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 June 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 August 8, 2000, there were 854,913  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 June 30,  2000,  the related  condensed  consolidated  statements  of
income and  comprehensive  income for the quarter and year to date periods ended
June 30, 2000 and 1999 and the condensed  consolidated  statements of cash flows
for the year to date  periods  ended  June 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.



                                               /s/ Crowe, Chizek and Company LLP
                                                   Crowe, Chizek and Company LLP

South Bend, Indiana
August 8, 2000


                                     Page 3
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1- FINANCIAL STATEMENTS
<TABLE>
(b) CONDENSED CONSOLIDATED BALANCE SHEETS                                               June 30,
In thousands of dollars                                                                   2000         December 31,
                                                                                       (unaudited)         1999
                                                                                       -----------         ----
ASSETS
<S>                                                                                    <C>              <C>
Cash and due from banks                                                                $    10,598      $     7,310
Federal funds sold                                                                           3,550            2,200
                                                                                       -----------      -----------
     Total cash and cash equivalents                                                        14,148            9,510

Securities available for sale                                                               20,353           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                                         208,968          192,721
Loans held for sale                                                                          1,001              759
Premises and equipment, net                                                                  6,297            6,521
Accrued interest receivable                                                                  1,597            1,576
Mortgage servicing asset                                                                     1,534            1,335
Other assets                                                                                 1,774            1,594
                                                                                       -----------      -----------
     Total assets                                                                      $   258,536      $   239,904
                                                                                       ===========      ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
     Noninterest bearing                                                               $    38,402      $    36,687
     Interest bearing                                                                      174,353          162,519
                                                                                       -----------      -----------
         Total deposits                                                                    212,755          199,206

Borrowed funds                                                                              20,335           16,177
Accrued interest payable                                                                       672              644
Other liabilities                                                                              827            1,102
                                                                                       -----------      -----------
     Total liabilities                                                                     234,589          217,129

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

Shareholders' Equity
     Common stock and paid-in capital, no par value                                         10,544           10,430
     Retained earnings                                                                       9,416            8,353
     Accumulated other comprehensive income (loss),
       net of tax                                                                             (339)            (334)
                                                                                       -----------      -----------
         Total shareholders' equity                                                         19,621           18,449
                                                                                       -----------      -----------
              Total liabilities and shareholders' equity                               $   258,536      $   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                Six Months Ended
In thousands of dollars, except per share data                        June 30,                         June 30,
                                                            ------------------------------   -----------------------------
                                                                2000           1999              2000            1999
                                                                ----           ----              ----            ----
<S>                                                         <C>             <C>              <C>             <C>
Interest and dividend income
     Loans receivable, including fees                       $      4,793    $      3,804     $      9,244    $      7,360
     Taxable securities                                              290             428              550             865
     Nontaxable securities                                            50              75              150             151
     Federal funds sold                                                9              14               30              73
     Other                                                             1               2                2              23
                                                            ------------    ------------     ------------    ------------
         Total interest and dividend income                        5,143           4,323            9,976           8,472

Interest expense
     Deposits                                                      1,844           1,337            3,589           2,727
     Federal Home Loan Bank advances                                 232              93              406             186
     Other                                                            54              41               79              69
                                                            ------------    ------------     ------------    ------------
         Total interest expense                                    2,130           1,471            4,074           2,982
                                                            ------------    ------------     ------------    ------------

Net interest income                                                3,013           2,852            5,902           5,490
     Provision for loan losses                                         -              30               30              30
                                                            ------------    ------------     ------------    ------------
Net interest income after provision
  for loan losses                                                  3,013           2,822            5,872           5,460

Noninterest income
     Service charges and fees                                        293             246              561             465
     Net gains on loan sales                                         143             294              203             593
     Loan servicing fees, net of amortization                         20              36               99              52
     Other                                                             4              13               23              33
                                                            ------------    ------------     ------------    ------------
                                                                     460             589              886           1,143
Noninterest expense
     Salaries and employee benefits                                1,306           1,378            2,619           2,741
     Occupancy and equipment                                         442             414              846             833
     Other                                                           510             445            1,034             893
                                                            ------------    ------------     ------------    ------------
                                                                   2,258           2,237            4,499           4,467
                                                            ------------    ------------     ------------    ------------
Income before income tax                                           1,215           1,174            2,259           2,136
     Income tax expense                                              393             381              733             687
                                                            ------------    ------------     ------------    ------------

Net income                                                  $        822    $        793     $      1,526    $      1,449
                                                            ============    ============     ============    ============

Comprehensive income                                        $        893    $        521     $      1,521    $      1,022
                                                            ============    ============     ============    ============
Basic earnings per share                                    $        .96    $        .93     $       1.79    $       1.70
                                                            ============    ============     ============    ============
Diluted earnings per share                                  $        .95    $        .93     $       1.76    $       1.70
                                                            ============    ============     ============    ============
</TABLE>
          See accompanying notes to consolidated financial statements.

                                     Page 5
<PAGE>
<TABLE>
(d)  CONDENSED CONSOLIDATED STATEMENTS OF
     CASH FLOWS (unaudited)                                                                  Six Months Ended
In thousands of dollars                                                                          June 30,
                                                                                       ----------------------------
                                                                                           2000           1999
                                                                                           ----           ----
<S>                                                                                    <C>              <C>
Cash flows from operating activities
     Net income                                                                        $     1,526      $     1,449
     Adjustments to reconcile net income to
       net cash from operating activities
         Depreciation                                                                          356              363
         Provision for loan losses                                                              30               30
         Loss on sale of securities available for sale                                           -                5
         Net amortization and accretion on securities
           available for sale                                                                   32               85
         Amortization of mortgage servicing rights                                             103              124
         Loans originated for sale                                                         (15,435)         (27,227)
         Proceeds from sale of mortgage loans                                               15,094           29,055
         Net gains on sales of mortgage loans                                                 (203)            (593)
     Net change in:
         Deferred loan origination fees                                                        (11)              (2)
         Accrued interest receivable                                                           (21)             201
         Other assets                                                                          (50)             443
         Accrued interest payable                                                               28              (57)
         Other liabilities                                                                    (275)            (101)
                                                                                       -----------     ------------
              Net cash from operating activities                                             1,174            3,775
                                                                                       -----------     ------------
Cash flows from investing activities Proceeds from:
         Maturities, calls and principal payments on
           securities available for sale                                                     2,630            8,570
         Sales of securities available for sale                                                  -            7,675
     Purchases of:
         Securities available for sale                                                           -          (10,445)
         Premises and equipment, net                                                          (132)            (397)
     Net increase in loans                                                                 (16,392)         (13,693)
                                                                                       -----------     ------------
              Net cash from investing activities                                           (13,894)          (8,290)
                                                                                       -----------     ------------
Cash flows from financing activities
     Net change in deposits                                                                 13,549           (3,152)
     Net change in borrowed funds                                                            4,158              692
     Change in shareholders' equity                                                           (349)            (276)
                                                                                       -----------     ------------
              Net cash from financing activities                                            17,358           (2,736)
                                                                                       -----------     ------------

Net change in cash and cash equivalents                                                      4,638           (7,251)

Cash and cash equivalents at beginning of period                                             9,510           18,702
                                                                                       -----------     ------------
Cash and cash equivalents at end of period                                             $    14,148     $     11,451
                                                                                       ===========     ============
     Cash paid for:
         Interest                                                                      $     4,046      $     3,039
         Income taxes                                                                          230              625

     Transfer from:
         Loans to foreclosed real estate                                                       126              161
</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 six month period
ended June 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.

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  $200,102,000 and $163,144,000 at the end
of June 2000 and 1999.  Mortgage  servicing  rights  activity  in  thousands  of
dollars for the six months ended June 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                                                    302             279
      Amount amortized year to date                                                     (103)           (124)
                                                                                ------------     -----------
      Balance at period end                                                     $      1,534     $     1,253
                                                                                ============     ===========
</TABLE>

The valuation  allowance  relative to mortgage servicing rights was $219,000 and
$221,000 at period end 2000 and 1999, respectively.

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 six months ended June
30,  2000 and  1999 is  presented  below  in  thousands,  except  for per  share
information:
<TABLE>
                                                          Three Months Ended                Six Months Ended
                                                               June 30,                         June 30,
                                                     -----------------------------    -----------------------------
                                                          2000            1999             2000            1999
                                                          ----            ----             ----            ----
<S>                                                  <C>              <C>             <C>             <C>
Basic earnings per share
Net income available to common shareholders          $        822     $        793    $      1,526     $      1,449
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    854              853             854              853
                                                     ============     ============    ============     ============
Basic earnings per share                             $        .96     $        .93    $       1.79     $       1.70
                                                     ============     ============    ============     ============
Diluted earnings per share
Net income available to common shareholders          $        822     $        793    $      1,526     $      1,449
                                                     ============     ============    ============     ============
Weighted average common shares outstanding                    854              853             854              853
Add:  Dilutive effects of exercise of stock options            14                2              13                1
                                                     ------------     ------------    ------------     ------------
Weighted average common and dilutive
  potential shares outstanding                                868              855             867              854
                                                     ============     ============    ============     ============
Diluted earnings per share                           $        .95     $        .93    $       1.76     $       1.70
                                                     ============     ============    ============     ============
</TABLE>
                                     Page 7
<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 June 30, 2000 for the three and six month periods  ended
June 30, 2000 and 1999.

FINANCIAL CONDITION

Securities
The  balance of the  Company's  investment  securities  portfolio  continued  to
decline  during the second  quarter of 2000.  Principal  repayments  on mortgage
backed  securities,  as well as maturities within the portfolio,  contributed to
the decrease in  balances,  as there were no  purchases  during the quarter.  In
spite of this decline,  the mix of the securities  portfolio remains  relatively
unchanged from period to period over the long term.

Loans
Loan  growth  continued  to be strong  during  the second  quarter of 2000,  and
exceeded the levels achieved in 1999. During the second three months, annualized
loan  growth was  20.6%,  compared  to 11.7% for the first  quarter of the year.
Commercial and consumer  loans led the increases,  while mortgage loans remained
relatively unchanged.

The mix of the loan portfolio reflected this growth trend,  although overall the
mix has remained  relatively  unchanged from prior periods.  Over the long term,
the trend is toward an increased percentage of residential mortgage and business
loans.

Loans held for sale grew 31.9% when compared to year-end 1999.  Continued strong
loan  growth  prompted  this  increase.  As of  June  30,  2000,  there  existed
approximately  $9,800,000  of loans  committed to be sold. A loss of $196,000 is
reflected  in the income  statement  for the three and six months ended June 30,
2000  relative to this  pending loan sale.  This loss is partially  offset by an
addition to the  mortgage  servicing  asset,  net of any  remaining  unamortized
deferred fees and costs, of approximately $173,000.

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 8
<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 June 30, 2000 and 1999, and December 31, 1999.
<TABLE>
                                                                         6/30/2000      12/31/1999       6/30/1999
                                                                         ---------      ----------       ---------
     <S>                                                               <C>            <C>              <C>
     Nonaccrual loans                                                  $     1,571    $      1,571     $         71
     90 days or more past due & still accruing                                 203             275              179
     Other nonperforming loans                                               1,069           1,500                -
                                                                       -----------    ------------     ------------
         Total nonperforming loans                                           2,843           3,346              250
     Other real estate                                                         377             255              452
                                                                       -----------    ------------     ------------
         Total nonperforming assets                                    $     3,220    $      3,601     $        702
                                                                       ===========    ============     ============

     Nonperforming loans as a percent of total loans                         1.33%           1.73%            0.15%
     Nonperforming assets as a percent of total loans                        1.51%           1.87%            0.41%
     Nonperforming loans as a percent of the allowance
       for loan losses                                                      61.46%          72.02%           11.60%
</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 and June 30, 2000. The
outstanding  balance  of  the  loan  relationship  has  decreased  approximately
$429,000 since December 31, 1999. In addition, these loans were considered to be
impaired at December 31, 1999 and continue to be impaired at June 30, 2000.  The
foregoing  explains the large  variance  noted above in  nonperforming  loans as
compared to June 30, 1999.

The  provision  for loan  losses  for the  first  six  months  of 2000  remained
unchanged when compared to the same period in 1999.  The provision  provides for
currently  anticipated losses inherent in the current portfolio.  An analysis of
the allowance for loan losses, in thousands of dollars, for the six months ended
June 30, 2000 and 1999 follows:
<TABLE>
                                                                                     2000             1999
                                                                                     ----             ----
     <S>                                                                          <C>             <C>
     Balance at beginning of period                                               $      4,646     $     2,182
     Loans charged off                                                                     (89)            (78)
     Recoveries credited to allowance                                                       39              21
     Provision charged to operations                                                        30              30
                                                                                  ------------     -----------
     Balance at end of period                                                     $      4,626     $     2,155
                                                                                  ============     ===========
</TABLE>
                                     Page 9
<PAGE>
Deposits
Total deposit growth for the second quarter was slightly below the first quarter
growth.  Annualized  deposit growth for the quarter was 13.2%,  compared to 7.2%
for all of 1999.  Interest  bearing  deposits  experienced  the  majority of the
increase  during the period.  Management  anticipates  moderate  deposit  growth
during 2000 as a result of continued expansion in new and existing markets.

Liquidity
The Bank  maintained  an average funds  borrowed  position for the first half of
2000,  although  generally  the Bank moves in and out of the fed funds market as
liquidity  needs  vary.   Borrowings  increased  from  December  31,  1999,  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  believes
that the liquidity position of the Company is good.

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 June 30, 2000 and 1999 and December 31, 1999.
<TABLE>
                                                  Regulatory Guidelines                 Bank of Lenawee
                                                  ---------------------                 ---------------
                                               Adequate        Well         6/30/2000     12/31/1999      6/30/1999
                                               --------        ----         ---------     ----------      ---------
     <S>                                         <C>            <C>           <C>            <C>             <C>
     Total risk adjusted capital ratio            8%            10%           11.7%          12.1%           12.7%
     Tier 1 risk adjusted capital ratio           4%             6%           10.5%          10.8%           11.5%
     Tier 1 capital to average assets             4%             5%            9.2%           9.3%            9.6%
</TABLE>

Results of Operations

Net Interest Income
Net  interest  margin  remained  relatively  unchanged  for the  second  quarter
compared to the first quarter of 2000,  but has declined from the same period in
1999.  The same holds true for the spread.  This  tightening,  when  compared to
1999,  is  primarily  a result  of the  Company's  interest  liability-sensitive
position,  reflecting  a risk to earnings  when  interest  rates rise.  In fact,
interest  rates have risen  during  recent  periods,  resulting  in the expected
decline in margin.  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 six month periods ended June 30, 2000 and 1999.

                                    Page 10
<PAGE>
<TABLE>
Yield Analysis of Consolidated Average Assets and Liabilities
Dollars in thousands                              6/30/2000                                 6/30/1999
                                                  ---------                                 ---------
                                    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)                        $   198,919     $   9,244      9.29%     $   159,206      $   7,360      9.25%
Securities available for sale (2)     21,953           600      5.47%          33,505            917      5.47%
Federal funds sold                     1,121            30      5.35%           2,924             73      4.99%
Federal Home Loan Bank stock           2,504           100      7.99%           2,504             99      7.91%
Interest-bearing balances with
  other financial institutions            83             2      4.82%           1,014             23      4.54%
                                 -----------     ---------                -----------      ---------
     Total int. earning assets       224,580         9,976      8.88%         199,153          8,472      8.50%
Noninterest-earning assets:
Cash and due from financial
   institutions                        7,971                                    7,568
Premises and equipment, net            6,406                                    6,563
Other assets                           4,050                                    3,731
                                 -----------                               ----------
     Total Assets                $   243,007                               $  217,015
                                 ===========                               ==========


Interest bearing liabilities:
Interest bearing demand
  deposits                       $    52,696     $     883      3.35%      $   47,743      $     618      2.59%
Savings deposits                      23,817           179      1.50%          24,476            195      1.59%
Time deposits                         91,705         2,527      5.51%          77,450          1,914      4.94%
Repurchase agreements and
   other borrowings                    2,945            79      5.37%           3,811             69      3.62%
FHLB advances                         13,169           406      6.17%           6,250            186      5.95%
                                 -----------     ---------                 ----------      ---------
     Total int. bearing
       liabilities                   184,332         4,074      4.42%         159,730          2,982      3.74%
Noninterest-bearing liabilities:
Demand deposits                       34,576                                   33,028
Other liabilities                        693                                    1,230
                                 -----------                               ----------
     Total liabilities               219,601                                  193,988
Shareholders' equity                  23,406                                   23,027
                                 -----------                               ----------
Total liabilities and
  shareholders' equity           $   243,007                               $  217,015
                                 ===========                               ==========
Net interest income (2)                          $   5,902                                 $   5,490
                                                 =========                                 =========
Net spread (2)                                                  4.46%                                     4.76%
                                                                =====                                     =====
Net yield on interest
 earning assets (2)                                             5.26%                                     5.51%
                                                                =====                                     =====
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 11
<PAGE>
Noninterest Income
For the  first  half of 2000,  noninterest  income  from  banking  products  and
services  declined 22.5% as compared to the same period in 1999. Rising interest
rates 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
$390 thousand,  or 65.8%,  contributed  significantly to the overall noninterest
income  decline.  This decrease was partially  offset by an increase of 20.6% in
services  charges  and fees due to deposit  growth.  Noninterest  income for the
three months ended June 30, 2000 also decreased over the same period in 1999 for
the same reasons noted above.  Noninterest income for the second three months of
2000 was  slightly  higher  when  compared  to the  first  quarter.  This can be
explained mostly by increased loan sale activity for the second quarter relative
to the first quarter of 2000.

Noninterest Expenses
Noninterest  expense  continued  to  increase  over  prior  periods,  reflecting
continued growth and expansion of the Bank. Total noninterest expense, excluding
provision  for loan losses,  for the first six months of 2000 was 0.7% above the
same period for 1999.  Salaries and employee benefits decreased 4.5% as compared
to the six  months  ended  June 30,  1999.  This was  mainly  attributable  to a
decreased level of employee incentive  compensation  during the first and second
quarters  of 2000 as compared  to the first and second  quarters  of 1999.  When
compared  to the  six  months  ended  June  30,  1999,  the  category  of  other
noninterest  expense increased 15.8% for 2000. This increase is due to increased
costs  during  the  first  half of  2000  for ATM  service  charges,  insurance,
donations,  mobile  banking  security  expenses  and  expenses  relative  to the
Business Manager program.  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 second 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;  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.

                                    Page 12
<PAGE>
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.  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 found in the Company's Registration Statement on Form 10,  as
amended.

                                     PART II
                                OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

The Company is not involved in any material  legal  proceedings.  The  Company's
sole subsidiary,  Bank of Lenawee,  is involved in ordinary  routine  litigation
incident to its business; however, no such proceedings are expected to result in
any material  adverse effect on the operations or earnings of the Bank.  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
June 30, 2000.

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 June 30, 2000.

                                    Page 13
<PAGE>
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The annual meeting of shareholders of the Company was held on April 20, 2000. At
that meeting, the following matters were submitted to a vote of the shareholders

                                                          VOTE
1.  Election of Two Directors for Terms                AGAINST OR
    Expiring in 2003                          FOR       WITHHELD      ABSTENTION
                                              ---      ----------     ----------

         Patrick K. Gill                    617,765       1,559             -0-
         David J. Stutzman                  610,515       8,080             -0-

2.  Appointment of Crowe, Chizek and
    Company LLP as auditors for the
    fiscal year ending December 31, 2000    613,438       3,105           2,781


  There were 854,913 voting shares outstanding on April 20, 2000.

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 filed no reports on Form 8-K during the quarter ended
         June 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.
August 14, 2000


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


EXHIBIT INDEX

    EXHIBIT NO.                      DESCRIPTION

        27                     Financial Data Schedule


                                    Page 14