|[X] | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
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|[    ] | Transition report under Section 13 or 15(d) of the Exchange Act
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|Maryland*(State or other jurisdiction**of incorporation or organization)* | 04-3627031*(I.R.S. employer**identification no.)*
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|PART I -      | FINANCIAL INFORMATION                                                                                                         |       
|------------- | ----------------------------------------------------------------------------------------------------------------------------- | ------
|              |                                                                                                                               |       
|Item 1 -      | Condensed Financial Statements:                                                                                               |       
|              |                                                                                                                               |       
|              | Condensed Consolidated Balance Sheets - September 30, 2002 and

December 31, 2001                                             | 1     
|              |                                                                                                                               |       
|              | Condensed Consolidated Statements of Income - Three and Nine MonthsEnded September 30, 2002 and 2001                          | 2     
|              |                                                                                                                               |       
|              | Condensed Consolidated Statements of Changes in Stockholder's Equity -Three and Nine Months Ended September 30, 2002 and 2001 | 3     
|              |                                                                                                                               |       
|              | Condensed Consolidated Statements of Cash Flow - Nine Months endedSeptember 30, 2002 and 2001                                 | 4     
|              |                                                                                                                               |       
|              | Notes to Condensed Consolidated Financial Statements                                                                          | 5     
|              |                                                                                                                               |       
|Item 2 -      | Management's Discussion and Analysis of Financial Condition andResults of Operations                                          | 6 - 11
|              |                                                                                                                               |       
|Item 3 -      | Controls and Procedures                                                                                                       | 11    
|              |                                                                                                                               |       
|PART II -     | OTHER INFORMATION                                                                                                             |       
|              |                                                                                                                               |       
|Item 1 -      | Legal Proceedings                                                                                                             | 12    
|              |                                                                                                                               |       
|Item 2 -      | Changes in Securities                                                                                                         | 12    
|              |                                                                                                                               |       
|Item 3 -      | Defaults Upon Senior Securities                                                                                               | 12    
|              |                                                                                                                               |       
|Item 4 -      | Submission of Matters to a Vote of Security Holders                                                                           | 12    
|              |                                                                                                                               |       
|Item 5 -      | Other Information                                                                                                             | 12    
|              |                                                                                                                               |       
|Item 6 -      | Exhibits and Reports on Form 8-K                                                                                              | 12    
|              |                                                                                                                               |       
|SIGNATURES    | 13                                                                                                                           
|              |                                                                                                                               |       
|CERTIFICATION | 14-16                                                                                                                        

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|                                                                          | (unaudited)September30, 2002                                                                                                           | December 31,
2001**                       
|------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------
|                                                                          | (Dollars in thousands)                                                                                                                
|ASSETS                                                                    |                                                                                                                                        |                                           
|                                                                          |                                                                                                                                        |                                           
|Cash and due from banks                                                   | $    5,194                                                                                                                             | $    4,277                                
|Federal Home Loan Bank overnight time and other interest bearing deposits | 31,180                                                                                                                                 | 12,035                                    
|                                                                          |                                                                                                                                        | Total cash and cash equivalents           
|                                                                          |                                                                                                                                        |                                           
|Trading assets                                                            | -                                                                                                                                      | 258                                       
|Securities-Available for sale                                             | 1,039                                                                                                                                  | -                                         
|Securities - Held to maturity                                             | 290                                                                                                                                    | 367                                       
|Other securities                                                          | 2,806                                                                                                                                  | 2,552                                     
|Real estate investment - Limited partnership, at equity                   | 1,500                                                                                                                                  | 1,500                                     
|Loans held for sale                                                       | 3,833                                                                                                                                  | -                                         
|Loans, net of allowance for loan losses                                   | 140,837                                                                                                                                | 137,721                                   
|Accrued interest receivable                                               | 1,155                                                                                                                                  | 1,201                                     
|Foreclosed assets, net                                                    | 2,424                                                                                                                                  | 2,437                                     
|Premises and equipment                                                    | 4,649                                                                                                                                  | 4,928                                     
|Deferred income taxes                                                     | 603                                                                                                                                    | 485                                       
|Other assets                                                              | 699                                                                                                                                    | 923                                       
|                                                                          |                                                                                                                                        |                                           
|                                                                          |                                                                                                                                        | Total assets                              
|                                                                          |                                                                                                                                        |                                           
|LIABILITES AND EQUITY                                                     |                                                                                                                                        |                                           
|                                                                          |                                                                                                                                        |                                           
|Deposits:                                                                 |                                                                                                                                        |                                           
|                                                                          | Noninterest-bearing                                                                                                                    | $    4,643                                
|                                                                          | Interest-bearing                                                                                                                       | 96,480                                    
|                                                                          |                                                                                                                                        | Total deposits                            
|                                                                          |                                                                                                                                        |                                           
|Federal Home Loan Bank advances                                           | 55,500                                                                                                                                 | 45,500                                    
|Accrued expenses and other liabilities                                    | 3,294                                                                                                                                  | 2,121                                     
|                                                                          |                                                                                                                                        |                                           
|                                                                          |                                                                                                                                        | Total liabilities                         
|                                                                          |                                                                                                                                        |                                           
|Commitments and contingent liabilities                                    | -                                                                                                                                      | -                                         
|                                                                          |                                                                                                                                        |                                           
|Stockholder's Equity                                                      |                                                                                                                                        |                                           
|                                                                          | Common stock - $0.01 par value
   authorized - 20,000,000 shares
   issued and outstanding - 2,314,375 shares
   at September 30, 2002 | 23                                        
|                                                                          | Additional paid in capital                                                                                                             | 22,124                                    
|                                                                          | Retained earnings                                                                                                                      | 15,997                                    
|                                                                          | Unearned compensation                                                                                                                  | (1,852)                                   
|                                                                          | 36,292                                                                                                                                 | 15,365                                    
|                                                                          |                                                                                                                                        |                                           
|                                                                          |                                                                                                                                        | Total liabilities and stockholder's equity

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|                                    | (unaudited)                          
|----------------------------------- | -------------------------------------
|                                    | Three MonthsEndedSeptember 30,2002   
|                                    | (Dollars in thousands)               
|Interest Income                     |                                      
|                                    | Loans, including fees                
|                                    | Investment securities                
|                                    | Federal Home Loan Bank               
|                                    |                                      
|                                    |                                      
|Interest Expense                    |                                      
|                                    | Deposits                             
|                                    | Federal Home Loan Bank advances      
|                                    |                                      
|                                    |                                      
|Net Interest Income                 | 1,638                                
|                                    |                                      
|Provision for Loan Losses           | 100                                  
|                                    |                                      
|Net Interest Income after Provision |                                      
|                                    | for Loan Losses                      
|                                    |                                      
|Noninterest Income                  |                                      
|                                    | Fees and service charges             
|                                    | Loan servicing fees                  
|                                    | Net gain on sale of loans            
|                                    | Net gain (loss) on trading activities
|                                    | Net gain (loss) on disposal of       
|                                    |                                      
|                                    | Other income (loss)                  
|                                    |                                      
|                                    |                                      
|Noninterest Expenses                |                                      
|                                    | Salaries and employee benefits       
|                                    | Occupancy and equipment              
|                                    | Data processing                      
|                                    | Mortgage banking                     
|                                    | NOW account expense                  
|                                    | Professional services                
|                                    | Office supplies and forms            
|                                    | Advertising and promotion            
|                                    | Other general and administrative     
|                                    |                                      
|                                    |                                      
|Income - Before Income Taxes        | 358                                  
|                                    |                                      
|Income Taxes                        | 121                                  
|                                    |                                      
|Net Income                          | $   237                              

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|                            | CommonStock                | Additional
Paid in
Capital | Unearned
Comp | Retained
Earnings | Total  
|--------------------------- | -------------------------- | -------------------------- | ------------- | ----------------- | -------
|                            | (Dollars in thousands)    
|                            |                            |                            |               |                   |        
|Balance, January 1, 2001    | $            -             | $           -              | $           - | $14,606           | $14,606
|                            |                            |                            |               |                   |        
|Comprehensive Income -      |                            |                            |               |                   |        
|                            | Net Income                 |                            |               |                   | 605    
|                            |                            |                            |               |                   |        
|Balance, September 30, 2001 | $            -             | $           -              | $           - | $15,211           | $15,211
|                            |                            |                            |               |                   |        
|                            |                            |                            |               |                   |        
|Balance January 1, 2002     | $            -             | $           -              | $           - | $15,365           | $15,365
|                            |                            |                            |               |                   |        
|Issuance of common stock in |                            |                            |               |                   |        
|                            | connection with the Bank's |                            |               |                   |        
|                            | conversion from mutual to  |                            |               |                   |        
|                            | stock-owned holding        |                            |               |                   |        
|                            | company                    | 23                         | 22,124        | (1,852)           |        
|                            |                            |                            |               |                   |        
|Comprehensive Income -      |                            |                            |               |                   |        
|                            | Net Income                 |                            |               |                   | 632    
|                            |                            |                            |               |                   |        
|Balance, September 30, 2002 | $         23               | $22,124                    | $(1,852)      | $15,997           | $36,292

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|                                          | Nine Months EndedSeptember 30, 2002                      | Nine Months Ended
September 30, 2001                
|----------------------------------------- | -------------------------------------------------------- | ----------------------------------------------------
|                                          | (Dollars in thousands)                                  
|Cash Flows from Operating Activities      |                                                          |                                                     
|                                          | Net income                                               | $     632                                           
|                                          |                                                          | Adjustments to reconcile net income to net cash from
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|Cash Flows from Investing Activities      |                                                          |                                                     
|                                          | Proceeds from maturities of securities                   | 77                                                  
|                                          | Purchase of other securities                             | (254)                                               
|                                          | Purchase of available for sale securities                | (1,039)                                             
|                                          | Purchase of real estate investment - Limited partnership | -                                                   
|                                          | Loan originations and principal collections, net         | (5,235)                                             
|                                          | Proceeds from sale of foreclosed assets                  | 1,930                                               
|                                          | Proceeds from sale of premises and equipment             | 17                                                  
|                                          | Purchase of premises and equipment                       | (121)                                               
|                                          | Loan to Employee Stock Ownership Plan                    | (1,852)                                             
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|Cash Flows from Financing Activities      |                                                          |                                                     
|                                          | Net increase (decrease) in deposits                      | (4,575)                                             
|                                          | Proceeds from FHLB advances                              | 11,000                                              
|                                          | Repayment of FHLB advances                               | (1,000)                                             
|                                          | Issuance of Common Stock                                 | 22,147                                              
|                                          |                                                          |                                                     
|                                          |                                                          |                                                     
|Net increase in cash and cash equivalents | 20,062                                                   | 15,088                                              
|Cash and Cash Equivalents - January 1     | 16,312                                                   | 13,562                                              
|Cash and Cash Equivalents - September 30  | $36,374                                                  | $28,650                                             
|                                          |                                                          |                                                     
|Supplemental Cash Flow Information:       |                                                          |                                                     
|                                          | Cash paid for interest                                   | $  4,929                                            
|                                          | Cash paid for income taxes                               | 310                                                 
|                                          | Noncash investing activity - loans transferred to        |                                                     
|                                          |                                                          | foreclosed assets                                   

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|                                  | Nine Months Ended September 30,   
|--------------------------------- | ----------------------------------
|                                  | 2002                              
|                                  | AverageOutstanding
Balance        
|                                  | (Dollars in Thousands)            
|FHLB overnight time and other     |                                   
|                                  | interest-bearing deposits         
|Trading assets                    | 86                                
|Securities                        | 330                               
|Other securities                  | 2,578                             
|Loans                             | 144,782                           
|                                  | Total earning assets              
|                                  |                                   
|Interest-bearing deposit accounts | $104,478                          
|FHLB advances                     | 51,145                            
|                                  | Total interest-bearing liabilities
|                                  |                                   
|Net interest income               |                                   
|Net interest spread               |                                   
|Net interest margin               |                                   

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|                                                     | September 30, 2002          | December 31, 2001
|---------------------------------------------------- | --------------------------- | -----------------
|                                                     | (Dollars in thousands)     
|                                                     |                             |                  
|Non-performing loans                                 | $1,933                      | $2,975           
|Foreclosed assets, including real estate in judgment | 2,450                       | 2,573            
|                                                     | Total non-performing assets | $4,383           
|                                                     |                             |                  
|Non-performing loans to total loans                  | 1.37%                       | 2.16%            
|Non-performing assets to total assets                | 2.23%                       | 3.29%            
|Allowance for loan losses to non-performing loans    | 89.29%                      | 56.57%           
|Allowance for loan losses to loans receivable, net   | 1.23%                       | 1.22%            

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|      |                   |  | MONARCH COMMUNITY BANCORP, INC.
|----- | ----------------- |  | -------------------------------
|Date: | November 13, 2002 |  | By:                            
|      |                   |  |                                
|Date: | November 13, 2002 |  | And:                           

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|1. | I have reviewed this quarterly report on Form 10-QSB of Monarch Community Bancorp, Inc.;                                                                                                                                                                                                                                                                                                 
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;                                                           
|3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly
report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;                                                                              
|4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have;                                                                                                                                                                   
|   | a.                                                                                                                                                                                                                                                                                                                                                                                       
|   | b.                                                                                                                                                                                                                                                                                                                                                                                       
|   | c.                                                                                                                                                                                                                                                                                                                                                                                       
|5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent
functions):                                                                                                                                          
|   | a.                                                                                                                                                                                                                                                                                                                                                                                       
|   | b.                                                                                                                                                                                                                                                                                                                                                                                       
|6. | The registrant's other certifying officers and I have indicated in this quarterly report whether or not there
were significant changes in internal controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

|Date: | November 13, 2002 |  | By: | /s/ John R. Schroll
John R. Schroll
President and Chief Executive Officer
|----- | ----------------- |  | --- | -------------------------------------------------------------------------

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|1. | I have reviewed this quarterly report on Form 10-QSB of Monarch Community Bancorp, Inc.;                                                                                                                                                                                                                                                                                                 
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;                                                           
|3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly
report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;                                                                              
|4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have;                                                                                                                                                                   
|   | a.                                                                                                                                                                                                                                                                                                                                                                                       
|   | b.                                                                                                                                                                                                                                                                                                                                                                                       
|   | c.                                                                                                                                                                                                                                                                                                                                                                                       
|5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent
functions):                                                                                                                                          
|   | a.                                                                                                                                                                                                                                                                                                                                                                                       
|   | b.                                                                                                                                                                                                                                                                                                                                                                                       
|6. | The registrant's other certifying officers and I have indicated in this quarterly report whether or not there
were significant changes in internal controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

|Date: | November 13, 2002 |  | By: | /s/ William C. Kurtz
William C. Kurtz
Senior Vice President and Treasurer
(Principal Financial Officer)
|----- | ----------------- |  | --- | -------------------------------------------------------------------------------------------------------

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|Date: | November 13, 2002 |  | By:  | /s/ John R. Schroll

John R. SchrollPresident and Chief Executive Officer(Principal Executive Officer)
|----- | ----------------- |  | ---- | ------------------------------------------------------------------------------------------------------
|Date: | November 13, 2002 |  | And: | /s/ William C. Kurtz

William C. KurtzSenior Vice President and Treasurer(Principal Financial Officer)

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