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

         [X]    Quarterly Report Pursuant to Section 13 or 15(d)

                     of the Securities Exchange Act of 1934

                For the quarterly period ended September 30, 2000

                                       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  October  27,  2000,  there  were  851,551   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 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                                                  13
Item 2.    Changes in Securities and Use of Proceeds                          13
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                                                                    14
Exhibit Index                                                                 14

                                     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, 2000, the related condensed consolidated  statements of
income and  comprehensive  income for the quarter and year to date periods ended
September  30, 2000 and 1999 and the condensed  consolidated  statements of cash
flows for the year to date  periods  ended  September  30, 2000 and 1999.  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
October 27, 2000

                                     Page 3
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1- FINANCIAL STATEMENTS
<TABLE>
(b) CONDENSED CONSOLIDATED BALANCE SHEETS                                             September 30,
In thousands of dollars                                                                   2000        December 31,
                                                                                       (unaudited)        1999
                                                                                       -----------        ----
<S>                                                                                   <C>              <C>
ASSETS
Cash and due from banks                                                               $     12,705     $      7,310
Federal funds sold                                                                           4,332            2,200
                                                                                      ------------     ------------
     Total cash and cash equivalents                                                        17,037            9,510

Securities available for sale                                                               20,405           23,024
Federal Home Loan Bank stock, at cost                                                        2,504            2,504
Federal Reserve Bank stock, at cost                                                            360              360
Loans receivable, net of allowance for loan losses                                         205,027          192,721
Loans held for sale                                                                            905              759
Premises and equipment, net                                                                  6,255            6,521
Accrued interest receivable                                                                  2,196            1,576
Mortgage servicing asset                                                                     1,495            1,335
Other assets                                                                                 2,583            1,594
                                                                                      ------------     ------------
     Total assets                                                                     $    258,767     $    239,904
                                                                                      ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
     Noninterest bearing                                                              $     37,846     $     36,687
     Interest bearing                                                                      182,531          162,519
                                                                                      ------------     ------------
         Total deposits                                                                    220,377          199,206

Borrowed funds                                                                              11,188           16,177
Accrued interest payable                                                                       876              644
Other liabilities                                                                            1,772            1,102
                                                                                      ------------     ------------
     Total liabilities                                                                     234,213          217,129

Common stock subject to repurchase obligation in ESOP                                        4,175            4,326

Shareholders' Equity
     Common stock and paid-in capital, no par value                                         10,547           10,430
     Retained earnings                                                                      10,050            8,353
     Accumulated other comprehensive income (loss),
       net of tax                                                                             (218)            (334)
                                                                                      ------------     ------------
         Total shareholders' equity                                                         20,379           18,449
                                                                                      ------------     ------------

              Total liabilities and shareholders' equity                              $    258,767     $    239,904
                                                                                      ============     ============
</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,
                                                            ----------------------------         ---------------------
                                                                2000           1999              2000            1999
                                                                ----           ----              ----            ----
<S>                                                         <C>             <C>              <C>             <C>
Interest and dividend income
     Loans receivable, including fees                       $      4,952    $      4,213     $     14,196    $     11,573
     Taxable securities                                              297             328              847           1,193
     Nontaxable securities                                            42              39              192             190
     Federal funds sold                                               86              27              116             100
     Other                                                             1               1                3              24
                                                            ------------    ------------     ------------    ------------
         Total interest and dividend income                        5,378           4,608           15,354          13,080

Interest expense
     Deposits                                                      2,100           1,402            5,689           4,129
     Federal Home Loan Bank advances                                 170             129              576             315
     Other                                                            68              42              147             111
                                                            ------------    ------------     ------------    ------------
         Total interest expense                                    2,338           1,573            6,412           4,555
                                                            ------------    ------------     ------------    ------------

Net interest income                                                3,040           3,035            8,942           8,525
     Provision for loan losses                                         -             125               30             155
                                                            ------------    ------------     ------------    ------------
Net interest income after provision
  for loan losses                                                  3,040           2,910            8,912           8,370

Noninterest income
     Service charges and fees                                        338             286              899             751
     Net gains on loan sales                                         232             222              435             815
     Loan servicing fees, net of amortization                        (24)             21               75              73
     Other                                                             6              15               29              48
                                                            ------------    ------------     ------------    ------------
                                                                     552             544            1,438           1,687
Noninterest expense
     Salaries and employee benefits                                1,421           1,351            4,040           4,092
     Occupancy and equipment                                         389             412            1,235           1,245
     Other                                                           591             423            1,625           1,316
                                                            ------------    ------------     ------------    ------------
                                                                   2,401           2,186            6,900           6,653
                                                            ------------    ------------     ------------    ------------
Income before income tax                                           1,191           1,268            3,450           3,404
     Income tax expense                                              387             424            1,120           1,111
                                                            ------------    ------------     ------------    ------------

Net income                                                  $        804    $        844     $      2,330    $      2,293
                                                            ============    ============     ============    ============

Comprehensive income                                        $        925    $        807     $      2,446    $      1,829
                                                            ============    ============     ============    ============
Basic earnings per share                                    $        .94    $        .99     $       2.73    $       2.69
                                                            ============    ============     ============    ============
Diluted earnings per share                                  $        .93    $        .99     $       2.69    $       2.68
                                                            ============    ============     ============    ============
Dividends per share                                         $        .20    $        .17     $        .74    $        .56
                                                            ============    ============     ============    ============
</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,
                                                                                         ---------------------
                                                                                           2000           1999
                                                                                           ----           ----
<S>                                                                                   <C>              <C>
Cash flows from operating activities
         Net income                                                                   $      2,330     $      2,293
     Adjustments to reconcile net income to
       net cash from operating activities
         Depreciation                                                                          523              533
         Provision for loan losses                                                              30              155
         Loss on sale of securities available for sale                                           -                5
         Net amortization and accretion on securities
           available for sale                                                                   50               51
         Amortization of mortgage servicing rights                                             231              195
         Loans originated for sale                                                         (32,513)         (36,325)
         Proceeds from sale of mortgage loans                                               32,411           39,032
         Net gains on sales of mortgage loans                                                 (435)            (815)
     Net change in:
         Deferred loan origination fees                                                        (32)             (16)
         Accrued interest receivable                                                          (620)            (402)
         Other assets                                                                       (1,175)             179
         Accrued interest payable                                                              232               (5)
         Other liabilities                                                                     670              257
                                                                                      ------------     ------------
              Net cash from operating activities                                             1,702            5,137
                                                                                      ------------     ------------

Cash flows from investing activities Proceeds from:
         Maturities, calls and principal payments on
           securities available for sale                                                     2,745            8,956
         Sales of securities available for sale                                                  -            7,675
     Purchases of:
         Securities available for sale                                                           -          (29,142)
         Premises and equipment, net                                                          (257)            (465)
     Net increase in loans                                                                 (12,178)         (29,142)
                                                                                      ------------     ------------
              Net cash from investing activities                                            (9,690)         (23,421)
                                                                                      ------------     ------------
Cash flows from financing activities
     Net change in deposits                                                                 21,171            2,508
     Net change in borrowed funds                                                           (4,989)           6,967
     Change in shareholders' equity                                                           (667)            (414)
                                                                                      ------------     ------------
              Net cash from financing activities                                            15,515            9,061
                                                                                      ------------     ------------
Net change in cash and cash equivalents                                                      7,527           (9,223)

Cash and cash equivalents at beginning of period                                             9,510           18,702
                                                                                      ------------     ------------

Cash and cash equivalents at end of period                                            $     17,037     $      9,479
                                                                                      ============     ============
     Cash paid for:
         Interest                                                                     $      6,180     $      4,560
         Income taxes                                                                          737            1,050

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

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

NOTE 1 - 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 ending  September 30, 2000 are not necessarily  indicative of the results
that  may be  expected  for the year  ending  December  31,  2000.  For  further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto  included in the  Company's  Annual Report on Form 10 for the year ended
December 31, 1999.

In June 1998,  the  Financial  Accounting  Standards  Board  (the  FASB)  issued
Statement No. 133 Accounting for Derivative  Instruments and Hedging  Activities
(SFAS 133),  subsequently  amended by SFAS No. 137 and 138, which the Company is
required to adopt  effective  January 1, 2001. SFAS 133 will require the company
to record  all  derivatives  on the  balance  sheet at fair  value.  Changes  in
derivative  fair values will either be  recognized in earnings as offsets to the
changes in fair value of related hedged assets, liabilities and firm commitments
or, for forecasted  transactions,  deferred and recorded as a component of other
stockholders'  equity until the hedged  transactions occur and are recognized in
earnings. The ineffective portion of a hedging derivative's change in fair value
will be  immediately  recognized  in  earnings.  The  impact  of SFAS 133 on the
company's  financial  statements will depend on a variety of factors,  including
future interpretative guidance from the FASB, the future level of forecasted and
actual  foreign  currency  transactions,  the  extent of the  Company's  hedging
activities,  the types of hedging instruments used and the effectiveness of such
instruments.  However,  the Company does not believe the effect of adopting SFAS
133 will be material to its financial position.

NOTE 2 - LOAN SERVICING
Mortgage  loans  serviced  for  others  are  not  included  in the  accompanying
consolidated  statements.  The  unpaid  principal  balances  of  mortgage  loans
serviced for others was  approximately  $207,426,000 and $172,359,000 at the end
of September 2000 and 1999.  Mortgage  servicing rights activity in thousands of
dollars for the nine months ended September 30, 2000 and 1999 follows:
<TABLE>
      Unamortized cost of mortgage servicing rights                                2000             1999
      ---------------------------------------------                                ----             ----
      <S>                                                                       <C>              <C>
      Balance at January 1                                                      $      1,335     $     1,098
      Amount capitalized year to date                                                    391             403
      Amount amortized year to date                                                     (231)           (195)
                                                                                ------------     -----------
      Balance at period end                                                     $      1,495     $     1,306
                                                                                ============     ===========
</TABLE>
The valuation  allowance  relative to mortgage servicing rights was $214,000 and
$230,000 at period end 2000 and 1999, respectively.

                                     Page 7
<PAGE>
NOTE 3 - EARNINGS 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, 2000 and 1999 is  presented  below in  thousands,  except for per
share information:
<TABLE>
                                                          Three Months Ended                Nine Months Ended
                                                             September 30,                    September 30,
                                                     -----------------------------      -----------------------
                                                          2000            1999             2000            1999
                                                          ----            ----             ----            ----
<S>                                                  <C>              <C>             <C>              <C>
Basic earnings per share
Net income available to common shareholders          $        804     $        844    $      2,330     $      2,293
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    855              852             854              853
                                                     ============     ============    ============     ============
Basic earnings per share                             $        .94     $        .99    $       2.73     $       2.69
                                                     ============     ============    ============     ============

Diluted earnings per share
Net income available to common shareholders          $        804     $        844    $      2,330     $      2,293
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    855              852             854              853
Add:  Dilutive effects of exercise of stock options            10                5              11                4
                                                     ------------     ------------    ------------     ------------
Weighted average common and dilutive
  potential shares outstanding                                865              857             865              857
                                                     ============     ============    ============     ============
Diluted earnings per share                           $        .93     $        .99    $       2.69     $       2.68
                                                     ============     ============    ============     ============
</TABLE>



                                     Page 8
<PAGE>
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 subsidiary,  Bank of
Lenawee ("Bank"),  as of September 30, 2000 for the three and nine month periods
ending September 30, 2000 and 1999.

FINANCIAL CONDITION

Securities
Investment  securities  decreased to $20.4  million at  September  30, 2000 from
$23.0 million at December 31, 1999. With no purchases of securities during 2000,
this decline was solely the result of principal  repayments  on mortgage  backed
securities and maturities  within the portfolio.  No securities were sold during
the nine months ended  September 30, 2000. The mix of the  securities  portfolio
has remained relatively unchanged from December 31, 1999.

Loans
Net loans  receivable  increased  6% from $192.7 at December  31, 1999 to $205.0
million at September 30, 2000.  This growth was  primarily in  commercial  loans
with consumer and mortgage loans remaining relatively unchanged.

Credit Quality
The  Company  continues  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 Company's loan portfolio.


                                     Page 9
<PAGE>
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.  The  Company's  classifications  of  nonperforming  loans are  generally
consistent with loans identified as impaired.

The chart below shows the makeup of the Company's  nonperforming assets by type,
in thousands of dollars,  as of  September  30, 2000 and 1999,  and December 31,
1999.
<TABLE>
                                                                        9/30/2000      12/31/1999       9/30/1999
                                                                        ---------      ----------       ---------
     <S>                                                               <C>            <C>              <C>
     Nonaccrual loans                                                  $       230    $      1,571     $         71
     90 days or more past due & still accruing                                 368             275              146
     Other nonperforming loans                                                 125           1,500                -
                                                                       -----------    ------------     ------------
         Total nonperforming loans                                             723           3,346              217
     Other real estate                                                         393             255              377
                                                                       -----------    ------------     ------------
         Total nonperforming assets                                    $     1,116    $      3,601     $        594
                                                                       ===========    ============     ============

     Nonperforming loans as a percent of gross loans                         0.35%           1.70%            0.12%
     Nonperforming assets as a percent of gross loans                         .54%           1.82%            0.32%
     Nonperforming loans as a percent of the allowance
       for loan losses                                                      31.79%          72.02%            9.63%
</TABLE>
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  concluded  that a loss was probable
and,  accordingly,  recorded  an  additional  provision  for loan losses of $2.3
million for 1999 on loans  outstanding of  approximately  $3 million.  This loan
relationship  is reflected in the above table in the  categories  of  nonaccrual
loans and other  nonperforming  loans at December 31, 1999.  In addition,  these
loans were  considered  to be impaired at December  31, 1999.  During  September
2000,  a charge-off  of $2.3  million was  recorded  for this loan  relationship
reducing the outstanding balance to $287,000 at September 30, 2000.

The  provision  for loan  losses for the first nine  months of 2000 was  $30,000
compared to $155,000  for the same period in 1999.  The  provision  provides for
currently anticipated losses in the loan portfolio. An analysis of the allowance
for loan losses,  in thousands of dollars,  for the nine months ended  September
30, 2000 and 1999 follows:
<TABLE>
                                                                                     2000             1999
                                                                                     ----             ----
     <S>                                                                          <C>             <C>
     Balance at beginning of period                                               $      4,646    $      2,182
     Loans charged off                                                                  (2,451)           (112)
     Recoveries credited to allowance                                                       56              29
     Provision charged to operations                                                        30             155
                                                                                  ------------    ------------
     Balance at end of period                                                     $      2,281    $      2,254
                                                                                  ============    ============
</TABLE>
                                    Page 10
<PAGE>
Deposits
Total  deposits at September 20, 2000 were $220.4 million at September 30, 2000,
an increase of 11% from  December 31,  1999.  The majority of this growth was in
certificates of deposit.  Management anticipates deposit growth to continue at a
moderate rate due to continued expansion in new and existing markets.

Liquidity
The Bank  maintained an average funds  borrowed  position for the nine months of
2000,  although  generally  the Bank moves in and out of the fed funds market as
liquidity  needs vary.  Borrowings  decreased  from December 31, 1999 as deposit
growth exceeded loan growth,  and management  anticipates  that deposit and loan
growth will cause  continued  variation in the short-term  funds position of the
Bank. The Company has 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  capital  ratios  of the Bank  exceed  the  regulatory  guidelines  for well
capitalized  institutions.  The following  table shows the Bank's capital ratios
and ratio calculations at September 30, 2000 and 1999 and December 31, 1999.
<TABLE>
                                                  Regulatory Guidelines                 Bank of Lenawee
                                                  ---------------------                 ---------------
                                               Adequate        Well         9/30/2000     12/31/1999      9/30/1999
                                               --------        ----         ---------     -----------     ---------
     <S>                                         <C>           <C>            <C>            <C>             <C>
     Total risk adjusted capital ratio            8%            10%           11.7%          12.1%           12.5%
     Tier 1 risk adjusted capital ratio           4%             6%           10.7%          10.8%           11.4%
     Tier 1 capital to average assets             4%             5%            9.1%           9.3%           10.1%
</TABLE>

Results of Operations

Net Interest Income
Net  interest  margin  and  spread  both  decreased  for the nine  months  ended
September 30, 2000  compared to the same period in 1999.  This  reduction,  when
compared  to  1999,  is  primarily  a result  of the  increasing  interest  rate
environment.  The  Company's  funding costs have risen at a faster pace than the
yield on earning assets. However, the Company's margin remains quite strong, and
management continues to take steps to neutralize some portion of this risk.

The following  table shows the year to date daily average  Consolidated  Balance
Sheet,  interest earned or paid, and the annualized effective rate or yield, for
the nine month periods ended September 30, 2000 and 1999.

                                    Page 11
<PAGE>
<TABLE>
Yield Analysis of Consolidated Average Assets and Liabilities
Dollars in thousands                                 9/30/2000                                 9/30/1999
                                                     ---------                                 ---------
                                       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)                           $   201,953     $    14,196      9.37%    $   165,696    $    11,573      9.31%
Securities available for sale (2)        24,083           1,039      5.75%         32,499          1,383      5.67%
Federal funds sold and other              2,523             119      6.29%          2,702            124      6.12%
                                    -----------     -----------               -----------    -----------
     Total int. earning assets          228,559          15,354      8.96%        200,897         13,080      8.68%
Noninterest-earning assets:
Cash and due from financial
   institutions                           8,513                                     8,259
Premises and equipment, net               6,369                                     6,587
Other assets                              4,271                                     3,650
                                    -----------                               -----------
     Total Assets                   $   247,712                               $   219,393
                                    ===========                               ===========

Interest bearing liabilities:
Interest bearing demand
  deposits                          $    53,280     $     1,382      3.46%    $    47,804    $       953      2.66%
Savings deposits                         23,867             269      1.50%         24,502            289      1.57%
Time deposits                            94,795           4,038      5.68%         77,655          2,887      4.96%
Repurchase agreements and
   other borrowings                       3,916             147      5.01%          3,967            111      3.73%
FHLB advances                            12,245             576      6.27%          7,191            315      5.84%
                                    -----------     -----------               -----------    -----------
     Total int. bearing liabilities     188,103           6,412      4.55%        161,119          4,555      3.77%
Noninterest-bearing liabilities:
Demand deposits                          35,097                                    33,845
Other liabilities                           711                                     1,398
                                    -----------                               -----------
     Total liabilities                  223,911                                   196,362
Shareholders' equity                     23,801                                    23,031
                                    -----------                               -----------
Total liabilities and
  shareholders' equity              $   247,712                               $   219,393
                                    ===========                               ===========
Net interest income (2)                             $     8,942                              $     8,525
                                                    ===========                              ===========
Net spread (2)                                                       4.41%                                    4.91%
                                                                    =====                                    =====
Net yield on interest
 earning assets (2)                                                  5.22%                                    5.66%
                                                                    =====                                    =====
Ratio of interest earning assets
  to interest bearing liabilities          1.22                                      1.25
                                    ===========                               ===========
</TABLE>
(1)  Non-accrual  loans and  overdrafts  are included in the average balances of
     loans.
(2)  Interest income on tax-exempt securities has not been adjusted to a taxable
     equivalent basis.

                                    Page 12
<PAGE>
Noninterest Income
For the first nine months of 2000,  noninterest income from banking products and
services  has  declined  15% as  compared  to the same  period  in 1999.  Rising
interest rates have slowed the  originations of residential  mortgage loans and,
accordingly, the Company's volume of loan sales. A decrease in net gains on loan
sales of $380,000, or 47%, contributed  significantly to the overall noninterest
income  decline.  This  decrease was  partially  offset by an increase of 20% in
services charges and fees due to deposit growth. However, noninterest income for
the three months ended  September 30, 2000 has increased over the same period in
1999 primarily due to increases in service charges and fees.

Noninterest Expenses
Noninterest   expense  has  continued  to  increase  over  prior  year  periods,
reflecting  continued  growth  and  expansion  of the  Bank.  Total  noninterest
expense,  excluding provision for loan losses, for the first nine months of 2000
increased  4% from the same  period  in 1999.  Salaries  and  employee  benefits
decreased 1% as compared to the nine months ended  September 30, 1999.  This was
mainly  attributable  to a decreased level of employee  incentive  compensation.
When compared to the nine months ended September 30, 1999, the category of other
noninterest  expense  increased  23% in 2000.  This increase is due to increased
costs related to ATM service charges,  insurance,  donations, and mobile banking
security.  Management  expects  these  costs  to  continue  rising  as the  Bank
experiences continued growth.

Federal Income Tax
There has been no  significant  change in the income tax position of the Company
during the third quarter of 2000.

Forward-Looking Statements
Statements  contained  in  Management's  Discussion  and  Analysis of  Financial
Condition and Results of Operations include 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 "anticipate,"  "believe," "determine," "estimate,"
"expect,"  forecast,   "intend,"  "is  likely,"  "plan,"  "project,"  "opinion,"
variations of such terms, and similar  expressions are intended to identify such
forward-looking  statements.  The presentations and discussions of the provision
and  allowance  for loan  losses,  and  determinations  as to the need for other
allowances presented in this report are inherently forward-looking statements in
that they  involve  judgements  and  statements  of belief as to the  outcome of
future events.  These  statements are not guarantees of future  performance  and
involve  certain risks,  uncertainties,  and  assumptions  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.  Internal  and
external  factors that may cause such a difference  include  changes in interest
rates and interest rate  relationships;  demand for products and  services;  the
degree of competition by traditional and non-traditional competitors; changes in
banking laws and regulations;  changes in tax laws;  changes in prices,  levies,
and  assessments;  the  impact  of  technological  advances;   governmental  and
regulatory  policy  changes;  the outcomes of pending and future  litigation and
contingencies;  trends in customer behavior and customer ability to repay loans;
software  failure,  errors or  miscalculations;  the  ability of the  Company to
locate and correct all data sensitive computer code; and the vicissitudes of the
national  economy.  The Company  undertakes no  obligation  to update,  amend or
clarify  forward-looking  statements,  whether  as a result of new  information,
future events, or otherwise.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's  primary  market risk exposure is interest rate risk and liquidity
risk. All of the Company's  transactions are denominated in U.S. dollars with no
specific foreign exchange exposure.

                                    Page 13
<PAGE>
The Company has 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 the  Company's  earnings  and
capital base.  Accordingly,  effective  risk  management  that  maintains IRR at
prudent levels is essential to the Company's 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,  the Company seeks 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 the Company to assess the existing
and potential  future effects of changes in interest  rates on its  consolidated
financial condition, including capital adequacy, earnings, liquidity, and, where
appropriate, asset quality.

The Company has not experienced a material  change in its financial  instruments
that are sensitive to changes in interest rates since  December 31, 1999,  which
information can be located in the Company's Form 10 Registration Statement.

                                     PART II
                                OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

No litigation is pending against either the Company or the Bank of Lenawee which
is  expected  to result in any  material  adverse  effect on the  operations  or
earnings of either of them.  Neither the Bank nor the Company is 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 Bank, or any associate of the foregoing,
is a party or has a material interest adverse to the Company or the Bank.

ITEM 2 - CHANGES IN SECURITIES

No changes in the  securities of the Company  occurred  during the quarter ended
September 30, 2000.

                                    Page 14
<PAGE>
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, 2000.

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

         None.

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):

         27.      Financial Data Schedule.

(b)      The Company has filed no reports on Form 8-K during the quarter ended
         September 30, 2000.

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 13, 2000


       /S/ Patrick K. Gill                              /S/ Loren Happel
       Patrick K. Gill                                  Loren Happel
       President                                        Chief Financial Officer


EXHIBIT INDEX

     EXHIBIT NO.                        DESCRIPTION
     ----------                         -----------
        27                         Financial Data Schedule

                                    Page 15