FORM 10-Q
                       Securities and Exchange Commission
                             Washington, D.C. 20549
                            -------------------------

                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
                            -------------------------

                           Commission File #000-30521

                              Lenawee Bancorp, Inc.
             (Exact name of registrant as specified in its charter)

            Michigan                                            38-3088340
 (State or other jurisdiction of                             (I.R.S. Employer
  incorporation or organization)                             Identification No.)


                 135 East Maumee Street, Adrian, Michigan 49221
          (Address of principal executive offices, including Zip Code)

       Registrant's telephone number, including area code: (517) 265-5144,
                               Fax (517) 265-3926

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 shorter periods 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 [ ]

As of August 7, 2001, there were 848,537  outstanding shares of the registrant's
common stock, no par value.

                                     Page 1
<PAGE>
                              CROSS REFERENCE TABLE


ITEM NO.                       DESCRIPTION                              PAGE NO.
--------------------------------------------------------------------------------

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements (Condensed)
         (a)    Report of Independent Accountants                            3
         (b)    Condensed Consolidated Balance Sheets                        4
         (c)    Condensed Consolidated Statements of Income
                   and Comprehensive Income                                  5
         (d)    Condensed Consolidated Statements of Cash Flows              6
         (e)    Notes to Condensed Consolidated Financial Statements         7

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations                       9

Item 3.  Quantitative and Qualitative Disclosures About Market Risk         14


                           PART II -OTHER INFORMATION

Item 1.  Legal Proceedings                                                  15
Item 2.  Changes in Securities and Use of Proceeds                          15
Item 3.  Defaults Upon Senior Securities                                    15
Item 4.  Submission of Matters to a Vote of Security Holders                15
Item 5.  Other Information                                                  16
Item 6.  Exhibits and Reports on Form 8-K                                   16

Signatures                                                                  17


                                     Page 2
<PAGE>
                        REPORT OF INDEPENDENT ACCOUNTANTS



Shareholders and Board of Directors
Lenawee Bancorp, Inc.
Adrian, Michigan


We have reviewed the condensed  consolidated  balance sheet of Lenawee  Bancorp,
Inc. as of June 30,  2001,  the related  condensed  consolidated  statements  of
income and  comprehensive  income for the quarter and year to date periods ended
June 30, 2001 and 2000 and the condensed  consolidated  statements of cash flows
for the year to date  periods  ended  June 30,  2001 and 2000.  These  financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with generally accepted accounting principles.




                                              Crowe, Chizek and Company LLP

South Bend, Indiana
August 7, 2001


                                     Page 3
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1- FINANCIAL STATEMENTS
<TABLE>
(b) CONDENSED CONSOLIDATED BALANCE SHEETS                                               June 30,
In thousands of dollars                                                                   2001          December 31,
                                                                                       (unaudited)          2000
                                                                                       -----------          ----
<S>                                                                                   <C>              <C>
ASSETS
Cash and due from banks                                                               $      9,005     $      7,842
Federal funds sold                                                                               -            5,150
                                                                                      ------------     ------------
     Total cash and cash equivalents                                                         9,005           12,992

Securities available for sale                                                               26,259           19,321
Federal Home Loan Bank stock, at cost                                                        2,504            2,504
Federal Reserve Bank stock, at cost                                                            480              360

Loans receivable, net of allowance for loan losses of $2,321 at June 30,
     2001 (unaudited) and $2,287 at December 31, 2000                                      215,170          212,317
Loans held for sale                                                                          1,872              803
Premises and equipment, net                                                                  6,594            5,988
Accrued interest receivable                                                                  1,755            1,899
Mortgage servicing rights                                                                    1,725            1,516
Other assets                                                                                 1,656            2,047
                                                                                      ------------     ------------
     Total assets                                                                     $    267,020     $    259,747
                                                                                      ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
     Noninterest bearing                                                              $     44,655     $     37,095
     Interest bearing                                                                      186,464          187,047
                                                                                      ------------     ------------
         Total deposits                                                                    231,119          224,142

Borrowed funds                                                                               6,930            7,936
Accrued interest payable                                                                       915              946
Other liabilities                                                                            1,387            1,256
                                                                                      ------------     ------------
     Total liabilities                                                                     240,351          234,280

Common stock subject to repurchase obligation in ESOP                                        4,619            5,114

Shareholders' Equity
     Common stock and paid-in capital, no par value: 3,000,000 shares
       authorized; shares issued and outstanding: 848,537 - 2001 (unaudited);
       851,551 - 2000                                                                        9,975            9,632
     Retained earnings                                                                      11,877           10,755
     Accumulated other comprehensive income (loss),
       net of tax                                                                              198              (34)
                                                                                      ------------     ------------
         Total shareholders' equity                                                         22,050           20,353
                                                                                      ------------     ------------

              Total liabilities and shareholders' equity                              $    267,020     $    259,747
                                                                                      ============     ============
</TABLE>
          See accompaying notes to consolidated financial statements.

                                     Page 4
<PAGE>
<TABLE>
(c)  CONDENSED CONSOLIDATED
     STATEMENTS OF INCOME AND
     COMPREHENSIVE INCOME (unaudited)                            Three Months Ended                Six Months Ended
In thousands of dollars, except per share data                        June 30,                         June 30,
                                                            ----------------------------     ----------------------------
                                                                2001           2000              2001            2000
                                                                ----           ----              ----            ----
<S>                                                         <C>             <C>              <C>             <C>
Interest and dividend income
     Loans receivable, including fees                       $      4,940    $      4,793     $      9,936    $      9,244
     Taxable securities                                              302             290              547             550
     Nontaxable securities                                            62              50              127             150
     Federal funds sold                                               85               9              178              30
     Other                                                            30               1               40               2
                                                            ------------    ------------     ------------    ------------
         Total interest and dividend income                        5,419           5,143           10,828           9,976

Interest expense
     Deposits                                                      2,129           1,844            4,303           3,589
     Federal Home Loan Bank advances                                  84             232              166             406
     Other                                                            41              54               59              79
                                                            ------------    ------------     ------------    ------------
         Total interest expense                                    2,254           2,130            4,528           4,074
                                                            ------------    ------------     ------------    ------------

Net interest income                                                3,165           3,013            6,300           5,902
     Provision for loan losses                                        44               -              144              30
                                                            ------------    ------------     ------------    ------------

Net interest income after provision
  for loan losses                                                  3,121           3,013            6,156           5,872

Noninterest income
     Service charges and fees                                        372             293              662             561
     Net gains on loan sales                                         579             143              984             203
     Other                                                            62              24              124             122
                                                            ------------    ------------     ------------    ------------
                                                                   1,013             460            1,770             886

Noninterest expense
     Salaries and employee benefits                                1,790           1,306            3,335           2,619
     Occupancy and equipment                                         498             442              975             846
     Other                                                           791             510            1,483           1,034
                                                            ------------    ------------     ------------    ------------
                                                                   3,079           2,258            5,793           4,499
                                                            ------------    ------------     ------------    ------------
Income before income tax                                           1,055           1,215            2,133           2,259
     Income tax expense                                              332             393              677             733
                                                            ------------    ------------     ------------    ------------

Net income                                                  $        723    $        822     $      1,456    $      1,526
                                                            ============    ============     ============    ============

Comprehensive income                                        $        790    $        893     $      1,688    $      1,521
                                                            ============    ============     ============    ============
Basic earnings per share                                    $        .85    $        .96     $       1.71    $       1.79
                                                            ============    ============     ============    ============
Diluted earnings per share                                  $        .84    $        .95     $       1.69    $       1.76
                                                            ============    ============     ============    ============
Dividends per share                                         $        .20    $        .20     $        .40    $        .54
                                                            ============    ============     ============    ============
</TABLE>
          See accompaying notes to consolidated financial statements.

                                     Page 5
<PAGE>
<TABLE>
(d)  CONDENSED CONSOLIDATED STATEMENTS OF
     CASH FLOWS (unaudited)                                                                 Six Months Ended
In thousands of dollars                                                                         June 30,
                                                                                      -----------------------------
                                                                                           2001           2000
                                                                                           ----           ----
<S>                                                                                   <C>              <C>
Cash flows from operating activities
     Net income                                                                       $      1,456     $      1,526
     Adjustments to reconcile net income to
       net cash from operating activities
         Depreciation                                                                          395              356
         Provision for loan losses                                                             144               30
         Net amortization and accretion on securities
           available for sale                                                                   37               32
         Amortization of mortgage servicing rights                                             274              103
         Loans originated for sale                                                         (58,644)         (15,435)
         Proceeds from sale of mortgage loans                                               58,076           15,094
         Net gains on sales of mortgage loans                                                 (984)            (203)
     Net change in:
         Accrued interest receivable                                                           144              (21)
         Other assets                                                                          373              (50)
         Accrued interest payable                                                              (31)              28
         Other liabilities                                                                      29             (275)
                                                                                      ------------     ------------
              Net cash from operating activities                                             1,269            1,185
                                                                                      ------------     ------------

Cash flows from investing activities Proceeds from:
         Maturities, calls and principal payments on
           securities available for sale                                                     3,902            2,630
     Purchases of:
         Federal Reserve Bank stock                                                           (120)               -
         Securities available for sale                                                     (10,525)               -
         Premises and equipment, net                                                        (1,001)            (132)
     Net increase in loans                                                                  (2,997)         (16,403)
                                                                                      ------------     ------------
              Net cash from investing activities                                           (10,741)         (13,905)

Cash flows from financing activities
     Net change in deposits                                                                  6,977           13,549
     Net change in borrowed funds                                                           (1,006)           4,158
     Change in shareholders' equity                                                           (486)            (349)
                                                                                      ------------     ------------
              Net cash from financing activities                                             5,485           17,358
                                                                                      ------------     ------------

Net change in cash and cash equivalents                                                     (3,987)           4,638

Cash and cash equivalents at beginning of period                                            12,992            9,510
                                                                                      ------------     ------------

Cash and cash equivalents at end of period                                            $      9,005     $     14,148
                                                                                      ============     ============
     Cash paid for:
         Interest                                                                     $      4,559     $      4,046
         Income taxes                                                                          662              230

     Transfer from:
         Loans to foreclosed real estate                                                         -              126
</TABLE>
          See accompaying notes to consolidated financial statements.

                                     Page 6
<PAGE>
(e)   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENT (unaudited)

NOTE 1 - PRINCIPLES OF CONSOLIDATION AND NATURE OF OPERATIONS

The unaudited condensed  consolidated  financial statements include the accounts
of Lenawee Bancorp, Inc. (the "Company") and its wholly-owned subsidiaries, Bank
of Lenawee and Bank of Washtenaw  (together  "the  Banks").  The Bank of Lenawee
includes its wholly-owned subsidiaries,  Lenawee Financial Services and Pavilion
Mortgage Company (the "Mortgage Company"). The Mortgage Company began operations
on January 2, 2001 and was formed to  provide a broader  array of  products  for
expanding  market needs.  The Bank of Washtenaw  began  operations on January 8,
2001 and was formed to expand the Company's  market  presence.  All  significant
intercompany balances and transactions have been eliminated in consolidation.

The  Company is a two-bank  holding  company  which  conducts  limited  business
activities. The Banks perform the majority of the Company's business activities.

The Banks provide a full range of banking services to individuals,  agricultural
businesses,  commercial  businesses and light industries  located in its service
area. They maintain diversified loan portfolios,  including loans to individuals
for home mortgages, automobiles and personal expenditures, and loans to business
enterprises for current  operations and expansion.  The Banks offer a variety of
deposit  products,   including  checking,   savings,  money  market,  individual
retirement accounts and certificates of deposit.


NOTE 2 - BASIS OF PRESENTATION

The unaudited condensed  consolidated  financial  statements of Lenawee Bancorp,
Inc. (the "Company")  have been prepared in accordance  with generally  accepted
accounting  principles for interim financial information and the instructions to
Form 10-Q and Rule 10-01 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 ending December 31, 2001. For further  information,  refer
to the consolidated  financial  statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 2000.

                                     Page 7
<PAGE>
NOTE 3 - EARNING PER SHARE
A  reconciliation  of the numerators and  denominators of the basic earnings and
diluted earnings per share  computations for the three and six months ended June
30,  2001 and  2000 is  presented  below  in  thousands,  except  for per  share
information:
<TABLE>
                                                          Three Months Ended                Six Months Ended
                                                               June 30,                         June 30,
                                                     -----------------------------    -----------------------------
                                                          2001            2000             2001            2000
                                                          ----            ----             ----            ----
<S>                                                  <C>              <C>             <C>              <C>
Basic earnings per share
Net income available to common shareholders          $        723     $        822    $      1,456     $      1,526
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    850              854             851              854
                                                     ============     ============    ============     ============
Basic earnings per share                             $        .85     $        .96    $       1.71     $       1.79
                                                     ============     ============    ============     ============

Diluted earnings per share
Net income available to common shareholders          $        723     $        822    $      1,456     $      1,526
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    850              854             851              854
Add:  Dilutive effects of exercise of stock options            10               14              10               13
                                                     ------------     ------------    ------------     ------------
Weighted average common and dilutive
  potential shares outstanding                                860              868             861              867
                                                     ============     ============    ============     ============
Diluted earnings per share                           $        .84     $        .95    $       1.69     $       1.76
                                                     ============     ============    ============     ============
</TABLE>

NOTE 4 - ACCOUNTING FOR STOCK BASED COMPENSATION

The  following  proforma  information  presents net income and basic and diluted
earnings per share had the fair value  method been used to measure  compensation
for stock options granted.  The exercise price of options granted is based on an
independent  appraisal  of the  underlying  stock at the grant  date.  For stock
options  granted  below  market  price,  compensation  expense is based upon the
difference  between the market value and the exercise price at the date of grant
and is recorded  over the vesting  period of the options.  Compensation  expense
actually  recognized for stock options was not significant for the three and six
months ended June 30, 2001 and 2000.
<TABLE>
                                                    Three Months Ended                   Six Months Ended
                                                         June 30,                            June 30,
                                                   2001             2000                2001            2000
                                                   ----             ----                ----            ----
<S>                                            <C>              <C>               <C>               <C>
Net income as reported                         $    723,000     $    822,000      $   1,456,000     $   1,526,000
Proforma net income                                 704,000          809,000          1,425,000         1,499,000
Reported earnings per common share
     Basic                                     $        .85     $        .96      $        1.71     $      1.79
     Diluted                                            .84              .95               1.69            1.76
Proforma earnings per common share
     Basic                                     $        .83     $        .95      $        1.67     $      1.76
     Diluted                                            .82              .93               1.66            1.73
</TABLE>

                                     Page 8
<PAGE>
NOTE 4 - ACCOUNTING FOR STOCK BASED COMPENSATION (Continued)

The weighted average fair value of stock options granted during the three months
ended June 30, 2001 was $20.18 and was estimated  using an option  pricing model
with the following weighted average information as of the grant date:  risk-free
interest rate of 4.88%,  expected  option life of 8 years,  expected stock price
volatility  of 23%  and  expected  dividends  of  1.44%.  In  future  years,  as
additional  options are granted,  the proforma effect on net income and earnings
per share may increase.

Stock options are used to reward  directors and certain  executive  officers and
provide them with an additional equity interest. Options are issued for ten year
periods and vest over five years. As of January 1, 2001, the Company's  original
stock option plan expired, and on April 18, 2001 the shareholders of the Company
approved a new plan  allowing for up to 50,000 stock  options to be granted over
the next five years.  Information  about options available for grant and options
granted follows:
<TABLE>
                                                                                                    Weighted-
                                                                                                     Average
                                                      Available              Options                Exercise
                                                      For Grant            Outstanding               Price
                                                      ---------            -----------               ------
     <S>                                            <C>                     <C>                  <C>
     Balance at January 1, 2001                          21,740                 27,880           $      29.01
         Expiration of non-granted
           options                                      (21,740)                     -                      -
         Options approved                                50,000                      -                      -
         Options issued                                  (7,200)                 7,200                  51.00
                                                   ------------           ------------           ------------
     Balance at June 30, 2001                            42,800                 35,080           $      33.53
                                                   ============           ============           ============
</TABLE>
At June 30, 2001,  options  outstanding had a weighted average remaining life of
7.2  years.  There  were  22,332  options  exercisable  at June 30,  2001 with a
weighted-average exercise price of $27.64.


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

This discussion provides information about the consolidated  financial condition
and results of operations of Lenawee Bancorp, Inc. and its subsidiaries, Bank of
Lenawee and Bank of Washtenaw (the  "Banks"),  as of June 30, 2001 for the three
and six month periods ended June 30, 2001 and 2000.

FINANCIAL CONDITION

Securities
The balance of our  securities  portfolio  increased by $6.9 million  during the
first half of 2001.  Purchases of securities  available for sale totaling  $10.5
million  were  partially  offset by  principal  repayments  on  mortgage  backed
securities and maturities  within the portfolio  totaling $3.9 million.  The net
increase  in  securities  was  primarily  related to the  increase  in  customer
deposits.

                                     Page 9
<PAGE>
Loans
Loan  growth  continued  through  the first  half of 2001.  During the first six
months of 2001,  annualized  loan growth was 3.7%. The mix of the loan portfolio
remains relatively unchanged from prior periods.

In addition to the increase in portfolio  loans,  we  experienced  a significant
increase in the volume of our residential mortgage loans sold into the secondary
market. The significant  decrease in short-term  interest rates during the first
half of 2001 also  caused a  decline  in  mortgage  interest  rates,  increasing
consumer interest in refinancing existing mortgage loans.

Credit Quality
We continue to monitor the asset quality of the loan portfolio  utilizing a loan
review officer who, combined with external loan review specialists, periodically
submits  reports  to the Chief  Lending  Officer  and to the Board of  Directors
regarding the credit quality of the loan  portfolio.  This review is independent
of  the  loan  approval   process.   Also,   management   continues  to  monitor
delinquencies,  nonperforming  assets and potential  problem loans to assess the
continued quality of the our loan portfolio.

Nonperforming  loans are  comprised of (1) loans  accounted  for on a nonaccrual
basis,  (2)  loans  contractually  past  due 90 days or more as to  interest  or
principal  payments (but not included in the nonaccrual  loans in (1) above) and
(3) other  nonperforming  loans (but not  included  in (1) or (2)  above)  which
consist of loan arrangements  under the Business Manager program.  The aggregate
amount of  nonperforming  loans, in thousands of dollars,  is shown in the table
below. Our classifications of nonperforming loans are generally  consistent with
loans identified as impaired.

The  chart  below  shows  the  makeup of our  nonperforming  assets by type,  in
thousands of dollars, as of June 30, 2001 and 2000, and December 31, 2000.
<TABLE>
                                                                        6/30/2001     12/31/2000       6/30/2000
                                                                        ---------     ----------       ---------
     <S>                                                               <C>            <C>             <C>
     Nonaccrual loans                                                  $       145    $       113     $      1,571
     90 days or more past due & still accruing                                 535            523              203
     Other nonperforming loans                                                   -              -            1,069
                                                                       -----------    -----------     ------------
         Total nonperforming loans                                             680            636            2,843
     Other real estate                                                         435            294              377
                                                                       -----------    -----------     ------------
         Total nonperforming assets                                    $     1,115    $       930     $      3,220
                                                                       ===========    ===========     ============

     Nonperforming loans as a percent of total loans                          .31%           .30%            1.33%
     Nonperforming assets as a percent of total loans                         .51%           .43%            1.51%
     Nonperforming loans as a percent of the allowance
       for loan losses                                                       29.3%         27.81%           61.46%

</TABLE>
                                    Page 10
<PAGE>
We  increased  our  provision  for loan  losses for the first six months of 2001
compared  to the same  period in 2000 due to  increases  in loan  volume and net
charge-offs.  The  provision  provides  for  anticipated  losses in our  current
portfolio.

Deposits
Total deposit growth for the first half of 2001 was approximately  $7.0 million.
Annualized  deposit  growth for the half was 6.2%,  compared to 12.5% for all of
2000.  This  increase  is  primarily  the result of a  significant  increase  in
noninterest  bearing  deposits which was partially offset by a small decrease in
interest bearing deposits.  We anticipate moderate deposit growth during 2001 as
a result of continued expansion in new and existing markets.

Liquidity
We  maintained  an  average  funds  sold  position  for the first  half of 2001,
although we generally move in and out of the fed funds market as liquidity needs
vary.  Borrowings  decreased  from  December 31, 2000,  and we  anticipate  that
deposit and loan growth will cause  continued  variation in our short term funds
position.  We have a number of  additional  liquidity  sources  should  the need
arise, and management has no concerns for the liquidity position of the Company.

Capital Resources
The  Company and both Banks were  categorized  as well  capitalized  at June 30,
2001. Actual and required capital levels (in millions) and ratios were:
<TABLE>
                                                                                                Minimum Required
                                                                                                   To Be Well
                                                                     Minimum Required              Capitalized
                                                                        For Capital          Under Prompt Corrective
                                                Actual               Adequacy Purposes         Action Regulations
                                                ------               -----------------         ------------------
                                          Amount     Ratio           Amount      Ratio         Amount     Ratio
                                          ------     -----           ------      -----         ------     -----
<S>                                       <C>        <C>             <C>         <C>           <C>        <C>
Total capital (to risk weighted assets)
   Consolidated                           $  28.7    12.2%           $ 18.8      8.0%          $ 23.5     10.0%
   Bank of Lenawee                           23.9    11.3%             16.9      8.0%            21.1     10.0%
   Bank of Washtenaw                          4.3    17.8%              1.9      8.0%             2.4     10.0%
Tier 1 capital (to risk weighted assets)
   Consolidated                              26.5    11.3%              9.4      4.0%            14.1      6.0%
   Bank of Lenawee                           21.9    10.4%              8.4      4.0%            12.7      6.0%
   Bank of Washtenaw                          4.1    16.9%              1.0      4.0%             1.4      6.0%
Tier 1 capital (to average assets)
   Consolidated                              26.5     9.3%             11.4      4.0%            14.3      5.0%
   Bank of Lenawee                           21.9     8.6%             10.2      4.0%            12.8      5.0%
   Bank of Washtenaw                          4.1    13.5%              1.2      4.0%             1.5      5.0%
</TABLE>

                                    Page 11
<PAGE>
Results of Operations

Net Income

Net income  decreased  4.6%,  basic  earnings per share  decreased from $1.79 to
$1.71 and dividends per share  decreased  from $0.54 to $0.40 when comparing the
results of the six months  ended June 30, 2001 to the same  period of 2000.  Net
income decreased 12%, basic earnings per share decreased from $0.96 to $0.85 and
dividends  per share  remained at $0.20 when  comparing the results of the three
months ended June 30, 2001 to the same period in 2000.

The decrease in net income for the three and six months ended June 30, 2001 when
compared  to the same  periods of 2000,  is  primarily  the result of  increased
noninterest  expenses  partially  offset by increased  net  interest  income and
increased  gains on the sales of loans.  The decrease in dividends per share for
the six months  ended June 30, 2001 was  related to a special  dividend of $0.15
per share that was paid during the three  months  ended March 31, 2000 which was
not paid this year in order to preserve  our capital  base for the  formation of
the Bank of Washtenaw during the first quarter of 2001.

Net Interest Income
The yield on  interest  earning  assets  decreased  for the three and six months
ended June 30, 2001 as compared to the same periods in the prior year  primarily
as a result of the general  decline in interest  rates  during the first half of
2001.  However,  the cost of funds on  interest  bearing  liabilities  increased
slightly  for the six months  ended June 30, 2001 as compared to the same period
during the prior year  primarily as a result of  increasing  time deposit  rates
during 2000 for which 2001 declining  interest rates have not fully impacted due
to the varying contractual maturities of these time deposits. The combination of
higher cost of funds and a lower yield on interest  earning  assets  resulted in
decreases in our interest rate spread and net interest margin.  However, our net
interest  margin  remains  quite  strong,  and we  continue  to  take  steps  to
neutralize some portion of this risk.

The following  table shows the year to date daily average  balances for interest
bearing assets and interest  bearing  liabilities,  interest earned or paid, and
the annualized effective rate or yield, for the six month periods ended June 30,
2001 and 2000.


                                    Page 12
<PAGE>
<TABLE>
Yield Analysis of Consolidated Average Assets and Liabilities
Dollars in thousands                              6/30/2001                                  6/30/2000
                                                  ---------                                  ---------
                                    Average       Interest                     Average       Interest
                                  Outstanding      Earned/       Yield/      Outstanding      Earned/     Yield/
                                    Balance         Paid          Rate         Balance         Paid        Rate
                                    -------         ----          ----         -------         ----        ----
<S>                              <C>             <C>              <C>      <C>            <C>              <C>
Interest earning assets:
Loans (1)                        $   215,639     $     9,936      9.22%    $   198,919    $     9,244      9.29%
Investment securities (2) (3)         24,670             678      5.50%         24,457            700      5.72%
Federal funds sold and other           8,860             214      4.83%          1,204             32      5.32%
                                 -----------     -----------               -----------    -----------
     Total int. earning assets       249,169          10,828      8.70%        224,580          9,976      8.88%

Interest bearing liabilities:
Interest bearing demand
  deposits                       $    54,573     $       712      2.61%    $    52,696    $       883      3.35%
Savings deposits                      23,787             176      1.48%         23,817            179      1.50%
Time deposits                        118,133           3,415      5.78%         91,705          2,527      5.51%
Other borrowings                       7,650             225      5.88%         16,114            485      6.02%
                                 -----------     -----------               -----------    -----------
     Total int. bearing
      liabilities                $   204,143           4,528      4.44%    $   184,332          4,074      4.42%
                                 ===========                               ===========

Net interest income (3)                          $     6,300                              $     5,902
                                                 ===========                              ===========
Net spread (3)                                                    4.26%                                    4.46%
                                                                 ======                                    =====
Net interest margin (3)                                           5.06%                                    5.16%
                                                                 ======                                    =====
Ratio of interest earning assets
 to interest bearing liabilities        1.22                                      1.22
                                  ==========                               ===========
</TABLE>
(1)  Non-accrual  loans  and overdrafts are included in the average  balances of
     loans.
(2)  Includes Federal Home Loan Bank stock.
(3)  Interest income on tax-exempt securities has not been adjusted to a taxable
     equivalent basis.

Noninterest Income
For the three and six  months  ended  June 30,  2001,  noninterest  income  from
banking  products and services  increased  120% and 100% as compared to the same
periods  in  2000.  Declining  interest  rates  during  the  first  half of 2001
increased the originations of residential mortgage loans and,  accordingly,  our
volume of loan  sales.  Increases  in net gains on loan  sales of  $436,000  and
$781,000 for the three and six month  periods end June 30, 2001  compared to the
same  periods  of 2000 were the  primary  factors  contributing  to the  overall
noninterest income growth.

Noninterest Expenses
Noninterest expense also increased over the same periods of 2000, reflecting our
continued growth and expansion.  Total noninterest expense,  excluding provision
for loan losses, for the three and six month periods ended June 30, 2001 was 36%
and 29% above the same  periods for 2000.  Increases  in salaries  and  employee
benefits  for  the  three  and  six  month   periods  ended  June  30,  2001  of
approximately  37% and 27% were the primary factors  contributing to the overall
increase.  These increases,  along with increases in occupancy and equipment and
other  expense,  are mainly  attributable  to the staffing  and  start-up  costs
related to the  formation of the Bank of Washtenaw  and our general  growth.  We
expect  these  costs  to  continue  to rise as we  experience  continued  growth
consistent with our Strategic Plan.

Federal Income Tax
There was no  significant  change in our income tax  position  during the second
quarter of 2001.

                                    Page 13
<PAGE>
Forward-Looking Statements
This  discussion  and analysis of financial  condition and results of operations
and other sections of this Form 10-Q contain forward looking statements that are
based on management's beliefs, assumptions, current expectations,  estimates and
projections  about the financial  services  industry,  the economy and about the
Company itself. Words such as "anticipates", "believes", "estimates", "expects",
"forecasts",  "foresee", "intends", "is likely", "plans", "product", "projects",
variations of such words and similar  expressions  are intended to identify such
forward-looking  statements.  These  statements  are not  guarantees  of  future
performance and involve certain risks,  uncertainties  and assumptions  ("Future
Factors")  that  are  difficult  to  predict  with  regard  to  timing,  extent,
likelihood and degree of occurrence.  Therefore, actual results and outcomes may
materially   differ  from  what  may  be   expressed  or   forecasted   in  such
forward-looking  statements.  Furthermore, we undertake no obligation to update,
amend  or  clarify  forward-looking  statements,  whether  as a  result  of  new
information, future events or otherwise. Future Factors include:

o  changes  in  interest  rates  and  interest  rate  relationships;  demand for
   products and services;
o  the degree of competition by traditional and non-traditional competitors;
o  changes in banking regulations;
o  changes in tax laws;
o  changes in prices, levies and assessments;
o  the impact of technology, governmental and regulatory policy changes;
o  the outcome of pending and future litigation and contingencies;
o  trends in customer behavior as well as their ability to repay loans; and
o  changes in the national and local economies.

These are  representative  of the Future  Factors  that could cause a difference
between an actual outcome and a forward-looking statement.


ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary  market risk exposure is interest rate risk and liquidity  risk. All
of our  transactions  are denominated in U.S.  dollars with no specific  foreign
exchange  exposure.  We have a limited  exposure to commodity  prices related to
agricultural  loans.  Any impacts  that  changes in foreign  exchange  rates and
commodity prices would have on interest rates are assumed to be insignificant.

Interest rate risk (IRR) is the exposure of a banking  organization's  financial
condition to adverse movements in interest rates.  Accepting this risk can be an
important  source of profitability  and stockholder  value;  however,  excessive
levels of IRR could pose a significant  threat to our earnings and capital base.
Accordingly,  effective risk  management that maintains IRR at prudent levels is
essential to our safety and soundness.

Evaluating  a financial  institution's  exposure  to changes in  interest  rates
includes  assessing both the adequacy of the management  process used to control
IRR and the organization's  quantitative  level of exposure.  When assessing the
IRR management process, we seek to ensure that appropriate policies, procedures,
management  information  systems and internal  controls are in place to maintain
IRR  at  prudent  levels  with   consistence  and  continuity.   Evaluating  the
quantitative  level of IRR  exposure  requires  us to assess  the  existing  and
potential  future  effects  of  changes in  interest  rates on our  consolidated
financial condition, including capital adequacy, earnings, liquidity, and, where
appropriate, asset quality.

                                    Page 14
<PAGE>
We have not experienced a material change in our financial  instruments that are
sensitive  to  changes  in  interest  rates  since  December  31,  2000,   which
information  can be  located  in our  report  on Form  10-K for the  year  ended
December 31, 2000.

                                     PART II
                                OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

There are no  material  legal  proceedings  pending  against  the  Company.  Our
wholly-owned  subsidiaries,  Bank of Lenawee and Bank of Washtenaw, are involved
in ordinary  routine  litigation  incident to their business;  however,  no such
proceedings  are  expected  to  result  in any  material  adverse  effect on the
operations  or  earnings  of the Banks.  Neither  the Banks nor the  Company are
involved in any proceedings to which any director,  principal officer, affiliate
thereof,  or person who owns of record or beneficially five percent (5%) or more
of the  outstanding  stock of the Company or the Banks,  or any associate of the
foregoing,  is a party or has a material  interest adverse to the Company or the
Banks.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The  annual  meeting of our  shareholders  was held on April 18,  2001.  At that
meeting,  the following  matters were  submitted to a vote of the  shareholders.
There were 854,156  voting shares  outstanding on March 8, 2001, the record date
for the meeting.  695,934  shares,  or 81% of the shares  eligible to vote, were
voted at the meeting.

The following directors were elected at the meeting, each for a term expiring in
2004, based on the vote stated opposite their names:

                                             Authority           Abstentions and
                               For           Withheld           Broker Non-votes
                               ---           --------           ----------------
     Fred R. Duncan          685,701          10,233                  -0-
     J. Paul Rupert          688,747           7,187                  -0-
     Emory M. Schmidt        671,520          24,414                  -0-


                                    Page 15
<PAGE>
A proposal to approve the Lenawee  Bancorp 2001 Stock Option Plan was adopted at
the meeting, based on the following vote:

                                          Authority              Abstentions and
                 For                      Withheld              Broker Non-votes
                 ---                      --------              ----------------
               609,889                     68,772                    17,273


A proposal to approve the  Corporation's  auditors  for the 2001 fiscal year was
adopted at the meeting based on the following vote:


                                          Authority              Abstentions and
                 For                      Withheld              Broker Non-votes
                 ---                      --------              ----------------
               689,584                      6,350                      -0-


ITEM 5 - OTHER INFORMATION
         None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:

         None.

(b)      Reports on Form 8-K:

         None.


                                    Page 16
<PAGE>
                                   SIGNATURES

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

                                                     LENAWEE BANCORP, INC.
                                                     (Registrant)



Date:      August 13, 2001                           /s/ Patrick K. Gill
                                                     Patrick K. Gill
                                                     President


Date:      August 13, 2001                           /s/ Loren V. Happel
                                                     Loren V. Happel
                                                     Chief Financial Officer






                                    Page 17