Union Community Bancorp Releases Earnings

Union Community Bancorp (the "Company") (NASDAQ:UCBC),
the holding company of Union Federal Savings and Loan Association (the
"Association"), announced earnings for the twelve and three months
ended December 31, 2005. For the twelve months ended December 31,
2005, the Company had net income of $290,000 compared to $1,797,000
for the year ended December 31, 2004. Basic and diluted earnings per
share were both $0.16 for the twelve months ended December 31, 2005
compared to $0.97 for basic and $0.95 for diluted for the 2004 period.
For the three months ended December 31, 2005 net income was $81,000
compared to $495,000 for the 2004 three-month period. Earnings per
share were $0.04 for both basic and diluted for the 2005 three-month
period compared to $0.28 per share for basic and $0.27 per share for
diluted for the three months ended December 31, 2004.
   The decrease in net income for the twelve month period was
attributable to a decrease in net interest income, an impairment
charge in connection with loans made by the Company's subsidiary, and
costs associated with the proposed acquisition by MainSource Financial
Group, Inc. ("MainSource") as announced on August 23, 2005.
Contributing to the decrease in net interest income was a decrease in
interest rate spread from 2.88% for the twelve-month period ending
December 31, 2004 to 2.68% for the comparable 2005 twelve-month
period. Net loan charge offs recorded in 2005 totaled approximately
$228,000. This included charge offs reported in the third quarter of
$292,000 partially offset by net recoveries in the fourth quarter of
$64,000. Non-interest income increased $15,000 and non-interest
expense increased $1,249,000. The increase in non-interest expense
includes $1,214,000 in expenses directly associated with the
MainSource proposed acquisition of the Company. Included in these
acquisition related expenses are employee benefit payments of $66,000,
advisory fees of $75,000, legal fees of $97,000 and $976,000 to fund
the defined benefit plan required to be closed pursuant to the merger
agreement.
   The decrease in net income for the three-month period ending
December 31, 2005 compared to the December 31, 2004 period was also
due to a decrease in net interest income and costs associated with the
proposed acquisition by MainSource. Interest rate spread decreased
from 2.85% for the three-month period in 2004 to 2.49% for the 2005
three-month period. Non-interest income increased $55,000 and
non-interest expense increased $299,000 for the three-month period
ending December 31, 2005 compared to the 2004 comparable three-month
period. The increase in non-interest expense includes $265,000 in
expenses associated with the MainSource proposed acquisition of the
Company. Payments in the fourth quarter included the additional
defined benefit funding of $118,000, legal expense of $81,000 and
employee benefit payments of $66,000.
   From December 31, 2004 to December 31, 2005, total assets
increased $3.2 million to $260.1 million and net loans increased $3.3
million to $220.4 million. During the same time frame, deposits
decreased by $15.6 million to $172.8 million. Shareholders' equity
decreased $345,000 to $33.1 million at December 31, 2005.
   The Company and Association are headquartered in Crawfordsville,
Indiana with two branch offices in Crawfordsville and branch offices
in Covington, Williamsport and Lafayette, Indiana. As stated above,
the Company entered into a proposed Agreement and Plan of Merger (the
"Merger Agreement") with MainSource Financial Group, Inc. on August
23, 2005. Subject to approval of shareholders of the Company and final
approval from all regulatory agencies, it is the plan of both the
Company and MainSource to complete the Merger before the end of the
first quarter of 2006. Notice of a special meeting and related proxy
statement/prospectus concerning the merger have been sent to
shareholders.
   The statements contained in this press release contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which involve a number of
risks and uncertainties. A number of factors could cause results to
differ materially from the objectives and estimates expressed in such
forward-looking statements. These factors include, but are not limited
to, changes in the financial condition of issuers of the Company's
investments and borrowers, changes in economic conditions in the
Company's market area, changes in policies of regulatory agencies,
fluctuations in interest rates, demand for loans in the Company's
market area, changes in the position of banking regulators on the
adequacy of our allowance for loan losses, and competition, all or
some of which could cause actual results to differ materially from
historical earnings and those presently anticipated or projected.
These factors should be considered in evaluating any forward-looking
statements, and undue reliance should not be placed on such
statements. The Company does not undertake and specifically disclaims
any obligation to update any forward-looking statements to reflect
occurrence of anticipated or unanticipated events or circumstances
after the date of such statements.
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         SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY
                             (Unaudited)

Balance Sheet Data:                        December 31,  December 31,
                                               2005          2004
                                           ------------- -------------
             Assets
  Cash                                             $701          $706
  Interest-bearing demand deposits               13,093        12,782
                                           ------------  ------------
    Cash and cash equivalents                    13,794        13,488
  Interest-bearing deposits                         116           116
  Investment securities available for sale        2,990         3,037
  Investment securities held to maturity            100           152
  Loans, net                                    220,381       217,056
  Premises and equipment                          4,008         4,180
  Federal Home Loan Bank stock                    3,799         3,721
  Investment in limited partnerships              1,883         2,184
  Foreclosed assets and real estate held
   for development, net                           1,384         1,623
  Goodwill                                        2,393         2,393
  Cash value life insurance                       7,186         6,900
  Other assets                                    2,063         2,049
                                           ------------  ------------
             Total assets                      $260,097      $256,899
                                           ============  ============

             Liabilities
  Deposits                                     $172,832      $188,461
  Federal Home Loan Bank advances                52,158        32,908
  Other liabilities                               2,015         2,093
                                           ------------  ------------
             Total liabilities                  227,005       223,462

  Shareholders' equity                           33,092        33,437
                                           ------------  ------------

             Total liabilities and
              shareholders' equity             $260,097      $256,899
                                           ============  ============

  Book value per common share                    $17.07        $17.34
  Shares outstanding                          1,939,000     1,928,000
  Average equity to average assets                12.99%        13.26%
  Allowance for loan losses to total loans         0.51%         0.42%


                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------
Operating Data:
  Total interest and dividend
   income                       $3,607    $3,463   $14,287   $13,977
  Total interest expense         1,907     1,602     7,141     6,320
                               --------  --------  --------  --------
    Net interest income          1,700     1,861     7,146     7,657
  Provision (adjustment) for
   loan losses                     (15)      (70)      457       103
                               --------  --------  --------  --------
    Net interest income after
     provision (adjustment)
        for loan losses          1,715     1,931     6,689     7,554
                               --------  --------  --------  --------
  Other income:
    Service charges on deposit
     accounts                       79        71       305       249
    Equity in income of limited
     partnership                   (22)      (31)     (254)      (31)
    Other                          188       150       696       514
                               --------  --------  --------  --------
      Total other income           245       190       747       732
                               --------  --------  --------  --------
  Other expenses:
    Salaries and employee
     benefits                      979       803     4,184     3,121
    Net occupancy expense and
     equipment expenses            156       168       669       655
    Legal and professional fees    157        31       506       306
    Data processing                114        92       392       410
    Other                          301       314     1,231     1,241
                               --------  --------  --------  --------
      Total other expenses       1,707     1,408     6,982     5,733
                               --------  --------  --------  --------
  Income before income taxes       253       713       454     2,553
  Income taxes                     172       218       164       756
                               --------  --------  --------  --------
    Net income                     $81      $495      $290    $1,797
                               ========  ========  ========  ========


Other Data:
  Return on average assets        0.12 %    0.77 %    0.16 %    0.69 %
  Return on average equity        0.96 %    5.92 %    1.23 %    5.19 %
  Basic earnings per share       $0.04     $0.28     $0.16     $0.97
  Diluted earnings per share     $0.04     $0.27     $0.16     $0.95
  Cash dividends per common
   share                         $0.15     $0.15     $0.45     $0.60
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