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 SEPTEMBER 30, 2000

                                       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: 000-23543

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

Indiana                                                 35-2025237
(State or other jurisdiction of                         (I.R.S. Employer
incorporation 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 September 30, 2000 was 2,375,450.


<PAGE>



                             Union Community Bancorp
                                    Form 10-Q

                                      Index

                                                                       Page No.
                                                                       --------

FORWARD LOOKING STATEMENT                                                 3

PART I.       FINANCIAL INFORMATION

Item 1.       Financial Statements

                  Consolidated Condensed Balance Sheet                    4

                  Consolidated Condensed Statement of Income              5

                  Consolidated Condensed Statement of
                  Shareholders' Equity                                    6

                  Consolidated Condensed Statement of Cash Flows          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 Disclosures about
              Market Risk                                                11

PART II.      OTHER INFORMATION

Item 1.       Legal Proceedings                                          13
Item 2.       Changes in Securities and Use of Proceeds                  13
Item 3.       Defaults Upon Senior Securities                            13
Item 4.       Submission of Matters to Vote of Security Holders          13
Item 5.       Other Information                                          13
Item 6.       Exhibits and Reports on Form 8-K                           13

SIGNATURES                                                               14




<PAGE>




                            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>



PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements
-----------------------------
<TABLE>
<CAPTION>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                      Consolidated Condensed Balance Sheet
                                   (Unaudited)

                                                            September 30,      December 31,
                                                                2000               1999
                                                     --------------------------------------
Assets
<S>                                                  <C>                    <C>
  Cash                                               $    203,125           $    286,812
  Interest-bearing demand deposits                      3,859,061              2,830,213
                                                     -----------------------------------
      Cash and cash equivalents                         4,062,186              3,117,024
  Investment securities
      Available for sale                                  238,760                315,463
      Held to maturity                                  7,643,628              7,521,923
                                                     -----------------------------------
           Total investment securities                  7,882,388              7,837,386
  Loans, net of allowance for loan losses
        of $464,554 and $422,258                      108,172,632            106,173,782
  Premises and equipment                                  366,427                367,427
  Federal Home Loan Bank stock                          1,043,700              1,043,700
  Investment in limited partnership                       931,609              1,011,609
  Interest receivable                                     851,389                823,768
  Other assets                                             94,471                278,942
                                                     -----------------------------------

      Total assets                                   $123,404,802           $120,653,639
                                                     ===================================

Liabilities
  Deposits
      Noninterest bearing                            $  1,800,379           $  1,151,075
      Interest bearing                                 70,795,207             67,839,367
                                                     -----------------------------------
           Total deposits                              72,595,586             68,990,442
  Federal Home Loan Bank advances                      12,534,893             11,658,526
  Note payable                                            654,542                837,442
  Interest payable                                        211,472                122,565
  Dividends payable                                       332,851                315,591
  Other liabilities                                       626,473                449,158
                                                     -----------------------------------
      Total liabilities                                86,955,817             82,373,724
                                                     -----------------------------------
Commitments and Contingent Liabilities

Shareholders' Equity
  Preferred stock, no-par value
      Authorized and unissued - 2,000,000
        shares
  Common stock, no-par value
      Authorized - 5,000,000 shares
      Issued and outstanding - 2,375,450
        and 2,600,700 shares                           23,199,316             25,389,422
  Retained earnings                                    16,021,306             15,912,206
  Accumulated other comprehensive income                   17,372                 15,385
  Unearned employee stock ownership plan
   ("ESOP") shares                                     (1,546,955)            (1,624,444)
  Unearned recognition and retention plan
   ("RRP") shares                                      (1,242,054)            (1,412,654)
                                                     -----------------------------------
      Total shareholders' equity                       36,448,985             38,279,915
                                                     -----------------------------------

      Total liabilities and shareholders'
        equity                                       $123,404,802           $120,653,639
                                                     ===================================
</TABLE>

  See notes to unaudited consolidated condensed financial statements.



<TABLE>
<CAPTION>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                   Consolidated Condensed Statement of Income
                                   (Unaudited)

                                                                    Three Months Ended               Nine Months Ended
                                                                      September 30                     September 30
                                                           ----------------------------------------------------------------
                                                                 2000             1999             2000            1999
                                                           ----------------------------------------------------------------
Interest and Dividend Income
<S>                                                        <C>              <C>               <C>              <C>
  Loans                                                    $  2,117,128     $  1,963,021      $  6,331,818     $  5,683,315
  Investment securities                                         154,266          144,256           419,532          427,806
  Dividends on Federal Home Loan Bank stock                      22,300           17,475            63,820           49,043
  Deposits with financial institutions                           17,989           27,929            54,944          100,986
                                                           ----------------------------------------------------------------
      Total interest and dividend income                      2,311,683        2,152,681         6,870,114        6,261,150
                                                           ----------------------------------------------------------------


Interest Expense

  Deposits                                                      985,976          872,768         2,816,628        2,597,486
  Federal Home Loan Bank advances                               203,062          109,825           547,856          167,865
                                                           ----------------------------------------------------------------
      Total interest expense                                  1,189,038          982,593         3,364,484        2,765,351
                                                           ----------------------------------------------------------------

Net Interest Income                                           1,122,645        1,170,088         3,505,630        3,495,799
  Provision for loan losses                                      15,000           15,000            45,000           45,000
                                                           ----------------------------------------------------------------
Net Interest Income After Provision for Loan Losses           1,107,645        1,155,088         3,460,630        3,450,799
                                                           ----------------------------------------------------------------

Other Income (Loss)
  Equity in losses of limited partnerships                      (25,000)         (25,000)          (80,000)         (77,500)
  Gain on sales of securities available for sale                                  73,150             8,331           73,150
  Other income                                                   31,440           25,354            93,303           77,567
                                                           ----------------------------------------------------------------
      Total other income                                          6,440           73,504            21,634           73,217
                                                           ----------------------------------------------------------------

Other Expenses

  Salaries and employee benefits                                277,294          252,499           810,248          767,744
  Net occupancy and equipment expenses                           17,794           15,999            44,300           52,545
  Deposit insurance expense                                       3,866           16,260            11,526           38,255
  Data processing expense                                        19,934           19,510            58,974          105,385
  Legal and professional fees                                    19,865           18,747            91,191          101,409
  Other expenses                                                 79,192           65,066           230,794          225,745
                                                           ----------------------------------------------------------------
      Total other expenses                                      417,945          388,081         1,247,033        1,291,083
                                                           ----------------------------------------------------------------

Income Before Income Tax                                        696,140          840,511         2,235,231        2,232,933
  Income tax expense                                            224,559          300,671           734,032          787,557
                                                           ----------------------------------------------------------------

Net Income                                                 $    471,581     $    539,840      $  1,501,199     $  1,445,376
                                                           ================================================================

Basic Earnings per Share                                        $   .22          $   .22           $   .67           $  .58
                                                           ================================================================

Diluted Earnings per Share                                      $   .22          $   .22           $   .67           $  .58
                                                           ================================================================

</TABLE>

  See notes to unaudited consolidated condensed financial statements.

<PAGE>
<TABLE>
<CAPTION>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
            Consolidated Condensed Statement of Shareholders' Equity
                                   (Unaudited)


                                Common Stock                                   Accumulated
                             ---------------------------                          Other       Unearned
                               Shares               Comprehensive  Retained    Comprehensive    ESOP       Unearned
                             Outstanding     Amount    Income      Earnings    Income (Loss)   Shares    Compensation      Total
                             -------------------------------------------------------------------------------------------------------

<S>                          <C>         <C>         <C>          <C>            <C>        <C>           <C>           <C>
Balances, January 1, 2000    2,600,700   $25,389,422              $15,912,206    $15,385    $(1,624,444)  $(1,412,654)  $38,279,915
  Comprehensive income
    Net income for the period                        $1,501,199     1,501,199                                             1,501,199
    Other comprehensive
      income, net of tax
      Unrealized gains on
        securities, net of
        reclassification
        adjustment                                        1,987                    1,987                                      1,987
                                                     ----------
  Comprehensive income                               $1,503,186
                                                     ==========
  Cash dividends
      ($.435 per share)                                            (1,006,657)                                           (1,006,657)
  Purchase of common  stock   (225,250)   (2,199,405)                (385,442)                                           (2,584,847)
  Amortization of unearned
      compensation expense                                                                                    170,600       170,600
  ESOP shares earned                           9,299                                             77,489                      86,788
                             ------------------------             -----------------------------------------------------------------
Balances, September 30, 2000 2,375,450   $23,199,316              $16,021,306    $17,372    $(1,546,955)  $(1,242,054)  $36,448,985
                             =======================              =================================================================

</TABLE>

See notes to unaudited consolidated condensed financial statements.


<PAGE>

<TABLE>
<CAPTION>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                 Consolidated Condensed Statement of Cash Flows
                                   (Unaudited)

                                                                       Nine Months Ended
                                                                         September 30,
                                                                 -----------------------------
                                                                      2000             1999
                                                                 -----------------------------
Operating Activities
<S>                                                              <C>               <C>
  Net income                                                     $  1,501,199      $ 1,445,376
  Adjustments to reconcile net income to
        net cash provided by operating activities
    Provision for loan losses                                          45,000           45,000
    Depreciation and amortization                                      20,820           24,981
    Investment securities accretion, net                              (33,671)          (8,844)
    Gain on sales of securities available for sale                     (8,331)         (73,150)
    Gain on sale of foreclosed assets                                                     (284)
    Equity in losses of limited partnerships                           80,000           77,500
    Amortization of unearned compensation expense                     170,600          170,599
    ESOP shares earned                                                 86,788           90,308
    Net change in:
      Interest receivable                                             (27,621)         (71,287)
      Interest payable                                                 88,907           33,722
      Other assets                                                     95,472           15,637
      Other liabilities                                                50,691           84,835
                                                                 -----------------------------
           Net cash provided by operating activities                2,069,854        1,834,393
                                                                 -----------------------------

Investing Activities
  Investment securities
      Purchase of securities available for sale                                       (778,529)
      Purchase of securities held to maturity                        (300,000)      (1,415,000)
      Proceeds from sales of securities available for sale             87,997          595,655
      Proceeds from maturities of securities held to
        maturity and paydowns of mortgage-backed securities           211,966        1,124,293
  Net changes in loans                                             (1,955,826)     (14,066,286)
  Purchase of  FHLB of Indianapolis stock                                             (299,200)
  Purchases of property and equipment                                 (19,820)         (32,924)
  Proceeds from sale of foreclosed assets                                              100,357
  Other investing activities                                                            (2,726)
                                                                 -----------------------------
           Net cash used by investing activities                   (1,975,683)     (14,774,360)
                                                                 -----------------------------
Financing Activities
  Net change in

    Interest-bearing demand and savings deposits                      544,943        4,976,478
    Certificates of deposit                                         3,060,201       (2,071,624)
    Stock subscription escrow accounts
  Proceeds from borrowings                                         14,000,000       11,000,000
  Repayment of borrowings                                         (13,306,533)        (296,900)
  Cash dividends                                                     (989,397)        (826,265)
  Repurchase of common stock                                       (2,584,847)      (3,423,757)
  Net change in advances by borrowers for taxes and insurance         126,624          112,513
                                                                 -----------------------------
           Net cash provided by financing activities                  850,991        9,470,445
                                                                 -----------------------------

Net Change in Cash and Cash Equivalents                               945,162       (3,469,522)

Cash and Cash Equivalents, Beginning of Period                      3,117,024        6,191,080
                                                                 -----------------------------

Cash and Cash Equivalents, End of Period                         $  4,062,186    $   2,721,558
                                                                 =============================

Additional Cash Flows Information
  Interest paid                                                  $  3,275,577    $   2,731,629
  Income tax paid                                                     724,025          791,301

</TABLE>

  See notes to unaudited consolidated condensed financial statements.






                     UNION COMMUNITY BANCORP AND SUBSIDIARY
         Notes to Unaudited 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, 1999 Annual Report
to Shareholders.  All significant  intercompany  accounts and transactions  have
been eliminated in consolidation.

The interim  consolidated  condensed 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  condensed financial statements at September 30, 2000,
and for the nine and three months ended  September  30, 2000 and 1999,  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. Unearned ESOP shares have been excluded from the computation
of average common shares outstanding.
<TABLE>
<CAPTION>

                                         Three Months Ended                          Three Months Ended
                                         September 30, 2000                          September 30, 1999
                                         ------------------                          ------------------
                                              Weighted                                    Weighted
                                              Average            Per Share                Average          Per Share
                                  Income       Shares              Amount       Income     Shares            Amount
                                  ------       ------              ------       ------     ------            ------
<S>                               <C>         <C>                <C>           <C>          <C>               <C>
Basic earnings per share
  Income available to common
  shareholders                    $ 471,581   2,184,351          $  .22        $539,840     2,403,355         $  .22
                                                                 ======                                       ======

Effect of dilutive RRP awards
and stock options
                                  ---------------------                        ----------------------
Diluted earnings per share
Income available to  common
shareholders and assumed
conversions                       $ 471,581   2,184,351          $  .22        $539,840     2,403,355         $  .22
                                  =====================================        =====================================


<PAGE>

                                         Nine Months Ended                             Nine Months Ended
                                         September 30, 2000                            September 30, 1999
                                         ------------------                            ------------------
                                              Weighted                                      Weighted
                                              Average            Per Share                  Average        Per Share
                                  Income       Shares              Amount       Income       Shares          Amount
                                  ------       ------              ------       ------       ------          ------

Basic earnings per share
  Income available to common
  shareholders                    $1,501,199  2,256,188          $  .67        $1,445,376   2,482,219         $  .58
                                                                 ======                                       ======

Effect of dilutive RRP awards
and stock options
                                  ---------------------                        ----------------------
Diluted earnings per share
Income available to common
shareholders and assumed
conversions                       $ 1,501,199 2,256,188          $  .67        $ 1,445,376  2,482,219         $  .58
                                  =====================================        =====================================


</TABLE>


Note 3: Other Comprehensive Income
----------------------------------
<TABLE>
<CAPTION>
                                                         Before-Tax             Tax          Net-of-Tax
Nine months ended September 30, 2000                       Amount             Expense          Amount
                                                           ------             -------          ------

Unrealized gains on securities
<S>                                                        <C>               <C>                <C>
  Unrealized holding gains arising during the period       $11,294           $ (3,720)          $7,574
  Less: reclassification adjustment for gains realized
       in net income                                         8,331             (2,744)           5,587
                                                           -------------------------------------------
  Net unrealized gains                                     $ 2,963           $   (976)          $1,987
                                                           ===========================================

</TABLE>

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

General

The company was organized in September,  1997. On December 29, 1997, it acquired
all of the  outstanding  common stock of 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,  Office of
Thrift  Supervision  ("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 increased  approximately $2.7 million, or 2.2% to $123.4 million at
September 30, 2000,  from $120.7  million at December 31, 1999. The increase was
primarily  due to loan growth of $2.0  million.  Net loans  increased by 1.9% to
$108.2 million due to an increase in customer  demand and an increased  focus by
the Company in the areas of commercial and consumer lending.

Deposits increased by $3.6 million to $72.6 million during the nine months ended
September 30, 2000.  Demand and savings deposits  increased  $545,000,  or 2.4%,
from December 31, 1999 to September 30, 2000.  Certificates of deposit increased
$3.1 million, or 6.6%, during this period.

Borrowed  funds  increased by $694,000  from  December 31, 1999 to September 30,
2000.  The increases in borrowings  were  primarily to used to fund loan growth.
Shareholders'  equity  decreased  $1.8 million to $36.4 million at September 30,
2000.  The decrease was primarily due to stock  repurchases  of $2.6 million and
cash  dividends of $1.0 million.  These  decreases were offset by net income for
nine months ended  September 30, 2000 of $1.5 million,  Employee Stock Ownership
Plan  shares  earned  of  $87,000  and  unearned  compensation  amortization  of
$171,000.

Comparison  of Operating  Results for the Three Months Ended  September 30, 2000
and 1999

Net income  decreased  approximately  $68,000 from $540,000 for the three months
ended  September  30, 1999 to $472,000 for the three months ended  September 30,
2000.  The  return on average  assets  was 1.54% and 1.85% for the three  months
ended September 30, 2000 and 1999, respectively.

Interest  income was $2,312,000 for the three months ended September 30, 2000 as
compared to  $2,153,000  for the  comparable  period in 1999.  Interest  expense
increased  approximately  $206,000 or 21.0% from  $983,000  for the three months
ended September 30, 1999 to $1,189,000 for the same period in 2000. As a result,
net interest  income for the three months ended  September  30, 2000 amounted to
$1,123,000, approximately a $47,000 decrease from the third quarter of 1999.

The provision for loan losses made for both three month periods ended  September
30, 2000 and 1999 was $15,000.  The 2000  provision  and the  allowance for loan
losses were considered adequate,  based on size, condition and components of the
loan portfolio.  While management estimates loan losses using the best available
information,  no assurance  can be given that future  addition to the  allowance
will not be  necessary  based on  changes in  economic  and real  estate  market
conditions, further information obtained regarding problem loans, identification
of  additional  problem  loans and other  factors,  both  within and  outside of
management's control.

Total other  income was $7,000 for the three  months  ended  September  30, 2000
compared to $74,000 for the same  period in 1999.  This  decrease in total other
income was primarily  due to $73,000 of gains on sales of  securities  available
for sale during the third quarter of 1999. Other income also includes the equity
in losses of the  Company's  investment  in a limited  partnership,  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 September 30, 2000 and 1999.

Total other  expenses  increased  approximately  $30,000 for three  months ended
September  30, 2000  compared to the same period in 1999.  The increase in total
other  expense was  primarily  due to nominal  increases in a variety of expense
categories.

Income tax expense  decreased  $76,000,  or 19.6%,  for the three  months  ended
September  30,  2000  compared  to the same  period in 1999.  The  decrease  was
directly related to the decrease in taxable income for the period.

Comparison of Operating Results for the Nine Months Ended September 30, 2000 and
1999

Net income increased $56,000, or 3.9%, from $1,445,000 for the nine months ended
September 30, 1999 to $1,501,000  for the nine months ended  September 30, 2000.
The  return on  average  assets  was 1.65% and 1.71% for the nine  months  ended
September 30, 2000 and 1999, respectively.

Interest  income was $6,870,000 for the nine months ended  September 30, 2000 as
compared to $6,261,000  for the nine months ended  September 30, 1999.  Interest
expense increased $599,000,  or 21.7%, from $2,765,000 for the nine months ended
September 30, 1999 to $3,364,000  for the same period in 2000. As a result,  net
interest  income for both the nine month  periods  ended  September 30, 2000 and
1999 amounted to approximately  $3.5 million.  The Company's net interest margin
decreased from 4.2% for the nine months ended September 30, 1999 to 3.9% for the
comparable period in 2000.

The provisions for loan losses made for the nine months ended September 30, 2000
and 1999 were $45,000. The 2000 provision and the allowance for loan losses were
considered  adequate,  based  on  size,  condition  and  components  of the loan
portfolio.  While  management  estimates  loan losses  using the best  available
information,  no assurance  can be given that future  addition to the  allowance
will not be  necessary  based on  changes in  economic  and real  estate  market
conditions, further information obtained regarding problem loans, identification
of  additional  problem  loans and other  factors,  both  within and  outside of
management's control.

Total other  income was $22,000 for the nine  months  ended  September  30, 2000
compared to $73,000 for the same  period in 1999.  This  increase in total other
income was primarily due to 73,000 of gains on sales of securities available for
sale for the nine months ended September 30, 1999 as compared to gains of $8,000
for the same period in 2000.  Other income also includes the equity in losses of
the  Company's  investment  in a limited  partnership,  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 $135,000  was  recorded  for the nine months
ended September 30, 2000 and 1999.

Other  expenses  were  $1,247,000  for the nine months ended  September 30, 2000
compared to $1,291,000 for the 1999 period, a decrease of $44,000, or 3.4%. This
decrease  was  primarily  due to a decrease  in data  processing  expense.  Data
processing  expense  decreased from 105,000 for the nine months ended  September
30, 1999 to $59,000 for the  comparable  period in 2000,  a decrease of $46,000.
This  decrease  was  primarily  due to  approximately  $45,000 of  non-recurring
expenses  related to the Company's data processing  conversion  during the first
quarter of 1999.

Income  tax  expense  decreased  $54,000,  or 6.9%,  for the nine  months  ended
September  30, 2000  compared to the same  period in 1999.  The  decrease in tax
expense was the result of a recent  revision to the  Indiana  Code that  permits
financial  institutions  incorporated in Indiana to apportion income in the same
manner as financial institutions  incorporated in other states. This revision to
the statute was made  retroactive  to January 1, 1999 and recognized as a single
adjustment in the second quarter of 2000.

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  loans of  $464,000  classified  as  special  mention  as of
September  30, 2000 while there were no special  mention  loans at December  31,
1999.  In  addition,  Union  Federal  had $1.1  million  and  $650,000  of loans
classified  as  substandard  at  September  30,  2000  and  December  31,  1999,
respectively.  At  September  30,  2000 and  December  31,  1999,  no loans were
classified  as doubtful or loss.  At September  30, 2000,  and December 31, 1999
respectively,  $180,000 and $166,000 of the substandard  loans were  non-accrual
loans.  The  allowance  for loan  losses  was  $465,000,  or  .43%,  of loans at
September  30, 2000 as compared to $422,000,  or .40%,  of loans at December 31,
1999.

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
September  30,  2000,  Union  Federal had liquid  assets of $11.8  million and a
liquidity ratio of 12.9%

Other

The Securities and Exchange Commission  ("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).

Item 3. Quantitative and Qualitative Disclosures About Market Risk
------------------------------------------------------------------

Presented below, as of September 30, 2000 and 1999, 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 300 basis
points.

                                         September 30, 2000

                            Net Portfolio Value       NPV as % of PV of Assets
   Changes
   In Rates      $ Amount      $ Change      % Change     NPV Ratio      Change
   --------      --------      ---------     --------     ---------      ------
+300 bp         $26,087        -8,728        -25          23.03%         -518 bp
+200 bp          28,968        -5,847        -17          24.84%         -337 bp
+100 bp          31,896        -2,919         -8          26.58%         -163 bp
   0 bp          34,815                                   28.21%
-100 bp          37,363         2,548          7          29.55%         +134 bp
-200 bp          39,185         4,370         13          30.44%         +223 bp
-300 bp          40,948         6,133         18          31.27%         +306 bp




                                         September 30, 1999

                           Net Portfolio Value        NPV as % of PV of Assets
   Changes
   In Rates      $ Amount      $ Change      % Change     NPV Ratio      Change
   --------      --------      --------      --------     ---------      ------
+300 bp         $23,950        -9,230        -28%         21.91%         -576 bp
+200 bp          27,076        -6,084        -18%         23.99%         -368 bp
+100 bp          30,235        -2,925         -9%         25.96%         -171 bp
   0 bp          33,160                                   27.67%
-100 bp          35,578         2,418          7%         28.99%         +132 bp
-200 bp          37,562         4,402         13%         30.01%         +234 bp
-300 bp          39,592         6,432         19%         31.00%         +333 bp






<PAGE>


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 September 30, 2000.


<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: November 14, 2000                   By: /s/ Joseph E. Timmons
      -----------------                   -------------------------------------

                                                    Joseph E. Timmons
                                                    President and
                                                    Chief Executive Officer

Date: November 14, 2000                   By: /s/ Denise E. Swearingen
      -----------------                   ----------------------------

                                                    Denise E. Swearingen
                                                    Treasurer