SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                                   (Mark One)

[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,
           2002

                                       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 Rul 12b-2 of the Exchange Age). Yes [ ] No [X]

The  number of shares of the  Registrant's  common  stock,  without  par  value,
outstanding as of September 30, 2002 was 2,374,500.




<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                                          10

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




<PAGE>




                            FORWARD LOOKING STATEMENT

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



<PAGE>



PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements

<TABLE>
<CAPTION>
                     UNION COMMUNITY BANCORP AND SUBSIDIARY
                      Consolidated Condensed Balance Sheets

                                                                                       September 30,            December 31,
                                                                                           2002                     2001
                                                                                  ------------------------ -------------------------
                                                                                        (Unaudited)
  Assets
<S>                                                                                   <C>                     <C>
       Cash                                                                           $    1,182,267          $      375,349
       Interest-bearing demand deposits                                                   24,285,158              13,189,553
                                                                                  ------------------------ -------------------------
           Cash and cash equivalents                                                      25,467,425              13,564,902
       Interest-bearing deposits                                                             144,652
       Investment securities held to maturity                                              2,108,785               2,848,411
       Loans, net of allowance for loan losses of $988,554 and $519,554                  230,244,159             121,749,210
       Premises and equipment                                                              3,000,268                 398,857
       Federal Home Loan Bank stock                                                        3,423,600               1,530,300
       Investment in limited partnership                                                     836,609                 856,609
       Foreclosed assets and real estate held for development, net                         1,461,613                   8,500
       Goodwill                                                                            2,260,044
       Interest receivable                                                                 1,400,635                 903,040
       Other assets                                                                        1,605,152                 531,599
                                                                                  ------------------------ -------------------------

           Total assets                                                               $  271,952,942          $  142,391,428
                                                                                  ======================== =========================

  Liabilities
       Deposits
           Noninterest-bearing                                                        $    3,135,600          $    1,397,380
           Interest-bearing                                                              187,391,839              80,304,133
                                                                                  ------------------------ -------------------------
                Total deposits                                                           190,527,439              81,701,513
       Federal Home Loan Bank advances                                                    40,739,499              25,405,633
       Note payable                                                                          302,892                 477,142
       Interest payable                                                                      560,829                 186,119
       Other liabilities                                                                   1,420,513                 880,868
                                                                                  ------------------------ -------------------------
           Total liabilities                                                             233,551,172             108,651,275
                                                                                  ------------------------ -------------------------

  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 - 2,374,500 and 2,100,000 shares                        25,055,028              20,547,581
       Retained earnings                                                                  15,434,292              15,556,661
       Unearned employee stock ownership plan (ESOP) shares                               (1,347,745)            (1,420,777)
       Unearned recognition and retention plan (RRP) shares                                 (739,805)              (943,312)
                                                                                  ------------------------ -------------------------
           Total shareholders' equity                                                     38,401,770              33,740,153
                                                                                  ------------------------ -------------------------

           Total liabilities and shareholders' equity                                 $  271,952,942          $  142,391,428
                                                                                  ======================== =========================
</TABLE>

  See notes to consolidated condensed financial statements.


<PAGE>

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

                                                                  Three Months Ended                      Nine Months Ended
                                                                     September 30                            September 30
                                                         ------------------ ------------------- ----------------- ---------------
                                                                  2002               2001               2002              2001
                                                         ------------------ ------------------- ----------------- ---------------
  Interest and Dividend Income
<S>                                                          <C>                <C>                 <C>               <C>
       Loans                                                 $ 4,285,779        $ 2,289,124         $13,159,623       $ 6,682,248
       Investment securities                                      43,455             85,859             197,500           298,169
       Dividends on Federal Home Loan Bank stock                  53,933             21,576             157,931            67,380
       Deposits with financial institutions                       81,813             13,850             228,653           134,137
                                                         ------------------ ------------------- ----------------- ---------------
           Total interest and dividend income                  4,464,980          2,410,409          13,743,707         7,181,934
                                                         ------------------ ------------------- ----------------- ---------------

  Interest Expense
       Deposits                                                1,554,617          1,026,265           4,865,949         3,086,361
       Federal Home Loan Bank advances                           481,570            164,416           1,382,440           544,882
                                                         ------------------ ------------------- ----------------- ---------------
           Total interest expense                              2,036,187          1,190,681           6,248,389         3,631,243
                                                         ------------------ ------------------- ----------------- ---------------

  Net Interest Income                                          2,428,793          1,219,728           7,495,318         3,550,691
       Provision for loan losses                                  30,000                                 90,000            30,000
                                                         ------------------ ------------------- ----------------- ---------------
  Net Interest Income After Provision for Loan Losses          2,398,793          1,219,728           7,405,318         3,520,691
                                                         ------------------ ------------------- ----------------- ---------------

  Other Income (Losses)
       Equity in losses of limited partnerships                   (7,500)           (10,000)            (20,000)          (45,000)
       Net realized gains on sales of available for sale
         securities                                                                                              8,534
       Other income                                               72,698             41,976             203,835           126,160
                                                         ------------------ ------------------- ----------------- ---------------
           Total other income                                     65,198             31,976             192,369            81,160
                                                         ------------------ ------------------- ----------------- ---------------

  Other Expenses
       Salaries and employee benefits                            675,787            329,412           2,101,397           947,473
       Net occupancy expenses                                    147,772             16,524             247,965            46,402
       Equipment expenses                                         78,697              9,865             230,219            25,701
       Legal and professional fees                                31,188             22,107             108,611           102,922
       Data processing fees                                      127,955             24,569             677,201            73,099
       Other expenses                                            309,379             94,380             819,893           329,369
                                                         ------------------ ------------------- ----------------- ---------------
           Total other expenses                                1,370,778            496,857           4,185,286         1,524,966
                                                         ------------------ ------------------- ----------------- ---------------

  Income Before Income Tax                                     1,093,213            754,847           3,412,401         2,076,885
       Income tax expense                                        394,705            255,867           1,173,887           692,325
                                                         ------------------ ------------------- ----------------- ---------------

  Net Income                                                 $   698,508        $   498,980         $ 2,238,514       $ 1,384,560
                                                         ================== =================== ================= ===============

  Basic Earnings per Share                                   $       .31        $       .25         $      1.00       $       .68
  Diluted Earnings per Share                                         .31                .25                1.00               .68
  Dividends per Share                                                .14                .15                 .37               .45
</TABLE>

  See notes to consolidated condensed financial statements.



<PAGE>


                     UNION COMMUNITY BANCORP AND SUBSIDIARY
            Consolidated Condensed Statement of Shareholders' Equity
                  For the Nine Months Ended September 30, 2002
                                   (Unaudited)


<TABLE>
<CAPTION>


                                                  Common Stock
                                           ----------------------------                 Unearned
                                             Shares                       Retained        ESOP           Unearned
                                           Outstanding      Amount        Earnings       Shares        Compensation         Total
                                           ------------ --------------- ------------- -------------- ---------------- --------------

<S>               <C>                       <C>           <C>            <C>           <C>              <C>             <C>
Balances, January 1, 2002                   2,100,000     $20,547,581    $15,556,661   $(1,420,777)     $(943,312)      $33,740,153
Net income for the period                                                  2,238,514                                      2,238,514
  Cash dividends ($.37 per share)                                           (840,673)                                      (840,673)
  Shares issued in acquisition, net of        678,897       8,954,487                                                     8,954,487
        cost
  Shares cancelled in acquisition             (20,000)       (257,111)                                                     (257,111)
  Purchase of common  stock                  (384,397)     (4,223,457)    (1,520,210)                                    (5,743,667)
  Amortization of unearned compensation
        expense                                                                                           203,507           203,507
  ESOP shares earned                                           33,528                       73,032                          106,560
                                           ------------ --------------- ------------- -------------- ---------------- --------------
Balances, September 30, 2002                2,374,500     $25,055,028    $15,434,292   $(1,347,745)    $ (739,805)      $38,401,770
                                           ============ =============== ============= ============== ================ ==============

</TABLE>

See notes to consolidated condensed financial statements.




<PAGE>
<TABLE>
<CAPTION>

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

                                                                                                     Nine Months Ended
                                                                                                       September 30,
                                                                                              ---------------- ---------------
                                                                                                   2002             2001
                                                                                              ---------------- ---------------
  Operating Activities
<S>                                                                                            <C>              <C>
       Net income                                                                              $  2,238,514     $  1,384,560
       Adjustments to reconcile net income to net cash provided by operating activities
         Provision for loan losses                                                                   90,000           30,000
         Depreciation and amortization                                                              240,619           27,927
         Investment securities accretion, net                                                        (2,064)          (2,489)
         Gain on sale of investment securities available for sale                                    (8,534)
         Loss on sale of real estate owned                                                           28,834
         Equity in losses of limited partnerships                                                    20,000           45,000
         Amortization of purchase accounting adjustments                                           (680,772)
         Amortization of unearned compensation expense                                              203,507          177,805
         ESOP shares earned                                                                         106,560           99,604
         Net change in:
           Interest receivable                                                                      177,069           94,793
           Interest payable                                                                        (141,693)           2,125
         Other adjustments                                                                          910,169          (24,578)
                                                                                              ---------------- ---------------
                Net cash provided by operating activities                                         3,182,209        1,834,747
                                                                                              ---------------- ---------------

  Investing Activities
       Net change in interest-bearing deposits                                                       94,976
       Investment securities
           Proceeds from sales of investment securities available for sale
           75,613 Proceeds from maturities of securities held to maturity and
           paydowns of mortgage-backed securities                                                   741,690        3,085,486
       Net changes in loans                                                                       8,042,082      (10,388,961)
       Net cash received in acquisition                                                          15,866,825
       Additions to real estate owned                                                               (73,357)
       Proceeds from real estate sales                                                              775,726
       Purchases of property and equipment                                                         (289,708)         (62,977)
       Purchases of Federal Home Loan Bank of Indianapolis stock                                                    (137,000)
                                                                                              ---------------- ---------------
                Net cash provided by (used in) investing activities                              25,233,847       (7,503,452)
                                                                                              ---------------- ---------------

  Financing Activities
       Net change in
         Interest-bearing demand and savings deposits                                            16,336,976        4,997,774
         Certificates of deposit                                                                (24,209,451)       1,664,984
       Proceeds from borrowings                                                                  20,000,000        9,000,000
       Repayment of borrowings                                                                  (22,311,993)      (8,306,660)
       Cash dividends                                                                              (800,426)        (962,149)
       Repurchase of common stock                                                                (5,743,667)      (3,456,025)
       Net change in advances by borrowers for taxes and insurance                                  215,028          164,049
                                                                                              ---------------- ---------------
                Net cash provided by (used in) financing activities                             (16,513,533)       3,101,973
                                                                                              ---------------- ---------------

  Net Change in Cash and Cash Equivalents                                                        11,902,523       (2,566,732)

  Cash and Cash Equivalents, Beginning of Period                                                 13,564,902        4,754,686
                                                                                              ---------------- ---------------

  Cash and Cash Equivalents, End of Period                                                     $ 25,467,425     $  2,187,954
                                                                                              ================ ===============

  Additional Cash Flows Information
       Interest paid                                                                           $  6,390,082     $  3,629,118
       Income tax paid                                                                              790,241          786,000

</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, 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, 2001 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 September 30, 2002, and for the
three and nine months ended  September 30, 2002 and 2001,  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  nine-month  period  ended
September 30, 2002, 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, 2001 has been  derived from the audited  consolidated
balance sheet of the Company as of that date.

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.

<TABLE>
<CAPTION>

                                              Three Months Ended                            Three Months Ended
                                              September 30, 2002                            September 30, 2001
                                              ------------------                            ------------------
                                                   Weighted                                      Weighted
                                                    Average        Per Share                     Average      Per Share
                                      Income        Shares           Amount         Income        Shares        Amount
                                      ------        ------           ------         ------        ------        ------
Basic earnings per share
   Income available to common
<S>                                 <C>            <C>               <C>           <C>           <C>             <C>
    shareholders                    $ 698,508      2,266,123         $ .31         $498,980      1,991,166       $  .25
                                                                  ===========                                ============

Effect of dilutive RRP awards
and stock options                                        427
                                   -------------------------                    ---------------------------

Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                     $ 698,508      2,266,550         $ .31         $498,980      1,991,166       $  .25
                                   ========================================     ========================================

</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                                               Nine Months Ended                             Nine Months Ended
                                              September 30, 2002                             September 30, 2001
                                              ------------------                             ------------------
                                                   Weighted                                       Weighted
                                                    Average        Per Share                      Average      Per Share
                                      Income        Shares           Amount          Income        Shares        Amount
                                      ------        ------           ------          ------        ------        ------
Basic earnings per share
   Income available to common
<S>                               <C>              <C>              <C>          <C>             <C>              <C>
    shareholders                  $ 2,238,514      2,237,337        $ 1.00       $1,384,560      2,033,036        $ .68
                                                                  ===========                                 ===========

Effect of dilutive RRP awards
and stock options                                      1,442
                                 ----------------------------                   --------------------------

Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                    $2,238,514      2,238,779        $ 1.00      $ 1,384,560      2,033,036        $ .68
                                 ==========================================     =========================================

</TABLE>



Note 3: Other Comprehensive Income
<TABLE>
<CAPTION>

                                                                      Before-Tax           Tax          Net-of-Tax
       For the Nine Months Ended September 30, 2002                     Amount           Expense          Amount
                                                                        ------           -------          ------
         Unrealized gains on securities:
<S>                                                                      <C>            <C>                <C>
            Unrealized holding gains arising during the year             $8,534         $ (3,380)          $5,154
            Less: reclassification adjustments for gains realized
              in net income                                               8,534           (3,380)           5,154
                                                                    ---------------- ---------------- ----------------
         Other comprehensive income                                      $    0         $      0           $    0
                                                                    ================ ================ ================
</TABLE>


There  were no items of  comprehensive  income  during  the three  months  ended
September 30, 2002.  In addition,  there were no items of  comprehensive  income
during the three and nine months ended September 30, 2001.


Note 4: Business Combination

On January 2, 2002,  the Company  acquired  Montgomery  Financial  Corporation a
federally  chartered  thrift  ("Montgomery"),  which is the  holding  company of
Montgomery Savings, a Federal Association ("Montgomery Savings"). Montgomery was
merged with and into the Company and immediately  thereafter  Montgomery Savings
was merged into Union  Federal.  MSA  Service  Corporation  ("MSA"),  an Indiana
corporation and wholly-owned  subsidiary of Montgomery Savings, will continue as
a subsidiary of Union Federal.

On January 2, 2002,  the company  issued 678,897 shares of its common stock at a
cost of approximately  $8,954,000,  net of registration  costs of $113,000,  and
paid cash of approximately  $9,059,000 to Montgomery's  shareholders.  As of the
merger date, Montgomery owned 20,000 shares of the Company's common stock with a
net book value of approximately  $257,000.  The shares were cancelled as part of
this  transaction.  The Company paid an  additional  $452,000 in merger  related
expenses.

The acquisition  was accounted for under the purchase method of accounting,  and
accordingly,  the net assets were recorded at their estimated fair values at the
date of  acquisition.  Fair value  adjustments  on the  assets  and  liabilities
purchased are being  amortized  over the  estimated  useful lives of the related
assets and liabilities. The excess of the purchase price over the estimated fair
value of the  underlying  net assets of $2,260,000 was allocated to goodwill and
is not deductible for tax purposes.  Additionally,  core deposit  intangibles of
$590,000 were recognized and are being amortized over seven years using the 125%
declining  balance  method.  Montgomery's  results of  operations  and financial
position  were  included  in the  Company's  consolidated  financial  statements
beginning  January 3, 2002.  The following  table  summarizes the estimated fair
values  of  the  assets  acquired  and  liabilities   assumed  at  the  date  of
acquisition.

<PAGE>
                                                             (In thousands)
   Cash and cash equivalents                                     $ 25,490
   Loans, net of allowance for loan losses                        117,029
   Premises and equipment                                           2,530
   Goodwill                                                         2,260
   Core deposit intangible                                            590
   Other assets                                                     6,564
                                                             --------------
            Total assets acquired                                 154,463
                                                             --------------

   Deposits                                                       117,390
   Federal Home Loan Bank advances                                 17,607
   Other liabilities                                                1,145
                                                             --------------
            Total liabilities acquired                            136,142
                                                             --------------

            Net assets acquired                                  $ 18,321
                                                             ==============

The  following  pro forma  information,  including  the  effect of the  purchase
accounting  adjustments,  depicts the results of operations as though the merger
had taken place at the beginning of each period.

                           Three Months Ended           Nine Months Ended
                              September 30,               September 30,
                           2002            2001         2002           2001
                           ----            ----         ----           ----
                              (In thousands, except per share amounts)
    Net Interest Income    $ 2,429       $ 2,411       $ 7,495       $ 7,140
    Net Income                 699           677         1,279         1,989
    Net Income Per Share
             Basic             .31           .26           .57           .74
             Diluted           .31           .26           .57           .74

The pro forma  results of  operations  do not  purport to be  indicative  of the
results which would  actually have been obtained had the merger  occurred on the
date indicated or which may be obtain in the future.

The Financial Accounting Standards Board recently adopted Statement of Financial
Accounting  Standards ("SFAS") 142, Goodwill and Other Intangible  Assets.  This
Statement  establishes  new financial  accounting  and  reporting  standards for
acquired  goodwill and other  intangible  assets.  The  Statement  addresses how
intangible assets that are acquired individually or with a group of other assets
(but not those  acquired in a business  combination)  should be accounted for in
financial statements upon their acquisition.  It also addresses how goodwill and
other intangible  assets  (including  those acquired in a business  combination)
should be  accounted  for  after  they have  been  initially  recognized  in the
financial  statements.  SFAS 142 was effective for fiscal years  beginning after
December 15,  2001.  In adopting  SFAS 142, the goodwill  recorded on January 2,
2002  from the  acquisition  of  Montgomery  will not be  amortized  but will be
subject to testing for impairment.

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 in a transaction  that closed on
January 2, 2002.  In the  transaction,  Montgomery  was merged with and into the
Company,  and  Montgomery  Savings  was  merged  with  and into  Union  Federal.
Following the merger, MSA became a subsidiary of Union Federal.
<PAGE>

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 three additional branch
offices in  Crawfordsville  and branch  offices in Covington,  Williamsport  and
Lafayette,  Indiana.  Five of the above  mentioned  branch offices were added in
connection  with  the  acquisition  of  Montgomery.  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,   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;  (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,  operated as a multi-family,  low- and moderate-income housing project,
is completed and is performing as planned.  Because UFS engages  exclusively  in
activities  that are  permissible  for a national bank, OTS  regulations  permit
Union Federal to include its investment in UFS in its  calculation of regulatory
capital. At present,  MSA owns a tract of land, 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 22 through 24 of
the Annual Report to  Shareholders  for the year ended December 31, 2001,  which
was filed on Form 10-K with the  Commission on March 29, 2002.  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 by management includes consideration of past loss experience, changes
in the composition of the loan portfolio,  the current economic  condition,  the
amount  of  loans  outstanding,   certain  identified  problem  loans,  and  the
probability of collecting all amounts due under its loan portfolio.

The  determination  of the adequacy of the allowance for loan losses is based on
estimates  that are  particularly  susceptible  to  significant  changes  in the
economic  environment and market conditions.  A worsening or protracted economic
decline would  increase the  likelihood  of additional  losses due to credit and
market risk and could create the need for additional loan loss reserves.
<PAGE>

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.  Fair value
estimates are  particularly  susceptible to significant  changes in the economic
environment,   market  conditions,  and  real  estate  market.  A  worsening  or
protracted  economic  decline  would  increase  the  likelihood  of a decline in
property  values and could create the need to write down the properties  through
current operations.

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.

Financial Condition

Total assets  increased  $129.6  million to $272.0 million at September 30, 2002
primarily due to the  acquisition  of  Montgomery.  Net loans  increased  $108.5
million to $230.2  million at September  30, 2002.  During the nine months ended
September  30, 2002,  net loans of $117.0  million were added as a result of the
acquisition  while  loan  payoffs  exceeded  new loan  production,  net of other
adjustments,  by $8.5 million. Cash and cash equivalents increased $11.9 million
from December 31, 2001 to September 30, 2002.  The increase was primarily due to
net cash received in the acquisition  offset by cash used for stock  repurchases
and the outflow of deposits.  Premises and equipment  increased from $399,000 at
December  31,  2001 to $3.0  million  at  September  30,  2002  also  due to the
acquisition.   The   acquisition  of  Montgomery   increased   Union   Federal's
full-service  offices  from two to  seven.  Due to the  transaction,  foreclosed
assets and real estate held for  development  increased  from $9,000 at December
31,  2001 to $1.5  million  at  September  30,  2002.  In  connection  with  the
acquisition,  these properties were marked to market and are currently for sale.
Also in  connection  with the  acquisition,  Goodwill of $2.3 million and a core
deposit intangible of $590,000 was recorded.  Goodwill will be reviewed annually
for  impairment  and the core deposit  intangible  will be amortized  over seven
years.

Deposits  increased by $108.8  million to $190.5  million during the nine months
ended  September 30, 2002, of which $117.4 million were added as a result of the
Montgomery  acquisition.  Excluding the deposits  acquired,  deposits  decreased
approximately $8.6 million with certificates of deposit decreasing approximately
$24.9 million and other deposits increasing approximately $16.3 million.

Borrowed  funds  increased by $15.3  million from December 31, 2001 to September
30, 2002. The acquisition of Montgomery added $17.6 million of borrowed funds.

Shareholders'  equity  increased  $4.7 million to $38.4 million at September 30,
2002.  The increase was  primarily due to shares  issued in the  acquisition  of
Montgomery,  net of costs,  of $9.0  million;  net income for nine months  ended
September 30, 2002 of $2.2 million;  Employee Stock Ownership Plan shares earned
of $107,000; and unearned compensation amortization of $204,000. These increases
were offset by stock  repurchases  of $5.7  million,  cancellation  of shares of
Company stock owned by Montgomery of $257,000 and cash dividends of $841,000.

Comparison  of Operating  Results for the Three Months Ended  September 30, 2002
and 2001

Net income increased $200,000 from $499,000 for the three months ended September
30, 2001 to $699,000 for the three months ended September 30, 2002. The increase
in net income was primarily  attributable  to the  acquisition  of Montgomery on
January 2, 2002 with an increase of $1.2 million in net interest  income  offset
in part by an  increase  of  $874,000  in total  other  expenses.  The return on
average assets for the three months ended  September 30, 2002 was 1.03% compared
to 1.55% for the comparable period in 2001. The return on average equity for the
three  months  ended  September  30,  2002 was 7.19%  compared  to 5.70% for the
comparable period in 2001.

For the three months ended September 30, 2002,  interest income was $4.5 million
as compared to $2.4  million for the three  months  ended  September  30,  2001.
Interest   income   increased   primarily   due  to  an   increase   in  average
interest-earning  assets  from $126.6  million for the third  quarter of 2001 to
$260.2  million  for the  comparable  period in 2002 offset by a decrease in the
yield on  interest-earning  assets  from 7.62%  during the 2001  period to 6.86%
during the 2002 period. For the three months ended September 30, 2002,  interest
expense was $2.0  million as compared to $1.2 million for the three months ended
September 30, 2001.  Interest expense increased  primarily due to an increase in
average interest-bearing liabilities from $92.5 million for the third quarter of
2001 to $226.7 million for the comparable period in 2002 offset by a decrease in
the cost of  interest-bearing  liabilities  from 5.15% during the 2001 period to
3.59% during the 2002  period.  The decrease in the cost of funds was due to the
rate environment  during the 2002 period as compared to 2001 and amortization of
purchase  accounting  adjustments  totaling  $276,000 which  decreased  interest
expense during the three months ended September 30, 2002.
<PAGE>

The provision for loan losses for the three months ended  September 30, 2002 was
$30,000 as compared to no provision for the comparable  period in 2001. A review
is performed  quarterly to determine the adequacy of the current  balance in the
allowance for loan losses.

Total  other  expenses  increased  from  $497,000  for the  three  months  ended
September 30, 2001 to $1,371,000  for the  comparable  period in 2002.  Expenses
increased  primarily due to the growth of the Company through the acquisition of
Montgomery.

Comparison of Operating Results for the Nine Months Ended September 30, 2002 and
2001

For the nine months ended September 30, 2002, net income was $2.2 million, which
represents  a 61.7%  increase in  earnings as compared to the nine months  ended
September  30,  2001.  As mentioned  previously,  the increase in net income was
primarily attributable to the acquisition of Montgomery with an increase of $3.9
million in net interest  income offset in part by an increase of $2.7 million in
total other  expenses.  The return on average  assets for the nine months  ended
September  30,  2002 was 1.10%  compared to 1.45% for the  comparable  period in
2001. The return on average equity for the nine months ended  September 30, 2002
was 7.60% compared to 5.19% for the comparable period in 2001.

For the nine months ended September 30, 2002,  interest income was $13.7 million
as  compared  to $7.2  million for the nine months  ended  September  30,  2001.
Interest   income   increased   primarily   due  to  an   increase   in  average
interest-earning  asset from $124.8 million for the nine months ended  September
30,  2001 to  $261.0  million  for the  comparable  period  in 2002  offset by a
decrease  in the yield on  interest-earning  assets  from 7.68%  during the 2001
period to 7.02% during the 2002 period.  For the nine months ended September 30,
2002, interest expense was $6.2 million as compared to $3.6 million for the nine
months ended September 30, 2001.  Interest expense increased primarily due to an
increase in average interest-bearing liabilities from $89.7 million for the nine
months ended  September 30, 2001 to $226.2 million for the comparable  period in
2002 offset by a decrease in the cost of interest-bearing liabilities from 5.40%
during the 2001 period to 3.68% during the 2002 period. The decrease in the cost
of funds was due to the rate  environment  during the 2002 period as compared to
2001 and amortization of purchase accounting adjustments totaling $827,000 which
decreased interest expense during the nine months ended September 30, 2002.

The provision for loan losses for the three months ended  September 30, 2002 was
$30,000 as compared to no provision for the comparable  period in 2001. A review
is performed  quarterly to determine the adequacy of the current  balance in the
allowance for loan losses.

Total  other  expenses  increased  from  $497,000  for the  three  months  ended
September 30, 2001 to $1,371,000  for the  comparable  period in 2002.  Expenses
increased  primarily due to the growth of the Company through the acquisition of
Montgomery.


Comparison of Operating Results for the Nine Months Ended September 30, 2002 and
2001

For the nine months ended September 30, 2002, net income was $2.2 million, which
represents  a 61.7%  increase in  earnings as compared to the nine months  ended
September  30,  2001.  As mentioned  previously,  the increase in net income was
primarily attributable to the acquisition of Montgomery with an increase of $3.9
million in net interest  income offset in part by an increase of $2.7 million in
total other  expenses.  The return on average  assets for the nine months  ended
September  30,  2002 was 1.10%  compared to 1.45% for the  comparable  period in
2001. The return on average equity for the nine months ended  September 30, 2002
was 7.60% compared to 5.19% for the comparable period in 2001.

For the nine months ended September 30, 2002,  interest income was $13.7 million
as  compared  to $7.2  million for the nine months  ended  September  30,  2001.
Interest   income   increased   primarily   due  to  an   increase   in  average
interest-earning  asset from $124.8 million for the nine months ended  September
30,  2001 to  $261.0  million  for the  comparable  period  in 2002  offset by a
decrease  in the yield on  interest-earning  assets  from 7.68%  during the 2001
period to 7.02% during the 2002 period.  For the nine months ended September 30,
2002, interest expense was $6.2 million as compared to $3.6 million for the nine
months ended September 30, 2001.  Interest expense increased primarily due to an
increase in average interest-bearing liabilities from $89.7 million for the nine
months ended  September 30, 2001 to $226.2 million for the comparable  period in
2002 offset by a decrease in the cost of interest-bearing liabilities from 5.40%
during the 2001 period to 3.68% during the 2002 period. The decrease in the cost
of funds was due to the rate  environment  during the 2002 period as compared to
2001 and amortization of purchase accounting adjustments totaling $827,000 which
decreased interest expense during the nine months ended September 30, 2002.
<PAGE>

The  provisions  for loan losses made for the nine months  September 30 2002 was
$90,000 as compared to $30,000 for the  comparable  period in 2001. As mentioned
previously,  a review is performed  quarterly  to determine  the adequacy of the
current  balance in the  allowance for loan losses.  The 2002  provision and the
allowance for loan losses were considered appropriate,  based on size, condition
and components of the loan  portfolio.  While  management  estimates loan losses
using the best  available  information,  no  assurance  can be given that future
addition to the allowance will not be necessary based on changes in economic and
real estate market conditions,  further  information  obtained regarding problem
loans, identification of additional problem loans and other factors, both within
and outside of management's control.

Total other  expenses  increased  from $1.5  million  for the nine months  ended
September 30, 2001 to $4.2 million for the comparable  period in 2002.  Expenses
increased in part due to the growth of the Company  through the  acquisition  of
Montgomery and due to a one-time  $411,000  termination  fee for data processing
services charged to expense during the first quarter of 2002.

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  in the
loans  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 $725,000 of loans classified as special mention
as of September 30, 2002 and no loans  classified as special mention at December
31, 2001. In addition,  Union Federal had $3.7 million and $1.6 million of loans
classified  as  substandard  at  September  30,  2002  and  December  31,  2001,
respectively.  At September 30, 2002,  $1.3 million of loans were  classified as
doubtful and no loans were  classified  as loss.  At December 31, 2001, no loans
were  classified  as doubtful or loss.  The  increase  in  classified  loans was
primarily  due  to  the  addition  of  substandard  loans  from  the  Montgomery
acquisition  and  $1.3  million  of  additional  substandard  loans  to a single
borrower  secured by 12  properties  with  favorable  loan to value  ratios.  At
September  30,  2002,  and December  31,  2001,  respectively,  $3.3 million and
$682,000 of the classified loans were non-accrual  loans. The allowance for loan
losses was  $989,000  or .43% of loans at  September  30,  2002 as  compared  to
$520,000 or .43% of loans at December 31, 2001.

Liquidity and Capital Resources

The Financial  Regulatory Relief and Economic  Efficiency Act of 2000, which was
signed into law on December 27, 2000, repealed the former statutory  requirement
that all savings associations maintain an average daily balance of liquid assets
in a minimum  amount of not less than 4% or more than 10% of their  withdrawable
accounts plus  short-term  borrowings.  The OTS adopted an interim final rule in
March 2001 that implemented this revised statutory requirement, although savings
associations remain subject to the OTS regulation that requires them to maintain
sufficient liquidity to ensure their safe and sound operation.

Pursuant to OTS capital  regulations  in effect at September  30, 2002,  savings
associations were required to maintain a 1.5% tangible capital requirement, a 4%
leverage ratio (or core capital) requirement,  and a total risk-based capital to
risk-weighted assets ratio of 8%. At September 30, 2002, Union Federal's capital
levels exceeded all applicable  regulatory capital  requirements in effect as of
that date.

Other

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

<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Presented  below,  as of June 30, 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>

                                             June 30, 2002
                                             -------------
                                Net Portfolio Value                       NPV as % of PV of Assets
   Changes
   In Rates        $ Amount         $ Change          % Change            NPV Ratio          Change
   --------        --------         ---------         --------            ---------          ------
<S> <C>             <C>               <C>                <C>                <C>               <C>
   +300 bp          $31,935          -15,171            -32%                12.10%           -450 bp
   +200 bp           37,198           -9,908            -21                 13.73            -287 bp
   +100 bp           42,152           -4,954            -11                 15.18            -142 bp
      0 bp           47,106                                                 16.60
   -100 bp           47,359              253              1                 16.47            -13 bp
   -200 bp                0                0              0                     0              0
   -300 bp                0                0              0                     0              0

</TABLE>

<TABLE>
<CAPTION>



                                             June 30, 2001
                                             -------------
                                Net Portfolio Value                       NPV as % of PV of Assets
   Changes
   In Rates        $ Amount         $ Change          % Change            NPV Ratio          Change
   --------        --------         ---------         --------            ---------          ------
<S> <C>             <C>               <C>                 <C>               <C>               <C>
   +300 bp          $27,880          -8,003              -22%               23.09%           -417 bp
   +200 bp           30,519          -5,364              -15                24.56            -271 bp
   +100 bp           33,289          -2,594               -7                26.00            -126 bp
      0 bp           35,883                                                 27.26
   -100 bp           37,739           1,856                5                28.05             +79 bp
   -200 bp           38,881           2,998                8                28.41            +115 bp
   -300 bp           39,972           4,089               11                28.73            +147 bp
</TABLE>

Management  believes  that at September  30, 2002 and June 30, 2002,  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, 2001.


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

              None.

Item 2.       Changes in Securities and Use of Proceeds

              None.

Item 3.       Defaults Upon Senior Securities.

              None.

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

              None.

Item 5.       Other Information.

              None.

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

              No reports on Form 8-K were filed during the quarter ended
September 30, 2002.


<PAGE>
                                   SIGNATURES

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

                             UNION COMMUNITY BANCORP

Date:    November 13, 2002               By: /s/ Alan L. Grimble
                                            ------------------------------------
                                            Alan L. Grimble
                                            Chief Executive Officer


Date:    November 13, 2002               By: /s/ J. Lee Walden
                                            ------------------------------------
                                            J. Lee Walden
                                            Chief Financial Officer



                                  CERTIFICATION


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: November 13, 2002
                                           /s/ Alan L. Grimble
                                           -------------------------------------
                                           Alan L. Grimble
                                           Chief Executive Officer


                                  CERTIFICATION

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: November 13, 2002
                                             /s/ J. Lee Walden
                                             -----------------------------------
                                             J. Lee Walden
                                             Chief Financial Officer



<PAGE>




                                  CERTIFICATION

By signing below, each of the undersigned  officers hereby certifies pursuant to
18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that, to his or her knowledge,  (i) this report fully complies with the
requirements  of Section 13(a) or 15(d) of the  Securities  Exchange Act of 1934
and (ii) the  information  contained  in this  report  fairly  presents,  in all
material  respects,  the financial  condition and results of operations of Union
Community Bancorp.

Signed this 13th day of November 2002.



/s/ J. Lee Walden                       /s/ Alan L. Grimble
-----------------------------------     ----------------------------------------
J. Lee Walden                           Alan L. Grimble
Chief Financial Officer                 Chief Executive Officer