<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 2001

                                       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  0-21292
                        -------

                MERCHANTS AND MANUFACTURERS BANCORPORATION, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                 Wisconsin                               39-1413328
--------------------------------------------------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification Number)
incorporation or organization)

                    14100 West National Avenue, PO Box 511160
                        New Berlin, Wisconsin 53151-1160
--------------------------------------------------------------------------------
                     (Address of principal executive office)

                                 (262) 827-6713
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code:


--------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the Registrant (1) has filed all reports required
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 reports) and (2) has been subject to such filing requirements for
the past 90 days.
Yes    X      No
     ------       ------

                      Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.

   Common Stock, par value $1.00 per share                 2,544,387 Shares
-----------------------------------------------   ------------------------------
                    Class                          Outstanding at August 1, 2001


<PAGE>   2


                MERCHANTS AND MANUFACTURERS BANCORPORATION, INC.

                                    FORM 10-Q

                                      INDEX


<TABLE>
<CAPTION>

                                                                          PAGE NUMBER

<S>                                                                       <C>
PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

        Unaudited Consolidated Statements of Financial Condition as
        of June 30, 2001 and December 31, 2000                                  3

        Unaudited Consolidated Statements of Income for the Three
        Months and the Six Months ended June 30, 2001 and 2000                  4

        Unaudited Consolidated Statements of Cash Flows for the Six
        Months ended June 30, 2001 and 2000                                     5

        Notes to Unaudited Consolidated Financial Statements                    6


Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations                                                       10

Item 3. Quantitative and Qualitative Disclosure About Market Risk               17

PART II. OTHER INFORMATION

Items 1-6                                                                       17

Signatures                                                                      20
</TABLE>


                                       2

<PAGE>   3
PART I. FINANCIAL INFORMATION

MERCHANTS AND MANUFACTURERS BANCORPORATION, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>


                                                                JUNE 30,          DECEMBER 31,
                                                                  2001                2000
                                                             ----------------    ----------------
                                                                       (In Thousands)
<S>                                                           <C>                <C>
ASSETS
Cash and due from banks                                             $ 18,197            $ 20,649
Interest-bearing deposits at other banks                              10,033                 996
Federal funds sold                                                    10,669               1,551
                                                             ----------------    ----------------
Cash and cash equivalents                                             38,899              23,196
Securities available-for-sale at fair value:
  Investment securities                                               36,482              45,760
  Mortgage-related securities                                         30,092              33,087
Loans receivable (net of allowance for loan losses)                  469,211             473,161
Accrued interest receivable                                            3,396               3,696
Federal Home Loan Bank stock                                           3,464               3,171
Premises and equipment                                                 9,864               9,252
Other assets                                                           9,707               9,201
                                                             ----------------    ----------------
Total assets                                                        $601,115            $600,524
                                                             ================    ================

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                          $473,609            $458,115
  Short-term debt                                                     58,791              75,928
  Long-term debt                                                      11,700              12,700
  Accrued interest payable                                             1,443               1,159
  Advance payments by borrowers for taxes and insurance                1,124                 346
  Other liabilities                                                    3,198               3,762
                                                             ----------------    ----------------
Total liabilities                                                    549,865             552,010

Stockholders' equity
  Common stock $1.00 par value; 6,000,000 shares authorized;
    Shares issued: 2,587,509; shares outstanding:
    2,544,386--2001; 2,520,937--2000                                   2,588               2,588
  Additional paid-in capital                                          15,013              15,452
  Accumulated other comprehensive income (loss)                          344                (305)
  Retained earnings                                                   34,636              32,988
  Treasury stock, at cost (43,123 shares--2001;
    66,572 shares--2000)                                              (1,331)             (2,209)
                                                             ----------------    ----------------
Total stockholders' equity                                            51,250              48,514
                                                             ----------------    ----------------
Total liabilities and stockholders' equity                          $601,115            $600,524
                                                             ================    ================
</TABLE>



See notes to unaudited consolidated financial statements.


                                       3

<PAGE>   4




MERCHANTS AND MANUFACTURERS BANCORPORATION, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME


<TABLE>
<CAPTION>

                                             THREE MONTHS ENDED                   SIX MONTHS ENDED
                                                  JUNE 30,                            JUNE 30,
                                           2001             2000               2001             2000
                                       --------------   --------------     --------------   --------------
                                                      (In Thousands, except per share data)
<S>                                    <C>              <C>                <C>              <C>
Interest income:
  Loans, including fees                      $ 9,791          $ 9,134           $ 19,754          $17,511
  Investment securities:
    Taxable                                      388              521                742              862
    Exempt from federal income taxes             227              268                492              545
  Mortgage-related securities                    425              448              1,041            1,098
  Other                                          166               83                264              196
                                       --------------   --------------     --------------   --------------
Total interest income                         10,997           10,454             22,293           20,212

Interest expense:
  Deposits                                     4,197            3,857              8,640            7,510
  Borrowings                                   1,001            1,378              2,494            2,337
                                       --------------   --------------     --------------   --------------
Total interest expense                         5,198            5,235             11,134            9,847

Net interest income                            5,799            5,219             11,159           10,365
Provision for loan losses                        306              187                560              362
                                       --------------   --------------     --------------   --------------
Net interest income after provision
for loan losses                                5,493            5,032             10,599           10,003

Non-interest income:
  Service charges on deposit accounts            308              296                595              569
  Service charges on loans                       168              146                317              267
  Net gain on securities sales                    86                2                 88                2
  Net gain (loss) on loan sales                   21              (8)                 40              (9)
  Net gain on sales of premises                  156               69                312              133
  Other                                          471              401                881              808
                                       --------------   --------------     --------------   --------------
                                               1,210              906              2,233            1,770

Non-interest expenses:
  Salaries and employee benefits               2,579            2,284              5,154            4,896
  Premises and equipment                         756              627              1,575            1,290
  Data processing                                226              247                454              517
  Federal deposit insurance premiums              24               23                 48               48
  Other                                          953              772              1,837            1,501
                                       --------------   --------------     --------------   --------------
                                               4,538            3,953              9,068            8,252

Income before income taxes                     2,165            1,985              3,764            3,521
Income taxes                                     702              624              1,175            1,081
                                       --------------   --------------     --------------   --------------
Net income                                   $ 1,463          $ 1,361           $  2,589          $ 2,440
                                       ==============   ==============     ==============   ==============

Basic earnings per share                     $  0.58          $  0.53           $   1.02          $  0.95
                                       ==============   ==============     ==============   ==============

Diluted earnings per share                   $  0.57          $  0.53           $   1.02          $  0.94
                                       ==============   ==============     ==============   ==============

Dividends per share                          $  0.22          $  0.20           $   0.37          $  0.35
                                       ==============   ==============     ==============   ==============
</TABLE>


See notes to unaudited consolidated financial statements.



                                       4

<PAGE>   5



MERCHANTS AND MANUFACTURERS BANCORPORATION, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                      SIX MONTHS ENDED JUNE 30,
                                                                        2001            2000
                                                                    --------------  --------------
                                                                           (In Thousands)
<S>                                                                 <C>             <C>
OPERATING ACTIVITIES
  Net income                                                             $  2,589        $  2,440
  Adjustments to reconcile net income to cash
    provided by operating activities
       Provision for loan losses                                              560             362
       Provision for depreciation                                             434             438
       Net amortization of investments securities premiums and
         discounts                                                             16              50
       Net realized gains on investment security sales                        (88)             (2)
       Decrease (increase) in accrued interest receivable                     300            (339)
       Increase in accrued interest payable                                   285              22
       Other                                                               (1,459)         (1,572)
                                                                    --------------  --------------
Net cash provided by operating activities                                   2,637           1,399

INVESTING ACTIVITIES
Purchase of securities available-for-sale                                 (23,251)         (4,565)
Proceeds from sales of securities available-for-sale                        4,259           1,541
Proceeds from redemptions and maturities of securities
  available-for-sale                                                       32,325           7,674
Net decrease (increase) in loans                                            3,439         (50,707)
Purchase of Federal Home Loan Bank stock                                     (293)           (428)
Purchase of premises and equipment                                         (1,046)           (730)
                                                                    --------------  --------------
Net cash provided (used) in investing activities                           15,433         (47,215)

FINANCING ACTIVITIES
Net increase in deposits                                                   15,494           1,099
Net increase (decrease) in short-term borrowings                          (17,637)         28,922
Increase in advance payments by borrowers for taxes and insurance             778             978
Payment of cash dividends to stockholders                                    (941)           (856)
Proceeds from long-term Federal Home Loan Bank advances                     1,000          10,500
Repayment of long-term Federal Home Loan Bank advances                     (1,500)         (4,500)
Purchase of treasury stock                                                     --            (383)
Proceeds from sale of treasury stock                                          439             190
Cost from issuing additional common stock                                      --             (88)
                                                                    --------------  --------------
Net cash provided by financing activities                                  (2,367)         35,862

Increase (decrease) in cash and cash equivalents                           15,703          (9,954)
Cash and cash equivalents at beginning of period                           23,196          29,769
                                                                    --------------  --------------
Cash and cash equivalents at end of period                               $ 38,899        $ 19,815
                                                                    ==============  ==============


Supplemental cash flow information:
  Interest paid                                                          $ 11,111        $  8,986
  Income taxes paid                                                         1,051           1,108
  Loans transferred to other real estate owned                                 --             490
</TABLE>


See notes to unaudited consolidated financial statements.



                                       5

<PAGE>   6


MERCHANTS AND MANUFACTURERS BANCORPORATION, INC.
Notes to Unaudited Consolidated Financial Statements
June 30, 2001

NOTE A -- BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the
accounts of Merchants and Manufacturers Bancorporation, Inc. and its wholly
owned subsidiaries: Lincoln State Bank, Franklin State Bank, Grafton State Bank,
Lincoln Community Bank, Community Bank of Oconto County (collectively, the
Banks), Merchants Merger Corp. and M&M Services, Inc. Lincoln State Bank also
includes the accounts of its wholly owned subsidiary, M&M Lincoln Investment
Corporation. Lincoln Community Bank also includes the accounts of its wholly
owned subsidiary, Lincoln Investment Management Corporation. Grafton State Bank
also includes the accounts of its wholly owned subsidiary, GSB Investments, Inc.
All significant intercompany balances and transactions have been eliminated.

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six-month period ended June 30, 2001
are not necessarily indicative of the results that may be expected for the year
ended December 31, 2001. For further information, refer to the consolidated
financial statements and footnotes thereto included in our Form 10-K for the
year ended December 31, 2000. The December 31, 2000 10-K was issued prior to the
CBOC, Inc. acquisition.

NOTE B -- ACQUISITION

On January 16, 2001 we completed a merger with CBOC, Inc. and its wholly owned
subsidiary, Community Bank of Oconto County (CBOC). The transaction was
accounted for as a pooling of interests, and, accordingly, all financial
statements and information have been restated to incorporate CBOC Inc.'s results
on a historical basis. Each share of CBOC, Inc. common stock was exchanged for
5.746 shares of our $1 par value common stock. This resulted in the issuance of
459,621 shares of our common stock.



                                       6
<PAGE>   7


NOTE C -- EARNINGS PER SHARE

Presented below are the calculations for basic and diluted earnings per share:

<TABLE>
<CAPTION>

                                             Three Months Ended                Six Months Ended
                                                  June 30,                         June 30,
Basic                                        2001           2000              2001           2000
--------------------------------------------------------------------      ----------------------------
<S>                                      <C>            <C>              <C>             <C>
Net income                                 $ 1,463,340   $ 1,360,653        $ 2,589,450   $ 2,440,509
Weighted average shares outstanding          2,544,035     2,564,231          2,542,258     2,563,765
Basic earnings per share                       $  0.58       $  0.53            $  1.02       $  0.95
                                         ===========================     ============================

Diluted:
--------------------------------------------------------------------     ----------------------------
Net income                                 $ 1,463,340   $ 1,360,653        $ 2,589,450   $ 2,440,509
Weighted average shares outstanding          2,544,035     2,564,231          2,542,258     2,563,765
Effect of dilutive stock options
  outstanding                                    4,448        20,599              7,043        20,894
                                         ---------------------------     ----------------------------
Diluted weighted average shares
  outstanding                                2,548,483     2,584,830          2,549,301     2,584,659
Diluted earnings per share                     $  0.57       $  0.53            $  1.02       $  0.94
                                         ===========================     ============================
</TABLE>


NOTE D - COMPREHENSIVE INCOME

The following table presents our comprehensive income.

<TABLE>
<CAPTION>

                                             Three Months Ended                Six Months Ended
                                                  June 30,                         June 30,
                                             2001           2000              2001           2000
                                         ----------------------------     ----------------------------
<S>                                      <C>            <C>               <C>            <C>
Net income                                 $ 1,463,340   $ 1,360,653        $ 2,589,450   $ 2,440,509
Other comprehensive income
  Net change in unrealized securities
    gains (losses), net                        (12,102)      100,104            647,481         2,419
                                         ----------------------------     ----------------------------
Total comprehensive income                 $ 1,451,238   $ 1,460,757        $ 3,236,931   $ 2,442,928
                                         ============================     ============================
</TABLE>



                                       7

<PAGE>   8


NOTE E -- LOANS RECEIVABLE

Loans are comprised of the following categories:

<TABLE>
<CAPTION>

                                                                        June 30
                                                                2001              2000
                                                           ---------------------------------
                                                                    (In Thousands)
              <S>                                          <C>              <C>
              First Mortgage:
                Conventional single-family residential            $ 90,034          $ 93,594
                Commercial and multifamily residential             160,212           162,139
                Construction and land                               45,704            40,546
                Farmland                                             7,401             7,144
                                                           ---------------------------------
                                                                   303,351           303,423

              Commercial business loans                            131,781           105,710
              Consumer and installment loans                        31,769            32,285
              Lease financing                                        1,375             1,874
              Home equity loans                                      4,744             4,476
              Other                                                  1,541             2,054
                                                           ---------------------------------
              Total loans                                          171,210           146,399

              Less:
                Allowance for loan losses                            5,350             4,336
                                                           ---------------------------------
              Loans, net                                          $469,211          $445,486
                                                           =================================
</TABLE>


The following table presents changes in the allowance for loan losses:

<TABLE>
<CAPTION>

                                                June 30
                                          2001           2000
                                      ---------------------------
                                            (In Thousands)
<S>                                   <C>            <C>
Balance at January 1                         $5,010        $4,046
     Provisions                                 560           362
     Charge-offs                              (227)          (74)
     Recoveries                                   7             2
                                      ---------------------------
Balance at June 30                           $5,350        $4,336
                                      ===========================
</TABLE>


NOTE F -- STOCKHOLDERS' EQUITY

Under federal law and regulations, we are required to meet certain capital
requirements. Under the Federal Reserve Board's risk-based guidelines we are
considered to be "well capitalized." The Banks are required to meet leverage and
risk-based capital requirements. The leverage ratio, in general, is
stockholders' equity as a percentage of total assets. The risk-based capital
ratio, in general, is stockholders' equity plus general loan loss allowances
(within certain limitations) as a percentage of risk adjusted assets.



                                       8

<PAGE>   9


As of June 30, 2001, the most recent notification from Federal Deposit Insurance
Corporation categorized Lincoln Community Bank, Franklin State Bank, Lincoln
State Bank, Grafton State Bank and Community Bank of Oconto County (CBOC) as
"well capitalized" under the regulatory framework for prompt corrective action.
To be categorized as "well capitalized," the Banks must maintain minimum total
risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the
table. There are no conditions or events since that notification that management
believes have changed the Banks' category.


<TABLE>
<CAPTION>



                                                                           To Be Well Capitalized
                                                          For Capital      Under Prompt Corrective
                                      Actual           Adequacy Purposes     Action Provisions
                               -------------------------------------------------------------------
                                 Amount     Ratio      Amount     Ratio      Amount     Ratio
                               -------------------------------------------------------------------
         AS OF JUNE 30, 2001                         (Dollars In Thousands)
         <S>                   <C>          <C>        <C>        <C>         <C>       <C>
         Total Capital (to
           Risk-Weighted
           Assets):
             Lincoln State Bank  $22,032       11.27%   $15,645     >8.00%     $19,557   >10.00%
             Lincoln Community    10,311       11.74%     7,026     >8.00%       8,783   >10.00%
             Grafton State Bank   11,476       11.56%     7,944     >8.00%       9,930   >10.00%
             Franklin State Bank   6,580       10.48%     5,023     >8.00%       6,279   >10.00%
             CBOC                  6,462       13.30%     3,888     >8.00%       4,860   >10.00%

         Tier 1 Capital (to
           Risk-Weighted
           Assets):
             Lincoln State Bank   19,687       10.07%     7,823     >4.00%      11,734    >6.00%
             Lincoln Community     9,390       10.69%     3,513     >4.00%       5,270    >6.00%
             Grafton State Bank   10,598       10.67%     3,972     >4.00%       5,958    >6.00%
             Franklin State Bank   5,873        9.35%     2,512     >4.00%       3,767    >6.00%
             CBOC                  5,962       12.27%     1,944     >4.00%       2,916    >6.00%

         Tier 1 Capital (to
           Average Assets):
             Lincoln State Bank   19,687        8.98%     8,765     >4.00%      10,956    >5.00%
             Lincoln Community     9,390        8.58%     4,378     >4.00%       5,473    >5.00%
             Grafton State Bank   10,598        7.90%     3,972     >4.00%       4,965    >5.00%
             Franklin State Bank   5,873        8.31%     2,828     >4.00%       3,535    >5.00%
             CBOC                  5,962        9.49%     2,513     >4.00%       3,141    >5.00%
</TABLE>



                                       9

<PAGE>   10


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Financial Condition

TOTAL ASSETS

At June 30, 2001, our consolidated total assets were $601.1 million as compared
to $600.5 million at December 31, 2000. Growth in short-term investments and
federal funds sold caused the increase.

INVESTMENT AND MORTGAGE RELATED SECURITIES

Investment securities available-for-sale decreased $9.3 million, or 20.3%, from
$45.7 million at December 31, 2000, to $36.5 million at June 30, 2001. We used
the proceeds from maturities, sales and repayments of investment securities to
fund new loans and purchase other types of securities rather than purchase
additional investment securities.

Mortgage-related securities available-for-sale decreased $3.0 million, or 9.1%,
from $33.1 million at December 31, 2000, to $30.1 million at June 30, 2001. The
decline in mortgage related securities is due to the sale of investments during
the second quarter of 2001.

LOANS RECEIVABLE

Loans receivable, net of allowance for loan losses decreased $4.0 million, or
0.8%, from $473.1 million at December 31, 2000 compared to $469.2 million at
June 30, 2001. The minimal change was primarily due to our effort to reduce the
loan growth rate which has averaged 11.9% over the last five years. Loans
receivable have increased $23.7 million or 5.3% from June 30, 2000 to June 30,
2001. Currently, loans receivable consists mainly of commercial loans secured by
business assets, real estate and guarantees as well as mortgages secured by
residential properties located in our primary market areas. At June 30, 2001 we
have not designated any loans as held for sale.

TOTAL DEPOSITS AND BORROWINGS

Total deposits increased $15.5 million, or 3.4%, from $458.1 million on December
31, 2000 to $473.6 million on June 30, 2001. The increase in deposits can be
attributed to the growth in retail certificate of deposits and commercial money
market accounts currently offered by our bank subsidiaries. Uncertainties in the
stock market also contributed to the deposit increase. As a result of the
deposit growth, we were able to decrease the amount of borrowed funds. Total
borrowings decreased by $18.1 million, or 20.5%, from $88.6 million on December
31, 2000 to $70.5 million on June 30, 2001. Borrowings consist of $53.7 million
in Federal Home Loan Bank advances, $8.0 million in fed funds borrowed from
correspondent banks, $2.4 million borrowed on a $10.0 million line of credit
from another financial institution and $6.4 million in repurchase agreements and
other borrowings.


                                       10

<PAGE>   11


CAPITAL RESOURCES AND ADEQUACY

Stockholders' equity at June 30, 2001 was $51.3 million compared to $48.5
million at December 31, 2000, an increase of $2.8 million. The change in
stockholders' equity consists of net income of $2.6 million, proceeds from the
sale of treasury stock of $439,000, less payments of dividends to shareholders
of $941,000 and a $648,000 net increase in accumulated other comprehensive
income. We and our banks continue to exceed our regulatory capital requirements.

NONPERFORMING ASSETS AND ALLOWANCE FOR LOSSES

Generally a loan is classified as nonaccrual and the accrual of interest on such
loan is discontinued when the contractual payment of principal or interest has
become 90 days past due or management has serious doubts about further
collectibility of principal or interest. Generally, loans are restored to
accrual status when the obligation is brought current, has performed in
accordance with the contractual terms for a reasonable period of time and the
ultimate collectibility of the total contractual principal and interest is no
longer in doubt.

Nonperforming assets are summarized, for the dates indicated, as follows:

<TABLE>
<CAPTION>

                                                       June 30,        December 31,
                                                         2001              2000
                                                    ---------------    ------------
                                                          (dollars in thousands)
        <S>                                         <C>                   <C>
        Non-accrual loans:
           Mortgage loans
             One-to-four family                      $   855              $ 1,052
             Commercial real estate                    1,147                   --
                                                    --------              -------
              Total mortgage loans                     2,002                1,052

           Commercial business                           741                  436
           Consumer and other                            421                  327
                                                    --------              -------
              Total non-accrual loans                  3,164                1,815

        Other real estate owned                          107                  117
                                                    --------              -------
              Total nonperforming assets             $ 3,271              $ 1,932
                                                    ========              =======

        RATIOS:
        Non-accrual loans to total loans               0.67%               0.38%
        Nonperforming assets to total assets            0.54                0.32
        Loan loss allowance to non-accrual loans      169.09              276.03
        Loan loss allowance to total loans              1.14                1.05
</TABLE>


Nonperforming assets increased by $1.4 million from $1.9 million at December 31,
2000 to $3.3 million at June 30, 2001, an increase of 69.3%. Management believes
that losses will be minimal on the remaining balances, due to the collateral
position in each situation.



                                       11

<PAGE>   12


COMPARISON OF THREE AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000

NET INTEREST INCOME

Net interest income equals the difference between interest earned on assets and
the interest paid on liabilities and is a measure of how effectively management
has balanced and allocated our interest rate sensitive assets and liabilities as
well being the most significant component of earnings. Net interest income for
the three months ended June 30, 2001 was $5.8 million, an increase of 11.1% from
the $5.2 million reported for the same period in 2000. An improved net interest
margin was the primary reason for the improvement in the first quarter net
interest income. The reduction in market interest rates during the quarter
caused the average rate paid on deposits and borrowings to decrease from 4.11%
for the three months ended June 30, 2000 to 3.81% for the three month period
ending June 30, 2001. Net interest income for the six months ended June 30, 2001
was $11.2 million, an increase of 7.7% from the $10.4 million reported for the
same period in 2000. The increased volume of interest-earning assets was the
primary reason for the improvement in the year-to-date net interest income.

The following table sets forth the weighted average yield earned on the
Corporation's consolidated loan and investment portfolios, the weighted average
interest paid on deposits and borrowings, the net spread between yield earned
and rates paid and the net interest margin during the six and three months ended
June 30, 2001 and 2000.

<TABLE>
<CAPTION>

                                                       During the             During the
                                                      Three Months            Six Months
                                                     Ended June 30,         Ended June 30,

                                                     2001      2000         2001      2000
                                                   ---------------------------------------
            <S>                                    <C>       <C>          <C>        <C>
            Weighted average yield on
               interest-earning assets              7.75%     7.96%        7.84%     7.88%

            Weighted average rate paid on
               deposit accounts and borrowings      3.81      4.11         4.07      3.96
                                                   ---------------------------------------

            Net interest spread                     3.94%     3.85%        3.77%     3.92%
                                                   =======================================

            Net interest margin (net interest
               income divided by average
               earning assets)                      4.09%     3.97%        3.92%     4.04%
                                                   =======================================
</TABLE>


PROVISION FOR LOAN LOSSES

For the three months ended June 30, 2001, the provision for loan losses was
$306,000 compared to $187,000 for the same period in 2000. For the six months
ended June 30, 2001, the provision for loan losses was $560,000 compared to
$362,000 for the same period in 2000. The increased provision was made to
support the growth in the loan portfolio that began in 1999 as well as the
increase in nonperforming assets during the quarter. We use a risk-based
assessment of our loan portfolio to determine the level of the loan loss
allowance. This procedure is based on internal reviews intended to determine the
adequacy of the loan loss allowance in view of presently known factors. However,
changes in economic conditions in the future financial conditions of borrowers
cannot be predicted and may result in increased future provisions to the loan
loss allowance.



                                       12

<PAGE>   13

NON-INTEREST INCOME

Non-interest income for the three months ended June 30, 2001 was $1.2 million
compared to $906,000 for the three months ended June 30, 2000, an increase of
$304,000, or 33.6%. Non-interest income for the six months ended June 30, 2001
was $2.2 million compared to $1.8 million for the six months ended June 30,
2000, an increase of $463,000, or 26.2%. The increases for both periods were due
to the recognition of deferred gains realized on the sale and leaseback of two
of banking facilities in 2000 and 1999, increased loan fees collected and gains
recognized on the sales of loans and investments.

NON-INTEREST EXPENSE

Non-interest expense for the three months ended June 30, 2001 was $4.5 million
compared to $4.0 million for the three months ended June 30, 2001, an increase
of $585,000, or 14.8%. Non-interest expense for the six months ended June 30,
2001 was $9.1 million compared to $8.3 million for the six months ended June 30,
2000, an increase of $816,000, or 9.9%. Salaries and employee benefits increased
$295,000 or 12.9% from $2.3 million for the three-month period ended June 30,
2000 to $2.6 million for the 2001 three-month period. Salaries and employee
benefits increased $258,000 or 5.3% from $4.9 million for the six-month period
ended June 30, 2000 to $5.2 million for the six-month period ended June 30,
2001. Higher benefit costs and additions of new personnel accounted for the
change in both periods. Premises and equipment expense increased $129,000, or
20.6%, from $627,000 for the three-month period ended June 30, 2000 compared to
$756,000 for the three-month period ended June 30, 2001, and increased $285,000,
or 22.1%, from $1.3 million for the six-month period ended June 30, 2000
compared to $1.6 million for the six-month period ended June 30, 2001. The
increase in occupancy expense can be attributed to higher utility costs,
maintenance and upkeep of our properties and lease payments made on the sold
banking facilities. Other expenses increased $181,000 or 23.4% for the
three-month period ended June 30, 2001 and increased $336,000 or 22.4% for the
six-month period ended June 30, 2001. These increases can be attributed to
changes in operating expenses such as business development, consulting fees,
organizational dues and subscriptions and new product development. The increase
in the consulting fees can be directly attributable to the development of our
new strategic plan.

INCOME TAXES

Income before taxes for the three-month period ended June 30, 2001 was $2.2
million compared to $2.0 million for the three months ended June 30, 2000, an
increase of $180,000, or 9.1%. Income before taxes for the six-month period
ended June 30, 2001 was $3.8 million compared to $3.5 million for the six months
ended June 30, 2000, an increase of $243,000, or 6.9%. The income tax expense
for the three months ended June 30, 2001 increased $98,000 over the same period
in 2000. The effective tax rate for the three months ended June 30, 2001 was
32.4% compared to 31.4% for the three months ended June 30, 2000. The income tax
expense for the six months ended June 30, 2001 increased $94,000 over the same
period in 2000. The effective tax rate for the six months ended June 30, 2001
was 31.2% compared to 30.7% for the six months ended June 30, 2000.



                                       13

<PAGE>   14


NET INCOME

On an after tax basis, for the three month period ended June 30, 2001, we
reported net income of $1.46 million compared to $1.36 million for the same
period in 2000 an increase of 7.5% and for the six month period ended June 30,
2001, we reported net income of $2.59 million compared to $2.44 million for the
same time period in 2000 an increase of 6.1%.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity management involves the ability to meet the cash flow requirements of
customers who may be either depositors wanting to withdraw funds or borrowers
needing assurance that sufficient funds will be available to meet their credit
needs. We had liquid assets of $38.9 million and $23.2 million at June 30, 2001
and December 31, 2000, respectively.

Management believes liquidity and capital levels are adequate at June 30, 2001.
For a discussion of regulatory capital requirements, see Note F to the Unaudited
Consolidated Financial Statements.

ASSET/LIABILITY MANAGEMENT

Financial institutions are subject to interest rate risk to the extent their
interest-bearing liabilities (primarily deposits) mature or reprice at different
times and on a different basis than their interest-earning assets (consisting
primarily of loans and securities). Interest rate sensitivity management seeks
to match maturities on assets and liabilities and avoid fluctuating net interest
margins while enhancing net interest income during periods of changing interest
rates. The difference between the amount of interest-earning assets maturing or
repricing within a specific time period and the amount of interest-bearing
liabilities maturing or repricing within the same time period is referred to as
an interest rate gap. A gap is considered positive when the amount of interest
rate sensitive assets exceeds the amount of interest rate sensitive liabilities.
A gap is considered negative when the amount of interest rate sensitive
liabilities exceeds the amount of interest rate sensitive assets. During periods
of falling interest rates, a negative gap tends to positively affect net
interest income while a positive gap tends to result in an decrease in net
interest income. During a period of rising interest rates, a positive gap tends
to result in an increase in net interest income while a negative gap tends to
adversely affect net interest income.



                                       14

<PAGE>   15


The following table shows the interest rate sensitivity gap for four different
time intervals as of June 30, 2001. Certain assumptions regarding prepayment and
withdrawal rates made are based upon the Corporation's historical experience and
management believes such assumptions are reasonable.

<TABLE>
<CAPTION>

                                             AMOUNTS MATURING OR REPRICING AS OF JUNE 30, 2001
                                       --------------------------------------------------------------
                                          WITHIN    SIX TO TWELVE  ONE TO FIVE    OVER
                                        SIX MONTHS     MONTHS         YEARS    FIVE YEARS     TOTAL
                                       --------------------------------------------------------------
                                                          (DOLLARS IN THOUSANDS)
  <S>                                  <C>             <C>         <C>          <C>         <C>
  Interest-earning assets:
  Fixed-rate mortgage loans                $ 29,927    $ 30,622    $127,260    $ 23,573     $211,382
  Adjustable-rate mortgage loans             31,915      10,311      35,458           0       77,684
                                       --------------------------------------------------------------
        Total mortgage loans                 61,842      40,933     162,718      23,573      289,066
  Commercial business loans                  67,298      13,501      55,768       5,680      142,247
  Consumer loans                              6,809       4,196      21,978       2,440       35,423
  Home equity loans                           4,532          16         315           0        4,863
  Tax-exempt loans                                0         510         283         794        1,587
  Lease financing                                 0           0       1,375           0        1,375
  Mortgage-related securities                13,194       1,966      14,046         886       30,092
  Fixed rate investment securities
   and other                                  2,708       2,589      10,962      15,743       32,002
  Variable rate investment securities
   and other                                 25,132       3,464          25          25       28,646
                                       --------------------------------------------------------------
        Total interest-earning assets      $181,515    $ 67,175    $267,470    $ 49,141     $565,301
                                       ==============================================================

  Interest-bearing liabilities:
  Deposits
    Time deposits                          $116,804    $ 66,524    $ 30,168         $82     $213,578
    NOW accounts                              1,844       1,844      18,444       8,607       30,739
    Savings accounts                          4,205       5,350      42,049      19,623       71,227
    Money market accounts                    30,241       3,828      38,279      17,864       90,212
    Advance payments for taxes and
     insurance                                    0       1,124           0           0        1,124
    Borrowings                               26,691      35,500       2,300       6,000       70,491
                                       --------------------------------------------------------------
        Total interest-bearing
          liabilities                      $179,785    $114,170    $131,240    $ 52,176     $477,371
                                       ==============================================================
  Interest-earning assets less
    interest-bearing Liabilities           $  1,730    ($46,995)   $136,230     ($3,035)    $ 87,930
                                       ==============================================================
  Cumulative interest rate
    sensitivity gap                        $  1,730    ($45,265)   $ 90,965    $ 87,930
                                       =================================================
  Cumulative interest rate
    sensitivity gap as a Percentage
    of total assets                            0.29%     (7.53%)      15.13%      14.63%
                                       =================================================
</TABLE>


At June 30, 2001, the Corporation's cumulative interest-rate sensitive gap as a
percentage of total assets was a positive 0.29% for six months and a negative
7.53% for one-year maturities. Therefore, the Corporation is negatively gapped
at one year and may benefit from falling interest rates.

Certain shortcomings are inherent in the method of analysis presented in the
above schedule. For example, although certain assets and liabilities may have
similar maturities or periods of repricing, they may react in different degrees
to changes in market interest rates. Also, the interest rates on certain types
of assets and liabilities may fluctuate in advance of changes in market interest
rates, while interest rates on other types may lag behind changes in market
rates. Additionally, certain assets, such as adjustable rate mortgage loans,
have features that restrict changes in interest rates, on a short term basis
over the life of the asset. Further, in the event of a change in interest rates,
prepayment and early withdrawal levels would likely deviate significantly from
those assumed in calculating the schedule.



                                       15

<PAGE>   16



FORWARD-LOOKING STATEMENTS

This Form 10-Q contains various forward-looking statements concerning our
prospects that are based on the current expectations and beliefs of management.
We may also make forward-looking statements from time to time in other reports
and documents as well as oral presentations. When used in written documents or
oral statements, the words anticipate, believe, estimate, expect, objective and
similar expressions are intended to identify forward-looking statements. The
statements contained herein and such future statements involve or may involve
certain assumptions, risks and uncertainties, many of which are beyond our
control, that could cause our actual results and performance to differ
materially from what is expected. In addition to the assumptions and other
factors referenced specifically in connection with such statements, the
following factors could impact the business and our financial prospects: general
economic conditions; risks relating to our ability to successfully integrate
future acquisitions, legislative and regulatory initiatives; monetary and fiscal
policies of the federal government; deposit flows; disintermediation; the cost
of funds; general market rates of interest; interest rates or investment returns
on competing investments; demand for loan products; demand for financial
services; changes in accounting policies or guidelines; and changes in the
quality or composition of our loan and investment portfolio.

CURRENT ACCOUNTING DEVELOPMENTS

The Financial Accounting Standards Board (FASB) issued Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities, which is effective
for all fiscal quarters of fiscal years beginning after June 15, 2001. This
Statement, as amended by FASB Statement No. 137 and No. 138, establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
It requires that an entity recognize all derivatives as either assets or
liabilities in the statement of financial position and measure those instruments
at fair value. The accounting for changes in the fair value of a derivative
depends on the intended use of the derivative and the resulting designation.
Management believes adoption of this Statement will have no effect on the
consolidated financial statements.

The Financial Accounting Standards Board (FASB) has issued Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities. This Statement replaces FASB Statement No. 125 in its entirety.
It revises the standards for accounting for securitizations and other transfers
of financial assets and collateral and requires certain disclosures, but carries
over most of Statement No. 125's provisions without reconsideration. The
Statement is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. The adoption of
this Statement had no material effect on the consolidated financial statements.

In July 2001, the FASB issued Statement of Financial Accounting Standards No.
141, Business Combinations (SFAS No. 141) and Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets (SFAS No. 142). SFAS No.
141 addresses financial accounting and reporting for business combinations and
is effective for all business combinations initiated after June 30, 2001. SFAS
No. 142 addresses financial accounting and reporting for acquired goodwill and
other intangible assets and is effective for fiscal years beginning after
December 15, 2001. The Company has not yet completed its assessment of the
effects of these new pronouncements on its financial statements and so is
uncertain as to the impact. The standards generally are required to be
implemented by the Company in its 2002 financial statements.



                                       16

<PAGE>   17

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Corporation has not experienced any material changes to its market risk
position since December 31, 2000, from that disclosed in the Corporation's 2000
Form 10-K Annual Report.

PART II.  OTHER INFORMATION

Item 1.      Legal Proceedings

             As of June 30, 2001 there were no material pending legal
             proceedings, other than ordinary routine litigation incidental to
             the business of the Corporation, to which the Corporation or any of
             its subsidiaries was a party or to which any of their property was
             subject.

Item 2.      Changes in Securities - NONE

Item 3       Defaults upon Senior Securities - NONE

Item 4       Submission of Matters to Vote of Security Holders
             ANNUAL MEETING OF SHAREHOLDERS. On May 22, 2001, at the Annual
             Meeting of the shareholders of the Corporation, the Corporation's
             shareholders reelected Michael Murry, James Bomberg, Conrad
             Kaminski, Nicholas Logarakis, Keith Winters, James Kacmarcik and
             Duane Cherek as directors for three-year terms expiring on the date
             of the annual shareholders meeting to be held in 2004.

             SHAREHOLDER VOTE WITH RESPECT TO MATTERS ACTED UPON AT THE ANNUAL
             MEETING

             ELECTION OF DIRECTORS. Under Wisconsin law, the number of persons
             corresponding to the number of director positions to be filled at
             the Annual Meeting who received the highest number of votes would
             be elected as directors. Michael Murry, James Bomberg, Conrad
             Kaminski, Nicholas Logarakis, Keith Winters, James Kacmarcik and
             Duane Cherek were standing for reelection. The vote with respect to
             the reelection of each was as follows:

<TABLE>
             <S>           <C>        <C>
             MICHAEL MURRY
                           2,542,387  Total votes were eligible to be cast
                           1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                           1,529,333  Votes were cast "FOR" the reelection of Mr. Murry
                                   0  Votes were cast "AGAINST" the reelection of Mr. Murry
                              45,133  Votes abstained or were broker non-votes

             JAMES BOMBERG
                           2,542,387  Total votes were eligible to be cast
                           1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                           1,534,512  Votes were cast "FOR" the reelection of Mr. Bomberg
                                   0  Votes were cast "AGAINST" the reelection of Mr. Bomberg
                              39,954  Votes abstained or were broker non-votes
</TABLE>




                                       17

<PAGE>   18
<TABLE>
             <S>                <C>        <C>
             CONRAD KAMINSKI
                                2,542,387  Total votes were eligible to be cast
                                1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                                1,552,609  Votes were cast "FOR" the reelection of Mr. Kaminski
                                        0  Votes were cast "AGAINST" the reelection of Mr. Kaminski
                                   21,857  Votes abstained or were broker non-votes
             NICHOLAS LOGARAKIS
                                2,542,387  Total votes were eligible to be cast
                                1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                                1,551,823  Votes were cast "FOR" the reelection of Mr. Logarakis
                                        0  Votes were cast "AGAINST" the reelection of Mr. Logarakis
                                   22,643  Votes abstained or were broker non-votes

             KEITH WINTERS
                                2,542,387  Total votes were eligible to be cast
                                1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                                1,551,823  Votes were cast "FOR" the reelection of Mr. Winters
                                        0  Votes were cast "AGAINST" the reelection of Mr. Winters
                                   22,643  Votes abstained or were broker non-votes

             JAMES KACMARCIK
                                2,542,387  Total votes were eligible to be cast
                                1,574,466  Votes were represented in person or by proxy at the Annual Meeting
                                1,532,870  Votes were cast "FOR" the reelection of Mr. Kacmarcik
                                        0  Votes were cast "AGAINST" the reelection of Mr. Kacmarcik
                                   41,596  Votes abstained or were broker non-votes


             DUANE CHEREK
                                2,105,549  Total votes were eligible to be cast
                                1,540,263  Votes were represented in person or by proxy at the Annual Meeting
                                1,538,270  Votes were cast "FOR" the reelection of Mr. Cherek
                                        0  Votes were cast "AGAINST" the reelection of Mr. Cherek
                                   36,196  Votes abstained or were broker non-votes
</TABLE>

The following individuals will continue to serve as directors for the terms
indicated:

Directors to serve until the 2002 shareholders meeting:

 Thomas Gapinski             J. Michael Bartels        Gervase Rose
 Thomas Sheehan              James Sass                Thomas Ebenreiter
 Michael Judge               Richard Pamperin

Directors to serve until the 2003 shareholders meeting:

 Casimir Janiszewski         David Kaczynski           Jerome Sarnowski




                                       18

<PAGE>   19


Item 5       Other Information - NONE

Item 6       Exhibits and Reports on Form 8-K

             The Corporation filed on report Form 8-K on June 5, 2001 and
             Amendment No. 1 thereto on June 15, 2001 in regards to its change
             in certifying accountant.




                                       19

<PAGE>   20



                                   SIGNATURES

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

                                          MERCHANTS AND MANUFACTURERS
                                              BANCORPORATION, INC.
                                ------------------------------------------------
                                                 (Registrant)




Date       August 14, 2001                   /s/ James F. Bomberg
      ----------------------------          ------------------------------------
                                             James F. Bomberg
                                             President & Chief Executive Officer


Date      August  14, 2001                   /s/ James C. Mroczkowski
      ----------------------------          ------------------------------------
                                             James C. Mroczkowski
                                             Executive Vice President & Chief
                                               Financial Officer
                                             Principal Financial Officer




                                       20