FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                              ---------------------


              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1996

                                       OR
              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to ________

                          Commission file number 0-7638

                         FIRST MICHIGAN BANK CORPORATION
             (Exact name of registrant as specified in its charter)

                               MICHIGAN 38-2024376
                (State or other jurisdiction of (I.R.S. Employer
               incorporation or organization) Identification No.)

                  One Financial Plaza, Holland, Michigan 49423
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (616) 355-9200




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

             The number of shares  outstanding of each of the issuers classes of
     common stock, as of the latest  practicable date:  26,300,795 shares of the
     Company's  Common Stock ($1 par value) were  outstanding  as of October 31,
     1996.

<PAGE>
                                      INDEX
                                                                        Page
                                                                        Number

Part I.               Financial Information (unaudited):

              Item 1.
              Financial Statements                                           3
              Notes to Consolidated Financial Statements                     6

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

Part II.              Other Information                                     13

              Item 6.
              Exhibits and Reports on Form 8-K                              13

Signatures                                                                  14

<PAGE>
<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

CONSOLIDATED BALANCE SHEETS
                                      September 30,  December 31,  September 30,
                                          1996           1995          1995
                                        ------          ------        -----
                                                  (dollars in thousands)
<S>                                       <C>          <C>          <C>  
Assets
  Cash and due from banks ............... $   153,529  $   128,168  $ 113,241
  Federal funds sold ....................      15,800      117,100     52,500
                                            ---------    ---------   --------
     Total cash and cash equivalents ....     169,329      245,268    165,741
  Interest bearing deposits with banks ..       1,349        5,361      6,914
  Securities:
    Available-for-sale ..................     440,427      323,503    201,899
    Held-to-maturity (market values
     $309,818, $362,787 and $505,327,
     respectively) ......................     301,079      355,412    501,209
  Loans .................................   2,421,875    2,216,947  2,159,353
  Allowance for loan losses .............     (30,967)     (28,163    (27,217)
  Premises and equipment ................      68,875       68,551     67,809
  Other assets ..........................      60,496       53,728     52,316
                                            ---------    ---------  ---------
     Total assets ....................... $ 3,432,463  $ 3,240,607 $3,128,024
                                            =========    =========  =========

Liabilities and Shareholders' Equity
Deposits:
  Non-interest bearing .................. $   352,031  $   337,238  $ 317,129
  Interest bearing:
    Savings and NOW accounts ............     989,444      893,732    907,279
    Time ................................   1,636,104    1,582,590  1,495,840
                                            ---------    ---------  ---------
     Total deposits .....................   2,977,579    2,813,560  2,720,248
Short-term borrowings ...................     122,470      134,323    125,239
Other liabilities .......................      37,095       33,218     30,050
Long-term debt ..........................      29,714        5,678      7,125
                                            ---------    ---------  ---------
     Total liabilities ..................   3,166,858    2,986,779  2,882,662
                                            ---------    ---------  ---------

Shareholders' equity:
  Preferred stock - no par value;
   1,000,000 shares authorized ..........        --           --         --
  Common stock - $1 par value;
   50,000,000 shares authorized;
   issued and outstanding:
   26,277,243, 18,848,338 and
   18,798,826, respectively .............      26,277       18,848     18,799
  Surplus ...............................     163,302      146,930    146,007
  Retained earnings .....................      76,703       86,232     79,816
  Securities valuation, net of tax ......        (677)       1,818        740
                                            ---------    ---------  ---------
     Total shareholders' equity .........     265,605      253,828    245,362
                                            ---------    ---------  ---------
     Total liabilities and
       shareholders' equity ..             $3,432,463  $ 3,240,607 $3,128,024
                                            =========    =========  =========

See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF INCOME
                                     Three months ended     Nine months ended
                                       September 30,         September 30,
                                      1996      1995       1996        1995
                                      ----      ----       ----        ----
                                     (in thousands, except for per share data)
<S>                                   <C>       <C>        <C>         <C>   
Interest Income

  Interest and fees on loans ......   $56,533   $51,794    $163,429    $149,027
  Interest on securities:
    Taxable .......................     8,203     7,255      23,697      22,128
    Tax-exempt ....................     3,219     3,425       9,716      10,467
  Other interest income ...........       182       928       1,743       1,675
                                     --------  --------     -------    --------
     Total interest income ........    68,137    63,402     198,585     183,297
                                     --------  --------     -------    --------

Interest Expense
  Interest on deposits ............    30,548    29,171      89,587      83,150
  Interest on short-term borrowings     1,718     1,346       4,893       4,398
  Interest on long-term debt ......       243       170         498         533
                                     --------  --------    --------    --------
     Total interest expense .......    32,509    30,687      94,978      88,081
                                     --------  --------    --------    --------

Net Interest Income ...............    35,628    32,715     103,607      95,216
  Provision for loan losses .......     2,728     2,064       7,417       5,833
                                     --------  --------    --------    --------
     Net interest income after
      provision for loan losses        32,900    30,651      96,190      89,383
                                     --------  --------    --------    --------

Non-Interest Income
  Service charges on deposits .....     3,674     3,225      10,490       9,480
  Trust income ....................     1,949     1,825       5,965       5,288
  Other operating income ..........     3,732     2,899      10,340       7,744
  Securities gains (losses) .......         0        18         (84)         36
                                     --------  --------    --------    --------
     Total non-interest income ....     9,355     7,967      26,711      22,548
                                     --------  --------    --------    --------

Non-Interest Expense
  Salaries and employee benefits ..    15,013    14,323      44,195      41,014
  Occupancy .......................     1,750     1,662       5,363       4,943
  Equipment .......................     1,751     1,547       5,152       4,450
  FDIC insurance ..................         7      (145)         21       2,642
  Other operating .................     8,466     7,997      25,700      22,462
                                     --------  --------    --------    --------
     Total non-interest expense ...    26,987    25,384      80,431      75,511
                                     --------  --------    --------    --------

Income Before Income Taxes ........    15,268    13,234      42,470      36,420
  Income taxes ....................     4,287     3,523      11,709       9,353
                                     --------  --------    --------    --------

Net Income ........................   $10,981    $9,711         $30      27,067
                                     ========  ========    ========    ========

Net income per share ..............     $.41       $.37       $1.15       $1.02
Cash dividends declared
   per share ......................      .16        .14         .47         .40

Average shares outstanding
   (in thousands) .................    26,749    26,669      26,773      26,619

See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

                                                Nine months ended September 30,
                                                       1996       1995
                                                       -----      -----
<S>                                                    <C>        <C>   
Cash Flows From Operating Activities
  Net income ......................................... $  30,761  $  27,067

  Adjustments to reconcile
   net income to net cash provided
   by operating activities:

      Provision for loan losses ......................     7,417      5,833
      Origination of loans for sale
         in secondary market .........................  (167,382)  (105,643)
      Proceeds from sale of loans ....................   168,404    106,399
      Gain on sale of loans ..........................    (1,022)      (756)
      Realized securities (gains) losses .............        84        (36)
      Provision for depreciation,
         amortization and accretion ..................     3,554      5,258
      Deferred income taxes ..........................      (724)       (52)
      Increase in interest receivable ................    (1,557)    (1,906)
      Increase (decrease) in interest
         payable .....................................      (707)     2,919
      Other - net ....................................     2,499      3,321
                                                       ---------  ---------
      Total adjustments ..............................    10,566     15,337
                                                       ---------  ---------
        Net cash provided by
           operating activities ......................    41,327     42,404
                                                       ---------  ---------

Cash Flows From Investing Activities
Net (increase) decrease in interest
    bearing deposits with banks ......................     4,012     (2,948)
Purchase of securities available-for-sale ............  (216,898)   (81,716)
Proceeds from sales of securities
    available-for-sale ...............................    27,906      4,098
Proceeds from maturities and prepayments
    of securities available-for-sale
                                                          75,733     17,623
Purchase of securities held-to-maturity ..............   (11,530)    (4,731)
Proceeds from maturities and prepayments
    of securities held-to-maturity ...................    60,420     95,945
Net increase in loans ................................  (208,789)  (203,126)
Purchase of premises and equipment and
    other assets .....................................    (8,207)    (8,345)
                                                       ---------  ---------
        Net cash used in investing activities ........  (277,353)  (183,200)
                                                       ---------  ---------

Cash Flows From Financing Activities
Net increase in non-interest bearing
  demand, savings and NOW deposit accounts
                                                         110,505     12,727
Net increase in time deposits ........................    53,514    219,688
Net increase (decrease) in short-term
   borrowings ........................................    13,147    (47,540)
Repayment of long-term debt ..........................      (964)      (937)
Cash dividends and fractional shares .................   (11,868)    (9,931)
Proceeds from sales of stock .........................     4,258      3,176
Common stock repurchased .............................    (8,505)    (1,780)
                                                       ---------  ---------
        Net cash provided by financing
          activities .................................   160,087    175,403
                                                       ---------  ---------
Increase (decrease) in Cash and
    Cash Equivalents .................................   (75,939)    34,607
Cash and Cash Equivalents, beginning
    of period ........................................   245,268    131,134
                                                       ---------  ---------
Cash and Cash Equivalents, end of period ............. $ 169,329  $ 165,741
                                                       =========  =========

See accompanying notes to financial statements.
</TABLE>
<PAGE>

Notes  to  Consolidated   Financial   Statements 
The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions to Form 10-Q and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

1.   In the opinion of  management of the Company,  the  unaudited  consolidated
     financial statements  contained herein include all adjustments  (consisting
     of  only  normal  recurring  accruals)  necessary  to  present  fairly  the
     consolidated  financial  position of the Company as of September  30, 1996,
     September  30,  1995 and  December  31,  1995 and  consolidated  results of
     operations  for the three months and nine months ended  September  30, 1996
     and 1995.

2.   On April 15,  1996,  the Company  acquired  Arcadia  Financial  Corporation
     (Arcadia),  a one-bank  holding  company  located in  Kalamazoo,  Michigan,
     through the  issuance of 653,749  shares of common  stock  (915,246  shares
     adjusted for the May, 1996 stock dividend and the July, 1996 four-for-three
     stock   split).   The   acquisition   has   been   accounted   for   as   a
     pooling-of-interests.  Accordingly, the accompanying consolidated financial
     statements  have been  restated  to include  the  balances  and  results of
     operations of Arcadia prior to acquisition.

3    Effective  January 1, 1996, the Company  adopted the accounting  provisions
     for  the   capitalization  of  mortgage  servicing  rights  promulgated  by
     Statement  of  Financial  Accounting  Standards  No. 122,  "Accounting  for
     Mortgage  Servicing Rights" ("SFAS No. 122"). Prior to the adoption of SFAS
     No.  122,  only  purchased  mortgaging  servicing  rights  were  subject to
     capitalization, and the Company had no such activity.

4.   On June 14,  1996,  the  Board  of  Directors  of the  Company  approved  a
     four-for-three split on common shares outstanding, payable July 26, 1996 to
     shareholders  of record July 1, 1996.  Accordingly,  average share data and
     earnings per share have been retroactively adjusted for the stock split.

5.   In  mid-September,  the Company  signed a definitive  agreement to purchase
     from another bank three branches that will expand certain  markets  already
     served by the  Company's  subsidiary  banks.  Only the fixed assets and the
     deposit  liabilities  approximating  $35  million  will  be  acquired.  The
     purchase is expected to be consummated in the fourth quarter 1996.

6.   The  results  of  operations  for the three  months and nine  months  ended
     September  30,  1996 are not  necessarily  indicative  of the results to be
     expected for the full year.

7.   The accompanying unaudited consolidated financial statements should be read
     in  conjunction  with  the  Notes  to  Consolidated   Financial  Statements
     contained  in the  Registrant's  Form 10-K for the year ended  December 31,
     1995.

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

The  following is a discussion of the  Company's  results of operations  for the
three months ended  September 30, 1996 and 1995,  and also provides  information
relating to the  Company's  financial  condition,  focusing on its liquidity and
capital resources.

Net  income of  $10,981,000  for the  three  months  ended  September  30,  1996
increased  13.1%  from the  $9,711,000  earned  during  the three  months  ended
September  30,  1995.  Earnings  per share for the third  quarter 1996 were $.41
versus $.37 for the same period in 1995. The net income  increase  resulted from
<PAGE>
improvements  in  net  interest  income  and  in  virtually  all  categories  of
non-interest income.  Partially offsetting the revenue increases was an addition
to the loan loss provision and increases in non-interest expense.  These changes
are addressed in the analyses that follow.
<TABLE>

Net Interest Income                  Third Quarter              Year-to-Date
(in thousands)                     1996        1995          1996         1995
                                  -------     -------      --------     --------
<S>                              <C>          <C>          <C>          <C>     
Interest income ............     $ 68,137     $ 63,402     $198,585     $183,297
Interest expense ...........       32,509       30,687       94,978       88,081
                                 --------     --------     --------     --------
Net interest income ........     $ 35,628     $ 32,715     $103,607     $ 95,216
                                 ========     ========     ========     ========

</TABLE>

The Company's third quarter 1996 net interest income of $35,628,000 increased by
$2,913,000  (8.9%) when  compared  with the same period of 1995. As shown in the
following  table,  in the third  quarter  of 1996 the rate on  interest  earning
assets at 8.91% reflected a decline of 8 basis points from the year-ago  period,
while the rate for interest  bearing  liabilities  decreased 7 basis points from
4.85 to 4.78.  These  changes  resulted  in a decrease  of 1 basis  point in the
interest  spread for the  comparative  third  quarters.  The net interest margin
remained  unchanged at 4.77% for the third quarter 1996 and 1995.  Year-to-date,
the  Company's  net  interest  spread  declined  4 basis  points,  while its net
interest margin also decreased 4 basis points from 4.77% to 4.73%. The following
table shows a comparison of average volumes,  effective yields earned, and rates
paid during the comparable periods.

<PAGE>
<TABLE>
<CAPTION>


                                     TABLE 1
                  INTEREST EARNING ASSETS AND INTEREST BEARING
                         LIABILITIES BY MAJOR CATEGORIES
                           September 30, 1996 and 1995


                                            ---------------------------Third Quarter Averages--------------------

                                                  Volumes In Thousands                    Yield Earned/
                                                       of Dollars                           Rate Paid

                                                        1996               1995              1996                 1995
                                                        ----               ----              ----                 ----
<S>                                               <C>                <C>                     <C>                 <C>   
Interest Earning Assets
  Loans                                           $2,377,852         $2,128,136             9.51%                9.71%
  Securities:
     Taxable                                         525,735            479,953              6.19                 5.99
     Tax-exempt                                      206,419            213,629              9.27                 9.51
  Short-term investments                              14,115             65,551              5.13                 5.62
                                                 -----------        -----------
      Total interest earning assets                3,124,121          2,887,269              8.91                 8.99
                                                   ---------          ---------
Interest Bearing Liabilities
  Savings deposits                                   959,638            891,801              2.99                 3.03
  Time deposits                                    1,589,003          1,482,848              5.84                 5.98
  Short-term borrowings                              145,912            127,302              4.70                 4.20
  Long-term debt                                      12,866              7,144              7.53                 9.55
                                                 -----------        -----------
      Total interest bearing liabilities           2,707,419          2,509,095              4.78                 4.85
                                                   ---------          ---------
Interest spread                                  $   416,702        $   378,174             4.13%                4.14%
                                                  ==========         ==========             ====                 ====
Net interest income margin                                                                  4.77%                4.77%
                                                                                            ====                 ====
</TABLE>
<TABLE>


                                           ---------------------------Year-to-date Averages----------------------

                                                  Volumes In Thousands                     Yield Earned/
                                                       of Dollars                            Rate Paid

                                                        1996               1995              1996                 1995
                                                        ----               ----              ----                 ----
<S>                                               <C>                <C>                     <C>                 <C>    
Interest Earning Assets
  Loans                                           $2,304,020         $2,067,372             9.50%                9.67%
  Securities:
     Taxable                                         514,137            491,599              6.11                 5.97
     Tax-exempt                                      206,365            220,051              9.34                 9.42
  Short-term investments                              42,783             38,872              5.44                 5.76
                                                 -----------        -----------
      Total interest earning assets                3,067,305          2,817,894              8.87                 8.95
                                                   ---------          ---------
Interest Bearing Liabilities
  Savings deposits                                   931,443            886,458              2.89                 3.19
  Time deposits                                    1,576,649          1,429,487              5.88                 5.80
  Short-term borrowings                              147,577            132,613              4.43                 4.43
  Long-term debt                                       7,782              7,426              8.53                 9.57
                                                 -----------        -----------
      Total interest bearing liabilities           2,663,451          2,455,984              4.76                 4.79
                                                   ---------          ---------
Interest spread                                  $   403,854        $   361,910             4.11%                4.16%
                                                  ==========         ==========             ====                 ====
Net interest income margin                                                                  4.73%                4.77%
                                                                                            ====                 ====
</TABLE>

Average yields in the above table have been adjusted to a tax-equivalent  basis,
and are computed using amortized cost for the securities portfolio. Non-accruing
loans are not  significant  for the periods  presented  and are  included in the
average loan volumes above.
<PAGE>

Interest Earning Assets/ Interest Income
Interest income for the third quarter of 1996 increased  $4,735,000  (7.5%) from
the third  quarter of 1995.  This is due to an 8.2%  increase  in average  total
volume of earning  assets during the third  quarter 1996 versus 1995 offset,  in
part, by the 8 basis point  decline in the average yield on earning  assets from
the year-ago quarter as indicated in the previous table. The average loan volume
for the third  quarter 1996  increased by  $249,716,000  over the average of the
year ago period.  Short term investment  volumes declined by over $51 million as
funds were allocated to the loan portfolios and to the  $38,572,000  increase in
average  securities  volumes.  Average  quarterly volumes in the loan portfolios
increased  11.7% from those of the third quarter 1995.  Growth was well balanced
with mortgage,  commercial and installment loans all showing double digit volume
increases versus the prior year period averages.

With the above referenced increasing loan demand there has been a smaller growth
(5.6%) in the average volume of investment securities.  Increases in the overall
taxable portfolio yield between the periods reflects the gradually rising market
of investment security yields in the last year.

Interest Bearing Liabilities/Interest Expense
The average volume of interest  bearing  liabilities  increased by  $198,324,000
when  compared to the third  quarter  1995.  The majority of this 7.9%  increase
occurred in the time deposit  category as reflected in the previous table.  This
is due in large part to growth in large certificates of deposit. However, strong
growth was also seen in other time deposit categories having maturities of up to
24 months. The rate paid on time deposits declined by 14 basis points from third
quarter 1995  levels.  Savings  deposit  average  volumes  increased by over $67
million. Virtually all of this was in regular savings accounts. The average rate
paid on short-term  borrowings  increased by 50 basis points  primarily due to a
change in the mix of  borrowings  in this  category.  Quarterly  volumes  in the
Company's Cash  Investment  Checking  product between the third quarter 1996 and
1995 declined and were replaced by  relatively  higher  costing funds in federal
funds purchased and other borrowed funds. The average rate and volume changes on
long term debt reflect the mid-quarter  conversion of a $25,000,000 standby loan
agreement to a term loan due in the year 2002.  The  interest  rate on this term
loan is seven-tenths of a percent over the daily federal funds rate. The overall
rate on quarterly average interest bearing liabilities  decreased 7 basis points
to 4.78% in this quarter from the third quarter 1995 average rate of 4.85%.

Asset/Liability Management
The Company maintains an  asset/liability  management process whereby strategies
are developed and  implemented  to maintain the proper level of liquidity  while
maximizing net interest  income and minimizing the impact on earnings from major
interest rate changes.  Particular attention is placed on the Company's interest
sensitivity,  which is the degree net interest income is affected by a change in
market interest rates. Monitoring the balance of assets and liabilities that are
rate  sensitive  within  90 days and one  year is a  continuing  aspect  of this
process. When a cumulative rate sensitive ratio of 1.00 is maintained,  both the
interest  income and the  interest  expense  increase  or decline in tandem with
changes in market  interest  rates,  with the net interest income of the Company
not changing significantly as a direct result.

Liquidity  is  monitored  in  order  to meet the  needs  of  customers,  such as
depositors  withdrawing funds or borrowers requesting funds to meet their credit
needs. The Company's current internal and external sources of funds are adequate
to meet its liquidity needs.

Deposit gathering is a principal source of funds for the Company. Development of
consumer deposits is achieved by paying  competitive rates and by maintaining an
active  marketing  program.  Larger  certificates  of deposit,  issued to public
authorities  and the private sector,  also provide an important  source of funds
for the Company.  These  certificates  of deposit are purchased  primarily  from
within the Company's market areas and are considered a reliable source of funds.

<PAGE>

The Company also purchases  brokered  certificates of deposit (CDs) from time to
time for varying periods of up to three years. Such purchases,  when they occur,
are made within  established  Company  guidelines.  Current  balances  represent
approximately  8% of large CDs and less than 2% of total  deposits.  The Company
made no brokered CD purchases during the current quarter.

Another principal source of funds derives from routine payments on loans and the
maturities  of loans and  securities.  The  Company's  securities  portfolio  is
invested almost exclusively in investment grade issues. The Company  transferred
securities  with an amortized cost of  $110,674,000  from the held-  to-maturity
(HTM)  category to  available-for-sale  (AFS) on December 27, 1995 as allowed by
the  transition  provisions  in the  guide to  implementation  of  Statement  of
Accounting  Standards No. 115 issued in November  1995. The balance sheet change
between these two securities  classifications is due primarily to this transfer,
as well as  purchases  (primarily  in the AFS  category)  from the  proceeds  of
maturities  of both HTM and AFS and  sales  of AFS  since  the end of the  third
quarter of 1995.

Externally,  the Company has the ability to enter the federal  funds market as a
purchaser  to meet daily  liquidity  needs.  In  addition,  the  Company has the
ability to enter into funding arrangements with other financial institutions.
<TABLE>
Allowance for Loan Losses                                    Third Quarter                  Year-to-Date
(in thousands)                                          1996            1995             1996           1995
                                                      ------           ------          -------        -------
<S>                                                   <C>             <C>             <C>             <C>  
Balance, at beginning of period                       $30,363         $26,390         $28,163         $24,839
Provision for loan losses                               2,728           2,064           7,417           5,833
Loans charged-off                                      (2,712)         (1,803)         (6,467)         (5,041)
Recoveries of loans previously charged-off                588             566           1,854           1,586
                                                     --------          -------         ------          ------
Balance, at end of period                            $ 30,967         $27,217         $30,967         $27,217
                                                      =======          ======          ======          ======
</TABLE>
The provision for loan losses  increased  $664,000 for the third quarter  versus
the 1995 period.  The provision  for the third  quarter 1996 is consistent  with
management's  evaluation of the loan  portfolio and its recent growth and higher
levels of loans  charged-off  during the quarter,  particularly  in the consumer
loan  category.  The reserve for loan losses as a percent of loans at  September
30, 1996 was 1.28%, up 1 basis point from 1.27% at December 31, 1995.

In assessing the adequacy of the loan loss allowance,  management considers many
factors,  including  changes in the type and volume of the loan portfolio,  past
loan loss  experience,  existing and anticipated  economic  conditions and other
factors that might be pertinent.  The amount actually provided in any period may
be more or less than actual net loan charge-offs for that period.

Net charge-offs in the third quarter 1996 increased by $887,000  compared to the
third quarter 1995. Net  charge-offs  as a percent of average loans  outstanding
during  the  quarter  were .36% for the third  quarter of 1996 and .23% in 1995.
This ratio is within the range of management's  expectations and is considered a
reflection  of  prudent  lending  practices.  Non-accrual,  past  due 90 day and
renegotiated  loans in total were .66% and .48% of total  loans  outstanding  at
September  30, 1996 and September 30, 1995  respectively.  The Company  compares
favorably with the banking industry  nationwide in these credit ratios. Both the
net charge-off and nonperforming ratios are at recent highs,  however,  they are
below the Company's targeted thresholds.

Following are the balances  constituting the  nonperforming  assets and loans 90
days past due and still accruing as of the end of the respective periods.

<PAGE>
<TABLE>
                                                              September 30,
                                                          1996          1995
                                                             (in thousands)

<S>                                                      <C>           <C>   
Non-accrual loans                                        $7,546        $5,530
Renegotiated loans                                          551         1,236
Other real estate owned                                     711         1,798
                                                         ------         -----
   Total nonperforming assets                            $8,808        $8,564
                                                          =====         =====

Loans 90 days past due                                   $7,919        $3,569
                                                          =====         =====
</TABLE>
<TABLE>

Non-interest Income                                         Third Quarter                      Year-to-Date
(in thousands)                                           1996           1995              1996            1995
                                                       --------       --------           -------          ------
<S>                                                     <C>           <C>               <C>              <C>  
  Total                                                 $ 9,355       $ 7,967           $26,711          $22,548
                                                         ======        ======            ======           ======
</TABLE>
Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  trust  and  investment   management  fees,  other  operating  income  and
securities  transactions,  increased  $1,388,000 (17.4%) during the three months
ended  September  30,  1996  compared  to the same  period in 1995.  The largest
increase  amounting to  approximately  $449,000  was seen in service  charges on
deposits which was due, primarily,  to changes in product pricing.  Non-interest
income was also favorably  impacted both by mortgage banking,  which consists of
mortgage  loan  origination,  sales and  servicing,  and by trust and  financial
services revenue  improvements.  Mortgage banking revenues increased by $329,000
while trust and investment management fees increased by $124,000 (6.8%) over the
year ago period. This is due both to asset growth in managed mutual funds and to
trust account asset  increases.  There were no  securities  transactions  in the
third quarter 1996 compared to a gain of $18,000 in the year ago quarter.
<TABLE>
Non-interest Expense                                        Third Quarter           Year-to-Date
(in thousands)                                        1996          1995          1996            1995
                                                    --------      --------       ------          ------
<S>                                                 <C>           <C>           <C>             <C>    
  Total                                             $26,987       $25,384       $80,431         $75,511
                                                     ======        ======        ======          ======
</TABLE>

Non-interest  expense  increased  $1,603,000  (6.3%)  when  comparing  the third
quarter of 1996 with 1995.  Salary and  benefits  increased  by 4.9% between the
third  quarter 1996 and 1995.  This  approximates  the level of annual merit and
promotional increases during the year on a corporate-wide basis. Other operating
expense increases occurred in communications  expenses,  computer processing and
software support,  which are related to the improved delivery of retail products
and services.  Federal Deposit Insurance  Corporation  (FDIC) insurance premiums
were virtually  eliminated beginning in the third quarter of 1995 as a result of
the Bank Insurance Fund (BIF) achieving the statutory level for the reduction of
premiums.  Management  expects FDIC  insurance  premiums to be nominal in future
periods presuming the continued  maintenance of the BIF at its current ratio and
the Company maintaining the appropriate risk-based capital levels.
<TABLE>

Income Tax Expense                                         Third Quarter                      Year-to-Date
(in thousands)                                        1996          1995                   1996           1995
                                                    -------       -------               --------          ------
<S>                                                  <C>          <C>                   <C>               <C>
  Total                                              $4,287       $3,523                $11,709           $9,353
                                                      =====        =====                 ======            =====
</TABLE>

Fluctuations  in income  taxes  result  primarily  from  changes in the level of
profitability and variations in the amount of tax-exempt income. The increase in
pre-tax income and decline in tax-exempt income account for the increased income
tax expense  between the periods.  The level of  tax-exempt  income in the third
quarter 1996 declined by approximately $163,000 from 1995.

<PAGE>

Capital
Following is a statement of changes in  shareholders'  equity,  restated for the
acquisition  of  Arcadia  on a pooling of  interests  basis,  for the nine month
period ended September 30, 1996 (in thousands):
<TABLE>
<S>                                                                                           <C>   
  Shareholders' Equity at December 31, 1995                                                   $253,828
  Net income                                                                                    30,761
  Shares issued upon exercise of employee stock option plans                                       890
  Shares issued under dividend reinvestment and employee and director
     stock purchase plans                                                                        3,368
  Dividends to shareholders                                                                    (12,242)
  Change in securities valuation, net of tax                                                    (2,495)
  Common stock repurchased                                                                      (8,505)
                                                                                               --------
  Shareholders' Equity at September 30, 1996                                                  $265,605
                                                                                               =======
</TABLE>

Shareholder's equity is the Company's principal capital base and it is important
that it  increase  along with the growth in total  assets in order for  adequate
capital  ratios  to be  maintained.  The  ratio of  equity  to total  assets  at
September 30, 1996 was 7.7% and 7.8% at December 31, 1995.

The Federal  Reserve Board provides  guidelines  for the  measurement of capital
adequacy of bank holding  companies.  The Company's  capital,  as adjusted under
these  guidelines,  is referred to as risk-based  capital.  The Company's Tier 1
risk-based  capital  ratio at  September  30,  1996  was  10.2%,  and the  total
risk-based  capital ratio was 11.6%.  Minimum  regulatory  Tier 1 risk-based and
total  risk-based  capital ratios under the Federal Reserve Board guidelines are
4% and 8% respectively.

These same  capital  ratios  are  applied  at the  subsidiary  bank level by the
Federal Deposit  Insurance  Corporation under which a  well-capitalized  bank is
defined  as one  with at  least a 10%  risk-based  capital  level.  All  Company
subsidiary  banks met this  definition  at  September  30, 1996 and December 31,
1995.

The capital guidelines also provide for a standard to measure risk-based capital
to total  assets.  This is  referred to as the  leverage  ratio.  The  Company's
leverage  ratio at September 30, 1996 was 7.8%.  The minimum  standard  leverage
ratio  is  3%,  and  virtually  all  financial  institutions  subject  to  these
requirements  are  expected  to maintain a leverage  ratio of 1 to 2  percentage
points above the 3% minimum.

In  addition  to  shareholders'  equity,  the  Company  had  long-term  debt  of
$29,714,000  at September  30, 1996 and  $5,678,000  at December  31, 1995.  The
increase in long-term debt during the third quarter 1996 was attributable to the
conversion to a term loan of $25,000,000 previously advanced on a stand-by loan.
Of this,  $15,000,000  had been advanced since December 31, 1995. The conversion
was  effective  on August 15, 1996 as  discussed  in Note 7 to the  consolidated
financial  statements contained in the Registrant's Form 10-K for the year ended
December 31, 1995.

<PAGE>

                           PART II - OTHER INFORMATION





Item 6.  Exhibits and Reports on Form 8-K


(a)  Exhibits.
       See exhibit index on page 16.

(b)  Reports on Form 8-K
       There were no reports on Form 8-K filed during the third quarter 1996.






<PAGE>






                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly caused this  Quarterly  Report on Form 10-Q for the quarter
ended September 30, 1996 to be signed on its behalf by the undersigned  hereunto
duly authorized.



                                        FIRST MICHIGAN BANK CORPORATION


                                        /s/ Larry D. Fredricks
                                        Larry D. Fredricks
                                        (Executive Vice President and Chief 
                                         Financial Officer)


                                        /s/ William F. Anderson
                                        William F. Anderson
                                        (Vice President and Controller)




DATE:   November 12, 1996


<PAGE>

                                  EXHIBIT INDEX



The following exhibits are filed herewith.



  Exhibits                                                                 Page


   (11)       Computation of Earnings Per Share                              16




<PAGE>
<TABLE>
<CAPTION>
                                                            Part I, Exhibit (11)

                        COMPUTATION OF EARNINGS PER SHARE
                         FIRST MICHIGAN BANK CORPORATION
                                                                       Three Months               Nine months
                                                                     ended September 30,      ended September 30,
                                                                      1996        1995         1996          1995
                                                                        (in thousands, except per share amounts)
<S>                                                                  <C>         <C>          <C>           <C>    
Average shares outstanding                                           26,299.6    26,311.4     26,348.5      26,289.1

Net effect of the assumed exercise of stock options 
  (based on the treasury stock method using higher
   of either ending or average)                                         449.6       357.3        424.1         329.8
                                                                   ----------  ----------    ---------     ---------

     Total shares                                                    26,749.2    26,668.7     26,772.6      26,618.9
                                                                     ========    ========     ========      ========

  Net income                                                         $ 10,981   $  9,711      $ 30,761     $  27,067
                                                                     ========   ========      ========     =========

  Per share amount                                                     $  .41       $  .37      $ 1.15        $ 1.02
                                                                       ======       ======      ======        ======


</TABLE>
<PAGE>