SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 10549

                                   FORM 10-KSB
(Mark One)
{X}  Annual report  pursuant to Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 (fee required) for the fiscal year ended December 31, 2001 or

{ }  Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange  Act of 1934 (no fee  required)  for the  transition  period  from
     __________ to __________

                         Commission File Number 0-19181

                          HURON NATIONAL BANCORP, INC.

                                    MICHIGAN
         (State or other jurisdiction of incorporation or organization)

                                   38-2855012
                        (IRS Employer Identification No.)

                200 East Erie Street, Rogers City, Michigan 49779
           (Address of principal executive offices including zip code)
                                 (989) 734-4734
              (Registrant's telephone number, including area code)

               Securities registered pursuant to 12(b) of the Act:
      Title of each class            Name of each exchange on which registered
             NONE                                      NONE
           Securities Registered Pursuant to Section 12(g) of the Act:
                    Common Stock, par value $10.00 per share
                                (Title of Class)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12 months  (or for such  shorter  period if the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes {X} No { }

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of Registrant's  knowledge,  in definitive proxy or information  statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. {X}

The aggregate market value of the voting stock held by  "non-affiliates"  of the
Registrant  (for this purpose only, the  affiliates of the Registrant  have been
assumed to be the executive  officers and directors of the  Registrant and their
associates) as of March 15, 2002, was approximately $2,297,568,  based on market
price of $52.00 per share.

As of March 15, 2002, there were  outstanding  62,500 shares of the registrant's
common stock.

DOCUMENTS INCORPORATED BY REFERENCE

Certain  portions of the Company's  Annual Report to Shareholders for the fiscal
year ended December 31, 2001, are incorporated by reference into Part I and Part
II of this Form 10-KSB Report.  Portions of the Registrant's Proxy Statement for
its Annual Meeting of Shareholders  to be held April 24, 2002, are  incorporated
by reference into Part III of this Form 10-KSB Report.
<PAGE>
                                     PART I
ITEM 1 - BUSINESS

GENERAL

The Registrant,  Huron National Bancorp,  Inc.  (hereinafter  referred to as the
"Registrant"),  is a one-bank holding company  registered under the Bank Holding
Company Act of 1956, as amended.  The  Registrant  was formed for the purpose of
enabling Huron National Bank  (hereinafter  referred to as the "Bank") to form a
one-bank  holding  company.  The Bank became a  wholly-owned  subsidiary  of the
Registrant on May 8, 1990. The  Registrant's  only  subsidiary  and  significant
asset as of December 31, 2001 is the Bank.  The  Registrant  and its  subsidiary
operate in the Banking  industry,  which accounts for substantially all of their
assets, revenues and operating income.

The  Bank  was  organized  in 1980  under  the laws of the  United  States.  Its
deposits,  to the extent  allowed by law,  are  insured by the  Federal  Deposit
Insurance  Corporation.  The  Bank's  main  office is  located  at 200 East Erie
Street, Rogers City, Michigan.

Further  discussion  of the  Registrant's  business is presented in the Business
section on page 8 in the 2001 Annual Report to Shareholders, incorporated herein
by reference.

REGULATION

The  Registrant  is  subject to  supervision  by the Board of  Governors  of the
Federal Reserve System. The Board of Governors must grant prior approval for the
acquisition by a banking  holding company of more than 5% of the voting stock or
substantially  all the assets of any bank or bank  holding  company or  non-bank
company.

In approving  proposed  acquisitions by the  Registrant,  the Board of Governors
considers a number of factors including  expected benefits to the public such as
greater  convenience,  increased  competition  or gains in  efficiency,  weighed
against the risk of possible  adverse  effects  such as undue  concentration  of
resources,  decreased or unfair competition,  conflicts of interest,  or unsound
banking  practices.  The Board of Governors  is empowered to give these  factors
different  weight in the case of  activities  commenced  de novo than it does in
considering the acquisition of a going concern.

The Bank is subject to regulation,  supervision  and regular  examination by the
Officer of the  Comptroller  of the  Currency.  The  regulations  of this agency
affect most aspects of the Bank's business and prescribed  permissible  types of
loans and investments, requirements for branch offices, the permissible scope of
the Bank's activities and impose various other requirements.

A holding  company,  and any of its subsidiary  banks,  are also prohibited from
engaging in certain  tie-in  arrangements  in  connection  with the extension of
credit or supplying of property or services. For example, the Bank generally may
not extend  credit on the  condition  that the customer  obtain some  additional
service from the Bank or the  Registrant or refrain from  obtaining such service
from a competitor.

The Bank is subject to certain  restrictions  imposed by the Federal Reserve Act
on "covered  transactions"  with the  Registrant or a  subsidiary.  The "covered
transactions"  that an insured bank and its subsidiaries are permitted to engage
in with their nonbank  affiliates are limited to the following  amounts:  (i) in
the  case  of  any  one  such  affiliate,   the  aggregate  amount  of  "covered
transactions" of the insured bank and its subsidiaries  cannot exceed 10% of the
capital  stock and  surplus  of the  insured  bank;  and (ii) in the case of all
affiliates,  the aggregate amount of all "covered  transactions:  of the insured
bank and its subsidiaries  cannot exceed 20% of the capital stock and surplus of
the insured  bank.  "Covered  transactions:  are defined by statute to include a
loan or extension of credit to the affiliate, a purchase of securities issued by
an affiliate, a purchase of assets from the affiliate (unless otherwise exempted
by the Federal Reserve), the acceptance of securities issued by the affiliate as
collateral for a loan, and the issuance of a guaranty,  acceptance, or letter of
credit  for the  benefit  of an  affiliate.  Covered  transactions  must also be
collateralized.

                                      -1-
<PAGE>
PART-I    ITEM 1 - BUSINESS

REGULATION (continued)

The Federal Reserve Act further  requires that (i) "covered  transactions"  with
affiliates; (ii) asset sales to affiliates;  (iii) contractual arrangements with
affiliates;  (iv) transactions in which an affiliate acts as an agent or broker;
and (v) any  transaction in which an affiliate has a financial  interest or is a
participant,  must be made:  (x) on terms  and  under  circumstances,  including
credit  standards,  that are  substantially  the same as those prevailing at the
time  for  comparable   transactions  with  or  involving  other   nonaffiliated
companies; or (y) in the absence of comparable transactions,  on terms and under
circumstances,  including credit standards,  that in good faith would be offered
to,  or  would  apply  to,  nonaffiliated  companies.  Certain  limitations  and
reporting  requirements  are also placed on  extensions of credit by the Bank to
its  directors and officers,  to directors  and officers of the  Registrant,  to
principal  shareholders  of the Registrant,  and to "related  interests" of such
directors,  officers and principal  shareholders.  In addition, such legislation
and  regulations  may affect the terms upon which any person becoming a director
or officer  of the  Registrant  or the Bank or a  principal  shareholder  of the
Registrant  may  obtain  credit  from  banks  with  which the Bank  maintains  a
correspondent relationship.

On July 10,  1995,  the FDIC,  the  Office of Thrift  Supervision,  the  Federal
Reserve  and the  Office of the  Comptroller  of the  Currency  published  final
guidelines  implementing the Federal Deposit Insurance  Corporation  Improvement
Act (FDICIA) requirement that the federal banking agencies establish operational
and  managerial  standards  to promote  the safety and  soundness  of  federally
insured depository institutions.  The guidelines, which took effect on August 9,
1995, establish standards for internal controls,  information systems,  internal
audit systems, loan documentation,  credit underwriting, interest rate exposure,
asset growth, and compensation,  fees and benefits.  In general,  the guidelines
prescribe  the  goals to be  achieved  in each  area,  and each  institution  is
responsible  for  establishing  its own procedures to achieve those goals. If an
institution  fails  to  comply  with  any  of the  standards  set  forth  in the
guidelines,   the  institution's  primary  federal  regulator  may  require  the
institution  to submit a plan for  achieving  and  maintaining  compliance.  The
preamble  to the  guidelines  states  that the  agencies  expect  to  require  a
compliance  plan from an  institution  whose  failure to meet one or more of the
standards  is of such  severity  that it  could  threaten  the  safe  and  sound
operation of the institution.  Failure to submit an acceptable  compliance plan,
or  failure  to  adhere  to a  compliance  plan  that has been  accepted  by the
appropriate regulator,  would constitute grounds for further enforcement action.
The federal  banking  agencies have also  published for comment  proposed  asset
quality and earnings  standards which, if adopted,  would be added to the safety
and soundness guidelines.  This proposal, like the final guidelines,  would make
each depository  institution  responsible for establishing its own procedures to
meet such goals.

The  Gramm-Leach-Bliley  Act of  1999  (the  "GLB  Act"),  modifies  many of the
principal federal laws which regulate  financial  institutions and removes large
parts of a regulatory  framework  that had its origins in the  Depression Era of
the 1930's.

Effective  March  11,  2000,  new  opportunities   were  available  for  banking
organizations, other depository institutions, insurance companies and securities
firms to enter  into  combinations  that  permit  a  single  financial  services
organization   to  offer   customers  more  financial   products  and  services.
Specifically,  the GLB Act  provides two new  vehicles  through  which a banking
organization  can engage in.  First,  a bank  holding  company  meeting  certain
requirements may elect to become a financial  holding company ("FHC").  FHCs are
generally authorized to engage in all "financial  activities" and, under certain
circumstances,  to make equity  investments in other companies  (i.e.,  merchant
banking).  In order to be  eligible  to elect to  become a FHC,  a bank  holding
company and all of its  depository  financial  institutions  must:  (1) be "well
capitalized";  (2) be "well managed"; and (3) have a rating of "satisfactory" or
better in their most recent Community  Reinvestment  Act  examination.  Both the
bank holding company and all of its depository financial  institutions must also
continue to satisfy these  requirements after the bank holding company elects to
become  a FHC or else the FHC  will be  subject  to  various  restrictions.  The
Federal  Reserve Board will be the umbrella  regulator of FHCs,  but  functional
regulations of a FHC's separately  regulated  subsidiaries  will be conducted by
their primary functional regulator.

                                      -2-
<PAGE>
PART-I    ITEM 1 - BUSINESS

REGULATION (continued)

satisfies  certain  requirements,  may own a new  type of  subsidiary  called  a
financial  subsidiary  ("FS"). The GLB Act authorizes FSs to engage in many (but
not all) of the activities that FHCs are authorized to engage in. In order to be
eligible to own a FS, a bank must  satisfy the three  requirements  noted above,
plus several additiona requirements.

The GLB Act also imposes  several rules that are designed to protect the privacy
of the customers of financial  institutions.  For example,  the GLB Act requires
financial  institutions to adopt and  disseminate  annually a privacy policy and
prohibits financial institutions from disclosing certain customer information to
"non-affiliated  third  parties" for certain uses.  All financial  institutions,
regardless  of whether they elect to utilize FHCs or FSs, are subject to the GLB
Act's privacy provisions. The Registrant and the Bank is also subject to certain
state  laws  that  deal  with the use and  distribution  of  nonpublic  personal
information.  In addition to its privacy  provisions,  the GLB Act also contains
various  other  provisions  that apply to banking  organizations,  regardless of
whether they elect to utilize FHCs or FSs.

The Registrant and the Bank are currently in compliance with the minimum capital
requirements  applicable  to such  institutions.  Prompted by the  enactment  of
FDICIA,  the FDIC has  established  a system  of  risk-based  deposit  insurance
premiums.  Based on the  Bank's  prevailing  capital  ratios,  the Bank has been
paying the minimum rate of FDIC insurance since the assessment period that began
January 1, 1996.

LENDING ACTIVITIES

The Bank is actively  engaged in originating  within the Bank's market area real
estate mortgage loans,  commercial loans and installment  loans. The Bank's loan
portfolio  totaled  $29,212,819 at December 31, 2001. This represents  66.06% of
its total assets.  At that date, 54.86% consisted of real estate mortgage loans,
30.90% consisted of installment loans and 14.24% consisted of commercial loans.

Residential  Mortgage  Loans:  The Bank offers  residential  mortgage loans with
fixed rates of interest and loans with provision for periodic adjustments to the
interest rate with three-year balloon provisions. The Bank's policy is to invest
in residential  mortgage loans in an original principal amount not to exceed 80%
of  the  market  value  of  the  mortgaged  real  estate  (referred  to  as  the
"loan-to-value ratio").

In the appraisal process, the Bank assesses both the borrower's ability to repay
the loan and the adequacy of the proposed security. In connection therewith, the
Bank obtains an appraisal of the secured property and information concerning the
income, financial condition, employment and credit history of the applicant. The
Bank  requires  title  insurance  insuring the priority of its lien and fire and
extended coverage  casualty  insurance in order to protect the property securing
its real estate loans.

Commercial  Mortgage  Loans:  The Bank makes mortgage  loans on commercial  real
estate  properties  such  as  office  buildings,   vacant  land  and  industrial
buildings, most of which are located in Presque Isle County.

In its underwriting of commercial  property real estate loans, the Bank may lend
up to 80% of the  securing  property's  appraised  value,  although  the  Bank's
loan-to-value  ratio on income producing property real estate loans is generally
75% or less.

Commercial real estate lending is generally  considered to involve a higher risk
than single family residential lending due to the financial  sensitivity of real
estate projects and developers to general  economic  conditions.  In originating
such real estate loans, the Bank endeavors to reduce the risk by considering the
credit of the borrower,  the location of the real estate, and the quality of the
management, construction and administration of the property.

                                      -3-
<PAGE>
PART-I ITEM 1 - BUSINESS (continued)

Installment Loans: The Bank makes various types of installment loans,  including
automobile loans, marine loans,  recreational  vehicle loans, home equity loans,
loans to depositors secured by their deposit accounts, and secured and unsecured
personal loans.  The maturity of installment  loans varies depending on the type
of loan. Home equity, marine and recreational vehicle maturities can be up to 15
years.  Most other types of installment loans have maturities of less than eight
years. The interest rate on the majority of installment loans is fixed.

Commercial  Loans:  The Bank  makes  commercial  loans  (other  than  commercial
mortgage  loans) to  manufacturers,  retailers,  and farmers for the purchase of
equipment,  for working capital and for renovations.  Commercial loans generally
have a higher degree of risk than do mortgage  loans.  While  mortgage loans are
secured  by real  estate  property  the  value  of  which  tends  to be  readily
ascertainable,  commercial  loans  typically  are  made  on  the  basis  of  the
borrower's  ability to make repayment from the cash flow of the business and are
either  unsecured or secured by business  assets,  such as accounts  receivable,
equipment  and  inventory.  As a  result,  the  availability  of  funds  for the
repayment of commercial loans may be substantially dependent upon the success of
the business itself.

COMPETITION

The Bank's primary  market area consists of Presque Isle County,  Michigan where
its sole office is located.  The Bank encounters strong  competition both in the
attraction  of  deposits  and the making of real estate and other  loans.  Huron
National Bank is the only  remaining  community  bank located in Rogers City. In
addition,  the Bank also  competes with a total of four other banks that operate
branches in Presque  Isle County and various  money market funds for deposits in
the Bank's  service  area.  The  principal  methods  used by the Bank to attract
deposit  accounts  include the variety of services  offered,  the interest  rate
offered and the convenience of office location.  The Bank's competition for real
estate and other loans comes from these same financial  insititutions.  The Bank
competes for loans through interest rates,  loan  maturities,  loan fees and the
quality of service extended to borrowers.

In addition to the  financial  institutions  which have  offices in Presque Isle
County,  the Bank competes with several  commercial  banks and savings and loans
institutions in surrounding counties, many of which are larger than the Bank.

Further  discussion  of the  Registrant's  business is presented in the Business
section on page 8 in the 2001 Annual Report to Shareholders  incorporated herein
by reference.

I.      STATISTICAL DISCLOSURE

        (A)  Distribution of Assets, Liabilities and Shareholders' Equity;

        (B)  Interest Rates and Interest Differential

A  table  and  discussion  of  the  Distribution  of  Assets,   Liabilities  and
Shareholders'  Equity  and  Interest  Rates  and  Interest  Differential  is  in
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations"  on pages 3 through 5 under  Analysis of Net Interest  Income in the
2001 Annual Report to Shareholders.  Such information is incorporated  herein by
reference.

                                      -4-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

II.     SECURITIES

    (A)   A table of securities as of December 31, 2001 and 2000 is set forth in
          Note 3 on pages 15 and 16 of the 2001 Annual  Report to  Shareholders.
          Such information is incorporated herein by reference

    (B)   The following table shows the relative  maturities and weighted yields
          of securities at December 31, 2001:
<TABLE>
                                                                   1 Year or Less        1 Year - 5 Years       5 Years - 10 Years
                                                                  Amount    Yield        Amount     Yield        Amount     Yield
                                                                  ------    -----        ------     -----        ------     -----
           <S>                                                   <C>         <C>      <C>           <C>      <C>            <C>
           U.S. Treasury securities and obligations of U.S.
              Government, Corporations and Agencies                                   $ 4,263,231   4.57%      $ 878,213    4.97%
           States and Municipals (1)                             $ 505,635   5.78%      1,734,219   4.35%        721,089    4.02%
           Mortgage-backed                                                                269,984   5.21%
                                                                 ---------   -----    -----------   -----    -----------    -----
                       Totals                                    $ 505,635   5.78%    $ 6,267,434   4.48%    $ 1,599,302    4.54%
                                                                 =========   =====    ===========   =====    ===========    =====
</TABLE>

        (1)  Weighted average yield adjusted to a taxable equivalent basis using
             a federal income tax rate of 34%.

III.  LOAN PORTFOLIO

     (A)  A table and  discussion of the loan  portfolio as of December 31, 2001
          and 2000 is in  Management's  Discussion  and  Analysis  of  Financial
          Condition  and Results of  Operations on pages 7 and 8 under Loans and
          Loan  Review  Process  and in Notes 1 and 4 on pages 13, 14 and 16, in
          the  2001  Annual  Report  to  Shareholders,  incorporated  herein  by
          reference.

     (B)  The following  table sets forth the  remaining  maturity of commercial
          loans at December  31,  2001  according  to  scheduled  repayments  of
          principal.
<TABLE>
                                               1 Year or Less          1 - 3 Years         Total
                                               --------------          -----------         -----
                       <S>                       <C>                    <C>              <C>
                       Commercial loans(1)       $3,915,433             $250,000         $4,165,433
</TABLE>


            (1)     These loans are  disclosed  at their  contractual  maturity,
                    however,  a  significant  number of loans are rolled over at
                    maturity. These rollovers occur because contractual maturity
                    is  short-term  and  provides   management  the  ability  to
                    frequently review the customers' credit worthiness.

     (C)    (1)     Nonaccrual, Past Due and Restructured Loans

     The following table sets forth non-performing loans at December 31:
<TABLE>

                                                                           2001                   2000
                                                                           ----                   ----
       <S>                                                               <C>                     <C>
       Loans accounted for on a nonaccrual basis                         $182,334                $59,849
       Aggregate amount of loans ninety days or more past due
          (excludes loans on nonaccrual status above)                       1,314
                                                                         --------                -------
            Total non-performing loans                                   $183,648                $59,849
                                                                         ========                =======
       Ratio for allowance for loan losses to non-performing loans           .79x                  2.75x
</TABLE>

                                      -5-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

III.  LOAN PORTFOLIO (continued)

     The  accrual  of  interest  is  discontinued  at the point in time at which
     serious  doubt  exists  as to  the  collectibility  of  loan  principal  or
     interest.  Each loan is evaluated on its own merits;  therefore,  loans are
     not   automatically   classified  as  nonaccrual  based  upon  standardized
     criteria.

        (2)    There  are  no  material  loans  that  are  current  as to  which
               management  has serious  doubts as to the ability of the borrower
               to comply with the loan repayment terms, or which are expected to
               need  adjustments in their repayment terms, or which are believed
               to require additional provisions for loan losses.

        (3)    There were no foreign loans  outstanding  as of December 31, 2001
               and 2000.

        (4)    There are no concentrations of loans exceeding 10% of total loans
               which are not already  disclosed  as a category  at December  31,
               2001.

 (D) As of December 31, 2001, there were no other  interest-bearing  assets that
     would be required to be disclosed under Item III, Parts (C)(1) or (C)(2) of
     the Loan Portfolio listing if such assets were loans.

IV.  SUMMARY OF LOAN LOSS EXPERIENCE

 (A) The following  table sets forth  balances and summarizes the changes in the
     allowance for loan losses for each of the years ended December 31:
<TABLE>

                                                                       2001             2000
                                                                       ----             ----
  <S>                                                             <C>              <C>
  Balance of allowance for loan losses at the beginning of year:        $164,618         $181,951
  Charge-offs:            Commercial loans                                20,700
                          Real estate loans
                          Installment loans                                2,699           38,270
                                                                 ---------------   --------------
                               Total charge-offs                          23,399           38,270

  Recoveries:             Commercial loans                                   103              557
                          Real estate loans
                          Installment loans                                3,851           16,380
                                                                 ---------------   --------------
                               Total recoveries                            3,954           16,937

       Net loans charged-off                                              19,445           21,333
  Additions to allowance charged to operating expense                          0            4,000
                                                                 ---------------   --------------
       Balance at end of year                                          $ 145,173        $ 164,618
                                                                 ===============   ==============
  Average gross loans outstanding                                   $ 29,373,000     $ 27,802,000
  Percent of net charge-offs during the period to average
     gross loans outstanding                                               0.07%            0.08%
</TABLE>


Further  discussion  of the  provision  and allowance for loan losses as well as
non-performing  loans is presented in  "Management's  Discussion and Analysis of
Financial  Condition and Results of Operations" on pages 7 and 8 under Loans and
Loan  Review  Process and in Notes 1, 4 and 5 on pages 13, 14 and 16 in the 2001
Annual Report to Shareholders, incorporated herein by reference.

                                      -6-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

IV.  SUMMARY OF LOAN LOSS EXPERIENCE (continued)

 (B) The following table presents an allocation of the allowance for loan losses
     to the various loan categories for each year ended December 31:
<TABLE>
                       (Dollars in thousands)                   2001                                      2000
                                                      Allowance    % of Loans to                Allowance   % of Loans to
                                                        Amount      Total Loans                   Amount     Total Loans
                                                        ------      -----------                   ------     -----------
                       <S>                            <C>            <C>                        <C>           <C>
                       Commercial                      $ 16,757       14.24%                     $ 15,279      13.20%
                       Real estate                       67,612       54.86%                       35,516      57.43%
                       Installment                       32,521       30.90%                       18,763      29.37%
                       Unallocated                       28,283                                    95,060
                                                      ---------      -------                    ---------     -------
                            Total                     $ 145,173      100.00%                    $ 164,618     100.00%
                                                      =========      =======                    =========     =======
</TABLE>


V.     DEPOSITS

 (A) The following  table sets forth average  deposit  balances and the weighted
     average rate paid for the years ended December 31:

<TABLE>
                                                              2001                                      2000
                                                             Average                                   Average
                                                      Balance          Rate                      Balance        Rate
                                                      -------          ----                      -------        ----
         <S>                                        <C>                <C>                    <C>               <C>
         Demand Deposits                            $ 4,582,000        0.00%                  $ 4,411,000       0.00%
         Interest-bearing
            demand deposits                           3,763,000        1.50%                    4,059,000       2.04%
         Savings                                      6,946,010        1.83%                    7,453,469       2.13%
         Time deposits under $100,000                19,355,824        6.14%                   14,725,067       5.83%
         Time deposits over $100,000                  3,271,304        4.50%                    2,659,920       5.55%
                                                   ------------        -----                 ------------       -----
              Total                                $ 37,918,138        4.00%                 $ 33,308,456       3.75%
                                                   ============        =====                 ============       =====
</TABLE>

 (B) The  following  table  summarizes  carrying  balances  of time  deposits in
     amounts of $100,000 or more by time remaining until maturity as of December
     31, 2001:
<TABLE>
                                <S>                                                               <C>
                                (In thousands)
                                Three months or less                                              $ 2,759
                                Over three months through twelve months                               619
                                Over one year                                                         100
                                                                                                  -------
                                     Total                                                        $ 3,478
                                                                                                  =======
</TABLE>

VI.  RETURN ON EQUITY AND ASSETS

     The  following  table  presents  the ratios  indicated  for the years ended
     December 31:
<TABLE>
                                                                                      2001          2000
                                                                                      ----          ----
                                <S>                                                  <C>           <C>
                                Net Income to average assets                          1.02%         1.27%
                                Net Income to average shareholders' equity           11.18%        13.76%
                                Cash dividend payout ratio                           32.79%        29.92%
                                Average shareholders' equity to average total assets  9.11%         9.25%
</TABLE>

                                      -7-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

VII.  SHORT TERM BORROWING

     NONE

VIII.  ADDITIONAL ITEM - EXECUTIVE OFFICERS

     Executive officers of the Registrant are appointed annually by the Board of
     Directors  at the  meeting of  Directors  following  the Annual  Meeting of
     Shareholders. There are no family relationships among these officers and/or
     Directors of the Registrant nor any  arrangement or  understanding  between
     any officer and any other person pursuant to which the officer was elected.

     The  following  sets  forth  certain   information   with  respect  to  the
     Registrant's executive officers as of December 31, 2001:
<TABLE>
                                                                                                  First Elected
              Name (age)                           Position with Registrant                 Officer of the Registrant
              ----------                           ------------------------                 -------------------------
              <S>                                  <C>                                              <C>
              Marvin Beatty (67)                   Chairman                                         1990
              Michael L. Cahoon (68)               President and Chief Executive Officer            1990
              Paulette D. Kierzek (52)             Chief Financial Officer                          1990
</TABLE>


     Mr.  Beatty is a Director of the  Registrant  and  Chairman of the Board of
     Directors of Huron National Bank, a position he has held for more than five
     years.

     Mr. Cahoon is a Director of the  Registrant,  President and Chief Executive
     Officer. He is also and has been a Director,  President and Chief Executive
     Officer of the Bank since 1984.

     Mrs.  Kierzek is the Chief Financial  Officer of the Registrant and Cashier
     and Secretary to the Board of Directors of Huron  National Bank, a position
     she has held for more than five years.

ITEM 2 - DESCRIPTION OF PROPERTY

     The Bank owns the land and building on which the Bank's  office is located,
     200  East  Erie  Street,  Rogers  City.  Michigan.  There  are no  liens or
     mortgages on the above property.

     The  Registrant  operates  its  business at the same  address as the Bank's
     office. No other properties are owned by the Registrant.

ITEM 3 - PENDING LEGAL PROCEEDINGS

     NONE

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

     There were no matters  submitted to a vote of security  holders  during the
     quarter ended December 31, 2001.

                                      -8-
<PAGE>
PART II

The  Registrant's  Annual Report to Shareholders  for the year ended December 1,
2001, is filed as Exhibit 13 to this Form 10-KSB. The following items, which are
contained  in the  Annual  Report  to  Shareholders  on  the  pages  noted,  are
specifically  incorporated  by reference into this Form 10-KSB Report.  With the
exception of such information specifically incorporated by reference, the Annual
Report to Shareholders is not deemed filed as part of this Form 10-KSB Report.

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS

     Information  for this item  appears on page 2 of the 2001 Annual  Report to
     Shareholders and is incorporated herein by reference.

ITEM 6 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

     Information  for this item  appears on pages 3 through 8 of the 2001 Annual
     Report to Shareholders and is incorporated herein by reference.

ITEM 7 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The following  consolidated financial statements appear on pages 9 to 21 in
     the Annual Report to Shareholders  for the year ended December 31, 2001 and
     are incorporated herein by reference:

                   Report of Independent Auditors
                   Consolidated Balance Sheets
                   Consolidated Statements of Income
                   Consolidated Statements of Changes in Shareholders' Equity
                   Consolidated Statements of Cash Flows
                   Notes to the Consolidated Financial Statements

ITEM 8 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
         AND FINANCIAL DISCLOSURE

     NONE

                                    PART III

ITEM 9 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     Information  for  this  item  appears  under  the  headings   "Election  of
     Directors";  "List of Directors  and  Nominees for Election as  Directors";
     "Committees  of the  Board of  Directors"  and  "Section  16(a)  Beneficial
     Ownership Reporting Compliance" in the Registrant's 2001 Proxy Statement as
     filed with the Commision,  incorporated  herein by reference.  In addition,
     reference  is made to  "Additional  Item"  under Part I of this Form 10-KSB
     Report on page 8.

ITEM 10 - EXECUTIVE COMPENSATION

     Information   for  this  item   appears   under  the  heading  of  "Summary
     Compensation  Table" in the Registrant's 2002 Proxy Statement as filed with
     the Commission, incorporated herein by reference.

                                      -9-
<PAGE>
ITEM 11 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     Information for this item appears under the headings of "Principal  Holders
     of  Securities";   and  "Voting  Securities  and  Beneficial  Ownership  of
     Directors and Officers" in the  Registrant's  2001 Proxy Statement as filed
     with the Commission, incorporated herein by reference.

ITEM 12 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     Information for this item appears under the heading of "Other Transactions"
     in the  Registrant's  2002 Proxy  Statement  as filed with the  Commission,
     incorporated herein by reference. In addition,  reference is made to Note 4
     of the Companys' Financial Statements filed under Item 7 of this Report.

ITEM 13 - EXHIBITS AND REPORTS ON FORM 8-K

        3.  Exhibits
               Reference is made to the Exhibit Index on page 12 of this report.

     (b)  Report on Form 8-K
           No reports on Form 8-K were filed during the last quarter of the year
           covered by this report.


                                      -10-
<PAGE>
                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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, on March 19, 2002.


                          HURON NATIONAL BANCORP, INC.


/s/ M. L. Cahoon                                  /s/ Paulette D. Kierzek
Michael L. Cahoon                                 Paulette D. Kierzek
President and Chief Executive Officer             Chief Financial Officer


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been duly signed by the  following  persons in the  capacities  indicated on
March 19, 2001.


/s/ Ervin Nowak                                   /s/ Lynwood Lamb
Ervin Nowak                                       Lynwood Lamb
Director                                          Director


/s/ Marvin Beatty                                 /s/ Leon Delekta
Marvin Beatty                                     Leon Delekta
Chairman of the Board                             Vice Chairman


/s/ Eugene McLean                                 /s/ Michael L. Cahoon
Eugene McLean                                     Michael L. Cahoon
Director                                          Director, President and CEO


______________________________                    ______________________________
Donald Hampton                                    Louis Dehring
Director                                          Director


/s/ John Tierney
John Tierney
Director


/s/ Dale L. Bauer                                 /s/ Paulette D. Kierzek
Dale L. Bauer                                     Paulette D. Kierzek
Vice President                                    Cashier



                                      -11-
<PAGE>
                                INDEX TO EXHIBITS


The following  exhibits are filed or  incorporated  by reference as part of this
report:

        3(i)   Articles of  Incorporation  of the  Registrant  as  currently  in
               effect  and  any  amendments  thereto   (incorporated  herein  by
               reference   to  exhibit  3(A)  of  the   Registrant's   Form  S-4
               Registration Statement dated March 13, 1990, No. 33-33874).

        3(ii)  Bylaws  of  the   Registrant  as  currently  in  effect  and  any
               amendments thereto  (incorporated  herein by reference to exhibit
               3(B) of the Registrant's  Form S-4  Registration  Statement dated
               March 13, 1990, No. 33-33874).

        13     Annual Report for the year ended December 31, 2001.

               The consolidated  financial  statements and notes related thereto
               appear  on pages 11 - 23,  and the other  information  on pages 1
               through 8 in the Annual Report to Shareholders  are  incorporated
               by reference in this Form 10-KSB  Report.  With the  exception of
               these   statements   and   information,   the  Annual  Report  to
               Shareholders  for the year ended December 31, 2001, is not deemed
               filed as part of this Form 10-KSB


        21     List of Subsidiary on page 13.






                                      -12-
<PAGE>
                                   EXHIBIT 13


                           ANNUAL SHAREHOLDER REPORT





                                      2001



HURON NATIONAL BANCORP, INC.
ROGERS CITY, MICHIGAN
<PAGE>


     Welcome to Huron National Bank. A Bank that offers you the  highest-quality
banking  products  with  an  extraordinary  level  of  service.  Founded  in the
tradition of a community bank, we're dedicated to friendly, personal service and
to  building  relationships  with  our  clients.  From  greeting  you by name to
providing  you with  innovative  products and  services,  we're taking the extra
steps necessary to give you the finest banking experience.

     Huron  National Bank is  independently  owned and is managed by experienced
professionals  with strong ties to the area.  We are  committed  to the needs of
local  businesses  and  individuals.  All of our  decisions  are  made  locally,
allowing us to focus on you - our neighbors, our friends, our community.


                              ____________________
<PAGE>
HURON NATIONAL BANCORP, INC.




                               Table of Contents



                  Letter to Shareholders                               1



                  Selected Financial Data                              2



                  Directors, Officers and Personnel                    3



                  Corporate Information                                4

<PAGE>
HURON NATIONAL BANCORP, INC.




April 3, 2002


DEAR SHAREHOLDER:

     Last year was a year of difference from the previous year. While no one can
predict what challenges we may face at Huron National  Bancorp,  Inc., we try to
be well prepared. The third quarter of last year changed dramatically the Bank's
projected income.

     The decrease in loan demand and interest rates,  along with being committed
to continue  paying a higher  interest  rate on  deposits  resulted in less than
projected net income for the year.

     We have built a strong  financial  foundation  for the Bank and are able to
respond to issues that may arise. In addition, we are committed to expanding our
client base and continue to provide our customers with exceptional  service.  We
work hard to achieve  consistency  and to maintain loan quality.  Our customers,
employees and shareholders are the people that make it happen.

     We always  appreciate the  opportunity to meet with you, our  shareholders,
and answer your  questions.  It is our pledge to provide you with an  investment
that  meets your  expectations  with  regard to  financial  growth and  economic
return. On behalf of our staff, we express our thanks for your confidence.

     Thank you for your continuing support and look forward to seeing you at the
Annual Shareholders'  Meeting on April 24, 2002, at 10:00 a.m. If you are unable
to attend,  we welcome your  comments or  questions  at any time.  Please do not
hesitate to contact us.

Sincerely,



Michael L. Cahoon
President & Chief Executive Officer
<PAGE>
HURON NATIONAL BANCORP, INC.
SELECTED FINANCIAL DATA
<TABLE>

                                                                              For the Year Ended December 31,
SUMMARY OF OPERATIONS                                    2001             2000             1999              1998             1997
                                                         ----             ----             ----              ----             ----
<S>                                               <C>              <C>              <C>               <C>              <C>
     Total interest income                         $ 3,026,760      $ 2,797,319       $ 2,595,526      $ 2,445,180      $ 2,308,579
     Total interest expense                          1,518,779        1,247,316         1,189,450        1,151,318        1,117,854
                                                ---------------  ---------------  ----------------  ---------------  ---------------
     Net interest income                             1,507,981        1,550,003         1,406,076        1,293,862        1,190,725
     Provision for loan losses                               0            4,000            12,000           21,000           36,000
                                                ---------------  ---------------  ----------------  ---------------  ---------------
     Net interest income after provision
       for loan losses                               1,507,981        1,546,003         1,394,076        1,272,862        1,154,725
     Noninterest income                                120,194          123,330           119,945          132,034          135,432
     Noninterest expense                             1,009,824          974,811           905,009          865,599          818,870
                                                ---------------  ---------------  ----------------  ---------------  ---------------

     Income before income tax                          618,351          694,522           609,012          539,297          471,287
     Provision for income tax                          189,508          224,449           189,493          159,097          133,356
                                                ---------------  ---------------  ----------------  ---------------  ---------------

          NET INCOME                                 $ 428,843        $ 470,073         $ 419,519        $ 380,200        $ 337,931
                                                ===============  ===============  ================  ===============  ===============

AVERAGE SHARES OUTSTANDING                              62,500           62,500            62,500           62,500           62,500

PER SHARE DATA

     Basic and diluted earnings                         $ 6.86           $ 7.52            $ 6.71           $ 6.08           $ 5.41
     Cash dividends                                       2.25             2.25              2.00             1.80             1.60
     Book value, end of year                             62.29            56.95             51.00            47.25            42.85

TOTAL AVERAGE EQUITY (000's)                           $ 3,835          $ 3,417           $ 3,148          $ 2,864          $ 2,493

TOTAL AVERAGE ASSETS (000's)                          $ 42,087         $ 36,922          $ 35,418         $ 33,061         $ 31,238

RATIOS

     Return on average total assets                      1.02%            1.27%             1.18%            1.15%            1.08%
     Average shareholders' equity to average
       total assets*                                     9.11%            9.25%             8.89%            8.66%            7.98%
     Return on average shareholders' equity*            11.18%           13.76%            13.32%           13.28%           13.56%
     Dividend payout ratio (dividends divided
       by net income)                                   32.79%           29.92%            29.80%           29.59%           29.59%

PERIOD END TOTALS (000's)

     Total assets                                     $ 44,229         $ 39,225          $ 36,879         $ 34,729         $ 31,615
     Total loans                                        29,213           28,979            26,704           23,558           19,854
     Total deposits                                     40,105           35,375            33,447           31,455           28,712
     Shareholders' equity                                3,893            3,559             3,188            2,953            2,678
</TABLE>

* Average  shareholders'  equity  includes net average  unrealized  gain/loss on
securities available for sale.
<PAGE>
DIRECTORS AND OFFICERS

Marvin Beatty                          Michael L. Cahoon
Chairman of:                           President and Chief Executive Officer
  Huron National Bancorp, Inc.         and Director of:
  Huron National Bank                   Huron National Bancorp, Inc.
Owner State Wide Realty                 Huron National Bank

Leon Delekta                          Dale L. Bauer
Vice-Chairman of:                     Vice-President of:
  Huron National Bancorp, Inc.          Huron National Bank
  Huron National Bank
Retired Potato Farmer                 Paulette D. Kierzek
Truck Transportation                  Cashier of Huron National Bank
                                      Chief Financial Officer of:
Eugene McLean                           Huron National Bancorp, Inc.
Director of:                          Secretary to the Board of
  Huron National Bancorp, Inc.          Huron National Bancorp, Inc.
  Huron National Bank                   Huron National Bank
Retired Shipping Captain

Lynwood Lamb                          PERSONNEL
Director of:
  Huron National Bancorp, Inc.        Shirley Bisson, Teller
  Huron National Bank                 Holly Bruning, Teller
Investment Advisor                    Lisa Ciarkowski, Bookkeeper
                                      Diane Delekta, Teller
Louis Dehring                         Ann Hall, Bookkeeper
Director of:                          Vicki Kieliszewski, Bookkeeping Supervisor
  Huron National Bancorp, Inc.        Julie Konieczny, Receptionist & Loan Clerk
  Huron National Bank                 Judy Meyer, Proof Operator
Owner Paull Investments               Ruth Myers, Head Teller
                                      Heather Sobeck, Bookkeeper
Ervin Nowak                           Connie Standen, Teller
Director of:                          Jennifer Tomas, Teller
  Huron National Bancorp, Inc.        Corinna Willis, Teller
  Huron National Bank                 Mary Sue Wozniak, Loan Supervisor
President of Builders Mart, Inc.

Donald Hampton                        HOURS
Director of:
  Huron National Bancorp, Inc.        Bank Lobby:
  Huron National Bank                        9:00 a.m.-3:00 p.m.
President of Hampton IGA, Inc.               Monday-Thursday
                                             9:00 a.m.-5:00 p.m.-Friday
John Tierney
Director of:                          Drive-up Window:
  Huron National Bancorp, Inc.               9:00 a.m.-5:00 p.m.
  Huron National Bank                        Monday-Friday
Owner of Tierney & Williams, Inc.            9:00 a.m.-12 noon-Saturday
President of 211 Bar & Restaurant
Secretary/Treasurer of Aurora Gas Company    ATM:  Available 24 Hours

                        _______________________________
<PAGE>
CORPORATE


        Huron National Bancorp Inc., a bank holding company,
        provides a broad range of banking services to businesses
        and individuals in the Presque Isle County area. Its sole
        subsidiary, Huron National Bank, was founded on
        May 12, 1980.

        Headquarters
        200 E. Erie Street
        Rogers City, Michigan 49779
        (989) 734-4734
        email: hnb@george.lhi.net

        Annual Meeting
        Wednesday, April 24, 2002, 10:00 a.m.
        Huron National Bank Meeting Room
        Rogers City, Michigan 49779

        Stock Transfer Agent and Registrar
        Huron National Bancorp, Inc.
        Attn: Proxy Department
        200 E. Erie Street
        Rogers City, Michigan 49779

        Form 10-KSB and Other Financial Reports
        Copies of this annual report, the Corporation_ s
        Annual Report on Form 10-KSB as filed with the
        Securities and Exchange Commission may be
        obtained from:

        Paulette D. Kierzek
        Chief Financial Officer & Secretary
        Huron National Bank
        200 E. Erie Street
        Rogers City, Michigan 49779

        Independent Accountants
        Crowe, Chizek and Company LLP
        330 East Jefferson Boulevard P.O. Box 7
        South Bend, Indiana 46624
<PAGE>





















                          HURON NATIONAL BANCORP, INC.
                              Phone: 989 734-4734
                               Fax: 989 734-4737
                           Email: hnb@george.lhi.net
                               200 E. Erie Street
                          Rogers City, Michigan 49779
<PAGE>

                           ANNUAL SHAREHOLDER REPORT



                                      2001



HURON NATIONAL BANCORP, INC.
ROGERS CITY, MICHIGAN
<PAGE>
                          HURON NATIONAL BANCORP, INC.


                        CONSOLIDATED FINANCIAL STATEMENTS
                                       and
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATION


                                December 31, 2001
<PAGE>
                          HURON NATIONAL BANCORP, INC.

                                    CONTENTS




     SELECTED FINANCIAL DATA                                                   1


     TWO YEAR SUMMARY OF COMMON STOCK DATA BY QUARTER                          2


     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
       CONDITION AND RESULTS OF OPERATIONS                                     3


     REPORT OF INDEPENDENT AUDITORS                                            9


     CONSOLIDATED FINANCIAL STATEMENTS:

        Consolidated Balance Sheets                                           10

        Consolidated Statements of Income                                     11

        Consolidated Statements of Changes in Shareholders' Equity            12

        Consolidated Statements of Cash Flows                                 13

        Notes to the Consolidated Financial Statements                        14
<PAGE>
HURON NATIONAL BANCORP, INC.
SELECTED FINANCIAL DATA
<TABLE>

                                                                              For the Year Ended December 31,
SUMMARY OF OPERATIONS                                    2001             2000             1999              1998             1997
                                                         ----             ----             ----              ----             ----
<S>                                               <C>              <C>              <C>               <C>              <C>
     Total interest income                         $ 3,026,760      $ 2,797,319       $ 2,595,526      $ 2,445,180      $ 2,308,579
     Total interest expense                          1,518,779        1,247,316         1,189,450        1,151,318        1,117,854
                                                ---------------  ---------------  ----------------  ---------------  ---------------
     Net interest income                             1,507,981        1,550,003         1,406,076        1,293,862        1,190,725
     Provision for loan losses                               0            4,000            12,000           21,000           36,000
                                                ---------------  ---------------  ----------------  ---------------  ---------------
     Net interest income after provision
       for loan losses                               1,507,981        1,546,003         1,394,076        1,272,862        1,154,725
     Noninterest income                                120,194          123,330           119,945          132,034          135,432
     Noninterest expense                             1,009,824          974,811           905,009          865,599          818,870
                                                ---------------  ---------------  ----------------  ---------------  ---------------

     Income before income tax                          618,351          694,522           609,012          539,297          471,287
     Provision for income tax                          189,508          224,449           189,493          159,097          133,356
                                                ---------------  ---------------  ----------------  ---------------  ---------------

          NET INCOME                                 $ 428,843        $ 470,073         $ 419,519        $ 380,200        $ 337,931
                                                ===============  ===============  ================  ===============  ===============

AVERAGE SHARES OUTSTANDING                              62,500           62,500            62,500           62,500           62,500

PER SHARE DATA

     Basic and diluted earnings                         $ 6.86           $ 7.52            $ 6.71           $ 6.08           $ 5.41
     Cash dividends                                       2.25             2.25              2.00             1.80             1.60
     Book value, end of year                             62.29            56.95             51.00            47.25            42.85

TOTAL AVERAGE EQUITY (000's)                           $ 3,835          $ 3,417           $ 3,148          $ 2,864          $ 2,493

TOTAL AVERAGE ASSETS (000's)                          $ 42,087         $ 36,922          $ 35,418         $ 33,061         $ 31,238

RATIOS

     Return on average total assets                      1.02%            1.27%             1.18%            1.15%            1.08%
     Average shareholders' equity to average
       total assets*                                     9.11%            9.25%             8.89%            8.66%            7.98%
     Return on average shareholders' equity*            11.18%           13.76%            13.32%           13.28%           13.56%
     Dividend payout ratio (dividends divided
       by net income)                                   32.79%           29.92%            29.80%           29.59%           29.59%

PERIOD END TOTALS (000's)

     Total assets                                     $ 44,229         $ 39,225          $ 36,879         $ 34,729         $ 31,615
     Total loans                                        29,213           28,979            26,704           23,558           19,854
     Total deposits                                     40,105           35,375            33,447           31,455           28,712
     Shareholders' equity                                3,893            3,559             3,188            2,953            2,678
</TABLE>

* Average  shareholders'  equity  includes net average  unrealized  gain/loss on
securities available for sale.
<PAGE>
TWO YEAR SUMMARY OF COMMON STOCK DATA BY QUARTER

There is no established trading market in the Company's common stock. Such sales
generally occur in Presque Isle County, Michigan. The following table summarizes
sales the Company has  knowledge of occurring  during the last two years.  Where
known,  the  average  sales  price  is  given.   Because  the  shares  are  sold
infrequently  and not on any exchange,  the numbers shown cannot  necessarily be
considered to be an accurate reflection of true market value.

<TABLE>

                                          2001                                          2000
                                          ----                                          ----
                              Number of            Average Price            Number of           Average Price
                               Shares                Per Share               Shares              Per Share
                               ------                ---------               ------              ---------
         <S>                    <C>                <C>                       <C>                 <C>
         First Quarter           25                $50.00                      5                 $40.00
                                420                Price Unknown               5                 $42.00
                                                                              20                 $45.00

         Second Quarter         500                $50.00                    250                 $40.00
                               1750                $52.00                     25                 Price Unknown
                                25                 Price Unknown

         Third Quarter          150                $52.00                    257                 $50.00
                                800                Price Unknown

         Fourth Quarter          0                 $0.00                      10                 $50.00
</TABLE>



As of December 31, 2001, the Company's shareholder list reflected  approximately
631  shareholders  of record and there were 62,500 shares of common stock issued
and outstanding.

Dividends declared per share were $2.25 during 2001 and 2000.
<PAGE>
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


This section presents  information  relevant to understanding  and assessing the
consolidated  financial  condition and results of  operations of Huron  National
Bancorp,  Inc.  and its  wholly-owned  subsidiary,  Huron  National  Bank.  This
discussion  should  be read  in  conjunction  with  the  consolidated  financial
statements and related footnotes contained elsewhere in this report.


SUMMARY

Net income of $428,843 was  reported in 2001  compared to net income of $470,073
in 2000 and  $419,519  in 1999.  Basic  earnings  per share  were  $6.86 in 2001
compared to $7.52 in 2000 and $6.71 in 1999. For 2001,  return on average assets
and average equity  equaled 1.02% and 11.18%.  This compares to 1.27% and 13.76%
in 2000 and 1.18% and 13.32% in 1999.

As of year end,  total assets were  $44,228,745,  an increase of  $5,003,894  or
12.76% over December 31, 2000.  Total loans  increased  $233,577 at December 31,
2001 when compared to December 31, 2000, while securities  increased  $4,653,388
for the same period. In total, the Bank's deposits increased from $35,375,180 in
2000 to $40,104,623 in 2001,  with time deposit growth of $5,186,794.  Customers
committed  funds for  periods of time  primarily  due to the higher  than market
interest rates offered.

Shareholders'  equity as a percent of assets  decreased to 8.80% at December 31,
2001  compared to 9.07% for December  31, 2000.  This is the result of increased
deposit growth.


RESULTS OF OPERATIONS

Analysis of Net Interest Income

The difference  between interest  generated by the Company's  earning assets and
interest paid on  liabilities  is referred to as net interest  income,  the most
significant  component of the Company's earnings.  In 2001, net interest income,
on a fully tax equivalent  basis decreased by $30,000  compared to 2000. A lower
yield on interest  earning  assets was the primary  reason for a decrease in net
interest  income.  Also, the increased  volume in interest  bearing  liabilities
partially  offset the positive  impact on net  interest  income due to increased
interest earning assets.

The following table summarizes the increases in net interest income.
<TABLE>

              Net Interest Income
                 (Dollars in thousands; fully taxable equivalent basis)    2001               2000              1999
              ---------------------------------------------------------    ----               ----              ----
                   <S>                                                  <C>               <C>                <C>
                   Interest income                                          $ 3,054            $ 2,812           $ 2,621
                   Interest expense                                           1,519              1,247             1,189
                                                                        ------------      -------------      ------------

                   Net interest income                                      $ 1,535            $ 1,565           $ 1,432
                                                                        ============      =============      ============

                   Increase/(decrease) in net interest income                 $ (30)             $ 133              $ 96
                   Percent increase/(decrease) of net interest income         (1.92)%            9.50%             7.19%
</TABLE>
<PAGE>
The two variables that have the most significant effect on the change in the net
interest  income are volume and rate.  Below is a chart  which  illustrates  the
impact of changes in these two important variables for 2001 and 2000.

<TABLE>

 Change in Net                                                2001 Over 2000                           2000 Over 1999
 Interest Income (1)                                          Change Due to:                           Change Due to:
    (In thousands; fully taxable equivalent basis)    Volume      Rate         Total        Volume         Rate         Total
    ----------------------------------------------    ------      ----         -----        ------         ----         -----
 <S>                                               <C>           <C>           <C>           <C>          <C>          <C>
 Interest income
      Loans                                              $  126         $ 24         $ 150        $ 288         $ (33)       $ 255
      Taxable securities                                     20          (28)           (8)         (55)            4          (51)
      Tax-exempt securities                                  34           (5)           29          (30)            5          (25)
      Federal funds sold and other                          100          (29)           71            1            11           12
                                                  ------------- ------------ ------------- ------------ ------------- ------------
           Total interest income                            280          (38)          242          205           (13)         192
                                                  ------------- ------------ ------------- ------------ ------------- ------------
 Interest expense
      Interest bearing DDA                                   (6)         (20)          (26)          (4)           (6)         (10)
      Savings                                               (10)         (21)          (31)           5            (8)          (3)
      Time deposits                                         315           14           329           46            25           72
                                                  ------------- ------------ ------------- ------------ ------------- ------------
           Total interest expense                           299          (27)          272           48            11           59
                                                  ------------- ------------ ------------- ------------ ------------- ------------

 Net interest income                                      $ (19)       $ (11)        $ (30)       $ 157         $ (24)         133
                                                  ============= ============ ============= ============ ============= ============
</TABLE>

 (1) For purposes of these  tables,  changes in interest  due to volume and rate
     were determined as follows:

     Volume variance-change in volume multiplied by the previous year's rate.

     Rate variance-change in rate multiplied by the previous year's volume.

     Rate/volume  variance-change  in volume  multiplied  by the change in rate.
     This  variance  was  allocated  to volume  variance  and rate  variance  in
     proportion to the  relationship of the absolute dollar amount of the change
     in each.


Analysis of the Company's  net yield on earning  assets is also used to evaluate
changes  in net  interest  income.  The net yield on earning  assets  employs an
effective  cost  of  funds  by   recognizing   interest-free   liabilities   and
shareholders'  equity which fund earning assets, and is computed by dividing net
interest income by earning assets.

The  following  table  summarizes  the  Company's  average  balances,   interest
income/expense,  interest rates, net yield on earning assets,  and interest rate
spread.
<PAGE>
<TABLE>
     Net Interest Spread and Net
        Yield on Interest Earning Assets             2001                       2000              1999
        (Dollars in Thousands)           Average                     Average                     Average
     Assets                              Balance   Interest  Rate    Balance   Interest  Rate    Balance  Interest   Rate
                                        ---------- -------- ------- ---------- -------- ------- --------- --------- -------
     <S>                                <C>        <C>      <C>      <C>        <C>      <C>     <C>       <C>       <C>
          Loans                          $ 29,213   $ 2,605   8.92%  $ 27,795   $ 2,455  8.83%   $ 24,538  $ 2,200   8.97%
          Taxable securities                4,347       236   5.41%     3,995       241  6.04%      4,903      292   5.96%
          Tax-exempt securities (fully
             taxable equivalent basis)      1,196        81   6.79%       696        52  7.50%      1,099       77   7.03%
          Federalgfundsnsold andeother      3,591       132   3.69%     1,117        64  5.73%      1,090       52   4.77%
                                        ---------- ---------        ---------- ---------        ---------- --------
             Total interest earning        38,347     3,054   7.96%    33,603     2,812  8.36%     31,630    2,621   8.29%
                                        ---------- ---------        ---------- ---------        ---------- --------

          Cash and due from banks           2,883                       2,717                       2,996
          Other assets, net                   857                         602                         792
                                        ----------                  ----------                  ----------
               Total Assets              $ 42,087                    $ 36,922                    $ 35,418
                                        ==========                  ==========                  ==========

     Liabilities
          Interest bearing DDA's          $ 3,763        57   1.50%   $ 4,059        83  2.04%    $ 4,227       93   2.20%
          Savings                           6,946       127   1.83%     7,453       158  2.13%      7,220      162   2.24%
          Time deposits                    22,656     1,335   5.89%    17,293     1,006  5.82%     16,491      934   5.66%
                                        ---------- ---------        ---------- ---------        ---------- --------
             Total interest bearing        33,365     1,519   4.55%    28,805     1,247  4.33%     27,938    1,189   4.26%
                                        ---------- ---------        ---------- ---------        ---------- --------

          DDA's                             4,582                       4,411                       4,053
          Other liabilities                   305                         289                         279
          Shareholders' equity              3,835                       3,417                       3,148
                                        ----------                  ----------                  ----------
             Total liabilities and equity $42,087                    $ 36,922                    $ 35,418
                                        ==========                  ==========                  ==========

               Net interest income (fully
                  taxable equivalent basis)         $ 1,535                     $ 1,565                    $ 1,432
                                                   =========                  ==========                  =========

               Net interest spread                            3.41%                      4.04%                       4.03%
                                                            ========                    =======                     =======

               Net yield on interest earning assets           4.00%                      4.66%                       4.53%
                                                            ========                    =======                     =======

               Interest earning assets/
                  interest bearing liabilities               1.15x                      1.17x                       1.13x
</TABLE>


Non-Interest Income

The Company  recorded  noninterest  income of $120,194,  a decrease of $3,136 or
2.54% from $123,330 in 2000. This decrease was attributable to lower ATM fees.

Non-Interest Expense

During 2001,  noninterest expense increased by $35,013 or 3.59% from $974,811 in
2000 to $1,009,824 in 2001.  The increases  included  $3,572 in other  operating
expenses, $11,761 in legal and accounting fees, $9,715 in premises and equipment
and $9,965 in salaries and benefits.

Provision for Income Taxes

The  provision  for income  taxes was  $189,508 in 2001  compared to $224,449 in
2000,  a decrease of $34,941 or 15.56%.  This  decrease is  attributed  to lower
taxable  income  along  with  a  reduction  in the  effective  tax  rate  due to
additional income from tax exempt securities.  The effective tax rate is derived
by dividing  applicable income tax expense by income before taxes and was 31% in
2001 and 32% in 2000.
<PAGE>
FINANCIAL CONDITION

Liquidity and Interest Rate Sensitivity

The  Bank's  principal   asset/liability   management   objectives  include  the
maintenance  of adequate  liquidity and  appropriate  interest rate  sensitivity
while maximizing net interest income.

Liquidity  is generally  defined as the ability to meet cash flow  requirements.
For a bank,  meeting cash flow  requirements  means  having  funds  available to
satisfy  customer  credit  needs  as  well as  having  funds  available  to meet
depositor  withdrawal requests.  For the parent company,  liquidity means having
funds available to pay cash dividends and other operating expenses.

The Bank's primary sources of short-term  liquidity are its securities available
for sale and ability to raise money through federal funds purchased.  Its longer
term sources of liquidity are maturities of securities, loan repayments,  normal
deposit growth and  negotiable  certificates  of deposit.  The primary source of
funds for the parent company is the upstream of dividends from the Bank.

Management  believes  the Bank has  adequate  sources of  liquidity  to meet its
anticipated requirements.

As previously noted,  interest income and interest expense are also dependent on
changing  interest rates. The relative impact of changing  interest rates on net
interest  income  depends  on  the  rate  sensitivity  to  such  changes.   Rate
sensitivity generally depends on maturity structures, call provisions, repayment
penalties etc. of the respective financial  instruments.  The Bank's exposure or
sensitivity   to   changing   interest   rates  is  measured  by  the  ratio  of
rate-sensitive assets to rate- sensitive  liabilities.  Management believes that
the Bank's  rate  sensitive  position  is  adequate  in a normal  interest  rate
movement environment.

GAP Analysis

The following  table as of December 31, 2001 reflects how management has matched
assets  to  liabilities  that  mature  or have the  ability  to  reprice  in the
following time frame (in thousands).
<TABLE>

Assets                       0-90 Days        91-365 Days       1 - 3 Years       3 - 5 Years      5 Years +          Total
------                       ---------        -----------       -----------       -----------      ---------          -----
<S>                       <C>                <C>               <C>               <C>              <C>             <C>
Federal funds                      $ 3,300               $ -               $ -              $ -             $ -            $3,300
Investments                            225               280             5,511              757           1,599             8,372
Loans                                2,005             2,804             5,578            5,314          13,512            29,213
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------
   Total                             5,530             3,084            11,089            6,071          15,111            40,885
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------

Liabilities
-----------
Interest-bearing
   transaction accounts              4,327                                                                                  4,327
Savings                              6,796                                                                                  6,796
Certificates of deposit              9,402             7,304             3,139            4,553                            24,398
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------
   Total                            20,525             7,304             3,139            4,553                            35,521

Asset/(Liabilities) GAP            (14,995)           (4,220)            7,950            1,518          15,111             5,364
                          ================= ================= ================= ================ =============== =================

Cumulative GAP                   $ (14,995)        $ (19,215)        $ (11,265)        $ (9,747)        $ 5,364
                          ================= ================= ================= ================ ===============
</TABLE>
<PAGE>
Interest-bearing transaction and savings accounts are classified as repricing in
0-90 days as these instruments  provide management with the discretion to adjust
their rates.  Further,  because this category has no maturity  schedule or early
withdrawal penalty, depositors are free to move their funds based on rate alone.
Therefore, management recognizes that these categories, although generally lower
costing funds, are rate sensitive to the extent of interest rate movements.

The Bank's  cumulative  one year GAP position  increased from  ($14,747,000)  at
December  31,  2000 to  ($19,215,000)  at  December  31,  2001 as a result of an
increase of assets in the federal funds area.  Management  believes that the GAP
overstates true interest sensitivity. Interest exposure is not as significant as
expressed in the above  schedule as rates on  interest-bearing  transaction  and
savings  accounts  may not reprice on an "instant  basis".  Management  believes
liabilities  do not need to be  repriced  as soon as rates  begin to move  which
gives them a "lag time" in the market and for the assets to reprice.  It is also
their  belief that they are in a  sufficient  position  to minimize  any adverse
effect to the Bank's financial position due to interest rate changes.

Capital

Management  attempts to maintain  sufficient capital to take advantage of market
opportunities, yet provide a fair return to its shareholders.

The National Bank Act places  limitations  on the ability of the Bank to declare
and pay dividends.  As a general matter,  the Bank may not pay dividends greater
than the  total of the  Bank's  net  profits  for that  year  combined  with its
retained net profits of the two preceding years. Further, the Comptroller of the
Currency may prohibit the payment of cash  dividends  where it deems the payment
to be an unsafe and unsound banking practice.  Under the most restrictive of the
dividend  restrictions,  in 2002 the Bank  could  pay  additional  dividends  of
approximately $626,000 plus 2002 net income to the Holding Company.

Management believes that a strong capital position is paramount to its continued
profitability and continued depositor and investor confidence.  It also provides
Huron National Bank flexibility to take advantage of growth opportunities and to
accommodate larger Bank loan customers. Regulators have established "risk-based"
capital  guidelines  for  banks  and  bank  holding  companies.  Because  of the
Company's and Bank's size,  regulatory  capital  requirements  apply only to the
Bank.

Under the guidelines,  minimum capital levels are established for risk based and
total  assets.  For the  risk  based  computation,  the  ratio  is  based on the
perceived risk in asset categories and certain  off-balance-sheet items, such as
standby  letters of credit.  The  guidelines  define  Tier 1 capital  and Tier 2
capital.  Tier 1 capital  includes  common  shareholders'  equity,  while Tier 2
Capital adds the allowance for loan losses.  Tier 1 Capital cannot exceed Tier 2
Capital.  Banks are  required to have ratios of Tier 1 Capital to risk  weighted
assets of 4% and total capital (Tier 1 plus Tier 2) of 8%. At December 31, 2001,
Huron  National  Bank had  capital  ratios  well  above the  minimum  regulatory
guidelines as noted within footnote 14 of the Consolidated Financial Statements.

Loans and Loan Review Process

Maintaining  high asset  quality  is a key  determinant  of the Bank's  success.
Therefore,   Management   continually  monitors  impaired,   non-performing  and
delinquent loans and reports them monthly to the Board of Directors.

Non-accrual and loans past due 90 days or more approximated $184,000 or 0.63% of
total loans at December 31, 2001  compared to  approximately  $60,000 or 0.21% a
year earlier.

The  provision  for loan losses was $0 in 2001,  $4,000 in 2000,  and $12,000 in
1999. For the same years, charge-offs, net of recoveries, were $19,445, $21,333,
and $9,296.
<PAGE>
The allowance for loan losses is at $145,173 or 0.50% of total loans at December
31, 2001  compared to  %164,618  or 0.57% of total loans at year-end  2000.  The
allowance is consistent  with  Management's  recognition  of problem loans along
with Management's  strategy to emphasize the quality of the loan portfolio.  The
allowance  is  considered  adequate  by  Management.  (See  also  Note  1 to the
Consolidated Financial Statements)

Effects of Inflation

Inflation  can have a  significant  effect on the reported  financial  operating
results of all  industries.  This is especially  true in industries  with a high
proportion of fixed assets and inventory.  Inflation has an impact on the growth
of total assets in the banking  industry and the need to maintain a proper level
of equity capital.

Interest rates are significantly  affected by inflation,  but it is difficult to
assess the impact since  neither the timing nor the  magnitude of the changes in
the consumer price index coincide with changes in interest  rates.  There is, of
course, an impact on longer-term earning assets;  however, this effect continues
to diminish as investment  maturities are shortened and interest-earning  assets
and   interest-bearing   liabilities   shift  from   fixed-rate   long-term   to
rate-sensitive short-term.

BUSINESS

Huron National  Bancorp,  Inc.,  along with its wholly-owned  subsidiary,  Huron
National  Bank,  provides its customers  with a full line of commercial  banking
services  with its only  office  located in Rogers  City,  Michigan.  The Bank's
customer base consists of individuals, agricultural concerns, resort and related
businesses and small to medium-sized manufacturing companies. The Bank's service
area consists  primarily of Presque Isle County in the  northeastern  portion of
Michigan's lower peninsula.

Huron  National  Bank is the largest of two banks  located in Rogers  City.  The
other bank was purchased by a bank holding  company and converted  into a branch
office.  The Bank also  competes for loans and deposits  with a savings and loan
institution,  and two credit unions.  In addition,  a total of three other banks
operate branches in Presque Isle County, and money market funds also compete for
deposits in the Bank's service area.

The Bank regularly makes  commitments for secured term loans and commitments for
lines of credit.  These lines of credit are  reviewed on an annual  basis by the
Bank's  Board of  Directors.  However,  these  commitments  are firm only to the
extent that the respective  borrower maintains a satisfactory credit history and
does not  represent  any  unusual  credit  risk.  The Bank  had  $2,420,015  and
$2,931,030 as of December 31, 2001 and 2000 in  outstanding  lines of credit and
commitments to make loans of which $844,999 and $1,143,119  were still available
to the respective borrower.  Furthermore,  the Bank had issued letters of credit
totaling $167,000 as of December 31, 2000 and 2001.

A  portion  of  the  Bank's  deposits  are  obtained  from  and  loans  made  to
agricultural  concerns  and resort and  related  businesses.  There are no other
material  concentrations  of credit to, nor have other material  portions of the
deposits been received from, a single person, persons, industry or group.

The economy of the market area served by the Bank is significantly influenced by
the seasonal effects of the tourist and agricultural industries. The business of
the Bank  has  been  only  mildly  affected  by the  seasonal  aspects  of these
components of the local economy.

As of  December  31,  2001,  the  Bank  did not  have  any  foreign  sources  or
applications of funds.

Compliance with federal, state, and local statutes and/or ordinances relating to
the protection of the  environment  is not expected to have any material  effect
upon the Bank's capital expenditures, earnings, or competitive position.

The Bank employed 15 full-time  employees and 4 part-time  employees at December
31, 2001.

The Bank does not offer commercial, consumer, international, trust, or municipal
trading services.
<PAGE>
HURON NATIONAL BANCORP, INC.
<TABLE>
                           CONSOLIDATED BALANCE SHEETS
                           December 31, 2001 and 2000

ASSETS                                                                              2001                         2000
                                                                                    ----                         ----
<S>                                                                             <C>                           <C>
    Cash and due from banks                                                      $2,611,035                   $2,846,122
    Federal funds sold                                                            3,300,000                    3,000,000
                                                                                -----------                  -----------
           Total cash and cash equivalents                                        5,911,035                    5,846,122
    Securities available for sale                                                 8,010,363                    3,207,027
    Securities held to maturity
        (Fair value of $372,643 in 2001
          and $522,800 in 2000)                                                     362,008                      511,956

    Loans                                                                        29,212,819                   28,979,242
        Allowance for loan losses                                                  (145,173)                    (164,618)
                                                                                -----------                  -----------
           Net loans                                                             29,067,646                   28,814,624

    Bank premises and equipment - net                                               423,972                      409,862
    Accrued interest receivable                                                     371,803                      296,069
    Other assets                                                                     81,918                      139,191
                                                                                -----------                  -----------
              Total assets                                                     $ 44,228,745                 $ 39,224,851
                                                                               ============                 ============


LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
    Deposits
        Non interest-bearing transaction accounts                                $4,584,167                   $4,702,260
        Interest-bearing transaction accounts                                     4,326,926                    4,124,264
        Savings                                                                   6,795,571                    7,337,491
        Time                                                                     24,397,959                   19,211,165
                                                                                -----------                  -----------
              Total deposits                                                     40,104,623                   35,375,180
    Accrued interest payable                                                         82,920                       75,952
    Other liabilities                                                               147,832                      214,414
                                                                                -----------                  -----------
              Total liabilities                                                  40,335,375                   35,665,546

Shareholders' Equity
    Common stock, $10 par value:  100,000 shares
      authorized and 62,500 outstanding                                             625,000                      625,000
    Additional paid in capital                                                      625,000                      625,000
    Retained earnings                                                             2,603,482                    2,315,264
    Accumulated other comprehensive income (loss), net
      of tax of $20,548 in 2001 and $(3,070) in 2000                                 39,888                       (5,959)
                                                                                -----------                  -----------
              Total shareholders' equity                                          3,893,370                    3,559,305
                                                                                -----------                  -----------
                 Total liabilities and shareholders' equity                    $ 44,228,745                 $ 39,224,851
                                                                               ============                 ============
</TABLE>
                             See accompanying notes

<PAGE>
HURON NATIONAL BANCORP, INC.
<TABLE>
                        CONSOLIDATED STATEMENTS OF INCOME
              For the years ended December 31, 2001, 2000 and 1999

                                                                       2001                     2000                  1999
                                                                       ----                     ----                  ----
<S>                                                                <C>                      <C>                   <C>
Interest Income
    Loans, including fees                                          $ 2,605,209              $ 2,455,383           $ 2,200,281
    Federal funds sold                                                 132,419                   63,969                49,530
    Securities:
      Taxable                                                          233,314                  241,284               292,201
      Tax exempt                                                        53,568                   34,433                51,264
      Other                                                              2,250                    2,250                 2,250
                                                                   -----------              -----------           -----------
        Total interest income                                        3,026,760                2,797,319             2,595,526

Interest Expense
    Deposits                                                         1,518,779                1,247,316             1,189,450
                                                                   -----------              -----------           -----------
Net Interest Income                                                  1,507,981                1,550,003             1,406,076

Provision for Loan Losses                                                    0                    4,000                12,000
                                                                   -----------              -----------           -----------
Net Interest Income After
   Provision for Loan Losses                                         1,507,981                1,546,003             1,394,076

Non-Interest Income
    Service charges                                                     77,017                   74,510                78,789
    Other                                                               43,177                   48,820                41,156
                                                                   -----------              -----------           -----------
        Total non-interest income                                      120,194                  123,330               119,945

Non-Interest Expense
    Salaries and benefits                                              532,740                  522,775               468,777
    Premises and equipment                                             155,763                  146,048               137,094
    Legal and accounting fees                                           71,175                   59,414                59,049
    Other operating expense                                            250,146                  246,574               240,089
                                                                   -----------              -----------           -----------
        Total non-interest expense                                   1,009,824                  974,811               905,009
                                                                   -----------              -----------           -----------
Income Before Income Tax                                               618,351                  694,522               609,012

Provision for Income Tax                                               189,508                  224,449               189,493
                                                                   -----------              -----------           -----------
Net Income                                                           $ 428,843                $ 470,073             $ 419,519
                                                                   ===========              ===========           ===========
Basic and Diluted Earnings Per Share                                    $ 6.86                   $ 7.52                $ 6.71
                                                                   ===========              ===========           ===========
</TABLE>

                             See accompanying notes
<PAGE>
HURON NATIONAL BANCORP, INC.

<TABLE>
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
              For the years ended December 31, 2001, 2000 and 1999


                                                                                                  Accumulated Other
                                                                                                   Comprehensive
                                                                   Additional                       Income (Loss),      Total
                                                       Common       Paid In         Retained            Net         Shareholders'
                                                       Stock        Capital         Earnings          Of Tax            Equity
                                                       -----        -------         --------          ------            ------
<S>                                                  <C>           <C>            <C>                 <C>           <C>
BALANCE AT JANUARY 1, 1999                           $ 625,000     $ 625,000      $ 1,691,297         $11,900       $ 2,953,197
    Comprehensive income:
    Net income for the year                                                           419,519                           419,519
    Net change in unrealized loss on securities
      available for sale, net of tax of $32,892                                                       (63,850)
    Net cumulative effect of adopting
      SFAS No. 133, net of tax of ($2,024)                                                              3,928
                                                                                                --------------
      Total other comprehensive loss                                                                                    (59,922)
                                                                                                                 ---------------
        Total comprehensive income                                                                                      359,597
    Cash dividends ($2.00 per share)                                                 (125,000)                         (125,000)
                                                  ------------- -------------  ---------------  --------------   ---------------

BALANCE AT DECEMBER 31, 1999                           625,000       625,000        1,985,816         (48,022)        3,187,794
    Comprehensive income:
    Net income for the year                                                           470,073                           470,073
    Net change in unrealized gain on
      securities available for sale, net of
      tax of ($21,669)                                                                                 42,063            42,063
                                                                                                                 ---------------
            Total comprehensive income                                                                                  512,136
    Cash dividends ($2.25 per share)                                                 (140,625)                         (140,625)
                                                  ------------- -------------  ---------------  --------------   ---------------

BALANCE AT DECEMBER 31, 2000                           625,000       625,000        2,315,264          (5,959)        3,559,305
    Comprehensive income:
    Net income for the year                                                           428,843                           428,843
    Net change in unrealized gain on
       securities available for sale, net of tax
        of ($23,618)                                                                                   45,847            45,847
                                                                                                                 ---------------
          Total comprehensive income                                                                                    474,690
    Cash dividends ($2.25 per share)                                                 (140,625)                         (140,625)
                                                  ------------- -------------  ---------------  --------------   ---------------

BALANCE AT DECEMBER 31, 2001                         $ 625,000     $ 625,000      $ 2,603,482         $39,888       $ 3,893,370
                                                  ============= =============  ===============  ==============   ===============
</TABLE>
                             See accompanying notes
<PAGE>
HURON NATIONAL BANCORP, INC.
<TABLE>
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2001, 2000 and 1999

CASH FLOWS FROM OPERATING ACTIVITIES                                                 2001               2000               1999
                                                                                     ----               ----               ----
<S>                                                                          <C>                 <C>                 <C>
    Net income                                                                     $ 428,843          $ 470,073          $ 419,519
    Adjustments to reconcile net income to net cash
      from operating activities
        Depreciation                                                                  64,723             61,593             57,443
        Net premium amortization and discount accretion on securities                 68,504            323,677            218,911
        Provision for loan losses                                                                         4,000             12,000
        Increase/(decrease) in cash from change in assets
          and liabilities:
            Interest receivable                                                      (75,734)           (31,058)             2,171
            Other assets and other real estate                                        57,273            (25,799)            14,584
            Interest payable                                                           6,968              5,916             (3,693)
            Other liabilities                                                        (90,200)            18,985            (42,412)
                                                                             ----------------   ----------------   ----------------
                Net cash from operating activities                                   460,377            827,387            678,523
                                                                             ----------------   ----------------   ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Securities available for sale:
        Purchases                                                                 (6,450,427)                           (1,997,513)
        Maturities                                                                 1,650,000          1,350,000          1,281,429
    Securities held to maturity:
        Purchases                                                                                      (195,246)
        Maturities                                                                   148,000            168,000            667,000
    Net increase in loans                                                           (253,022)        (2,296,758)        (3,155,141)
    Purchases of property and equipment, net                                         (78,833)           (29,129)           (27,874)
                                                                             ----------------   ----------------   ----------------
                Net cash from investing activities                                (4,984,282)        (1,003,133)        (3,232,099)
                                                                             ----------------   ----------------   ----------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase in deposit accounts                                               4,729,443          1,927,736          1,992,730
    Dividends paid                                                                  (140,625)          (140,625)          (125,000)
                                                                             ----------------   ----------------   ----------------
                Net cash from financing activities                                 4,588,818          1,787,111          1,867,730
                                                                             ----------------   ----------------   ----------------

NET INCREASE/(DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                                    64,913          1,611,365           (685,846)
CASH AND CASH EQUIVALENTS AT:
  BEGINNING OF YEAR                                                                5,846,122          4,234,757          4,920,603
                                                                             ----------------   ----------------   ----------------
  END OF YEAR                                                                    $ 5,911,035        $ 5,846,122        $ 4,234,757
                                                                             ================   ================   ================

SUPPLEMENTAL CASH FLOW INFORMATION
    Cash paid during the period for:
    Interest                                                                     $ 1,511,811        $ 1,241,400        $ 1,193,143
    Federal income tax                                                               250,744            187,744            241,169


    Non cash investing activities:
    Transfer from securities held to maturity to available for sale                                                    $ 2,294,050
</TABLE>
                             See accompanying notes
<PAGE>
HURON NATIONAL BANCORP, INC.



                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES

     NATURE OF OPERATIONS ~ The consolidated  financial  statements  include the
accounts of Huron National  Bancorp,  Inc. (the "Company") and its  wholly-owned
subsidiary, Huron National Bank (the "Bank"). All material intercompany balances
and transactions are eliminated in consolidation.

     The Company is engaged in the business of  commercial  and retail  banking,
with operations  conducted through its office located in Rogers City,  Michigan.
The surrounding communities are the source of substantially all of the Company's
deposit and loan  activities.  The majority of the  Company's  income is derived
from  commercial and retail lending  activites.  Primarily all  installment  and
residential loans are secured by real and personal  property.  Approximately 90%
of commercial loans are secured by real estate.

     USE OF  ESTIMATES ~ To prepare the  consolidated  financial  statements  in
conformity with accounting  principles  generally accepted in the United States,
management makes estimates and assumptions based on available information. These
estimates  and  assumptions   affect  the  amounts  reported  in  the  financial
statements and the disclosures  provided,  and future results could differ.  The
allowance  for loan  losses  and the fair  value of  financial  instruments  are
particularly subject to change.

     SECURITIES ~ Securities  are  classified as held to maturity and carried at
amortized cost when  management has the positive intent and ability to hold them
to maturity.  Securities are classified as available for sale when they might be
sold before maturity.  Securities  available for sale are carried at fair value,
with unrealized  holding gains and losses reported net of tax, as a component of
other comprehensive  income.  Securities are classified as trading when held for
short term  periods in  anticipation  of market  gains,  and are carried at fair
value. Securities are written down to fair value when a decline in fair value is
not temporary.

As of July 1, 1999,  the  Company  adopted  Statement  of  Financial  Accounting
Standards  (SFAS) No. 133,  "Accounting  for Derivative  Instruments and Hedging
Activities." SFAS No. 133 requires all derivative  instruments to be recorded at
fair values.  The Company's early adoption of this standard had no effect on the
financial  statements other than the  reclassifications  of securities described
below. As permitted by SFAS No. 133, upon adoption of the standards, the Company
transferred  securities from the held to maturity portfolio to the available for
sale portfolio. At the date of transfer,  these securities had a carrying amount
of $2,294,050.

Gains and  losses  on sales  are  determined  using  the  amortized  cost of the
specific  security  sold.  Interest  income  includes  amortization  of purchase
premiums and discounts.

     LOANS ~ Loans are reported at the  principal  balance  outstanding,  net of
deferred loan fees and costs,  the allowance for loan losses,  and  charge-offs,
net of  recoveries.  Interest  income is  reported  on the  interest  method and
includes amortization of net deferred loan fees and costs over the loan term.

     ALLOWANCE  FOR LOAN LOSSES ~ Because  some loans may not be repaid in full,
an  allowance  for loan  losses is  recorded.  Increases  to the  allowance  are
recorded by a provision for loan losses charged to expense.  Estimating the risk
of  loss  and  the  amount  of  loss  on any  loan  is  necessarily  subjective.
Accordingly,  the allowance is  maintained  by management at a level  considered
adequate  to cover  losses  that are  currently  anticipated  based on past loss
experience,  general economic  conditions,  information  about specific borrower
situations  including their financial  position and collateral values, and other
factors and estimates  which are subject to change over time.  While  management
may  periodically  allocate  portions of the allowance for specific problem loan
situations,  the whole allowance is available for any charge-offs  that occur. A
loan is  charged-off  against the  allowance by management as a loss when deemed
uncollectible,  although  collection  efforts may continue and future recoveries
may occur.

Loans are  considered  impaired if full  principal or interest  payments are not
anticipated.  Impaired  loans are carried at the present  value of expected cash
flows discounted at the loan's  effective  interest rate or at the fair value of
the collateral if the loan is collateral  dependent.  A portion of the allowance
for loan losses may be allocated to impaired loans.
<PAGE>
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Smaller-balance  homogeneous  loans are evaluated for impairment in total.  Such
loans include  residential  first mortgage  loans secured by one-to-four  family
residences,  residential  construction  loans,  and automobile,  home equity and
second  mortgage  loans.  Commercial  loans and mortgage  loans secured by other
properties are evaluated individually for impairment.  When analysis of borrower
operating results and financial  condition  indicates that underlying cash flows
of  the  borrower's   business  are  not  adequate  to  meet  its  debt  service
requirements,  the loan is evaluated  for  impairment.  Often this is associated
with a delay or  shortfall in payments of 60 days or more.  Loans are  generally
moved to nonaccrual  status when 90 days or more past due. These loans are often
also considered  impaired.  Impaired loans, or portions thereof, are charged off
when deemed  uncollectable.  This typically  occurs when the loan is 120 days or
more past due.

     BANK  PREMISES AND  EQUIPMENT ~ Bank  premises and  equipment are stated at
cost  less  accumulated  depreciation.   Depreciation  is  computed  using  both
straight-line  and  accelerated  methods  over  their  estimated  useful  lives.
Maintenance,  repairs and minor alterations are charged to current operations as
expenditures  occur, and major  improvements  are capitalized.  These assets are
reviewed for  impairment  when events  indicate  the carrying  amount may not be
recoverable.

     OTHER  REAL  ESTATE  ~ Real  estate  acquired  in  settlement  of  loans is
initially reported at estimated fair value at acquisition.  After acquisition, a
valuation  allowance  reduces  the  reported  amount to the lower of the initial
amount or market value. Expenses,  gains and losses on disposition,  and changes
in the valuation allowance are reported in net loss on other real estate.

     INCOME TAXES ~ Income tax expense is the sum of the current year income tax
due or  refundable  and the  change in  deferred  tax  assets  and  liabilities.
Deferred tax assets and liabilities are the expected future tax  consequences of
temporary  differences  between the carrying amounts and tax bases of assets and
liabilities, computed using enacted tax rates. A valuation allowance, if needed,
reduces deferred tax assets to the amount expected to be realized.

     STATEMENT OF CASH FLOWS ~ Cash and cash  equivalents  is defined to include
cash on hand,  demand  deposits in other  institutions  and federal  funds sold.
Federal  funds are  generally  sold for one day  periods.  The  Company  reports
customer loan transactions and deposit transactions on a net cash flow basis.

     EARNINGS  PER  SHARE ~ Basic  earnings  per  share is  computed  using  the
weighted average number of shares outstanding.  The number of shares used in the
computation of basic earnings per share was 62,500 for all years presented.  The
Bank did not have any dilutive  shares during the years ended December 31, 2001,
2000, or 1999.

     SEGMENTS ~ Huron National Bancorp, Inc. and its subsidiary,  Huron National
Bank,  provide a broad range of financial  services to individuals and companies
in northern Michigan.  These services include demand, time and savings deposits;
lending; ATM processing; and cash management. While the Company's chief decision
makers monitor the revenue streams of the various Company products and services,
operations are managed and financial  performance is evaluated on a Company-wide
basis.  Accordingly,  all of the Company's banking  operations are considered by
management to be aggregated in one reportable operating segment.

     COMPREHENSIVE  INCOME ~  Comprehensive  income  consists  of net income and
other comprehensive income. Other comprehensive income includes unrealized gains
and losses on securities  available for sale, net of taxes,  which is recognized
as a separate component of equity.

     RECLASSIFICATIONS  ~ Some  items in prior  financial  statements  have been
reclassified to conform with the current presentation.

NOTE 2 - CASH AND DUE FROM BANKS

     As of December 31, 2001,  the Bank was required to maintain  cash  balances
with the Federal  Reserve Bank in the amount of $75,000.  These  balances do not
earn interest.
<PAGE>
NOTE 3 - SECURITIES

The fair value and carrying amount, if different, for securities,  the gains and
losses included in accumulated other comprehensive loss for securities available
for sale and the unrecognized  gains and losses for securities held to maturity,
at December 31 were as follows:
<TABLE>
                 2001
              Securities Available for Sale:                Fair Value           Gains             Losses
              ------------------------------                ----------           -----             ------
              <S>                                          <C>                  <C>                <C>               <C>
                    U.S. Agency                            $ 3,737,013          $ 21,583           $     -
                    Mortgage-backed                            269,984             4,735
                    Corporate                                1,404,431            30,837
                    State and Municipal                      2,598,935             3,284
                                                           -----------          --------           -------
                                                           $ 8,010,363          $ 60,439           $     -
                                                           ===========          ========           =======
                                                                                                                    Carrying
              Securities Held to Maturity:                  Fair Value           Gains             Losses            Amount
              ----------------------------                  ----------           -----             ------            ------
                    State and Municipal                      $ 372,643          $ 10,635                           $ 362,008
                                                            ----------          --------           -------         ---------
                                                             $ 372,643          $ 10,635           $     -         $ 362,008
                                                            ==========          ========           =======         =========

                 2000
              Securities Available for Sale:                Fair Value           Gains             Losses
              ------------------------------                ----------           -----             ------
                    U.S. Treasury                            $ 299,156           $     -            $ (501)
                    U.S. Agency                              1,367,536                              (2,737)
                    Mortgage-backed                            357,541                              (8,182)
                    State and Municipal                      1,182,794             2,392
                                                           -----------          --------         ---------
                                                           $ 3,207,027           $ 2,392         $ (11,420)
                                                           ===========          ========         =========

                                                                                                                    Carrying
              Securities Held To Maturity:                  Fair Value           Gains             Losses            Amount
              ----------------------------                  ----------           -----             ------            ------
                    State and Municipal                      $ 522,800          $ 10,845           $     -         $ 511,956
                                                            ----------          --------           -------         ---------
                                                             $ 522,800          $ 10,845           $     -         $ 511,956
                                                            ==========          ========           =======         =========
</TABLE>

There were no sales of securities during 2001, 2000 or 1999.

The carrying amount and estimated fair value of securities at December 31, 2001,
by contractual  maturity,  are shown below.  Expected maturities may differ from
contractual  maturities  because  borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
<TABLE>
                                                       Available for Sale                            Held to Maturity
                                                                                                                   Carrying
                                                             Fair Value                         Fair Value          Amount
                                                             ----------                         ----------          -------
              <S>                                          <C>                                  <C>                 <C>
              Due in one year or less                        $ 427,384                            $ 78,822          $ 78,251
              Due after one year through five years          5,808,692                             194,853           188,757
              Due after five years through ten years         1,504,303                              98,968            95,000
                                                           -----------                          ----------        ----------
                   Subtotal                                  7,740,379                             372,643           362,008
              Mortgage-backed                                  269,984
                                                           -----------                          ----------        ----------
                        Totals                             $ 8,010,363                           $ 372,643         $ 362,008
                                                           ===========                          ==========        ==========
</TABLE>
<PAGE>
NOTE 3 - SECURITIES (continued)

A Security available for sale with a fair value of $299,657 at December 31, 2000
was  pledged  to secure  public  deposits  and for other  purposes  required  or
permitted by law.

NOTE 4 - LOANS

Loans consist of the following at December 31:
<TABLE>
                                                                             2001              2000
                                                                             ----              ----
                                <S>                                  <C>               <C>
                                Commercial                               $ 4,165,433       $ 3,826,480
                                Real estate                               16,022,222        16,640,600
                                Installment                                9,025,164         8,512,162
                                                                     ----------------  ----------------
                                          Total loans                    $29,212,819       $28,979,242
                                                                     ================  ================
</TABLE>

Certain directors and executive officers of the Company, including associates of
such  persons,  were also loan  customers.  The  following  is a summary  of the
balance and activity of loans to such parties.
<TABLE>
                                                                                               2001
                                                                                               ----
                                      <S>                                              <C>
                                      Balance - January 1                                    $ 356,897
                                           New loans                                           371,662
                                           Repayments                                         (392,127)
                                                                                       ----------------
                                      Balance - December 31                                  $ 336,432
                                                                                       ================
</TABLE>

NOTE 5 -  ALLOWANCE FOR LOAN LOSSES

An analysis of changes in the allowance for loan losses follows:
<TABLE>
                                                                             2001              2000              1999
                                                                             ----              ----              ----
                    <S>                                              <C>               <C>                <C>
                    Balance at beginning of year                           $ 164,618         $ 181,951         $ 179,247
                    Additions (deductions)
                         Provision for loan losses                                               4,000            12,000
                         Recoveries credited to allowance                      3,954            16,937             4,155
                         Loans charged-off                                   (23,399)          (38,270)          (13,451)
                                                                     ----------------  ----------------  ----------------
                    Balance at end of year                                 $ 145,173         $ 164,618         $ 181,951
                                                                     ================  ================  ================
</TABLE>

During the years 2001 and 2000,  the balance of impaired loans was considered to
be immaterial.

NOTE 6 - BANK PREMISES AND EQUIPMENT - NET

Bank premises and equipment consist of the following at December 31:
<TABLE>

                                                                                         Accumulated          Carrying
                    2001                                                  Cost           Depreciation          Amount
                    ----                                                  ----           ------------         --------
                    <S>                                              <C>               <C>               <C>
                    Land                                                    $ 60,000               $ -          $ 60,000
                    Bank building and improvements                           487,002          (254,658)          232,344
                    Furniture and equipment                                  531,880          (400,252)          131,628
                                                                     ----------------  ----------------  ----------------
                         Total                                           $ 1,078,882        $ (654,910)        $ 423,972
                                                                     ================  ================  ================

                    2000
                    ----
                    Land                                                    $ 60,000               $ -          $ 60,000
                    Bank building and improvements                           487,002          (240,194)          246,808
                    Furniture and equipment                                  472,997          (369,943)          103,054
                                                                     ----------------  ----------------  ----------------
                         Total                                           $ 1,019,999        $ (610,137)        $ 409,862
                                                                     ================  ================  ================
</TABLE>

Provision for depreciation of $64,723,  $61,593,  and $57,443,  were included in
non-interest expense in 2001, 2000 and 1999.
<PAGE>
NOTE 7 - DEPOSITS

The Bank had approximately  $3,478,000 and $2,946,000 in time deposits issued in
denominations  of $100,000 or more as of  December  31, 2001 and 2000.  Interest
expense  on time  deposits  issued  in  denominations  of  $100,000  or more was
approximately $147,000, $148,000, and $95,000 in 2001, 2000 and 1999.

At year-end 2001, stated maturities of time deposits were:
<TABLE>
                                                     <S>                 <C>
                                                     2002                $ 16,382,929
                                                     2003                   2,466,474
                                                     2004                     999,342
                                                     2005                   2,652,133
                                                     2006                   1,897,081
                                                                   -------------------
                                                                         $ 24,397,959
                                                                   ===================
</TABLE>

Related party deposits totaled $697,756 and $496,506 at year-end 2001 and 2000.

NOTE 8 - INCOME TAX

The provision for federal income tax for the years ended December 31 consists of
the following:
<TABLE>
                                                                             2001                2000             1999
                                                                             ----                ----             ----
                <S>                                                <C>                  <C>                <C>
                Current expense                                             $ 174,964          $ 219,636       $ 180,187
                Deferred expense                                               14,544              4,813           9,306
                                                                   -------------------  -----------------  --------------
                     Provision for income tax                               $ 189,508          $ 224,449        $189,493
                                                                   ===================  =================  ==============
</TABLE>

Included  in other  liabilities  are  deferred  tax  balances  arising  from the
following items:
<TABLE>
                                                                                                  December 31,
                            Deferred tax assets:                                              2001             2000
                                                                                              ----             ----
                            <S>                                                         <C>                <C>
                               Allowance for loan losses                                        $ 27,461        $ 34,073
                               Unrealized loss on securities available for sale                        0           3,070
                               Other                                                               2,458             476
                                                                                        -----------------  --------------
                                                                                                  29,919          37,619

                            Deferred tax liabilities:
                               Effects of preparing tax return on a cash basis                 $ (85,067)      $ (69,811)
                               Property and equipment                                            (87,366)        (92,876)
                               Unrealized gain on securities available for sale                  (20,548)              0
                               Other                                                              (2,784)         (2,616)
                                                                                        -----------------  --------------
                                                                                                (195,765)       (165,303)
                                                                                        -----------------  --------------

                                      Net deferred tax liability                              $ (165,846)      $(127,684)
                                                                                        =================  ==============
</TABLE>
<PAGE>
NOTE 8 - INCOME TAX (continued)

The difference between the financial  statement tax expense and amounts computed
by applying the statutory federal tax rate of 34% to pretax income is reconciled
as follows:
<TABLE>

                                                                                        2001            2000            1999
                                                                                        ----            ----            ----
                          <S>                                                      <C>             <C>             <C>
                          Statutory rate applied to income before taxes               $ 210,239       $ 236,137       $ 207,064

                          Add (deduct)
                             Tax-exempt interest income                                 (19,635)        (15,879)        (21,495)
                             Other                                                       (1,096)          4,191           3,924
                                                                                  --------------  --------------  --------------

                                    Provision for income tax                           $189,508       $ 224,449       $ 189,493
                                                                                  ==============  ==============  ==============
</TABLE>

NOTE 9 - OTHER OPERATING EXPENSE

Other  operating  expenses  for the  years  ended  December  31  consist  of the
following:
<TABLE>
                                                                                        2001            2000            1999
                                                                                        ----            ----            ----
                          <S>                                                     <C>             <C>             <C>
                          Office supplies                                              $ 25,793        $ 22,015        $ 27,793
                          Directors fees                                                 46,400          43,200          57,200
                          General insurance                                              27,464          23,805          19,065
                          ATM fees                                                       23,643          24,257          25,406
                          Other expense                                                 126,846         133,297         110,625
                                                                                  --------------  --------------  --------------
                                    Total other operating expenses                     $250,146       $ 246,574       $ 240,089
                                                                                  ==============  ==============  ==============
</TABLE>

NOTE 10 - COMMITMENTS AND CONCENTRATIONS OF CREDIT RISK

The Bank is a party to financial  instruments with off-balance sheet risk in the
normal  course of  business  to meet  financing  needs of its  customers.  These
financial  instruments include letters of credit and unused lines of credit. The
Bank's  exposure  to  credit  loss in the event of  nonperformance  by the other
parties to the financial  instruments is presented by the contractual  amount of
those  instruments.  The  Bank  follows  the same  credit  policy  to make  such
financial  instruments  as is followed for those loans recorded in the financial
statements.

As of December 31, the Bank had  outstanding  letters of credit,  commitments to
make loans and unused lines of credit as follows:
<TABLE>
                                                                                         2001            2000
                                                                                         ----            ----
                                      <S>                                             <C>             <C>
                                      Outstanding letters of credit                   $ 167,000       $ 167,000
                                      Commitments to make loans
                                         and unused lines of credit                     845,000       1,143,119
</TABLE>

All commitments  above are at fixed rates and carry rates of interest from 8% to
11% and generally expire within one year.


Since certain  commitments to make loans and fund lines of credit expire without
being used, the amount does not necessarily represent future cash commitments.

From time to time claims are made  against  the Company in the normal  course of
business. There were no material outstanding claims at December 31, 2001.

The  Company's  loan  and  deposit  relationships  are not  concentrated  in any
particular  industry,  nor is there significant  dependence on any one employer.
Noninterest-bearing  deposits and federal funds sold held by Bank One,  amounted
to $5,009,156 and $4,829,554 at December 31, 2001 and 2000.
<PAGE>
NOTE 11 - DIVIDENDS

Guidelines with respect to maintenance of capital adopted by federal banking law
limits the amount of cash  dividends the Bank can pay to the Holding  Company to
the extent of net retained  profits (as defined by the regulatory  agencies) for
the current and two preceding  years,  and is further limited by the requirement
that the Bank maintain positive retained earnings. Under the most restrictive of
the  above  regulations,  in 2002  the  Bank is  limited  to  paying  additional
dividends of approximately $626,000 plus 2002 net income.

NOTE 12 - PENSION PLAN

The  Bank  has a  Simplified  Employee  Pension  (SEP)  Plan  that is a  defined
contribution  plan.  Employees  become  eligible to  participate in the SEP Plan
after two years of  service  in the  immediately  preceding  five plan years and
after  attaining the age of 21. In each plan year the Bank may contribute to the
SEP  Plan  the  lesser  of  $30,000  or  a  percentage  of  each   participant's
compensation as reported on Form W-2. The contribution is determined annually by
the Bank's Board of Directors.  Also, participants may make contributions to the
SEP Plan subject to certain requirements and limitations. In all cases, Bank and
participant contributions may not exceed limitations established by the Internal
Revenue Service.  Expense recognized by the Bank in relation to the SEP Plan for
the year ended December 31, 2001, 2000 and 1999 was $8,409, $8,002 and $7,106.

NOTE 13 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The following  methods and  assumptions  were used to estimate the fair value of
each class of financial instruments for which it is practicable to estimate that
value.

Carrying  amount  is a  reasonable  estimate  of fair  value  for  cash and cash
equivalents,  Federal Reserve stock,  accrued  interest  receivable and payable,
demand deposits, savings accounts and money market deposits.

Fair value of other financial instruments is estimated as follows:

Fair values for  securities  are based on quoted market prices or dealer quotes.
If a quoted market price is not available,  fair value is estimated using quoted
market prices for similar instruments.

Fair  value  of fixed  and  variable  rate  loans is  principally  estimated  by
discounting  future cash flows using the current  rates at which  similar  loans
would  be made  to  borrowers  with  similar  credit  ratings  and for the  same
remaining maturities.

The fair  value of  fixed-maturity  certificates  of  deposit  is  estimated  by
discounting cash flows using the rates currently offered for deposits of similar
remaining maturities.

The fair value of commitments is estimated  using the fees currently  charged to
enter  similar  agreements,  taking  into  account  the  remaining  terms of the
agreements  and  the  present   creditworthiness  of  the  counterparties.   For
fixed-rate loan  commitments,  fair value also considers the difference  between
current  levels of interest  rates and the  committed  rates.  The fair value of
letters of credit is based on fees currently  charged for similar  agreements or
on the estimated cost to terminate them or otherwise settle the obligations with
the  counterparties  at the reporting  date.  The fair value of  commitments  to
extend  credit and standby  letters of credit were  immaterial  at the reporting
dates presented.

The carrying amounts and fair values of the Company's financial  instruments (in
thousands) are as follows as of year-end.
<TABLE>
                                                              2001                        2000
                                                     Carrying       Fair         Carrying        Fair
                                                      Amount       Value          Amount         Value
                                                      ------       -----          ------         -----
              <S>                                    <C>           <C>           <C>            <C>
              Financial assets
                   Cash and cash equivalents          $ 5,911      $ 5,911        $ 5,846        $ 5,846
                   Securities                           8,372        8,383          3,719          3,730
                   Loans, net                          29,068       28,959         28,815         28,688
                   Federal Reserve stock                   38           38             38             38
                   Accrued interest receivable            372          372            296            296

              Financial liabilities
                   Deposits                          $(40,105)    $(41,287)      $(35,375)     $ (34,764)
                   Accrued interest payable               (83)         (83)           (76)           (76)
</TABLE>
<PAGE>
NOTE 14 - REGULATORY MATTERS

The Company and Bank are subject to regulatory capital requirements administered
by federal banking agencies.  Capital adequacy  guidelines and prompt corrective
action regulations involve  quantitative  measures of assets,  liabilities,  and
certain   off-balance-sheet   items  calculated   under  regulatory   accounting
practices.  Capital amounts and  classifications are also subject to qualitative
judgments by regulators about components, risk weighting, and other factors, and
the  regulators  can lower  classifications  in certain  cases.  Failure to meet
various capital  requirements can initiate  regulatory  action that could have a
direct material effect on the financial statements.

The prompt corrective action regulations provide five classifications, including
well  capitalized,  adequately  capitalized,   undercapitalized,   significantly
undercapitalized, and critically undercapitalized,  although these terms are not
used to  represent  overall  financial  condition.  If  adequately  capitalized,
regulatory   approval   is   required   to   accept   brokered   deposits.    If
undercapitalized,  capital  distributions  are  limited,  as is asset growth and
expansion, and plans for capital restoration are required.

At year end, the Bank's actual capital levels  (dollars in millions) and minimum
required levels were:
<TABLE>
                                                                                       Minimum Required To
                                                                 Minimum Required      Be Well Capitalized
                                                                     For Capital     Under Prompt Corrective
                                                   Actual         Adequacy Purposes     Action Regulations
                                                   ------         -----------------     ------------------
2001                                         Amount     Ratio     Amount      Ratio     Amount      Ratio
----                                         ------     -----     ------      -----     -------     -----
<S>                                          <C>        <C>       <C>         <C>       <C>         <C>
Total capital (to risk weighted assets)      $ 4.0      13.9%     $  2.3      8.0%      $   2.9     10.0%
Tier 1 capital (to risk weighted assets)       3.9      13.4%        1.1      4.0%          1.7      6.0%
Tier 1 capital (to average assets)             3.9       8.8%        1.7      4.0%          2.2      5.0%

2000
----
Total capital (to risk weighted assets)      $ 3.7      14.6%     $  2.1      8.0%      $   2.6     10.0%
Tier 1 capital (to risk weighted assets)       3.6      13.9%        1.0      4.0%          1.5      6.0%
Tier 1 capital (to average assets)             3.6       9.4%        1.5      4.0%          1.9      5.0%
</TABLE>

The Bank at year end 2001 and 2000 was categorized as well capitalized.

CONDENSED FINANCIAL INFORMATION

Presented below are condensed financial statements for the parent company:
<TABLE>
          CONDENSED BALANCE SHEETS
                                                                                                              December 31,
          ASSETS                                                                                         2001             2000
                                                                                                         ----             ----
          <S>                                                                                       <C>               <C>
               Cash and cash equivalents                                                            $     4,035      $     1,373
               Investment in Huron National Bank                                                      3,889,335        3,557,932
                                                                                                    -----------      -----------
                    Total assets                                                                    $ 3,893,370      $ 3,559,305
                                                                                                    ===========      ===========
          LIABILITIES                                                                               $         -      $         -

          SHAREHOLDERS' EQUITY                                                                      $ 3,893,370      $ 3,559,305
                                                                                                    -----------      -----------
                    Total liabilities and shareholders' equity                                      $ 3,893,370      $ 3,559,305
                                                                                                    ===========      ===========
</TABLE>
<PAGE>
NOTE 15 - HURON NATIONAL BANCORP, INC. (PARENT COMPANY ONLY)

CONDENSED FINANCIAL INFORMATION (continued)
<TABLE>

                                            CONDENSED STATEMENTS OF INCOME
                                                                                Years Ended December 31,
                                                                            2001          2000           1999
                                                                            ----          ----           ----
         <S>                                                          <C>            <C>           <C>
         Operating Income
              Dividends from Huron National Bank                         $ 155,625     $ 150,625      $ 135,000

         Operating Expenses
              Other expenses                                                12,338        11,240          8,759
                                                                      -------------  ------------  -------------

         Income before equity in undistributed
            net income of subsidiary                                       143,287       139,385        126,241

         Equity in undistributed net income of subsidiary                  285,556       330,688        293,278
                                                                      -------------  ------------  -------------

         Net Income                                                      $ 428,843     $ 470,073      $ 419,519
                                                                      =============  ============  =============
</TABLE>
<TABLE>
                                          CONDENSED STATEMENTS OF CASH FLOWS
                                                                              Years Ended December 31,
                                                                            2001          2000           1999
                                                                            ----          ----           ----
         <S>                                                            <C>            <C>            <C>
         Cash Flows from Operating Activities
              Net income                                                 $ 428,843     $ 470,073      $ 419,519
              Adjustments to reconcile net income to
                 cash from operating activities:
              Equity in undistributed net income
                 of subsidiary                                            (285,556)     (330,688)      (293,278)
                                                                      -------------  ------------  -------------

         Net cash from operating activities                                143,287       139,385        126,241
                                                                      -------------  ------------  -------------

         Cash Flows from Financing Activities
              Dividends paid                                              (140,625)     (140,625)      (112,500)
                                                                      -------------  ------------  -------------
              Net Cash from Financing Activities                          (140,625)     (140,625)      (112,500)
                                                                      -------------  ------------  -------------

         Net Change in Cash and Cash Equivalents                             2,662        (1,240)         1,241
         Cash and Cash Equivalents at:
              Beginning of the period                                        1,373         2,613          1,372
                                                                      -------------  ------------  -------------

              End of the period                                            $ 4,035       $ 1,373        $ 2,613
                                                                      =============  ============  =============
</TABLE>

NOTE 16 - QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
                                               Interest     Net Interest    Net           Earnings
               2001                             Income        Income       Income        Per Share
               ----                             ------        ------       ------        ---------
               <S>                            <C>           <C>           <C>             <C>
                    First quarter             $ 760,846     $ 395,053     $127,444        $ 2.04
                    Second quarter              762,475       381,246      109,548          1.75
                    Third quarter               762,965       374,758      104,782          1.68
                    Fourth quarter              740,474       356,924       87,069          1.39

               2000
               ----
                    First quarter             $ 676,154     $ 368,371     $111,996        $ 1.79
                    Second quarter              680,358       375,259      112,706          1.80
                    Third quarter               698,568       395,561      122,852          1.97
                    Fourth quarter              742,239       410,812      122,519          1.96
</TABLE>

In the first  quarter  of 2001,  higher  volumes  of loan  rates on these  loans
existed compared to the loan volume and rates in later quarters. The decrease in
fourth  quarter net income in 2001 was due to the decrease in interest  rates on
earning assets versus interest paid on deposits.
<PAGE>
                                   EXHIBIT 21

                               LIST OF SUBSIDIARY
                               ------------------


         NAME                                                INCORPORATED
         ----                                                ------------
1.  Huron National Bank                             National Banking Association
                                                    headquartered in Michigan










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