# U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

# FORM 10-KSB/A

|[ X ]                                                                                                                                              | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------
|For the fiscal year ended December 31, 2001 or                                                                                                    
|[     ]                                                                                                                                            | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
        OF 1934 (NO FEE REQUIRED)
|For the transition period from __________________ to ____________________
                                          Commission file number 0-19181

|HURON NATIONAL BANCORP, INC.

                              (Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------------

|Michigan

(State of Incorporation) | 38-2855012

(I.R.S. Employer Identification No.)
|---------------------------------- | ------------------------------------------------

|200 East Erie Street, Rogers City, Michigan

(Address of principal executive offices) | 49779

(Zip Code)
|------------------------------------------------------------------------------------- | -----------------

Issuer's telephone number:   (989) 734-4734

|Securities registered pursuant to Section 12(b) of
the Act:
|-----------------------------------------------------------
|Title of each class
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 Exchange Act of 1934 during the  preceding 12 months (or for such shorter  period that the  registrant
was  required to file such  reports),  and (2) has been subject to such filing  requirements  for the past 90 days.
  [ X ] Yes  [     ] No

Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-B 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.  [     ]

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

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



---

# EXPLANATORY
NOTE

The
Registrant is amending its Annual Report on Form 10-KSB for the year ended
December 31, 2001 to identify Paulette D. Kierzek as the Registrants
principal accounting officer and to include the report of Crowe, Chizek and
Company LLP, the Registrants independent auditor, in Exhibit 13 pursuant
to Article 2-02 of Regulation S-X, which report was unintentionally omitted from
Exhibit 13 in the original filing via EDGAR, but was included in the printed
version distributed to the Companys shareholders.

2

---

# SIGNATURES

In accordance with Section
13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on our behalf by the undersigned, thereunto duly
authorized on November 5, 2002.

HURON NATIONAL BANCORP, INC.

|/s/ Michael L. Cahoon

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

Paulette D. Kierzek 
Chief Financial Officer and
Principal Accounting Officer
|------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------

In accordance with the
Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities indicated on
November 5, 2002.

|/s/ Marvin Beatty

Marvin Beatty 
Chairman of the Board |  | Lynwood Lamb 
Director
|------------------------------------------------------- |  | ----------------------

|/s/ Donald Hampton

Donald Hampton 
Director |  | /s/ Leon Delekta

Leon Delekta 
Vice Chairman
|-------------------------------------------- |  | ---------------------------------------------

|/s/ John Tierney

John Tierney 
Director |  | /s/ Michael L. Cahoon

Michael L. Cahoon 
Director, President and CEO
|---------------------------------------- |  | ---------------------------------------------------------------------

|/s/ Dale L. Bauer

Dale L. Bauer  
Vice President |  | /s/ Louis Dehring

Louis Dehring 
Director
|------------------------------------------------- |  | ------------------------------------------

| |  | /s/ Paulette D. Kierzek

Paulette D. Kierzek 
Cashier
| |  | -----------------------------------------------------

3

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INDEX TO EXHIBITS

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

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

| | The
consolidated financial statements and notes related thereto appear on pages 11
through 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/A Report. With
the exception of these statements and information, the Annual Report to
Shareholders for the year ended December 31, 2001, is not deemed filed as part
of this Form 10-KSB/A.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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EXHIBIT 13

ANNUAL SHAREHOLDER REPORT

2001

HURON NATIONAL BANCORP, INC.
ROGERS CITY, MICHIGAN



---

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

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

---



---

|HURON NATIONAL BANCORP, INC.
|----------------------------

|Table of Contents                                                                                               
|----------------------------------------------------------------------------------------------------------------
|Letter to Shareholders
Selected Financial Data          
Directors, Officers and Personnel
Corporate Information



---

HURON NATIONAL BANCORP, INC.

April 3, 2002

DEAR SHAREHOLDER:

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

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

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

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

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

Sincerely,
/s/ Michael L. Cahoon
Michael L. Cahoon
President & Chief Executive Officer

1

---

HURON NATIONAL BANCORP, INC.
SELECTED FINANCIAL DATA

`For the Year Ended December 31,
SUMMARY OF OPERATIONS                                    2001             2000             1999              1998             1997
                                                         ----             ----             ----              ----             ----

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

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

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

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

PER SHARE DATA

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

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

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

RATIOS

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

PERIOD END TOTALS (000's)

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

* Average shareholders'
equity includes net average unrealized gain/loss on securities available for
sale.

2

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DIRECTORS AND OFFICERS

|Marvin Beatty
Chairman of:            
    Huron National Bancorp, Inc.
    Huron National Bank            
Owner State Wide Realty          Leon Delekta                  
Vice-Chairman of:                
    Huron National Bancorp, Inc.   
    Huron National Bank            
Retired Potato Farmer            
Truck Transportation             Eugene McLean                 
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
Retired Shipping Captain         Lynwood Lamb                  
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
Investment Advisor               Louis Dehring                 
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
Owner Paull Investments          Ervin Nowak                   
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
President of Builders Mart, Inc. Donald Hampton                
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
President of Hampton IGA, Inc.   John Tierney                  
Director of:                     
    Huron National Bancorp, Inc.   
    Huron National Bank            
Owner of Tierney & Williams, Inc.
President of 211 Bar & Restaurant
Secretary/Treasurer of Aurora Gas Company | Michael L. Cahoon
President and Chief Executive Officer
and Director of:
   Huron National Bancorp, Inc.
   Huron National BankDale L. Bauer
Vice-President of:
    Huron National BankPaulette D. Kierzek
Cashier of Huron National Bank
Chief Financial Officer of:
    Huron National Bancorp, Inc.
Secretary to the Board of
    Huron National Bancorp, Inc.
    Huron National BankPERSONNEL
Shirley Bisson, Teller
Holly Bruning, Teller
Lisa Ciarkowski, 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 SupervisorHOURS
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
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

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|CORPORATE
|---------

|Huron National Bancorp Inc., a bank holding company,
        provides a broad range of banking services to businesses
        and individuals in the Presque Isle County area. Its sole
        subsidiary, Huron National Bank, was founded on
        May 12, 1980.Headquarters
        200 E. Erie Street
        Rogers City, Michigan 49779
        (989) 734-4734
        email: hnb@george.lhi.netAnnual Meeting
        Wednesday, April 24, 2002, 10:00 a.m.
        Huron National Bank Meeting Room
        Rogers City, Michigan 49779Stock Transfer Agent and Registrar
        Huron National Bancorp, Inc.
        Attn: Proxy Department
        200 E. Erie Street
        Rogers City, Michigan 49779Form 10-KSB and Other Financial Reports
        Copies of this annual report, the Corporation's
        Annual Report on Form 10-KSB as filed with the
        Securities and Exchange Commission may be
        obtained from:Paulette D. Kierzek
        Chief Financial Officer & Secretary
        Huron National Bank
        200 E. Erie Street
        Rogers City, Michigan 49779Independent Accountants
        Crowe, Chizek and Company LLP
        330 East Jefferson Boulevard P.O. Box 7
        South Bend, Indiana 46624
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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

ANNUAL SHAREHOLDER REPORT

2001

HURON NATIONAL BANCORP, INC.
ROGERS CITY, MICHIGAN



---

HURON NATIONAL BANCORP, INC.

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

December 31, 2001



---

|HURON NATIONAL BANCORP, INC.
CONTENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|SELECTED FINANCIAL DATA
TWO YEAR SUMMARY OF COMMON STOCK DATA BY QUARTER             
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL            
    CONDITION AND RESULTS OF OPERATIONS                        
REPORT OF INDEPENDENT AUDITORS                               
CONSOLIDATED FINANCIAL STATEMENTS:                           
     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



---

HURON NATIONAL BANCORP, INC.
SELECTED FINANCIAL DATA

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

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

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

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

PER SHARE DATA

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

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

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

RATIOS

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

PERIOD END TOTALS (000's)

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

* Average shareholders'
equity includes net average unrealized gain/loss on securities available for
sale.

-1-

---

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.

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

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

         Third Quarter          150                $52.00                    257                 $50.00
                                800                Price Unknown

         Fourth Quarter          0                 $0.00                      10                 $50.00`

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

Dividends declared per
share were $2.25 during 2001 and 2000.

-2-

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

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

SUMMARY

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

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

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

RESULTS OF OPERATIONS

Analysis of Net Interest Income

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

The following table
summarizes the increases in net interest income.

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

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

                   Increase/(decrease) in net interest income                 $ (30)             $ 133              $ 96
                   Percent increase/(decrease) of net interest income         (1.92)%            9.50%             7.19%`

-3-

---

The two variables that have
the most significant effect on the change in the net interest income are volume
and rate. Below is a chart which illustrates the impact of changes in these two
important variables for 2001 and 2000.

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

 Net interest income                                      $ (19)       $ (11)        $ (30)       $ 157         $ (24)         133
                                                  ============= ============ ============= ============ ============= ============`

| | (1) | For purposes of these tables, changes in interest due to volume and rate were
determined as follows:
Volume variance-change in volume multiplied by the previous year's rate.
     Rate variance-change in rate multiplied by the previous year's volume.
Rate/volume
variance-change in volume multiplied by the change in rate. This variance was
allocated to volume variance and rate variance in proportion to the relationship
of the absolute dollar amount of the change in each.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

The following table
summarizes the Company's average balances, interest income/expense, interest
rates, net yield on earning assets, and interest rate spread.

-4-

---

`Net Interest Spread and Net
        Yield on Interest Earning Assets             2001                       2000              1999
        (Dollars in Thousands)           Average                     Average                     Average
     Assets                              Balance   Interest  Rate    Balance   Interest  Rate    Balance  Interest   Rate
                                        ---------- -------- ------- ---------- -------- ------- --------- --------- -------
          Loans                          $ 29,213   $ 2,605   8.92%  $ 27,795   $ 2,455  8.83%   $ 24,538  $ 2,200   8.97%
          Taxable securities                4,347       236   5.41%     3,995       241  6.04%      4,903      292   5.96%
          Tax-exempt securities (fully
             taxable equivalent basis)      1,196        81   6.79%       696        52  7.50%      1,099       77   7.03%
          Federalgfundsnsold andeother      3,591       132   3.69%     1,117        64  5.73%      1,090       52   4.77%
                                        ---------- ---------        ---------- ---------        ---------- --------
             Total interest earning        38,347     3,054   7.96%    33,603     2,812  8.36%     31,630    2,621   8.29%
                                        ---------- ---------        ---------- ---------        ---------- --------

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

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

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

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

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

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

               Interest earning assets/
                  interest bearing liabilities               1.15x                      1.17x                       1.13x`

Non-Interest Income

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

Non-Interest Expense

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

Provision for Income Taxes

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

-5-

---

FINANCIAL CONDITION
Liquidity and Interest Rate Sensitivity

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

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

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

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

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

GAP Analysis

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

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

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

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

Cumulative GAP                   $ (14,995)        $ (19,215)        $ (11,265)        $ (9,747)        $ 5,364
                          ================= ================= ================= ================ ===============`

-6-

---

Interest-bearing
transaction and savings accounts are classified as repricing in 0-90 days as
these instruments provide management with the discretion to adjust their rates.
Further, because this category has no maturity schedule or early withdrawal
penalty, depositors are free to move their funds based on rate alone. Therefore,
management recognizes that these categories, although generally lower costing
funds, are rate sensitive to the extent of interest rate movements.

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

Capital

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

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

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

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

Loans and Loan Review Process

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

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

The provision for loan
losses was $0 in 2001, $4,000 in 2000, and $12,000 in 1999. For the same years,
charge-offs, net of recoveries, were $19,445, $21,333, and $9,296.

-7-

---

The allowance for loan
losses is at $145,173 or 0.50% of total loans at December 31, 2001 compared to
%164,618 or 0.57% of total loans at year-end 2000. The allowance is consistent
with Management's recognition of problem loans along with Management's strategy
to emphasize the quality of the loan portfolio. The allowance is considered
adequate by Management. (See also Note 1 to the Consolidated Financial
Statements)

Effects of Inflation

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

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

BUSINESS

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

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

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

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

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

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

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

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

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

-8-

---

REPORT OF INDEPENDENT AUDITORS

Shareholders and Board of Directors
Huron National Bancorp, Inc.
Rogers City, Michigan

We have audited the
accompanying consolidated balance sheets of Huron National Bancorp, Inc. as of
December 31, 2001 and 2000 and the related consolidated statements of income,
shareholders equity and cash flows for each of the three years in the
period ended December 31, 2001. These financial statements are the
responsibility of the Corporations management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in
accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the
consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Huron National Bancorp, Inc. as of
December 31, 2001 and 2000, and the results of its operations and its cash flows
for each of the three years in the period ended December 31, 2001 in conformity
with accounting principles generally accepted in the United States of America.

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

South Bend, Indiana
February 15, 2002

-9-

---

HURON NATIONAL BANCORP, INC.

CONSOLIDATED BALANCE SHEETSDecember 31, 2001 and 2000

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

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

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


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

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

See accompanying notes-10-

---

HURON NATIONAL BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOMEFor the years ended December 31, 2001, 2000 and 1999

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

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

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

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

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

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

See accompanying notes-11-

---

HURON NATIONAL BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITYFor the years ended December 31, 2001, 2000 and 1999

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

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

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

BALANCE AT DECEMBER 31, 2001                         $ 625,000     $ 625,000      $ 2,603,482         $39,888       $ 3,893,370
                                                  ============= =============  ===============  ==============   ===============`

See accompanying notes-12-

---

HURON NATIONAL BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWSFor the years ended December 31, 2001, 2000 and 1999

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

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

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

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

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


    Non cash investing activities:
    Transfer from securities held to maturity to available for sale                                                    $ 2,294,050`

See accompanying notes-13-

---

HURON NATIONAL BANCORP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES

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

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

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

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

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

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

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

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

Loans are considered
impaired if full principal or interest payments are not anticipated. Impaired
loans are carried at the present value of expected cash flows discounted at the
loan's effective interest rate or at the fair value of the collateral if the
loan is collateral dependent. A portion of the allowance for loan losses may be
allocated to impaired loans.

-14-

---

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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

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

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

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

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

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

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

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

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

NOTE 2 - CASH AND DUE FROM BANKS

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

-15-

---

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:

`2001
              Securities Available for Sale:                Fair Value           Gains             Losses
              ------------------------------                ----------           -----             ------
                    U.S. Agency                            $ 3,737,013          $ 21,583           $     -
                    Mortgage-backed                            269,984             4,735
                    Corporate                                1,404,431            30,837
                    State and Municipal                      2,598,935             3,284
                                                           -----------          --------           -------
                                                           $ 8,010,363          $ 60,439           $     -
                                                           ===========          ========           =======
                                                                                                                    Carrying
              Securities Held to Maturity:                  Fair Value           Gains             Losses            Amount
              ----------------------------                  ----------           -----             ------            ------
                    State and Municipal                      $ 372,643          $ 10,635                           $ 362,008
                                                            ----------          --------           -------         ---------
                                                             $ 372,643          $ 10,635           $     -         $ 362,008
                                                            ==========          ========           =======         =========

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

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

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

The carrying amount and
estimated fair value of securities at December 31, 2001, by contractual
maturity, are shown below. Expected maturities may differ from contractual
maturities because borrowers may have the right to call or prepay obligations
with or without call or prepayment penalties.

`Available for Sale                            Held to Maturity
                                                                                                                   Carrying
                                                             Fair Value                         Fair Value          Amount
                                                             ----------                         ----------          -------
              Due in one year or less                        $ 427,384                            $ 78,822          $ 78,251
              Due after one year through five years          5,808,692                             194,853           188,757
              Due after five years through ten years         1,504,303                              98,968            95,000
                                                           -----------                          ----------        ----------
                   Subtotal                                  7,740,379                             372,643           362,008
              Mortgage-backed                                  269,984
                                                           -----------                          ----------        ----------
                        Totals                             $ 8,010,363                           $ 372,643         $ 362,008
                                                           ===========                          ==========        ==========`

-16-

---

NOTE 3 - SECURITIES (continued)

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

NOTE 4 - LOANS

Loans consist of the following at December 31:

`2001              2000
                                                                             ----              ----
                                Commercial                               $ 4,165,433       $ 3,826,480
                                Real estate                               16,022,222        16,640,600
                                Installment                                9,025,164         8,512,162
                                                                     ----------------  ----------------
                                          Total loans                    $29,212,819       $28,979,242
                                                                     ================  ================`

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.

`2001
                                                                                               ----
                                      Balance - January 1                                    $ 356,897
                                           New loans                                           371,662
                                           Repayments                                         (392,127)
                                                                                       ----------------
                                      Balance - December 31                                  $ 336,432
                                                                                       ================`

NOTE 5 -  ALLOWANCE FOR LOAN LOSSES

An analysis of changes in
the allowance for loan losses follows:

`2001              2000              1999
                                                                             ----              ----              ----
                    Balance at beginning of year                           $ 164,618         $ 181,951         $ 179,247
                    Additions (deductions)
                         Provision for loan losses                                               4,000            12,000
                         Recoveries credited to allowance                      3,954            16,937             4,155
                         Loans charged-off                                   (23,399)          (38,270)          (13,451)
                                                                     ----------------  ----------------  ----------------
                    Balance at end of year                                 $ 145,173         $ 164,618         $ 181,951
                                                                     ================  ================  ================`

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

NOTE 6 - BANK PREMISES AND EQUIPMENT - NET

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

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

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

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

-17-

---

NOTE 7 - DEPOSITS

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

At year-end 2001, stated
maturities of time deposits were:

`2002                $ 16,382,929
                                                     2003                   2,466,474
                                                     2004                     999,342
                                                     2005                   2,652,133
                                                     2006                   1,897,081
                                                                   -------------------
                                                                         $ 24,397,959
                                                                   ===================`

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

NOTE 8 - INCOME TAX

The provision for federal
income tax for the years ended December 31 consists of the following:

`2001                2000             1999
                                                                             ----                ----             ----
                Current expense                                             $ 174,964          $ 219,636       $ 180,187
                Deferred expense                                               14,544              4,813           9,306
                                                                   -------------------  -----------------  --------------
                     Provision for income tax                               $ 189,508          $ 224,449        $189,493
                                                                   ===================  =================  ==============`

Included in other
liabilities are deferred tax balances arising from the following items:

`December 31,
                            Deferred tax assets:                                              2001             2000
                                                                                              ----             ----
                               Allowance for loan losses                                        $ 27,461        $ 34,073
                               Unrealized loss on securities available for sale                        0           3,070
                               Other                                                               2,458             476
                                                                                        -----------------  --------------
                                                                                                  29,919          37,619

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

                                      Net deferred tax liability                              $ (165,846)      $(127,684)
                                                                                        =================  ==============`

-18-

---

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:

`2001            2000            1999
                                                                                        ----            ----            ----
                          Statutory rate applied to income before taxes               $ 210,239       $ 236,137       $ 207,064

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

                                    Provision for income tax                          $ 189,508       $ 224,449       $ 189,493
                                                                                  ==============  ==============  ==============`

NOTE 9 - OTHER OPERATING EXPENSE

Other operating expenses
for the years ended December 31 consist of the following:

`2001            2000            1999
                                                                                        ----            ----            ----
                          Office supplies                                              $ 25,793        $ 22,015        $ 27,793
                          Directors fees                                                 46,400          43,200          57,200
                          General insurance                                              27,464          23,805          19,065
                          ATM fees                                                       23,643          24,257          25,406
                          Other expense                                                 126,846         133,297         110,625
                                                                                  --------------  --------------  --------------
                                    Total other operating expenses                     $250,146       $ 246,574       $ 240,089
                                                                                  ==============  ==============  ==============`

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:

`2001            2000
                                                                                         ----            ----
                                      Outstanding letters of credit                   $ 167,000       $ 167,000
                                      Commitments to make loans
                                         and unused lines of credit                     845,000       1,143,119`

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

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

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

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

-19-

---

NOTE 11 - DIVIDENDS

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

NOTE 12 - PENSION PLAN

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

NOTE 13 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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

Fair value of other
financial instruments is estimated as follows:

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

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

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

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

The carrying amounts and
fair values of the Company's financial instruments (in thousands) are as follows
as of year-end.

`2001                        2000
                                                     Carrying       Fair         Carrying        Fair
                                                      Amount       Value          Amount         Value
                                                      ------       -----          ------         -----
              Financial assets
                   Cash and cash equivalents          $ 5,911      $ 5,911        $ 5,846        $ 5,846
                   Securities                           8,372        8,383          3,719          3,730
                   Loans, net                          29,068       28,959         28,815         28,688
                   Federal Reserve stock                   38           38             38             38
                   Accrued interest receivable            372          372            296            296

              Financial liabilities
                   Deposits                          $(40,105)    $(41,287)      $(35,375)     $ (34,764)
                   Accrued interest payable               (83)         (83)           (76)           (76)`

-20-

---

NOTE 14 - REGULATORY MATTERS

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

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

At year end, the Bank's
actual capital levels (dollars in millions) and minimum required levels were:

`Minimum Required To
                                                                 Minimum Required      Be Well Capitalized
                                                                     For Capital     Under Prompt Corrective
                                                   Actual         Adequacy Purposes     Action Regulations
                                                   ------         -----------------     ------------------
2001                                         Amount     Ratio     Amount      Ratio     Amount      Ratio
----                                         ------     -----     ------      -----     -------     -----
Total capital (to risk weighted assets)      $ 4.0      13.9%     $  2.3      8.0%      $   2.9     10.0%
Tier 1 capital (to risk weighted assets)       3.9      13.4%        1.1      4.0%          1.7      6.0%
Tier 1 capital (to average assets)             3.9       8.8%        1.7      4.0%          2.2      5.0%

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

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

CONDENSED FINANCIAL INFORMATION

Presented below are
condensed financial statements for the parent company:

`CONDENSED BALANCE SHEETS
                                                                                                              December 31,
          ASSETS                                                                                         2001             2000
                                                                                                         ----             ----
               Cash and cash equivalents                                                            $     4,035      $     1,373
               Investment in Huron National Bank                                                      3,889,335        3,557,932
                                                                                                    -----------      -----------
                    Total assets                                                                    $ 3,893,370      $ 3,559,305
                                                                                                    ===========      ===========
          LIABILITIES                                                                               $         -      $         -

          SHAREHOLDERS' EQUITY                                                                      $ 3,893,370      $ 3,559,305
                                                                                                    -----------      -----------
                    Total liabilities and shareholders' equity                                      $ 3,893,370      $ 3,559,305
                                                                                                    ===========      ===========`

-21-

---

NOTE 15 - HURON NATIONAL BANCORP, INC. (PARENT COMPANY ONLY)

CONDENSED FINANCIAL INFORMATION (continued)

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

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

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

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

         Net Income                                                      $ 428,843     $ 470,073      $ 419,519
                                                                      =============  ============  =============`

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

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

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

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

              End of the period                                            $ 4,035       $ 1,373        $ 2,613
                                                                      =============  ============  =============`

NOTE 16 - QUARTERLY FINANCIAL DATA (UNAUDITED)

`Interest     Net Interest    Net           Earnings
               2001                             Income        Income       Income        Per Share
               ----                             ------        ------       ------        ---------
                    First quarter             $ 760,846     $ 395,053     $127,444        $ 2.04
                    Second quarter              762,475       381,246      109,548          1.75
                    Third quarter               762,965       374,758      104,782          1.68
                    Fourth quarter              740,474       356,924       87,069          1.39

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

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

-22-