SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                                   (Mark One)

[X]      QUARTERLY  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998 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 number: 333-35799

                             UNION COMMUNITY BANCORP
               (Exact name of registrant specified in its charter)

           Indiana                                         35-2025237
(State or other jurisdiction of                         (I.R.S. Employer
 incororation or organization)                         Identification Number)

                              221 East Main Street
                          Crawfordsville, Indiana 47933
                    (Address of principal executive offices,
                               including Zip Code)

                                 (765) 362-2400
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  report),  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]

The  number of shares of the  Registrant's  common  stock,  without  par  value,
outstanding as of May 4, 1998 was 3,041,750.



<PAGE>

                                    FORM 10Q
                            FORWARD LOOKING STATEMENT

This  Quarterly  Report on Form 10-Q ("Form  10-Q")  contains  statements  which
constitute  forward  looking  statements  within  the  meaning  of  the  Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-Q and include  statements  regarding the intent,  belief,
outlook, estimate or expectations of the Company (as defined in the notes to the
consolidated  condensed  financial  statements),  its  directors or its officers
primarily with respect to future events and the future financial  performance of
the  Company.  Readers  of this Form 10-Q are  cautioned  that any such  forward
looking  statements  are not  guarantees  of future  events or  performance  and
involve risks and  uncertainties,  and that actual results may differ materially
from those in the forward looking statements as a result of various factors. The
accompanying  information  contained  in this  Form  10-Q  identifies  important
factors that could cause such  differences.  These  factors  include  changes in
interest   rates;   loss  of  deposits  and  loan  demand  to  other   financial
institutions;  substantial changes in financial markets;  changes in real estate
values and the real estate market; or regulatory changes.

<PAGE>


                             Union Community Bancorp
                                    Form 10-Q

                                      Index
                                                                        Page No.
FORWARD LOOKING STATEMENT

PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

              Consolidated Condensed Balance
              Sheet as of March 31, 1998 and December 31, 1997
              (Unaudited)                                                      4

              Consolidated Condensed Statement of Income for
              the three months ended March 31, 1998 and 1997
              (Unaudited)                                                      5

              Consolidated Condensed Statement of Changes in
              Shareholders' Equity for the three months ended
              March 31, 1998 (Unaudited)                                       6

              Consolidated  Condensed  Statement  of Cash  Flows  for the
              three months ended March 31, 1998 and 1997
              (Unaudited)                                                      7

              Notes to Unaudited Consolidated Condensed
              Financial Statements                                             8

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

Item 3.    Quantitative and Qualitative Disclosure about Market Risk          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

<PAGE>

PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements


                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                      Consolidated Condensed Balance Sheet

<TABLE>
<CAPTION>
                                                              March 31,         December 31,
                                                                1998               1997
                                                           -------------      -------------
                                                             (unaudited)
Assets
<S>                                                        <C>                <C>          
Cash                                                       $      55,713      $      22,424
Short-term interest-bearing deposits                          14,143,218         44,758,403
                                                           -------------      -------------
Total cash and cash equivalents                               14,198,931         44,780,827
Investment securities held to maturity                         8,079,632          5,820,069
Loans                                                         83,205,892         78,687,999
Allowance for loan losses                                       (252,258)          (252,258)
                                                           -------------      -------------
Net loans                                                     82,953,634         78,435,741
Premises and equipment                                           362,136            367,360
Federal Home Loan Bank stock                                     707,700            707,700
Investment in limited partnership                              1,151,109          1,176,109
Interest receivable                                              495,072            581,526
Other assets                                                     131,176            170,925
                                                           -------------      -------------
       Total assets                                        $ 108,079,390      $ 132,040,257
                                                           =============      =============

Liabilities                                                                                      
Deposits
   Noninterest bearing                                     $   1,721,099      $   1,532,647
   Interest bearing                                           60,169,242         60,725,398
                                                           -------------      -------------
       Total deposits                                         61,890,341         62,258,045
Stock subscriptions refundable                                        --         22,687,104
Federal Home Loan Bank advances                                  772,226          2,373,051
Note payable                                                   1,020,642          1,200,042
Interest payable                                                  83,253            118,867
Dividends payable                                                228,132                 --
Other liabilities                                                816,172            497,271
                                                           -------------      -------------
       Total liabilities                                      64,810,766         89,134,380
                                                           -------------      -------------

Stockholders' Equity                                                                             
Preferred stock, without par value                                                                                
Authorized and unissued--2,000,000 shares                                                                   
Common stock, without par value
Authorized--5,000,000 shares                                                                     
Issued and outstanding--3,041,750 shares                      29,650,431         29,637,592      
Retained earnings                                             15,430,877         15,108,285
Unearned employee stock ownership plan ("ESOP") shares        (1,812,684)        (1,840,000)
                                                           -------------      -------------
       Total stockholders' equity                             43,268,624         42,905,877
                                                           -------------      -------------
       Total liabilities and stockholders' equity          $ 108,079,390      $ 132,040,257
                                                           =============      =============
</TABLE>

<PAGE>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                   Consolidated Condensed Statement of Income

                                              Three months ended March 31,
                                                 1998             1997
                                              -----------      -----------
                                                       (Unaudited)
Interest and Dividend Income
     Loans                                    $ 1,631,366      $ 1,486,336
     Investment securities                        106,840          101,733
Dividends on Federal Home Loan Bank stock          13,960           11,229
     Deposits with financial institutions         261,553           19,556
                                              -----------      -----------
Total interest and dividend  income             2,013,719        1,618,854
                                              -----------      -----------
Interest Expense
Deposits                                          804,523          819,344
     Federal Home Loan Bank advances               16,764           85,545
                                              -----------      -----------
Total interest expense                            821,287          904,889
                                              -----------      -----------

Net Interest Income                             1,192,432          713,965
     Provision for loan losses                         --           12,000
                                              -----------      -----------

Net Interest Income After
Provision for Loan Losses                       1,192,432          701,965
                                              -----------      -----------

Other Income (Losses)
Equity in losses of limited partnership           (25,000)         (73,427)
     Other income                                  14,516            8,481
                                              -----------      -----------
Total other losses                                (10,484)         (64,946)
                                              -----------      -----------

Other Expenses
Salaries and employee benefits                    218,184          136,241
     Net occupancy expenses                         4,901            6,513
     Equipment expenses                             7,462            5,659
     Deposit insurance expense                      9,711            2,286
     Other expenses                                99,384           70,677
                                              -----------      -----------
Total other expenses                              339,642          221,376
                                              -----------      -----------

Income Before Income Tax                          842,306          415,643
     Income tax expense                           305,382          121,223
                                              -----------      -----------

Net Income                                    $   536,924      $   294,420
                                              ===========      ===========
Basic earnings per share                      $       .19               --
                                              ===========      ===========
Diluted earnings per share                    $       .19               --
                                              ===========      ===========

<PAGE>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
       Consolidated Condensed Statement of Changes in Stockholders' Equity


<TABLE>
<CAPTION>
                                              Common Stock
                                      -----------------------------
                                        Shares                            Retained          Unearned
                                      Outstanding         Amount          Earnings         ESOP Shares         Total
                                      -----------         ------          --------         -----------         -----
<S>                                    <C>              <C>               <C>             <C>               <C>        
Balances, December 31, 1997            3,041,750        $29,637,592       $15,108,285     $(1,840,000)      $42,905,877

Net income                                                                    536,924                           536,924

Cash dividends ($.075 per share)                                             (214,332)                         (214,332)

ESOP shares earned                                           12,839                            27,316            40,155
------------------------------------------------------------------------------------------------------------------------
Balances, March 31, 1998               3,041,750        $29,650,431       $15,430,877     $(1,812,684)      $43,268,624
========================================================================================================================
</TABLE>




<PAGE>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                 Consolidated Condensed Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                          Three months ended March 31,
                                                                       1998              1997
                                                                   ------------      ------------
                                                                            (Unaudited)
Operating Activities                                                                                                      
<S>                                                                <C>               <C>         
Net income                                                         $    536,924      $    294,420
   Adjustments to reconcile net income to net cash provided
     by operating activities
     Provision for loan losses                                               --            12,000
     Depreciation                                                         7,170             6,587
     Investment securities accretion, net                                (3,524)           (1,852)
     Equity in losses of limited partnership                             25,000            73,427
ESOP shares earned                                                       40,155                --
     Net change in
Interest receivable                                                      86,454            67,105
         Interest payable                                               (35,614)            5,279
Other assets                                                             (5,811)           31,773
Other liabilities                                                       202,136           130,636
                                                                   ------------      ------------
         Net cash provided by operating activities                      852,890           619,375
                                                                   ------------      ------------
Investing Activities
Purchases of investment securities held to maturity                  (3,394,375)         (400,000)
   Proceeds from maturities and paydowns of investment
     securities held to maturity                                      1,138,336           132,686
Net change in loans                                                  (4,472,333)          (55,266)
   Purchases of premises and equipment                                   (1,946)               --
                                                                   ------------      ------------
     Net cash used by investing activities                           (6,730,318)         (322,580)
                                                                   ------------      ------------
Financing Activities
   Net change in
Interest-bearing demand and savings deposits                           (648,366)          435,863
Certificates of deposit                                                 280,662           890,350
Stock subscription escrow accounts                                  (22,687,104)               -- 
Proceeds from borrowings                                                     --         1,000,000
   Repayment of borrowings                                           (1,780,225)       (1,807,277)
   Net change in advances by borrowers for taxes and insurance          130,565           132,658
                                                                   ------------      ------------
         Net cash provided (used) by financing activities           (24,704,468)          651,594
                                                                   ------------      ------------

Net Increase (Decrease) in Cash and Cash Equivalents                (30,581,896)          948,389
Cash and Cash Equivalents, Beginning of Year                         44,780,827         1,465,190
                                                                   ------------      ------------
Cash and Cash Equivalents, End of Year                             $ 14,198,931      $  2,413,579
                                                                   ============      ============
Additional Cash Flows Information
   Interest paid                                                   $    861,429      $    899,610
   Income tax paid                                                       25,400            57,951
   Loans transferred to foreclosed real estate                               --            45,560
</TABLE>



<PAGE>



                     UNION COMMUNITY BANCORP AND SUBSIDIARY
              Notes to Consolidated Condensed Financial Statements



Note 1 Basis of Presentation

The consolidated  financial  statements  include the accounts of Union Community
Bancorp (the "Company") and its wholly owned  subsidiary,  Union Federal Savings
and Loan Association, a federally chartered savings and loan association ("Union
Federal").  A summary of significant  accounting policies is set forth in Note 1
of Notes to Financial Statements included in the December 31, 1997 Annual Report
to Shareholders.  All significant  intercompany  accounts and transactions  have
been eliminated in consolidation.

The interim  consolidated  financial statements have been prepared in accordance
with instructions to Form 10-Q, and therefore do not include all information and
footnotes  necessary for a fair presentation of financial  position,  results of
operations  and cash flows in  conformity  with  generally  accepted  accounting
principles.

The interim  consolidated  financial  statements at March 31, 1998,  and for the
three months ended March 31, 1998 and 1997, have not been audited by independent
accountants,  but reflect, in the opinion of management,  all adjustments (which
include  only normal  recurring  adjustments)  necessary  to present  fairly the
financial position, results of operations and cash flows for such periods.

Note 2 Earnings Per Share

Earnings per share have been  computed  based upon the weighted  average  common
shares outstanding during the period subsequent to Union Federal's conversion to
a stock savings and loan  association  on December 29, 1997.  Unearned  Employee
Stock  Ownership Plan shares have been excluded from the  computation of average
common  shares  outstanding.   For  the  three  months  ended  March  31,  1998,
weighted-average  shares  outstanding  for basic and diluted  earnings per share
were 2,864,170.

Note 3 Reporting Comprehensive Income

In 1998, the Company adopted Financial  Accounting  Standards No. 130, Reporting
Comprehensive  Income.  For the three months ended March 31, 1998 and 1997,  the
Company  had no items  that were  required  to be  recognized  under  accounting
standards as components of comprehensive income in the financial statements.

<PAGE>

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

General

Union Community Bancorp, an Indiana  corporation (the "Company"),  was organized
in September,  1997. On December 29, 1997, it acquired the common stock of Union
Federal Savings and Loan  Association  ("Union  Federal") upon the conversion of
Union Federal from a federal  mutual  savings and loan  association to a federal
stock savings and loan association.

Union Federal was organized as a state-chartered savings and loan association in
1913. Since then, Union Federal has conducted its business from its full-service
office located in Crawfordsville,  Indiana.  Union Federal's  principal business
consists  of  attracting  deposits  from  the  general  public  and  originating
fixed-rate and  adjustable-rate  loans secured primarily by first mortgage liens
on one- to four-family residential real estate. Union Federal's deposit accounts
are insured up to applicable  limits by the Savings  Association  Insurance Fund
("SAIF") of the Federal Deposit Insurance  Corporation  ("FDIC").  Union Federal
offers a number of financial  services,  including:  (i) residential real estate
loans;  (ii)  multi-family  loans;  (iii)  commercial  real estate  loans;  (iv)
construction  loans;  (v) home  improvement  loans;  (vi)  money  market  demand
accounts ("MMDAs");  (vii) passbook savings accounts; and (viii) certificates of
deposit.

Union Federal currently owns one subsidiary,  UFS Service Corp.  ("UFS"),  whose
sole asset is its investment in Pedcor Investments  1993-XVI,  L.P.  ("Pedcor"),
which is an Indiana limited partnership that was established to organize, build,
own, operate and lease a 48-unit  apartment complex in  Crawfordsville,  Indiana
known as Shady Knoll II  Apartments  (the  "Project").  Union  Federal  owns the
limited partner  interest in Pedcor.  The general partner is Pedcor  Investments
LLC. The Project,  operated as a multi-family,  low- and moderate-income housing
project,  is  completed  and is  performing  as  planned.  Because  UFS  engages
exclusively  in  activities  that  are  permissible  for a  national  bank,  OTS
regulations  permit  Union  Federal  to  include  its  investment  in UFS in its
calculation of regulatory capital.

Union  Federal's  results of operations  depend  primarily upon the level of net
interest income,  which is the difference  between the interest income earned on
interest-earning assets, such as loans and investments,  and costs incurred with
respect to  interest-bearing  liabilities,  primarily  deposits and  borrowings.
Results of operations also depend upon the level of Union Federal's non-interest
income,  including  fee  income  and  service  charges,  and  the  level  of its
non-interest expenses, including general and administrative expenses.

Financial Condition

Total assets  decreased $24.0 million,  or 18.1% at March 31, 1998,  compared to
December 31, 1997. The decline was primarily in cash and cash equivalents  which
decreased $30.6 million. The decrease in cash and cash equivalents,  principally
in short-term  interest-bearing deposits, resulted from the payment of the stock
subscriptions  refundable of $22.7 million at December 31, 1997. The decrease in
cash and cash  equivalents was offset by an increase in net loans and investment
securities held to maturity. Net loans increased by $4.5 million, or 5.8% due to
an increase in customer demand.  Investment securities held to maturity increase
by $2.3 million, or 38.8%.

Deposits  decreased  $368,000 to $61.9 million during the first quarter of 1998.
Demand and savings deposits  decreased  $648,000,  or 4.0%, between December 31,
1997 and March 31, 1998.  Certificates of deposits increased  $281,000,  or .6%,
during this period. This decrease in total deposits was primarily a result of an
outflow of existing accounts to different market alternatives.

Borrowed funds decreased $1.8 million, or 49.8%, from December 31, 1997 to March
31, 1998.  The decline in total  borrowed  funds was  comprised of a decrease in
FHLB advances of $1.6  million,  and a decrease in the note payable to a limited
partnership of $179,000.


<PAGE>

Stockholders'  equity increased $363,000 from $42.9 million at December 31, 1997
to $43.3  million at March 31, 1998.  The increase  resulted from net income for
the quarter ended March 31, 1998 of $537,000 and Employee  Stock  Ownership Plan
("ESOP")  shares  earned  of  $40,000.  These  increases  were  offset by a cash
dividend declared of $214,000.

Comparison of operating results for the three-month periods ended March 31, 1998
and 1997.

Net income  increased  $243,000,  or 82.4%,  from  $294,000 for the three months
ended March 31, 1997 to $537,000 for the three months ended March 31, 1998.  The
increase  is  primarily  due to an  increase in net  interest  income  offset by
increases in other  expenses.  The return on average assets was 1.99% and 1.42 %
for the three months ended March 31, 1998 and 1997, respectively.

Interest income increased  $395,000,  or 24.4%,  from $1.6 million for the three
months  ended  March  31,  1997 to $2.0  million  for the same  period  in 1998.
Interest expense decreased $84,000,  or 9.2%, from $905,000 for the three months
ended March 31, 1997 to $821,000 for the same period in 1998.  As a result,  net
interest  income for the three  months  ended  March 31,  1998  amounted to $1.2
million an increase of $478,000,  or 67.0%, compared to the same period in 1997.
The increase in net interest  income was due  primarily to an increase in volume
of loan and short-term interest-bearing deposits and a decrease in the volume of
Federal Home Loan Bank advances. The increase in interest-earning assets and the
decrease in  interest-bearing  liabilities  were primarily  attributable  to the
proceeds received in conjunction with the Company's stock issuance. Net proceeds
of the Company's stock issuance, after costs and excluding the shares issued for
the ESOP, were $27.8 million.

There was no provision for loan losses made for the three months ended March 31,
1998 compared to $12,000 for the same period in 1997.

Other losses decreased  $54,000,  or 83.9%, for the three months ended March 31,
1998 compared to the same period in 1997  primarily  due to decreased  losses of
$48,000 from the  investment in a low-income  housing  income tax credit limited
partnership.  The investment in the limited partnership  represents a 99% equity
in Pedcor.  In  addition  to  recording  the  equity in the losses of Pedcor,  a
benefit of low income  housing  income tax  credits in the amount of $45,000 was
recorded for the three months ended March 31, 1998 and 1997.

Salaries and employee  benefits  were  $218,000 for the three months ended March
31, 1998  compared to $136,000 for the 1997 period,  an increase of $82,000,  or
60.1%.  This increase  resulted  primarily from $54,000 of compensation  expense
related to the ESOP and normal  increases in employee  compensation  and related
payroll  taxes.  Other  expenses,  consisting  primarily of expenses  related to
service  center  fees,   advertising,   directors'  fees,   professional   fees,
supervisory  examination fees, supplies,  and postage increased $29,000 or 40.6%
for three months ended March 31, 1998  compared to the same period in 1997.  The
increase in other  expenses  resulted  from  nominal  increases  in a variety of
expense categories.


<PAGE>

Income tax expense  increased  $184,000,  or 151.9%,  for the three months ended
March 31, 1998  compared to the same period in 1997.  The  increase was directly
related to the increase in taxable income for the period.

Asset Quality

Union  Federal  currently  classifies  loans as  special  mention,  substandard,
doubtful  and loss to  assist  management  in  addressing  collection  risks and
pursuant to regulatory  requirements  which are not necessarily  consistent with
generally  accepted  accounting  principles.  Special  mention  loans  represent
credits  that  have  potential   weaknesses  that  deserve   management's  close
attention.  If left  uncorrected,  these  potential  weaknesses  may  result  in
deterioration  of the repayment  prospects or Union Federal's credit position at
some future date.  Substandard  loans  represent  credits  characterized  by the
distinct  possibility  that some loss will be sustained if deficiencies  are not
corrected.  Doubtful loans possess the characteristics of substandard loans, but
collection  or  liquidation  in full is  doubtful  based  upon  existing  facts,
conditions and values. A loan classified as a loss is considered  uncollectible.
Union  Federal had $1.2  million of loans  classified  as special  mention as of
March 31, 1998 while there were no special  mention  loans at December 31, 1997.
In  addition,  Union  Federal had $978,000  and $98,000 of loans  classified  as
substandard at March 31, 1998 and December 31, 1997, respectively.  At March 31,
1998 and December 31, 1997,  no loans were  classified  as doubtful or loss.  At
March 31, 1998, and December 31, 1997, respectively, $485,000 and $98,000 of the
substandard  loans were  non-accrual  loans.  The  allowance for loan losses was
$252,000  or .3% of net loans at March  31,  1998 and  December  31,  1997.  The
increase in classified loans is primarily a result of a regulatory  examination.
As a result of the examination,  the examiners have requested that an additional
general reserve of approximately  $98,000 be recorded for these newly classified
loans in the second quarter of 1998. Union Federal does not believe that at this
time any loss exists on these loans.  In addition,  the loans are not considered
impaired under Statement of Financial  Accounting  Standards No. 114, Accounting
by Creditors for Impairment of a Loan.

Liquidity and Capital Resources

The standard measure of liquidity for savings  associations is the ratio of cash
and eligible  investments to a certain  percentage of net  withdrawable  savings
accounts  and  borrowings  due within one year.  The minimum  required  ratio is
currently set by the Office of Thrift Supervision  regulation at 4%. As of March
31, 1998, Union Federal had liquid assets of $18.8 million and a liquidity ratio
of 26%.

Other

The  Securities  and  Exchange  Commission  maintains  a Web site that  contains
reports,   proxy  information   statements,   and  other  information  regarding
registrants that file electronically with the Commission, including the Company.
The address is (http://www.sec.gov).


<PAGE>

Year 2000 Compliance

Because  computer  memory was so expensive on early  mainframe  computers,  some
computer  programs used only the final two digits for the year in the date field
and  assumed  that the first two digits  were "19." As a result,  some  computer
applications  may be unable to interpret the change from year 1999 to year 2000.
The Holding  Company is actively  monitoring  its year 2000 computer  compliance
issues. The bulk of the Holding Company's computer  processing is provided under
contract by On-Line Financial Services, Inc., Oak Brook, IL. ("On-Line") On-Line
expects to be in year 2000  compliance by June 1999. The Holding  Company's loan
documentation  system is provided by Banker's Systems and is also expected to be
in year 2000  compliance  within the next year.  The  Holding  Company  has also
appointed  the three  executive  officers  to address  all  aspects of year 2000
compliance.   The  Holding  Company's  expense  in  connection  with  year  2000
compliance is not expected to be material to its overall financial condition.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Presented  below,  as of March 31, 1998, is an analysis  performed by the OTS of
Union Federal's interest rate risk as measured by changes in Union Federal's net
portfolio value ("NPV") for instantaneous  and sustained  parallel shifts in the
yield curve, in 100 basis point increments, up and down 400 basis points.

                           Net Portfolio Value          NPV as % of PV of Assets
    Change
   in Rates      $ Amount      $Change      % Change     NPV Ratio     Change
   --------      --------      -------      --------     ---------     ------
     +400 bp       24,767       -9,674        -28%       24.60%       -635 bp
     +300 bp       27,251       -7,190        -21%       26.36%       -460 bp
     +200 bp       29,801       -4,640        -13%       28.07%       -289 bp
     +100 bp       32,253       -2,188         -6%       29.63%       -133 bp
        0 bp       34,441                                30.96%
     -100 bp       35,991        1,550          5%       31.85%        +89 bp
     -200 bp       36,727        2,287          7%       32.23%       +127 bp
     -300 bp       37,501        3,060          9%       32.63%       +167 bp
     -400 bp       38,700        4,259         12%       33.28%       +232 bp

This  analysis  indicates  that  there have been no  material  changes in market
interest  rates or in the Company's  interest rate sensitive  instruments  which
would cause a material  change in the market  risk  exposures  which  affect the
quantitative  and  qualitative  risk  disclosures as presented in Item 7A of the
Company's Annual Report on Form 10-K for the period ended December 31, 1997.


PART II.   OTHER INFORMATION

Item 1.    Legal Proceedings

           None.

Item 2.    Changes in Securities and Use of Proceeds

           None.

Item 3.    Defaults Upon Senior Securities.

           None.

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

           None.

Item 5.    Other Information.

           None.

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

                (a) Exhibits 27.  Financial Data Schedule

                (b) No reports on Form 8-K were filed  during the quarter  ended
                    March 31, 1998.

<PAGE>



                                   Signatures

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

                                                 UNION COMMUNITY BANCORP

Date:      May 14, 1998                        By: /s/ Joseph E. Timmons
                                                   -----------------------------
                                                       Joseph E. Timmons
                                                       President and
                                                       Chief Executive Officer


Date:      May 14, 1998                        By: /s/ Denise E. Swearingen
                                                   -----------------------------
                                                       Denise E. Swearingen
                                                       Treasurer