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, 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 [ ]

The  number of shares of the  Registrant's  common  stock,  without  par  value,
outstanding as of June 30, 2002 was 2,433,197.




<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

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                  14
Item 2.  Changes in Securities and Use of Proceeds                          14
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

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

                                                                                         June 30,               December 31,
                                                                                           2002                     2001
                                                                                  ------------------------ -------------------------
                                                                                        (Unaudited)
  Assets
<S>                                                                               <C>                      <C>
       Cash                                                                            $     792,008           $     375,349
       Interest-bearing demand deposits                                                   18,134,671              13,189,553
                                                                                  ------------------------ -------------------------
           Cash and cash equivalents                                                      18,926,679              13,564,902
       Interest-bearing deposits                                                             144,652
       Investment securities held to maturity                                              2,496,084               2,848,411
       Loans, net of allowance for loan losses of $958,554 and $519,554                  234,159,883             121,749,210
       Premises and equipment                                                              2,937,274                 398,857
       Federal Home Loan Bank stock                                                        3,423,600               1,530,300
       Investment in limited partnership                                                     844,109                 856,609
       Foreclosed assets and real estate held for development, net                         1,717,263                   8,500
       Goodwill                                                                            2,260,044
       Interest receivable                                                                 1,423,278                 903,040
       Other assets                                                                        1,724,388                 531,599
                                                                                  ------------------------ -------------------------

           Total assets                                                                $ 270,057,254           $ 142,391,428
                                                                                  ======================== =========================

  Liabilities
       Deposits
           Noninterest-bearing                                                         $   2,886,301           $   1,397,380
           Interest-bearing                                                              183,510,691              80,304,133
                                                                                  ------------------------ -------------------------
                Total deposits                                                           186,396,992              81,701,513
       Federal Home Loan Bank advances                                                    42,784,781              25,405,633
       Note payable                                                                          302,892                 477,142
       Interest payable                                                                      507,734                 186,119
       Other liabilities                                                                   1,274,405                 880,868
                                                                                  ------------------------ -------------------------
           Total liabilities                                                             231,266,804             108,651,275
                                                                                  ------------------------ -------------------------
</TABLE>

  Commitments and Contingent Liabilities


<PAGE>

<TABLE>
<CAPTION>



  Shareholders' Equity
       Preferred stock, no par value
           Authorized and unissued - 2,000,000 shares
       Common stock, no-par value
           Authorized - 5,000,000 shares
<S>                                 <C>           <C>                                     <C>                     <C>
           Issued and outstanding - 2,433,197 and 2,100,000 shares                        25,582,299              20,547,581
       Retained earnings                                                                  15,377,919              15,556,661
       Unearned employee stock ownership plan (ESOP) shares                               (1,372,089)            (1,420,777)
       Unearned recognition and retention plan (RRP) shares                                 (797,679)              (943,312)
                                                                                  ------------------------ -------------------------
           Total shareholders' equity                                                     38,790,450              33,740,153
                                                                                  ------------------------ -------------------------

           Total liabilities and shareholders' equity                                $   270,057,254          $  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                    Six Months Ended
                                                                           June 30                              June 30
                                                            ------------------ ------------------- ----------------- --------------
                                                                   2002               2001               2002             2001
                                                            ------------------ ------------------- ----------------- --------------
  Interest and Dividend Income
<S>                                                            <C>                <C>                 <C>              <C>
       Loans                                                   $  4,448,635       $  2,221,355        $  8,873,844     $  4,393,124
       Investment securities                                        105,155             93,114             154,045          212,310
       Dividends on Federal Home Loan Bank stock                     53,347             22,814             103,998           45,804
       Deposits with financial institutions                          78,316             42,410             146,840          120,287
                                                            ------------------ ------------------- ----------------- --------------
           Total interest and dividend income                     4,685,453          2,379,693            9,278,727       4,771,525
                                                            ------------------ ------------------- ----------------- --------------

  Interest Expense
       Deposits                                                   1,615,994          1,028,747           3,311,332        2,060,096
       Federal Home Loan Bank advances                              488,808            161,444             900,870          380,466
                                                            ------------------ ------------------- ----------------- --------------
           Total interest expense                                 2,104,802          1,190,191           4,212,202        2,440,562
                                                            ------------------ ------------------- ----------------- --------------

  Net Interest Income                                             2,580,651          1,189,502           5,066,525        2,330,963
       Provision for loan losses                                     20,000             15,000              60,000           30,000
                                                            ------------------ ------------------- ----------------- --------------
  Net Interest Income After Provision for Loan Losses             2,560,651          1,174,502           5,006,525        2,300,963
                                                            ------------------ ------------------- ----------------- --------------

  Other Income (Losses)
       Equity in losses of limited partnerships                      (7,500)           (10,000)            (12,500)         (35,000)
       Net realized gains on sales of available for sale
  securities                                                          2,574                                  8,534
       Other income                                                  28,239             40,036             131,137           84,184
                                                            ------------------ ------------------- ----------------- --------------
           Total other income                                        23,313             30,036             127,171           49,184
                                                            ------------------ ------------------- ----------------- --------------

  Other Expenses
       Salaries and employee benefits                               714,776            307,531           1,425,610          618,061
       Net occupancy expenses                                        42,728             18,340             100,193           29,878
       Equipment expenses                                            80,035              9,364             151,522           15,836
       Legal and professional fees                                   36,905             49,440              77,423           80,815
       Data processing fees                                          69,205             30,241             549,246           48,530
       Other expenses                                               270,530            116,458             510,514          234,989
                                                            ------------------ ------------------- ----------------- --------------
           Total other expenses                                   1,214,179            531,374           2,814,508        1,028,109
                                                            ------------------ ------------------- ----------------- --------------

  Income Before Income Tax                                        1,369,785            673,164           2,319,188        1,322,038
       Income tax expense                                           476,702            223,430             779,182          436,458
                                                            ------------------ ------------------- ----------------- --------------

  Net Income                                                  $     893,083       $    449,734        $  1,540,006    $     885,580
                                                            ================== =================== ================= ==============

  Basic Earnings per Share                                           $  .39             $  .22              $  .69           $  .43
  Diluted Earnings per Share                                            .39             $  .22                 .69           $  .43
  Dividends per Share                                                   .12             $  .15                 .23           $  .30
</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, 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)     $33,740,153
Net income for the period                                                   1,540,006                                    1,540,006
  Cash dividends ($.23 per share)                                            (528,134)                                    (528,134)
  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                  (325,700)     (3,684,956)     (1,190,614)                                  (4,875,570)
  Amortization of unearned compensation
     expense                                                                                              145,633          145,633
  ESOP shares earned                                           22,298                        48,688                         70,986
                                           ------------ --------------- ------------- -------------- ---------------- --------------
Balances, June 30, 2002                     2,433,197     $25,582,299     $15,377,919   $(1,372,089)    $(797,679)     $38,790,450
                                           ============ =============== ============= ============== ================ ==============

</TABLE>

See notes to consolidated condensed financial statements.




<PAGE>



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

<TABLE>
<CAPTION>
                                                                                                   Six Months Ended
                                                                                                       June 30,
                                                                                              ---------------- ---------------
                                                                                                    2002             2001
                                                                                              ---------------- ---------------
  Operating Activities
<S>                                                                                            <C>              <C>
       Net income                                                                              $  1,540,006     $    885,580
       Adjustments to reconcile net income to net cash provided by operating activities
         Provision for loan losses                                                                   60,000           30,000
         Depreciation and amortization                                                              158,550           17,624
         Investment securities accretion, net                                                        (1,649)          (1,664)
         Gain on sale of investment securities available for sale                                    (8,534)
         Loss on sale of real estate owned                                                           22,399
         Equity in losses of limited partnerships                                                    12,500           35,000
         Amortization of purchase accounting adjustments                                           (453,847)
         Amortization of unearned compensation expense                                              145,633          113,733
         ESOP shares earned                                                                          70,986           66,297
         Net change in:
           Interest receivable                                                                      154,426          173,240
           Interest payable                                                                        (194,788)         (40,604)
         Other adjustments                                                                          934,322          (23,409)
                                                                                              ---------------- ---------------
                Net cash provided by operating activities                                         2,440,004        1,255,797
                                                                                              ---------------- ---------------

  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                                                   353,976        2,498,401
       Net changes in loans                                                                       4,328,598       (6,346,977)
       Net cash received in acquisition                                                          15,866,825
       Additions to real estate owned                                                               (42,923)
       Proceeds from real estate sales                                                              356,769
       Purchases of property and equipment                                                         (155,070)         (62,977)
       Purchases of Federal Home Loan Bank of Indianapolis stock                                                    (137,000)
                                                                                              ---------------- ---------------
                Net cash provided by (used in) investing activities                              20,878,764       (4,048,553)
                                                                                              ---------------- ---------------

  Financing Activities
       Net change in
         Interest-bearing demand and savings deposits                                            12,030,961        3,232,372
         Certificates of deposit                                                                (24,264,383)       1,667,922
       Proceeds from borrowings                                                                  20,000,000        4,000,000
       Repayment of borrowings                                                                  (20,311,993)      (6,306,660)
       Cash dividends                                                                              (545,383)        (644,467)
       Repurchase of common stock                                                                (4,875,570)        (976,775)
       Net change in advances by borrowers for taxes and insurance                                    9,377           22,273
                                                                                              ---------------- ---------------
                Net cash provided by (used in) financing activities                             (17,956,991)         994,665
                                                                                              ---------------- ---------------

  Net Change in Cash and Cash Equivalents                                                         5,361,777       (1,798,091)

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

  Cash and Cash Equivalents, End of Period                                                    $  18,926,679     $  2,956,595
                                                                                              ================ ===============

  Additional Cash Flows Information
       Interest paid                                                                          $    4,406,990    $  2,481,166
       Income tax paid                                                                              455,991          524,000
</TABLE>


  See notes to consolidated condensed financial statements.



                     UNION COMMUNITY BANCORP AND SUBSIDIARY
         Notes to Unaudited Consolidated Condensed Financial Statements

Note 1: Basis of Presentation

The consolidated  financial  statements  include the accounts of Union Community
Bancorp, 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 June 30, 2002,  and for the
three and six months  ended  June 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 six-month period ended June 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
                                                 June 30, 2002                                June 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                     $893,083      2,278,959         $ .39        $449,734      2,031,714        $ .22
                                                                   =========                                  =========

Effect of dilutive RRP awards
and stock options                                      3,900
                                   -------------- ---------------                 ------------ -------------

Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                      $ 893,083     2,282,859         $ .39        $449,734      2,031,614        $ .22
                                   ============== ===============  ========       ============ ============= ==========

</TABLE>


<PAGE>
<TABLE>
<CAPTION>


                                               Six Months Ended                               Six Months Ended
                                                 June 30, 2002                                 June 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>               <C>
    shareholders                    $ 1,540, 006    2,222,956         $ .69           $885,580   2,054,427         $ .43
                                                                  ===========                                 =============

Effect of dilutive RRP awards
and stock options                                        1,950
                                   -------------- ---------------                 ------------- -------------

Diluted earnings per share
   Income available to  common
    shareholders and assumed
    conversions                      $ 1,540,006    2,224,906         $ .69           $885,580   2,054,427         $ .43
                                   ============== =============== ===========     ============= ============= =============

</TABLE>

Note 3: Other Comprehensive Income

<TABLE>
<CAPTION>
                                                                                           Tax
                                                                      Before-Tax         Benefit        Net-of-Tax
       For the Three Months Ended June 30, 2002                         Amount          (Expense)         Amount
                                                                        ------          ---------         ------
         Unrealized gains on securities:
<S>                                                                  <C>                <C>              <C>
            Unrealized holding gains arising during the year         $      959         $   (380)        $    579
            Less: reclassification adjustments for gains realized
              in net income                                               2,574           (1,020)           1,554
                                                                    ---------------- ---------------- ----------------
         Other comprehensive loss                                    $   (1,615)        $    640         $   (975)
                                                                    ================ ================ ================

</TABLE>


<TABLE>
<CAPTION>
                                                                                           Tax
                                                                      Before-Tax         Benefit        Net-of-Tax
       For the Six Months Ended June 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>




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.

                                                            (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.
<TABLE>
<CAPTION>

                                          Three Months Ended                 Six Months Ended
                                               June 30,                          June 30,
                                           2002               2001            2002            2001
                                           ----               ----            ----            ----
                                               (in thousands)                      (in thousands)
<S>                                     <C>                <C>             <C>             <C>
         Net Interest Income            $ 2,581            $ 2,408         $ 5,067         $ 4,728
         Net Income                         893                633             580           1,312
         Net Income Per Share
                  Basic                     .39                .24             .26             .48
                  Diluted                   .39                .24             .26             .48
</TABLE>

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.

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.

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.

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.



<PAGE>



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  $127.7  million  to $270.1  million  at June 30,  2002
primarily due to the  acquisition  of  Montgomery.  Net loans  increased  $112.4
million to $234.2 million at June 30, 2002. During the six months ended June 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
4.6 million.  Cash and cash equivalents increased $5.4 million from December 31,
2001 to June 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
$2.9 million at June 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 $1.7 million at June 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 core deposit intangibles of $590,000 were recorded. Goodwill will be
reviewed annually for impairment and core deposit  intangibles will be amortized
over seven years.

Deposits  increased by $104.7  million to $186.4  million  during the six months
ended  June 30,  2002,  of which  $117.4  million  were added as a result of the
Montgomery  acquisition.  Excluding the deposits  acquired,  deposits  decreased
$12.7  million  with  certificates  of deposit  decreasing  approximately  $24.7
million and other deposits increasing approximately $12.0 million.

Borrowed  funds  increased by $17.2  million from  December 31, 2001 to June 30,
2002. The Montgomery acquisition added $17.6 million of borrowed funds.

Shareholders'  equity  increased $5.1 million to $38.8 million at June 30, 2002.
The net cost of the shares issued in connection with the Montgomery  acquisition
of  $9.0  million,  the net  income  for  six  months  ended  June  30,  2002 of
$1,540,000, the Employee Stock Ownership Plan shares earnings of $71,000 and the
unearned compensation  amortization of $146,000 predominately  accounted for the
increases to the  shareholder's  equity.  These  increases  were offset by stock
repurchases  of $4.9 million,  cancellation  of shares of Company stock owned by
Montgomery of $257,000 and cash dividends of $528,000.

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

Net income increased  $443,000 from $450,000 for the three months ended June 30,
2001 to $893,000 for the three  months ended June 30, 2002.  The increase in net
income was primarily attributable to the acquisition of Montgomery on January 2,
2002 with an increase of $1.4 million in net interest  income  offset in part by
an increase of $683,000 in total other  expenses.  The return on average  assets
for the three  months  ended June 30,  2002 was 1.32%  compared to 1.43% for the
comparable  period in 2001.  The return on average  equity for the three  months
ended June 30,  2002 was 9.25%  compared to 5.05% for the  comparable  period in
2001.

For the three months ended June 30,  2002,  interest  income was $4.7 million as
compared to $2.4  million for the three  months  ended June 30,  2001.  Interest
income increased primarily due to an increase in average  interest-earning asset
from  $124.2  million for the second  quarter of 2001 to $259.6  million for the
comparable period in 2002 offset by a decrease in the yield on  interest-earning
assets from 7.67% during the 2001 period to 7.22%  during the 2002  period.  For
the three  months  ended June 30,  2002,  interest  expense was $2.1  million as
compared to $1.2  million for the three  months  ended June 30,  2001.  Interest
expense  increased  primarily  due to an  increase  in average  interest-bearing
liabilities  from $89.1 for the second quarter of 2001 to $226.5 million for the
comparable  period in 2002 offset by a decrease in the cost of  interest-bearing
liabilities  from 5.34%  during the 2001 period to 3.72% 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 June 30, 2002.

The  provision  for loan  losses for the three  months  ended June 30,  2002 was
$20,000 as compared to $15,000 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 $531,000 for the three months ended June 30,
2001 to  $1,214,000  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 Six Months Ended June 30, 2002 and 2001

For the six  months  ended June 30,  2002,  net  income  was  $1,540,000,  which
represents a 73.8% increase in earnings as compared to the six months ended June
30, 2001.  As  mentioned  previously,  the increase in net income was  primarily
attributable  to the  acquisition of Montgomery with an increase of $2.7 million
in net  interest  income  offset in part by an increase of $1.8 million in total
other  expenses.  The return on average assets for the six months ended June 30,
2002 was 1.13% compared to 1.40% for the  comparable  period in 2001. The return
on average  equity for the six months ended June 30, 2002 was 7.84%  compared to
5.01% for the comparable period in 2001.

For the six months  ended June 30,  2002,  interest  income was $9.3  million as
compared to $4.8 million for the six months ended June 30, 2001. Interest income
increased  primarily due to an increase in average  interest-earning  asset from
$124.1  million for the six months ended June 30, 2001 to $261.4 million for the
comparable period in 2002 offset by a decrease in the yield on  interest-earning
assets from 7.69% during the 2001 period to 7.10%  during the 2002  period.  For
the six  months  ended  June 30,  2002,  interest  expense  was $4.2  million as
compared  to $2.4  million  for the six  months  ended June 30,  2001.  Interest
expense  increased  primarily  due to an  increase  in average  interest-bearing
liabilities  from $88.2 million for the six months ended June 30, 2001 to $225.6
million  for the  comparable  period in 2002 offset by a decrease in the cost of
interest-bearing  liabilities  from 5.54% during the 2001 period to 3.73% 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  $552,000 which  decreased  interest
expense during the six months ended June 30, 2002.

The  provisions  for loan losses made for the six months  ended June 30 2002 was
$60,000 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 $1,028,000 for the six months ended June 30,
2001 to $2,815,000 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 $2.0 million of loans  classified  as special
mention  as of June 30,  2002 and no loans  classified  as  special  mention  at
December 31, 2001. In addition,  Union Federal had $3.9 million and $1.6 million
of loans  classified  as  substandard  at June 30, 2002 and  December  31, 2001,
respectively.  At June 30, 2002 and 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 June 30, 2002, and December 31, 2001,
respectively,   $2.8  million  and  $682,000  of  the  substandard   loans  were
non-accrual  loans.  The allowance for loan losses was $959,000 or .41% of loans
at June 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 June  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 June 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Presented  below,  as of March 31, 2002 and 2001,  is the most recent  available
analyses  performed  by the  OTS of  Union  Federal's  and  Montgomery  Savings'
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>
                                          March 31, 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>
+300 bp              $ 27,616         -16,375            -37%                 10.41%         -492 bp
+200 bp                33,332         -10,659            -24                12.22            -310 bp
+100 bp                38,956          -5,035            -11                13.91            -141 bp
      0 bp             43,991                                               15.32
 -100 bp               47,069           3,078              7                16.10             +77 bp
 -200 bp                    0               0              0                    0                0
 -300 bp                    0               0              0                    0                0
</TABLE>




<TABLE>
<CAPTION>

                                          March 31, 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>
+300 bp              $ 31,999          -7,053            -18%                 26.90%         -331 bp
+200 bp                34,374          -4,678            -12                28.09            -212 bp
+100 bp                36,831          -2,221             -6                29.26             -96 bp
      0 bp             39,052                                               30.21
 -100 bp               40,390           1,338              3                30.64             +43 bp
 -200 bp               41,234           2,183              6                30.79             +57 bp
 -300 bp               42,161           3,109              8                30.95             +74 bp
</TABLE>

Management believes that at June 30, 2002 and March 31, 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.

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  17,  2002,  Union  Community  Bancorp  held its  Annual
               Meeting of  Shareholders.  Three  directors were elected to terms
               expiring in 2005 by the following votes:

                  Marvin L. Burkett     For: 2,375,499    Withheld:  100,501
                  Phillip E. Grush      For: 2,380,860    Withheld:   95,140
                  Joseph E. Timmons     For: 2,312,930    Withheld:  163,070

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

                  Name                               Term Expires In
                  ----                               ---------------
                  C. Rex Henthorn                           2003
                  Samuel H. Hildebrand                      2003
                  Joseph M. Mallott                         2003
                  Harry A. Siamas                           2003
..                 Philip L. Boots                           2004
                  Mark E. Foster                            2004
                  John M. Horner                            2004

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 June
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:         August 13, 2002               By: /s/ Alan L. Grimble
                                               ---------------------------------
                                                 Alan L. Grimble
                                                 Chief Executive Officer


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



                                  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  knowledge,  (i) this  report  fully  complies  with the
requirements  of Section 13(a) 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 August 2002.


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