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, 2003

                                       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
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 [ ]

Indicate  by check mark  whether  the  Registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

The  number of shares of the  Registrant's  common  stock,  without  par  value,
outstanding as of March 31, 2003 was 2,278,000.
<PAGE>

                             Union Community Bancorp
                                    Form 10-Q

                                      Index

                                                                        Page No.
                                                                        --------
FORWARD LOOKING STATEMENT                                                      3

PART I.  FINANCIAL INFORMATION                                                 4

Item 1.  Financial Statements                                                  4

           Consolidated Condensed Balance Sheets                               4

           Consolidated Condensed Statements of Income                         5

           Consolidated Condensed Statement of Shareholders' Equity            6

           Consolidated Condensed Statements 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.                                           11

Item 3.  Quantitative and Qualitative Disclosures about Market Risk           14

Item 4.  Controls and Procedures                                              14

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                    15
Item 2.  Changes in Securities and Use of Proceeds                            15
Item 3.  Defaults Upon Senior Securities                                      15
Item 4.  Submission of Matters to a Vote of Security Holders                  15
Item 5.  Other Information                                                    15
Item 6.  Exhibits and Reports on Form 8-K                                     15

SIGNATURES                                                                    16

CERTIFICATIONS                                                                16
<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>
<TABLE>
<CAPTION>

PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements
-----------------------------

                                  UNION COMMUNITY BANCORP AND SUBSIDIARY
                                  Consolidated Condensed Balance Sheets

                                                                    March 31,          December 31,
                                                                      2003                 2002
                                                                  -------------       --------------
                                                                   (Unaudited)
Assets
<S>                                                               <C>                <C>
   Cash                                                          $    724,391        $    992,705
   Interest-bearing demand deposits                                50,292,982          35,593,482
                                                                 ------------        ------------
       Cash and cash equivalents                                   51,017,373          36,586,187
   Interest-bearing deposits                                          145,107
   Investment securities
       Available for sale                                           3,005,625
       Held to maturity                                             1,210,903           1,636,513
                                                                 ------------        ------------
            Total investment securities                             4,216,528           1,636,513
   Loans, net of allowance for loan losses of $1,060,000
      and $1,030,000                                              211,270,175         216,703,469
   Premises and equipment                                           3,804,355           3,238,899
   Federal Home Loan Bank stock                                     3,423,600           3,423,600
   Investment in limited partnership                                  846,609             836,609
   Foreclosed assets and real estate held for development, net      1,576,948           1,607,146
   Goodwill 2,392,808                                               2,296,927
   Core deposit intangible                                            463,176             484,820
   Interest receivable                                              1,218,163           1,276,538
   Other assets                                                       869,903           1,080,502
                                                                 ------------        ------------
       Total assets                                              $281,244,745        $269,316,317
                                                                 ============        ============

Liabilities
   Deposits
       Noninterest-bearing                                       $  4,460,841        $  3,849,659
       Interest-bearing                                           197,030,792         186,341,769
                                                                 ------------        ------------
            Total deposits                                        201,491,633         190,191,428
   Federal Home Loan Bank advances                                 39,559,460          39,751,631
   Note payable                                                       131,892             302,892
   Interest payable                                                   484,262             650,182
   Dividends payable                                                  341,700             341,700
   Other liabilities                                                1,638,660             889,967
                                                                 ------------        ------------
       Total liabilities                                          243,647,607         232,127,800
                                                                 ------------        ------------

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 - 2,278,000 shares                   24,173,686          24,159,185
   Retained earnings                                               15,355,230          15,032,214
   Accumulated other comprehensive income                               3,397
   Unearned employee stock ownership plan (ESOP) shares            (1,299,801)         (1,323,401)
   Unearned recognition and retention plan (RRP) shares              (635,374)           (679,481)
                                                                 ------------        ------------
       Total shareholders' equity                                  37,597,138          37,188,517
                                                                 ------------        ------------
       Total liabilities and shareholders' equity                $281,244,745        $269,316,317
                                                                 ============        ============

See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                   Consolidated Condensed Statements of Income
                                   (Unaudited)

                                                                           Three Months Ended
                                                                                March 31
                                                                     -----------------------------
                                                                         2003              2002
                                                                     -----------        -----------
Interest and Dividend Income
<S>                                                                  <C>                <C>
   Loans                                                             $4,021,991         $4,452,342
   Investment securities                                                 31,823             48,890
   Dividends on Federal Home Loan Bank stock                             44,000             50,651
   Deposits with financial institutions                                 128,657             68,524
                                                                     ----------         ----------
       Total interest and dividend income                             4,226,471          4,620,407
                                                                     ----------         ----------

Interest Expense
   Deposits                                                           1,468,828          1,695,338
   Federal Home Loan Bank advances                                      452,230            412,062
                                                                     ----------         ----------
       Total interest expense                                         1,921,058          2,107,400
                                                                     ----------         ----------

Net Interest Income                                                   2,305,413          2,513,007
   Provision for loan losses                                             30,000             40,000
                                                                     ----------         ----------
Net Interest Income After Provision for Loan Losses                   2,275,413          2,473,007
                                                                     ----------         ----------

Other Income (Losses)
   Service charges on deposit accounts                                   35,738             32,254
   Equity in gains (losses) of limited partnerships                      10,000             (5,000)
   Net realized gains on sales of available for sale securities                              5,960
   Other income                                                          23,144             43,511
                                                                     ----------         ----------
       Total other income                                                68,882             76,725
                                                                     ----------         ----------

Other Expenses
   Salaries and employee benefits                                       720,284            710,834
   Net occupancy expenses                                                76,002             57,465
   Equipment expenses                                                    79,887             71,487
   Legal and professional fees                                           85,525             40,518
   Data processing fees                                                 101,250            480,041
   Other expenses                                                       279,800            239,984
                                                                     ----------         ----------
       Total other expenses                                           1,342,748          1,600,329
                                                                     ----------         ----------

Income Before Income Tax                                              1,001,547            949,403
   Income tax expense                                                   356,682            302,480
                                                                     ----------         ----------
Net Income                                                           $  644,845         $  646,923
                                                                     ==========         ==========

Basic Earnings per Share                                             $      .31         $      .30

Diluted Earnings per Share                                                  .31                .30

Dividends per Share                                                         .15                .11

See notes to consolidated condensed financial statements.


</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                           UNION COMMUNITY BANCORP AND SUBSIDIARY
                                   Consolidated Condensed Statement of Shareholders' Equity
                                            For the Three Months Ended March 31, 2003
                                                            (Unaudited)

                                     Common Stock                               Accumulated
                             ------------------------                              Other      Unearned
                               Shares                 Comprehensive Retained   Comprehensive    ESOP        Unearned
                             Outstanding     Amount        Income   Earnings      Income       Shares     Compensation     Total
                              ---------   -----------     -------- -----------  ----------  ------------   ----------   -----------
<S>               <C>         <C>         <C>                      <C>                      <C>            <C>          <C>
Balances, January 1, 2003     2,278,000   $24,159,185              $15,032,214              $(1,323,401)   $(679,481)   $37,188,517
Comprehensive income
  Net income for the period                               $644,865     644,865                                              644,865
    Other comprehensive
      income, net of tax
      Unrealized gains on
        securities                                           3,397                 3,397                                     $3,397
                                                          --------
  Comprehensive income                                    $648,262
                                                          ========
  Cash dividends ($.15 per share)                                     (321,849)                                            (321,849)
  Amortization of unearned
  compensation expense
                                                                                                              44,107         44,107
  ESOP shares earned                           14,501                                            23,600                      38,101
                              -----------------------              ----------------------------------------------------------------
Balances, March 31, 2003      2,278,000   $24,173,686              $15,355,230    $3,397     (1,299,801)   $(635,374)   $37,597,138
                              =======================              ================================================================

See notes to consolidated condensed financial statements.


</TABLE>
<PAGE>
<TABLE>
<CAPTION>


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

                                                                                        Three Months Ended
                                                                                              March 31,
                                                                              -------------------------------------
                                                                                  2003                      2002
                                                                              ------------              -----------
Operating Activities
<S>                                                                            <C>                       <C>
   Net income                                                                  $  644,865                $  646,923
   Adjustments to reconcile net income to net cash provided by
     operating activities
       Provision for loan losses                                                   30,000                    40,000
       Depreciation and amortization                                              106,188                    76,871
       Investment securities accretion, net                                          (216)                     (825)
       Gain on sale of investment securities available for sale                      ----                    (5,960)
       Loss on sale of real estate owned                                           18,435                    10,938
       Equity in losses (gains) of limited partnerships                           (10,000)                    5,000
       Amortization of purchase accounting adjustments                            (84,844)                 (226,668)
       Amortization of unearned compensation expense                               44,107                    85,310
       ESOP shares earned                                                          38,101                    34,713
       Net change in:
          Interest receivable                                                      58,375                    24,255
          Interest payable                                                       (165,920)                 (207,500)
       Other adjustments                                                          701,948                 1,537,446
                                                                              -----------               -----------
            Net cash provided by operating activities                           1,381,039                 2,020,503
                                                                              -----------               -----------

Investing Activities
   Net change in interest-bearing deposits                                           ----                   100,000
   Investment securities
       Purchase of investment securities available for sale                    (3,000,000)
       Proceeds from sales of investment securities available for sale               ----                    51,534
       Proceeds from maturities of securities held to maturity and
         paydowns of mortgage-backed securities                                   425,826                   223,011
   Net changes in loans                                                         5,211,813                   774,316
   Net cash received in acquisition                                                  ----                15,866,825
   Additions to real estate owned                                                 (33,480)                  (34,584)
   Proceeds from real estate sales                                                186,565                    92,812
   Purchases of property and equipment                                           (640,778)                   (4,702)
   Other investing activities                                                     (95,881)                     ----
                                                                              -----------               -----------
            Net cash provided by investing activities                           2,054,065                17,069,212
                                                                              -----------               -----------

Financing Activities
   Net change in
       Interest-bearing demand and savings deposits                            13,785,845                 8,863,199
       Certificates of deposit                                                 (2,405,140)              (16,125,199)
   Proceeds from borrowings                                                          ----                20,000,000
   Repayment of borrowings                                                       (317,890)              (20,311,993)
   Cash dividends                                                                (321,849)                 (292,183)
   Repurchase of common stock                                                        ----                (4,714,000)
   Net change in advances by borrowers for taxes and insurance                    255,116                   330,162
                                                                              -----------               -----------
            Net cash provided by (used in) financing activities                10,996,082               (12,250,014)
                                                                              -----------               -----------

Net Change in Cash and Cash Equivalents                                        14,431,186                 6,839,701

Cash and Cash Equivalents, Beginning of Period                                 36,586,187                13,564,902
                                                                              -----------               -----------
Cash and Cash Equivalents, End of Period                                      $51,017,373               $20,404,603
                                                                              ===========               ===========

Additional Cash Flows Information
   Interest paid                                                              $ 2,086,978               $ 2,314,900
   Income tax paid                                                                   ----                    62,000
   Loans transferred to foreclosed real estate                                    172,188                    60,022

See notes to consolidated condensed financial statements.



</TABLE>
<PAGE>
                     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, an Indiana corporation (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, 2002 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, 2003,  and for the
three months ended March 31, 2003 and 2002, 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.  The
results of operations for the  three-month  period ended March 31, 2003, are not
necessarily indicative of the results which may be expected for the entire year.
The consolidated  condensed balance sheet of the Company as of December 31, 2002
has been derived from the audited  consolidated  balance sheet of the Company as
of that date.

<TABLE>
<CAPTION>

Note 2: Earnings Per Share
--------------------------

Earnings per share have been  computed  based upon the  weighted-average  common
shares  outstanding.  Unearned  Employee  Stock  Ownership Plan shares have been
excluded from the computation of average common shares outstanding.

                                                                   Weighted-
   For the Three Months Ended March 31, 2003                        Average          Per Share
                                                     Income         Shares             Amount
                                                    --------       ---------         ---------
<S>                                                 <C>            <C>                 <C>
     Basic earnings per share
        Income available to common stockholders     $644,864       2,091,330           $0.31

     Effect of dilutive stock options                                 15,280
                                                    -----------------------------------------

     Diluted earnings per share
        Income available to common stockholders
           and assumed conversions                  $644,864       2,106,610           $0.31
                                                    ========================================



                                                                   Weighted-
   For the Three Months Ended March 31, 2002                        Average          Per Share
                                                     Income         Shares             Amount
                                                    --------       ---------         ---------
     Basic earnings per share
        Income available to common stockholders     $646,923       2,166,623           $0.30

     Effect of dilutive stock options                                   ----
                                                    -----------------------------------------

     Diluted earnings per share
        Income available to common stockholders
           and assumed conversions                  $646,923       2,166,623           $0.30
                                                    ========================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

Note 3: Other Comprehensive Income
----------------------------------

         For the Three Months Ended March 31, 2003                       Before-Tax       Tax       Net-of-Tax
                                                                           Amount       Expense       Amount
                                                                         ----------    ---------    ----------
<S>                                                                        <C>         <C>            <C>
    Unrealized gains on securities:
       Unrealized holding gains arising during the year                    $5,625      $(2,228)       $3,397
       Less: reclassification adjustments for gains realized
          in net income                                                       ---          ---           ---
                                                                         -------------------------------------
    Other comprehensive income                                             $5,625      $(2,228)       $3,397
                                                                         =====================================



         For the Three Months Ended March 31, 2002                       Before-Tax       Tax       Net-of-Tax
                                                                           Amount       Expense       Amount
                                                                         ----------    ---------    ----------
    Unrealized gains on securities:
       Unrealized holding gains arising during the year                    $7,575      $(3,001)       $4,574
       Less: reclassification adjustments for gains realized
          in net income                                                     5,960       (2,361)        3,599
                                                                         -------------------------------------
    Other comprehensive income                                             $1,615      $  (640)       $  975
                                                                         =====================================
</TABLE>

Note 4: Stock Options
---------------------

The Company has a stock-based  employee  compensation  plan,  which is described
more fully in the Notes to  Financial  Statements  included in the  December 31,
2002 Annual Report to shareholders. The Company accounts for this plan under the
recognition  and  measurement  principles of APB Opinion No. 25,  Accounting for
Stock Issued to Employees, and related interpretations.  No stock-based employee
compensation  cost is reflected in net income,  as all options granted under the
plan had an exercise  price equal to the market value of the  underlying  common
stock on the grant  date.  The  following  table  illustrates  the effect on net
income  and  earnings  per  share if the  Company  had  applied  the fair  value
provisions  of  Statement of Financial  Accounting  Standards  ("SFAS") No. 123,
Accounting for Stock-Based Compensation, to stock-based employee compensation.

<TABLE>
<CAPTION>


                                                               Three Months Ended     Three Months Ended
                                                                 March 31, 2003         March 31, 2002
                                                               ------------------     ------------------

<S>                                                                   <C>                     <C>
    Net income, as reported                                           $644,845                $646,923
    Less:  Total stock-based employee compensation cost
      determined under the fair value based method, net of
      income taxes
                                                                         9,133                  12,016
                                                                  -------------------------------------

   Pro forma net income                                               $635,712                $634,907
                                                                  =====================================
   Earnings per share:
       Basic - as reported                                                $.31                    $.30
       Basic - pro forma                                                  $.30                    $.29
       Diluted - as reported                                              $.31                    $.30
       Diluted - pro forma                                                $.30                    $.29

</TABLE>


Note 5: Effect of Recent Accounting Pronouncements
--------------------------------------------------

The  Financial  Accounting  Standards  Board  ("FASB")  adopted  SFAS  No.  148,
Accounting  for  Stock-Based  Compensation  - Transition  and  Disclosure.  This
Statement   amends  FASB   Statement  No.  123,   Accounting   for   Stock-Based
Compensation.  SFAS No. 148 provides  alternative  methods of  transition  for a
voluntary  change to the fair value based method of accounting  for  stock-based
employee  compensation.   In  addition,  SFAS  No.  148  amends  the  disclosure
requirements  of SFAS No.  123 to  require  more  prominent  and  more  frequent
disclosures   in  financial   statements   about  the  effects  of   stock-based
compensation.  Under the provisions of SFAS No. 123,  companies that adopted the
fair value based method were required to apply that method prospectively for new
stock option  awards.  This  contributed  to a "ramp-up"  effect on  stock-based
compensation  expense in the first few years  following  adoption,  which caused
concern  for  companies  and  investors  because of the lack of  consistency  in
reported results. To address that concern,  SFAS No. 148 provides two additional
methods of transition  that reflect an entity's full  complement of  stock-based
compensation expense immediately upon adoption,  thereby eliminating the ramp-up
effect.

SFAS No. 148 also improves the clarity and prominence of  disclosures  about the
proforma  effects  of using  the fair  value  based  method  of  accounting  for
stock-based compensation for all companies - regardless of the accounting method
used - by requiring  that the data be presented more  prominently  and in a more
user-friendly format in the footnotes to the financial statements.  In addition,
SFAS No. 148 improves the timeliness of those disclosures by requiring that this
information be included in interim as well as annual  financial  statements.  In
the past,  companies were required to make proforma  disclosures  only in annual
financial statements.

The  transition  guidance and annual  disclosure  provisions of SFAS No. 148 are
effective  for fiscal  years  ending  after  December  15,  2002,  with  earlier
application   permitted  in  certain   circumstances.   The  interim  disclosure
provisions are effective for financial reports containing  financial  statements
for interim periods beginning after December 15, 2002.

The FASB has  stated it  intends  to issue a new  statement  on  accounting  for
stock-based  compensation  and will require  companies to expense  stock options
using a fair value based method at date of grant. The date of implementation for
this state statement is not known.

In November 2002, the FASB issued Interpretation No. 45, Guarantor's  Accounting
and Disclosure  Requirements for Guarantees,  Including  Indirect  Guarantees of
Indebtedness  of Others ("FIN 45"). FIN 45 will change  current  practice in the
accounting   for  and   disclosure  of   guarantees.   Guarantees   meeting  the
characteristics  described in FIN 45 are  required to be  initially  recorded at
fair value,  which is different from the general current practice of recording a
liability only when a loss is probable and reasonably estimable,  as those terms
are defined in FASB Statement No. 5, Accounting for  Contingencies.  FIN 45 also
requires a guarantor to make new  disclosures  for virtually all guarantees even
if the likelihood of the guarantor's having to make payments under the guarantee
is remote.

In general,  FIN 45 applies to  contracts  or  indemnification  agreements  that
contingently  require the  guarantor to make  payments to the  guaranteed  party
based on changes in an underlying asset, liability, or an equity security of the
guaranteed party such as financial standby letters of credit.

Disclosure  requirements  of FIN 45 are effective  for  financial  statements of
interim  or  annual   periods  ending  after  December  31,  2002.  The  initial
recognition and measurement  provisions are applicable on a prospective basis to
guarantees  issued or modified  after  December  31, 2002,  irrespective  of the
guarantor's fiscal year-end.  The guarantor's previous accounting for guarantees
issued prior to the date of FIN 45 initial applications should not be revised or
restated to reflect the provisions of FIN 45.

The Company  adopted FIN 45 on January 1, 2003.  The adoption of FIN 45 does not
currently  have a  material  impact  on  the  Company's  consolidated  financial
statements.


Note 6: Reclassifications
-------------------------

Certain  reclassifications  have  been made to the 2002  consolidated  condensed
financial statements to conform to the March 31, 2003 presentation.


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
the 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.    The   Company   acquired   Montgomery   Financial    Corporation
("Montgomery")  in a  transaction  that  closed  on  January  2,  2002.  In  the
transaction,  Montgomery  was merged with and into the Company,  and  Montgomery
Savings,  a federally  chartered thrift, was merged with and into Union Federal.
Following the merger,  MSA Service  Corporation  ("MSA")  became a subsidiary of
Union Federal.

Union Federal was organized as a state-chartered savings and loan association in
1913.  Union  Federal  conducts  its  business  from its main office  located in
Crawfordsville,  Indiana.  In addition,  Union Federal has two additional branch
offices in  Crawfordsville  and branch  offices in Covington,  Williamsport  and
Lafayette,  Indiana.  Four of the above  mentioned  branch offices were added in
connection with the acquisition of Montgomery.

Union Federal offers a variety of lending,  deposit and other financial services
to its retail and  commercial  customers.  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 of
the Federal  Deposit  Insurance  Corporation.  Union Federal  offers a number of
financial  services,  which include:  (i)  residential  real estate loans;  (ii)
multi-family loans; (iii) commercial real estate loans; (iv) construction loans;
(v) home improvement loans and consumer loans, including single-pay loans, loans
secured by deposits,  installment  loans and commercial loans; (vi) money market
demand accounts;  (vii) passbook savings  accounts;  and (viii)  certificates of
deposit.

Union Federal currently owns two subsidiaries,  UFS Service Corp. ("UFS"), whose
sole asset is its investment in Pedcor Investments 1993-XVI, L.P. ("Pedcor") and
MSA, which is a real estate  management and  development  company.  Pedcor 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,  operates a multi-family,  low- and  moderate-income  housing  project,
which 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. At present, MSA owns a tract of land in Crawfordsville,  Indiana, which
is being  developed  for the  construction  of seven  condominium  units.  Union
Federal's  investment  in MSA is excluded  from 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.


Critical Accounting Policies

Note 1 to the  consolidated  financial  statements  contains  a  summary  of the
Company's  significant  accounting  policies presented on pages 25 through 27 of
the Annual Report to  Shareholders  for the year ended December 31, 2002,  which
was filed on Form 10-K with the  commission on March 28, 2003.  Certain of these
policies are important to the portrayal of the  Company's  financial  condition,
since  they  require  management  to  make  difficult,   complex  or  subjective
judgments,  some of which may relate to matters that are  inherently  uncertain.
Management  believes that its critical  accounting  policies include determining
the allowance for loan losses,  the valuation of the foreclosed  assets and real
estate held for development, and the valuation of intangible assets.


Allowance for loan losses

The allowance for loan losses is a significant estimate that can and does change
based on management's  assumptions about specific  borrowers and current general
economic and business  conditions,  among other factors.  Management reviews the
adequacy of the  allowance  for loan losses at least on a quarterly  basis.  The
evaluation includes a review of payment performance,  adequacy of collateral and
financial condition of all major borrowers.  A review of all nonperforming loans
and  other  identified  problem  loans  is  performed  and  the  probability  of
collecting all amounts due thereunder is determined. In addition, changes in the
composition of the loan  portfolio,  the total  outstanding  loans and past loss
experience  are reviewed to determine  the  adequacy of the  allowance  for loan
losses. Current economic and market conditions and potential negative changes to
economic  conditions  are also  reviewed in  determining  possible  loan losses.
Although it is the intent of  management  to fully  evaluate  and  estimate  the
potential effects of economic and market  conditions,  changes in the conditions
are susceptible to significant  changes beyond those  projected.  A worsening or
protracted economic decline beyond  management's  projections would increase the
likelihood of additional losses due to the additional credit and market risk and
could create the need for additional  loss reserves.  Foreclosed  asset and real
estate held for development

Foreclosed  assets and real estate held for development are carried at the lower
of cost or fair value less  estimated  selling costs.  Management  estimates the
fair value of the properties based on current appraisal information.  Reviews of
estimated  fair  value  are  performed  on at least an  annual  basis.  Economic
environment,  market  conditions  and the real  estate  market  are  continually
monitored and  decreases in the carried  value are written down through  current
operations when any of these factors  indicate a decrease to the market value of
the assets.  Future worsening or protracted economic conditions and a decline in
the real estate  market would  increase the  likelihood of a decline in property
values and could create the need for future write downs of the properties held.


Intangible assets

Management  periodically  assesses  the  impairment  of  its  goodwill  and  the
recoverability of its core deposit intangible.  Impairment is the condition that
exists when the carrying  amount of goodwill  exceeds its implied fair value. If
actual external conditions and future operating results differ from management's
judgments,  impairment and/or increased amortization charges may be necessary to
reduce the carrying value of these assets to the appropriate  value. A review of
the fair  value  of the  Company's  goodwill  and core  deposit  intangible  was
performed  in the fourth  quarter of 2002 and it was  management's  opinion that
there was no impairment to these intangible assets as of the date of the review.


Financial Condition

Total assets  increased  $11.9 million to $281.2  million at March 31, 2003 from
$269.3 million at December 31, 2002. Net loans  decreased $5.4 million to $211.3
million at March 31, 2003.  Cash and cash  equivalents  increased  $14.4 million
from December 31, 2002 to March 31, 2003.  The increase was primarily due to the
decrease in loans and an increase in deposits  partially offset by an investment
of $3.0  million  in  available  for sale  securities.  Premises  and  equipment
increased  $565,000 to $3.8 million at March 31, 2003  primarily due to the cost
of the current remodeling of Union Federal's home office. In connection with the
Montgomery acquisition, the balance of goodwill and core deposit intangibles are
$2.4 million and $463,000  respectively.  Goodwill will be reviewed annually for
impairment and core deposit intangibles are currently being amortized.  Deposits
increased by $11.3  million to $201.5  million and borrowed  funds  decreased by
$363,000 during the first quarter of 2003.

Shareholders'  equity increased $409,000 to $37.6 million at March 31, 2003. The
increase  was  primarily  due to net income for the three months ended March 31,
2003 of  $645,000,  Employee  Stock  Ownership  Plan  shares  earned of $38,000,
unearned  compensation  amortization of $44,000 and unrealized gain on available
for sale securities of $3,000 offset by cash dividends of $322,000.


Comparison  of  Operating  Results for the Three Months Ended March 31, 2003 and
2002

Net income  decreased  $2,000 from $647,000 for the three months ended March 31,
2002 to  $645,000  for the three  months  ended  March 31,  2003.  The return on
average  assets for the three months  ended March 31, 2003 was .93%  compared to
..94% for the  comparable  period in 2002.  The return on average  equity for the
three months ended March 31, 2003 was 6.89% compared to 6.47% for the comparable
period in 2002.

For the three months ended March 31, 2003,  interest  income was $4.2 million as
compared to $4.6 million for the three  months  ended March 31,  2002.  Interest
income  decreased  primarily  due to a decrease in the yield on  interest-earing
assets from 6.98% during the 2002 period to 6.36% during the 2003 period,  which
was offset by an increase in average  interest-earning asset from $263.3 million
at March 31,  2002 to $276.4  million at March 31,  2003.  For the three  months
ended March 31,  2003,  interest  expense  was $1.9  million as compared to $2.1
million for the three months ended March 31, 2002.  Interest  expense  decreased
primarily  due to a decrease in the cost of  interest-bearing  liabilities  from
3.69% during the 2002 period to 3.30%  during the 2003 period,  which was offset
by an increase in average  interest-bearing  liabilities  from $228.7 million at
March 31, 2002 to $233.1  million at March 31,  2003.  Amortization  of purchase
accounting  adjustments also impacted  interest expense during the 2002 and 2003
periods.  The amortization of purchase  accounting  adjustments reduced interest
expense by $126,000 in the 2003 period  compared to a reduction  of $276,000 for
the 2002 period.

The  provision  for loan  losses for the three  months  ended March 31, 2003 was
$30,000 as compared to $40,000 for the  comparable  period in 2002.  A review is
performed  quarterly  to determine  the  adequacy of the current  balance in the
allowance for loan losses.

Total other expenses  decreased from $1,600,000 for the three months ended March
31, 2002 to $1,343,000 for the comparable period in 2003.  Expenses decreased in
part due to a one-time  $411,000  termination fee for data  processing  services
charged  to  expense  during  the first  quarter  of 2002  offset by the cost of
additional services being offered and the growth of the Company.


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.
At both March 31, 2003 and December  31, 2002 Union  Federal had $7.0 million in
classified  loans.  Union  Federal had $3.4  million  and $2.7  million in loans
classified  as  special  mention  as of March 31,  2003 and  December  31,  2002
respectively.  In addition,  Union  Federal had $3.5 million and $4.2 million of
loans  classified  as  substandard  at March 31,  2003 and  December  31,  2002,
respectively.  At both March 31, 2003 and December  31, 2002,  $103,000 in loans
was  classified  as doubtful and no loans were  classified as loss. At March 31,
2003, and December 31, 2002, respectively,  $3.6 million and $3.1 million of the
substandard and doubtful loans were  non-accrual  loans.  The allowance for loan
losses  was  $1,060,000  or .50% of loans  at  March  31,  2003 as  compared  to
$1,030,000 or .47% of loans at December 31, 2002.
<PAGE>

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, 2003, Union Federal had liquid assets of $51.1 million and a liquidity ratio
of 21.3%.


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.


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

Presented  below, as of December 31, 2002 and 2001, is the most recent available
analyses  performed by the OTS of Union Federal's interest rate risk as measured
by changes in net  portfolio  value  ("NPV")  for  instantaneous  and  sustained
parallel shifts in the yield curve, in 100 basis point increments.

<TABLE>
<CAPTION>

  Union Federal:

                               At December 31, 2002                    At December 31, 2001
                       -----------------------------------     -----------------------------------
  Changes In Rates     $ Change in NPV     % Change in NPV     $ Change in NPV     % Change in NPV
  ----------------     ---------------     ---------------     ---------------     ---------------
<S>    <C>                <C>                   <C>                <C>                  <C>
      +300 bp             $(9,699)              (22)%              $(7,734)             (31)%
      +200 bp              (5,377)              (12)                (5,185)             (20)
      +100 bp              (1,621)               (4)                (2,507)             (10)
         0 bp                   0                 0                      0                0
      -100 bp                (660)               (2)                 1,424                6
</TABLE>

Management  believes that at March 31, 2003, 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 on pages 17-19 of
the Company's Annual Report on Form 10-K for the period ended December 31, 2002.


Item 4. Controls and Procedures
-------------------------------

Within the 90-day period prior to the filing date of this report,  an evaluation
was  carried  out  under  the  supervision  and  with the  participation  of the
Company's management,  including our Chief Executive Officer and Chief Financial
Officer,  of the  effectiveness  of our  disclosure  controls and procedures (as
defined in Exchange  Act Rules  13a-14(c)  and  15d-14(c)  under the  Securities
Exchange Act of 1934).  Based on their  evaluation,  our Chief Executive Officer
and  Chief  Financial  Officer  have  concluded  that the  Company's  disclosure
controls and procedures are, to the best of their knowledge, effective to ensure
that  information  required to be  disclosed  by the Company in reports  that it
files or submits under the Exchange Act is recorded,  processed,  summarized and
reported within the time periods specified in Securities and Exchange Commission
rules and forms. Subsequent to the date of their evaluation, our Chief Executive
Officer  and  Chief  Financial   Officer  have  concluded  that  there  were  no
significant  changes in the Company's internal controls or in other factors that
could  significantly  affect its internal  controls,  including  any  corrective
actions with regard to significant deficiencies and material weaknesses.
<PAGE>

PART II.   OTHER INFORMATION

Item 1.   Legal Proceedings

          Although the Company and its subsidiaries  are involved,  from time to
          time, in various legal  proceedings  arising in the ordinary course of
          business,  there are no material legal proceedings to which they are a
          party or to which their property is subjejct.


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.

          No matter was submitted to a vote of the Company's shareholders during
          the first quarter of 2003.


Item 5.   Other Information.

          None.


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

          (a)  Exhibits

               Exhibit 99.1  Certifications  of the Chief Executive  Officer and
               Chief Financial  Officer  pursuant to 18 U.S.C.  Section 1350, as
               adopted  pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
               2002.

          (b)  Reports on Form 8-K

               No  reports on Form 8-K were  filed  during the first  quarter of
               2003.
<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 12, 2003                  By: /s/ Alan L. Grimble
                                            ------------------------------------
                                            Alan L. Grimble
                                            Chief Executive Officer



Date:         May 12, 2003                  By: /s/ J. Lee Walden
                                            ------------------------------------
                                            J. Lee Walden
                                            Chief Financial Officer

<PAGE>

                                 CERTIFICATIONS


I, Alan L. Grimble, certify that:


1.   I have  reviewed  this  quarterly  report on Form  10-Q of Union  Community
     Bancorp;

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; and

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  officer  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)  designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     (b)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date.

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)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and


6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report  whether  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: May 12, 2003
                                              /s/ Alan L. Grimble
                                              ----------------------------------
                                              Alan L. Grimble
                                              Chief Executive Officer
<PAGE>

                                 CERTIFICATIONS

I, J. Lee Walden, certify that:

1.   I have  reviewed  this  quarterly  report on Form  10-Q of Union  Community
     Bancorp;

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; and

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  officer  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)  designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     (b)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date.

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)  all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     (b)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report  whether  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.


Dated: May 12, 2003
                                              /s/ J. Lee Walden
                                              ----------------------------------
                                              J. Lee Walden
                                              Chief Financial Officer