of deposits compared to $4.9 million at December 31, 2002.
Management is working to minimize the use of out-of-market certificates of
deposits in 2003. The Bank had borrowing capability of approximately $850,000 on
an unused line of credit with Bank One at June 30, 2003.

     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, and loans, which
mature within one year. 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. Management of the
Corporation considers liquidity adequate to meet its future commitments.

ASSET/LIABILITY MANAGEMENT

     The Bank's Asset Liability Management Committee ("ALCO"), which meets at
least quarterly, is responsible for reviewing the interest rate sensitivity
position of the Bank and establishing policies to monitor and limit exposure to
interest rate risk.

     The following table shows the maturity and repricing distribution of the
Bank's interest earning assets and interest bearing liabilities as of June 30,
2003. This table displays the interest rate sensitivity gap (interest rate
sensitive assets less interest rate sensitive liabilities), cumulative interest
rate sensitivity gap, the interest rate sensitivity gap ratio (interest rate
sensitive assets divided by interest rate sensitive liabilities), and the
cumulative interest rate sensitivity gap ratio. Loans are presented gross of the
allowance but net of nonaccruing loans, while securities are shown at amortized
cost. Assumptions incorporated into this time table include estimates of partial
redemptions on NOW, Money Market and savings accounts.






                                       15
<PAGE>
<TABLE>
<CAPTION>


                                                       AFTER THREE     AFTER ONE
($ in thousands)                            WITHIN     MONTHS BUT       YEAR BUT      AFTER
                                            THREE      WITHIN ONE     WITHIN FIVE     FIVE
INTEREST EARNING ASSETS                     MONTHS        YEAR           YEARS        YEARS        TOTAL
                                           -------      -------         -----        ------       -------


<S>                                        <C>          <C>             <C>          <C>          <C>
  Federal funds sold                       $ 2,950      $      -        $    -       $     -      $ 2,950
  Securities, at amortized cost                  -           984             -                        984
  Federal Home Loan Bank stock                  92             -                                       92
  Portfolio loans and loans held for sale   21,791         3,162         9,135           925       35,013
  Federal Home Loan Bank Money Mkt              44                                                     44
                                           -------      --------        ------       -------      -------
Total                                      $24,877      $  4,146        $9,135       $   925      $39,083
                                           -------      --------        ------       -------      -------

INTEREST BEARING LIABILITIES


NOW and money market accounts              $11,769      $      -        $    -       $     -      $11,769
Savings deposits                               612                                                    612
Time deposits less than $100,000             3,690         8,833         2,797                     15,320
Time deposits of $100,000 or more            1,244         3,887           198                      5,329
                                           -------      --------        ------       -------      -------
Total                                      $17,315      $ 12,720        $2,995       $     -      $33,030
                                           -------      --------        ------       -------      -------


Rate sensitivity gap                       $ 7,562      $ (8,574)       $6,140       $   925      $ 6,053
                                           -------      --------        ------       -------      -------
Cumulative rate sensitivity gap            $ 7,562      $ (1,012)       $5,128       $ 6,053
                                           =======      ========        ======       =======      =======


Rate sensitivity gap ratio                    30.5%       -206.8%         67.2%       100.0%
                                           -------      --------        ------       -------
Cumulative rate sensitivity gap                             -3.5%         13.4%        15.5%
                                                        ========        ======       =======
</TABLE>



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

     At June 30, 2003, the Corporation is considered "asset sensitive" in the
time interval of the first three months, according to the preceding table. In a
downward rate environment, the Corporation might not be able to decrease prices
on interest bearing liabilities as quickly as decreases on rates on interest
earning assets. The Corporation is considered to be somewhat evenly matched at
the one year accumulated gap position.

RESULTS OF OPERATIONS

COMPARISON OF SIX MONTH PERIOD ENDED JUNE 30, 2003 TO SIX MONTH PERIOD ENDED
JUNE 30, 2002:

     The Corporation reported a net income for continuing operations of $66,000
for the six months ended June 30, 2003 compared to a net loss of $87,000 for the
six months ended June 30, 2002, representing an improvement in year to date
comparisons.

     Net interest income decreased by 12.6% to $826,000 for the six months ended
June 30, 2003 compared to $945,000 for the same period ended June 30, 2002. The
net interest margin




                                       16
<PAGE>
decreased to 4.09% for the six months ended June 30, 2003, compared to 4.38% for
the six months ended June 30, 2002. The rate earned on interest earning assets
decreased by .55% for the six months ended June 30, 2002 to 6.61% for the six
months ended June 30, 2003. The rate paid on interest bearing liabilities
decreased by .32% for the six months ended June 30, 2002 to 2.92% at June 30,
2003. The decreases in both interest rates earned and interest rates paid are
primarily the result of the decreases in rates enacted by the Federal Reserve
throughout the year 2002 and 2003. 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 six month periods ended June 30, 2003 and 2002. Nonaccruing
loans, for the purpose of the following computations, are included in the
average loan amounts outstanding. Federal Home Loan Bank equity holdings are
included in securities for the purposes of this analysis.

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

<TABLE>
<CAPTION>
                                                                             Six months ended June 30,
                                                                       2003                                2002
                                                          ------------------------------      ------------------------------
($ in thousands)                                          Average                Average      Average                Average
                                                          Balance     Interest     Rate       Balance    Interest     Rate
                                                          -------     --------   -------      -------    --------    -------

<S>                                                      <C>          <C>        <C>         <C>         <C>         <C>
Assets
Interest bearing balances with banks                     $    320     $      1     0.63%     $  1,162     $    -      0.00%
Federal funds sold                                          1,513           10     1.32%           33         10     60.61%
Securities                                                  1,358           15     2.21%        1,894         43      4.54%
Loans, including fees                                      37,201        1,309     7.04%       40,049      1,491      7.45%
                                                         --------     --------     ----       -------     ------
  Total earning assets/interest income                     40,392        1,335     6.61%       43,138      1,544      7.16%
Cash and due from banks                                     2,802                               2,538
Allowance for loan losses                                    (900)                               (536)
Other assets                                                1,124                               1,148
                                                         --------                            --------
  Total assets                                           $ 43,418                            $ 46,288
                                                         ========                            ========

Liabilities and Equity
Interest bearing demand and money markets                $ 10,867     $     85     1.56%      $10,803     $   78      1.44%
Savings accounts                                              652            3     0.92%          672          4      1.19%
Time deposits less than $100,000                           16,252          322     3.96%       16,545        378      4.57%
Time deposits $100,000 and over                             7,071           98     2.77%        8,962        139      3.10%
                                                                      --------                            ------
  Total interest bearing liabilities interest expense      34,842          508     2.92%       36,982        599      3.24%
                                                                      --------                            ------

Noninterest bearing demand deposits                         5,341                               5,059
Other liabilities                                             222                                 143
Shareholders' equity                                        3,013                               4,104
                                                         --------                            --------
  Total liabilities and shareholders' equity             $ 43,418                            $ 46,288
                                                         ========                            ========
Net interest income                                                   $    826                            $  945
                                                                      ========                            ======
Net interest spread                                                                3.69%                              3.92%
                                                                                   ====                               ====
Net interest margin                                                                4.09%                              4.38%
                                                                                   ----                               ----
</TABLE>



     The provision for loan losses for the six months ended June 30, 2003 and
2002 was $53,000 and $45,000, respectively.

     Noninterest income was $341,000 for the six months ended June 30, 2003
compared to $115,000 for the same period in 2002. The increase was a result of
service charges imposed on a newly introduced deposit product and gains on the
sale of mortgage loans held for sale.




                                       17
<PAGE>
     Noninterest expense for the first six months of 2003 decreased by $54,000
as compared to the same period in 2002. The largest component of noninterest
expense was compensation and benefits, which totaled $535,000 and $559,000 for
the six months ended June 30, 2003 and 2002, respectively. Occupancy and
equipment expense totaled $203,000 and $243,000 for the six months ended June
30, 2003 and 2002, respectively. Changes in these areas were the result of
reducing staff count and the disposal of a fixed asset. Currently, North Oakland
Community Bank reimburses Lakeside Community Bank for certain administrative
services provided by Lakeside Community Bank personnel. After the sale of North
Oakland Community Bank is completed, Lakeside Community Bank will offset the
reimbursement through the anticipated reduction in staff as well as increases in
commercial loan fee and residential mortgage fee income as Lakeside Management
can devote additional time to revenue generation. The other components of
noninterest expense were consistent between the periods. Management continues to
review personnel needs and other expenses in order to reduce such costs to
increase profitability at the current operating level.

COMPARISON OF THREE MONTH PERIOD ENDED JUNE 30, 2003 TO THREE MONTH PERIOD ENDED
JUNE 30, 2002:

     The Corporation reported a net income for continuing operations of $76,000
for the three months ended June 30, 2003, compared to a net loss of $65,000 for
the three months ended June 30, 2002, representing an increase of 185% in
quarter-to-quarter comparisons.

     Net interest income decreased by 15.4% to $416,000 for the three months
ended June 30, 2003, compared to $492,000 for the three months ended June 30,
20002, primarily due to pressure arising from decreases in the prime lending
rate during 2002 and 2003. Continued emphasis on balance sheet management should
enable the Corporation to keep net interest income stable.

     The provision for possible loan losses for the three months ended June 30,
2003 and 2002 was $23,000 and $45,000, respectively.

     Non-interest income was $189,000 for the three months ended June 30, 2003
compared to $64,000 for the same period in 2002. The largest component of
non-interest income in 2003 is deposit account service charges, which comprised
49.7% of the three month total followed by gain on sale of loans that comprised
38.1% of the three month total, respectively.

     Non-interest expense for the three months ended June 30, 2003 decreased by
$70,000 or 12.2%. The largest component of non-interest expense was compensation
and benefits which totaled $259,000 and $285,000 for the three months ended June
30, 2003 and 2002, respectively, representing a decrease of 9.1%. The largest
component making up the decrease in non-interest expense is the occupancy and
equipment category. The category decreased by 41.3% to $74,000 in the three
months ended June 30, 2003 from $126,000 for the same period of 2002. The
primary item that contributed to the decrease was the disposal of a fixed asset.

ITEM 3.  CONTROLS AND PROCEDURES

     In response to recent legislation, the Orders of the FDIC and OFIS
referenced and defined in Part II, Item 5 below, and additional requirements,
management has reviewed the Corporation's internal control structure and
disclosure controls and procedures. As a result of such review, enhancements to
formalize and document procedures in place will be implemented prior to the end
of 2003. As required, the effectiveness of our internal control structure and
financial reporting disclosure controls is evaluated quarterly. Based on their
evaluation as of the end of the period covered by this report, J. William
Sumner, Chief Executive Officer and Frank D. Blowers, Principal Financial
Officer, have concluded that our disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934)
are effective to ensure that material information relating to the Corporation
would be made known to them by others within the Corporation, particularly
during the period this Form 10-QSB was being prepared.

     No changes were made to the internal control over financial reporting that
occurred during the registrant's last fiscal quarter that has materially
affected, or is reasonably likely to materially affect, registrant's internal
controls over financial reporting.




                                       18
<PAGE>
PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Corporation is involved in routine litigation incidental to its
business. The Corporation is defending its interest and is contesting such
claims against it. Management believes the ultimate disposition of these matters
will not have a material adverse effect on the financial statements.

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

      The Annual Meeting of the Shareholders of the Corporation was held on June
9, 2003 in Sterling Heights, Michigan for the purpose of electing three
directors for three year terms expiring in 2006 and upon the election and
qualification of their successors and for the purpose of ratifying the
appointment of Rehmann Robson as the Corporation's independent public
accountants for the 2003 fiscal year.

     The result of the voting were as follows:

<TABLE>
<CAPTION>
                 Name of Director            Votes for          Votes withheld
                 ----------------            ---------          --------------

<S>                                          <C>                <C>
                 Gary Davison                747,455                  0
                 Philip T. Hernandez         747,545                  0
                 J. William Sumner           746,545                  0
</TABLE>


     The names of the other directors and their remaining terms are as follows:

<TABLE>
<CAPTION>
                                Name of Director                    Term
                                ----------------                    ----

<S>                                                                 <C>
                                Frank D. Blowers                    2005
                                Joseph S. Lentine                   2004
                                Frederick Maibauer, M.D.            2004
                                Robert R. Peleman, M.D.             2005
                                Russell M. Shelton                  2005
                                Jeff Tamaroff                       2004
</TABLE>

     The following are the results with respect to the ratification of Rehmann
Robson to serve as independent public accountants for the 2003 fiscal year:

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

<S>                                              <C>                      <C>
                   749,455                       1,300                    9,090
</TABLE>


ITEM 5.  OTHER INFORMATION

     On July 9, 2003, the Corporation, North Oakland and Community Central Bank
("CCB"), a wholly-owned subsidiary of Community Central Bank Corporation, signed
a definitive agreement pursuant to which CCB agreed to purchase and assume
substantially all of the assets and liabilities of North Oakland. Among other
things, the agreement provides that CCB shall pay North Oakland the value of the
acquired assets less the amount of the assumed liabilities plus a premium on the
amount of the core deposit liabilities to be assumed. Although the amount of the
premium will be determined based on the amount of the assumed core deposits at
North Oakland at the time of consummation, the Corporation currently expects a
premium on core deposits. The consummation of the transaction is subject to a
number of




                                       19
<PAGE>
conditions including receiving applicable regulatory approvals. It is
anticipated that the transaction should be consummated by year-end. There is no
assurance, however, as to when the transaction will be consummated or that the
transaction will be consummated.

     Lakeside and North Oakland have each entered into a Stipulation and Consent
to the Issuance of an Order to Cease and Desist with representatives of the
Federal Deposit Insurance Corporation (the "FDIC") and the Office of Financial
and Insurance Services for the State of Michigan ("OFIS"). Without admitting or
denying the charges of unsafe or unsound banking practices and violations of
law, rule or regulation, both Lakeside and North Oakland have consented to the
issuance of an order effective August 2003, to Cease and Desist (the "Order" or
"Orders") by the FDIC and OFIS. The effective date of each Order shall be ten
calendar days after issuance by the FDIC and OFIS. The provisions of each of the
Orders shall remain effective except to the extent that, and until such time as,
any provision has been modified, terminated, suspended or set aside by the FDIC
and OFIS.

     The Orders are included as exhibits 99.1 and 99.2 to this Form 10-QSB, and
the following summary of the Orders is subject to the complete terms of the
Orders. Among other requirements, Lakeside and North Oakland must comply with
the following:

     (i) Both Lakeside and North Oakland must attain a Tier 1 capital ratio
(Tier 1 capital to total assets) of not less than 8.0% and a risk-based capital
ratio (risk-based capital as a percentage of total assets) of not less than
10.0%.

     (ii) Both Lakeside and North Oakland are required to have and maintain
qualified management. During the effectiveness of the Orders, Lakeside and North
Oakland are required to notify the FDIC and OFIS in writing of any changes to
any of their respective directors or senior executive officers.

     (iii) Both Lakeside and North Oakland must retain a bank consultant
acceptable to the FDIC and OFIS who shall develop a written analysis and
assessment of their respective management and staffing needs for the purpose of
providing qualified management.

     (iv) Neither Lakeside nor Oakland may extend additional credit to any
borrower who has a loan or other credit that has been charged-off or classified
as "loss," so long as such credit remains uncollected. With certain exceptions,
both Lakeside and North Oakland are restricted from extending additional credit
to any borrower with a loan or other credit that has been classified as
"substandard" or is listed for special mention and is uncollected.

     (v) Both Lakeside and North Oakland must eliminate from their respective
books, by charge-off or collection, all assets or portions of assets classified
as "loss" as of January 27, 2003 that have not been previously collected or
charged off. Within fifteen days from the effective date, Lakeside is required
to replenish its allowance for loan losses in an amount equal to those loans
required to be charged off by the Order.

     The above described actions were completed by management during the first
quarter 2003.

     (vi) Within thirty days from the effective date, both Lakeside and North
Oakland are required to make additional provisions for loan and lease losses
which reflect the potential for further losses in the remaining loans or leases
classified as "substandard" and all other loans and leases in their respective
portfolios. As applicable, reports filed with the FDIC subsequent to January 27,
2003 but prior to the effective date, must be amended and refiled to reflect
provisions for loan and lease losses and an allowance for loan and lease losses
which is adequate. In all future Reports of Condition and Income, the Boards
must determine the adequacy and accuracy of the Banks' allowance for loan and
lease losses. In making their determinations, the respective Boards must
consider the Interagency Policy Statement and any analysis of the allowance for
loan and lease losses provided by the FDIC and OFIS.

     The additional provisions required under (vi) were made during the first
quarter and all applicable reports were amended.


                                       20
<PAGE>
     (vii) Within sixty days from the effective date, both Lakeside and North
Oakland are to formulate a written plan to reduce the Banks' risk position in
each asset in excess of $100,000 which is classified "substandard" in the
January 27, 2003 Report of Examination.

     (viii) Within ninety days from the effective date and annually thereafter,
the respective boards of directors of Lakeside and North Oakland must review
their respective loan policies and procedures for adequacy and, based upon the
review, make appropriate revisions thereto.

     (ix) Both Lakeside and North Oakland are required to formulate and submit
to the FDIC and OFIS a written plan to reduce concentrations of credit. Such
plan must prohibit any additional advances that would increase the
concentrations or create new concentrations.

     (x) Both Lakeside and North Oakland are required to adopt and implement a
written plan for the reduction and collection of delinquent loans.

     (xi) Both Lakeside and North Oakland are required to develop and submit to
the FDIC and OFIS a written plan addressing their respective liquidity, the
relationship of volatile liabilities to temporary investments and the dependence
on non-core funding. Annually thereafter, Lakeside and North Oakland are
required to review the plan for adequacy and make appropriate revisions
necessary to meet their respective liquidity needs.

     (xii) Both Lakeside and North Oakland are required to formulate and adopt a
comprehensive strategic plan which will be submitted to the FDIC and OFIS.

     (xiii) As of the effective date, neither Lakeside nor North Oakland shall
make any payment, including dividend payments, or enter into any contract with
the Corporation or any other affiliate without the prior written consent of the
FDIC and OFIS.

     (xiv) Both Lakeside and North Oakland are required to formulate and submit
to the FDIC and OFIS a comprehensive written audit program which shall provide,
among things, that an internal auditor make written quarterly reports of audit
findings direct to each bank's board of directors.

     (xv) Both Lakeside and North Oakland are required to formulate and submit
to the FDIC and OFIS a written profit plan and a comprehensive budget for the
calendar years 2003 and 2004. Within thirty days from the end of each calendar
quarter, each bank's board of directors must evaluate actual performance in
relation to the plan and budget.

     (xvi) Both Lakeside and North Oakland are required to monitor the Banks'
compliance with the order and provide quarterly progress reports to the FDIC and
OFIS regarding their respective actions to comply with the Orders.

     The Corporation believes that the proposed sale of North Oakland, discussed
above, will eliminate the concerns of the FDIC and OFIS with respect to North
Oakland. In addition, such sale would ameliorate and assist Lakeside in
complying with certain of the requirements of the Order. In addition to previous
steps taken to comply with regulatory concerns, the Corporation is taking steps
to bring it into compliance with the Orders.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

    (a)  Exhibits

         31.1  Certification of Chief Executive Officer

         31.2  Certification of Principal Financial Officer

         32.1  Certification Pursuant to 18 U.S.C. Section 1350, as adopted
               pursuant to Section 906 of the Sarbanes-Oxley Act of 2002





                                       21
<PAGE>
         99.1  Federal Deposit Insurance Corporation and State of Michigan
               Office of Financial and Insurance Services Order to Cease and
               Desist and Stipulation and Consent to the Issuance of an Order to
               Cease and Desist - Lakeside Community Bank.

         99.2  Federal Deposit Insurance Corporation and State of Michigan
               Office of Financial and Insurance Services Order to Cease and
               Desist and Stipulation and Consent to the Issuance of an Order to
               Cease and Desist - North Oakland Community Bank.

    (b)  Reports on Form 8-K

         None












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<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 13, 2003                    Michigan Community Bancorp Limited

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

                                        By: /s/ Frank D. Blowers
                                        ------------------------
                                        Frank D. Blowers
                                        President and Chief Operating Officer
                                        (Principal Financial Officer)


















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<PAGE>
                                  EXHIBIT INDEX


EXHIBIT NUMBER    DESCRIPTION

31.1              Certification of Chief Executive Officer
31.2              Certification of Principal Financial Officer
32.1              Certification Pursuant to 18 U.S.C. Section 1350, as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1              Federal Deposit Insurance Corporation and State of
                  Michigan Office of Financial and Insurance Services
                  Order to Cease and Desist and Stipulation and Consent
                  to the Issuance of an Order to Cease and Desist -
                  Lakeside Community Bank.
99.2              Federal Deposit Insurance Corporation and State of Michigan
                  Officer of Financial and Insurance Services Order to Cease and
                  Desist and Stipulation and Consent to the Issuance of an order
                  to Cease and Desist - North Oakland Community Bank.








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