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, 2000
        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)
                                 (517) 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 16, 2001, was approximately $2,196,500,  based on market
price of $50.00 per share.

As of March 16, 2001, 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, 2000, 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 25, 2001, 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, 2000 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 2000 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)

Second,  the GLB Act also provides that a national bank, which 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 serveral 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 of 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  $28,979,242 at December 31, 2000. This represents  73.88% of
its total assets.  At that date, 57.43% consisted of real estate mortgage loans,
29.37% consisted of installment loans and 13.20% 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.

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.

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

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 2000 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
2000 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, 2000 and 1999 is set forth in
          Note 3 on pages 17 and 18 of the 2000 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, 2000:
<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            $ 1,154,480   5.63%      $ 682,502   5.96%   $ 1,012,504     5.94%
           States and Municipals (1)                               148,250   4.64%        268,706   4.98%        95,000     5.12%
           Mortgage-backed                                                                357,541   5.43%
                                                               -----------            -----------           -----------
                       Totals                                  $ 1,302,730   5.52%    $ 1,308,749   5.61%   $ 1,107,504     5.87%
                                                               ===========   =====    ===========   =====   ===========     =====
</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, 2000
          and 1999 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 15, 16 and 18, in
          the  2000  Annual  Report  to  Shareholders,  incorporated  herein  by
          reference.

     (B)  The following  table sets forth the  remaining  maturity of commercial
          loans at December  31,  2000  according  to  scheduled  repayments  of
          principal.
<TABLE>
                                     1 Year or Less         1 - 3 Years           Total
                                     --------------         ------------          -----
             <S>                       <C>                    <C>               <C>
             Commercial loans(1)       $3,576,480             $250,000          $3,826,480
</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.

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

III.  LOAN PORTFOLIO (continued)

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

     The following table sets forth non-performing loans at December 31:
<TABLE>
                                                                                 2000                1999
                                                                                 ----                ----
<S>                                                                             <C>                 <C>
Loans accounted for on a nonaccrual basis                                       $59,849             $78,643
Aggregate amount of loans ninety days or more past due
 (excludes loans on nonaccrual status above)
Troubled debt restructuring where terms have been
 renegotiated to provide a reduction or deferral of interest
 or principal because of a deterioration in the financial
 position of the borrower (excludes nonaccrual and loans
 past due ninety days or more above)                                                                  2,965
                                                                               --------           ---------
Total non-performing loans                                                      $59,849             $81,608
                                                                               ========           =========
Ratio for allowance for loan losses to non-performing loans                       2.75x               2.23x
</TABLE>
     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, 2000
               and 1999.

          (4)  There are no concentrations of loans exceeding 10% of total loans
               which are not already  disclosed  as a category  at December  31,
               2000.

     (D)  As of December 31, 2000, 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>
                                                                                 2000            1999
                                                                                 ----            ----
<S>                                                                             <C>            <C>
Balance of allowance for loan losses at the beginning of year:                  $181,951       $179,247
Charge-offs:        Commercial loans
                    Real estate loans
                    Installment loans                                             38,270         13,451
                                                                              ----------      ---------
                         Total charge-offs                                        38,270         13,451

Recoveries:         Commercial loans                                                 557          1,582
                    Real estate loans
                    Installment loans                                             16,380          2,573
                                                                              ----------      ---------
               Total recoveries                                                   16,937          4,155
</TABLE>
                                      -6-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

IV.  SUMMARY OF LOAN LOSS EXPERIENCE (continued)
<TABLE>
                                                                        2000           1999
                                                                        ----           ----
        <S>                                                         <C>             <C>
             Net loans charged-off                                    $ 21,333         $ 9,296
                                                                   -----------      ----------
        Additions to allowance charged to operating expense              4,000          12,000
                                                                   -----------      ----------
             Balance at end of year                                  $ 164,618       $ 181,951
                                                                   ===========      ==========
        Average gross loans outstanding                             27,802,000      24,734,000
        Percent of net charge-offs during the period to average
           gross loans outstanding                                       0.08%           0.04%
</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 15, 16 and 18 in the 2000
Annual Report to Shareholders, incorporated herein by reference.

(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>
                                                    2000                                      1999
                                           Allowance    % of Loans to              Allowance     % of Loans to
                                            Amount      Total Loans                 Amount        Total Loans
                                            ------      -----------                 ------        -----------
         <S>                              <C>            <C>                       <C>            <C>
         Commercial                        $ 15,279       13.20%                    $ 14,854       12.66%
         Real estate                         35,516       57.43%                      14,765       57.81%
         Installment                         18,763       29.37%                      15,814       29.53%
         Unallocated                         95,060                                  136,518
                                          ---------      -------                   ---------      -------
              Total                       $ 164,618      100.00%                   $ 181,951      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>
                                                                  2000                                     1999
                                                                Average                                   Average
                                                        Balance           Rate                   Balance           Rate
                                                        -------           ----                   -------           ----
         <S>                                          <C>                 <C>                  <C>                 <C>
         Demand Deposits                               $ 4,319,217        0.00%                 $ 4,058,765        0.00%
         Interest-bearing
            demand deposits                              4,092,097        2.04%                   4,138,297        2.24%
         Savings                                         7,453,469        2.13%                   7,219,987        2.25%
         Time deposits under $100,000                   14,725,067        5.83%                  14,714,172        5.70%
         Time deposits over $100,000                     2,659,920        5.55%                   1,879,102        5.06%
                                                      ------------        -----                ------------        -----
              Total                                   $ 33,249,770        3.75%                $ 32,010,323        3.72%
                                                      ============        =====                ============        =====
</TABLE>
                                      -7-
<PAGE>
PART-I    ITEM 1 - BUSINESS (continued)

(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, 2000:
<TABLE>
                          <S>                                                    <C>
                          Three months or less                                        $ 2,117
                          Over three months through twelve months                         729
                          Over one year                                                   100
                                                                                 ------------
                               Total                                                  $ 2,946
                                                                                 ============
</TABLE>
<TABLE>
                                                                           2000         1999
                                                                           ----         ----
              <S>                                                         <C>          <C>
              Net Income to average assets                                 1.27%        1.18%
              Net Income to average shareholders' equity                  13.76%       13.32%
              Cash dividend payout ratio                                  29.92%       29.80%
              Average shareholders' equity to average total assets         9.25%        8.89%
</TABLE>

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, 2000:
<TABLE>
                                                                                                 First Elected
              Name (age)                           Position with Registrant                 Officer of the Registrant
              ----------                           ------------------------                 -------------------------
              <S>                                  <C>                                             <C>
              Ervin Nowak (69)                     Chairman                                        1990
              Michael L. Cahoon (67)               President and Chief Executive Officer           1990
              Paulette D. Kierzek (51)             Chief Financial Officer                         1990
</TABLE>

     Mr.  Nowak 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.

                                      -8-
<PAGE>
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, 2000.



                                    PART II

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS

     Information  for this item  appears on page 2 of the 2000 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 2000 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 11 to 23 in
     the Annual Report to Shareholders  for the year ended December 31, 2000 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


                                      -9-
<PAGE>
                                    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";  and  "Committees of
the Board of Directors" in the  Registrant's  2000 Proxy Statement as filed with
the Commission, 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  2001 Proxy  Statement as filed with the Commission,
incorporated herein by reference.

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 2001 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, 2001.


                          HURON NATIONAL BANCORP, INC.


/s/ Michael 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
Chairman of the Board                             Director


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


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


/s/ Donald Hampton                                /s/ Louis Dehring
Donald Hampton                                    Louis Dehring
Director                                          Director


/s/ John Tierney
John Tierney
Director


/s/ Dale L. Bauer                                 /s/ Paulette D. Kierzen
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, 2000.

                    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,  2000,  is not deemed  filed as part of this Form 10-KSB
                    Report.

             21     List of Subsidiary on page 13.



                                      -12-
<PAGE>
EXHIBIT 13

                          Huron National Bancorp, Inc.





                                      2000




                                  ANNUAL REPORT




                                                                             HNB
<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


BUSINESS.....................................................................  8


DIRECTORS AND EXECUTIVE OFFICERS.............................................  9


CONSOLIDATED FINANCIAL STATEMENTS:

  Report of Independent Auditors............................................. 10

  Consolidated Balance Sheets................................................ 11

  Consolidated Statements of Income.......................................... 12

  Consolidated Statements of Changes in Shareholders' Equity................. 13

  Consolidated Statements of Cash Flows...................................... 14

  Notes to the Consolidated Financial Statements............................. 15
<PAGE>
                          HURON NATIONAL BANCORP, INC.
                             SELECTED FINANCIAL DATA
--------------------------------------------------------------------------------
<TABLE>

                                                                          For the Year Ended December 31,
SUMMARY OF OPERATIONS                                2000             1999              1998             1997             1996
---------------------                                ----             ----              ----             ----             ----
     <S>                                        <C>              <C>               <C>               <C>
     Total interest income                         $ 2,797,319      $ 2,595,526       $ 2,445,180      $ 2,308,579      $ 2,195,890
     Total interest expense                          1,247,316        1,189,450         1,151,318        1,117,854        1,075,226
                                                ---------------  ---------------   ---------------  ---------------  ---------------
     Net interest income                             1,550,003        1,406,076         1,293,862        1,190,725        1,120,664
     Provision for loan losses                           4,000           12,000            21,000           36,000           36,000
                                                ---------------  ---------------   ---------------  ---------------  ---------------
     Net interest income after provision
       for loan losses                               1,546,003        1,394,076         1,272,862        1,154,725        1,084,664
     Noninterest income                                123,330          119,945           132,034          135,432          147,347
     Noninterest expense                               974,811          905,009           865,599          818,870          786,566
                                                ---------------  ---------------   ---------------  ---------------  ---------------
     Income before income tax                          694,522          609,012           539,297          471,287          445,445
     Provision for income tax                          224,449          189,493           159,097          133,356          138,507
                                                ---------------  ---------------   ---------------  ---------------  ---------------
          NET INCOME                                 $ 470,073        $ 419,519         $ 380,200        $ 337,931        $ 306,938
                                                ===============  ===============   ===============  ===============  ===============


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

PER SHARE DATA

     Basic and diluted earnings                         $ 7.52           $ 6.71            $ 6.08           $ 5.41           $ 4.91
     Cash dividends                                       2.25             2.00              1.80             1.60             1.50
     Book value, end of year                             56.95            51.00             47.25            42.85            39.03

TOTAL AVERAGE EQUITY (000's)                           $ 3,417          $ 3,148           $ 2,864          $ 2,493          $ 2,363

TOTAL AVERAGE ASSETS (000's)                          $ 36,922         $ 35,418          $ 33,061         $ 31,238         $ 29,661

RATIOS

     Return on average total assets                      1.27%            1.18%             1.15%            1.08%            1.03%
     Average shareholders' equity to average
       total assets*                                     9.25%            8.89%             8.66%            7.98%            7.97%
     Return on average shareholders' equity*            13.76%           13.32%            13.28%           13.56%           12.99%
     Dividend payout ratio (dividends divided
       by net income)                                   29.92%           29.80%            29.59%           29.59%           30.54%

PERIOD END TOTALS (000's)

     Total assets                                     $ 39,225         $ 36,879          $ 34,729         $ 31,615         $ 30,292
     Total loans                                        28,979           26,704            23,558           19,854           19,186
     Total deposits                                     35,375           33,447            31,455           28,712           27,594
     Shareholders' equity                                3,559            3,188             2,953            2,678            2,440
</TABLE>
* Average  shareholders'  equity  includes net average  unrealized  gain/loss on
securities available for sale.
                                                                          Page 1
<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>
                                          2000                                          1999
                                          ----                                          ----
                             Number of            Average Price            Number of            Average Price
                              Shares               Per Share                Shares               Per Share
                              ------               ---------                ------               ---------
         <S>                   <C>                  <C>                      <C>                 <C>
         First Quarter           5                  $40.00                    75                  $40.00
                                 5                  $42.00
                                20                  $45.00

         Second Quarter        250                  $40.00                   100                  $40.00
                                25              Price Unknown                180                  $38.00

         Third Quarter         257                  $50.00                    56                  $38.00
                                                                              20                  $42.00

         Fourth Quarter         10                  $50.00                    10              Price Unknown
                                                                               1                  $38.00
</TABLE>


As of December 31, 2000, the Company's shareholder list reflected  approximately
622  shareholders  of record and there were 62,500 shares of common stock issued
and outstanding.

Dividends declared per share were $2.25 and $2.00 during 2000 and 1999.

Page 2
<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 $470,073 was  reported in 2000  compared to net income of $419,519
in 1999 and $380,200 in 1998. Basic and diluted earnings per share were $7.52 in
2000  compared to $6.71 in 1999 and $6.08 in 1998.  For 2000,  return on average
assets and average equity  equaled 1.27% and 13.76%.  This compares to 1.18% and
13.32% in 1999 and 1.15% and 13.28% in 1998.

As of year end,  total assets were  $39,224,851,  an increase of  $2,345,817  or
6.36% over December 31, 1999.  Total loans increased  $2,275,425 at December 31,
2000 when compared to December 31, 1999, while securities  decreased  $1,582,699
and cash and cash  equivalents  increased by $1,611,365 for the same period.  In
total, the Bank's deposits  increased from $33,447,444 in 1999 to $35,375,180 in
2000, with time deposit growth of $2,277,393 and noninterest bearing transaction
accounts of $733,441.  Customers are  committing  funds for extended  periods of
time rather than short term due to higher interest rates.

Shareholders'  equity as a percent of assets  increased to 9.07% at December 31,
2000  compared  to 8.64%  for  December  31,  1999.  This is the  result  of the
Company's earnings keeping pace with asset 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 2000, net interest income,
on a fully tax  equivalent  basis  increased by $133,000  compared to 1999.  The
increase in the level of deposits  partially  offset the positive  impact on net
interest income from the increase in interest earning assets.

The following table summarizes the increases in net interest income.
<TABLE>
                   Net Interest Income
                    (In thousands; fully taxable equivalent basis)            2000               1999               1998
                   -----------------------------------------------            ----               ----               ----
                   <S>                                                      <C>                <C>                <C>
                   Interest income                                          $ 2,812            $ 2,621            $ 2,487
                   Interest expense                                           1,247              1,189              1,151
                                                                           ---------          ---------         ----------

                   Net interest income                                      $ 1,565            $ 1,432            $ 1,336
                                                                           =========          =========         ==========

                   Increase/(decrease) in net interest income                 $ 133               $ 96              $ 100
                   Percent increase of net interest income                    9.50%              7.19%              8.00%
</TABLE>

                                                                          Page 3
<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 2000 and 1999.
<TABLE>
            Change in Net                                       2000 Over 1999                          1999 Over 1998
            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                                  $  288        $ (33)        $ 255        $ 259         $ (50)       $ 209
                 Taxable securities                        (55)           4           (51)          31            (9)          22
                 Tax-exempt securities                     (30)           5           (25)         (46)            0          (46)
                 Federal funds sold and other                1           11            12          (39)          (12)         (51)
                                                  ------------- ------------ ------------- ------------ ------------- ------------
                      Total interest income                205          (13)          192          205           (71)         134
                                                  ------------- ------------ ------------- ------------ ------------- ------------
            Interest expense
                 Interest bearing DDA                       (4)          (6)          (10)           7           (21)         (14)
                 Savings                                     5           (8)           (3)          12           (16)          (4)
                 Time deposits                              46           25            72           66           (10)          56
                                                  ------------- ------------ ------------- ------------ ------------- ------------
                      Total interest expense                48           11            59           85           (47)          38
                                                  ------------- ------------ ------------- ------------ ------------- ------------
            Net interest income                          $ 157        $ (24)        $ 133        $ 120          $ 24           96
                                                  ============= ============ ============= ============ ============= ============
</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.

Page 4
<PAGE>
The  table  below   summarizes   the  Company's   average   balances,   interest
income/expense,  interest rates, net yield on earning assets,  and interest rate
spread.
<TABLE>
     Interest Rate Spread and Net
        Yield on Earning Assets                      2000                        1999                         1998
        (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                          $ 27,795   $ 2,455   8.83%  $ 24,538   $ 2,200   8.97%  $ 21,662   $ 1,991   9.19%
          Taxable securities                3,995       241   6.04%     4,903       292   5.96%     4,384       270   6.15%
          Tax-exempt securities (fully
             taxable equivalent basis)        696        52   7.50%     1,099        77   7.03%     1,750       123   7.02%
          Federalgfundsnsold andeother      1,117        64   5.73%     1,090        52   4.77%     1,891       103   5.45%
                                        ---------- ---------        ---------- ---------        ---------- ---------
             Total interest earning        33,603     2,812   8.36%    31,630     2,621   8.29%    29,687     2,487   8.38%
                                        ---------- ---------        ---------- ---------        ---------- ---------

          Cash and due from banks           2,717                       2,996                       2,725
          Other assets, net                   602                         792                         649
                                        ----------                  ----------                  ----------
               Total Assets              $ 36,922                    $ 35,418                    $ 33,061
                                        ==========                  ==========                  ==========

     Liabilities
          Interest bearing DDA's          $ 4,059        83   2.04%   $ 4,227        93   2.20%   $ 3,968       107   2.70%
          Savings                           7,453       158   2.13%     7,220       162   2.24%     6,706       166   2.48%
          Time deposits                    17,293     1,006   5.82%    16,491       934   5.66%    15,329       878   5.73%
                                        ---------- ---------        ---------- ---------        ---------- ---------
             Total interest bearing        28,805     1,247   4.33%    27,938     1,189   4.26%    26,003     1,151   4.43%
                                        ---------- ---------        ---------- ---------        ---------- ---------

          DDA's                             4,411                       4,053                       3,911
          Other liabilities                   289                         279                         283
          Shareholders' equity              3,417                       3,148                       2,864
                                        ----------                  ----------                  ----------
               Total liabilities
                 and equity              $ 36,922                    $ 35,418                    $ 33,061
                                        ==========                  ==========                  ==========

               Net interest income
                 (fully taxable
                 equivalent basis)                  $ 1,565                     $ 1,432                     $ 1,336
                                                   =========                   =========                   =========
               Net interest spread                            4.04%                       4.03%                       3.95%
                                                            ========                    ========                    ========
               Net yield on interest
                 earning assets                               4.66%                       4.53%                       4.50%
                                                            ========                    ========                    ========
               Interest earning assets/
                 interest bearing
                 liabilities                                  1.17x                       1.13x                       1.14x
</TABLE>

Non-Interest Income

The Company recorded  noninterest  income of $123,330,  an increase of $3,385 or
2.82% from  $119,945 in 1999.  This increase was  attributable  to ATM usage and
safe deposit rental fees.

Non-Interest Expense

During 2000,  noninterest expense increased by $69,802 or 7.71% from $905,009 in
1999 to $974,811 in 2000. The increases  included $53,998 in salaries & benefits
which  included  contributions  to the SEP  Plan  and  the  normal  increase  in
salaries. The other increases include $8,954 in premises and equipment.

Provision for Income Taxes

The  provision  for income  taxes was  $224,449 in 2000  compared to $189,493 in
1999,  an  increase of $34,956 or 18.45%.  The  effective  tax rate,  derived by
dividing  applicable  income tax expense by income before taxes, was 32% in 2000
and 31% in 1999.

                                                                          Page 5
<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, 2000 reflects how management has matched
assets  to  liabilities  that  mature  or have the  ability  to  reprice  in the
following time frame:
<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                   $3,000,000     $          -      $          -      $         -      $        -      $   3,000,000
Investments                        118,000         1,382,000           748,000          338,000       1,133,000         3,719,000
Loans                            1,784,000         2,815,000         5,594,000        7,781,000      11,005,000        28,979,000
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------
   Total                         4,902,000         4,197,000         6,342,000        8,119,000      12,138,000        35,698,000
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------

Liabilities
Interest-bearing
   transaction accounts          4,124,000                                                                              4,124,000
Savings                          7,337,000                                                                              7,337,000
Certificates of deposit          6,419,000         5,966,000         3,534,000        3,292,000                        19,211,000
                          ----------------- ----------------- ----------------- ---------------- --------------- -----------------
   Total                        17,880,000         5,966,000         3,534,000        3,292,000                        30,672,000

Asset/(Liabilities) GAP        (12,978,000)       (1,769,000)        2,808,000        4,827,000      12,138,000         5,026,000
                          ================= ================= ================= ================ =============== =================

Cumulative GAP               $ (12,978,000)    $ (14,747,000)    $ (11,939,000)    $ (7,112,000)    $ 5,026,000
                          ================= ================= ================= ================ ===============
</TABLE>

Page 6
<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  1 year GAP  position  increased  from  ($14,495,000)  at
December  31,  1999 to  ($14,747,000)  at  December  31,  2000 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 2001 the Bank  could  pay  additional  dividends  of
approximately $630,000 plus 2001 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, 2000,
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  $60,000 or 0.21% of
total loans at December 31, 2000  compared to  approximately  $79,000 or 0.29% a
year earlier.

The provision for loan losses was $4,000 in 2000, $12,000 in 1999 and $21,000 in
1998. For the same years, charge-offs,  net of recoveries,  were $21,333, $9,296
and $22,384.

                                                                          Page 7
<PAGE>
The allowance for loan losses is at $164,618 or 0.57% of total loans at December
31, 2000  compared to  $181,951  or 0.68% of total loans at year-end  1999.  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  $2,931,030  and
$2,318,500 as of December 31, 2000 and 1999 in  outstanding  lines of credit and
commitments to make loans of which  $1,143,119 and $827,922 were still available
to the respective borrower.  Furthermore,  the Bank had issued letters of credit
totaling $167,000 and $288,248 as of December 31, 2000 and 1999.

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,  2000,  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 14 full-time  employees and 5 part-time  employees at December
31, 2000.

The Bank does not offer commercial, consumer, international, trust, or municipal
trading services.

Page 8
<PAGE>
                        DIRECTORS AND EXECUTIVE OFFICERS

ERVIN R. NOWAK                             EUGENE MCLEAN
Chairman of the Board of:                  Director of:
  Huron National Bancorp, Inc. and           Huron National Bancorp, Inc.
  Huron National Bank                        Huron National Bank
President of Builders Mart, Inc.           Retired Shipping Captain

MARVIN C. BEATTY                           LYNWOOD LAMB
Vice-Chairman of:                          Director of:
  Huron National Bancorp, Inc.               Huron National Bancorp, Inc.
  Huron National Bank                        Huron National Bank
Owner StateWide Real Estate                Investment Advisor

LOUIS DEHRING                              MICHAEL L. CAHOON
Director of:                               President and Chief Executive Officer
  Huron National Bancorp, Inc.             and Director of:
  Huron National Bank                        Huron National Bancorp, Inc.
Owner Paull Investments                      Huron National Bank

DONALD A. HAMPTON                          LEON DELEKTA
Director of:                               Director of:
  Huron National Bancorp, Inc.               Huron National Bancorp, Inc.
  Huron National Bank                        Huron National Bank
President of The Buoy, Inc. and            Retired Potato Farmer and
Hampton IGA, Inc.                          Truck Transportation

JOHN A. TIERNEY                            PAULETTE D. KIERZEK
Director of:                               Cashier of Huron National Bank
  Huron National Bancorp, Inc.             Chief Financial Officer of:
  Huron National Bank                        Huron National Bancorp, Inc.
Owner of Tierney & Williams, Inc.,         Secretary to the Board of:
President of 211 Bar & Restaurant;           Huron National Bancorp, Inc.
Partner of Knost Cottages; and Secretary-    Huron National Bank
Treasurer of Aurora Gas Company

DALE L. BAUER
Vice-President of:
  Huron National Bank

                                                                          Page 9
<PAGE>
HURON NATIONAL BANCORP, INC.
--------------------------------------------------------------------------------
<TABLE>
                           CONSOLIDATED BALANCE SHEETS
                           December 31, 2000 and 1999

ASSETS                                                                              2000                         1999
                                                                                    ----                         ----
<S>                                                                             <C>                           <C>
    Cash and due from banks                                                      $2,846,122                   $3,634,757
    Federal funds sold                                                            3,000,000                      600,000
                                                                              -------------                -------------
           Total cash and cash equivalents                                        5,846,122                    4,234,757
    Securities available for sale                                                 3,207,027                    4,814,098
    Securities held to maturity
        (Fair value of $522,800 in 2000
          and $490,310 in 1999)                                                     511,956                      487,584

    Loans                                                                        28,979,242                   26,703,817
        Allowance for loan losses                                                  (164,618)                    (181,951)
                                                                              -------------                -------------
           Net loans                                                             28,814,624                   26,521,866

    Bank premises and equipment - net                                               409,862                      442,326
    Accrued interest receivable                                                     296,069                      265,011
    Other assets                                                                    139,191                      113,392
                                                                              -------------                -------------
              Total Assets                                                     $ 39,224,851                 $ 36,879,034
                                                                              =============                =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
    Deposits
        Non interest-bearing transaction accounts                                $4,702,260                   $3,968,819
        Interest-bearing transaction accounts                                     4,124,264                    5,177,940
        Savings                                                                   7,337,491                    7,366,913
        Time                                                                     19,211,165                   16,933,772
                                                                              -------------                -------------
              Total deposits                                                     35,375,180                   33,447,444
    Accrued interest payable                                                         75,952                       70,036
    Other liabilities                                                               214,414                      173,760
                                                                              -------------                -------------
              Total liabilities                                                  35,665,546                   33,691,240

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                                                             2,315,264                    1,985,816
    Accumulated other comprehensive loss, net
      of tax of $3,070 in 2000 and $24,738 in 1999                                   (5,959)                     (48,022)
                                                                              -------------                -------------
              Total shareholders' equity                                          3,559,305                    3,187,794
                                                                              -------------                -------------
                 Total liabilities and shareholders' equity                    $ 39,224,851                 $ 36,879,034
                                                                              =============                =============
</TABLE>
                            See accompanying notes                       Page 11
<PAGE>
HURON NATIONAL BANCORP, INC.
--------------------------------------------------------------------------------

               CONSOLIDATED STATEMENTS OF INCOME
             For the years ended December 31, 2000, 1999 and 1998
<TABLE>
                                                                      2000                     1999                  1998
                                                                      ----                     ----                  ----
<S>                                                                <C>                      <C>                   <C>
Interest Income
    Loans, including fees                                          $ 2,455,383              $ 2,200,281           $ 1,990,859
    Federal funds sold                                                  63,969                   49,530               101,184
    Securities:
      Taxable                                                          241,284                  292,201               269,853
      Tax exempt                                                        34,433                   51,264                81,034
      Other                                                              2,250                    2,250                 2,250
                                                                 -------------            -------------         -------------
        Total interest income                                        2,797,319                2,595,526             2,445,180

Interest Expense
    Deposits                                                         1,247,316                1,189,450             1,151,318
                                                                 -------------            -------------         -------------
Net Interest Income                                                  1,550,003                1,406,076             1,293,862

Provision for Loan Losses                                                4,000                   12,000                21,000
                                                                 -------------            -------------         -------------
Net Interest Income After
   Provision for Loan Losses                                         1,546,003                1,394,076             1,272,862

Non-Interest Income
    Service charges                                                     74,510                   78,789                87,855
    Other                                                               48,820                   41,156                44,179
                                                                 -------------            -------------         -------------
        Total non-interest income                                      123,330                  119,945               132,034

Non-Interest Expense
    Salaries and benefits                                              522,775                  468,777               435,478
    Premises and equipment                                             146,048                  137,094               132,960
    Legal and accounting fees                                           59,414                   59,049                56,726
    Other operating expense                                            246,574                  240,089               240,435
                                                                 -------------            -------------         -------------
        Total non-interest expense                                     974,811                  905,009               865,599
                                                                 -------------            -------------         -------------
Income Before Income Tax                                               694,522                  609,012               539,297

Provision for Income Tax                                               224,449                  189,493               159,097
                                                                 -------------            -------------         -------------
Net Income                                                           $ 470,073                $ 419,519             $ 380,200
                                                                 =============            =============         =============
Basic and Diluted Earnings Per Share                                    $ 7.52                   $ 6.71                $ 6.08
                                                                 =============            =============         =============
</TABLE>
Page 12                  See accompanying notes
<PAGE>
HURON NATIONAL BANCORP, INC.
--------------------------------------------------------------------------------
                      CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                            For the years ended December 31, 2000, 1999 and 1998
<TABLE>
                                                                                                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, 1998                           $ 625,000     $ 625,000      $ 1,423,597         $ 4,253       $ 2,677,850
    Comprehensive income:
    Net income for the year                                                           380,200                           380,200
    Net change in unrealized gain on securities
      available for sale, net of tax of ($3,939)                                                        7,647             7,647
                                                                                                                 ---------------
        Total comprehensive income                                                                                      387,847
    Cash dividends ($1.80 per share)                                                 (112,500)                         (112,500)
                                                  ------------- -------------  ---------------  --------------   ---------------
BALANCE AT DECEMBER 31, 1998                           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
                                                  ============= =============  ===============  ==============   ===============
</TABLE>

                                                                         Page 13
<PAGE>
HURON NATIONAL BANCORP, INC.
--------------------------------------------------------------------------------
<TABLE>
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2000, 1999 and 1998

CASH FLOWS FROM OPERATING ACTIVITIES                                               2000               1999               1998
                                                                                   ----               ----               ----
<S>                                                                            <C>                 <C>                <C>
    Net income                                                                     $ 470,073          $ 419,519          $ 380,200
    Adjustments to reconcile net income to net cash
      from operating activities
        Depreciation and amortization                                                 61,593             57,443             54,291
        Net premium amortization and discount accretion on securities                323,677            218,911            144,832
        Provision for loan losses                                                      4,000             12,000             21,000
        Increase/(decrease) in cash from change in assets
          and liabilities:
            Interest receivable                                                      (31,058)             2,171              3,480
            Other assets and other real estate                                       (25,799)            14,584             24,294
            Interest payable                                                           5,916             (3,693)            11,440
            Other liabilities                                                         18,985            (42,412)            80,150
                                                                              ---------------    ---------------    ---------------
                Net cash from operating activities                                   827,387            678,523            719,687
                                                                              ---------------    ---------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Available-for-sale securities:
        Purchases                                                                                    (1,997,513)        (1,070,932)
        Maturities                                                                 1,350,000          1,281,429          1,000,000
    Held-to-maturity securities:
        Purchases                                                                   (195,246)                             (501,852)
        Maturities                                                                   168,000            667,000          1,510,000
    Net increase in loans                                                         (2,296,758)        (3,155,141)        (3,748,103)
    Purchases of property and equipment, net                                         (29,129)           (27,874)            (9,413)
                                                                              ---------------    ---------------    ---------------
                Net cash from investing activities                                (1,003,133)        (3,232,099)        (2,820,300)
                                                                              ---------------    ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase in deposit accounts                                               1,927,736          1,992,730          2,742,665
    Dividends paid                                                                  (140,625)          (125,000)          (112,500)
                                                                              ---------------    ---------------    ---------------
                Net cash from financing activities                                 1,787,111          1,867,730          2,630,165
                                                                              ---------------    ---------------    ---------------

NET INCREASE/(DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                                 1,611,365           (685,846)           529,552
CASH AND CASH EQUIVALENTS AT:
  BEGINNING OF YEAR                                                                4,234,757          4,920,603          4,391,051
                                                                              ---------------    ---------------    ---------------
  END OF YEAR                                                                    $ 5,846,122        $ 4,234,757        $ 4,920,603
                                                                              ===============    ===============    ===============

SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for:
    Interest                                                                     $ 1,241,400        $ 1,193,143        $ 1,137,543
    Federal income tax                                                               187,744            241,169             79,304


    Non cash investing activities:
    Loan transferred to other real estate                                                  0                  0           $ 21,448
    Transfer from held-to-maturity securities to available-for-sale                        0        $ 2,294,050                  0
</TABLE>

Page 14                       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  financial  statements  in  conformity  with
generally  accepted  accounting  principles,   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
Activites."  SFAS No. 133 requires all derivative  instruments to be recorded at
fair  values.  As the  Bank had no  derivative  holdings  in 2000 or  1999,  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  standard,  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.

     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 15
<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.

     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.

     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 fair  value  less  costs to  sell.  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  oustanding.  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, 2000,
1999, or 1998.

     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.

Page 16
<PAGE>
NOTE 2 - CASH AND DUE FROM BANKS

     As of December 31, 2000,  the Bank was required to maintain  cash  balances
with the Federal  Reserve Bank in the amount of $75,000.  These balances due not
earn interest.

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>
                 2000
              Securities Available for Sale:             Fair Value           Gains           Losses
              ------------------------------             ----------           -----           ------
              <S>                                        <C>                 <C>             <C>
                    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


                 1999
              Securities Available for Sale:             Fair Value           Gains           Losses
              ------------------------------             ----------           -----           ------
                    U.S. Treasury                          $ 296,438        $    -           $ (2,506)
                    U.S. Agency                            1,606,203                          (39,444)
                    Mortgage-backed                          412,610                          (15,252)
                    State and Municipal                    1,770,144                          (14,660)
                    Corporate                                728,703                             (898)
                                                         $ 4,814,098        $    -           $(72,760)
                                                                                                            Carrying
              Securities Held To Maturity:               Fair Value           Gains           Losses          Amount
              ----------------------------               ----------           -----           ------          ------
                    State and Municipal                    $ 490,310         $ 2,726         $     -       $ 487,584
                                                           $ 490,310         $ 2,726         $     -       $ 487,584
</TABLE>
There were no sales of securities during 2000, 1999 or 1998.

The carrying amount and estimated fair value of securities at December 31, 2000,
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                    $ 1,154,480                       $ 148,511       $ 148,250
              Due after one year through five years          682,502                         248,595         243,706
              Due after five years through ten years       1,012,504                         125,694         120,000
                                                         -----------                       ---------       ---------
                   Subtotal                                2,849,486                         522,800         511,956
              Mortgage-backed                                357,541
                                                         -----------                       ---------       ---------
                        Totals                           $ 3,207,027                       $ 522,800       $ 511,956
                                                         ===========                       =========       =========
</TABLE>

                                                                         Page 17
<PAGE>
NOTE 3 - SECURITIES (continued)

Securities  available  for sale with a fair value of  $299,657  and  $298,944 at
December 31, 2000 and 1999 were 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>
                                                                          2000              1999
                                                                          ----              ----
                                <S>                                    <C>              <C>
                                Commercial                               $ 3,826,480       $ 3,381,098
                                Real estate                               16,640,600        15,435,985
                                Installment                                8,512,162         7,886,734
                                                                     ----------------  ----------------
                                          Total loans                    $28,979,242       $26,703,817
                                                                     ================  ================
</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>
                                                                                              2000
                                                                                              ----
                                      <S>                                               <C>
                                      Balance - January 1                                    $ 757,465
                                           New loans                                           155,553
                                           Repayments                                         (556,121)
                                                                                       ----------------
                                      Balance - December 31                                  $ 356,897
                                                                                       ================
</TABLE>

NOTE 5 -  ALLOWANCE FOR LOAN LOSSES

An analysis of changes in the allowance for loan losses follows:
<TABLE>
                                                                          2000              1999              1998
                                                                          ----              ----              ----
                    <S>                                               <C>                <C>                <C>
                    Balance at beginning of year                           $ 181,951         $ 179,247         $ 180,631
                    Additions (Deductions)
                         Provision for loan losses                             4,000            12,000            21,000
                         Recoveries credited to allowance                     16,937             4,155             2,332
                         Loans charged-off                                   (38,270)          (13,451)          (24,716)
                                                                     ----------------  ----------------  ----------------
                    Balance at end of year                                 $ 164,618         $ 181,951         $ 179,247
                                                                     ================  ================  ================
</TABLE>

During the years 2000 and 1999,  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
                    2000                                                  Cost           Depreciation          Amount
                    ----                                                  ----           ------------          ------
                    <S>                                                <C>               <C>               <C>
                    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
                                                                     ================  ================  ================

                    1999
                    ----
                    Land                                                    $ 60,000                            $ 60,000
                    Bank building and improvements                           483,260        $ (226,430)          256,830
                    Furniture and equipment                                  468,427          (342,931)          125,496
                                                                     ----------------  ----------------  ----------------
                         Total                                           $ 1,011,687        $ (569,361)        $ 442,326
                                                                     ================  ================  ================
</TABLE>
Provision for depreciation of %61,593,  $57,443,  and $54,291,  were included in
non-interest expense in 2000, 1999 and 1998.

Page 18
<PAGE>
NOTE 7 - DEPOSITS

The Bank had approximately  $2,946,000 and $2,582,000 in time deposits issued in
denominations  of $100,000 or more as of  December  31, 2000 and 1999.  Interest
expense  on time  deposits  issued  in  denominations  of  $100,000  or more was
approximately $148,000, $95,000, and $103,000 in 2000, 1999 and 1998.

At year-end 2000, stated maturities of time deposits were:
<TABLE>
                                                     <S>              <C>
                                                     2001                $ 11,882,273
                                                     2002                   1,957,030
                                                     2003                   1,681,995
                                                     2004                     810,914
                                                     2005                   2,878,953
                                                                    ------------------
                                                                         $ 19,211,165
                                                                    ==================
</TABLE>

Related party deposits totaled $496,506 and $359,614 at year-end 2000 and 1999.

NOTE 8 - INCOME TAX

The provision for federal income tax for the years ended December 31 consists of
the following:
<TABLE>
                                                                          2000                1999              1998
                                                                          ----                ----              ----
                <S>                                                   <C>                  <C>               <C>
                Current expense                                             $ 219,636          $ 180,187       $ 186,242
                Deferred expense (benefit)                                      4,813              9,306         (27,145)
                                                                    ------------------   ----------------   -------------
                     Provision for income tax                               $ 224,449          $ 189,493        $159,097
                                                                    ==================   ================   =============
</TABLE>

Included  in other  liabilities  are  deferred  tax  balances  arising  from the
following items:
<TABLE>
                                                                                                  December 31,
                            Deferred tax assets:                                              2000              1999
                                                                                              ----              ----
                            <S>                                                           <C>                <C>
                               Allowance for loan losses                                        $ 34,073        $ 39,966
                               Unrealized loss on securities available for sale                    3,069          24,738
                               Other                                                                 477             754
                                                                                         ----------------   -------------
                                                                                                  37,619          65,458
                            Deferred tax liabilities:
                               Effects of preparing tax return on a cash basis                 $ (69,811)      $ (60,582)
                               Property and equipment                                            (92,876)       (101,392)
                               Other                                                              (2,616)         (4,687)
                                                                                         ----------------   -------------
                                                                                                (165,303)       (166,661)
                                                                                         ----------------   -------------
                                      Net deferred tax liability                              $ (127,684)      $(101,203)
                                                                                         ================   =============
</TABLE>
                                                                         Page 19
<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>
                                                                                      2000            1999             1998
                                                                                      ----            ----             ----
                          <S>                                                       <C>             <C>             <C>
                          Statutory rate applied to income before taxes               $ 236,137       $ 207,064        $ 183,361

                          Add (deduct)
                             Tax-exempt interest income                                 (15,879)        (21,495)         (27,478)
                             Other                                                        4,191           3,924            3,214
                                                                                  --------------  --------------   --------------
                                    Provision for income tax                           $224,449       $ 189,493        $ 159,097
                                                                                  ==============  ==============   ==============
</TABLE>

NOTE 9 - OTHER OPERATING EXPENSE

Other  operating  expenses  for the  years  ended  December  31  consist  of the
following:
<TABLE>
                                                                                        2000            1999             1998
                                                                                        ----            ----             ----
                          <S>                                                       <C>            <C>              <C>
                          Office supplies                                              $ 22,015        $ 27,793         $ 25,660
                          Directors fees                                                 43,200          57,200           52,800
                          General insurance                                              23,805          19,065           19,282
                          ATM fees                                                       24,257          25,406           23,929
                          Other expense                                                 133,297         110,625          118,764
                                                                                  --------------  --------------   --------------
                                    Total other operating expenses                     $246,574       $ 240,089        $ 240,435
                                                                                  ==============  ==============   ==============
</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>
                                                                                        2000            1999
                                                                                        ----            ----
                                      <S>                                             <C>             <C>
                                      Outstanding letters of credit                   $ 167,000       $ 288,248
                                      Commitments to make loans
                                         and unused lines of credit                   1,143,119         827,922
</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, 2000.

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 $4,829,554 and $2,684,855 at December 31, 2000 and 1999.

Page 20
<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 2001  the  Bank is  limited  to  paying  additional
dividends of approximately $630,000 plus 2001 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, 2000, 1999 and 1998 was $8,002, $7,106 and $6,653.

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>
                                                                2000                        1999
                                                       Carrying       Fair         Carrying        Fair
                                                        Amount       Value          Amount        Value
                                                        ------       -----          ------        -----
              <S>                                      <C>          <C>             <C>            <C>
              Financial assets
                   Cash and cash equivalents            $ 5,846      $ 5,846        $ 4,235        $ 4,235
                   Securities                             3,719        3,730          5,302          5,304
                   Loans, net                            28,815       28,688         26,522         26,680
                   Federal Reserve stock                     38           38             38             38
                   Accrued interest receivable              296          296            265            265

              Financial liabilities
                   Deposits                            $(35,375)    $(34,764)      $(33,447)     $ (33,313)
                   Accrued interest payable                 (76)         (76)           (70)           (70)
</TABLE>

                                                                         Page 21
<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.

CONDENSED FINANCIAL INFORMATION

Presented below are condensed financial statements for the parent company:
<TABLE>
           CONDENSED BALANCE SHEETS
                                                                                                 December 31,
           ASSETS                                                                             2000          1999
                                                                                              ----          ----
           <S>                                                                            <C>              <C>
                Cash and cash equivalents                                                 $       1,373    $     2,613
                Investment in Huron National Bank                                             3,557,932      3,185,181
                                                                                          -------------    -----------
                     Total assets                                                         $   3,559,305    $ 3,187,794
                                                                                          =============    ===========
           LIABILITIES                                                                    $                $

           SHAREHOLDERS' EQUITY                                                           $   3,559,305    $ 3,187,794
                                                                                          -------------    -----------
                     Total liabilities and shareholders' equity                           $   3,559,305    $ 3,187,794
                                                                                          =============    ===========
</TABLE>

At year end, the Bank's actual capital levels (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
           2000                                        Amount   Ratio      Amount   Ratio         Amount       Ratio
           ----                                        ------   -----      ------   -----         ------       -----
           <S>                                         <C>      <C>        <C>      <C>           <C>          <C>
           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%

           1999
           Total capital (to risk weighted assets)     $ 3.4     14.4%     $ 1.9    8.0%          $ 2.4        10.0%
           Tier 1 capital (to risk weighted assets)      3.2     13.6%       1.0    4.0%            1.4         6.0%
           Tier 1 capital (to average assets)            3.2      8.9%       1.4    4.0%            1.8         5.0%
</TABLE>

The Bank at year end 2000 and 1999 was categorized as well capitalized.


Page 22
<PAGE>
NOTE 15 - HURON NATIONAL BANCORP, INC. (PARENT COMPANY ONLY)

CONDENSED FINANCIAL INFORMATION (continued)
<TABLE>
                                                CONDENSED STATEMENTS OF INCOME
                                                                                     Years Ended December 31,
                                                                                2000           1999            1998
                                                                                ----           ----            ----
         <S>                                                               <C>             <C>            <C>
         Operating Income
              Dividends from Huron National Bank                              $ 150,625      $ 135,000       $ 122,500
         Operating Expenses
              Other expenses                                                     11,240          8,759          10,719
                                                                           -------------  -------------   -------------
         Income before equity in undistributed
            net income of subsidiary                                            139,385        126,241         111,781

         Equity in undistributed net income of subsidiary                       330,688        293,278         268,419
                                                                           -------------  -------------   -------------
         Net Income                                                           $ 470,073      $ 419,519       $ 380,200
                                                                           =============  =============   =============
</TABLE>
<TABLE>
                                              CONDENSED STATEMENTS OF CASH FLOWS
                                                                                    Years Ended December 31,
                                                                               2000           1999            1998
                                                                               ----           ----            ----
         <S>                                                                <C>            <C>             <C>
         Cash Flows from Operating Activities
              Net income                                                      $ 470,073      $ 419,519       $ 380,200
              Adjustments to reconcile net income to
                 cash from operating activities:
              Equity in undistributed net income
                 of subsidiary                                                 (330,688)      (293,278)       (268,419)
                                                                           -------------  -------------   -------------
         Net cash from operating activities                                     139,385        126,241         111,781
                                                                           -------------  -------------   -------------
         Cash Flows from Financing Activities
              Dividends paid                                                   (140,625)      (125,000)       (112,500)
                                                                           -------------  -------------   -------------
              Net Cash from Financing Activities                               (140,625)      (125,000)       (112,500)
                                                                           -------------  -------------   -------------
         Net Change in Cash and Cash Equivalents                                 (1,240)         1,241            (719)
         Cash and Cash Equivalents at:
              Beginning of the period                                             2,613          1,372           2,091
                                                                           -------------  -------------   -------------
              End of the period                                                 $ 1,373        $ 2,613         $ 1,372
                                                                           =============  =============   =============
</TABLE>


NOTE 16 - QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
                                                  Interest      Net Interest     Net            Earnings
                 2000                              Income          Income       Income         Per Share
                 ----                              ------          ------       ------         ---------
                 <S>                             <C>             <C>           <C>              <C>
                      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

                 1999
                 ----
                      First quarter              $ 639,592       $ 347,366     $104,815         $ 1.68
                      Second quarter               639,427         343,429       99,908           1.60
                      Third quarter                652,525         352,781      103,022           1.65
                      Fourth quarter               663,982         362,500      111,774           1.78
</TABLE>

                                                                         Page 23
<PAGE>
                               HURON NATIONAL BANK
                              200 East Erie Street
                              Rogers City, MI 49779
                              Phone: (517) 734-4734
                               Fax: (517) 734-4737
                            email: hnb@george.lhi.net
--------------------------------------------------------------------------------
HOURS
               Bank Lobby -             9:00 a.m. - 3:00 p.m. Monday-Thursday
                                                 9:00 a.m. - 5:00 p.m. Friday

               Drive-up Window -          9:00 a.m. - 5:00 p.m. Monday-Friday
                                                 9:00 a.m. - 12 noon Saturday

               ATM -                                       Available 24 hours
--------------------------------------------------------------------------------
BOARD OF DIRECTORS AND OFFICERS

                         Ervin Nowak, Chairman
                         Marvin Beatty, Vice-Chairman
                         Michael L. Cahoon, President & CEO, Director
                         Louis Dehring, Director
                         Leon Delekta, Director
                         Donald Hampton, Director
                         Lynwood Lamb, Director
                         Eugene McLean, Director
                         John Tierney, Director
                         Dale L. Bauer, Vice-President
                         Paulette D. Kierzek, Cashier & Secretary to the Board

--------------------------------------------------------------------------------
PERSONNEL

                         Shirley Bisson, Teller
                         Holly Bruning, Teller
                         Lisa Ciarkowski, Teller /Bookkeeper
                         Diane Delekta, Teller
                         Ann Hall, Bookkeeper
                         Vicki Kieliszewski, Bookkeeping Supervisor
                         Julie Konieczny, Receptionist & Loan Clerk
                         Judy Meyer, Proof Operator
                         Ruth Myers, Head Teller
                         Heather Sobeck, Bookkeeper
                         Connie Standen, Teller
                         Jennifer Tomas, Teller
                         Corinna Willis, Teller
                         Mary Sue Wozniak, Loan Supervisor
<PAGE>
                                   EXHIBIT 21



                               LIST OF SUBSIDIARY


               NAME                                   INCORPORATED
               ----                                   ------------
    1.  Huron National Bank                             Michigan