# UNITED STATES SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549

# Form 10-Q/A Amendment No. 2

|[X]  QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the
quarterly period ended September 30, 2007  
|------------------------------------------------------------------------------------------------------------------------------------------------
|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
0-25752

FNBH BANCORP, INC.(Exact name of
registrant as specified in its charter)

|MICHIGAN(State or other jurisdiction of incorporation or organization) | 38-2869722(I.R.S. Employer Identification No.)
|---------------------------------------------------------------------- | ----------------------------------------------

101 East Grand River,
Howell, Michigan 48843 (Address of principal
executive offices) (Zip Code)

Registrants
telephone number, including area code: (517) 546-3150

|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 [__]                                                                                                                                                                                                                                                                                                                                   

|Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.
See definition or accelerated filer and large accelerated filer Rule 12b-2 of
the Exchange Act. (Check one):
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Large accelerated filer [__]      
Accelerated filer [ X ]       Non-accelerated filer [__]                                                                                                                                                 

|Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Act).
|-------------------------------------------------------------------------------------------------------
|Yes [__]     No [ X ]                                                                                  

The number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date:
3,045,723 shares of the Corporations Common Stock (no par value) were
outstanding as of October 31, 2007.

---



# EXPLANATORY NOTE

This
Amendment No. 2 to the Quarterly Report on Form 10-Q by FNBH Bancorp, Inc. for the quarterly period
ended September 30, 2007, that was originally filed with the Securities and Exchange
Commission (SEC) on November 9, 2007, and amended by Amendment No. 1 filed on February 6,
2008, is being filed in response to
comments received from the staff of the SEC.

In
response to such comments, this Form 10-Q/A is being filed for the sole purpose of reflecting the restatement
of the Consolidated Statements of Cash Flows (Unaudited) for the nine months ended
September 30, 2007 and 2006, as discussed in Note 10 of the Notes to Consolidated
Financial Statements.  Except for such restated Consolidated
Statements of Cash Flows (Unaudited) and Note 10 of the Notes to
Consolidated Financial Statement, set forth in this Amendment No. 2, the
Corporation is not otherwise amending any part of the Form 10-Q. Accordingly, this Form 10-Q/A
includes only Item 1 of Part I (pursuant to Rule 12b-15) as it is the only Item being
amended.

To
comply with certain technical requirements of the SECs rules in connection with the
filing of this Amendment No. 2 to the Quarterly Report on Form 10-Q/A, we are adding, as
exhibits, certain current dated certifications of our principal executive officer and
principal financial officer. This Amendment No. 2 on Form 10-Q/A continues to speak as of
the date of Form 10-Q as originally filed on November 9, 2007 (the Original
Report). We have not updated the disclosures contained herein to reflect any events
that occurred at a date subsequent to the date of the Original Report. The filing of this
Amendment No. 2 on Form 10-Q/A is not a representation that any statement contained in the
Original Report or this Amendment No. 2 on Form 10-Q/A is true or complete subsequent to
the date of the Original Report.

---



# TABLE OF CONTENTS

|                                                                                                      
|------------------------------------------------------------------------------------------------------
|Part I. Financial Information (unaudited)                                                             
|Item 1. Financial Statements:                                                                         
|Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006                            
|Consolidated Statements of Income for the three months and nine months ended                          
|September 30, 2007 and 2006                                                                           
|Consolidated Statements of Stockholders' Equity and Comprehensive Income                              
|for the three months ended September 30, 2007 and 2006                                                
|Consolidated Statements of Stockholders' Equity and Comprehensive                                     
|Income for the nine months ended September 30, 2007 and 2006                                          
|Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and 2006 (restated)
|Notes to Consolidated Financial Statements                                                            

Part II. Other
InformationItem 6. Exhibits

| | (a) | The following exhibits (listed by number corresponding to the Exhibit Table as
               Item 601 in Regulation S-K) are filed with this report:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.1 | Certificate
of the Chief Executive Officer of FNBH Bancorp, Inc. pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certificate
of the Chief Financial Officer of FNBH Bancorp, Inc. pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 32.1 | Certificate
of the Chief Executive Officer of FNBH Bancorp, Inc. pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 32.2 | Certificate
of the Chief Financial Officer of FNBH Bancorp, Inc. pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------

---



# PART I  FINANCIAL
INFORMATION Item 1. Financial
Statements

# FNBH BANCORP, INC. AND
SUBSIDIARIES Consolidated Balance
Sheets (Unaudited)

|Assets                                                                 | September 30 2007 | December 312006
|---------------------------------------------------------------------- | ----------------- | ---------------
|                                                                       |                   |                
|Cash and due from banks                                                |                   |                
|Short term investments                                                 |                   |                
|                                                                       |                   |                
|Total cash and cash equivalents                                        |                   |                
|Certificates of deposit                                                |                   |                
|Investment Securities:                                                 |                   |                
|Investment securities held to maturity, net (fair value of $15,772,518 |                   |                
|at September 30, 2007 and $17,030,269 at December 31, 2006)            |                   |                
|Investment securities available for sale, at fair value                |                   |                
|Mortgage-backed/CMO securities available for sale, at fair value       |                   |                
|FHLBI and FRB stock, at cost                                           |                   |                
|                                                                       |                   |                
|Total investment securities                                            |                   |                
|Loans held for investment:                                             |                   |                
|Commercial                                                             |                   |                
|Consumer                                                               |                   |                
|Real estate mortgage                                                   |                   |                
|                                                                       |                   |                
|Total loans held for investment                                        |                   |                
|Less allowance for loan losses                                         |                   |                
|                                                                       |                   |                
|Net loans held for investment                                          |                   |                
|Premises and equipment, net                                            |                   |                
|Other real estate owned, held for sale                                 |                   |                
|Accrued interest and other assets                                      |                   |                
|                                                                       |                   |                
|Total assets                                                           |                   |                
|                                                                       |                   |                
|Liabilities and Stockholders' Equity                                   |                   |                
|Liabilities                                                            |                   |                
|Deposits:                                                              |                   |                
|Demand (non-interest bearing)                                          |                   |                
|NOW                                                                    |                   |                
|Savings and money market                                               |                   |                
|Time deposits                                                          |                   |                
|Brokered certificates of deposit                                       |                   |                
|                                                                       |                   |                
|Total deposits                                                         |                   |                
|Other borrowings                                                       |                   |                
|Accrued interest, taxes, and other liabilities                         |                   |                
|                                                                       |                   |                
|Total liabilities                                                      |                   |                
|Stockholders' Equity                                                   |                   |                
|Common stock, no par value. Authorized 4,200,000 shares; 3,045,723     |                   |                
|shares issued and outstanding at September 30, 2007 and 3,074,528      |                   |                
|shares issued and outstanding at December 31, 2006                     |                   |                
|Retained earnings                                                      |                   |                
|Deferred directors' compensation                                       |                   |                
|Accumulated other comprehensive loss, net                              |                   |                
|                                                                       |                   |                
|Total stockholders' equity                                             |                   |                
|                                                                       |                   |                
|Total liabilities and stockholders' equity                             |                   |                
|                                                                       |                   |                

See notes to consolidated financial
statements.

1

---



# FNBH BANCORP, INC. AND
SUBSIDIARIESConsolidated
Statements of Income (Unaudited)

|                                                            | Three months ended September 30 | Nine months ended September 30
|----------------------------------------------------------- | ------------------------------- | ------------------------------
|                                                            |                                 |                               
|                                                            |                                 |                               
|Interest and dividend income:                               |                                 |                               
|Interest and fees on loans                                  |                                 |                               
|Interest and dividends on investment securities:            |                                 |                               
|U.S. Treasury, agency securities, and CMOs                  |                                 |                               
|Obligations of states and political subdivisions            |                                 |                               
|Corporate bonds                                             |                                 |                               
|Other securities                                            |                                 |                               
|Interest on certificates of deposit                         |                                 |                               
|Interest on short term investments                          |                                 |                               
|                                                            |                                 |                               
|Total interest and dividend income                          |                                 |                               
|                                                            |                                 |                               
|                                                            |                                 |                               
|Interest expense:                                           |                                 |                               
|Interest on deposits                                        |                                 |                               
|Interest on other borrowings                                |                                 |                               
|                                                            |                                 |                               
|Total interest expense                                      |                                 |                               
|                                                            |                                 |                               
|                                                            |                                 |                               
|Net interest income                                         |                                 |                               
|                                                            |                                 |                               
|Provision for loan losses                                   |                                 |                               
|                                                            |                                 |                               
|Net interest income after provision for loan losses         |                                 |                               
|                                                            |                                 |                               
|                                                            |                                 |                               
|Noninterest income:                                         |                                 |                               
|Service charges and other fee income                        |                                 |                               
|Trust income                                                |                                 |                               
|Gain on sale of mortgage loans                              |                                 |                               
|Gain (loss) on available for sale securities                |                                 |                               
|Other                                                       |                                 |                               
|                                                            |                                 |                               
|Total noninterest income                                    |                                 |                               
|                                                            |                                 |                               
|                                                            |                                 |                               
|Noninterest expense:                                        |                                 |                               
|Loss on sale/writedown of commercial loans held    for sale |                                 |                               
|Salaries and employee benefits                              |                                 |                               
|Net occupancy expense                                       |                                 |                               
|Equipment expense                                           |                                 |                               
|Professional and service fees                               |                                 |                               
|Computer service fees                                       |                                 |                               
|Printing and supplies                                       |                                 |                               
|Director fees                                               |                                 |                               
|Advertising                                                 |                                 |                               
|Other                                                       |                                 |                               
|                                                            |                                 |                               
|Total noninterest expense                                   |                                 |                               
|                                                            |                                 |                               
|Income (loss) before federal income taxes (credit)          |                                 |                               
|Federal income taxes (credit)                               |                                 |                               
|                                                            |                                 |                               
|Net income (loss)                                           |                                 |                               
|                                                            |                                 |                               
|                                                            |                                 |                               
|Per share statistics:                                       |                                 |                               
|Basic EPS                                                   |                                 |                               
|Diluted EPS                                                 |                                 |                               
|Dividends                                                   |                                 |                               
|Basic average shares outstanding                            |                                 |                               
|Diluted average shares outstanding                          |                                 |                               

See notes to consolidated financial
statements.

2

---



# FNBH BANCORP, INC. AND
SUBSIDIARIES Consolidated
Statements of Stockholders Equity and Comprehensive IncomeFor the Three Months
Ended September 30, 2007 and 2006 (Unaudited)

|                                                     | CommonStock | Retained
Earnings | Deferred 
 Directors' 
Compensation | Accumulated 
    Other
Comprehensive
    Loss | Total     
|---------------------------------------------------- | ----------- | ----------------- | ----------------------------------- | --------------------------------------------- | ----------
|                                                     |             |                   |                                     |                                               |           
|Balances at June 30, 2006                            |             |                   | $                                   | 6,143,636                                     |           
|Earned portion of long term incentive plan           |             |                   |                                     | 11,495                                        |           
|Issued 273 shares for employee stock purchase plan   |             |                   |                                     | 6,741                                         |           
|Directors' deferred compensation (1,113 stock units) |             |                   |                                     |                                               | 28,930    
|Comprehensive income:                                |             |                  
|Net income                                           |             |                   |                                     |                                               | 1,398,688 
|Change in unrealized loss on debt securities         |             |                  
|available for sale, net of tax effect                |             |                   |                                     |                                               | 332,649   
|                                                     |             |                   |                                     |                                               |           
|Total comprehensive income                           |             |                   |                                     |                                               | 1,731,337 
|Repurchase of common stock (39,000 shares)           |             |                   |                                     | (77,610                                       | )         
|Cash dividends ($.21 per share)                      |             |                   |                                     |                                               | (663,955  
|                                                     |             |                   |                                     |                                               |           
|Balances at September 30, 2006                       |             |                   | $                                   | 6,084,262                                     |           
|                                                     |            
|                                                     |             |                  
|Balances at June 30, 2007                            |             |                   | $                                   | 6,098,227                                     |           
|Earned portion of long term incentive plan           |             |                   |                                     | 15,610                                        |           
|Issued 205 shares for employee stock purchase plan   |             |                   |                                     | 3,961                                         |           
|Issued 172 shares for current directors' fees        |             |                   |                                     | 3,498                                         |           
|Directors' deferred compensation (1,251 stock units) |             |                   |                                     |                                               | 25,443    
|Comprehensive income:                                |             |                  
|Net loss                                             |             |                   |                                     |                                               | (4,117,147
|Change in unrealized loss on debt securities         |             |                  
|available for sale, net of tax effect                |             |                   |                                     |                                               | 33,404    
|Less reclassification adjustment for net gain        |             |                  
|included in net loss, net of tax effect              |             |                   |                                     |                                               | (3,852    
|                                                     |             |                   |                                     |                                               |           
|Total comprehensive loss                             |             |                   |                                     |                                               | (4,087,595
|Cash dividends ($.21 per share)                      |             |                   |                                     |                                               | (639,522  
|                                                     |             |                   |                                     |                                               |           
|Balances at September 30, 2007                       |             |                   | $                                   | 6,121,296                                     |           
|                                                     |            

See notes to consolidated financial
statements.

3

---



# FNBH BANCORP, INC. AND
SUBSIDIARIES Consolidated
Statements of Stockholders Equity and Comprehensive IncomeFor the Nine Months Ended
September 30, 2007 and 2006 (Unaudited)

|                                                     | CommonStock | Retained
Earnings | Deferred 
 Directors' 
Compensation | Accumulated 
    Other
Comprehensive
    Loss | Total     
|---------------------------------------------------- | ----------- | ----------------- | ----------------------------------- | --------------------------------------------- | ----------
|                                                     |             |                   |                                     |                                               |           
|Balances at December 31, 2005                        |             |                   | $                                   | 6,088,540                                     |           
|Earned portion of long term incentive plan           |             |                   |                                     | 69,420                                        |           
|Issued 969 shares for employee stock purchase plan   |             |                   |                                     | 23,916                                        |           
|Issued 270 shares for current directors' fees        |             |                   |                                     | 6,999                                         |           
|Issued 1,244 shares for variable directors' fees     |             |                   |                                     | 32,257                                        |           
|Directors' deferred compensation (4,624 stock units) |             |                   |                                     |                                               | 120,127   
|Comprehensive income:                                |             |                  
|Net income                                           |             |                   |                                     |                                               | 4,355,033 
|Change in unrealized loss on debt securities         |             |                  
|available for sale, net of tax effect                |             |                   |                                     |                                               | 123,776   
|                                                     |             |                   |                                     |                                               |           
|Total comprehensive income                           |             |                   |                                     |                                               | 4,478,809 
|Repurchase of common stock (69,000 shares)           |             |                   |                                     | (136,870                                      | )         
|Cash dividends ($.63 per share)                      |             |                   |                                     | -                                             |           
|                                                     |             |                   |                                     |                                               |           
|Balances at September 30, 2006                       |             |                   | $                                   | 6,084,262                                     |           
|                                                     |             |                  
|                                                     |             |                  
|Balances at December 31, 2006                        |             |                   | $                                   | 6,005,835                                     |           
|Earned portion of long term incentive plan           |             |                   |                                     | 119,086                                       |           
|Issued 904 shares for employee stock purchase plan   |             |                   |                                     | 20,927                                        |           
|Issued 371 shares for current directors' fees        |             |                   |                                     | 8,489                                         |           
|Issued 1,141 shares for variable directors' fees     |             |                   |                                     | 30,020                                        |           
|Issued 685 shares for deferred directors' fees       |             |                   |                                     | 14,549                                        |           
|Directors' deferred compensation (4,549 stock units) |             |                   |                                     |                                               | 127,766   
|Comprehensive income:                                |             |                  
|Net loss                                             |             |                   |                                     |                                               | (6,350,897
|Change in unrealized loss on debt securities         |             |                  
|available for sale, net of tax effect                |             |                   |                                     |                                               | (29,711   
|Less reclassification adjustment for net loss        |             |                  
|included in net loss, net of tax effect              |             |                   |                                     |                                               | 361,397   
|                                                     |             |                   |                                     |                                               |           
|Total comprehensive loss                             |             |                   |                                     |                                               | (6,019,211
|Repurchase of common stock (39,000 shares)           |             |                   |                                     | (77,610                                       | )         
|Cash dividends ($.63 per share)                      |             |                   |                                     | -                                             |           
|                                                     |             |                   |                                     |                                               |           
|Balances at September 30, 2007                       |             |                   | $                                   | 6,121,296                                     |           
|                                                     |             |                  

See notes to consolidated financial
statements.

4

---



# FNBH BANCORP, INC. AND
SUBSIDIARIES Consolidated
Statements of Cash Flows (Unaudited)

|                                                                                         | Nine months ended September 30
|---------------------------------------------------------------------------------------- | ------------------------------
|                                                                                        
|                                                                                         |                               
|Cash flows from operating activities:                                                    |                               
|Net income (loss)                                                                        |                               
|                                                                                         |                               
|Adjustments to reconcile net income (loss) to net cash provided by operating activities: |                               
|Provision for loan losses                                                                |                               
|Depreciation and amortization                                                            |                               
|Deferred income tax expense (benefit)                                                    |                               
|Net amortization on investment securities                                                |                               
|Earned portion of long term incentive plan                                               |                               
|Shares issued for current and variable directors' compensation                           |                               
|Shares earned for deferred directors' compensation                                       |                               
|Loss on disposal of equipment                                                            |                               
|Loss on available for sale securities                                                    |                               
|Gain on sale of loans held for sale                                                      |                               
|Loss on sale/writedown of commercial loans held for sale                                 |                               
|Proceeds from sale of loans originated for sale                                          |                               
|                                                                                         |                               
|Origination of loans held for sale                                                       |                               
|Loss on sale of other real estate owned, held for sale                                   |                               
|Increase in accrued interest income and other assets                                     |                               
|Increase (decrease) in accrued interest, taxes, and other liabilities                    |                               
|                                                                                         |                               
|Net cash provided by operating activities                                                |                               
|                                                                                         |                               
|Cash flows from investing activities:                                                    |                               
|Purchases of available for sale securities                                               |                               
|Purchases of held to maturity securities                                                 |                               
|Purchases/Stock dividend FHLBI stock                                                     |                               
|Proceeds from sales of available for sale securities                                     |                               
|Proceeds from maturities and calls of available for sale securities                      |                               
|Proceeds from mortgage-backed securities paydowns-available for sale                     |                               
|Proceeds from maturities and calls of held to maturity securities                        |                               
|Proceeds from sale of loans held for sale                                                |                               
|Proceeds from sales of other real estate owned, held for sale                            |                               
|Proceeds from sales of land and facilities held for sale                                 |                               
|Purchases of certificates of deposit                                                     |                               
|Maturity of certificates of deposit                                                      |                               
|Net (increase) decrease in loans                                                         |                               
|Capital expenditures                                                                     |                               
|                                                                                         |                               
|Net cash provided by investing activities                                                |                               
|                                                                                         |                               
|Cash flows from financing activities:                                                    |                               
|Net decrease in deposits                                                                 |                               
|Payments on FHLBI note                                                                   |                               
|Proceeds from issuance of short term debt                                                |                               
|Repayment of short term debt                                                             |                               
|Repurchase of common stock                                                               |                               
|Dividends paid                                                                           |                               
|Shares issued for employee stock purchase                                                |                               
|                                                                                         |                               
|Net cash used in financing activities                                                    |                               
|                                                                                         |                               
|Net increase (decrease) in cash and cash equivalents                                     |                               
|Cash and cash equivalents at beginning of year                                           |                               
|                                                                                         |                               
|Cash and cash equivalents at end of period                                               |                               
|                                                                                         |                               
|                                                                                         |                               
|Supplemental disclosures:                                                                |                               
|Interest paid                                                                            |                               
|Federal income taxes paid                                                                |                               
|Loans, net of reserves, transferred to held for sale                                     |                               
|Loans charged off                                                                        |                               
|Loans transferred to other real estate                                                   |                               
|Loans, net of reserves, transferred to held for investment from held for sale            |                               
|                                                                                         |                               

5

---



Notes to Consolidated
Financial Statements (unaudited) The accompanying unaudited
consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP) 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
GAAP for complete financial statements.

1.    
          In the opinion of management of FNBH Bancorp, Inc. (the Corporation), the
          unaudited consolidated financial statements filed with this Form 10-Q contain
          all adjustments (consisting of only normal recurring accruals) necessary to
          present fairly the consolidated financial position of the Corporation as of
          September 30, 2007, and consolidated results of operations and cash flows
          for the nine months ended September 30, 2007 and 2006.

2.    
          The results of operations for the nine months ended September 30, 2007 are
          not necessarily indicative of the results to be expected for the full year.

3.    
          The accompanying unaudited consolidated financial statements should be read in
          conjunction with the Consolidated Financial Statements in the 2006 Annual Report
          contained in the Corporations report on Form 10-K filing.

4.    
          The provision for income taxes represents federal income tax expense
          (credit) calculated using estimated annualized rates on taxable income
          (loss) generated during the respective periods.

5.    
          Investment and Mortgage-Backed/CMO Securities. A summary of the amortized cost
          and approximate fair value of investment and mortgage-backed/CMO securities at
          September 30, 2007 and December 31, 2006 follows:

|                         | September 30, 2007 | December 31, 2006
|------------------------ | ------------------ | -----------------
|                         |                    |                  
|                         |                    |                  
|                         |                    |                  
|Held to maturity:        |                    |                  
|Obligations of state and |                    |                  
|political subdivisions   |                    |                  
|                         |                    |                  
|Total held to maturity   |                    |                  
|                         |                    |                  
|Available for sale:      |                    |                  
|U.S Treasury and agency  |                    |                  
|securities               |                    |                  
|Mortgage-backed/CMO      |                    |                  
|securities               |                    |                  
|                         |                    |                  
|Total available for sale |                    |                  
|                         |                    |                  
|                         |                    |                  
|Total securities         |                    |                  
|                         |                    |                  

There were six agency securities and
sixteen municipal securities in a continuous loss position for 12 months or more at
September 30, 2007. Because the declines in fair value were due to changes in market
interest rates, not in estimated cash flows, and the securities are federal agencies and
insured municipalities, no other-than-temporary impairment was recorded at
September 30, 2007. The Corporation has both the intent and ability to hold these
securities for the time necessary to recover the amortized cost. During the third quarter
of 2007, six agency securities and 24 mortgage-backed securities were sold at a net
realized loss of $547,571 as reflected in the income statement as Gain
(loss) on available for sale securities. An impairment charge of $553,407 was
recorded on these securities as of June 30, 2007. The proceeds from the sale were
reinvested in higher yielding agency and mortgage-backed securities in July 2007.

6

---



The following is a summary of the
unrealized losses and fair value of the securities at September 30, 2007, by length
of time that individual securities in each category have been in a continuous loss
position:

|                         | Less than 12 months | September 30, 200712 months or more | Total
|------------------------ | ------------------- | ----------------------------------- | -----
|                         |                     |                                     |      
|                         |                     |                                     |      
|                         |                     |                                     |      
|Held to maturity:        |                     |                                     |      
|Obligations of state and |                     |                                    
|political subdivisions   |                     |                                     | $    
|                         |                     |                                     |      
|                         |                     |                                    
|Available for sale:      |                     |                                    
|U.S. Treasury and agency |                     |                                    
|securities               |                     |                                     | $    
|Mortgage-backed/CMO      |                     |                                    
|securities               |                     |                                     |      
|                         |                     |                                     |      
|                         |                     |                                    
|Total available for sale |                     |                                     | $    
|                         |                     |                                     |      

As of December 31, 2006, there
were 36 investments that had been in a continuous loss position for 12 months or more and
no impairment was recorded.

6.    
          Managements assessment of the allowance for loan losses is based on an
          evaluation of the loan portfolio, recent loss experience, current economic
          conditions, and other pertinent factors. Loans on non-accrual status and those
          past due more than 90 days amounted to $11,471,000 at September 30, 2007,
          $16,605,000 at June 30, 2007, $12,487,000 at December 31, 2006, and
          $12,255,000 at September 30, 2006. (See Managements Discussion and
          Analysis of Financial Condition and Results of Operations).

7.    
          Basic net income (loss) per share and diluted net income (loss) per
          share are computed by dividing net income (loss) by the weighted average
          number of shares of common stock and deferred director fee stock units
          outstanding during the period. Diluted net income (loss) per share is
          computed by dividing net income (loss) by the weighted average number of
          shares and deferred director fee stock units outstanding and potential common
          stock outstanding, such as shares of unvested restricted stock outstanding
          during the period calculated under the treasury stock method.

7

---



The following table presents basic
and diluted net income (loss) per share:

|                                            | Third Quarter | Year-to-Date
|------------------------------------------- | ------------- | ------------
|                                            |               |             
|                                            |               |             
|Weighted average basic shares outstanding   |               |             
|Effect of dilutive restricted stock         |               |             
|                                            |               |             
|Weighted average diluted shares outstanding |               |             
|                                            |               |             
|Net income (loss)                           |               |             
|Basic net income (loss) per share           |               |             
|Diluted net income (loss) per share         |               |             
|                                            |               |             
|Anti-dilutive shares excluded from diluted  |               |             
|calculation                                 |               |             

8.    
          Under the Long-Term Incentive Plan (the Plan), the Corporation
          grants stock options and restricted stock as compensation to key employees. The
          Corporation has not awarded any stock options under the Plan to date. The
          restricted stock awards have a five year vesting period. The awards are recorded
          at fair market value on the grant date and are amortized into salary expense
          over the vesting period. The number of shares available for issuance under the
          Plan cannot exceed 200,000. A summary of the activity under the Plan for the
          nine months ended September 30, 2007 and 2006 is presented below:

|                             | 2007 | 2006
|---------------------------- | ---- | ----
|                             |      |     
|                             |      |     
|                             |      |     
|Outstanding at January 1,    |      |     
|Granted                      |      |     
|Vested                       |      |     
|Forfeited                    |      |     
|                             |      |     
|Outstanding at September 30, |      |     
|                             |      |     

There were no awards granted during
the three months ended September 30, 2007 and 2006. The total fair value of awards
vested during the three months ended at September 30, 2007 and 2006 was $15,610 and
$11,495, respectively. As of September 30, 2007, there was $175,149 of total
unrecognized compensation cost related to non-vested stock awards under the Plan. That
cost is expected to be recognized over a weighted-average period of 3.9 years.

9.    
          Certain amounts included in the 2006 Consolidated Financial Statements have been
          reclassified to conform to the 2007 presentation.

10.    
          Subsequent to the issuance of the Corporation's Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2007, the Corporation determined that its Consolidated Statements of Cash Flows for the nine months
ended September 30, 2007 and 2006 contained errors in classification of certain loan activities.  As a result,
the Corporation has restated the accompanying Consolidated Statements of Cash Flows for the nine months ended
September 30, 2007 and 2006.

The restatement of the Consolidated
Statement of Cash Flows for the nine months ended September 30, 2007 resulted from the
misclassification of cash flows from the sale of commercial loans originally held for
investment, which had inappropriately been classified as operating activities. In
accordance with Statement of Financial Accounting Standards No. 102, Statement of Cash
Flows  Exemption of Certain Enterprises and Classification of Cash Flows from
Certain Securities Acquired for Resale  An Amendment of FASB Statement No. 95,
cash flows from the sale of commercial loans originally held for investment should be
classified as investing activities rather than operating activities. Accordingly, the
restatement affects the classification of these activities and the subtotals of cash flows
from operating and investing activities presented in the Consolidated Statement of Cash
Flows for the nine months ended September 30, 2007 but it has no impact on the Net
increase (decrease) in cash and cash equivalents set forth in that Statement. The
restatement does not affect the Corporations Consolidated Balance Sheet,
Consolidated Statement of Income or Consolidated Statement of Stockholders Equity
and Comprehensive Income as of and for the nine months ended September 30, 2007.

The restatement of the Consolidated
Statement of Cash Flows for the nine months ended September 30, 2006 resulted from a
typing error when preparing the Statement as part of the 2007 filing (the September 2006
filing was correct) which resulted in a misclassification between cash flows from sale of
loans originated for sale and cash flows from sale of loans held for sale within the
operating activities section. Accordingly, the restatement affects the classification of
these activities within the operating activities section but had no impact on the subtotal
of cash flows from operating activities or on the Net increase (decrease) in cash and cash
equivalents set forth in that Statement. The restatement also does not affect the
Corporations Consolidated Balance Sheet, Consolidated Statement of Income or
Consolidated Statement of Stockholders Equity and Comprehensive Income as of and for
the nine months ended September 30, 2006.

The effects of the restatements on
the Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and
2006 are reflected in the following table:

|                                                | 2007 | 2006
|----------------------------------------------- | ---- | ----
|                                                |      |     
|                                                |      |     
|As Originally Reported:                         |      |     
|Cash flows from operating activities:           |      |     
|Proceeds from sale of loans originated for sale |      |     
|Proceeds from sale of loans held for sale       |      |     
|Net cash provided by operating activities       |      |     
|                                                |      |     
|Cash flows from investing activities:           |      |     
|Net cash provided by investing activities       |      |     
|                                                |      |     
|As Restated:                                    |      |     
|Cash flows from operating activities:           |      |     
|Proceeds from sale of loans originated for sale |      |     
|Net cash provided by operating activities       |      |     
|                                                |      |     
|Cash flows from investing activities:           |      |     
|Proceeds from sale of loans held for sale       |      |     
|Net cash provided by investing activities       |      |     
|                                                |      |     
|Difference:                                     |      |     
|Cash flows from operating activities:           |      |     
|Proceeds from sale of loans originated for sale |      |     
|Proceeds from sale of loans held for sale       |      |     
|Net cash provided by operating activities       |      |     
|                                                |      |     
|Cash flows from investing activities:           |      |     
|Proceeds from sale of loans held for sale       |      |     
|Net cash provided by investing activities       |      |     

8

---



# SIGNATURE

Pursuant
to the requirements of the Securities and Exchange Act of 1934, as amended, the Registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

|Dated:  February 20, 2008 |  | FNBH BANCORP, INC./s/ Janice B. Trouba
Janice B. TroubaChief
Financial Officer
|------------------------- |  | --------------------------------------------------------------------------------------------

9