U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

    (MARK ONE)
    [X]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
         ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998


    [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

       FOR THE TRANSITION PERIOD FROM _______________ TO ________________

                         COMMISSION FILE NUMBER 0-22435

                                 FIRSTBANK CORP.

        (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)


            DELAWARE                                 84-1389562
(STATE OR OTHER JURISDICTION OF                   (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                  IDENTIFICATION NO.)

                       920 MAIN STREET, LEWISTON, ID 83501
                     ADDRESS OF PRINCIPAL EXECUTIVE OFFICES


                                 (208) 746-9610
                (ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

                                       N/A
              (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                          IF CHANGED SINCE LAST REPORT)

Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.

      [X] Yes         [ ] No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date:

Common Stock 1,885,356 shares outstanding on December 31, 1998

Transitional Small Business Disclosure Format (check one):

      [ ] Yes         [X] No

<PAGE>

                                             FIRSTBANK CORP.
                                            TABLE OF CONTENTS


PART I.  FINANCIAL INFORMATION


Item 1. Financial Statements                                            Page

        Consolidated Statements of Financial Condition                      
            As of December 31, 1998 and March 31, 1998                   1
        Consolidated Statements of Income
            For the three months and nine months
            ended December 31, 1998 and   1997                           2
        Consolidated Statements of Cash Flows
            For the nine months ended December 31, 1998 and 1997         3
        Consolidated Statements of Comprehensive Income
            For the three months and nine months ended
            December 31, 1998 and 1997                                   4
        Notes to Consolidated Financial Statements                     5 - 6

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                            6 - 9



PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                             10
Item 2.   Changes in Securities and Use of Proceeds                     10
Item 3.   Defaults Upon Senior Securities                               10
Item 4.   Submission of Matters to a Vote of Security Holders           10
Item 5.   Other Information                                             10
Item 6.   Exhibits and Reports on Form 8-K                              10

<PAGE>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
<CAPTION>

                                        FirstBank Corp. and Subsidiaries
                                 Consolidated Statements of Financial Condition

                                                                                At December 31,    At March 31,
                                                                                     1998             1998
                                                                                 -------------    -------------
                                                                                 (Unaudited)
<S>                                                                              <C>              <C>          
ASSETS
Cash and cash equivalents:
  Non-interest bearing deposits                                                  $   7,832,870    $   5,443,129
  Interest bearing deposits                                                          2,460,263        1,139,185
  Federal funds sold                                                                 2,018,008        1,834,506
                                                                                 -------------    -------------
Total cash and cash equivalents                                                  $  12,311,141    $   8,416,820

Investment securities:
  Held-to-maturity                                                                   1,200,000        2,449,375
  Available-for-sale                                                                 5,945,568        2,654,233
Mortgage-backed securities:
  Held-to-maturity                                                                   2,849,716        3,420,153
  Available-for-sale                                                                 8,286,182        7,969,533
Certificates of deposit                                                                     --          991,000
Loans receivable, net                                                              161,139,721      145,696,660
Accrued interest receivable                                                          1,625,862        1,374,239
Real estate owned                                                                      298,713          883,441
Stock in FHLB, at cost                                                               2,455,175        2,110,075
Premises and equipment, net                                                          4,790,045        4,705,829
Income taxes receivable                                                                 81,291          468,807
Cash surrender value of life insurance policies                                      1,567,182        1,400,055
Mortgage servicing assets                                                              802,291          406,666
Other assets                                                                           261,746          616,284
                                                                                 -------------    -------------
TOTAL ASSETS                                                                     $ 203,614,633    $ 183,563,170
                                                                                 =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                                       $ 128,736,106    $ 114,495,090
  Advances from borrowers for taxes and insurance                                      788,333        1,329,080
  Advances from FHLB                                                                43,802,106       35,655,579
  Deferred federal and state income taxes                                              376,678          245,000
  Accrued expenses and other liabilities                                             1,819,690        1,830,423
                                                                                 -------------    -------------
Total Liabilities                                                                $ 175,522,913    $ 153,555,172
                                                                                 -------------    -------------

Stockholders' Equity (Note 4)
  Preferred stock, $.01 par value,  500,000 shares authorized; 0 shares issued
      and outstanding                                                                       --               --
  Common stock, $.01 par value,  5,000,000 shares authorized; 1,983,750
      shares issued;  1,746,985 and 1,983,750 shares outstanding,                       19,838           19,838
  Additional paid-in-capital                                                        18,720,476       18,989,977
  Retained earnings, substantially restricted                                       13,541,467       12,493,990
  Unearned ESOP shares (Note 3)                                                     (1,384,070)      (1,493,430)
  Deferred compensation                                                             (1,170,889)              --
  Treasury stock, at cost; 98,394 and 0 shares                                      (1,637,470)              --
  Accumulated comprehensive gain (loss):
      Unrealized gains (losses) on securities available-for-sale, net of tax             2,368           (2,377)
                                                                                 -------------    -------------
Total Stockholders' Equity                                                          28,091,720       30,007,998
                                                                                 -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $ 203,614,633    $ 183,563,170
                                                                                 =============    =============
</TABLE>

See accompanying notes to consolidated financial statements

                                                                               1
<PAGE>

<TABLE>
<CAPTION>

                                        FirstBank Corp. and Subsidiaries
                                        Consolidated Statements of Income


                                                           Three months ended         Nine months  ended
                                                              December 31,               December 31,
                                                           1998          1997         1998           1997
                                                      -----------   -----------   -----------   -----------
                                                                           (Unaudited)
<S>                                                   <C>           <C>           <C>           <C>        
Interest income:
  Loans receivable                                    $ 3,319,508   $ 3,017,681   $ 9,975,949   $ 8,604,823
  Mortgage-backed securities                              143,422       203,917       473,360       423,704
  Investment securities                                    77,144       128,443       216,054       311,943
  Other interest earning assets                           229,148       129,097       607,257       504,740
                                                      -----------   -----------   -----------   -----------
Total interest income                                   3,769,222     3,479,138    11,272,620     9,845,210

Interest expense:
  Deposits                                              1,242,906     1,186,531     3,698,448     3,490,163
  Advances from FHLB                                      609,078       508,219     1,771,494     1,363,756
                                                      -----------   -----------   -----------   -----------
Total interest expense                                  1,851,984     1,694,750     5,469,942     4,853,919

Net interest income                                     1,917,238     1,784,388     5,802,678     4,991,291
Provision for loan losses                                  64,645        75,137       265,413       143,137
                                                      -----------   -----------   -----------   -----------
Net interest income after provision for loan losses     1,852,593     1,709,251     5,537,265     4,848,154

Non-interest income:
  Gain on sale of loans                                   490,273       305,923     1,328,719       708,791
  Service fees and charges                                340,298       296,361       924,851       828,182
  Commissions and other                                    62,930        30,751       123,119        98,215
                                                      -----------   -----------   -----------   -----------
Total non-interest income                                 893,501       633,035     2,376,689     1,635,188

Non-interest expense:
  Compensation and related benefits                     1,101,528       910,565     3,084,348     2,643,436
  Occupancy                                               208,923       197,836       641,873       576,546
  Other                                                   607,009       524,074     1,873,751     1,418,587
                                                      -----------   -----------   -----------   -----------
Total non-interest expense                              1,917,460     1,632,475     5,599,972     4,638,569
                                                      -----------   -----------   -----------   -----------

Income before income tax expense                          828,634       709,811     2,313,982     1,844,773
Income tax expense                                        284,847       251,620       824,426       679,804
                                                      -----------   -----------   -----------   -----------
NET INCOME                                            $   543,787   $   458,191   $ 1,489,556   $ 1,164,969
                                                      ===========   ===========   ===========   ===========

Earnings per share (Note 2):
  Net income per share -basic                         $      0.32   $      0.25   $      0.84   $      0.64
  Net income per share -diluted                       $      0.30   $      0.25   $      0.82   $      0.64
  Weighted average shares outstanding -basic            1,712,730     1,831,659     1,777,171     1,826,988
  Weighted average shares outstanding -diluted          1,795,194     1,831,659     1,812,500     1,826,988
</TABLE>

See accompanying notes to consolidated financial statements

                                                                               2
<PAGE>

<TABLE>
<CAPTION>

                                            FirstBank Corp. and Subsidiaries,
                                          Consolidated Statements of Cash Flows

                                                                                         Nine months ended December 31,
                                                                                             1998              1997
                                                                                         -------------    -------------
                                                                                                    (Unaudited)
<S>                                                                                      <C>              <C>          
   Cash flows from operating activities:
     Net income                                                                          $   1,489,556    $   1,164,969
     Adjustments to reconcile net income to net cash provided by operating activities:
       Depreciation                                                                            426,430          423,021
       Provision for loan losses                                                               265,413          143,137
       Gain on sale of fixed assets                                                             56,838               --
       FHLB stock dividends                                                                   (130,000)         (99,100)
       ESOP compensation expense                                                               205,166          161,722
       Gain on sale of loans                                                                (1,328,719)        (708,791)
       Other (gains) losses, net                                                                (5,445)          10,498
       Provision for real estate owned                                                          57,533           47,706
       Deferred compensation expense                                                           107,005          125,352
       Deferred income taxes                                                                   106,185          182,288
    Changes in assets and liabilities:
       Accrued interest receivable and other assets                                           (639,260)        (532,230)
       Accrued expenses and other liabilities                                                  (34,086)        (884,313)
       Income taxes receivable (payable)                                                       387,516               --
                                                                                         -------------    -------------
   Net cash provided by operating activities                                                   964,132           34,259

   Cash flows from investing activities:
     Purchase of mortgage-backed securities; available-for-sale                             (3,707,447)      (6,827,419)
     Proceeds from maturities of mortgage-backed securities                                  3,841,234        1,049,829
     Decrease in loans receivable from loans sold                                           80,159,796       27,502,334
     Other net change in loans receivable                                                  (94,895,452)     (57,938,538)
     Purchase of FHLB stock                                                                   (215,100)      (1,014,700)
     Purchases of premises and equipment                                                      (444,637)        (409,631)
     Proceeds from sale of fixed assets                                                        279,519               --
     Net increase in cash surrender value of life insurance policies                          (167,127)         (31,389)
     Proceeds from sale of real estate owned                                                   898,734          149,113
     Purchase of investment securities; available for sale                                  (3,207,122)      (3,491,000)
     Proceeds from maturities of investment securities; held-to-maturity                     1,249,375        5,250,000
     Proceeds from maturities of certificates of deposit                                       991,000               --
     Purchase of mortgage-backed securities; held-to-maturity                                       --       (1,500,000)
     Proceeds from sale of investment securities; available-for-sale                                --       (2,359,343)
                                                                                         -------------    -------------
   Net cash used in investing activities                                                   (15,217,227)     (39,620,744)

   Cash flows from financing activities:
     Proceeds from issuance of common stock                                                         --       17,354,663
     Cash paid for dividends                                                                  (442,079)        (127,756)
     Net increase in deposits                                                               14,241,016        3,821,105
     Bank overdrafts                                                                                --       (1,023,505)
     Advances from borrowers for taxes and insurance                                          (540,747)        (259,916)
     Advances from FHLB                                                                     70,308,334      238,122,916
     Payments on advances from FHLB                                                        (62,161,807)    (213,142,920)
     Purchase of treasury stock                                                             (3,257,301)              --
                                                                                         -------------    -------------
   Net cash provided by financing activities                                                18,147,416       44,744,587
                                                                                         -------------    -------------

   Net increase in cash and cash equivalents                                                 3,894,321        5,158,102
   Cash and cash equivalents, beginning of period                                            8,416,820        5,302,736
                                                                                         -------------    -------------
   Cash and cash equivalents, end of period                                              $  12,311,141    $  10,460,838
                                                                                         =============    =============

   Supplemental disclosures of cash flow information: Cash paid during the period for:
        Interest                                                                         $   5,501,438    $   4,845,678
        Income taxes                                                                     $     539,861    $     835,938
     Noncash investing and financing activities:
        Unrealized (gains) losses on securities; available-for-sale, net of tax          $       4,745    $      87,487
        Loans receivable charged to the allowance for loan losses                        $      29,576    $      52,256
        Transfer from loans converted to real estate acquired through foreclosure        $     355,901    $     548,062
        Issuance of common stock out of treasury under Management Recognition and
           Development Plan                                                              $   1,254,525    $          --
</TABLE>
See accompanying notes to consolidated financial statements

                                                                               3
<PAGE>

<TABLE>
<CAPTION>

                                        FirstBank Corp. and Subsidiaries
                                 Consolidated Statements of Comprehensive Income

                                                           Three months ended Dec. 31, Nine months ended Dec. 31,
                                                               1998          1997         1998         1997
                                                            ----------    ----------   ----------   ----------
                                                                                (Unaudited)

<S>                                                         <C>           <C>          <C>          <C>       
Net income                                                  $  543,787    $  458,191   $1,489,556   $1,164,969
Other comprehensive income (loss), net of tax:
       Change in unrealized gains (losses) on securities;
             available-for-sale, net of tax                    (27,576)        5,309        4,745       87,487
                                                            ----------    ----------   ----------   ----------

       Net other comprehensive income (loss)                   (27,576)        5,309        4,745       87,487
                                                            ----------    ----------   ----------   ----------
Comprehensive income                                        $  516,211    $  463,500   $1,494,301   $1,252,456
                                                            ==========    ==========   ==========   ==========
</TABLE>
See accompanying notes to consolidated financial statements

                                                                               4
<PAGE>

                        FIRSTBANK CORP. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1)     BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with Generally Accepted  Accounting  Principles (GAAP) for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes required by GAAP for complete financial  statements.  These statements
should be read in conjunction  with the  consolidated  financial  statements and
related notes included in the Company's Form 10-KSB for the year ended March 31,
1998.  In the  opinion of  management,  all  adjustments  (consisting  of normal
recurring adjustments) necessary for a fair presentation have been included. The
results  of  operations  and  other  data for the three  and nine  months  ended
December 31, 1998 are not necessarily indicative of results that may be expected
for the entire fiscal year ending March 31, 1999.

The  unaudited   consolidated  financial  statements  of  FirstBank  Corp.  (the
"Company")  include  the  accounts  of its  wholly-owned  subsidiary,  FirstBank
Northwest  (the  "Savings  Bank")  and  its  wholly-owned  subsidiary,   TriStar
Financial  Corporation  for the three months and nine months ended  December 31,
1998.  The  financial  statements  for the periods prior to July 1, 1997 include
only the  accounts  of the  Savings  Bank and its  subsidiary.  All  significant
intercompany accounts and transactions have been eliminated in consolidation.

In September 1998, the Financial  Accounting Standards Board Issued Statement of
Financial  Accounting  Standards  (SFAS) No.  133,  "Accounting  for  Derivative
Instruments  and  Hedging  Activities."  SFAS  No.  133  requires  companies  to
recognize  all  derivatives  contracts as either  assets or  liabilities  in the
balance sheet and to measure them at fair value. If certain  conditions are met,
a derivative may be specifically  designated as a hedge,  the objective of which
is to match the timing of gain or loss  recognition  on the  hedging  derivative
with the  recognition  of (i) the changes in the fair value of the hedged assets
or  liability  that are  attributable  to the hedged  risk or (ii) the  earnings
effect of the hedged forecasted transaction.  For a derivative not designated as
a hedging instrument,  the gain or loss is recognized in income in the period of
change.  SFAS No. 133 is  effective  for all  fiscal  quarters  of fiscal  years
beginning  after September 15, 1999.  Historically,  the Company has not entered
into  derivative  contracts  either to hedge existing  risks or for  speculative
purposes.  Accordingly, the Company does not expect adoption of the new standard
on April 1, 2000 to affect its financial statements.

(2)     EARNINGS PER SHARE

Basic earnings per share is computed by dividing the Company's net income by the
weighted average number of common shares outstanding during the period.  Diluted
earnings  per  share  reflects  the  potential  dilution  that  could  occur  if
securities or other  contracts to issue common stock were exercised or converted
into common stock.  ESOP shares,  which are unallocated and not yet committed to
be  released,   are  excluded  from  the  weighted  average  shares  outstanding
calculation

(3)     EMPLOYEE STOCK OWNERSHIP PLAN ("ESOP")

During 1997 the Company established a tax-qualified  internally  leveraged ESOP.
The ESOP covers  substantially all employees who have attained the age of 21 and
completed  one year of service.  In  connection  with the  conversion to a stock
company,  the ESOP purchased  158,700 shares of the Company's  common stock at a
price of $10.00 per share using funds loaned by the Company. All ESOP shares are
held in a suspense  account and are allocated  among the  participants  on a pro
rata basis as the loan is repaid.  Currently  this  receivable  from the ESOP is
scheduled to be repaid with level principal and interest  payments over 15 years
with no penalty for prepayment.  Shares  released from the suspense  account are
allocated among the participants based upon their pro rata annual compensation.

The sale of the shares to the ESOP was recorded by the Company as unearned  ESOP
shares, a contra equity account.  As ESOP shares are committed to be released to
compensate  employees,  the contra equity account is reduced and a corresponding
charge to  compensation  expense  equal to the fair  market  value of the shares
committed  to be  released  is  recorded.  Upon  committing  these  shares to be
released,   they  become   outstanding   for   purposes  of   earnings-per-share
computations.  Dividends on allocated ESOP shares are recorded as a reduction of
retained  earnings;  dividends  on  unallocated  ESOP  shares are  recorded as a
reduction in ESOP debt.  Compensation  expense  related to the ESOP was $205,000
for the nine months  ended  December 31,  1998.  As of December  31,  1998,  the
Company has  allocated or committed to release to the ESOP 20,329  earned shares
and has 138,371 unearned,  restricted shares remaining to be release. The market
value of unearned,  restricted  shares held by the ESOP trust was  approximately
$2.0 million at December 31, 1998.
                                                                               5

<PAGE>

(4)     DIVIDEND

On October 19, 1998 the Board of Directors  declared a cash dividend of $.09 per
common share to shareholders of record as of November 11, 1998. The dividend was
paid November 25, 1998.

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

Forward-looking statements,  within the meaning of Section 21E of the Securities
and Exchange Act of 1934, are made throughout this  Management's  Discussion and
Analysis of Financial Condition and Results of Operations. For this purpose, any
statements  contained  herein that are not statements of historical  fact may be
deemed to be  forward-looking  statements.  Without limiting the foregoing,  the
words "believes",  "anticipates",  "plans",  "expects",  "estimates" and similar
expressions  are intended to identify  forward-looking  statements.  There are a
number of  important  factors  that could  cause the  results of the  Company to
differ  materially from those indicated herein.  These factors include,  but are
not limited to, those set forth in Item 7 entitled  Management's  Discussion and
Analysis of Financial  Condition and Results of Operations in the Company's Form
10-KSB for the year ended March 31, 1998.

GENERAL

On July 1, 1997,  FirstBank  Northwest  converted  from mutual to stock form and
became a wholly owned  subsidiary of a newly formed  Delaware  holding  company,
FirstBank Corp. The Company sold 1,983,750  shares of common stock at $10.00 per
share in conjunction with a subscription offering to the Savings Bank's Employee
Stock Ownership Plan (ESOP) and eligible account holders.  The net proceeds were
approximately $18,921,825.  The Company used approximately $9,470,000 of the net
proceeds to purchase  all the capital  stock of the Savings  Bank.  In addition,
$1,587,000  was loaned to the ESOP for the  purchase  of  158,700  shares in the
offering.

The Company's principal business is the business of the Savings Bank. Therefore,
the  discussion  in  the  Management's  Discussion  and  Analysis  of  Financial
Conditions  and  Results  of  Operation  relates  to the  Savings  Bank  and its
operations.  In August  1997,  the  Savings  Bank  opened up a retail  branch in
Clarkston,  Washington.  The Bank now has  offices in Idaho and  Washington.  In
January 1998 the Bank changed its charter to a Washington state savings bank.

During  the  second  quarter  of fiscal  1999,  the  shareholders  approved  the
Company's  Management  Recognition  and  Development  Plan and 1998 Stock Option
Plan.  The Board of Directors  awarded  79,350  shares of  restricted  stock and
options to acquire 171,350 shares.

In August 1998, the Company  completed the  repurchase of 5%, or 99,187,  of its
common shares.  In September  1998,  79,350 of these shares were reissued out of
treasury under the Management  Recognition and Development Plan. In November and
December  1998,  the Company  completed the  repurchase of an additional  4%, or
78,557 of its shares on the open market.

On  September  21st,   1998,  the  Company   received  FDIC  approval  to  begin
construction of a new branch office in Liberty Lake, Washington. Liberty Lake is
a fast-growing bedroom community midway between Spokane, Washington and Coeur d'
Alene, Idaho. This will be the seventh retail branch for the Company, the second
in Washington State, and will have six employees, including one loan officer. It
is expected the branch will open during the summer of 1999.  The  contractor for
the new branch is Bank Design and Construction  Corp. out of Dallas,  Texas. The
annual lease expense for the land is $30,000,  and the expected capitalized cost
of construction is $750,000.

On January 7, 1999, the Company announced and received FDIC approval to open its
first branch office inside a supermarket.  The new branch will be located in the
Tidyman's  Market in Post  Falls,  Idaho - a fast  growing  small  city  between
Spokane, Washington and Coeur d' Alene, Idaho. The branch is expected to open in
March,  and  will be  FirstBank's  eighth  branch  and  will  employ  a staff of
approximately four people. International Banking Technologies is consulting with
startup,  staffing,  training and monitoring issues. The annual lease expense is
$27,000 and expected capitalized costs are $100,000.

During the third quarter of fiscal 1999, management announced plans to terminate
service held with the Company's  external service provider and begin an in-house
conversion during the first quarter of fiscal 2000.

FINANCIAL CONDITION AT DECEMBER 31, 1998 AND MARCH 31, 1998

Assets  increased  from $183.6  million at March 31,  1998 to $203.6  million at
December  31, 1998.  Cash and cash  equivalents  increased  from $8.4 million at
March 31, 1998 to $12.3  million at December 31, 1998 as a result of an increase
in deposits. Loans receivable increased from $145.7 million at March 31, 1998 to
$161.1  million  at  December  31,  1998  as a  result  of a large  increase  in
agricultural and commercial lending.  Accrued interest receivable increased $1.4
million at March 31, 1998 to $1.6 million at

                                                                               6
<PAGE>

December 31, 1998 due to a higher  average asset base in  securities  and loans.
Deposits  increased  from $114.5  million at March 31, 1998 to $128.7 million at
December 31, 1998,  the greatest  increase  being an additional  $8.0 million in
checking accounts.  Activity within deposit balances increased  primarily due to
the Savings Bank benefiting from funds deposited by the customers of other local
institutions, following larger bank mergers, and from deposits of new commercial
loan customers. Federal Home Loan Bank of Seattle (FHLB) advances increased from
$35.7  million at March 31, 1998 to $43.8  million at  December  31,  1998.  The
increase in FHLB  borrowing was used to fund loan growth.  Accrued  expenses and
other  liabilities  remained  constant at $1.8  million at March 31, 1998 and at
December  31,  1998.  It is the  policy of the  Savings  Bank to cease  accruing
interest  on loans 90 days or more past due.  Nonaccrual  loans  decreased  from
$454,000 at March 31, 1998 to $364,000 at December 31, 1998.

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997

Net income  increased from $458,000 for the three months ended December 31, 1997
to $544,000 for the three months ended December 31, 1998.

Net  interest  income  increased  from $1.8  million for the three  months ended
December 31, 1997 to $1.9 million for the three months ended  December 31, 1998.
Total  interest  income  increased  from $3.5 million for the three months ended
December 31, 1997 to $3.8 million for three months ended  December 31, 1998. The
increase in interest income stemmed from an increase in average interest earning
assets offset by a decrease in the weighted average yield on the loan portfolio,
which was 8.70% for the three  months ended  December  31, 1997  compared to the
weighted  average  yield for the three months ended  December 31, 1998 of 8.53%.
The average balance of loans  receivable was $138.8 million for the three months
ended  December 31, 1997 compared to the average  balance of $156.9  million for
the three  months  ended  December 31,  1998.  Interest  income from  investment
securities  decreased from $128,000 for the three months ended December 31, 1997
to $77,000 for the three months ended  December 31, 1998. The decrease is due to
a  decrease  in  the   average   balance   and  yield.   Interest   income  from
mortgage-backed  securities  decreased  from $204,000 for the three months ended
December 31, 1997 to $143,000 for the three months ended  December 31, 1998. The
decrease  is  due  primarily  to a  higher  average  balance.  Interest  expense
increased from $1.7 million for the three months ended December 31, 1997 to $1.9
million for the same  period in 1998.  The  increase in interest  expense is due
primarily  to higher  average  deposit  balances,  an increase  in average  FHLB
advances offset by a decrease in weighted  average rates.  The weighted  average
rate on deposits for the three months ended December 31, 1998 was 3.92%, whereas
the weighted  average  rate on deposits as of December  31, 1997 was 4.22%.  The
weighted  average rate on FHLB advances for the three months ended  December 31,
1998 was  5.73%,  whereas  the  weighted  average  rate on FHLB  advances  as of
December 31, 1997 was 5.91%.

Provision for loan losses is based upon  management's  consideration of economic
conditions  which may  affect  the  ability  of  borrowers  to repay the  loans.
Management also reviews  individual loans for which full  collectibility may not
be reasonably assured and considers,  among other matters, the risks inherent in
the Savings  Bank's  portfolio  and the estimated  fair value of the  underlying
collateral.  This evaluation is ongoing and results in variations in the Savings
Bank's provision for loan losses.  As a result of this  evaluation,  the Savings
Bank's  provision for loan losses  decreased from $75,000 the three months ended
December 31, 1997 to $65,000 for the three months ended December 31, 1998.

Non-interest  income increased from $633,000 for the three months ended December
31, 1997 to $894,000 for the three months ended  December 31, 1998.  The primary
reason for the increase is the gain on sale of loans, which increased $184,000.

Non-interest  expense  increased  from $1.6  million for the three  months ended
December 31, 1997 to $1.9 million for the three months ended  December 31, 1998.
The increase in compensation and other related expenses of $191,000 is caused by
increasing  payroll  expenses  in  the  expanding   commercial  and  agriculture
departments,   and  compensation  related  to  the  Management  Recognition  and
Development   Plan.  Other  expenses  that  were  up  are  data  processing  and
write-downs of real estate owned.

Income  taxes  increased  from an expense of $252,000 for the three months ended
December 31, 1997 to expense of $285,000 for the same time period in 1998.

RESULTS OF OPERATIONS FOR NINE MONTHS ENDED DECEMBER 31, 1998 AND 1997

Net income  increased  from $1.2 million for the nine months ended  December 31,
1997 to $1.5 million for the nine months ended December 31, 1998.

Net  interest  income  increased  from $5.0  million for the nine  months  ended
December 31, 1997 to $5.8  million for the nine months ended  December 31, 1998.
Total  interest  income  increased  from $9.8  million for the nine months ended
December 31, 1997 to $11.3 million for nine months ended  December 31, 1998. The
increase in interest income stemmed from an increase in average interest

                                                                               7

<PAGE>

earning  assets  offset by a decrease in the weighted  average yield on the loan
portfolio,  which was 8.86% for the nine months ended December 31, 1997 compared
to the weighted  average  yield for the nine months  ended  December 31, 1998 of
8.73%. The average balance for loans receivable was $129.6 million in during the
nine months  ended  December 31, 1997  compared to an average  balance of $153.9
million  during the nine months ended  December 31, 1998.  Interest  income from
investment securities decreased from $312,000 for the nine months ended December
31, 1997 to $216,000 for the nine months ended  December 31, 1998.  The decrease
is due to a lower average  balance and a decrease in average yield from 6.82% at
December  31,  1997  to  6.09%  at  December  31,  1998.  Interest  income  from
mortgage-backed  securities  increased  from  $424,000 for the nine months ended
December 31, 1997 to $473,000 for the nine months ended  December 31, 1998.  The
increase  is  due  primarily  to a  higher  average  balance.  Interest  expense
increased  from $4.9 million for the nine months ended December 31, 1997 to $5.5
million for the same time period in 1998.  The  increase in interest  expense is
due primarily to higher average  deposit  balances,  an increase in average FHLB
advances offset by a decrease in weighted  average rates.  The weighted  average
rate on deposits for the nine months ended December 31, 1998 was 4.09%,  whereas
the weighted  average  rate on deposits  for the nine months ended  December 31,
1997 was 4.26%.  The weighted  average rate on FHLB advances for the nine months
ended  December 31, 1998 was 5.74%,  whereas the  weighted  average rate on FHLB
advances for the nine months ended December 31, 1997 was 6.33%.

Provision for loan losses is based upon  management's  consideration of economic
conditions  which may  affect  the  ability  of  borrowers  to repay the  loans.
Management also reviews  individual loans for which full  collectibility may not
be reasonably assured and considers,  among other matters, the risks inherent in
the Savings  Bank's  portfolio  and the estimated  fair value of the  underlying
collateral.  This evaluation is ongoing and results in variations in the Savings
Bank's provision for loan losses.  As a result of this  evaluation,  the Savings
Bank's  provision  for loan losses  increased  from $143,000 for the nine months
ended December 31, 1997 to $265,000 for the nine months ended December 31, 1998.

Non-interest  income  increased  from $1.6  million  for the nine  months  ended
December 31, 1997 to $2.4  million for the nine months ended  December 31, 1998.
The  primary  reason  for the  increase  is the gain on sale of loans  increased
$620,000.

Non-interest  expense  increased  from $4.6  million for the nine  months  ended
December 31, 1997 to $5.6  million for the nine months ended  December 31, 1998.
The increase in compensation and other related expenses of $441,000 is caused by
the payroll  increase in the expanding  commercial and agriculture  departments,
and  compensation  related to the management  recognition and development  plan.
Other  expenses  that were up are data  processing,  write-downs  of real estate
owned and a loss on the sale of a fixed asset.

Income  taxes  increased  from an expense of $680,000  for the nine months ended
December 31, 1997 to expense of $824,000 for the same time period in 1998.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary recurring sources of funds are customer deposits, proceeds
from  principal  and interest  payments on loans,  proceeds from sales of loans,
maturing   securities  and  FHLB  advances.   While   maturities  and  scheduled
amortization  of loans are a  predictable  source of  funds,  deposit  flows and
mortgage prepayments are greatly influenced by general interest rates,  economic
conditions and competition.

The  Company  must  maintain  an  adequate  level of  liquidity  to  ensure  the
availability of sufficient funds to support loan growth and deposit withdrawals,
to  satisfy   financial   commitments   and  to  take  advantage  of  investment
opportunities.  The Company generally  maintains  sufficient cash and short-term
investments to meet short-term  liquidity  needs. At December 31, 1998, cash and
cash equivalents  totaled $12.3 million,  or 6.05% of total assets. In addition,
the Company  maintains a credit facility with the  FHLB-Seattle,  which provides
for immediately available advances.  Advances under this credit facility totaled
$43.8 million at December 31, 1998.

The  primary  investing  activity of the  Company is the  origination  of loans.
During the nine months ended December 31, 1997 and 1998, the Company  originated
loans in the  amounts of $103.7  million  and $136.8  million  respectively.  At
December 31, 1998,  the Company had loan  commitments  totaling  $26.9  million,
undisbursed  lines of credit totaling $12.4 million,  and  undisbursed  loans in
process  totaling  $12.1  million.  The  Company  anticipates  that it will have
sufficient  funds  available to meet its current loan  origination  commitments.
Certificates  of deposit that are scheduled to mature in less than one year from
December 31, 1998 totaled $51.0 million. Historically, the Company has been able
to retain a  significant  amount of its  deposits as they  mature.  In addition,
management  of the Company  believes  that it can adjust the  offering  rates of
savings certificates to retain deposits in changing interest rate environments.

The Savings Bank is required to maintain specific amounts of capital pursuant to
the FDIC and the State of Washington requirements.  As of December 31, 1998, the
Savings Bank was in compliance with all regulatory  capital  requirements  which
were  effective  as of such date with Tier 1 Capital to average  assets,  Tier 1
Capital to  risk-weighted  assets and Total capital to  risk-weighted  assets of
11.00%, 14.77% and 15.7%, respectively.
                                                                               8
<PAGE>

YEAR 2000 ISSUES

The Year 2000 issue exists because many computer  systems and  applications  use
two-digit  date fields to designate a year.  As the century date change  occurs,
date-sensitive  systems may recognize the year 2000 as 1900, or not at all. This
inability  to  recognize  or properly  treat the year 2000 may cause  systems to
process financial and operational information incorrectly. In order to alleviate
the  potential  for systems  failure or erroneous  information,  the Company has
created a Year 2000  compliance  plan that focuses on  identifying,  testing and
implementing  solutions for Year 2000 processing.  A preliminary estimate of the
total cost to complete the Year 2000 compliance plan is approximately  $100,000,
$64,000  of which has been spent on the  project  year to date.  Maintenance  or
modification costs will be expensed as incurred, while the costs of new software
will be capitalized and amortized over the software's useful life. The costs for
accomplishing  the Company's plans to complete the year 2000  modifications  and
testing processes are based on management's  best estimates,  which were derived
utilizing  numerous  assumption  of  future  events,   including  the  continued
availability  of various  resources,  third-party  modification  plans and other
factors.  However,  there  can be no  guarantee  that  these  estimates  will be
achieved,  and actual  results could differ from those plans.  In the event that
the Company's service bureau is unable to fulfill its contractual obligations to
the  Company,  it could  have a  significant  adverse  impact  on the  financial
condition and results of operations of the Company.

At June  30,  1998,  the  Company  had  completed  the  awareness  training  and
assessment phases of its Year 2000 compliance plan and was well into the testing
phase. The awareness phase included gaining  understanding  and support with the
help of an independent  consulting  firm  experienced  in Year 2000  management,
committing  resources  to the plan,  established  a project team  consisting  of
senior managers and department  heads,  and developing a strategy to address all
internal and external systems.  The project team reports monthly to the Board of
Directors as to the status of timeline for completing the project.

The  assessment  phase  involved  attempting  to identify all critical  business
processes  and  determining  the  impact  of Year 2000 on all  computer  systems
throughout  the  organization.  Vendors  were  contacted  and  asked  to  submit
certification  letters  stating  that  they are in  compliance  with  Year  2000
conversion issues.

The conversion to the in-house  computer  system  includes Year 2000 testing and
preparation.  All hardware and computer  systems and all of the embedded systems
contained  in  the  building,  equipment  and  other  infrastructure  have  been
assessed.  The Company has  successfully  tested the loan platforms  systems for
loan documentation.  It is estimated that testing programming changes (including
converting,  replacing or  eliminating  all software and databases as necessary)
will be largely completed by March 31, 1999.

Contingency  plans are being  developed  in the  event  modifications  cannot be
completed in time, or in the event  unforeseen  problems develop in spite of the
Company's efforts to ensure compliance with Year 2000 standards.

Financial  institutions  also must  consider  the  possibility  of some level of
reduction in deposits  during the month of December  1999.  The Company has made
arrangements  with the  Federal  Reserve for funds from the  discount  window if
needed.

In  conjunction  with its  review  of Year  2000  issues,  the  Company  also is
assessing the impact of the Year 2000 problem on significant borrowers and their
ability to repay  loans.  As of December  31,  1998,  a credit  risk  mitigation
assessment  on  loans  was   completed,   resulting  in  the  evaluation  of  an
insignificant number of loans with a high or medium risk factor.
                                                                               9

<PAGE>

                        FIRSTBANK CORP. AND SUBSIDIARIES

PART II  -  OTHER INFORMATION

Item 1 - Legal Proceedings

There are no material legal proceedings to which the Company or the Savings Bank
is a party or of which any of their property is subject.  From time to time, the
Savings Bank is a party to various legal proceedings incident to its business.

Item 2 - Changes in Securities and Use of Proceeds

     None.

Item 3 - Defaults upon Senior Securities

     Not applicable.

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)  Exhibits:
         3.1     Articles of Incorporation of the Registrant*
         3.2     Bylaws of the Registrant*
        10.1     Employment  Agreement between FirstBank  Northwest , FirstBank
                 Corp. and Clyde E. Conklin*
        10.2     Salary  Continuation  Agreement  between First Federal Bank of
                 Idaho, F.S.B. and Clyde E. Conklin*
        10.3     Salary  Continuation  Agreement  between First Federal Bank of
                 Idaho, F.S.B. and Larry K. Moxley*
        10.4     FirstBank Northwest Employee Stock Ownership Plan***
        10.5     FirstBank Northwest 1998 Stock Option Plan****
        10.6     FirstBank  Northwest  Management  Recognition  and Development
                 Plan****
        27       Financial Data Schedule

*     Incorporated by reference to the Registrant's  Registration  Statement on
      Form SB-2 (File No. 333-23395)
***   Incorporated  by  reference  to the  Registrant's  Annual  Report on Form
      10-KSB for the Year Ended March 31, 1997 (File No. 0-22435)
****  Incorporated  by reference to the  Registrants  Quarterly  Report on Form
      10-QSB for the Quarter Ended September 30, 1998.

    (b)  Reports on Form 8-K;  No reports on Form 8-K have been filed  during
          the quarter for which this report is filed.

                                                                              10

<PAGE>

                                   SIGNATURES


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


                                  FIRSTBANK CORP.


DATED:  February 4, 1999          BY: /s/ CLYDE E. CONKLIN
                                     -------------------------------------------
                                          Clyde E. Conklin
                                          President and Chief Executive Officer

                                  BY: /s/ LARRY K. MOXLEY
                                     -------------------------------------------
                                          Larry K. Moxley
                                          Secretary and Chief Financial Officer

                                                                              11