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 September 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  November  2,  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.    Condensed Financial Statements (Unaudited)
           (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                       8

Item 3.    Quantitative and Qualitative Disclosures About Market Risk         13


                           PART II -OTHER INFORMATION

Item 1.    Legal Proceedings                                                  14
Item 2.    Changes in Securities and Use of Proceeds                          14
Item 3.    Defaults Upon Senior Securities                                    14
Item 4.    Submission of Matters to a Vote of Security Holders                14
Item 5.    Other Information                                                  14
Item 6.    Exhibits and Reports on Form 8-K                                   14

Signatures                                                                    15



                                     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 September 30, 2001, the related condensed consolidated  statements of
income and  comprehensive  income for the quarter and year to date periods ended
September  30, 2001 and 2000 and the condensed  consolidated  statements of cash
flows for the year to date  periods  ended  September  30, 2001 and 2000.  These
financial statements are the responsibility of the Company's management.

We  conducted  our  reviews 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 reviews, 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
October 30, 2001


                                     Page 3
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1- FINANCIAL STATEMENTS
<TABLE>
(b) CONDENSED CONSOLIDATED BALANCE SHEETS                                             September 30,
In thousands of dollars                                                                   2001        December 31,
                                                                                       (unaudited)        2000
                                                                                       -----------        ----
ASSETS
<S>                                                                                   <C>              <C>
Cash and due from banks                                                               $     11,956     $      7,842
Federal funds sold                                                                               -            5,150
                                                                                      ------------     ------------
     Total cash and cash equivalents                                                        11,956           12,992

Securities available for sale                                                               25,970           19,321
Federal Home Loan Bank stock, at cost                                                        2,504            2,504
Federal Reserve Bank stock, at cost                                                            480              360

Loans, net of allowance for loan losses of $2,278 at September 30,
     2001 (unaudited) and $2,287 at December 31, 2000                                      214,968          212,317
Loans held for sale                                                                          2,288              803
Premises and equipment, net                                                                  6,591            5,988
Accrued interest receivable                                                                  2,386            1,899
Mortgage servicing rights                                                                    1,894            1,516
Other assets                                                                                 1,131            2,047
                                                                                      ------------     ------------
     Total assets                                                                     $    270,168     $    259,747
                                                                                      ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
     Noninterest bearing                                                              $     44,601     $     37,095
     Interest bearing                                                                      188,802          187,047
                                                                                      ------------     ------------
         Total deposits                                                                    233,403          224,142

Borrowed funds                                                                               7,106            7,936
Accrued interest payable                                                                       831              946
Other liabilities                                                                            1,413            1,256
                                                                                      ------------     ------------
     Total liabilities                                                                     242,753          234,280

Common stock subject to repurchase obligation in ESOP                                        4,410            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                                                                       10,184            9,632
     Retained earnings                                                                      12,474           10,755
     Accumulated other comprehensive income (loss),
       net of tax                                                                              347              (34)
                                                                                      ------------     ------------
         Total shareholders' equity                                                         23,005           20,353
                                                                                      ------------     ------------
              Total liabilities and shareholders' equity                              $    270,168     $    259,747
                                                                                      ============     ============
</TABLE>
          See accompanying notes to consolidated financial statements.

                                     Page 4
<PAGE>
<TABLE>
(c)  CONDENSED CONSOLIDATED
     STATEMENTS OF INCOME AND
     COMPREHENSIVE INCOME (unaudited)                            Three Months Ended                Nine Months Ended
In thousands of dollars, except per share data                      September 30,                    September 30,
                                                            ----------------------------     ----------------------------
                                                                2001           2000              2001            2000
                                                                ----           ----              ----            ----
Interest and dividend income
<S>                                                         <C>             <C>              <C>             <C>
     Loans receivable, including fees                       $      4,781    $      4,952     $     14,717    $     14,196
     Taxable securities                                              333             297              880             847
     Nontaxable securities                                            60              42              187             192
     Federal funds sold                                               44              86              222             116
     Other                                                             2               1               42               3
                                                            ------------    ------------     ------------    ------------
         Total interest and dividend income                        5,220           5,378           16,048          15,354

Interest expense
     Deposits                                                      1,842           2,100            6,145           5,689
     Federal Home Loan Bank advances                                  83             170              249             576
     Other                                                            25              68               84             147
                                                            ------------    ------------     ------------    ------------
         Total interest expense                                    1,950           2,338            6,478           6,412
                                                            ------------    ------------     ------------    ------------

Net interest income                                                3,270           3,040            9,570           8,942
     Provision for loan losses                                       119               -              263              30
                                                            ------------    ------------     ------------    ------------

Net interest income after provision
  for loan losses                                                  3,151           3,040            9,307           8,912

Noninterest income
     Service charges and fees                                        339             338            1,001             899
     Net gains on loan sales                                         681             232            1,665             435
     Other                                                            (4)            (18)             120             104
                                                            ------------    ------------     ------------    ------------
                                                                   1,016             552            2,786           1,438

Noninterest expense
     Salaries and employee benefits                                1,813           1,421            5,148           4,040
     Occupancy and equipment                                         542             389            1,517           1,235
     Other                                                           672             591            2,155           1,625
                                                            ------------    ------------     ------------    ------------
                                                                   3,027           2,401            8,820           6,900
                                                            ------------    ------------     ------------    ------------
Income before income tax                                           1,140           1,191            3,273           3,450
     Income tax expense                                              373             387            1,050           1,120
                                                            ------------    ------------     ------------    ------------

Net income                                                  $        767    $        804     $      2,223    $      2,330
                                                            ============    ============     ============    ============

Comprehensive income                                        $        916    $        925     $      2,604    $      2,446
                                                            ============    ============     ============    ============
Basic earnings per share                                    $        .90    $        .94     $       2.61    $       2.73
                                                            ============    ============     ============    ============
Diluted earnings per share                                  $        .89    $        .93     $       2.58    $       2.69
                                                            ============    ============     ============    ============
Dividends per share                                         $        .20    $        .20     $        .60    $        .74
                                                            ============    ============     ============    ============
</TABLE>
          See accompanying notes to consolidated financial statements.

                                     Page 5
<PAGE>
<TABLE>
(d)  CONDENSED CONSOLIDATED STATEMENTS OF
     CASH FLOWS (unaudited)                                                                 Nine Months Ended
In thousands of dollars                                                                       September 30,
                                                                                      -----------------------------
                                                                                           2001           2000
                                                                                           ----           ----
Cash flows from operating activities
<S>                                                                                    <C>              <C>
     Net income                                                                        $     2,223      $     2,330
     Adjustments to reconcile net income to
       net cash from operating activities
         Depreciation                                                                          732              523
         Provision for loan losses                                                             263               30
         Net amortization and accretion on securities
           available for sale                                                                   56               50
         Amortization of mortgage servicing rights                                             480              231
         Loans originated for sale                                                         (89,699)         (32,513)
         Proceeds from sale of mortgage loans                                               89,021           32,411
         Net gains on sales of mortgage loans                                               (1,665)            (435)
     Net change in:
         Accrued interest receivable                                                          (487)            (620)
         Other assets                                                                          898           (1,049)
         Accrued interest payable                                                             (115)             232
         Other liabilities                                                                     (21)             670
                                                                                      ------------     ------------
              Net cash from operating activities                                             1,686            1,860
                                                                                      ------------     ------------
Cash flows from investing activities Proceeds from:
         Maturities, calls and principal payments on
           securities available for sale                                                     4,397            2,745
     Purchases of:
         Federal Reserve Bank stock                                                           (120)               -
         Securities available for sale                                                     (10,525)               -
         Premises and equipment, net                                                        (1,335)            (257)
     Net increase in loans                                                                  (2,914)         (12,336)
                                                                                      ------------     ------------
              Net cash from investing activities                                           (10,497)          (9,848)
                                                                                      ------------     ------------
Cash flows from financing activities
     Net change in deposits                                                                  9,261           21,171
     Net change in borrowed funds                                                             (830)          (4,989)
     Change in shareholders' equity                                                           (656)            (667)
                                                                                      ------------     ------------
              Net cash from financing activities                                             7,775           15,515
                                                                                      ------------     ------------

Net change in cash and cash equivalents                                                     (1,036)           7,527

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

Cash and cash equivalents at end of period                                            $     11,956     $     17,037
                                                                                      ============     ============

     Cash paid for:
         Interest                                                                      $     6,593      $     6,180
         Income taxes                                                                          762              737
</TABLE>
          See accompanying 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 and to reduce the Company's state tax liability. 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  nine-month
period ended  September 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 nine months  ended
September  30, 2001 and 2000 is  presented  below in  thousands,  except for per
share information:
<TABLE>
                                                          Three Months Ended                Nine Months Ended
                                                             September 30,                    September 30,
                                                     -----------------------------    -----------------------------
                                                          2001            2000             2001            2000
                                                          ----            ----             ----            ----
Basic earnings per share
<S>                                                  <C>              <C>             <C>              <C>
Net income available to common shareholders          $        767     $        804    $      2,223     $      2,330
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    848              855             851              854
                                                     ============     ============    ============     ============
Basic earnings per share                             $        .90     $        .94    $       2.61     $       2.73
                                                     ============     ============    ============     ============

Diluted earnings per share
Net income available to common shareholders          $        767     $        804    $      2,223     $      2,330
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    848              855             851              854
Add:  Dilutive effects of exercise of stock options            11               10              10               11
                                                     ------------     ------------    ------------     ------------
Weighted average common and dilutive
  potential shares outstanding                                859              865             861              865
                                                     ============     ============    ============     ============
Diluted earnings per share                           $        .89     $        .93    $       2.58     $       2.69
                                                     ============     ============    ============     ============
</TABLE>

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  ("Banks"),  as of September  30, 2001 and for the
three and nine month periods ended September 30, 2001 and 2000.

FINANCIAL CONDITION
Securities
The balance of our  securities  portfolio  increased by $6.6 million  during the
first  three  quarters  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 $4.4 million. The
net increase in  securities  was  primarily  related to the increase in customer
deposits.

Loans
Loan growth continued through the first three quarters of 2001. During the first
nine  months of 2001,  annualized  loan  growth  was  2.6%.  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
three  quarters of 2001 has also caused a decline in  mortgage  interest  rates,
increasing consumer interest in refinancing existing mortgage loans.

                                     Page 8
<PAGE>
Credit Quality
We continue to monitor the asset quality of the loan portfolio  utilizing a loan
administration  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 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 September 30, 2001 and 2000, and December 31, 2000.
<TABLE>
                                                                        9/30/2001      12/31/2000       9/30/2000
                                                                        ---------      ----------       ---------
<S>                                                                    <C>            <C>              <C>
     Nonaccrual loans                                                  $       248    $        113     $        230
     90 days or more past due & still accruing                                 574             523              368
     Other nonperforming loans                                                   -               -              125
                                                                       -----------    ------------     ------------
         Total nonperforming loans                                             822             636              723
     Other real estate                                                         771             294              393
                                                                       -----------    ------------     ------------
         Total nonperforming assets                                    $     1,593    $        930     $      1,116
                                                                       ===========    ============     ============

     Nonperforming loans as a percent of total loans                          .37%            .30%             .35%
     Nonperforming assets as a percent of total loans                         .73%            .43%             .54%
     Nonperforming loans as a percent of the allowance
       for loan losses                                                      36.08%          27.81%           31.79%
</TABLE>

The following  analysis  summarizes  the change in the allowance for loan losses
for the nine month periods ending September 30:
<TABLE>
                                                                          2001            2000            1999
                                                                          ----            ----            ----
<S>                                                                    <C>            <C>              <C>
     Balance at beginning of period                                    $     2,287    $      4,646     $      2,182
     Net charge-offs                                                          (272)         (2,395)             (83)
     Provision charged to operations                                           263              30              155
                                                                       -----------    ------------     ------------

                                                                       $     2,278    $      2,281     $      2,254
                                                                       ===========    ============     ============
</TABLE>
                                     Page 9
<PAGE>
Subsequent to December 31, 1999, the Company became aware of circumstances which
occurred  in 1999,  involving  loans to a single  borrower in which the Bank had
purchased a  participating  interest from another  financial  institution.  As a
result of these  circumstances,  management  determined a loss of  approximately
$2.3  million was likely to be  incurred  from this  relationship.  Accordingly,
management  recorded  additional  provision  expense of $2.3 million  during the
fourth  quarter of 1999,  and a charge-off  of $2.3 million was recorded  during
September 2000 for this loan relationship.

Provision  for  loan  losses  and net  charge  offs for the  nine  months  ended
September 30, 2001,  were  $263,000 and $272,000  resulting in the allowance for
loan losses remaining  relatively  stable since December 31, 2000. Not including
the effect of the individual loan relationship  discussed above, net charge-offs
for the nine months ended September 30, 2001 increased by approximately $176,000
and $188,000 when  compared to the nine month  periods ended  September 30, 2000
and 1999.  Similarly,  provision  expense  increased  $233,000 and $108,000 when
comparing  the nine months ended  September 30, 2001 to the same periods of 2000
and 1999.  These increases are primarily  related to the general downturn in the
economy.

Deposits
Total deposit growth for the first three quarters of 2001 was approximately $9.3
million.  Annualized  deposit  growth  for the first  three  quarters  was 5.5%,
compared to 12.5% for all of 2000.  This  increase is primarily  the result of a
significant  increase in  noninterest  bearing  deposits and a small increase in
interest  bearing  deposits.  We anticipate  moderate  deposit growth during the
remainder  of  2001 as a  result  of  continued  expansion  in new and  existing
markets.

Liquidity
We  maintained  an average  federal  funds  sold  position  for the first  three
quarters 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 is comfortable with the liquidity position
of the Company.

Capital Resources
The  Company's  total  capital  increased  $2.6  million  from $20.4  million at
December  31, 2000 to $23.0  million at  September  30,  2001.  The  increase in
capital is  primarily  attributable  to net income,  an overall  increase in the
market  value of the  Company's  available  for sale  security  portfolio  and a
decrease  in the  number  of  shares  of  common  stock  subject  to  repurchase
obligations  under the Company's  employee stock ownership plan. These increases
were partially offset by quarterly dividends paid to shareholders.  Based on the
prompt  corrective  action   regulations,   the  Company  and  both  Banks  were
categorized as well capitalized at September 30, 2001.

                                    Page 10
<PAGE>
Results of Operations

Net Income

Net income  decreased  4.6%,  basic  earnings per share  decreased from $0.94 to
$0.90 and  dividends per share  remained at $0.20 when  comparing the results of
the three months ended September 30, 2001 to the same period in 2000. Net income
decreased  4.6%,  basic  earnings  per share  decreased  from $2.73 to $2.61 and
dividends per share  decreased from $0.74 to $0.60 when comparing the results of
the nine months ended September 30, 2001 to the same period of 2000.

The  decrease in net income for the three and nine months  ended  September  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 nine months ended September 30, 2001 was primarily  related to a special
dividend  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 and the cost of funds  decreased  for the
three and nine months ended  September  30, 2001 as compared to the same periods
in the prior year primarily as a result of the general decline in industry rates
during the first three  quarters of 2001.  The cost of funds has  decreased at a
slower rate than the yield on interest  earning assets as a result of increasing
time deposit rates during 2000. The 2001 declining interest rates have not fully
impacted our time  deposits due to the varying  contractual  maturities of these
time  deposits.  This has resulted in decreases in our interest  rate spread and
net interest  margin.  However,  our net interest margin remains quite strong in
relation to our peer banks,  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 nine  month  periods  ended
September 30, 2001 and 2000.

                                    Page 11
<PAGE>
<TABLE>
Yield Analysis of Consolidated Average Assets and Liabilities
Dollars in thousands                              9/30/2001                                 9/30/2000
                                                  ---------                                 ---------
                                    Average       Interest                    Average       Interest
                                  Outstanding      Earned/     Yield/       Outstanding      Earned/     Yield/
                                    Balance         Paid        Rate          Balance         Paid        Rate
                                    -------         ----        ----          -------         ----        ----
Interest earning assets:
<S>                              <C>             <C>              <C>      <C>            <C>              <C>
Loans (1)                        $   217,546     $    14,717      9.02%    $   201,953    $    14,196      9.37%
Investment securities (2) (3)         26,147           1,067      5.44%         24,083          1,039      5.75%
Federal funds sold and other           7,536             264      4.67%          2,523            119      6.29%
                                 -----------     -----------               -----------    -----------
     Total int. earning assets       251,229          16,048      8.52%        228,559         15,354      8.96%

Interest bearing liabilities:
Interest bearing demand
  deposits                       $    53,127     $     1,003      2.52%    $    53,280    $     1,382      3.46%
Savings deposits                      24,194             269      1.48%         23,867            269      1.50%
Time deposits                        116,424           4,873      5.58%         94,795          4,038      5.68%
Other borrowings                       7,330             333      6.06%         16,161            723      5.96%
                                 -----------     -----------               -----------    -----------
     Total int. bearing
            liabilities              201,075           6,478      4.29%        188,103          6,412      4.55%

Net interest income (3)                          $     9,570                              $     8,942
                                                 ===========                              ===========
Net spread (3)                                                    4.23%                                    4.41%
                                                                ======                                    =====
Net interest margin (3)                                           5.08%                                    5.22%
                                                                ======                                    =====
Ratio of interest earning assets to
  interest bearing liabilities          1.25                                      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 nine months ended September 30, 2001,  noninterest income from
banking  products and services has increased 84% and 94% as compared to the same
periods in 2000.  Declining  interest  rates during the first three  quarters of
2001 resulted in increases in the origination of residential mortgage loans and,
correspondingly,  our volume of loan sales. Increases in net gains on loan sales
of $449 and $1,230 for the three and nine month periods ended September 30, 2001
compared to the same periods of 2000 were the primary  factors  contributing  to
the overall noninterest income growth.

Noninterest Expenses
Noninterest expense has 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 nine month periods ended September
30, 2001 was 26% and 28% above the same periods for 2000.  Increases in salaries
and employee  benefits for the three and nine month periods ended  September 30,
2001 of approximately  28% 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 has been no significant change in our income tax position during the third
quarter of 2001.

                                    Page 12
<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", "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 13
<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  is included in our Form 10-K filed 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

No changes in the  securities of the Company  occurred  during the quarter ended
September 30, 2001.

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

There have been no defaults upon senior securities  relevant to the requirements
of this section during the three months ended September 30, 2001.

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

No matters were submitted for vote of security holders during the quarter.

ITEM     5 - OTHER INFORMATION None.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)  Listing of Exhibits (numbered as in Item 601 of Regulation S-K):

     There were no exhibits required for the quarter ended September 30, 2001

(b)  We have filed no reports on Form 8-K during the quarter ended September 30,
     2001.

                                    Page 14
<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.
November 8, 2001


         /S/ Patrick K. Gill
         Patrick K. Gill
         President (Chief Executive Officer)

         /S/ Loren Happel
         Loren Happel
         Treasurer (Chief Financial Officer)







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