SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-Q
                              --------------------

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

                  For the quarterly period ended March 31, 1998
                                       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                                38-2869722
     (State or other jurisdiction of                 (I.R.S. Employer
     incorporation or organization)                 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___

The number of shares outstanding of each of the issuers classes of common stock,
as of the latest  practicable  date:  1,575,000  shares of the Company's  Common
Stock (no par value) were outstanding as of March 31, 1998.
<PAGE>
                                      INDEX


                                                                            Page
                                                                          Number
Part I.   Financial Information (unaudited):

    Item 1.
    Interim Financial Statements:
    Consolidated Balance Sheets as of March 31, 1998 and Dec. 31, 1997.........4
    Consolidated Statements of Income, three months ended
    March 31, 1998 and 1997....................................................5
    Consolidated Statements of Stockholders' Equity and Comprehensive
    Income for three months ended March 31, 1998 and 1997......................6
    Consolidated Statements of Cash Flows for three months ended
    March 31, 1998 and 1997....................................................7
    Notes to Interim Consolidated Financial Statements.........................8

    Item 2.
    Management's Discussion and Analysis of
    Financial Condition and Results of Operations..............................9


Part II.  Other Information

    Item 6....................................................................17

    Signatures................................................................17
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.
Financial Statements
Unaudited interim consolidated financial statements follow.
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>

Consolidated Balance Sheets                               
---------------------------
                                                            March 31     December 31
                                                             1998            1997
                                                                             ----
Assets                                                    (unaudited)
<S>                                                       <C>            <C>
Cash and due from banks ...............................   $ 10,636,642   $ 15,638,564
Federal funds sold ....................................      1,900,000      3,100,000
   Total cash and cash equivalents ....................     12,536,642     18,738,564

Investment securities held to maturity, net
  (fair value of $30,250,000 at
  March 31, 1998 and $30,571,000 at Dec. 31, 1997) ....     29,671,683     30,065,021
Investment securities available for sale, at fair value     13,028,220     13,026,347
Mortgage-backed securities held to maturity,
   net (fair value of $572,000 at
   March 31, 1998 and $632,000 at Dec. 31, 1997) ......        570,593        633,372
      Total investment securities .....................     43,270,496     43,724,740

Loans:
   Commercial .........................................    118,127,369    110,005,566
   Consumer ...........................................     25,582,316     24,896,572
   Real estate mortgages ..............................     23,914,913     24,108,647
      Total loans .....................................    167,624,598    159,010,785
   Less unearned income ...............................        598,838        613,444
   Less allowance for loan losses .....................      3,572,370      3,423,847
      Net loans .......................................    163,453,390    154,973,494

Bank premises and equipment - net .....................      5,736,212      4,974,412
Accrued interest and other assets .....................      4,035,837      3,903,047
Other real estate owned ...............................        335,713              0
      Total assets ....................................   $229,368,290   $226,314,257


Liabilities and Stockholders' Equity

Liabilities
Deposits:
   Non-interest bearing demand ........................   $ 39,432,588   $ 41,630,813
   NOW ................................................     22,833,984     23,699,151
   Savings and money market ...........................     63,228,678     60,839,930
   Time ...............................................     79,426,805     76,129,297
       Total deposits .................................    204,922,055    202,299,191

Accrued interest, taxes, and other liabilities ........      2,053,864      2,283,041
      Total liabilities ...............................    206,975,919    204,582,232

Stockholders' Equity
Common stock, no par value.  Authorized
     2,100,000 shares; 1,575,000 shares
     issued and outstanding at March 31,
     1998 and Dec. 31, 1997 ...........................      5,250,000      5,250,000
Retained earnings .....................................     17,130,393     16,467,201
Accumulated other comprehensive income, net ...........         11,978         14,824
      Total stockholders' equity ......................     22,392,371     21,732,025
       Total liabilities and stockholders' equity .....   $229,368,290   $226,314,257
</TABLE>

   See notes to interim consolidated financial statements
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

<TABLE>
Consolidated Statements of Income
Unaudited                                                             Three
                                                             months ended March 31
                                                               1998          1997
<S>                                                         <C>          <C>
Interest income:
   Interest and fees on loans ...........................   $4,001,808   $3,299,903
   Interest and dividends on investment securities:
      U.S. Treasury securities ..........................      422,812      520,598
      Obligations of state and political subdivisions ...      189,424      173,628
   Interest on federal funds sold .......................       65,500       51,951
      Total interest income .............................    4,679,544    4,046,080

Interest expense:
   Interest on deposits .................................    1,756,357    1,480,396
   Other interest expense ...............................          666            0
      Total interest expense ............................    1,757,023    1,480,396

      Net interest income ...............................    2,922,521    2,565,684

Provision for loan losses ...............................      150,000      112,125
      Net interest income after provision for loan losses    2,772,521    2,453,559

Non-interest income:
   Service charges ......................................      372,061      380,200
    Gain (loss) on sale of loans ........................       59,430       37,839
   Other ................................................       16,401       10,308
      Total non-interest income .........................      447,892      428,347


Non-interest expense:
   Salaries and employee benefits .......................    1,041,832      916,551
   Net occupancy ........................................      132,905      141,849
   Equipment expense ....................................      115,333      108,242
   Fees .................................................       51,695       46,909
   Printing and supplies ................................       65,721       53,781
   Michigan Single Business Tax .........................       52,000       49,000
   Other ................................................      409,235      282,868
      Total non-interest expense ........................    1,868,721    1,599,200

Income before federal income taxes ......................    1,351,692    1,282,706

Federal income taxes ....................................      405,000      384,500

      Net income ........................................   $  946,692   $  898,206

Per share statistics*
   Net income ...........................................         $.60         $.57
   Dividends ............................................         $.18         $.15
   Book Value ...........................................        $14.22      $13.80

*Based on 1,575,000 shares outstanding March 31, 1998 and 1997 respectively
</TABLE>
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
    Consolidated Statements of Stockholders' Equity and Comprehensive Income
               For the Three Months Ended March 31, 1998 and 1997
                                   (Unaudited)

<TABLE>
                                                                                 Accumulated
                                                                                   Other
                                                   Common         Retained      Comprehensive
                                                    Stock         Earnings         Income           Total
<S>                                                <C>           <C>              <C>             <C>
Balances at December 31, 1996                      $5,250,000    14,308,934        38,174         19,597,108
Net income                                                          898,206                          898,206

Change in unrealized gain on debt securities
   available for sale, net of tax effect                                          (28,231)           (28,231)

Cash dividends (15 cents per share)                                (236,249)                        (236,249)

Balances at March 31, 1997                         $5,250,000    14,970,891         9,943         20,230,834
</TABLE>
See notes to interim consolidated financial statements
<TABLE>


                                                                                Accumulated
                                                                                   Other
                                                    Common       Retained      Comprehensive
                                                     Stock       Earnings         Income            Total
<S>                                                <C>           <C>              <C>             <C>
Balances at December 31, 1997                      $5,250,000    16,467,201       14,824          21,732,025

Net income                                                          946,692                          946,692
Change in unrealized gain on debt securities
   available for sale, net of tax effect                                          (2,846)             (2,846)

Cash dividends (18 cents per share)                                (283,500)                        (283,500)

Balances at March 31, 1998                         $5,250,000    17,130,393       11,978          22,392,371
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows
Unaudited
<TABLE>
                                                                               Three months ended March 31
                                                                                    1998          1997
<S>                                                                           <C>             <C>
 Cash flows from operating activities:
   Net income .............................................................   $    946,692    $    898,206
   Adjustments to reconcile net income to net cash provided by operating
activities:
      Provision for loan losses ...........................................        150,000         112,125
      Depreciation and amortization .......................................        110,767         102,191
      Net amortization on investment securities ...........................          6,144           9,425
      Loss on disposal of equipment .......................................            725               0
      Gain on sale of loans ...............................................        (59,430)        (37,839)

      Proceeds from sale of loans .........................................      3,160,461       3,222,628
      Origination of loans held for sale ..................................     (3,727,477)     (3,262,950)
      Increase in accrued interest income and other assets ................       (468,503)        (75,314)
      Increase (decrease) in accrued interest, taxes, and other liabilities       (227,677)        124,687

         Net cash provided by (used in) operating activities ..............       (108,298)      1,093,159

Cash flows from investing activities:
   Purchases of available for sale securities .............................     (2,006,021)       (995,781)

   Proceeds  from maturities and calls of available for sale securities ...      2,000,000       3,000,000
   Proceeds from mortgage-backed securities paydowns-available for sale ...              0           2,872
   Purchases of held to maturity securities ...............................     (1,612,814)     (3,953,769)
   Proceeds from maturities and calls of held to maturity securities ......      2,000,000               0

   Proceeds from mortgage-backed securities paydowns-held to maturity .....         62,589         184,140
   Net increase in loans ..................................................     (8,003,450)     (5,404,310)
   Capital expenditures ...................................................       (873,292)        (75,833)
         Net cash used in investing activities ............................     (8,432,988)     (7,242,681)

Cash flows from financing activities:
   Net increase in deposits ...............................................      2,622,864       2,984,296
   Dividends paid .........................................................       (283,500)       (236,250)
         Net cash provided by financing activities ........................      2,339,364       2,748,046

 Net decrease in cash and cash equivalents ................................     (6,201,922)     (3,401,476)

Cash and cash equivalents at beginning of year ............................     18,738,564      13,569,216

Cash and cash equivalents at end of period ................................   $ 12,536,642    $ 10,167,740

Supplemental disclosures:
   Interest paid ..........................................................   $  1,742,381    $  1,480,372
   Loans transferred to other real estate .................................        335,713            --
   Loans charged off ......................................................         15,926          84,360
</TABLE>
 See notes to interim consolidated financial statements
<PAGE>
Notes to Interim Consolidated Financial Statements(unaudited)

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  Registrant,  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  Registrant  as of March 31, 1998,  and
consolidated results of operations for the three months ended March 31, 1998 and
1997 and  consolidated  cash flows for the three months ended March 31, 1998 and
1997.

2. The results of  operations  for the three months ended March 31, 1998 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 Notes to Consolidated  Financial  Statements in the 1997
Annual Report contained in the Registrant's report on Form 10-K filing.

4. The  provision  for  income  taxes  represents  Federal  income  tax  expense
calculated  using  annualized  rates on  taxable  income  generated  during  the
respective periods.

5.  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 $881,000 at March 31, 1998 and $1,058,000
at December 31, 1997.  (See  Management's  Discussion  and Analysis of financial
condition and results of operations).
<PAGE>
Item 2.
                      Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                          Interim Financial Statements

FNBH Bancorp, Inc. (the Company), a Michigan business corporation, is a one bank
holding  company,  which  owns  all of the  outstanding  capital  stock of First
National Bank in Howell (the Bank) and all of the outstanding stock of HB Realty
Co., a subsidiary  which owns real estate.  The following is a discussion of the
Company's  results of  operations  for the three months ended March 31, 1998 and
1997,  and  also  provides  information  relating  to  the  Company's  financial
condition, focusing on its liquidity and capital resources.
<TABLE>
Earnings  (in thousands                                                  First Quarter
except per share data)                                                  1998        1997
                                                                        ----        ----
<S>                                                                    <C>          <C>
Net income                                                               $  947      $  898

Net Income per Share                                                   60 cents     57 cents
</TABLE>
Net income of $947,000 for the three  months  ended March 31, 1998  increased 5%
from the amount reported for the same period of the prior year.  Contributing to
the  improvement  in earnings was an increase of $357,000  (14%) in net interest
income.  This increase is the result of the Bank's growth in commercial loans as
well  as  an  increase  in  the  Bank's  interest  margin  of 12  basis  points.
Additionally,  non-interest income increased  approximately $20,000 in the first
quarter of 1998  compared to the same period last year.  The  increase in income
would have been  greater if  non-interest  expense  had not  increased  $270,000
(17%).
<TABLE>
Net Interest Income                                                   First Quarter
(in thousands)                                                     1998          1997
<S>                                                              <C>            <C>
Interest Income                                                   $4,680       $4,046
Interest Expense                                                   1,757        1,480

Net Interest Income                                             $ 2,923        $2,566
</TABLE>
The Company's 1998 first quarter net interest  income  increased  $357,000.  The
following table illustrates some of the factors  contributing to the increase in
net interest income for the first quarter.
<PAGE>
                                     TABLE 1
                    INTEREST YIELDS AND COSTS (in thousands)
                             March 31, 1998 and 1997
<TABLE>
                                          ---------------First Quarter Averages----------------
                                                1998                                1997
                                                ----                                ----
                                       Average                         Average
                                       Balance    Interest    Rate     Balance     Interest   Rate
<S>                                    <C>        <C>         <C>      <C>         <C>       <C>
Assets:
Fed funds sold                         $ 4,827    $  65.5     5.43%    $ 3,988     $ 51.9    5.21%
Securities:  Taxable                    28,599      422.8     6.03      35,043      520.7    5.94%
             Tax-exempt(1)              14,600      262.7     7.20%     13,005      242.9    7.47%
Loans(2)(3)                            163,176    4,006.1     9.84%    137,484    3,304.8    9.64%

Total earning assets/total
interest income                        211,202   $4,757.1     9.04%    189,520   $4,120.3    8.71%

Cash & due from banks                   8,333                            7,071
All other assets                        9,418                            8,451
Allowance for loan loss                (3,500)                          (3,366)
                      
   Total assets                      $225,453                         $201,676

Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts              $  86,399    $  636.4     2.99%   $ 82,114   $  554.7    2.74%
Time                                   78,277     1,119.9     5.80%     67,090      925.7    5.60%
Fed funds purchased                        45          .7                    0          0      -
Total interest bearing
liabilities/total interest expense    164,721   $ 1,757.0     4.33%    149,204   $1,480.4    4.02%
Non-interest bearing deposits          36,618                           30,932
All other liabilities                   1,955                            1,611
Shareholders' Equity                   22,159                           19,929
Total liabilities and
   shareholders' equity              $225,453                         $201,676
Interest spread                                               4.71%                          4.69%
Net interest income-FTE                         $ 3,000.1                        $2,639.9
Net interest margin                                           5.66%                          5.54%
</TABLE>
    (1)   Average   yields  in  the  above   table  have  been   adjusted  to  a
          tax-equivalent  basis  using a 34% tax rate and  exclude the effect of
          any market value  adjustments  recorded  under  Statement of Financial
          Standards No. 115.
    (2)   For  purposes  of the  computation  above,  non-accrual  loans are not
          included in the average daily loan balances.
    (3)   Interest  on loans includes origination fees totaling $153,000 in 1998
          and $75,000 in 1997.

Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased  approximately  $637,000 in
the first quarter of 1998 compared to that of 1997.  Income from the sale of Fed
Funds  increased  nearly  $14,000 both because  average  balances  were $839,000
higher than the prior year and because yields increased 22 basis points.
<PAGE>
In the first  quarter,  income on  taxable  securities  decreased  approximately
$98,000  because the average  balance  decreased  $6,400,000  although  the rate
earned  increased 9 basis points.  Income from tax-exempt  securities  increased
$20,000 even though the yield fell 27 basis points  because the average  balance
increased approximately $1,600,000.

For the first quarter of this year,  tax  equivalent  loan interest was $701,000
higher than the same  period in 1997 due to an  increase in average  balances of
nearly  $26,000,000 and an increase in rates of 20 basis points. The increase in
rates was primarily due to the $78,000  increase in loan  origination  fees. The
growth in loans  was  primarily  in  commercial  loans  where  average  balances
increased  approximately  $22,000,000  (24%).  Average  consumer loans increased
nearly  $3,000,000  (13%).  A strong local economy and marketing  efforts by the
Bank have  contributed to loan growth in the  commercial  and consumer  markets.
Average real estate mortgage loans increased $849,000 (4%). This moderate growth
is due to the Bank's policy of selling  fixed rate  mortgage  loans with fifteen
year and longer maturities. The Bank sold more than $3,000,000 in mortgage loans
during the first quarter of 1998.

Interest Bearing Liabilities/Interest Expense
In the first quarter of 1998, interest expense increased  approximately $277,000
due to an  increase  in average  balances of  approximately  $15,500,000  and an
increase in rates of 21 basis points. Savings and NOW interest expense increased
$82,000 because  average  balances  increased  $4,200,000 and rates increased 25
basis  points.  Interest on time  deposits  increased  $194,000 in 1998 over the
prior year.  Balances  increased  $11,000,000 and the rate paid on time deposits
increased  20 basis points in the first  quarter of 1998 from that of 1997.  The
deposit growth was  principally  the result of the Bank's  marketing  efforts to
increase its share of Livingston County deposits.


Liquidity
Liquidity is monitored by the Bank's Asset/Liability Management Committee (ALCO)
which  meets  at least  monthly.  ALCO  developed,  and the  Board of  Directors
approved,  a liquidity  policy which requires a minimum 15% liquidity ratio. The
Bank's  average  liquidity  ratio was 22.3% in 1997 and  averaged  19.4% for the
first three months of 1998.

Deposits are the  principal  source of funds for the Bank.  Management  monitors
rates at other  financial  institutions  in the area to ascertain that its rates
are competitive in the market.  Management also attempts to offer a wide variety
of  products  to meet the  needs  of its  customers.  The Bank  does not deal in
brokered funds, and the makeup of its over $100,000 certificates, which amounted
to  approximately  $16,000,000  at March 31,  1998  compared to  $15,000,000  at
December 31, 1997, consists of local depositors known to the Bank.

It is the  intention of the Bank's  management  to handle  unexpected  liquidity
needs  through its Federal Funds  position.  The goal is to maintain a daily Fed
Funds balance  sufficient to cover  required cash draws.  During the first three
months  of  the  year,  the  Fed  Funds  Sold  balances  averaged  approximately
$5,000,000  and the Fed Funds  Purchased  balance  average  $45,000.  The Bank's
policy  requires all purchases of Fed Funds to be approved by senior  management
so that liquidity needs are known. The Bank has recently  purchased stock in the
Federal Home Loan Bank of Indianapolis  where it has a line of credit  available
which offers  increased  liquidity to the Bank. The line available  currently is
$13,000,000  and the Bank has  pledged  certain  mortgage  loans and  investment
securities as collateral for this borrowing. In addition, management may look to
"available for sale"  securities in the investment  portfolio to meet additional
liquidity needs.
<PAGE>
In addition to liquidity issues, ALCO discusses the current economic outlook and
its impact on the Bank and current  interest rate forecasts.  Actual results are
compared to budget in terms of growth and income.  A yield and cost  analysis is
done to monitor interest margin.  Various ratios are discussed including capital
ratios and liquidity.  The quality of the loan portfolio is reviewed in light of
the current  allowance.  The rate sensitivity  report is analyzed and strategies
are  created to attempt to produce  the desired  results.  The rate  sensitivity
report  describes  the  repricing  schedule  for  various  asset  and  liability
categories.

Interest Rate Sensitivity
<TABLE>
(dollars in thousands)                            0-3         4-12          1-5            5+
                                                Months       Months        Years         Years        Total
Assets:
<S>                                             <C>          <C>           <C>          <C>         <C>
   Loans...................................     $63,900      $33,366       $61,905      $ 6,774     $165,945
   Securities..............................       7,290       17,401         7,192       11,387       43,270
   Fed funds...............................       1,900                                                1,900
   Other assets............................      ______       ______        ______       18,253       18,253
      Total assets.........................     $73,090      $50,767       $69,097      $36,414     $229,368

Liabilities & Shareholders' Equity:
   Demand, Savings & NOW...................     $37,471      $13,620       $45,952      $28,452     $125,495
   Time....................................      19,570       34,157        25,647           53       79,427
   Other liabilities and equity............      ______       ______        ______       24,446       24,446
      Total liabilities and equity.........     $57,041      $47,777       $71,599      $52,951     $229,368

Rate sensitivity gap and ratios:
   Gap for period..........................     $16,049       $2,990       $(2,502)   $(16,537)
   Cumulative gap..........................      16,049       19,039        16,537

Cumulative rate sensitive ratio............        1.28         1.18          1.09         1.00
Dec. 31, 1997 rate sensitive ratio.........        1.27         1.16          1.09         1.00
</TABLE>
Given the asset  sensitive  position of the Bank at March 31, 1998,  if interest
rates  decrease 200 basis  points and  management  did not  respond,  management
estimates  that  annualized  net interest  income would  decrease  approximately
$300,000,  while a similar  increase in rates would cause net interest income to
increase by a like amount.  As noted above,  the entire balance of savings,  NOW
and MMDAs is not  categorized  as 0-3 months,  although  they are variable  rate
products. Some of these balances are core deposits which are not considered rate
sensitive based on the Bank's historical experience and industry practice.
<PAGE>
<TABLE>
Provision for Loan Losses                                      First Quarter
(in thousands)                                               1998         1997
         <S>                                                 <C>          <C>
         Total                                               $150         $112
</TABLE>
The  provision  for loan losses  increased  $38,000 in the first quarter of 1998
compared to the prior year.  In March of 1998,  the allowance for loan loss as a
percent  of loans  was  2.13%,  down  from  2.39% a year  earlier,  and 2.15% at
December 31, 1997.  For the first three months of 1998,  the Bank had net charge
offs of $2,000, compared with net charge offs of $60,000 last year. Non-accrual,
past due 90 days,  and  renegotiated  loans  were .53% and 1.05% of total  loans
outstanding at March 31, 1998 and 1997  respectively  and .67% of total loans at
December 31, 1997.

Impaired  loans, as defined by Statement of Financial  Accounting  Standards No.
114,  Accounting by Creditors for  Impairment of a Loan,  totaled  approximately
$3,400,000 at March 31, 1998,  compared to $3,100,000 at December 31, 1997,  and
included non-accrual, and past due 90 days other than homogenous residential and
consumer  loans,  and an additional  $2,800,000 of commercial  loans  separately
identified as impaired.  A loan is considered  impaired when it is probable that
all or part of  amounts  due  according  to the  contractual  terms  of the loan
agreement  will  not be  collectable  on a timely  basis.  The  majority  of the
impaired balance relates to one borrower whose loan is well collateralized.  Any
loss that might occur from it is not  expected to have a material  impact on the
Company's financial condition or results of operation.

Management  assessment  of  the  allowance  for  loan  losses  is  based  on the
composition of the loan portfolio, an evaluation of specific credits, historical
loss  experience,  the level of  nonperforming  loans  and loans  that have been
identified as impaired. Externally, the local economy and events or trends which
might negatively impact the loan portfolio are also considered. Certain impaired
loans  with  a  balance  of  $3,300,000  had  specific  reserves  calculated  in
accordance with SFAS No. 114 of $400,000 at March 31, 1998.

Nonperforming  assets  are  loans for which the  accrual  of  interest  has been
discontinued,  accruing  loans 90 days or more past due in  payments,  and other
real estate which has been acquired primarily through foreclosure and is waiting
disposition.  The following  table describes  nonperforming  assets at March 31,
1998 compared to December 31, 1997.  Loans  categorized  as ninety days past due
and still accruing are well secured and in the process of collection.
<TABLE>
Nonperforming Assets                                         Quarter Ended                  Year Ended
(in thousands)                                                March 31, 1998             December 31, 1997
<S>                                                              <C>                         <C>
Non-accrual loans                                                 $713                         $809
90 days or more past due and still accruing                        168                          249
         Total nonperforming loans                                 881                        1,058
Other real estate                                                  336                            0
         Total nonperforming assets                             $1,217                       $1,058

Nonperforming loans as a percent of total loans                   .53%                         .67%
Nonperforming assets as a percent of total loans                  .73%                         .67%
Nonperforming loans as a percent of the loan loss reserve          25%                          31%
</TABLE>
<PAGE>
The following  table sets forth loan balances and  summarizes the changes in the
allowance for loan losses for the first three months of 1998 and 1997.
<TABLE>
                                                       Year to date          Year to date
Loans:                                                 March 31, 1998       March 31, 1997

   (dollars in thousands)
<S>                                                       <C>              <C>
   Average daily balance of loans for the year to date    163,176          137,484
   Amount of loans, net of unearned income,
   outstanding at the end of the quarter .............    167,026          141,490
Allowance for loan losses:
   Balance at beginning of year ......................      3,424            3,335

   Loans charged off:

      Real Estate Mortgage ...........................          0                0
      Commercial .....................................         11               39
      Consumer .......................................          5               45
         Total charge-offs ...........................         16               84
   Recoveries of loans previously charged off:
      Real Estate Mortgage ...........................          0                1
      Commercial .....................................          6               13
      Consumer .......................................          8               10
         Total recoveries ............................         14               24


Net loans charged off ................................          2               60

Additions to allowance charged to operations .........        150              112
         Balance at end of quarter ...................   $  3,572         $  3,387

Ratios:
  Net loans charged off (annualized) to average
  loans outstanding ..................................        .01%            .17%
  Allowance for loan losses to loans outstanding .....       2.13%           2.39%
</TABLE>

Nonperforming  loans have decreased in 1998 compared to the prior year, although
non-performing  assets  have  increased  due to the  foreclosure  of a piece  of
commercial real estate.  Management is pursuing sale of this property. Loans are
generally placed on a nonaccrual basis when principal or interest is past due 90
days or more  and  when,  in the  opinion  of  management,  full  collection  of
principal and interest is unlikely.
<TABLE>
Non-interest Income                                                   First Quarter
(in thousands)                                                     1998          1997
<S>                                                                <C>           <C>
Total                                                              $448          $428
</TABLE>
<PAGE>
Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  other operating  income,  and gain(loss) on sale of assets,  increased by
nearly  $20,000 (5%) in the first quarter of 1998 compared to the same period in
the previous year.  Service  charge income  declined  slightly.  Gains from loan
sales  increased  more than $20,000  (57%).  The volume of loans sold was nearly
identical but the rate of return was better in the low interest rate environment
of this year.
<TABLE>
Non-interest Expense                                              First Quarter
(in thousands)                                                 1998          1997
<S>                                                            <C>          <C>
Total                                                          $1,869       $1,599
</TABLE>

Non-interest  expense  increased  $270,000  (17%) in the first  quarter  of 1998
compared  to the same  period  last year.  Contributing  to this  increase  were
increases  of $125,000  (14%) in salaries  and  benefits,  and an  approximately
$142,000  increase in other  expense.  There was a slight  decrease in occupancy
expense and a slight increase in equipment expense which offset each other. Both
building and equipment expenses are expected to increase as the year progresses.
Building  cost  will  increase  as a new  branch  is  constructed  in  Brighton.
Equipment  cost will escalate as the Bank's core computer  system is changed and
an extensive local and wide area network is engineered.  Salaries  increased due
to normal  salary  increases and because the Bank added a Trust  Department.  In
other expense, advertising expense is $35,000 higher than last year due to costs
related to producing  television ads.  Computer  service fees increased  $30,000
over last year due to costs related to implementing a new computer system.
<TABLE>
Income Tax Expense                                                  First Quarter
(in thousands)                                                    1998         1997
         <S>                                                      <C>          <C>
         Total                                                    $405         $385
</TABLE>       

Fluctuations  in income taxes  resulted  primarily  from changes in the level of
profitability and in variations in the amount of tax-exempt income.
<TABLE>
Capital (in thousands)                                March 31, 1998                 December 31, 1997
<S>                                                   <C>                            <C>
Shareholders' Equity*                                 $22,380                        $21,717
Ratio of Equity to Total Assets                        9.76%                          9.60%
</TABLE>
*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial  Accounting  Standards  No. 115 amounting to $12,000 at March 31, 1998
and $15,000 at December 31, 1997.
<PAGE>
A financial institution's capital ratio is looked upon by the regulators and the
public as an indication of its soundness.  Shareholders'  equity,  excluding the
securities valuation adjustment,  increased $663,000 (3%) during the first three
months of the year.  This  increase  was the result of net income  earned by the
company reduced by dividends paid of $283,500.

The Federal  Reserve Board provides  guidelines  for the  measurement of capital
adequacy. The Bank's capital, as adjusted under these guidelines, is referred to
as risk-based  capital.  The Bank's Tier 1 risk-based capital ratio at March 31,
1998 was 12.73%,  and total  risk-based  capital  was 13.98%.  At March 31, 1997
these  ratios were 14.95% and 16.20%  respectively.  Minimum  regulatory  Tier 1
risk-based and total  risk-based  capital ratios under the Federal Reserve Board
guidelines are 4% and 8% respectively.

The capital guidelines also provide for a standard to measure risk-based capital
to total assets which is called the leverage  ratio.  The Bank's  leverage ratio
was 9.18% at March 31, 1998 and 10.01% in 1997.  The minimum  standard  leverage
ratio is 3% but financial institutions are expected to maintain a leverage ratio
1 to 2 percentage points above the 3% minimum.

In the first quarter,  the Company has spent approximately  $800,000 on hardware
and software and will likely spend an additional  $500,000 on various technology
needs as the year  progresses.  In addition,  the Bank is requesting  regulatory
approval to establish a new branch in the northwest  part of Brighton.  Included
in other  assets is  approximately  $1,000,000  paid for an option to purchase a
tract of land in northwest Brighton. In June the Company is expected to exercise
the option to  purchase  18 acres of land on which the  facility  will be built.
Exercise of the option will cost the Company  $3,000,000.  The Company currently
has listed for sale a substantial portion of the acreage. These projects will be
financed from internally generated funds.


Year 2000 issues are an important focus of management's  attention.  The Bank is
highly  dependent on technology  and several  applications  are dependent on the
software's ability to make the transition to the Year 2000. The Bank has hired a
consultant  who has  recommended  actions  related  to Year 2000  compliance.  A
committee is in the process of implementing  these steps at this time.  Software
that is Year 2000  sensitive  has been  identified.  Testing is ongoing and will
continue  into the  second  and  third  quarter  of this  year.  Other  than the
technology  investments  mentioned  above,  management  does  not  believe  that
compliance with Year 2000 will have a material effect on the Company's financial
condition.  The Bank has analyzed  significant  vendors and customers  Year 2000
readiness  and has  determined  that any failures  they may have will not have a
material effect on the Company.

Accounting Standards
In June 1997, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial Accounting  Standards No. 130 Reporting  Comprehensive Income (SFAS
130). SFAS 130 establishes standards for reporting and displaying  comprehensive
income and its  components,  including  but not limited to  unrealized  gains or
losses on  securities  available for sale,  in the  financial  statements.  This
statement  was  effective for both interim and annual  periods  beginning  after
December  15,  1997  with  earlier  application  permitted.  SFAS  130  requires
reclassification of all prior period amounts.
<PAGE>
In June 1997, the FASB issued  Statement of Financial  Accounting  Standards No.
131,  Disclosures about Segments of an Enterprise and Related  Information (SFAS
131).  SFAS 131  establishes  standards for the way that public  entities report
information about operating segments in financial statements.  This statement is
effective for annual  reporting for 1998 calendar year  entities.  Although this
statement  applies to interim  financial  statements,  interim  reporting is not
required in the initial year of application.

In February 1998, the FASB issued  Statement of Financial  Accounting  Standards
No. 132, Employers' Disclosures about Pensions and Other Postretirement Benefits
(SFAS 132).  SFAS 132 revises  employers'  disclosures  about  pension and other
postretirement benefit plans. SFAS 132 standardizes the disclosure  requirements
for pensions and other postretirement benefits,  requires additional information
on  changes in the  benefit  obligations  and fair  values of plan  assets,  and
eliminates  certain  disclosures.  This  Statement is effective for fiscal years
beginning after December 15, 1997, with earlier adoption encouraged. Restatement
of  disclosures  for  earlier  periods  provided  for  comparative  purposes  is
required.
<PAGE>
                           PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

       There are none applicable.

(b) Reports on Form 8-K:
       There were no reports on Form 8-K filed during the first quarter of 1998.
<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 March 31, 1998 to be signed on its behalf by the undersigned hereunto duly
authorized.


                  FNBH BANCORP, INC.



                  /s/ Barbara D. Martin
                  Barbara D. Martin
                  President and Chief Executive Officer




                  /s/ Barbara J. Nelson
                  Barbara J. Nelson
                  Secretary/Treasurer




DATE:  May 8, 1998