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 JUNE 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 June 30, 2000 was 2,486,050.


<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                                                   12
Item 2.   Changes in Securities and Use of Proceeds                           12
Item 3.   Defaults Upon Senior Securities                                     12
Item 4.   Submission of Matters to a Vote of Security Holders                 12
Item 5.   Other Information                                                   12
Item 6.   Exhibits and Reports on Form 8-K                                    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

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                      Consolidated Condensed Balance Sheet

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                  June 30,               December 31,
                                                                                    2000                     1999
                                                                              --------------------- ------------------
  Assets
<S>                                                                            <C>                    <C>
       Cash                                                                    $      135,930         $       286,812
       Interest-bearing demand deposits                                             2,006,400               2,830,213
                                                                              --------------------- ------------------
           Cash and cash equivalents                                                2,142,330               3,117,025
       Investment securities
           Available for sale                                                         197,500                 315,463
           Held to maturity                                                         7,714,537               7,521,923
                                                                              --------------------- ------------------
                Total investment securities                                         7,912,037               7,837,386
       Loans, net of allowance for loan losses
          of $452,258 and $422,258                                                108,109,192             106,173,782
       Premises and equipment                                                         364,975                 367,427
       Federal Home Loan Bank stock                                                 1,043,700               1,043,700
       Investment in limited partnership                                              956,609               1,011,609
       Interest receivable                                                            741,645                 823,768
       Other assets                                                                   155,806                 278,942
                                                                              --------------------- ------------------
           Total assets                                                         $ 121,426,294          $  120,653,639
                                                                              ===================== ==================

  Liabilities

       Deposits
           Noninterest-bearing                                                $     2,446,088        $      1,151,075
           Interest-bearing                                                        68,274,111              67,839,367
                                                                              --------------------- ------------------
                Total deposits                                                     70,720,199              68,990,442
       Federal Home Loan Bank advances                                             11,534,893              11,658,526
       Note payable                                                                   654,542                 837,442
       Interest payable                                                               168,319                 122,565
       Dividends payable                                                              336,924                 315,591
       Other liabilities                                                              469,507                 449,158
                                                                              --------------------- ------------------
           Total liabilities                                                       83,884,384              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 - 2,486,050 and 2,600,700 shares                 24,273,989              25,389,422
       Retained earnings                                                           16,147,424              15,912,206
       Accumulated other comprehensive income (loss)                                   (7,797)                 15,385
       Unearned employee stock ownership plan ("ESOP") shares                      (1,572,785)             (1,624,444)
       Unearned recognition and retention plan ("RRP") shares                      (1,298,921)             (1,412,654)
                                                                              --------------------- ------------------
           Total shareholders' equity                                              37,541,910              38,279,915
                                                                              --------------------- ------------------

           Total liabilities and shareholders' equity                           $ 121,426,294          $  120,653,639
                                                                              ===================== ==================

</TABLE>
See notes to consolidated condensed financial statements.


<PAGE>

                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                   Consolidated Condensed Statement of Income
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                      Three Months Ended                  Six Months Ended
                                                                            June 30                          June 30
                                                               ---------------- ----------------- ---------------- ----------------
                                                                     2000             1999             2000             1999
                                                               ---------------- ----------------- ---------------- ----------------
  Interest and Dividend Income
<S>                                                              <C>              <C>               <C>              <C>
       Loans                                                     $   2,108,416    $   1,903,945     $   4,214,690    $   3,720,294
       Investment securities                                           133,735          142,018           265,226          283,550
       Dividends on Federal Home Loan Bank stock                        20,760           16,882            41,520           31,568
       Deposits with financial institutions                             13,659           24,012            36,955           73,057
                                                               ---------------- ----------------- ---------------- ----------------
           Total interest and dividend income                        2,276,570        2,086,857         4,558,431        4,108,469
                                                               ---------------- ----------------- ---------------- ----------------

  Interest Expense

       Deposits                                                        933,270          865,493         1,830,652        1,724,718
       Federal Home Loan Bank advances                                 173,614           46,626           344,794           58,040
                                                               ---------------- ----------------- ---------------- ----------------
           Total interest expense                                    1,106,884          912,119         2,175,446        1,782,758
                                                               ---------------- ----------------- ---------------- ----------------

  Net Interest Income                                                1,169,686        1,174,738         2,382,985        2,325,711
       Provision for loan losses                                        15,000           15,000            30,000           30,000
                                                               ---------------- ----------------- ---------------- ----------------
  Net Interest Income After Provision for Loan Losses                1,154,686        1,159,738         2,352,985        2,295,711
                                                               ---------------- ----------------- ---------------- ----------------

  Other Income (Losses)
       Equity in losses of limited partnerships                        (25,000)         (27,500)          (55,000)         (52,500)
       Gain on securities available for sale                                                                8,331
       Other income                                                     28,767           38,434            61,863           52,213
                                                               ---------------- ----------------- ---------------- ----------------
           Total other income (losses)                                   3,767           10,934            15,194             (287)
                                                               ---------------- ----------------- ---------------- ----------------

  Other Expenses

       Salaries and employee benefits                                  266,848          248,376           532,954          515,245
       Net occupancy and equipment expenses                             15,614           21,496            26,506           36,546
       Deposit insurance expense                                         3,820           10,774             7,660           21,995
       Legal and professional fees                                      48,521           48,113            71,326           82,662
       Data processing fees                                             19,538           24,852            39,040           85,875
       Other expenses                                                   82,132           90,500           151,602          160,679
                                                               ---------------- ----------------- ---------------- ----------------
           Total other expenses                                        436,473          444,111           829,088          903,002
                                                               ---------------- ----------------- ---------------- ----------------

  Income Before Income Tax                                             721,980          726,561         1,539,091        1,392,422
       Income tax expense                                              227,584          256,150           509,473          486,886
                                                               ---------------- ----------------- ---------------- ----------------

  Net Income                                                     $     494,396    $     470,411    $    1,029,618   $      905,536
                                                               ================ ================= ================ ================

  Basic Earnings per Share                                              $  .22           $  .19            $  .45         $    .36
                                                               ================ ================= ================ ================

  Diluted Earnings per Share                                            $  .22           $  .19            $  .45         $    .36
                                                               ================ ================= ================ ================
</TABLE>

See notes to consolidated condensed financial statements.


<PAGE>


                     UNION COMMUNITY BANCORP AND SUBSIDIARY
            Consolidated Condensed Statement of Shareholders' Equity
                     For the Six Months Ended June 30, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>

                                   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                          $1,029,618     1,029,618                                           1,029,618

    Other comprehensive
        loss, net of tax
      Unrealized losses on
        securities                                        (23,182)                 (23,182)                                 (23,182)
                                                      ------------
  Comprehensive income                                 $1,006,436
                                                      ============
  Cash dividends $.285 per
       share)                                                          (673,806)                                           (673,806)
  Purchase of common stock    (114,650)   (1,119,437)                  (120,594)                                         (1,240,031)
  Amortization of unearned
     compensation expense                                                                                      113,733      113,733
  ESOP shares earned                           4,004                                               51,659                    55,663
                              ---------- ------------              ------------ ------------- ----------- ------------- -----------
Balances, June 30, 2000       2,486,050  $24,273,989               $ 16,147,424  $ (7,797)    $(1,572,785) $(1,298,921) $37,541,910
                              ========== ============              ============ ============= =========== ============= ===========
</TABLE>



See notes to consolidated condensed financial statements.


<PAGE>



                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                 Consolidated Condensed Statement of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                           Six Months Ended
                                                                               June 30,
                                                                      ---------------- ---------------
                                                                           2000             1999
                                                                      ---------------- ---------------
  Operating Activities
<S>                                                                    <C>               <C>
       Net income                                                      $  1,029,618      $   905,536
       Adjustments to reconcile net income to net
            cash provided by operating activities
         Provision for loan losses                                           30,000           30,000
         Depreciation and amortization                                       17,568           17,177
         Investment securities accretion, net                               (14,090)          (4,206)
         Gain on sale of investment securities available for sale            (8,331)            (284)
         Equity in losses of limited partnerships                            55,000           52,500
         Amortization of unearned compensation expense                      113,733          113,733
         ESOP shares earned                                                  55,663           60,771
         Net change in:
           Interest receivable                                               82,123           67,255
           Interest payable                                                  45,754             (454)
           Other assets                                                      52,931           25,962
           Other liabilities                                                 13,653          (13,336)
                                                                      ---------------- ---------------
                Net cash provided by operating activities                 1,473,622        1,254,654
                                                                      ---------------- ---------------

  Investing Activities
       Investment securities
           Purchase of securities available for sale                                        (778,529)
           Purchase of securities held to maturity                         (300,000)        (815,000)
           Proceeds from sales of investment
              securities available for sale                                  87,997              ---
           Proceeds from maturities of securities held to
              maturity and paydowns of mortgage-
              backed securities                                             121,476          856,411
       Net changes in loans                                              (1,880,090)      (8,523,313)
       Purchase of FHLB of Indianapolis stock                                               (104,200)
       Purchases of property and equipment                                  (15,116)         (31,948)`
       Proceeds on sale of foreclosed assets                                                 100,356
       Other investing activities                                                             (2,726)
                                                                      ---------------- ---------------
                Net cash used by investing activities                    (1,985,733)      (9,298,949)
                                                                      ---------------- ---------------

  Financing Activities
       Net change in
         Interest-bearing demand and savings deposits                     1,076,981        4,587,743
         Certificates of deposit                                            652,776       (1,382,464)
       Proceeds from borrowings                                           9,000,000        4,000,000
       Repayment of borrowings                                           (9,306,533)        (296,900)
       Cash dividends                                                      (652,473)        (544,258)
       Repurchase of common stock                                        (1,240,031)      (1,792,610)
       Net change in advances by borrowers for taxes and insurance            6,696           (5,458)
                                                                      ---------------- ---------------
                Net cash provided (used) by financing activities           (462,584)       4,566,053
                                                                      ---------------- ---------------
  Net Change in Cash and Cash Equivalents                                  (974,695)      (3,478,242)

  Cash and Cash Equivalents, Beginning of Period                          3,117,025        6,191,080
                                                                      ---------------- ---------------

  Cash and Cash Equivalents, End of Period                             $  2,142,330     $  2,712,838
                                                                      ================ ===============

  Additional Cash Flows Information

       Interest paid                                                   $  2,129,692     $  1,783,212
       Income tax paid                                                      517,025          551,860
       Transfers from loans to foreclosed assets                             85,320           97,346

</TABLE>
See notes to consolidated condensed financial statements.


<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 (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 June 30, 2000, and
for the three and six months ended June 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
                                                 June 30, 2000                                June 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                        $494,396    2,260,870          $ .22         $470,411   2,488,607         $ .19
                                                                  ===========                                =============

Effect of dilutive RRP awards
and stock options
                                   -------------- ---------------                 ------------ -------------
Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                         $494,396    2,260,870          $ .22         $470,441   2,488,607         $ .19
                                   ============== =============== ===========     ============ ============= =============
</TABLE>

<TABLE>
<CAPTION>
                                               Six Months Ended                           Six Months Ended
                                                 June 30, 2000                               June 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                      $1,029,618    2,292,573          $ .45         $905,536   2,541,514         $ .36
                                                                  ===========                                =============

Effect of dilutive RRP awards
and stock options
                                   -------------- ---------------                 ------------ -------------

Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                       $1,029,618    2,292,573          $ .45         $905,536   2,541,514         $ .36
                                   ============== =============== ===========     ============ ============= =============
</TABLE>



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

General

The Company,  an Indiana  corporation,  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.

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 and consumer loans,  including
single-pay  loans,  loans secured by deposits,  installment loans and commercial
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 $773,000, or .6%, to $121.4 million at June
30, 2000,  from $120.7  million at December 31, 1999. The increase was primarily
due to loan  growth  of $1.9  million  offset  by a  decrease  in cash  and cash
equivalents of $975,000. Net loans increased by 1.8% to $108.1 million due to an
increase in customer  demand and an increased  focus by the Company in the areas
of commercial and consumer lending. Investment securities available for sale and
held to maturity also increased by $75,000,  or 1.0% during the six months ended
June 30, 2000.

Deposits  increased by $1.7 million to $70.7 million during the six months ended
June 30, 2000.  The increase in deposits was primarily used to fund loan growth.
Borrowed  funds at both June 30, 2000 and December  31, 1999 were  approximately
$12 million.

Shareholder's equity decreased  approximately  $738,000 to $37.5 million at June
30, 2000.  The decrease was primarily due to stock  repurchases of $1.2 million,
cash  dividends of $674,000 and  unrealized  losses on securities  available for
sale of $23,000.  These decreases were offset by net income for six months ended
June 30, 2000 of $1.0 million,  Employee  Stock  Ownership Plan shares earned of
$56,000 and unearned compensation amortization of $114,000.

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

Net income  increased  approximately  $24,000 from $470,000 for the three months
ended June 30, 1999 to $494,000 for the three  months  ended June 30, 2000.  The
return on average assets was 1.63% and 1.67% for the three months ended June 30,
2000 and 1999, respectively.

Interest  income  increased  $190,000,  or 9.1%,  from  $2,087,000 for the three
months  ended June 30, 1999 to  $2,277,000  for the  comparable  period in 2000.
Interest expense increased  approximately  $195,000, or 21.4%, from $912,000 for
the three months ended June 30, 1999 to $1,107,000  for the same period in 2000.
As a result,  net  interest  income for the three  months  ended  June 30,  2000
amounted to $1,170,000, a $5,000 decrease from the second quarter of 1999.

The provisions for loan losses made for the three months ended June 30, 2000 and
1999 were  $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.

Other  income  (losses)  was $4,000  for the three  months  ended June 30,  2000
compared to $11,000 for the same period in 1999. Other income (losses)  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 June 30, 2000 and 1999.  The decrease in other income
was due to nominal decreases in a variety of income categories.

Other expenses decreased approximately $8,000 from $444,000 for the three months
ended June 30, 1999 to $436,000 for the comparable  period in 2000. The decrease
in other  expenses was  primarily  due to nominal  increases  and decreases in a
variety of expense categories.

Income tax expense decreased $29,000,  or 11.2%, for the three months ended June
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.

Comparison of Operating Results for the Six Months Ended June 30, 2000 and 1999

Net income increased $124,000,  or 13.7%, from $906,000 for the six months ended
June 30, 1999 to $1,030,000 for the six months ended June 30, 2000. The increase
was  primarily  attributable  to an increase  in the volume of interest  earning
assets and a decrease in non-interest  expense. The return on average assets was
1.70% and 1.63 % for the six months ended June 30, 2000 and 1999, respectively.

Interest income increased $450,000, or 11.0%, from $4,108,000 for the six months
ended June 30, 1999 as compared to $4,558,000  for the six months ended June 30,
2000. Interest expense increased $392,000, or 22.0%, from $1,783,000 for the six
months  ended June 30,  1999 to  $2,175,000  for the same  period in 2000.  As a
result,  net interest  income for the six months ended June 30, 2000 amounted to
$2,383,000, a 2.5% increase from six months ended June 30, 1999.

The  provisions  for loan losses made for the six months ended June 30, 2000 and
1999 were  $30,000.  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.

Other  losses were  $15,000 for the six months  ended June 30, 2000  compared to
income and  losses  netting to zero for the same  period in 1999.  Other  income
(losses) 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 six  months  ended June 30,  2000 and 1999.  The
increase  in other  income was due to nominal  increases  in a variety of income
categories.

Other expenses decreased $74,000 from $903,000 for the six months ended June 30,
1999 to $829,000 for the  comparable  period in 2000. The increase was primarily
due to approximately $45,000 of non-recurring  expenses related to the Company's
data processing conversion during the first quarter of 2000.

Income tax expense decreased  approximately $23,000, or 4.6%, for the six months
ended June 30, 2000  compared to the same  period in 1999.  The  decrease in tax
expense was a result of the above mentioned revision to the Indiana Code.

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 no loans classified as special mention as of June 30, 2000 and
December  31,1999.  In addition,  Union Federal had $1.1 million and $650,000 of
loans  classified  as  substandard  at June 30,  2000  and  December  31,  1999,
respectively. At June 30, 2000, a letter of credit in the amount of $506,000 was
classified as  substandard.  The  substandard  letter of credit is to a borrower
with substandard  loans of $966,000 which are included in the above  substandard
loans total. At June 30, 2000 and December 31, 1999, no loans were classified as
doubtful or loss. At June 30, 2000, and December 31, 1999, respectively, $88,000
and $166,000 of the substandard loans were non-accrual  loans. The allowance for
loan  losses  was  $452,000  or .42% of loans at June 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 June
30, 2000,  Union Federal had liquid assets of $9.9 million and a liquidity ratio
of 10.3%.

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 June 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.

                             June 30, 2000
   -------------------------------------------------------------------
                           Net Portfolio Value   NPV as % of PV of Assets
   Changes
   In Rates   $ Amount     $ Change    % Change    NPV Ratio    Change
   --------   --------     ---------   --------    ---------    ------
   +300 bp     24,872       -8,852        -26%       22.57%     -545 bp
   +200 bp     27,789       -5,935        -18%       24.47%     -354 bp
   +100 bp     30,765       -2,959         -9%       26.30%     -172 bp
      0 bp     33,724                                28.01%
   -100 bp     36,386        2,663          8%       29.46%     +145 bp
   -200 bp     38,297        4,573         14%       30.43%     +242 bp
   -300 bp     40,081        6,358         19%       31.30%     +329 bp


                             June 30, 1999
   -------------------------------------------------------------------
                           Net Portfolio Value  NPV as % of PV of Assets
   Changes
   In Rates   $ Amount    $ Change    % Change    NPV Ratio     Change
   --------   --------    ---------   --------    ---------     ------
   +300 bp   $  24,379    $ -8,455      -26%        23.30%    -547 bp
   +200 bp      27,261      -5,573      -17        25.27      -350 bp
   +100 bp      30,147      -2,687       -8        27.13      -163 bp
      0 bp      32,834                             28.76
   -100 bp      35,074       2,240        7        30.04       126 bp
   -200 bp      36,965       4,131       13        31.06       230 bp
   -300 bp      38,920       6,086       19        32.08       331 bp



The analysis at June 30, 2000 indicates that there have been no material changes
in market interest rates or in the Company's interest rate sensitive instruments
which would cause a material  change in the market risk  exposures  which affect
the quantitative and qualitative risk disclosures as presented in Item 7A of the
Company's Annual Report on Form 10-K for the period ended December 31, 1999.

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

              On April 19, 2000, Union Community Bancorp held its Annual Meeting
              of  Shareholders.  Two directors were elected to terms expiring in
              2003 by the following votes:

              Samuel H. Hildebrand  For:  1,888,056    Withheld:    127,908
              Harry A. Siamas       For:  1,920,498    Withheld:     90,466

              The terms of office of the following  directors of Union Community
              Bancorp continued after the Annual Shareholder Meeting:

                           Name                               Term Expires In
                           ----                               ---------------
                           Philip L. Boots                         2001
                           John M. Horner                          2001
                           Marvin L. Burkett                       2002
                           Phillip E. Grush                        2002
                           Joseph E. Timmons                       2002


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 June 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:         August 11, 2000                      By: /s/ Joseph E. Timmons
              ---------------                      -------------------------
                                                    Joseph E. Timmons
                                                    President and
                                                    Chief Executive Officer

Date:         August 11, 2000                      By: /s/ Denise E. Swearingen
              ---------------                      ----------------------------
                                                    Denise E. Swearingen
                                                    Treasurer