FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

(Mark One)

[X]                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                     FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2000

                                       OR

[  ]                 TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File No. 000-22255

                          MARKET FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)


              Ohio                                       31-0462464
--------------------------------                   --------------------------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation of organization)                        Identification Number)

       7522 Hamilton Avenue
           Mt. Healthy, OH                                   45231
---------------------------------------                    ---------
(Address of principal executive office)                   (Zip Code)

Registrant's telephone number, including area code:  (513) 521-9772

Check whether the Registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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
    -----                                                   -------

As of February 9, 2001, the latest practicable date,  1,259,439 common shares of
the registrant, no par value, were issued and outstanding.









                                  Page 1 of 13
<PAGE>



                                      INDEX

                          MARKET FINANCIAL CORPORATION

                                                                         Page
PART I        -   FINANCIAL INFORMATION

                  Consolidated Statements of Financial Condition            3
                  Consolidated Statements of Earnings                       4
                  Consolidated Statements of Comprehensive Income           5
                  Consolidated Statements of Cash Flows                     6
                  Notes to Consolidated Financial Statements                8
                  Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                    10

PART II       -   OTHER INFORMATION                                        12

SIGNATURES                                                                 13































                                  Page 2 of 13
<PAGE>


                          Market Financial Corporation
<TABLE>
<CAPTION>

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                        (In thousands, except share data)

                                                                                      December 31,           September 30,
                                                                                          2000                   2000
ASSETS
<S>                                                                                       <C>                      <C>
Cash and due from banks                                                                   $   749                $   527
Federal funds sold                                                                            250                    100
Interest-bearing deposits in other financial institutions                                     187                    139
                                                                                           ------                 ------
          Cash and cash equivalents                                                         1,186                    766

Certificates of deposit in other financial institutions                                       300                    300
Investment securities - at amortized cost, approximate market
   value of $11,356 and $11,143 at December 31, 2000 and September 30, 2000
                                                                                           11,400                 11,400
Investment securities designated as available for sale - at market                          1,478                  1,160
Mortgage-backed securities - at cost, approximate market value of $1,800 and
   $1,829 at December 31, 2000 and September 30, 2000                                       1,787                  1,830
Loans receivable - net                                                                     38,381                 37,879
Office premises and equipment - at depreciated cost                                         1,457                  1,471
Federal Home Loan Bank stock - at cost                                                        491                    482
Accrued interest receivable                                                                   368                    371
Prepaid expenses and other assets                                                             382                    265
Prepaid federal income taxes                                                                  106                    163
                                                                                           ------                 ------
          Total assets                                                                    $57,336                $56,087
                                                                                           ======                 ======

Liabilities and SHAREHOLDERS' EQUITY
Deposits                                                                                  $41,230                $40,260
Advances by borrowers for taxes and insurance                                                 126                     70
Accrued interest payable                                                                      109                    105
Other liabilities                                                                             136                    272
Deferred federal income taxes                                                                 707                    625
                                                                                           ------                 ------
          Total liabilities                                                                42,308                 41,332

Shareholders' equity
   Preferred stock - 1,000,000 shares without par value authorized; no
    shares issued                                                                               -                      -
   Common stock - 4,000,000 shares without par value authorized;
    1,335,725 shares issued                                                                     -                      -
   Additional paid-in capital                                                               8,176                  8,160
   Retained earnings - substantially restricted                                             7,843                  7,892
   Shares acquired by stock benefit plans                                                  (1,114)                (1,211)
   Treasury stock - 76,286 shares of treasury stock - at cost                                (838)                  (838)
   Accumulated comprehensive income, unrealized gain on securities designated
    as available for sale, net of related tax effects                                         961                    752
                                                                                           ------                 ------
          Total shareholders' equity                                                       15,028                 14,755
                                                                                           ------                 ------
          Total liabilities and shareholders' equity                                      $57,336                $56,087
                                                                                           ======                 ======

</TABLE>



                                  Page 3 of 13

<PAGE>


                          Market Financial Corporation
<TABLE>
<CAPTION>

                       CONSOLIDATED STATEMENTS OF EARNINGS

                      (In thousands, except per share data)

                                                                Three months ended December 31,
                                                                    2000                1999
<S>                                                                  <C>                 <C>
Interest income
  Loans                                                             $727                $674
  Mortgage-backed securities                                          35                  38
  Investment securities                                              208                 206
  Interest-bearing deposits and other                                 13                  29
                                                                     ---                 ---
    Total interest income                                            983                 947
Interest expense
  Deposits                                                           524                 454
                                                                     ---                 ---
       Net interest income                                           459                 493

Other operating income                                                 6                   3

General, administrative and other expense
   Employee compensation and benefits                                211                 221
   Occupancy and equipment                                            42                  26
   Federal deposit insurance premiums                                  6                   6
   Franchise taxes                                                    47                  46
   Other operating                                                    80                  71
                                                                     ---                 ---
     Total general, administrative and
       other expense                                                 386                 370
                                                                     ---                 ---

        Earnings before income taxes                                  79                 126

Federal income taxes
   Current                                                            53                  62
   Deferred                                                          (26)                (19)
                                                                     ---                 ---
      Total federal income taxes                                      27                  43
                                                                     ---                 ---

        Net Earnings                                                $ 52                $ 83
                                                                     ===                 ===

        Earnings per share
              Basic                                                 $.04                $.07
                                                                     ===                 ===
              Diluted                                               $.04                $.07
                                                                     ===                 ===
</TABLE>







                                  Page 4 of 13
<PAGE>


                          Market Financial Corporation
<TABLE>
<CAPTION>

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                 (In thousands)

                                                                                    For the three months
                                                                                      ended December 31,
                                                                                   2000                1999
<S>                                                                                <C>                  <C>
Net earnings                                                                       $ 52                $ 83

Other comprehensive income (loss), net of tax:
     Unrealized holding gains (losses) on securities net of taxes
       (benefits) of $108 and $(36) during 2000 and 1999, respectively              209                 (69)
                                                                                    ---                 ---

Comprehensive income                                                               $261                $ 14
                                                                                    ===                 ===

Accumulated comprehensive income                                                   $961                $653
                                                                                    ===                 ===
</TABLE>

























                                  Page 5 of 13

<PAGE>



                          Market Financial Corporation
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                           Three months ended December 31,
                                                                               2000               1999
                                                                                    (In thousands)
<S>                                                                             <C>                 <C>
Cash flows from operating activities:
  Net earnings for the period                                                 $   52             $   83
  Adjustments to reconcile net earnings to net cash provided by (used
    in) operating activities
  Amortization of premiums and discounts on investments and
    mortgage-backed securities, net                                                -                  1
  Depreciation and amortization                                                   14                  9
  Amortization of deferred loan origination costs                                  2                  -
  Amortization of expense related to stock benefit plans                         113                 97
  Federal Home Loan Bank stock dividends                                          (9)                (8)
  Increase (decrease) in cash due to changes in:
    Accrued interest receivable                                                    3                 (9)
    Accrued interest payable                                                       4                  2
    Prepaid expenses and other assets                                           (117)               (82)
    Other liabilities                                                           (136)               (62)
    Federal income taxes
      Current                                                                     57                (16)
      Deferred                                                                   (26)               (19)
                                                                               -----              -----
        Net cash used in operating activities                                    (43)                (4)

Cash flows provided by (used in) investing activities:
  Principal repayments on mortgage-backed securities                              43                 71
  Proceeds from maturity of investment securities                                  -              1,500
  Loan disbursements                                                          (1,288)            (1,721)
  Principal repayments on loans                                                  783              1,080
  Purchase of investment securities designated as held to maturity                 -               (200)
  Purchase of office equipment and building improvements                           -               (228)
  Increase in certificates of deposits in other financial
   institutions - net                                                              -               (205)
                                                                               -----              -----
        Net cash provided by (used in) investing activities                     (462)               297

Cash flows provided by (used in) financing activities:
   Net increase in deposits                                                      970                114
   Advances by borrowers for taxes and insurance                                  56                 49
   Dividends paid on common stock                                               (101)              (101)
                                                                               -----              -----
        Net cash provided by financing activities                                925                 62
                                                                               -----              -----
        Net increase in cash and cash equivalents (balance carried
          forward)                                                               420                355
                                                                               -----              -----
</TABLE>








                                  Page 6 of 13

<PAGE>


                          Market Financial Corporation
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                           Three months ended December 31,
                                                                               2000               1999
                                                                                   (In thousands)
<S>                                                                             <C>                <C>
        Net increase in cash and cash equivalents (balance brought
          forward)                                                            $  420             $  355

Cash and cash equivalents at beginning of period                                 766              2,291
                                                                               -----              -----
Cash and cash equivalents at end of period                                    $1,186             $2,646
                                                                               =====              =====


Supplemental  disclosure of cash flow  information:
  Cash paid during the period for:
     Federal income taxes                                                     $    -             $   79
                                                                               =====              =====
     Interest on deposits and borrowings                                      $  520             $  452
                                                                               =====              =====

Supplemental disclosure of noncash investing activities:
    Unrealized gains (losses) on securities designated as available
       for sale, net of related tax effects                                   $  209             $  (69)
                                                                               =====              =====
</TABLE>

























                                  Page 7 of 13

<PAGE>


                          MARKET FINANCIAL CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        For the three month periods ended
                           December 31, 2000 and 1999

1.       Basis of Presentation

         The  accompanying  unaudited  consolidated  financial  statements  were
prepared in accordance with instructions for Form 10-QSB, and, therefore, do not
include  information  or  footnotes  necessary  for  complete   presentation  of
financial  position,  results of operations  and cash flows in  conformity  with
generally  accepted   accounting   principles.   Accordingly,   these  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes thereto of Market Financial Corporation ("MFC") included in
the Annual Report on Form 10-KSB for the year ended September 30, 2000. However,
in the  opinion  of  management,  all  adjustments  (consisting  of only  normal
recurring   accruals)   which  are  necessary  for  fair   presentation  of  the
consolidated  financial statements have been included. The results of operations
for the three  month  periods  ended  December  31,  2000,  are not  necessarily
indicative of the results which may be expected for the entire fiscal year.

2.       Principles of Consolidation

         The accompanying consolidated financial statements include the accounts
of MFC  and its  wholly  owned  subsidiary,  the  Market  Bank  ("Market").  All
significant intercompany items have been eliminated.

3.       Effects of Recent Accounting Pronouncements

         In June 1998, the Financial  Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards ("SFAS") No. 133,  "Accounting for
Derivative  Instruments  and Hedging  Activities,"  which  requires  entities to
recognize  all  derivatives  in their  financial  statements as either assets or
liabilities  measured at fair value.  SFAS No. 133 also specifies new methods of
accounting for hedging transactions,  prescribes the items and transactions that
may be hedged,  and specifies  detailed  criteria to be met to qualify for hedge
accounting.

         The definition of a derivative  financial instrument is complex, but in
general it is an instrument  with one or more  underlyings,  such as an interest
rate or foreign exchange rate, that is applied to a notional amount,  such as an
amount of currency, to determine the settlement amount(s). It generally requires
no  significant  initial  investment and can be settled net or by delivery of an
asset that is readily  convertible to cash.  SFAS No. 133 applies to derivatives
embedded in other contracts, unless the underlying of the embedded derivative is
clearly and closely related to the host contract.

         SFAS No. 133, as amended by SFAS No. 137, is effective for fiscal years
beginning  after June 15, 2000. On adoption,  entities are permitted to transfer
held-to-maturity  debt securities to the  available-for-sale or trading category
without  calling into  question  their intent to hold other debt  securities  to
maturity in the future.  Management  adopted SFAS No. 133  effective  October 1,
2000,  as  required,  without  material  impact on MFC's  financial  position or
results of operations.

         In  September  2000,  the FASB  issued  SFAS No.  140  "Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,"
which  revises  the  standards  for  accounting  for  securitizations  and other
transfers of financial assets and collateral and requires  certain  disclosures,
but carries over most of the provisions of SFAS No. 125 without reconsideration.
SFAS No. 140 is effective for  transfers  and servicing of financial  assets and
extinguishments of liabilities  occurring after March 31, 2001. The Statement is
effective for recognition and reclassification of collateral and for disclosures
relating to  securitization  transactions and collateral for fiscal years ending
after December 15, 2000.  SFAS No. 140 is not expected to have a material effect
on MFC's financial position or results of operations.







                                  Page 8 of 13
<PAGE>



4.       Earnings Per Share

         Basic  earnings per share is computed  based upon the weighted  average
shares  outstanding  during  the  period,  less  shares  in the  ESOP  that  are
unallocated  and not committed to be released.  Weighted  average  common shares
outstanding,  which gives effect to 72,814 and 84,096  unallocated  ESOP shares,
totaled  1,186,625  and  1,175,343  shares  for the three  month  periods  ended
December 31, 2000 and 1999, respectively. Diluted earnings per share is computed
taking into  consideration  common  shares  outstanding  and dilutive  potential
common  shares to be issued  under MFC's  stock  option  plan.  Weighted-average
shares  outstanding for purposes of computing diluted earnings per share totaled
1,211,869 and  1,175,343 for the three months ended  December 31, 2000 and 1999,
respectively.  Incremental  shares  related  to the  assumed  exercise  of stock
options  totaled  25,244 for the three month  period  ended  December  31, 2000.
Options to  purchase  125,558  shares of common  stock  with a  weighted-average
exercise  price of $9.6875  were  outstanding  at December  31,  1999,  but were
excluded from the  computation of common stock  equivalents  for the three month
period ended  December 31, 1999,  because their  exercise price was greater than
the average market price of the common shares.

5.       Pending Merger

         On  September  19,  2000,  MFC entered  into an  Agreement  and Plan of
Reorganization  (the  "Agreement")  whereby  MFC  would be merged  into  Peoples
Community  Bancorp,  Inc.  ("Peoples") for total  consideration of approximately
$16.4 million in either cash or common stock.  Under the terms of the Agreement,
each common share of MFC will be  exchanged  for either cash of $13.00 per share
or Peoples common shares with an equivalent value,  based on the average closing
prices of Peoples  stock over a 20 trading day period  ending the day before the
effective date of the merger.


























                                  Page 9 of 13
<PAGE>


                          MARKET FINANCIAL CORPORATION
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

                    Note Regarding Forward-Looking Statements

         In addition to historical  information  contained herein, the following
discussion   contains   forward-looking   statements   that  involve  risks  and
uncertainties.  Economic  circumstances,  Market's operations and actual results
could  differ   significantly  from  those  discussed  in  the   forward-looking
statements.  Some  of the  factors  that  could  cause  or  contribute  to  such
differences  are  discussed  herein but also include  changes in the economy and
interest rates in the nation and MFC's market area generally.

         Some  of  the  forward-looking   statements  included  herein  are  the
statements  regarding  management's  determination of the amount and adequacy of
the   allowance   for  loan   losses  and  the  effect  of  certain   accounting
pronouncements.

Discussion of Financial  Condition  Changes from September 30, 2000, to December
31, 2000

         MFC's assets at December 31, 2000, totaled approximately $57.3 million,
a $1.2 million,  or 2.2%,  increase  over the total at September  30, 2000.  The
increase  was  funded  through  growth  in  deposits  and  unrealized  gains  on
securities designated as available for sale.

         Liquid assets (cash and cash  equivalents and  certificates of deposit)
totaled $1.5 million at December  31, 2000,  an increase of $420,000,  or 39.4%,
over the total at  September  30,  2000.  Investment  securities  totaled  $12.9
million at December 31, 2000, an increase of $318,000, or 2.5%, over the balance
at  September  30, 2000.  The increase was due to an increase in the  unrealized
gain on available for sale securities.

         Loans  receivable  totaled  $38.4  million at  December  31,  2000,  an
increase of $502,000,  or 1.3%, over September 30, 2000. This increase  resulted
primarily  from loan  originations  of $1.3 million,  which  exceeded  principal
repayments of $783,000.  Market's  allowance for loan losses totaled  $52,000 at
both December 31, 2000 and September 30, 2000. The allowance represented .14% of
total loans at both  December 31, 2000 and  September  30,  2000.  Nonperforming
loans  totaled  $126,000  and  $272,000,  or .33% and .71% of  total  loans,  at
December 31, 2000 and September 30, 2000, respectively.

         Although  management  believes  that its  allowance  for loan losses at
December  31,  2000,   was  adequate   based  upon  the   available   facts  and
circumstances,  there can be no assurance  that additions to such allowance will
not be  necessary  in future  periods,  which could  adversely  affect  Market's
results of operations.

         Deposits  totaled  $41.2  million at December 31, 2000,  an increase of
$970,000,  or 2.4%,  over the  total at  September  30,  2000.  Demand  accounts
increased by approximately  $310,000,  and certificates of deposit  increased by
$660,000  during the quarter  ended  December  31,  2000.  At December 31, 2000,
certificates  of deposit that will mature within one year accounted for 56.8% of
Market's deposit liabilities.

         Market is  required  to meet each of three  minimum  capital  standards
promulgated  by the  Office  of  Thrift  Supervision  (the  "OTS"),  hereinafter
described as the tangible capital requirement,  the core capital requirement and
the risk-based capital  requirement.  The tangible capital requirement  provides
for the maintenance of shareholders'  equity less all intangible assets equal to
1.5% of adjusted  total assets.  The core capital  requirement  provides for the
maintenance of tangible capital plus certain forms of supervisory goodwill equal
to at least 4.0% of adjusted  total  assets,  except for  institutions  with the
highest  examination  rating and acceptable levels of risk, while the risk-based
capital requirement  mandates maintenance of core capital plus general loan loss
allowances equal to 8% of risk-weighted assets as defined by OTS regulations. As
of December 31, 2000,  Market's tangible and core capital totaled $12.6 million,
or 22.8% of adjusted total assets,  which exceeded the minimum  requirements  of
$832,000 and $2.2 million, by $11.8 million and $10.4 million,  respectively. As
of December 31, 2000, Market's risk-based capital was $13.3 million, or 43.8% of
risk-weighted assets, exceeding the minimum requirement by $10.9 million.








                                 Page 10 of 13
<PAGE>


Comparison of Operating  Results for the Three-Month  Periods Ended December 31,
2000 and 1999

General

         Net earnings  totaled  $52,000 for the three months ended  December 31,
2000, a $31,000,  or 37.3%,  decrease from the $83,000 of net earnings  recorded
for the three months ended December 31, 1999. The decrease in earnings  resulted
primarily  from a  $34,000,  or 6.9%,  decrease  in net  interest  income  and a
$16,000, or 4.3%, increase in general,  administrative and other expense,  which
were partially  offset by a $16,000 decrease in the provision for federal income
taxes.

Net Interest Income

         Interest  income  increased by $36,000,  or 3.8%,  for the three months
ended  December 31, 2000,  compared to the three months ended December 31, 1999.
The increase resulted primarily from an increase in loans outstanding, which was
partially  offset by a decrease in the balance of  interest-bearing  deposits in
other financial  institutions  during the period.  Interest  expense on deposits
increased  by $70,000,  or 15.4%,  due  primarily  to an increase in the cost of
deposits, coupled with an increase in the deposit portfolio. Net interest income
decreased by $34,000,  or 6.9%,  for the three  months ended  December 31, 2000,
compared to the same quarter in 1999.

Provision for Losses on Loans

         A  provision  for losses on loans is charged to  earnings  to bring the
total  allowance  to a level  considered  appropriate  by  management  based  on
historical  experience,  the volume and type of lending conducted by Market, the
status of past due principal and interest payments, general economic conditions,
particularly  as such  conditions  relate to  Market's  market  area,  and other
factors related to the collectibility of Market's loan portfolio. As a result of
such analysis,  management  decided no additional  provision for losses on loans
was  necessary  during the quarter  ended  December  31,  2000.  There can be no
assurance,  however,  that the  allowance  for loan  losses  of  Market  will be
adequate to cover losses on nonperforming assets in the future.

         Factors  that could  affect  the  adequacy  of the loan loss  allowance
include, but are not limited to, the following:  (1) changes in the national and
local  economy  which may  negatively  impact the ability of  borrowers to repay
their  loans and which may cause the value of real  estate and other  properties
that secure  outstanding  loans to decline;  (2) unforeseen  adverse  changes in
circumstances  with respect to uncertain large loan borrowers;  (3) decreases in
the value of collateral securing consumer loans to amounts equal to or less than
the  outstanding  balances of the  consumer  loans;  and (4)  determinations  by
various  regulatory  agencies that Market must  recognize  additions to its loan
loss allowance based on such  regulators'  judgment of information  available to
them at the time of their examinations.

Other Operating Income

         Other  operating  income,  primarily  service  fees on money orders and
travelers' checks,  totaled $6,000 and $3,000 for the three-month  periods ended
December 31, 2000 and 1999, respectively.

General, Administrative and Other Expense

         General,  administrative  and other  expense  increased by $16,000,  or
4.3%, for the quarter ended  December 31, 2000,  compared to the same quarter in
1999.  The increase  resulted  primarily from a $16,000,  or 61.5%,  increase in
occupancy  and  equipment and a $9,000,  or 12.7%,  increase in other  operating
expense, which were partially offset by a $10,000, or 4.5%, decrease in employee
compensation  and  benefits.  The increase in occupancy  and  equipment  was due
primarily to depreciation and other costs related to the remodeling additions to
the main  office.  The decline in employee  compensation  and  benefits  was due
primarily to a reduction in staffing levels year to year.

Federal Income Tax

         The  provision for federal  income taxes totaled  $27,000 for the three
months ended  December 31, 2000,  compared to $43,000 for the same 1999 quarter.
The $16,000, or 37.2%,  decrease resulted from a $47,000, or 37.3%,  decrease in
earnings  before  taxes.  The  effective  tax rates were 34.2% and 34.1% for the
three months ended December 31, 2000 and 1999, respectively.



                                 Page 11 of 13
<PAGE>


                                     PART II
                          MARKET FINANCIAL CORPORATION

Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

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

         No applicable.

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         Exhibits:                  None

         Reports on Form 8-K:       None





















                                 Page 12 of 13
<PAGE>


                                   SIGNATURES

                          MARKET FINANCIAL CORPORATION


         Pursuant to the  requirements  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.


Date:    2/14/01                  By: /s/John T. Larimer
                                      ----------------------------------------
                                      John T. Larimer, President and
                                          Managing Officer



Date     2/14/01                  By: /s/Julie M. Bertsch
                                      ----------------------------------------
                                      Julie M. Bertsch, Chief Financial Officer











































                                  Page 13 of 13