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 June 30, 2000
                                       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:  1,565,203  shares of the Company's  Common
Stock (no par value) were outstanding as of June 30, 2000.

                                       1
<PAGE>
                                      INDEX


                                                                           Page
                                                                          Number
Part I.  Financial Information (unaudited):

         Item 1.
         Interim Financial Statements:
         Consolidated Balance Sheet as of June 30, 2000 and Dec. 31, 1999......4
         Consolidated Statements of Income, three months ended
         June 30, 2000 and 1999, and six months ended  June 30, 2000
         and 1999..............................................................5
         Consolidated Statement of Stockholders' Equity and Comprehensive
         Income for three months ended June 30, 2000 and 1999..................6
         Consolidated Statement of Stockholders' Equity and Comprehensive
         Income for six months ended June 30, 2000 and 1999....................7
         Consolidated Statements of Cash Flows for six months ended
         June 30, 2000 and 1999................................................8
         Notes to Interim Consolidated Financial Statements....................9

         Item 2.
         Management's Discussion and Analysis of
         Financial Condition and Results of Operations........................10

         Item 3.
         Quantitative and Qualitative Disclosures about Market Risk...........20

Part II. Other Information

         Item 4...............................................................20

         Item 6...............................................................21

         Signatures...........................................................21


                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.
Financial Statements
Unaudited interim consolidated financial statements follow.











                                       3
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Balance Sheets (unaudited)                                             June 30       December 31
---------------------------                                                            2000              1999
Assets                                                                                 ----              ----
<S>                                                                             <C>             <C>
Cash and due from banks                                                          $13,243,306    $ 12,113,652
Short term investments                                                               112,825      12,300,630
   Total cash and cash equivalents                                                13,356,131      24,414,282

Investment securities held to maturity, net (fair value of $18,699,000
   at June 30, 2000 and $17,650,000 at Dec. 31, 1999)                             18,897,623      17,709,401
Investment securities available for sale, at fair value                           27,593,410      32,554,004
Mortgage-backed securities held to maturity, net (fair value of
   $823,000 at June 30, 2000 and $330,000 at Dec. 31, 1999)                          826,120         334,451
                                                                                     -------         -------
      Total investment securities                                                 47,317,153      50,597,856

Loans:
   Commercial                                                                    190,229,101     163,469,045
   Consumer                                                                       29,033,510      24,826,156
   Real estate mortgages                                                          24,764,255      22,360,282
                                                                                  ----------      ----------
      Total loans                                                                244,026,866     210,655,483
   Less unearned income                                                              816,919         703,849
   Less allowance for loan losses                                                  4,854,012       4,483,283
                                                                                   ---------       ---------
      Net loans                                                                  238,355,935     205,468,351

Premises and equipment - net                                                       8,631,460       9,009,661
Land available for sale - net                                                      2,780,290       2,835,290
Accrued interest and other assets                                                  4,310,782       4,093,780
                                                                                   ---------       ---------
      Total assets                                                              $314,751,751    $296,419,220
                                                                                ============    ============
Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                  $ 54,393,455    $ 47,980,695
   NOW                                                                            28,525,550      34,645,921
   Savings and money market                                                       90,386,918      89,862,739
   Time                                                                          103,125,982      96,701,098
                                                                                 -----------      ----------
      Total deposits                                                             276,431,905     269,190,453

Short term borrowing                                                               2,850,000               0
Notes payable                                                                      6,000,000               0
Accrued interest, taxes, and other liabilities                                     2,446,176       1,917,121
                                                                                   ---------       ---------
      Total liabilities                                                          287,728,081     271,107,574

Stockholders' Equity
Common stock, no par value.  Authorized 4,200,000 shares; 1,565,203
shares issued and outstanding at June 30, 2000 and Dec. 31, 1999                   4,919,280       4,919,280
Retained earnings                                                                 22,367,336      20,723,357
Unearned management retention plan                                                  (118,576)       (139,597)
Accumulated other comprehensive loss, net                                           (144,370)       (191,394)
                                                                                   ---------       ---------
      Total stockholders' equity                                                  27,023,670      25,311,646
      Total liabilities and stockholders' equity                                $314,751,751    $296,419,220
                                                                                ============    ============
</TABLE>
   See notes to interim consolidated financial statements

                                       4
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Statements of Income
---------------------------------                            Three Months Ended June         Six Months Ended June
Unaudited                                                         2000          1999            2000          1999
                                                                  ----          ----            ----          ----
<S>                                                          <C>           <C>            <C>            <C>
Interest income:
   Interest and fees on loans                                $5,635,956    $4,437,173     $10,742,895    $8,770,045
   Interest and dividends on investment securities:
      U.S. Treasury and agency securities                       388,893       358,103         844,212       686,020
      Obligations of state and political subdivisions           228,647       204,757         449,434       412,500
      Other securities                                           18,443        16,687          34,311        29,771
   Interest on short term investments                            30,425       115,580          85,227       320,391
                                                                 ------       -------          ------       -------
      Total interest income                                   6,302,364     5,132,300      12,156,079    10,218,727
                                                              ---------     ---------      ----------    ----------
Interest expense:
   Interest on deposits                                       2,265,152     1,951,423       4,469,216     3,888,173
   Other interest expense                                       111,515           203         157,707           904
                                                                -------           ---         -------           ---
      Total interest expense                                  2,376,667     1,951,626       4,626,923     3,889,077
                                                              ---------     ---------       ---------     ---------
      Net interest income                                     3,925,697     3,180,674       7,529,156     6,329,650

Provision for loan losses                                       300,000       210,000         600,000       420,000
                                                                -------       -------         -------       -------
      Net interest income after provision for loan losses     3,625,697     2,970,674       6,929,156     5,909,650
                                                              ---------     ---------       ---------     ---------
Non-interest income:
   Service charges                                              543,076       527,354         994,848       794,692
   Gain (loss) on sale of loans                                  17,751       (49,417)         33,994        10,062
   Trust income                                                  47,364        33,667          91,659        67,954
   Other                                                          6,714        31,517          11,061        26,643
                                                                  -----        ------          ------        ------
      Total non-interest income                                 614,905       543,121       1,131,562       899,351
                                                                -------       -------       ---------       -------
Non-interest expense:
   Salaries and employee benefits                             1,322,489     1,161,980       2,671,116     2,321,422
   Net occupancy                                                174,400       181,316         364,210       347,369
   Equipment expense                                            229,461       185,695         461,960       300,774
   Fees                                                          96,810       111,339         159,773       259,444
   Printing and supplies                                         66,172        80,075         128,396       143,675
   Michigan Single Business Tax                                  60,300        47,300         120,500        98,900
   Other                                                        535,562       579,818         958,903     1,026,968
                                                                -------       -------         -------     ---------
      Total non-interest expense                              2,485,194     2,347,523       4,864,858     4,498,552
                                                              ---------     ---------       ---------     ---------

Income before federal income taxes                            1,755,408     1,166,272       3,195,860     2,310,449

Federal income taxes                                            515,000       343,900         925,800       660,900
                                                                -------       -------         -------       -------
      Net income                                             $1,240,408      $822,372      $2,270,060    $1,649,549
                                                             ==========      ========      ==========    ==========
Per share statistics*
   Basic EPS                                                       $.79          $.53           $1.45         $1.06
   Diluted EPS                                                     $.79          $.53           $1.45         $1.06
   Dividends                                                       $.20          $.20            $.40          $.40
</TABLE>
*Based on 1,565,203 average shares  outstanding during the period ended June 30,
2000 and 1,562,768 average shares  outstanding  during the period ended June 30,
1999.
See notes to interim consolidated financial statements.

                                       5
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
     Consolidated Statement of Stockholders' Equity and Comprehensive Income
                For the Three Months Ended June 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
                                                                                       Unearned        Accumulated
                                                                                      Management          Other
                                                          Common        Retained      Retention       Comprehensive
                                                           Stock        Earnings         Plan         Income (loss)        Total
                                                           -----        --------         ----         -------------        -----
<S>                                                       <C>           <C>            <C>              <C>               <C>
Balances at March 31, 1999                                $4,821,775    19,243,412     (66,220)          (46,804)        23,952,163
Net income                                                                 822,372                                          822,372
Change in unrealized loss on debt securities
   available for sale, net of tax effect                                                                (123,158)          (123,158)
                                                                                                                          ---------
Total comprehensive income                                                                                                  699,214
Shares issued for employee awards                                105                                                            105
Cash dividends (20(cent)per share)                                        (312,553)                                        (312,553)
                                                          ----------    ----------     -------         ---------         ----------
Balances at June 30, 1999                                 $4,821,880    19,753,231     (66,220)         (169,962)        24,338,929
                                                          ==========    ==========     =======         =========         ==========
</TABLE>
See notes to interim consolidated financial statements
<TABLE>

                                                                                       Unearned        Accumulated
                                                                                      Management          Other
                                                          Common        Retained    Retention Plan    Comprehensive
                                                           Stock        Earnings                      Income (loss)        Total
                                                           -----        --------    --------------    -------------        -----
<S>                                                       <C>           <C>           <C>               <C>              <C>
Balances at March 31, 2000                                $4,919,280    21,439,969    (127,585)         (188,258)        26,043,406
Net income                                                               1,240,408                                        1,240,408
Change in unrealized loss on debt
securities                                                                                                43,888             43,888
                                                                                                                             ------
available for sale, net of tax effect
Total comprehensive income                                                                                                1,284,296
Amortization of management retention plan                                                9,009                                9,009
Cash dividends (20(cent)per share)                                        (313,041)                                        (313,041)
                                                          ----------    ----------    --------         ---------         ----------
Balances at June 30, 2000                                 $4,919,280    22,367,336    (118,576)         (144,370)        27,023,670
                                                          ==========    ==========    ========         =========         ==========
</TABLE>
                                       6
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
     Consolidated Statement of Stockholders' Equity and Comprehensive Income
                 For the Six Months Ended June 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
                                                                                       Unearned        Accumulated
                                                                                      Management          Other
                                                          Common        Retained      Retention       Comprehensive
                                                           Stock        Earnings         Plan         Income (loss)        Total
                                                           -----        --------         ----         -------------        -----
<S>                                                       <C>           <C>            <C>            <C>                <C>
Balances at December 31, 1998                             $4,821,775    18,728,787      (66,220)        12,191           23,496,533
Net income                                                               1,649,549                                        1,649,549
Change in unrealized gain (loss) on debt securities
   available for sale, net of tax effect                                                              (182,153)            (182,153)
                                                                                                                          ---------
Total comprehensive income                                                                                                1,467,396
Shares issued for employee awards                                105                                                            105
Cash dividends (40(cent)per share)                                        (625,105)                                        (625,105)
                                                          ----------    ----------      -------       --------           ----------
Balances at June 30, 1999                                 $4,821,880    19,753,231      (66,220)      (169,962)          24,338,929
                                                          ==========    ==========      =======       ========           ==========
</TABLE>
See notes to interim consolidated financial statements
<TABLE>

                                                                                       Unearned        Accumulated
                                                                                      Management          Other
                                                          Common        Retained    Retention Plan    Comprehensive
                                                           Stock        Earnings                      Income (loss)        Total
                                                           -----        --------    --------------    -------------        -----
<S>                                                       <C>           <C>            <C>            <C>                <C>
Balances at December 31, 1999                             $4,919,280    20,723,357     (139,597)      (191,394)          25,311,646
Net income                                                               2,270,060                                        2,270,060
Change in unrealized loss on debt
securities                                                                                              47,024               47,024
                                                                                                                             ------
available for sale, net of tax effect
Total comprehensive income                                                                                                2,317,084
Amortization of management retention plan                                                21,021                              21,021
Cash dividends (40(cent)per share)                                        (626,081)                                        (626,081)
                                                          ---------     ----------     --------       --------           ----------
Balances at June 30, 2000                                 $4,919,280    22,367,336     (118,576)      (144,370)          27,023,670
                                                          ==========    ==========     ========       ========           ==========
</TABLE>

                                       7
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Statements of Cash Flows
Unaudited                                                                         Six months ended June 30
                                                                                        2000            1999
                                                                                        ----            ----
<S>                                                                             <C>              <C>
Cash flows from operating activities:
   Net income                                                                     $2,270,060     $ 1,649,549
   Adjustments to reconcile net income to net cash provided by
   operating activities:
      Provision for loan losses                                                      600,000         420,000
      Depreciation and amortization                                                  468,565         319,100
      Net amortization on investment securities                                       25,202          42,615
      Earned portion of management retention plan                                     21,021               0
      Loss on disposal of equipment                                                        0          18,360
      Gain on sale of loans                                                          (33,994)        (10,062)
      Proceeds from sale of loans                                                  2,719,233       8,244,550
      Origination of loans held for sale                                          (3,068,216)     (9,086,850)
      Increase in accrued interest income and other assets                          (162,002)       (384,796)
      Increase in accrued interest, taxes, and other liabilities                     504,855          80,413
                                                                                     -------          ------
         Net cash provided by operating activities                                 3,344,724       1,292,879
                                                                                   ---------       ---------
Cash flows from investing activities:
   Purchases of available for sale securities                                     (5,982,298)    (14,167,570)
   Proceeds  from maturities and calls of available for sale securities           11,000,000       2,000,000
   Purchases of held to maturity securities                                       (2,496,205)     (1,587,420)
   Proceeds from maturities and calls of held to maturity securities                 605,000       3,868,000
   Proceeds from mortgage-backed securities paydowns-held to maturity                200,228         277,040
   Net increase in loans                                                         (33,104,607)    (14,793,481)
   Capital expenditures                                                              (90,364)     (1,359,545)
                                                                                    --------     -----------
         Net cash used in investing activities                                   (29,868,246)    (25,762,976)
                                                                                ------------    ------------
Cash flows from financing activities:
   Net increase in deposits                                                        7,241,452      14,287,097
   Net increase in borrowings                                                      8,850,000               0
   Dividends paid                                                                   (626,081)       (625,105)
                                                                                   ---------       ---------
         Net cash provided by financing activities                                15,465,371      13,661,992
                                                                                  ----------      ----------

Net decrease in cash and cash equivalents                                        (11,058,151)    (10,808,105)

Cash and cash equivalents at beginning of year                                    24,414,282      31,238,662
                                                                                  ----------      ----------
Cash and cash equivalents at end of period                                       $13,356,131     $20,430,557
                                                                                 ===========     ===========
Supplemental disclosures:
   Interest paid                                                                 $ 4,671,297     $ 4,000,724
   Federal income taxes paid                                                         850,000         752,000
   Loans charged off                                                                 268,947         233,386
</TABLE>
See notes to interim consolidated financial statements

                                       8
<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 June 30,  2000,  and
consolidated  results of  operations  for the three  months and six months ended
June 30, 2000 and 1999 and consolidated cash flows for the six months ended June
30, 2000 and 1999.

2. The results of operations  for the three months and six months ended June 30,
2000 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 1999 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  $1,680,000 at June 30, 2000,  $2,115,000
at June  30,  1999,  and  $177,000  at  December  31,  1999.  (See  Management's
Discussion and Analysis of financial condition and results of operations).

6. Basic and  dilutive  earnings  per share (EPS) are  computed by dividing  net
income by the respective weighted average common shares outstanding.
<TABLE>
                                                   Second Quarter                     Year to Date
                                                       2000            1999             2000            1999
                                                       ----            ----             ----            ----
<S>                                              <C>              <C>             <C>             <C>
Net income                                       $1,240,408        $822,372       $2,270,060      $1,649,549

Shares outstanding (basic)                        1,565,203       1,562,768        1,565,203       1,562,768
Dilutive shares                                           0               0                0               0
                                                  ---------       ---------        ---------       ---------
   Shares outstanding (diluted)                   1,565,203       1,562,768        1,565,203       1,562,768
Earnings per share:
   Basic EPS                                           $.79            $.53            $1.45           $1.06
   Diluted EPS                                         $.79            $.53            $1.45           $1.06
</TABLE>
                                       9
<PAGE>
Item 2.

                      Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                          Interim Financial Statements

This report includes certain forward-looking  statements,  within the meaning of
the Private  Securities  Litigation  Reform Act of 1995,  that involve  inherent
risks and  uncertainties.  A number of  important  factors  could  cause  actual
results to differ materially from those in the forward-looking statements. Those
factors include the economic environment,  competition,  products and pricing in
business areas in which FNBH Bancorp,  Inc. (the Company)  operates,  prevailing
interest  rates,  changes  in  government  regulations  and  policies  affecting
financial  service  companies,   credit  quality  and  credit  risk  management,
acquisitions and integration of acquired businesses.

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 and six months ended June 30, 2000 and 1999, and
also  provides  information  relating  to  the  Company's  financial  condition,
focusing on its liquidity and capital resources.
<TABLE>
Earnings  (in thousands                       Second Quarter                              Year-to-Date
except per share data)                      2000         1999                            2000      1999
                                            ----         ----                            ----      ----
<S>                                        <C>           <C>                           <C>        <C>
Net income                                 $1,240         $822                         $2,270     $1,650
Net Income per Share                        $ .79        $ .53                          $1.45      $1.06
</TABLE>

Net income for the three  months  ended June 30,  2000  increased  approximately
$418,000 (51%) from that reported for the same period last year.  Second quarter
1999 income was hampered by costs related to a computer conversion. Contributing
to the  increased  earnings  in the  second  quarter of 2000 were  increases  of
$745,000 (23%) in net interest income and $72,000 (13%) in non-interest  income.
The  increase  in net  interest  income was the result of overall  growth in the
Bank's net interest  earning  assets as well as a 32 basis point increase in the
tax equivalent interest margin. Partially offsetting these favorable occurrences
were increases in the loan loss provision of $90,000 (43%), non-interest expense
of $137,000 (6%), and the federal tax provision of $171,000 (50%).

Net income for the first half of the year  increased  $620,000 (38%) compared to
the same period last year.  Earnings in the first half of 1999 were  hindered by
computer  conversion  costs as well as those  related to Year 2000 testing which
were primarily  incurred in the first quarter of the year.  Contributing to 2000
earnings  were an  increase  of  $1,199,000  (19%) in net  interest  income  and
$233,000 (26%) in non-interest income. Partially offsetting these increases were
increases in expenses of $366,000 (8%) in non-interest

                                       10
<PAGE>
expense,  $180,000  (43%) in the loan  loss  provision,  and  $265,000  (40%) in
federal tax accruals.
<TABLE>
Net Interest Income                                  Second Quarter                          Year-to-Date
(in thousands)                                      2000         1999                     2000        1999
                                                    ----         ----                     ----        ----
<S>                                               <C>          <C>                      <C>          <C>
Interest Income                                   $6,302       $5,132                   $12,156      $10,219
Interest Expense                                   2,376        1,951                     4,627        3,889
                                                  ------        -----                     -----        -----
Net Interest Income                              $ 3,926       $3,181                    $7,529       $6,330
</TABLE>

The following table illustrates some of the significant factors  contributing to
the increase in net interest income for the period and for the year to date.
<TABLE>
                                     TABLE 1
                    INTEREST YIELDS AND COSTS (in thousands)
                             June 30, 2000 and 1999

                                               ---------------Second Quarter Averages----------------
                                                      2000                                1999
                                                      ----                                ----
                                         Average                              Average
                                         Balance     Interest     Rate        Balance     Interest      Rate
                                         -------     --------     ----        -------     --------      ----
<S>                                      <C>         <C>          <C>        <C>           <C>          <C>
Assets:
Short term investments                   $ 1,862       $ 30.4     6.46%      $ 10,061      $ 114.8      4.52%
Securities:  Taxable                      30,048        407.4     5.42%        29,821        375.8      5.04%
             Tax-exempt(1)                18,559        314.6     6.78%        16,487        285.0      6.91%
Loans(2)(3)                              233,139      5,673.6     9.63%       196,213      4,497.0      9.07%
                                        --------     --------                --------     --------
Total earning assets/total
interest income                          283,608     $6,426.0     8.97%       252,582     $5,272.6      8.27%
                                                     --------                             --------
Cash & due from banks                     11,877                               11,285
All other assets                          16,091                               14,750
Allowance for loan loss                   (4,867)                              (4,201)
                                        --------                             --------
   Total assets                         $306,709                             $274,416
                                        ========                             ========
Liabilities and
  Stockholders' Equity
Interest bearing deposits:
Savings & NOW accounts                  $120,168      $ 854.7     2.85%     $ 105,078      $ 692.7      2.64%
Time                                      99,901      1,410.5     5.66%        94,108      1,258.7             5.36%
Fed funds purchased                          597         11.5     7.61%            11           .2      7.23%
FHLB Notes                                 5,433        100.0     7.28%             0            0
                                           -----        -----                   -----        -----
Total interest bearing
liabilities/total interest expense       226,099    $ 2,376.7     4.21%       199,197     $1,951.6      3.93%
                                                    ---------                             --------
Non-interest bearing deposits             51,329                               48,806
All other liabilities                      2,589                                2,164
Stockholders' Equity                      26,692                               24,249
                                         -------                              -------
Total liabilities and
   shareholders' equity                 $306,709                             $274,416
                                        ========                             --------
Interest spread                                                   4.76%                                 4.34%
                                                                  =====                                 =====
Net interest income-FTE                             $ 4,049.3                            $ 3,321.0
                                                    =========                            =========
Net interest margin                                               5.62%                                 5.17%
                                                                  =====                                 =====
</TABLE>
                                       11
<PAGE>
(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-accruing  loans are included in
    the average daily loan balances.
(3) Interest on loans includes origination
    fees totaling $177,000 in 2000 and $139,000 in 1999.
<TABLE>
                                              ----------------Year to Date Averages-----------------
                                                        2000                              1999
                                                        ----                              ----
                                        Average                               Average
                                        Balance       Interest     Rate       Balance     Interest      Rate
                                        -------       --------     ----       -------     --------      ----
<S>                                     <C>           <C>         <C>        <C>          <C>          <C>
Assets:
Short term investments                  $ 2,915        $  85.2    5.78%      $ 13,694      $ 319.6     4.64%
Securities:  Taxable                     33,008          878.5    5.34%        28,273        716.5     5.11%
             Tax-exempt (1)              18,263          619.4    6.78%        16,475        573.8     6.97%
Loans(2)(3)                             225,192       10,807.4    9.51%       190,346      8,780.6     9.19%
                                        -------       --------                -------     --------
Total earning assets/total
interest income                         279,378     $ 12,390.5    8.80%       248,788    $10,390.5     8.33%
                                                    ----------                           ---------
Cash & due from banks                    11,060                                12,299
All other assets                         16,220                                15,593
Allowance for loan loss                 (4,728)                               (4,121)
   Total assets                        $301,930                              $272,559
                                       ========                              ========
Liabilities and
  Stockholders' Equity
Interest bearing deposits:
Savings & NOW accounts                 $121,067      $ 1,714.9    2.84%      $105,773    $ 1,406.1     2.68%
Time                                     98,938        2,754.3    5.58%        92,734      2,482.1     5.40%
Purchased funds                             667           20.1    5.97%            37           .9     4.86%
FHLB Notes                                3,775          137.6    7.21%             0            0
                                          -----          -----                  -----        -----
Total interest bearing
liabilities/total interest expense      224,447      $ 4,626.9    4.13%       198,544     $3,889.1     3.95%
                                                     ---------                            --------
Non-interest bearing deposits            48,507                                48,154
All other liabilities                     2,755                                 1,924
Stockholders' Equity                     26,221                                23,937
                                        -------                               -------
Total liabilities and
  shareholders' equity                 $301,930                             $ 272,559
                                       ========                             =========
Interest spread                                                   4.67%                                4.38%
                                                                  =====                                =====
Net interest income-FTE                               $7,763.6                            $6,501.4
                                                      ========                            ========
Net interest margin                                               5.48%                                5.18%
                                                                  =====                                =====
</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  computations above, non-accruing loans are included in
    the average daily loan balances.
(3) Interest  on loans  includes  origination fees totaling $325,000 in 2000 and
    $268,000 in 1999.

                                       12
<PAGE>
Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased approximately $1,153,000 in
the second quarter of 2000 compared to that of 1999. A $37,000,000  (19%) growth
in average loan balances  accompanied  by a 56 basis point  increase in interest
yields on those loans generated the net interest income growth.

In the second quarter,  tax equivalent income on short and long term investments
decreased   approximately   $23,000  because  the  average  balances   decreased
$6,000,000 although the rate earned increased 46 basis points.

For the  first  half of the  year,  tax  equivalent  interest  income  increased
$2,000,000.  Loan interest income increased $2,027,000, with average balances up
$35,000,000  (18%)  and  yields  up 32  basis  points.  The  growth  in the loan
portfolio was primarily in commercial loans which increased $31,500,000 (18%) on
average,  while consumer  loans  increased  $3,600,000  (15%) and mortgage loans
decreased  $900,000.  The Bank's  resources in the loan department are primarily
deployed  making  commercial  loans.  Contributing  to the lack of growth in the
mortgage  loan  portfolio is the Bank's  policy of selling  fixed rate  mortgage
loans.  Additionally,  higher interest rates have dampened demand. The Bank sold
approximately $1,900,000 mortgage loans to the secondary market during the first
half of 2000, compared to $7,700,000 in the first half of 1999.

For the first six months of the year,  income on short and long term investments
decreased  $27,000 from that earned the prior year due to a $4,300,000  decrease
in average balances although the yields increased by 33 basis points.

Interest Bearing Liabilities/Interest Expense
In the second quarter of 2000,  interest  expense  increased  $425,000 due to an
increase in average  balances of $26,900,000 and in the interest rate paid by 28
basis  points.  Savings and NOW  interest  expense  increased  $162,000  because
balances increased $15,000,000 and rates increased 21 basis points.  Interest on
time deposits  increased  $152,000 in the second  quarter of 2000 over the prior
year. Balances increased  $5,800,000 and the rate paid increased 30 basis points
compared  to that of 1999.  The  deposit  growth  was the  result of the  Bank's
marketing efforts to increase its share of Livingston County deposits.

In the first half of the year,  interest  expense was  $738,000  higher than the
previous year due to average balances of interest bearing liabilities increasing
$25,900,000  and the average  rate  increased 18 basis  points.  Savings and NOW
interest expense increased $309,000 because balances  increased  $15,300,000 and
the interest rate increased 16 basis points. Interest on time deposits increased
$272,000  because the balance  increased  $6,200,000  and the rate  increased 18
basis points.

Additionally  the Bank's  interest  costs  increased due to borrowings  from the
Federal  Home  Loan  Bank.  The Bank has two  loans,  each for  $3,000,000.  One
borrowing  was  initiated  to match the  maturity of a fixed rate loan made to a
local  township.  The other  borrowing was intended to help with the Bank's rate
sensitivity position.  Interest

                                       13
<PAGE>
expense  related to these  loans  amounted  to $138,000 in the first half of the
year.  It is  reasonable to expect that part of future loan growth will continue
to be funded with FHLB borrowings.

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 targets a 15% liquidity ratio. For the first
six months of the year, the Bank's  liquidity  ratio averaged 16.58% although it
was 13.17% at June 30.  ALCO will  continue  to  monitor  this ratio as the year
progresses.

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  $24,400,000  at June 30, 2000 compared to  $22,400,000 at December 31, 1999,
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 half of
the year, short term investments averaged approximately $2,900,000. From time to
time the Bank will borrow Fed Funds from a correspondent bank. In addition,  the
Bank has a $16,000,000 line of credit available at the FHLB ($6,000,000 of which
has been  used,  as  mentioned  previously)  and the Bank  has  pledged  certain
mortgage loans and investment  securities as collateral for this  borrowing.  In
the event the Bank must borrow for an extended  period,  management  may look to
"available for sale" securities in the investment portfolio for liquidity.

In addition to liquidity issues,  ALCO discusses the Bank's  performance and 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.

Interest  rate  risk  is also  addressed  by  ALCO.  Interest  rate  risk is the
potential for economic losses due to future rate changes and can be reflected as
a loss of future net interest  income and/or loss of current market values.  The
objective  is to  measure  the effect on net  interest  income and to adjust the
balance sheet to minimize the inherent risk while, at the same time,  maximizing
income.  Tools used by management include the standard GAP report which lays out
the  repricing  schedule  for  various  asset and  liability  categories  and an
interest rate shock  simulation  report.  The Bank has no market risk  sensitive
instruments  held for trading  purposes.  The Bank does not enter into  futures,
forwards, swaps, or options to manage interest rate risk. However, the Bank is a
party to financial  instruments with off-balance sheet risk in the normal course
of business to meet

                                       14
<PAGE>
the financing needs of its customers including  commitments to extend credit and
letters of credit.  A commitment or letter of credit is not recorded as an asset
until the instrument is exercised.
<TABLE>
Interest Rate Sensitivity
(dollars in thousands)                              0-3         4-12           1-5           5+
                                                 Months       Months         Years        Years         Total
Assets:                                          ------       ------         -----        -----         -----
<S>                                             <C>          <C>          <C>           <C>          <C>
Loans..............................              $80,009      $37,612      $114,028      $12,378      $244,027
Securities.........................                5,813       13,194        16,487       11,823        47,317
Short term investments.............                  113                                                   113
Other assets.......................                                                       23,295        23,295
                                                 -------      -------      --------       ------        ------
      Total assets.................              $85,935      $50,806      $130,515      $47,496      $314,752

Liabilities & Stockholders' Equity:
   Demand, Savings & NOW...........              $55,679      $17,466       $67,287      $32,874      $173,306
   Time............................               32,156       52,243        18,101          626       103,126
   Other borrowings................                2,850          207         4,008        1,785         8,850
   Other liabilities and equity....                                                       29,470        29,470
                                                 -------      -------       -------       ------        ------
     Total liabilities and equity..              $90,685      $69,916       $89,396      $64,755      $314,752

Rate sensitivity gap and ratios:
   Gap for period..................              $(4,750)    ($19,110)      $41,119     $(17,259)
   Cumulative gap..................               (4,750)     (23,860)       17,259

Cumulative rate sensitive ratio....                  .95          .85          1.07         1.00
Dec. 31, 1999 rate sensitive ratio.                 1.06          .94          1.08         1.00
</TABLE>

In the preceding  table,  the entire  balance of savings,  MMDA, and NOW are 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.
<TABLE>
Provision for Loan Losses                           Second Quarter                            Year-to-Date
-------------------------
(in thousands)                                    2000         1999                         2000        1999
                                                  ----         ----                         ----        ----
         <S>                                      <C>          <C>                          <C>         <C>
         Total                                    $300         $210                         $600        $420
                                                  ====         ====                         ====        ====
</TABLE>
The provision for loan losses  increased  $90,000 in the second  quarter of 2000
compared to the prior year.  Year to date the provision has increased  $180,000.
The increase in the loan loss provision was deemed  appropriate  principally due
to an increase in impaired loans and related  allocations  of reserves  somewhat
offset by lower  average  delinquencies  other than  non-performers.  In June of
2000,  the allowance for loan loss as a percent of loans was 2.00%,  compared to
2.13% a year earlier and 2.13% at December 31, 1999. For the first six months of
2000,  the Bank had net charge  offs of  $229,000,  compared  to $105,000 in the
first half of 1999.  Non-accrual,  past due 90 days, and renegotiated loans were
 .69%  and  1.05%  of  total  loans  outstanding  at  June  30,  2000  and  1999,
respectively, and .08% of total loans at December 31, 1999.

                                       15
<PAGE>
Impaired loans, as defined by Statement of Financial Accounting Standards (SFAS)
No. 114, Accounting by Creditors for Impairment of a Loan, totaled approximately
$6,200,000  at June 30,  2000,  and included  non-accrual,  and past due 90 days
other  than  homogenous  residential  and  consumer  loans,  and  $4,700,000  of
commercial  loans  separately  identified  as impaired.  Impaired  loans totaled
$3,400,000  at December  31,  1999.  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 be  uncollectable  on a timely basis.  One of the loans,
for  $2,400,000  is  current  and  making  regular  payments,  however  the cash
generated  solely by the  business  is  currently  not  adequate  to cover  debt
service.  Another  loan,  for  $1,700,000,  is also  current but the  borrower's
financial  statements are weak.  Both loans are secured with first  mortgages on
commercial real estate.

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.  Impaired loans
had specific  reserves  calculated in accordance with SFAS No. 114 of $1,500,000
at June 30, 2000.

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 June 30, 2000
compared to December 31, 1999.
<TABLE>
Nonperforming Assets
(in thousands)                                                        June 30,2000        December 31, 1999
<S>                                                                   <C>                     <C>
Non-accrual loans                                                         $1,680              $  173
90 days or more past due and still accruing                                    0                   4
                                                                          ------                ----
         Total nonperforming loans                                         1,680                 177
Other real estate                                                              0                   0
                                                                          ------                ----
         Total nonperforming assets                                       $1,680              $  177

Nonperforming loans as a percent of total loans                             .69%                .08%
Nonperforming assets as a percent of total loans                            .69%                .08%
Loan loss reserve as a percent of nonperforming loans                       289%               2533%
</TABLE>

                                       16
<PAGE>
The following  table sets forth loan balances and  summarizes the changes in the
allowance for loan losses for the first six months of 2000 and 1999.
<TABLE>
                                                                       Year to date         Year to date
Loans:   (dollars in thousands)                                       June 30, 2000         June 30, 1999
                                                                      -------------         -------------
<S>                                                                       <C>                   <C>
   Average daily balance of loans for the year to date                    225,192               190,346
   Amount  of  loans,  net of  unearned  income,  outstanding  at
end of the quarter                                                        243,210               200,559
Allowance for loan losses:
   Balance at beginning of year                                             4,483                 3,958
   Loans charged off:
      Real estate                                                               0                     0
      Commercial                                                              233                   158
      Consumer                                                                 36                    75
                                                                               --                    --
         Total charge-offs                                                    269                   233
   Recoveries of loans previously charged off:
      Real estate                                                               0                    35
      Commercial                                                               18                    65
      Consumer                                                                 22                    28
                                                                               --                    --
         Total recoveries                                                      40                   128

Net loans charged off                                                         229                   105
Additions to allowance charged to operations                                  600                   420
                                                                             ----                   ---
         Balance at end of quarter                                         $4,854                $4,273

Ratios:
    Net loans charged off (annualized) to average
    loans outstanding                                                        .20%                  .11%
   Allowance for loan losses to loans outstanding                           2.00%                 2.13%
</TABLE>
<TABLE>
Non-interest Income                                       Second Quarter                            Year-to-Date
-------------------
(in thousands)                                           2000          1999                        2000         1999
                                                         ----          ----                        ----         ----
<S>                                                      <C>           <C>                       <C>            <C>
Total                                                    $615          $543                      $1,132         $899
                                                         ====          ====                      ======         ====
</TABLE>
Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  trust fees,  other operating  income,  and gain (loss) on sale of assets,
increased by $72,000  (13%) in the second  quarter of 2000  compared to the same
period in the previous  year.  The most  significant  increase was in gains from
loan sales.  In the second  quarter of 1999,  the Bank had a net loss of $49,000
related to loan sales.  This year's $18,000 gain resulted in a $67,000  increase
year to year.  Partially  offsetting  this  increase  was a $22,000  decrease in
"other"  non-interest  income. Last year this number was unusually high due to a
gain on the sale of repossessed property.

                                       17
<PAGE>
For the year,  non-interest  income  increased  $233,000 (26%). The increase was
primarily  due to a $200,000  increase in service  charge  income.  In the first
quarter  of 1999  service  charge  income  was  uncharacteristically  low due to
computer conversion related problems.
<TABLE>
Non-interest Expense                                         Second Quarter                          Year-to-Date
--------------------
(in thousands)                                            2000         1999                       2000         1999
                                                          ----         ----                       ----         ----
<S>                                                       <C>          <C>                       <C>           <C>
Total                                                     $2,485       $2,348                    $4,865        $4,499
                                                          ======       ======                    ======        ======
</TABLE>
Non-interest  expense  increased  $137,000  (6%) in the  second  quarter of 2000
compared to the same  period last year.  There were  increases  in salaries  and
benefits expense of $161,000 (14%)  principally due to an increase in the profit
sharing accrual, a result of the company's improved earnings in 2000.  Equipment
expense  increased  $44,000 (24%) due to increased  maintenance and depreciation
costs related to the purchase of enhanced  technology  used at the new branch as
well as  normal  computer  equipment  and  software  upgrades.  Other  areas  of
non-interest  expense  decreased in the second  quarter of 2000  compared to the
prior year.

For the first half of the year,  non-interest  expense  increased  $366,000 (8%)
compared to the prior year.  There was a $350,000 (15%) increase in salaries and
benefits, made up of a $112,000 (6%) increase in salary expense, a $47,000 (67%)
increase in health  insurance  costs,  and a $193,000  (117%) increase in profit
sharing  accruals.  The  increase in salary  expense was the result of increased
staff due to the new branch and normal salary increases.  The increase in health
insurance  cost is partly  because last year the Company had some credits in the
plan which kept 1999 costs low. The increase in profit  sharing  accruals is the
result of increased  earnings in the current year.  Occupancy expense is $17,000
(5%) higher due to the new branch which was opened in the third  quarter of last
year.  Equipment  expense is $161,000  (54%)  higher for the  reasons  mentioned
above.  Michigan taxes are $22,000 (22%) higher due to improved earnings.  Other
areas of  non-interest  expense are lower this year than the prior year. In 1999
the Company  experienced  extraordinary  costs due to Year 2000 and the computer
conversion.
<TABLE>
Income Tax Expense                                            Second Quarter                          Year-to-Date
------------------
(in thousands)                                              2000         1999                         2000       1999
                                                            ----         ----                         ----       ----
<S>                                                         <C>          <C>                          <C>        <C>
         Total                                              $515         $344                         $926       $661
                                                            ====         ====                         ====       ====
</TABLE>
Fluctuations  in income taxes  resulted  primarily  from changes in the level of
profitability.

                                       18
<PAGE>
<TABLE>
Capital (in thousands)                                June 30, 2000                     December 31, 1999
-------                                               -------------                     -----------------
<S>                                                     <C>                                  <C>
Stockholders' Equity*                                   $27,168                              $25,503
Ratio of Equity to Total Assets                            8.75%                                8.60%
</TABLE>
*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial  Accounting Standards No. 115 amounting to ($144,000) at June 30, 2000
and ($191,000) at December 31, 1999.

A financial institution's capital ratio is looked upon by the regulators and the
public as an indication of its soundness.  Stockholders'  equity,  excluding the
securities  valuation  adjustment,  increased $1,700,000 (6.5%) during the first
half of the year.  This  increase  was the  result of net  income  earned by the
company reduced by dividends paid of $626,000.

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 June 30,
2000 was 9.46%, and total risk-based  capital was 10.71%. At June 30, 1999 these
ratios were 9.81% and 11.06% 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 7.99% at June 30,  2000 and 7.47% in 1999.  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 1998 the Company  exercised an option to purchase an 18 acre tract of land in
northwest  Brighton primarily to acquire a prime site for a new branch. The cost
of the property was approximately  $4,000,000.  In 1999 a new branch of the Bank
was built on land valued at  approximately  $800,000.  The Company is  currently
attempting to sell the remaining acreage which is not needed for the branch. The
current book value of the land is $2,800,000. Improvements needed to enhance the
salability of the property are not expected to exceed $200,000.

The  Company  also  owns two  other  branch  sites,  one in  Howell  which  cost
approximately $250,000 and one in Hamburg which cost approximately $330,000. The
Company  does not expect to build  either  branch  this  year,  but may begin an
expansion of the Company's  computer  facility in the fourth  quarter to provide
additional space for back office functions.  Any building project is expected to
be financed from internally generated funds.

                                       19
<PAGE>
Accounting Standards
In June 1998, the FASB issued  Statement of Financial  Accounting  Standards No.
133,  Accounting for Derivative  Instruments and Hedging  Activities (SFAS 133).
SFAS  133  establishes   accounting  and  reporting   standards  for  derivative
instruments and hedging activities.  It requires  recognition of all derivatives
as either  assets or  liabilities  in the  statement of financial  condition and
measurement  of those  instruments  at fair value.  the accounting for gains and
losses on  derivatives  depends  on the  intended  use of the  derivative.  This
Statement is effective for all fiscal  quarters of fiscal years  beginning after
June 15, 1999, with earlier application  encouraged.  Retroactive application is
not permitted.

In  June  1999,  the  FASB  issued  SFAS  No.  137,  Accounting  for  Derivative
Instruments and Hedging  Activities - Deferral of the Effective Date of FASB No.
133.  Statement  No. 137 extends the  effective  date to fiscal years  beginning
after June 15, 2000.

In  June  2000,  the  FASB  issued  SFAS  No.  138,  Accounting  for  Derivative
Instruments and Hedging Activities - An Amendment of FASB No. 133. Statement No.
138 amends certain provisions of SFAS No. 133.

Since the Company  does not hold  derivatives,  SFAS 133, as amended by SFAS 137
and SFAS 138,  is not  expected  to have an impact  on the  Company's  financial
condition or operations.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
There has been no material  change in the market risk faced by the Company since
December 31, 1999 other than previously discussed.

                           PART II - OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders
The registrant's  annual meeting of stockholders was held on April 19, 2000. The
stockholders voted on the election of directors.

Votes were cast as follows for the three nominees for the office of director.

Term expiring in 2003:
                                  Shares voted for          Shares voted against
         Gary R. Boss                 930,115                      13,918
         Donald K. Burkel             943,616                         417
         Harry E. Griffith            943,126                         907


                                       20
<PAGE>
Additionally, the following directors continue in office.

Term expiring in 2001:
         W. Rickard Scofield
         Randolph E. Rudisill
         Barbara D. Martin

Term expiring in 2002:
         Dona Scott Laskey
         James R. McAuliffe
         R. Michael Yost


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 second  quarter of
2000.

                                   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 June 30, 2000 to be signed on its behalf by the undersigned  hereunto duly
authorized.


                  FNBH BANCORP, INC.



                  Barbara D. Martin
                  President and Chief Executive Officer



                  Barbara J. Nelson
                  Treasurer



DATE:  August 10, 2000