<PAGE>
<PAGE>

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

(Mark One)

  [X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934

        For the quarterly period ended September 30, 1997
                                       ------------------
                               OR

  [ ]   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. 0-21347

                  ILLINOIS COMMUNITY BANCORP, INC.
     ----------------------------------------------------
    (Exact name of registrant as specified in its charter)
 

           ILLINOIS                           37-1361560
-------------------------------           -------------------
(State of other jurisdiction of            (I.R.S. Employer
 incorporation or organization)            Identification No.)


210 E. Fayette, Effingham, Illinois                 62401
--------------------------------------           ----------
(Address of principal executive office)          (Zip Code)


Registrant's telephone number, including area code:(217)347-7127
                                                   -------------

  
  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 reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                                                 
       YES      X               NO              
              ------                ------
  Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date.
                                       Shares outstanding 
           Class                      at November 10, 1997
-----------------------------         --------------------
Common Stock, Par Value $0.01              502,550
<PAGE>
<PAGE> 
  
                  ILLINOIS COMMUNITY BANCORP, INC.
  
                        Index to Form 10-QSB
  
  
 PART I FINANCIAL INFORMATION                         PAGE NO.
  
   Item 1.  Financial Statements
  
            - Consolidated Statements of 
              Financial Condition                         1
  
            - Consolidated Statements of Income           2
  
            - Consolidated Statement of 
              Stockholders' Equity                        3
  
            - Consolidated Statement of Cash Flows        4
  
            - Notes to Consolidated Financial 
              Statements                                  6
  
   Item 2.  Management's Discussion and Analysis of
            Financial Condition and Results of 
            Operations                                    8

 
 PART II OTHER INFORMATION
  
   Item 1.  Legal Proceedings                            14

   Item 2.  Changes in Securities                        14

   Item 3.  Defaults Upon Senior Securities              14
  
   Item 4.  Submission of Matters to a Vote of
            Security Holders                             14
  
   Item 5.  Other Information                            14
  
   Item 6.  Exhibits and Reports on Form 8-K             14
  
  
  SIGNATURES                                             15
    <PAGE>
<PAGE>
        ILLINOIS COMMUNITY BANCORP, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
  
<TABLE>
<CAPTION>                                                       
                                                 September 30      June 30
                                                     1997            1997
                                                 ------------    -----------
                                                  Unaudited        Audited  
                                                 ------------    -----------
                                                           (1,000's)
                                                 ---------------------------
<S>                                               <C>             <C>
ASSETS
Cash and Cash Equivalents:
  Cash                                            $   2,028       $   1,708
  Interest bearing deposits                             355             767
                                                  ---------       ---------
     Total Cash and Cash Equivalents                  2,383           2,475
   
  Securities available for sale, amortized cost
   of $7,600 and $7,497 at September 30, 1997
   and June 30, 1997, respectively                    7,853           7,925
  Securities held to maturity, estimated market
   value of $633 and $633 at September 30, 1997
   and June 30, 1997, respectively                      633             633
  Loans receivable, net                              45,414          45,219
  Accrued interest receivable                           388             453
  Premises and equipment, net                         2,702           2,742
  Real estate held for sale                              45              45
  Prepaid income taxes                                    0             121
  Organization expense                                   67              71
  Other assets                                           95             115
                                                  ---------       ---------
       Total Assets                               $  59,580       $  59,799
                                                  =========       =========
  
LIABILITIES AND STOCKHOLDERS' EQUITY
  Deposits                                        $  43,101       $  43,662
  Advances from Federal Home Loan Bank                8,458           7,958
  Other borrowings                                      306             316
  Advances from borrowers for taxes and insurance        47              79
  Accrued interest payable                              160             154
  Accrued income taxes                                   11               0
  Deferred income taxes                                  36              97
  Accrued dividends                                       0              75
  Other liabilities                                     520             366
                                                  ---------       ---------
       Total Liabilities                             52,639          52,707
                                                  ---------       ---------
  Commitments and Contingencies

  Stockholders' Equity
    Common stock, $0.01 par value; authorized
     4,000,000 shares 502,550 shares issued
     and outstanding                                      5               5
    Paid-in capital                                   4,693           4,693
    Retained earnings                                 2,553           2,432 
    Unrealized gain on securities held
     available for sale                                 165             278 
    Unearned employee stock ownership plan             (306)           (316)
    Stock held for benefit plan                        (169)              0
                                                  ---------       ---------
       Total Stockholders' Equity                     6,941           7,092
                                                  ---------       ---------

       Total Liabilities and Stockholders' Equity $  59,580       $  59,799
                                                  =========       =========
</TABLE>  

                                  1<PAGE>
<PAGE>

        ILLINOIS COMMUNITY BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
                            (Unaudited)
<TABLE>
<CAPTION>                                                       
                                                        Three Months Ended
                                                           September 30
                                                     -----------------------
                                                      1997             1997
                                                     ------           ------
                                                            (1,000's)
                                                     -----------------------
<S>                                                  <C>              <C>
Interest income: 
   Interest on loans                                 $   929          $   772 
   Interest and dividends on securities                  139              123 
                                                     -------          -------
     Total interest income                             1,068              895
                                                     -------          -------
Interest expense:                
   Interest on deposits                                  519              443
   Interest on Federal Home Loan Bank advances           122               45
   Interest on other borrowings                            7                6
                                                     -------          -------
     Total interest expense                              648              494
                                                     -------          -------
     Net interest income                                 420              401
  
Provision for loan losses                                 16               82
                                                     -------          -------
     Net interest income after provision for
      loan losses                                        404              319
                                                     -------          -------
Non-interest income:
  Other fees                                              45               21
  Gain on sale of securities                             212                0
  Other                                                   34               11
                                                     -------          -------
     Total other income                                  291               32
                                                     -------          -------
                          
Non-interest expense:
  Compensation and employee benefits                     273              199
  Occupancy and equipment                                101               51
  Data processing                                         28               24
  Audit, legal and other professional                     24               40
  SAIF deposit insurance                                   7               20
  SAIF assessment                                          0              211
  Advertising                                              8                9
  Other                                                   66               46
                                                     -------          -------
                                                         507              600
                                                     -------          -------
     Income before income taxes                          188             (249)

Provision for (benefit from) income taxes                 67              (81)
                                                     -------          -------
     Net Income (Loss)                               $   121          $  (168)
                                                     =======          =======
Earnings (Loss) Per Share                            $   .26          $  (.36)
                                                     =======          =======
</TABLE>

                                  2<PAGE>
<PAGE>
                 ILLINOIS COMMUNITY BANCORP, INC.
  
          CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                            (Unaudited)              
 

<TABLE>
<CAPTION> 
                                                              
                                                               Unearned      Unrealized
                                                               Employee      Gain (Loss)  
                                                                 Stock      on Securities    Stock
                              Common    Paid-in    Retained    Ownership      Available       Held
                              Stock     Capital    Earnings      Plan       For Sale, Net    for MRP     Total
                             -------    -------    --------    ---------    -------------    -------    -------
                                                                 (1,000's)
                             ----------------------------------------------------------------------------------
<S>                          <C>        <C>        <C>         <C>            <C>            <C>        <C>
Balance at June 30, 1997     $     5    $ 4,693    $  2,432    $   (316)      $    278       $     0    $ 7,092

Net income                         0          0         121           0              0             0        121

Change in unrealized gain
 gain on securities
 available for sale                0          0           0           0           (113)            0       (113)

Shares purchased                   0          0           0           0              0          (169)      (169)

Shares released for
 allocation                        0          0           0          10              0             0         10 
                             -------    -------    --------    --------       --------       -------    -------
Balance at September
 30, 1997                    $     5    $ 4,693    $  2,553    $   (306)      $    165       $  (169)   $ 6,941
                             =======    =======    ========    ========       ========       =======    =======
</TABLE>

                                    3<PAGE>
<PAGE>
            ILLINOIS COMMUNITY BANCORP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Unaudited)
   
<TABLE>
<CAPTION>                                                       
                                                        Three Months Ended
                                                           September 30
                                                     -----------------------
                                                       1997           1997
                                                     --------       --------
                                                            (1,000's)
                                                     -----------------------
<S>                                                  <C>            <C>
Operating activities:
  Net income (loss)                                  $    121       $   (168)
  Adjustments to reconcile net income to net                                   
   cash provided by operating activities
    Provision for depreciation and amortization            67             17
    Provision for loan losses                              16             82
    Net amortization and accretion of securities            1              1
    Amortization of organization cost                       4              0
    Decrease (increase) in accrued interest receivable     65            (23)
    Increase in other repossessed property                  0              0
    Decrease (increase) in other assets                    20             (5)
    Increase in accrued interest payable                    6              7
    Increase (decrease) in accrued income taxes           132            (88)
    Increase in deferred income taxes                       0             25
    Increase in other liabilities                         154             90
    Gain on sale of securities                           (212)             0
    ESOP benefit expense                                   10             10
                                                     --------       --------  
       Net cash provided by (used in) operating
        activities                                        384            (52)
                                                     --------       --------
Investing activities:
  Proceeds from matured securities available
   for sale                                             1,000            800
  Proceeds from sale of securities available
   for sale                                             1,225              0
  Purchase of securities held to maturity          
   and certificates of deposit                              0            (99)
  Purchase of securities available for sale            (2,333)          (427)
  Proceeds from sale of loans                             747              0 
  Increase in loans receivable                           (958)        (3,377)
  Repayment of mortgage-backed securities                 216             82 
  Purchase of premises and equipment                      (26)          (360)
                                                     --------       --------
      Net cash used in investing activities              (129)        (3,381)
                                                     --------       --------
</TABLE>
                                      4<PAGE>
<PAGE>
             ILLINOIS COMMUNITY BANCORP, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                                                                 

<TABLE>
<CAPTION>                                                       
                                                        Three Months Ended
                                                           September 30
                                                     -----------------------
                                                       1997           1997
                                                     --------       --------
                                                            (1,000's)
                                                     -----------------------
<S>                                                  <C>            <C>
Financing activities:
  Net (decrease) increase in deposits                $   (561)      $  1,776
  Advances from Federal Home Loan Bank                    500          2,150
  Decrease in advances from borrowers
   for taxes and insurance                                (32)           (66)
  Repayment Employee Stock Ownership Plan loan            (10)           (10)
  Dividends paid                                          (75)             0
  Purchase of MRP Plan stock                             (169)             0
                                                     --------       --------
     Net cash provided by (used in) financing
      activities                                         (347)         3,850
                                                     --------       --------

     Increase (decrease) in cash and cash equivalents     (92)           417

Cash and cash equivalents at beginning of period        2,475            407
                                                     --------       --------
Cash and cash equivalents at end of period           $  2,383       $    824
                                                     ========       ========
Supplemental Disclosures:
  Additional Cash Flows Information:               
    Cash paid for:
      Interest on deposits, advances and
       other borrowings                              $    642       $    437
    Income taxes:
      Federal                                        $      0       $      0

Unrealized gain on securities available for sale     $   (175)      $     51

Deferred taxes on unrealized gain on securities
 available for sale                                        61            (18)

</TABLE>

                                      5<PAGE>
<PAGE>
                     ILLINOIS COMMUNITY BANCORP, INC.
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)  Basis of Presentation
     ---------------------

     The consolidated financial statements include the accounts
     of Illinois Community Bancorp, Inc. (the Company) and its
     wholly owned subsidiaries.  All significant intercompany
     accounts and transactions have been eliminated in 
     consolidation.  The accompanying consolidated financial
     statements are unaudited and should be read in conjunction
     with the consolidated financial statements and notes
     thereto included in the Illinois Guarantee Bank, FSB (the
     Bank)'s annual report on Form 10-KSB for the year ended
     June 30, 1997.  The accompanying unaudited consolidated
     financial statements have been prepared in accordance with
     the instructions for Form 10-QSB and, therefore, do not
     include information or footnotes necessary for a complete
     presentation of financial condition, results of operations,
     and cash flows in conformity with generally accepted
     accounting principles.  In the opinion of management of the
     Company the unaudited consolidated financial statements
     reflect all adjustments (consisting only of normal
     recurring accruals) necessary to present fairly the
     financial position of the Company at September 30, 1997,
     and the results of its operations and cash flows for the
     three months ended September 30, 1997 and 1996.  Operating
     results for the three months ended September 30, 1997 are
     not necessarily indicative of the results that may be
     expected for the year ending June 30, 1998.

(2)  Stock Conversion
     ----------------

     On September 28, 1995, the Bank converted from a federally
     chartered mutual savings bank to a federally chartered
     capital stock savings bank through the sale and issuance of
     502,550 shares of $1 par value common stock at a price of
     $10 per share, resulting in gross proceeds of $5,025,500. 
     After reducing gross proceeds for conversion costs of
     $462,500, net proceeds totaled $4,563,000.

     In conjunction with the conversion, an employee stock
     ownership plan established by the Bank borrowed $402,040
     from a third party to purchase 40,204 shares of common
     stock issued by the Bank.  As of September 30, 1997, the
     outstanding loan balance is recorded as a liability and, a
     corresponding amount is reflected as a reduction to 
     stockholders' equity.

(3)  Bank Holding Company
     --------------------

     On July 23, 1996, the shareholders' of Illinois Guarantee
     Savings Bank approved the formation of a single bank
     holding company, Illinois Community Bancorp, Inc.  The
     reorganization was consummated on September 27, 1996.  Also
     approved on September 27, 1996 was the Management
     Recognition Plan of 4% outstanding stock and Stock Option
     Plan of up to 10% of outstanding stock.  In the first
     quarter of calendar year 1997, the Company formed two
     subsidiary corporations to conduct business as a leasing
     corporation and a financial services corporation.  

(4)  Bank Charter
     ------------

     On April 21, 1997, Illinois Guarantee Savings Bank changed
     its name to Illinois Community Bank and its charter from a
     federal savings bank to an Illinois chartered commercial
     bank.  Also on this date the Company became a bank holding
     company regulated by the Board of Governors of the Federal
     Reserve, upon its conversion from a Thrift Holding Company.


                                6<PAGE>
<PAGE>
                     ILLINOIS COMMUNITY BANCORP, INC.
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(5)  Earnings Per Share
     ------------------

     Only ESOP shares that are committed to be released are
     considered outstanding for earnings per share calculations.
     Earnings per share have been calculated based on 471,066
     and 466,969 shares for the three months ended September 30,
     1997 and 1996, respectively.

(6)  Employee Stock Ownership Plan
     -----------------------------

     In connection with the conversion to the stock form of
     ownership, the Board of Directors established an employee
     stock ownership plan (ESOP) for the exclusive benefit of
     participating employees.  Employees age 21 or older who
     have completed one year of service are eligible to
     participate.  Upon the issuance of the common stock, the
     ESOP acquired $40,204 shares of $0.01 par value common
     stock at the subscription price of $10.00 per share.  The
     Bank makes contributions to the ESOP equal to the ESOP's
     debt service less dividends received by the ESOP.  All
     dividends received by the ESOP are used to pay debt
     service.  The ESOP shares initially were pledged as
     collateral for its debt.  As the debt is repaid, shares are
     released from collateral and allocated to active employees,
     based on the proportion of debt service paid in the year. 
     The Bank accounts for its ESOP in accordance with Statement
     of Position 93-6.  Accordingly, the debt of the ESOP is
     recorded as debt and the shares pledged as collateral are
     reported as unearned ESOP shares in the consolidated
     balance sheets.  As shares are released from collateral,
     the Bank reports compensation expense equal to the current
     market price of the shares, and the shares become
     outstanding for earnings-per-share calculations.  Dividends
     on allocated shares are recorded as a reduction of retained
     earnings; dividends on unallocated ESOP shares are recorded
     as a reduction of debt or accrued interest.  ESOP
     compensation expense was $10,000 for the three months ended
     September 30, 1997 and 1996, respectively.

     The ESOP shares at September 30, 1997 were as follows:

       Allocated shares                        $    8,643
       Shares released for allocation               1,005
       Unallocated shares                          30,556
                                               ----------
       Total ESOP shares                           40,204
                                               ==========
       Fair value of unallocated shares        $  408,687
                                               ==========

(7)  Management Recognition Plan

     The Company approved the establishment of the Management
     Recognition Plan "MRP" with the objectives to enable the
     Company to attract and retain personnel of experience and
     ability in key positions of responsibility.  The
     stockholders approved the MRP at the annual meeting on July
     23, 1996.  Those eligible to receive benefits under the MRP
     will be on a discretionary basis and the MRP is a
     non-qualified plan that will be managed through a separate
     trust.  The Company will contribute sufficient funds to the
     MRP for the purchase of up to 20,102 shares of common
     stock.  Automatic grants will be made to the nonemployed
     directors, with two years continuous service prior to the
     effective plan date, of the lesser of 5% of the plan shares
     per Director or 30% of the plan shares in the aggregate. 
     Nonemployed directors who join the Board within the two
     year period before the effective date or after the
     effective date shall receive up to 2% of the plan shares.
     These awards will vest 20% on each anniversary date except
     in the case of participant's death or disability where all
     shares awarded will vest immediately.  The Company intends
     to expense the MRP awards over the years during which the
     shares are payable, based on the market value of the common
     stock at the time of the grant.  The Company, on July 8,
     1997, purchased 13,400 shares of its stock for $169,000. 
     These shares will be used to fund the MRP.  Compensation
     expense related to the MRP was $12,000 for the quarter
     ended September 30, 1997.


                                 7<PAGE>
<PAGE>
                     ILLINOIS COMMUNITY BANCORP, INC.

          Management's Discussion and Analysis of Financial
                   Condition and Results of Operations

GENERAL

The principal business of the Company is the business of the
Bank.  Therefore, substantially all of the discussion in the
Form 10-QSB relates to the operations of the Bank.  The business
of the Bank consists of attracting   deposits from the general
public and using these funds to originate residential mortgage
and home equity loans, business loans, multi-family and
commercial real estate loans, automobile loans, and consumer
loans.  To a lesser extent, the Bank invests in interest-bearing
deposits, U.S. Government and federal agency securities,
mortgage-backed securities and local municipal securities.  The
Bank's profitability depends primarily on its net interest
income, which is the difference between the interest income it
earns on loans and investment portfolio and its cost of funds,
which consists mainly of interest paid on deposits and Federal
Home Loan Bank short term borrowings.  Net interest income is
affected by the relative amounts of interest-earning assets
approximate or exceed interest-bearing liabilities, a positive
interest rate spread will generate new interest income.

The Bank's profitability is also affected by the level of
noninterest income and expense.  Noninterest income consists 
primarily of loan fees and late charges, recently supplemented
by fees generated from the sales of qualified mortgage loans to
the secondary mortgage market, and by commissions generated
through Trust and Brokerage services.  Non-interest expense
consists of salaries and benefits, occupancy related expenses,
deposit insurance premiums, and other operating expenses.

The operations of the Bank, and financial institutions in
general, are significantly influenced by general economic
conditions and related monetary and fiscal policies of financial
institutions' regulatory agencies.  Deposit flows and the cost
of funds are influenced by interest rates on competing
investments and general market rates of interest.  Lending
activities are affected by the demand for financing real estate
and other types of loans, which in turn is affected by the
interest rates at which such financing may be offered and other
factors affecting loan demand and the availability of funds.

BUSINESS STRATEGY

New management joined the Bank in 1995 and the managerial
structure has developed in accordance with new business
strategies intended to increase presence, new market segment
penetration, and overall market share in its primary market area
of Effingham County, Illinois ("Primary Market Area").  These
new strategies, under the guidance and implementation of the
newly formed management team, have increased lending activities,
non-traditional banking services activities, and sources of fee
income.  New business development strategies include (i) hiring
of experienced commercial banking personnel including a new
Chief Credit Officer, Chief Administrative Officer, Controller,
and a Trust and Investment Management Officer; (ii) instituting
a manager call program encouraging direct contact with local
businesses, property developers, realtors, home builders, auto
dealers and others; (iii) improving customer service, educating
staff, and developing a sales culture bank wide.  Illinois
Leasing Corporation, Inc., a subsidiary of the holding company,
has provided enhanced services in its first year of operation in
the form of commercial equipment leasing and alternatives to
traditional commercial lending.  The Bank's Trust and Investment
Management Center began operations in April, 1997.  Full service
brokerage and investment management services, offered at the
bank through our affiliate PRIMEVEST Financial Services, allows
the Bank to better serve our customers' overall long term
investment and financial planning needs.

                                8<PAGE>
<PAGE>
                    ILLINOIS COMMUNITY BANCORP, INC. 

          Management's Discussion and Analysis of Financial
                  Condition and Results of Operations

LIQUIDITY AND CAPITAL RESOURCES

The Bank's primary sources of funds consist of deposits,
repayment and prepayment of loans and mortgage-backed
securities, maturities of investments and interest-bearing
deposits, and funds provided from operations.  While schedules
repayments of loans and mortgage-backed securities and
maturities of investment securities are predictable sources of
funds, deposit flows and loan prepayments are greatly influenced
by the general level of interest rates, economic conditions and
competition.   The Bank uses its liquidity resources principally
to fund existing and future loan commitments, to fund maturing
certificates of deposit and demand deposit withdrawals, to
invest in other interest-earning assets, to maintain liquidity,
and to meet operating expenses.  Liquidity management is both a
daily and long-term function of management.  If the Bank
requires funds beyond its ability to generate internally, the
Bank believes it could borrow additional funds from the FHLB. 
The Bank requested additional advances of $500,000 from the FHLB
during the quarter ended September 30, 1997.

The primary investing activity of the Bank is the origination of
loans.  During the quarter ended September 30, 1997, purchases
of investment securities totaled $2.3 million while loan
origination's totaled $6.8 million.  These investments were
funded primarily from loan and mortgage-backed security
repayments of $6.1 million, sales of loans to FHLMC of $747,000,
and investment security maturities and sales of $2.5 million.

At September 30, 1997, the Bank had $2.6 million in outstanding
commitments to originate loans and $1.3 million of unused lines
of credit.  The Bank anticipates that it may not have sufficient
funds available to meet its current loan origination commitments
and additional advances from FHLB may be requested. 
Certificates of deposit which are scheduled to mature in one
year or less totaled $16.7 million at September 30, 1997.  Based
on historical experience, management believes that a significant
portion of such deposits will remain with the Bank.

ASSET/LIABILITY MANAGEMENT

The principal operating objective of the Bank is the achievement
of a positive interest rate spread that can be sustained during
fluctuations in prevailing interest rates.  Since the Bank's
principal interest-earning assets have substantially longer
terms to maturity than its primary source of funds, i.e.,
deposit liabilities, increase in general interest rates will
generally result in an increase in the Bank's cost of funds
before the yield on its asset portfolio adjusts upwards. Savings
institutions have generally sought to reduce their exposure to
adverse changes in interest rates by attempting to achieve a
closer match between the periods in which their interest-bearing
liabilities and interest-earning assets can be expected to
reprice through the origination of adjustable-rate mortgages and
loans with shorter terms.

The term "interest rate sensitivity" refers to those assets and
liabilities which mature and reprice periodically in response to
fluctuations in market rates and yields.  Thrift institutions
have historically operated in a mismatched position with
interest-sensitive liabilities greatly exceedin
interest-sensitive assets in the short-term time periods.  As
noted above, one of the principal goals of the Bank's 
asset/liability program is to more closely match the interest
rate sensitivity characteristics of the asset and liability
portfolios.

In order to properly manage interest rate risk, the Bank's
management monitors the difference between the Bank's maturing
and repricing assets and liabilities and develops and implements
strategies to decrease the "negative gap" between the two. 
Management assesses the Bank's asset/liability mix, recommends
strategies to the Board of Directors that will enhance income
while managing the Bank's vulnerability to changes in interest
rates, and reports to the Board of Directors the results of the
strategies used.

                               9<PAGE>
<PAGE>
                    ILLINOIS COMMUNITY BANCORP, INC. 

           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations


ASSET/LIABILITY MANAGEMENT (CONT.)

Since the early 1980's, the Bank has stressed the origination of
adjustable rate mortgage loans.  At September 30, 1997, the Bank
had 22.0 million, or 48.7% of total loans, of adjustable or
fixed rate loans either repricing or maturing in one year or
less.  In addition, the Bank had $303,000 in adjustable rate
mortgage-backed securities at September 30, 1997.

In order to increase the interest rate sensitivity of its
assets, the Bank has also maintained a consistent level of short
and intermediate-term investment securities and other assets. 
At September 30, 1997, the Bank had $603,000 of investment
securities including mortgage-backed securities and
interest-bearing deposits maturing within one year and $3.4
million maturing within one to five years.  At September 30,
1997, the Bank also had $4.2 million in investment securities
including mortgage-backed securities maturing after five years,
of which $1.5 million represented the Bank's investment in an
asset management adjustable rate fund, which is an uninsured
mutual fund, which thereby carries greater risk than government
insured investment securities.

In the future, in managing its interest rate sensitivity, the
Bank intends to continue to stress the origination of
adjustable-rate mortgages and loans with shorter maturities, the
purchase of adjustable rate mortgage-backed securities and the
maintenance of a consistent level of short-term securities.  In
addition, the Bank has increased its origination of fixed-rate
mortgage loans, and then sell such loans in the secondary
mortgage market to FHLMC.

REGULATORY CAPITAL

The Company is regulated by the Board of Governors of the
Federal Reserve System ("FRB") and is subject to securities
registration and public reporting regulations of the Securities
and Exchange Commission.  The Bank is regulated by the Federal
Deposit Insurance Corporation ("FDIC") and the Illinois
Commissioner of Banks and Real Estate (the "Commissioner").

The Bank is subject to the capital requirements of the FDIC and
the Commissioner.  The FDIC requires the Bank to maintain
minimum ratios of tier 1 capital to total risk-weighted assets
and total capital to risk-weighted assets of 4% and 8%,
respectively.  Tier 1 capital consists of total shareholders
equity calculated in accordance with generally accepted
accounting principles less intangible assets, and total capital
is comprised of Tier 1 capital plus certain adjustments, the
only one of which is applicable to the Bank is the allowance for
possible loan losses.  Risk-weighted assets refer to the on-and
off-balance sheet exposures of the Bank adjusted for relative
risk levels using formulas set forth in FDIC regulations.  The
Bank is also subject to a FDIC leverage capital requirement,
which calls for a minimum ratio of Tier 1 capital (as defined
above) to quarterly average total assets of 3% to 5%, depending
on the institution's composite ratings as determined by its
regulators.

                               10<PAGE>
<PAGE>
                     ILLINOIS COMMUNITY BANCORP, INC.

             Management's Discussion and Analysis of Financial
                   Condition and Results of Operations

REGULATORY CAPITAL

At September 30, 1997, the Bank was in compliance with all of
the aforementioned capital requirements as summarized below:
                                                                 
                                                September 30,
                                                    1997
                                                ------------
                                                 (1,000's)   
                                                ------------
Tier I Capital:
  Common stockholders' equity                    $ 6,359
  Unrealized holding loss (gain) on 
    securities available for sale                   (165)
                                                 -------
    Total Tier I capital                         $ 6,194 
                                                 =======
Tier II Capital:
  Total Tier I capital                           $ 6,194 
  Qualifying allowance for loan losses               360 
                                                 -------
      Total capital                              $ 6,554 
                                                 =======
Risk-weighted assets                             $39,817 
Quarter average assets                           $59,093 

<TABLE>
<CAPTION>
                                                                             To be Well Capitalized
                                                                               under the Prompt
                                                         For Capital           Corrective Action
                                       Actual        Adequacy Purposes            Provisions
                                    ---------------  -----------------       -------------------  
                                   Amount    Ratio   Amount      Ratio       Amount       Ratio        
                                   ------    -----   -------     -----       -------      -----
<S>                                <C>      <C>      <C>         <C>         <C>          <C>
As of September 30, 1997:
  Total Risk-Based Capital
    (to Risk-Weighted Assets)      $6,554   16.46%   $3,185      8.0%        $3,982       10.0%
  Tier I Capital
   (to Risk-Weighted Assets)        6,194   15.56%    1,593      4.0%         2,389        6.0%
  Tier I Capital
   (to Average Assets)              6,194   10.48%    2,364      4.0%         2,955        5.0%

</TABLE>
At the time of the conversion of the Bank to a stock
organization, a special liquidation account was established 
for the benefit of eligible account holders and the supplemental
eligible account holders in an amount equal to the net worth of
the Bank.  The special liquidation account will be maintained
for the benefit of eligible account holders and the supplemental
eligible accounts holders who continue to maintain their
accounts in the Bank after the conversion on September 27, 1995. 
In the event of a complete liquidation distribution from the
liquidation account in an amount proportionate to the current
adjusted qualifying balances for accounts then held.  With the
reorganization completed on September 27, 1996, this liquidation
account became part of stockholders' equity for the Company
under the same terms and conditions as if the reorganization had
not occurred.  The Company may not declare or pay cash dividends
on or repurchase any of its common stock if stockholders' equity
would be reduced below applicable regulatory capital
requirements or below the special liquidation account.

                            11<PAGE>
<PAGE>
                    ILLINOIS COMMUNITY BANKCORP, INC.

   Management's Discussion and Analysis of Financial Condition 
                      and Results of Operations

FINANCIAL CONDITION

The Bank's total assets decreased $219,000 or 0.37%, from $59.8
million at June 30, 1997, to $59.6 million at September 30,
1997.  The Bank continues to experience loan growth and
increased loan receivables by $195,000 or 0.43%, from $45.2
million at June 30, 1997 to $45.4 million at September 30, 1997. 
Deposits decreased $561,000 from $43.7 million at June 30, 1997,
to $43.1 million at September 30, 1997.  The deposits were not
sufficient to meet the demands of loan originations.  The Bank
had to request addition advances from the FHLB in the amount of
$500,000 during the quarter to fund the loan originations.

RESULTS OF OPERATIONS

Net income for the three months ended September 30, 1997 was
$121,000 compared to $(168,000) net loss for the three months
ended September 30, 1996.  This increase in net income of
$289,000 was primarily from the gain on sale of securities of
$212,000, a decrease in non-interest expense of $93,000, and a
reduction in loan loss provision of $66,000 which was offset
partially by an increase in provision for income taxes of
$148,000.

Net interest income for the three months ended September 30,
1997 was $420,000 compared to $401,000 for the three months
ended September 30, 1996.

Interest income increased by $173,000 from $895,000 to$1,068,000
or by 19.3%, during the 1997 period compared to the 1996 period. 
This increase is attributed to growth in interest earning assets
from $47.0 million at September 30, 1996 to $54.0 million at
September 30, 1997.  In addition, average yield on interest
earning assets increased from 7.79% to 7.97% for the quarters
ended September 30, 1996 and 1997, respectively.

Interest expense increased $154,000 or 31.2%, to $648,000 for
the three months ended September 30, 1997 from $494,000 for the
same period in 1996.  This increase was primarily from growth in
interest bearing liabilities from $43.4 million at September 30,
1996 to $51.9 million at September 30, 1997.

The allowance for loan losses is established through a provision
for loan losses based on management's evaluation of the risk
inherent in its loan portfolio and the general economy.  Such
evaluation considers numerous factors including, general
economic conditions, loan portfolio composition, prior loss
experience, the estimated fair value of the underlying
collateral and other factors that warrant recognition in
providing for an adequate loan loss allowance.  During the three
months ended September 30, 1997 and 1996, the Bank's provision
for loan losses was $16,000 and $82,000, respectively. 

The allowance for loan losses was $365,000 or .80% of loans
receivable at September 30, 1997, compared to $351,000, or .78%
of loans receivable at June 30, 1997.  The   Bank's level of
non-performing loans was 0.39% of total loans at June 30, 1997
compared to 0.59% as of September 30, 1997.  Based on current
reserve levels in relation to total loans receivable and
classified assets and the identification and diligent effort put
forth by management to address problem loan situations in recent
years, management believes its reserves are currently adequate.

Noninterest income was $291,000 for the three months ended
September 30, 1997 compared to $32,000 for the three months
ended September 30, 1996.  The increase in noninterest income
was largely due to sale of FHLMC stock, which resulted in a gain
of $212,000 in the 1997 period.
                              12<PAGE>
<PAGE>
                 ILLINOIS COMMUNITY BANCORP, INC.

   Management's Discussion and Analysis of Financial Condition 
                       and Results of Operations

RESULTS OF OPERATIONS (CONT.)

Noninterest expense decreased from $600,000 for the three months
ended September 30, 1996 to $507,000 for the three months ended
September 30, 1997.  This decrease of $93,000 resulted from the
one time SAIF special assessment of $211,000 during the quarter
ended September 30, 1996, which was not included in the 1997
results.  This decrease was partially offset by the increase in
compensation and employee benefits and occupancy and equipment
expense of $124,000 for the quarter ended September 30, 1997
compared to the 1996 period.  Primarily, these expenses
increased from the operation of the branch location opened in
January of 1997.

The Company's effective tax rate for the three months ended
September 30, 1997 and 1996 was approximately 36% and 33%,
respectively.

NONPERFORMING ASSETS

At September 30, 1997, the Bank had $313,000 in nonperforming
assets.  On September 30, 1996, the Bank had $221,000 in
nonperforming assets.

IMPACT OF INFLATION AND CHANGING PRICES

The unaudited consolidated financial statements and related data
presented herein have been prepared in accordance with generally
accepted accounting principles, which require the measurement of
financial position and results of operations in terms of
historical dollars without considering changes in the relative
purchasing power of money over time because of inflation. 
Unlike most industrial companies, virtually all of the assets
and liabilities of the Bank are monetary in nature.  As a
result, interest rates have a more significant impact on the
Bank's performance than the effects of general levels of
inflation.  Interest rates do not necessarily move in the same
direction or in the same magnitude as the prices of goods and
services.
                           13<PAGE>
<PAGE>
             PART II - OTHER INFORMATION

Item 1. Legal Proceedings
        -----------------

         None.

Item 2.  Changes in Securities
         ---------------------

         None.

Item 3.  Defaults Upon Senior Securities
         -------------------------------

         None.

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

         Not applicable.

Item 5.  Other Information
         -----------------

         None

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

         Exhibits:

         Exhibit 27 - Financial Data Schedule

         Reports on Form 8-K:

         None


<PAGE>
<PAGE>

                        SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.

                             Illinois Community Bancorp, Inc.



Date:  November 10, 1997    /s/ Douglas A. Pike
                            ----------------------------         
                            Douglas A. Pike
                            President and Chief Executive
                            Officer



Date: November 10, 1997     /s/ Ronald R. Schettler
                            ----------------------------         
                            Ronald R. Schettler
                            Senior Vice President and Chief
                            Financial Officer