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 JUNE 30, 1999


       ( ) 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)

              (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 1,664,688 shares outstanding on June 30, 1999

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 June 30, 1999 and March 31, 1999                           1
       Consolidated Statements of Income
           For the three months ended June 30, 1999 and June 30, 1998       2
       Consolidated Statements of Cash Flows
           For the three months ended June 30, 1999 and June 30, 1998       3
       Consolidated Statements of Comprehensive Income
           For the three months ended June 30, 1999 and June 30, 1998       4
       Notes to Consolidated Financial Statements                           5

Item   2. Management's Discussion and Analysis of Financial
          Condition and Results of Operations                             6 - 8



PART II.  OTHER INFORMATION

Item   1. Legal Proceedings                                                 9
Item   2. Changes in Securities                                             9
Item   3. Defaults Upon Senior Securities                                   9
Item   4. Submission of Matters to a Vote of Security Holders               9
Item   5. Other Information                                                 9
Item   6. Exhibits and Reports on Form 8-K                                  9


<PAGE>

PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

<TABLE>
<CAPTION>
                                      FirstBank Corp. and Subsidiaries
                               Consolidated Statements of Financial Condition

                                                                                  At June 30,      At March 31,
                                                                                     1999              1999
                                                                                 -------------    -------------
                                                                                           (Unaudited)
<S>                                                                              <C>              <C>
ASSETS
Cash and cash equivalents:
  Non-interest bearing deposits                                                  $   3,659,538    $   4,724,214
  Interest bearing deposits                                                          3,364,691        1,502,672
  Federal funds sold                                                                 2,740,769        2,308,776
                                                                                 -------------    -------------
Total cash and cash equivalents                                                      9,764,998        8,535,662

Investment securities:
  Held-to-maturity                                                                     450,000          700,000
  Available-for-sale                                                                 6,936,068        6,535,812
Mortgage-backed securities:
  Held-to-maturity                                                                   2,634,667        2,738,545
  Available-for-sale                                                                 8,985,782       10,134,850
Loans receivable, net                                                              177,840,801      165,617,367
Accrued interest receivable                                                          2,200,127        1,610,676
Real estate owned                                                                       43,876          298,713
Stock in FHLB, at cost                                                               3,001,175        2,501,975
Premises and equipment, net                                                          5,697,467        5,328,788
Income taxes receivable                                                                     --           25,431
Cash surrender value of life insurance policies                                      1,605,523        1,586,210
Mortgage servicing assets                                                              936,155          900,271
Other assets                                                                           380,913          230,786
                                                                                 -------------    -------------
TOTAL ASSETS                                                                     $ 220,477,552    $ 206,745,086
                                                                                 =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
  Deposits                                                                       $ 136,354,491    $ 133,278,136
  Advances from borrowers for taxes and insurance                                      825,827        1,427,915
  Income taxes payable                                                                 116,352               --
  Advances from FHLB                                                                54,480,856       42,027,106
  Deferred federal and state income taxes                                              290,460          421,000
  Accrued expenses and other liabilities                                             1,189,225        1,816,435
                                                                                 -------------    -------------
Total Liabilities                                                                  193,257,211      178,970,592
                                                                                 -------------    -------------

Stockholders' Equity (Note 2):
  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 and outstanding                                                     19,838           19,838
  Additional paid-in-capital                                                        18,720,476       18,720,476
  Retained earnings, substantially restricted                                       14,060,736       13,907,562
  Unearned ESOP shares (Note 3):                                                    (1,384,070)      (1,384,070)
  Deferred compensation                                                             (1,045,436)      (1,108,162)
  Treasury stock, at cost, 187,461 and  144,191 shares                              (2,977,206)      (2,333,706)
  Accumulated other comprehensive loss                                                (173,997)         (47,444)
                                                                                 -------------    -------------
Total Stockholders' Equity                                                          27,200,341       27,774,494
                                                                                 -------------    -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $ 220,477,552    $ 206,745,086
                                                                                 =============    =============

See accompanying notes to consolidated financial statements

                                                                                                              1
</TABLE>

<PAGE>


                        FirstBank Corp. and Subsidiaries
                        Consolidated Statements of Income


                                                    Three months ended June 30,
                                                        1999          1998
                                                      ----------   ----------
                                                            (Unaudited)
Interest income:
  Loans receivable                                    $3,683,904   $3,188,642
  Mortgage-backed securities                             152,863      168,078
  Investment securities                                   83,134       67,795
  Other interest earning assets                          157,352      160,808
                                                      ----------   ----------
Total interest income                                  4,077,253    3,585,323

Interest expense:
  Deposits                                             1,230,567    1,219,432
  Advances from FHLB                                     672,006      525,412
                                                      ----------   ----------
Total interest expense                                 1,902,573    1,744,844

Net interest income                                    2,174,680    1,840,479
Provision for loan losses                                134,127      135,736
                                                      ----------   ----------
Net interest income after provision for loan losses     2,040553    1,704,743

Non-interest income:
  Gain on sale of loans                                  248,785      443,954
  Service fees and charges                               294,003      331,390
  Commissions and other                                   23,773       39,637
                                                      ----------   ----------
Total non-interest income                                566,561      814,981

Non-interest expense:
  Compensation and related benefits                    1,211,895      949,885
  Occupancy                                              228,873      215,020
  Other                                                  712,066      656,590
                                                      ----------   ----------
Total non-interest expense                             2,152,834    1,821,495

Income before income tax expense                         454,280      698,229
Income tax expense                                       162,582      247,651
                                                      ----------   ----------
NET INCOME                                            $  291,698   $  450,578
                                                      ==========   ==========

Earnings per share (Note 2):
  Net income per share - basic                        $     0.18   $     0.25
  Net income per share - diluted                      $     0.17   $     0.25
  Weighted average shares outstanding - basic          1,599,984    1,838,562
  Weighted average shares outstanding - diluted        1,679,334    1,838,562


See accompanying notes to consolidated financial statements

                                                                            2
<PAGE>

<TABLE>
<CAPTION>
                                       FirstBank Corp. and Subsidiaries,
                                     Consolidated Statements of Cash Flows

                                                                                  Three months ended June 30,
                                                                                      1999            1998
                                                                                  ------------    ------------
                                                                                           (Unaudited)
<S>                                                                               <C>             <C>
Cash flows from operating activities:
  Net income                                                                      $    291,698    $    450,578
  Adjustments to reconcile net income to net cash used in operating activities:
    Depreciation and amortization                                                       92,325         162,058
    Provision for loan losses                                                          134,127         135,736
    Gain on sale of loans                                                             (248,785)       (443,954)
    FHLB stock dividends                                                               (47,672)        (40,700)
    ESOP compensation expense                                                               --         100,561
    Other (gains) losses, net                                                           17,167          50,465
    Provision for real estate owned                                                         --          20,410
    Deferred compensation expense                                                       79,844          17,731
    Deferred income taxes                                                              (48,672)        (29,579)
    Changes in assets and liabilities:
    Accrued interest receivable and other assets                                      (775,462)       (437,425)
    Accrued expenses and other liabilities                                            (644,328)       (898,914)
    Loss on sale of investment securities: available-for-sale                               --              --
    Income taxes receivable (payable)                                                  141,783         409,378
                                                                                  ------------    ------------
Net cash used in operating activities                                               (1,007,975)       (503,655)

Cash flows from investing activities:
  Purchase of mortgage-backed securities; available-for-sale                                --        (750,000)
  Proceeds from maturities of mortgage-backed securities; held-to-maturity             100,532         100,009
  Proceeds from maturities of mortgage-backed securities; available-for-sale         1,178,592         993,648
  Decrease in loans receivable from loans sold                                      23,986,548      20,845,679
  Other net change in loans receivable                                             (36,095,324)    (31,701,556)
  Purchase of FHLB stock                                                              (451,528)        (15,400)
  Purchases of premises and equipment                                                 (503,285)       (193,013)
  Proceeds from sale of fixed assets                                                        --         336,357
  Net increase in cash surrender value of life insurance policies                      (19,313)       (129,211)
  Proceeds from sale of real estate owned                                              237,670         353,984
  Purchase of investment securities; available for sale                               (595,000)       (580,000)
  Proceeds from maturities of investment securities; held-to-maturity                  252,426         750,000
                                                                                  ------------    ------------
Net cash used in investing activities                                              (11,908,682)     (9,989,503)

Cash flows from financing activities:
  Cash paid for dividends                                                             (138,524)       (146,902)
  Net increase in deposits                                                           3,076,355       5,465,590
  Advances from borrowers for taxes and insurance                                     (602,088)       (601,480)
  Advances from FHLB                                                                54,813,335      33,600,000
  Payments on advances from FHLB                                                   (42,359,585)    (27,053,473)
  Treasury stock repurchase                                                           (643,500)             --
                                                                                  ------------    ------------
Net cash provided by financing activities                                           14,145,993      11,263,735

Net increase in cash and cash equivalents                                            1,229,336         770,577

Cash and cash equivalents, beginning of period                                       8,535,662       8,416,820
                                                                                  ------------    ------------
Cash and cash equivalents, end of period                                          $  9,764,998    $  9,187,397
                                                                                  ============    ============

Supplemental disclosures of cash flow information:
  Cash paid during the period for:
     Interest                                                                     $  1,215,997    $  1,748,619
     Income taxes                                                                 $     25,000    $     18,934
  Noncash investing and financing activities:
     Unrealized (gains) losses on securities; available-for-sale, net of tax      $    152,445    $     21,552
     Loans receivable charged to the allowance for loan losses                    $     17,575    $     20,761
     Transfer from loans converted to real estate acquired through foreclosure    $         --    $    195,767


See accompanying notes to consolidated financial statements

                                                                                                             3
</TABLE>

<PAGE>


<TABLE>
<CAPTION>
                               FirstBank Corp. and Subsidiaries
                       Consolidated Statements of Comprehensive Income


                                                                  Three Months Ended June 30,
                                                                      1999            1998
                                                                    ---------       --------
                                                                           (Unaudited)
<S>                                                                 <C>             <C>
     Net Income                                                     $ 291,698       $450,578
     Other comprehensive income (loss), net of tax:
            Change in unrealized gains (losses) on securities;
              available-for-sale, net of tax                         (126,553)       (21,552)
                                                                    ---------       --------

            Net other comprehensive income (loss)                    (126,553)       (21,552)
                                                                    ---------       --------
     Comprehensive income                                           $ 165,145       $429,026
                                                                    =========       ========

See accompanying notes to consolidated financial statements

                                                                                           4
</TABLE>

<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,
1999.  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  months ended June 30, 1999
are not  necessarily  indicative  of results that may be expected for the entire
fiscal year ending March 31, 2000.

The  unaudited  consolidated  financial  statements  of  FirstBank  Corp.  ("the
Company")  include  the  accounts  of  its  wholly-owned  subsidiary,  FirstBank
Northwest  (the  "Savings  Bank")  and  it's  wholly-owned  subsidiary,  TriStar
Financial  Corporation for the three months ended June 30, 1999. All significant
intercompany accounts and transactions have been eliminated in consolidation.

(2)     EARNINGS PER SHARE

Earnings  per share  ("EPS") is computed by  dividing  net income  (loss) by the
weighted  average  number  of  common  shares  outstanding  in  accordance  with
Statement of Financial Accounting Standards No. 128, "Earnings Per Share".

The following table reconciles the number of common shares used in the basic and
diluted EPS calculations:

                                  For the Three Months Ended June 30, 1999
                                  ----------------------------------------
                                                 Weighted-
                                     Net          Average      Per-Share
                                    Income        Shares        Amount
                                   ---------     ---------     --------
Basic EPS:
  Income available to common
    stockholders                   $ 291,698     1,599,984     $   0.18

  Effect of dilutive securities:
    Restricted stock awards               --        79,350           --
                                   ---------     ---------     --------

Diluted EPS:
  Income available to common
    stockholders - assumed
    conversions                    $ 291,698     1,679,334     $   0.17
                                   =========     =========     ========


At June  30,  1999,  outstanding  options  to  purchase  171,350  shares  of the
Company's  common stock were not included in the  computation  of diluted EPS as
their effect would have been antidilutive.

At  June  30,  1998,  the  Company  had  no  dilutive  potential  common  stock.
Accordingly,  basic and diluted EPS are the same for the three months ended June
30, 1999.

(3)     DIVIDEND

On April 15, 1999 the Board of Directors  declared a cash  dividend of $0.09 per
common share to  shareholders of record as of May 6, 1999. The dividend was paid
on May 20, 1999. On July 21, 1999 the Board of Directors  declared  another cash
dividend of $0.09 per common  share to  shareholders  of record as of August 12,
1999. This dividend will be paid on August 26, 1999.

                                                                               5
<PAGE>

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, 1999.

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 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 quarter ended June 30, 1999, the Company  completed the repurchase of
approximately  5%, or 89,297,  of its common shares.  In Fiscal 1999 the Company
completed a repurchase of 177,744 common shares.

During the second quarter of fiscal 2000, the  shareholders  approved the change
the state of incorporation from Delware to Washington.

On September 21, 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 fall of 1999.  The annual  lease
expense  for  the  land  is  $30,000,  and  the  expected  capitalized  cost  of
construction is $750,000.

In March 1999,  the Company opened its first branch office inside a supermarket.
The new branch is 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 FirstBank's  eighth branch and employs a staff of  approximately  four
people. The annual lease expense is $27,000 and capitalized costs were $104,000.

FINANCIAL CONDITION AT JUNE 30, 1999 AND MARCH 31, 1999

Assets of the Company  increased from $206.7 million at March 31, 1999 to $220.5
million at June 30, 1999. Cash and cash equivalents  increased from $8.5 million
at March 31, 1999 to $9.8 million at June 30, 1999.  Mortgage-backed  securities
available-for-sale  decreased  from  $10.1  million  at March  31,  1999 to $9.0
million at June 30, 1999.  Loans  receivable,  increased  from $165.6 million at
March 31, 1999 to $177.8  million at June 30, 1999 as a result of an increase in
agricultural  operating  lending  of $3.0  million,  home  equity  loans of $2.3
million, extended agricultural lines of credit of $1.8 million, and $1.2 million
in residential real estate lending.  Accrued interest receivable  increased $1.6
million  at March  31,  1999 to $2.2  million  at June 30,  1999 due to a higher
average  asset base in  securities  and loans.  Deposits  increased  from $133.3
million at March 31, 1999 to $136.4  million at June 30, 1999,  as a result of a
$2.5 million  increase in checking  accounts.  Federal Home Loan Bank of Seattle
(FHLB) advances  increased from $42.0 million at March 31, 1999 to $54.5 million
at June 30, 1999.  The increase in deposits and FHLB  borrowing was used to fund
loan growth.  Accrued expenses and other liabilities decreased from $1.8 million
at March 31,  1999 to $1.2  million  at June 30,  1999.  It is the policy of the
Savings  Bank to cease  accruing  interest  on loans 90 days or more  past  due.
Nonaccrual  loans  decreased from $612,000 at March 31, 1999 to $293,000 at June
30, 1999.

                                                                               6
<PAGE>

RESULTS OF OPERATIONS FOR THREE MONTHS ENDED JUNE 30, 1999 AND 1998

Net income  decreased  from $451,000 for the three months ended June 30, 1998 to
$292,000 for the three months ended June 30, 1999.

Net interest income  increased from $1.8 million for the three months ended June
30,  1998 to $2.2  million  for the three  months  ended  June 30,  1999.  Total
interest income  increased from $3.6 million for the three months ended June 30,
1998 to $4.1  million for three  months  ended June 30,  1999.  The  increase in
interest income stemmed from an increase in average interest earning offset by a
decrease in the weighted  average tax effected  yield on the loan  portfolio was
8.65% as of June 30, 1998 compared to the weighted average tax effected yield at
June 30, 1999 of 8.58%.  The average  balance  for loans  receivable  was $150.0
million in the quarter  ended June 30, 1998  compared to the quarter  ended June
30, 1999 average  balance of $171.8  million.  Interest  income from  investment
securities  increased  from  $68,000 for the three months ended June 30, 1998 to
$83,000 for the three months ended June 30, 1999.  The increase is primarily due
to a increase in average yield. Interest income from mortgage-backed  securities
decreased from $168,000 for the three months ended June 30, 1998 to $153,000 for
the three months ended June 30, 1999.  The decrease is due primarily to a higher
average balance and a lower yield.  Interest expense increased from $1.7 million
for the three  months  ended  June 30,  1998 to $1.9  million  for the same time
period in 1999.  The  increase in interest  expense is due  primarily  to higher
average deposit balances, an increase in average FHLB advances and a decrease in
weighted  average  rates.  The  weighted  average rate on deposits for the three
months  ended June 30, 1999 was 3.72%,  whereas  the  weighted  average  rate on
deposits  as of June 30,  1998 was  4.17%.  The  weighted  average  rate on FHLB
advances  for the three  months  ended  June 30,  1999 was  5.38%,  whereas  the
weighted  average rate on FHLB advances for three months ended June 30, 1998 was
5.70%.

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 $136,000 for the three months
ended June 30, 1998 to $134,000 for the three  months  ended June 30, 1999.  The
loans  receivable  portfolio  increased  about $12.2 million dollars in the last
quarter, of which approximately $4.7 million was in consumer lending.

Non-interest  income decreased from $815,000 for the three months ended June 30,
1998 to $567,000 for the three months  ended June 30, 1999.  The primary  reason
for the increase is the gain on sale of loans decreased about $195,000.

Non-interest expense increased from $1.8 million for the three months ended June
30, 1998 to $2.2 million for the three months ended June 30, 1999.  The increase
in compensation  and other related  expenses of $262,000 is caused by additional
staff for new branches and  compensation  related to the Management  Recognition
and Development Plan. Other expenses that were up are data processing increasing
by $86,000, and other start-up expenses associated with opening new branches.

Income  taxes  decreased  from an expense of $248,000 for the three months ended
June 30, 1998 to expense of $163,000 for the same time period in 1999.

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 June 30, 1999, cash and cash
equivalents  totaled $9.8  million,  or 4.4% 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
$54.5 million at June 30, 1999.

         The primary  investing  activity of the Company is the  origination  of
mortgage  loans.  During the quarters  ended June 30, 1998 and 1999, the Company
originated loans in the amounts of $40.3 million and $45.7 million respectively.
At June 30,  1999,  the Company had loan  commitments  totaling  $27.7  million,
undisbursed  lines of  credit  totaling  $6.0  million,  credit  card  available
balances of $1.0 million and undisbursed loans in process totaling $4.1 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  June 30,  1999  totaled  $57.3  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.

                                                                               7
<PAGE>

         The Bank is required to maintain  specific  amounts of capital pursuant
to the FDIC and the State of Washington  requirements.  As of June 30, 1999, the
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 10.65%,
13.96%,  and  13.85%,  respectively.  For a detailed  discussion  of  regulatory
capital  requirements,  see "REGULATION -- State Regulation and Supervision" and
"-- Capital Requirements."


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.  The
Company has  developed a plan and created a committee  of the Board of Directors
to analyze  how the Year 2000 will  impact  its  operations  and to monitor  the
status of its vendors. The following guidelines identify the five steps provided
by The Federal Financial Institutions Examination Council ("FFIEC"):

         Awareness  Phase - Define the Year 2000  problem  and  establish a Year
2000 program  team and overall  strategy.  The Company as of September  30, 1997
completed this step.

         Assessment  Phase - Assess the size and  complexity  of the problem and
detail the magnitude of effort necessary to address Year 2000 issues,  including
hardware,  software,  networks,  automated teller  machines,  etc. This step was
approximately 99% complete by June 30, 1999 and assessment will be ongoing until
the Year 2000.

         Renovation Phase - This phase includes  hardware and software  upgrades
and system  replacements.  This step was 100%  complete for in-house  systems at
December 31, 1998.  This phase also  encompasses  ongoing  discussions  with and
monitoring of outside servicers and third- party software providers.

         Validation/Testing  Phase - This process  includes  testing of hardware
and software components. Testing is completed by performing extensive tests with
the  computer  dates  changed to January 1, 2, and 3, 2000.  Such  testing  will
continue  through June 30, 1999, with the most critical  functions tested first.
This allows time to correct any discovered  deficiencies before the end of 1999.
In-house systems and third party service bureaus are 100% tested as of March 31,
1999.  The Company is either  testing or reviewing  test documents of additional
third party vendors that are deemed  critical to the  operations of the Company.
The validation phase was approximately 95% complete as of June 30, 1999.

         Implementation Phase - Systems successfully tested will be certified as
Year 2000 compliant.  For any system failing  validation  testing,  the business
impact must be  assessed  and a  contingency  plan  implemented.  This phase was
completed by June 30, 1999.

         Critical  data  processing  applications  have been  identified.  These
include  applications such as electronic  processing through the Federal Reserve
Bank and ATM  processing.  Testing  with Federal  Reserve has been  successfully
completed.  All ATM machines have been upgraded and are now ready for Year 2000.
Contingency  plans are also being  developed by the committee.  The  contingency
plans address actions to be taken to continue  operations in the event of system
failure due to areas that cannot be tested in  advance,  such as power  service,
which are vital to business continuation.  Contingency planning was completed by
June 30, 1999.

         All new  commercial and  agricultural  loans over $100,000 are assessed
for Year 2000  risk.  Loans are then rated  low,  medium or high risk.  A higher
reserve level will be maintained  for medium and high-risk  loans.  All existing
commercial and agriculture  loans over $100,000 have been rated: 1 loan rated at
the highest risk and 12 at medium risk.

         The Bank has assessed its  liquidity  needs and believes  there will be
adequate funds available from FHLB or the Portland Federal Reserve.

         In June 1999,  the Bank  converted from a service bureau to an in-house
computer system.  This system will be a client/server  system that was developed
from  1992  to  1996  with  Year  2000  compliance  as a  priority.  Part of the
conversion process was to test the interfaces to outside vendors. The Bank has a
complete  separate  system set up solely for the  purpose of Year 2000  testing.
Test scripts were ran in June after the conversion.  There were no problems with
changing to the Year 2000 test dates.

         There can be no guarantee that the systems of other  companies on which
the Banks systems rely will be fully functional,  or timely converted, or that a
failure to convert by another company, or a conversion that is incompatible with
the Banks systems would not have a material adverse effect on the Bank. However,
the Bank has tested  for the Y2K  preparedness  of all  internal  functions  and
external functions provided by third parties whenever possible and do not expect
to experience any significant  failures.  In addition,  contingency or alternate
sources of support  have been  identified  for each  critical  function and many
non-critical  functions.  In the event that the Banks data processing providers'
systems  prove  not to be Y2K  compliant  and FBNW is not able to  switch  to an
alternative provider in a timely manner,  resulting computer  malfunctions could
interrupt the  operations of the Bank and have a significant  adverse  effect on
FBNW's financial condition and results of operations.

                                                                               8
<PAGE>

                              FIRSTBANK CORPORATION

PART II  -  OTHER INFORMATION

Item 1 - Legal Proceeding

     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

     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     Employment   Agreement  between  FirstBank  Northwest,
                          FirstBank Corp. and Larry K. Moxley*
                 10.3     Salary  Continuation  Agreement  between First Federal
                          Bank of Idaho F.S.B. and Clyde E. Conklin*
                 10.4     Salary  Continuation  Agreement  between First Federal
                          Bank of Idaho, F.S.B. and Larry K. Moxley*
                 21       Subsidiaries of the Registrant
                 27       Financial Data Schedule


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

                                                                               9
<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:  August 12, 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

                                                                              10