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, 2001
                                       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:  1,568,951  shares of the Company's  Common
Stock (no par value) were outstanding as of March 31, 2001.
<PAGE>
                                      INDEX

                                                                            Page
                                                                          Number
Part I.   Financial Information (unaudited):

         Item 1.
         Interim Financial Statements:
         Consolidated Balance Sheets as of March 31, 2001 and Dec. 31, 2000....4
         Consolidated Statements of Income, three months ended
         March 31, 2001 and 2000...............................................5
         Consolidated Statements of Stockholders' Equity and Comprehensive
         Income for three months ended March 31, 2001 and 2000.................6
         Consolidated Statements of Cash Flows for three months ended
         March 31, 2001 and 2000...............................................7
         Notes to Interim Consolidated Financial Statements....................8

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

         Item 3
         Quantitative and Qualitative Disclosures about Market Risk...........17

Part II.  Other Information

         Item 6...............................................................18

         Signatures...........................................................18
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.
Financial Statements
Unaudited interim consolidated financial statements follow.
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets                                                         March 31     December 31
---------------------------
Unaudited                                                                               2001            2000
                                                                                        ----            ----
<S>                                                                             <C>              <C>
Assets
Cash and due from banks                                                         $ 12,961,686     $17,501,547
Short term investments                                                            14,564,457      25,743,118
                                                                                  ----------      ----------
   Total cash and cash equivalents                                                27,526,143      43,244,665

Investment securities held to maturity, net (fair value of $19,430,000
   at March 31, 2001 and $19,218,000 at Dec. 31, 2000)                            18,781,566      18,886,677
Investment securities available for sale, at fair value                           14,988,764      19,847,480
Mortgage-backed securities held to maturity, net (fair value of
   $178,000 at March 31, 2001 and $578,000 at Dec. 31, 2000)                         178,722         576,994
Mortgage-backer securities available for sale, at fair value                         421,206               0
                                                                                     -------       ---------
      Total investment securities                                                 34,370,258      39,311,151

Loans:
   Commercial                                                                    207,647,790     197,203,204
   Consumer                                                                       31,456,009      31,180,063
   Real estate mortgages                                                          27,071,531      27,840,497
                                                                                  ----------      ----------
      Total loans                                                                266,175,330     256,223,764
   Less unearned income                                                              757,180         809,746
   Less allowance for loan losses                                                  5,457,115       5,193,263
                                                                                   ---------       ---------
      Net loans                                                                  259,961,035     250,220,755

Bank premises and equipment - net                                                  8,217,882       8,238,743
Land available for sale, net                                                       1,530,290       1,530,290
Accrued interest and other assets                                                  5,761,228       5,817,824
                                                                                   ---------       ---------
      Total assets                                                              $337,366,836    $348,363,428
                                                                                ============    ============

Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                  $ 53,393,282    $ 55,252,490
   NOW                                                                            29,824,963      34,637,247
   Savings and money market                                                       88,109,840      98,887,217
   Time                                                                          126,652,931     121,436,864
                                                                                 -----------     -----------
      Total deposits                                                             297,981,016     310,213,818

FHLB Advances                                                                      5,792,911       6,000,000
Accrued interest, taxes, and other liabilities                                     3,580,029       3,262,975
                                                                                   ---------       ---------
      Total liabilities                                                          307,353,956     319,476,793

Stockholders' Equity
Common stock, no par value.  Authorized 4,200,000 shares; 1,568,951
shares issued and outstanding at March 31, 2001 and 1,567,748 shares
issued and outstanding at December 31, 2000                                        5,068,423       5,025,476
Retained earnings                                                                 25,005,317      24,027,158
Unearned management retention plan                                                  (167,958)       (183,188)
Accumulated other comprehensive income, net                                          107,098          17,189
                                                                                     -------          ------
      Total stockholders' equity                                                  30,012,880      28,886,635
      Total liabilities and stockholders' equity                                $337,366,836    $348,363,428
                                                                                ============    ============
</TABLE>
   See notes to interim consolidated financial statements
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income
Unaudited                                                                       Three months ended March 31
                                                                                2001                    2000
                                                                                ----                    ----
<S>                                                                      <C>                     <C>
Interest income:
   Interest and fees on loans                                            $ 6,195,893             $ 5,106,939
   Interest and dividends on investment securities:
      U.S. Treasury and agency securities                                    256,582                 455,319
      Obligations of state and political subdivisions                        231,323                 220,787
      Other securities                                                        15,554                  15,868
   Interest on short term investments                                        271,842                  54,802
                                                                             -------                  ------
      Total interest income                                                6,971,194               5,853,715
                                                                           ---------               ---------

Interest expense:
   Interest on deposits                                                    2,797,450               2,204,064
   Other interest expense                                                    106,017                  46,192
                                                                             -------                  ------
      Total interest expense                                               2,903,467               2,250,256
                                                                           ---------               ---------

      Net interest income                                                  4,067,727               3,603,459

Provision for loan losses                                                    300,000                 300,000
                                                                             -------                 -------
      Net interest income after provision for loan losses                  3,767,727               3,303,459
                                                                           ---------               ---------

Non-interest income:
   Service charges                                                           600,126                 451,772
   Gain on sale of loans                                                      43,830                  16,243
   Trust fees                                                                 60,831                  44,295
   Other                                                                      20,524                   4,347
                                                                              ------                   -----
      Total non-interest income                                              725,311                 516,657
                                                                             -------                 -------

Non-interest expense:
   Salaries and employee benefits                                          1,495,880               1,348,627
   Net occupancy                                                             215,877                 189,810
   Equipment expense                                                         213,247                 232,499
   Fees                                                                      175,653                  62,963
   Printing and supplies                                                      58,382                  62,224
   Michigan Single Business Tax                                               65,500                  60,200
   Other                                                                     445,791                 423,341
                                                                             -------                 -------
      Total non-interest expense                                           2,670,330               2,379,664
                                                                           ---------               ---------

Income before federal income taxes                                         1,822,708               1,440,452

Federal income taxes                                                         531,000                 410,800
                                                                             -------                 -------

      Net income                                                          $1,291,708              $1,029,652
                                                                          ==========              ==========

Per share statistics*
   Basic EPS                                                                    $.82                    $.66
   Diluted EPS                                                                  $.82                    $.66
   Dividends                                                                    $.20                    $.20
*Based on 1,567,761 average shares outstanding during the period ended March 31,
2001 and 1,565,203 average shares outstanding during the period ended March 31,
2000 See notes to interim consolidated financial statements
</TABLE>
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
     Consolidated Statement of Stockholders' Equity and Comprehensive Income
               For the Three Months Ended March 31, 2001 and 2000
                                   (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, 1999                              $4,919,280    20,723,357      (139,597)          (191,394)     5,311,646
Amortization of management retention plan                                                 12,012                             12,012
Comprehensive income:
   Net income                                                             1,029,652                                       1,029,652
   Change in unrealized gain (loss) on debt securities
      available for sale, net of tax effect                                                                    3,136          3,136
                                                                                                              -------         -----
           Total comprehensive income                                                                                     1,032,788

Cash dividends (20(cent)per share)                                         (313,040)                                       (313,040)
                                                           ----------    ----------      ---------          ---------    ----------
Balances at March 31, 2000                                 $4,919,280    21,439,969      (127,585)          (188,258)    26,043,406
                                                           ==========    ==========      =========          =========    ==========
See notes to interim consolidated financial statements

                                                                                         Unearned          Accumulated
                                                                                        Management            Other
                                                           Common        Retained        Retention        Comprehensive
                                                            Stock        Earnings          Plan           Income (loss)      Total
                                                            -----        --------          ----           -------------      -----
Balances at December 31, 2000                              $5,025,476    24,027,158      (183,188)            17,189     28,886,635
Issued 1,203 shares for employee purchase plan                 42,947                                                        42,947
Amortization  of management retention plan                                                 15,230                            15,230
Comprehensive income:
   Net income                                                             1,291,708                                       1,291,708
   Change in unrealized gain (loss) on debt securities
      available for sale, net of tax effect                                                                   89,909         89,909
                                                                                                                             ------
            Total comprehensive income                                                                                    1,381,617

Cash dividends (20(cent)per share)                                         (313,549)                                       (313,549)
                                                           ----------    ----------      ---------           -------     ----------
Balances at March 31, 2001                                 $5,068,423    25,005,317      (167,958)           107,098     30,012,880
                                                           ==========    ==========      =========           =======     ==========
See notes to interim consolidated financial statements
</TABLE>
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Statements of Cash Flows
Unaudited                                                                        Three months ended March 31
                                                                                        2001            2000
                                                                                        ----            ----
<S>                                                                              <C>             <C>
Cash flows from operating activities:
   Net income                                                                    $ 1,291,708     $ 1,029,652
   Adjustments to reconcile net income to net cash provided by operating activities:
      Provision for loan losses                                                      300,000         300,000
      Depreciation and amortization                                                  225,813         232,905
      Net amortization (accretion) on investment securities                           (1,145)         18,011
      Earned portion of management retention plan                                     15,230          12,012
      Shares issued for employee purchase plan                                        42,947               0
      Gain on sale of loans                                                          (43,830)        (16,243)
      Proceeds from sale of loans                                                  2,670,082       1,742,099
      Origination of loans held for sale                                          (3,110,125)     (2,177,816)
      (Increase) decrease in accrued interest income and other assets                 56,596       (555,910)
      Increase in accrued interest, taxes, and other liabilities                     270,754         479,059
                                                                                     -------         -------
         Net cash provided by operating activities                                 1,718,030       1,063,769
                                                                                   ---------       ---------

Cash flows from investing activities:
   Purchases of available for sale securities                                       (421,268)     (4,981,923)
   Proceeds  from maturities and calls of available for sale securities            5,000,000       5,000,000
   Purchases of held to maturity securities                                                0        (725,571)
   Proceeds from maturities and calls of held to maturity securities                 100,000               0
   Proceeds from mortgage-backed securities paydowns-held to maturity                399,515          60,025
   Net increase in loans                                                          (9,556,407)    (12,415,519)
   Capital expenditures                                                             (204,952)        (54,920)
                                                                                   ---------        --------
         Net cash used in investing activities                                    (4,683,112)    (13,117,908)
                                                                                 -----------    ------------

Cash flows from financing activities:
   Net decrease in deposits                                                      (12,232,802)     (5,124,099)
   Net increase (decrease) in borrowings                                            (207,089)       4,815,000
   Dividends paid                                                                   (313,549)       (313,040)
                                                                                   ---------       ---------
         Net cash used in financing activities                                   (12,753,440)       (622,139)
                                                                                ------------       ---------

Net decrease in cash and cash equivalents                                        (15,718,522)    (12,676,278)

Cash and cash equivalents at beginning of year                                    43,244,665      24,414,282
                                                                                  ----------      ----------

Cash and cash equivalents at end of period                                       $27,526,143     $11,738,004
                                                                                 ===========     ===========

Supplemental disclosures:
   Interest paid                                                                 $ 3,356,852     $ 2,219,263
   Loans charged off                                                                  54,635          56,592
See notes to interim consolidated financial statements
</TABLE>
<PAGE>
Notes to Interim Consolidated Financial Statements(unaudited)
The accompanying  unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America 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, 2001,  and
consolidated results of operations for the three months ended March 31, 2001 and
2000 and  consolidated  cash flows for the three months ended March 31, 2001 and
2000.

2. The results of  operations  for the three months ended March 31, 2001 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 2000
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 $1,397,000 at March 31, 2001 and $817,000
at December 31, 2000.  (See  Management's  Discussion  and Analysis of financial
condition and results of operations).

6. Basic EPS is computed by dividing net income by the weighted  average  common
shares outstanding.
<TABLE>
                                                         First Quarter
                                                         2001                 2000
                                                         ----                 ----
<S>                                                 <C>                 <C>
Net income                                          1,291,708           $1,029,652
Shares outstanding (basic)                          1,567,761            1,565,203
Diluted shares                                              0                    0
                                                    ---------            ---------
   Shares outstanding  (diluted)                    1,567,761            1,565,203
Earnings per share:
   Basic EPS                                             $.82                 $.66
   Diluted EPS                                           $.82                 $.66
</TABLE>
<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, 2001 and
2000,  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)                                                 2001        2000
                                                                       ----        ----
<S>                                                                  <C>         <C>
Net income                                                           $1,292      $1,030

Net Income per Share                                                  82(cent)     66(cent)
</TABLE>

The Company's earnings increased $262,000 (25%) for the three months ended March
31, 2001  compared to the same  period of the prior year.  In 2001 net  interest
income  increased  $464,000  (13%),  primarily  the  result of growth in earning
assets.  During the year, however,  the Company's tax equivalent interest margin
declined 11 basis points.  Additionally,  non-interest  income improved $208,000
(40%) in 2001.  Non-interest  expense  increased  $290,000 (12%) compared to the
previous year.
<TABLE>
Net Interest Income                                                      First Quarter
-------------------
(in thousands)                                                         2001         2000
                                                                       ----         ----
<S>                                                                  <C>          <C>
Interest Income                                                      $6,971       $5,854
Interest Expense                                                      2,903        2,250
                                                                     ------        -----
Net Interest Income                                                 $ 4,068       $3,604
</TABLE>
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, 2001 and 2000
<TABLE>
                                                ---------------First Quarter Averages----------------
                                                      2001                                2000
                                                      ----                                ----
                                     Average                             Average
                                     Balance      Interest       Rate    Balance       Interest       Rate
<S>                                   <C>         <C>            <C>     <C>          <C>            <C>
Assets:
Short term investments                $ 20,682    $   270.7      5.24%   $  3,971     $    54.8      5.46%
Securities:  Taxable                    18,053        272.1      6.03%     35,960         304.8      5.26%
                   Tax-exempt(1)        18,819        315.5      6.71%     17,969         471.2      6.78%
Loans(2)(3)                            260,794      6,238.8      9.59%    217,166       5,133.7      9.38%
                                      --------     --------              --------      --------
Total earning assets/total
interest income                        318,348     $7,097.1      8.93%    275,066      $5,964.5      8.62%
                                                   --------                            --------
Cash & due from banks                   12,487                             10,232
All other assets                        15,697                             16,529
Allowance for loan loss                 (5,287)                            (4,589)
                                      --------                           --------
   Total assets                       $341,245                           $297,238
                                      ========                           ========
Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts                $126,855     $  896.5      2.87%   $121,957      $  860.3      2.83%
Time                                   123,266      1,901.0      6.25%     97,997       1,343.8      5.50%
Fed funds purchased                          0            0      0.00%        739           8.6      4.63%
FHLB notes                               5,827        106.0      7.28%      2,076          37.6      7.15%
                                      --------     --------              --------      --------

Total interest bearing
liabilities/total interest expense     255,948    $ 2,903.5      4.60%    222,769      $2,250.3      4.05%
                                                  ---------                            --------
Non-interest bearing deposits           51,860                             45,572
All other liabilities                    3,990                              2,758
Shareholders' Equity                    29,447                             26,139
                                      --------                           --------
Total liabilities and
   shareholders' equity               $341,245                           $297,238
                                      ========                           --------
Interest spread                                                  4.33%                               4.57%
                                                                 =====                               =====
Net interest income-FTE                           $ 4,193.6                            $ 3,714.2
                                                  =========                            =========
Net interest margin                                              5.23%                               5.34%
                                                                 =====                               =====
</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 included in
     the average daily loan balances.

(3)  Interest on loans includes the  amortization  of origination  fees totaling
     $187,000 in 2001 and $148,000 in 2000.

Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased approximately $1,133,000 in
the first quarter of 2001 compared to that of 2000. The increase was due to both
growth in the Bank's  earning  assets and an increase of 31 basis  points in the
rate earned on these assets.
<PAGE>
The first quarter average balance in loans  increased 20% to  $261,000,000.  The
rate earned on loans  increased  21 basis  points  although  the  average  prime
lending rate for the Bank was three basis  points lower in the first  quarter of
this year compared to last year.  The increase in  origination  fee income aided
the yield on loans. Average commercial loans increased  $33,000,000 (19%), while
average  consumer loans increased  $5,500,000  (22%), and average mortgage loans
increased  $5,500,000  (25%).  The Bank's  resources in the loan  department are
primarily  deployed  making  commercial  loans.  In addition to the $5.5 million
increase in mortgage loans the Bank retained,  approximately $2,600,000 mortgage
loans were sold in the secondary market in the first quarter.

In the first quarter,  tax equivalent  income on short and long term investments
increased   approximately  $28,000.   Although  the  average  balance  decreased
$346,000,  the rate earned increased 23 basis points.  During the first quarter,
the Company  allowed  some taxable  securities  to roll off and remain in liquid
investments  to  cover  possible  deposit  roll off and to  reassess  investment
strategy. Indeed, deposits have decreased $12,000,000 since December 31. This is
a normal seasonal fluctuation for the Bank.

Interest Bearing Liabilities/Interest Expense
In the first quarter of 2001, interest expense increased  approximately $653,000
due to an  increase  in average  balances of  approximately  $33,000,000  and an
increase in rates of 55 basis points. Savings and NOW interest expense increased
$36,000  because average  balances  increased  nearly  $5,000,000 (4%) and rates
increased 4 basis points.  Interest on time deposits  increased $557,000 in 2001
over the first quarter of the prior year.  Balances increased  $25,000,000 (26%)
and the rate  paid on time  deposits  increased  75 basis  points  in that  time
period.  The growth in time  deposits was  principally  the result of the Bank's
marketing  efforts and special  rates offered in the second half of 2000 to meet
the funding needs resulting from loan growth.

Additionally  the Bank's  interest  costs  increased due to borrowings  from the
Federal  Home  Loan  Bank of  Indianapolis.  The  Bank has two  loans,  totaling
$5,793,000 as of March 31, 2001. One borrowing,  contracted in January 2000, was
initiated to match the  maturity of a fixed rate loan made to a local  township.
The other  borrowing,  of $3,000,000  from April 2000, was intended to help with
the Bank's rate  sensitivity  position.  Interest expense related to these loans
amounted  to  $106,000  in the first  quarter of the  current  year  compared to
$38,000 in 2000. It is reasonable to expect that part of future loan growth will
continue to be funded with FHLBI borrowings.

Liquidity
Liquidity is monitored by the Bank's Asset/Liability Management Committee (ALCO)
which meets at least monthly.

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 makeup of the Bank's over
$100,000  certificates,  which are generally
<PAGE>
considered to be more  volatile and  sensitive to changes in rates,  consists of
local  depositors  known to the Bank.  As of March 31,  2001,  the Bank had over
$100,000 certificates totaling approximately $37,260,000 compared to $33,100,000
at December 31, 2000.

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 Sold balance  sufficient to cover  required cash draws.  From time to time
the Bank will borrow Fed Funds from a correspondent bank. In addition,  the Bank
could borrow approximately $70,000,000 at the FHLBI (the Bank already has nearly
$6,000,000 in borrowings, as mentioned previously). 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.

Interest Rate Risk
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  simulation  report.  The  Bank  has  no  market  risk  sensitive
instruments  held for trading  purposes.  The Bank has not entered into futures,
forwards,  swaps, or options to manage interest rate risk. However,  the Bank is
party to financial  instruments with off-balance sheet risk in the normal course
of business to meet 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.

In  addition  to  liquidity  and  interest  rate risk  management  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,
interest rate sensitivity, and liquidity ratios.
<TABLE>
Interest Rate Sensitivity
(dollars in thousands)                              0-3         4-12           1-5           5+
                                                 Months       Months         Years        Years         Total
                                                 ------       ------         -----        -----         -----
<S>                                            <C>           <C>          <C>           <C>          <C>
Assets:
Loans......................................... $110,811      $30,856      $112,852      $11,243      $265,762
Securities....................................    1,417       13,722         9,247        9,984        34,370
   Short term investments.....................   14,564                                                14,564
                                                 ------       ------       -------       ------       -------

      Total assets............................ $126,792      $44,578      $122,099      $21,227      $314,696


Liabilities & Shareholders' Equity:
   Savings & NOW..............................  $48,864                                 $69,071      $117,935
   Time.......................................   39,083       49,885        37,239          446       126,653
   Other borrowings...........................                   224         4,088        1,481         5,793
                                                 ------          ---         -----        -----         -----
      Total liabilities and equity............  $87,947      $50,109       $41,327      $70,998      $250,381

<PAGE>
Rate sensitivity gap and ratios:
   Gap for period.............................  $38,845      ($5,531)      $80,772     $(49,771)
   Cumulative gap.............................                38,845        33,314      114,086


Cumulative rate sensitive ratio...............     1.44         1.24          1.64         1.26
Dec. 31, 2000 rate sensitive ratio............     1.17         1.16          1.34         1.23
</TABLE>

The  preceding  table sets forth the time  periods in which  earning  assets and
interest  bearing  liabilities  will mature or may re-price in  accordance  with
their  contractual  terms. 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  and are  not  considered  rate  sensitive.
Allocations are made to time periods based on the Bank's  historical  experience
and management's analysis of industry trends.

In the gap table above, the short term (one year and less)  cumulative  interest
rate  sensitivity is positive.  Accordingly,  if market interest rates decrease,
this  positive  gap  position  indicates  that  the  interest  margin  would  be
negatively  affected.  However,  gap  analysis is limited and may not provide an
accurate  indication of the impact of general interest rate movements on the net
interest margin since repricing of various  categories of assets and liabilities
is subject  to the Bank's  needs,  competitive  pressures,  and the needs of the
Bank's  customers.  In addition,  various  assets and  liabilities  indicated as
repricing  within the same period may in fact reprice at different  times within
the period and at different  rate indices.  Additionally,  simulation  modeling,
which measures the impact of upward and downward  movements of interest rates on
interest margin, provides meaningful insight into strategies management can take
to help  mitigate  the  negative  impact of interest  rates  continuing  to move
downward.
<TABLE>
Provision for Loan Losses                          First Quarter
-------------------------
(in thousands)                                    2001         2000
                                                  ----         ----
<S>                                               <C>          <C>
         Total                                    $300         $300
                                                  ====         ====
</TABLE>
The  provision  for loan  losses  was  unchanged  in the first  quarter  of 2001
compared to the prior year.  Although the average balance in loans increased 20%
in the last  year and  non-performing  loans  are  somewhat  higher,  management
determined the allowance to be sufficient based on the level of risk in the loan
portfolio.  At March 31, 2001, the allowance for loan loss as a percent of loans
was 2.06%, compared to 2.14% a year earlier, and 2.03% at December 31, 2000. For
the  first  three  months  of 2001,  the Bank had net  charge  offs of  $36,000,
compared with net charge offs of $24,000 the previous  year.  Non-accrual,  past
due 90 days,  and  renegotiated  loans  totaled  .52%  and  .42% of total  loans
outstanding at March 31, 2001 and 2000  respectively  and .32% of total loans at
December 31, 2000.

Impaired  loans, as defined by Statement of Financial  Accounting  Standards No.
114,  Accounting by Creditors for  Impairment of a Loan,  totaled  approximately
$6,400,000 at March 31, 2001,  compared to $3,900,000 at December 31, 2000,  and
included non-accrual,
<PAGE>
and past due 90 days other than homogenous  residential and consumer loans,  and
an additional  $5,200,000 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. 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 $1,200,000,  was
made to a doctor to purchase  medical  buildings in Lansing.  Cash flow from the
leases has not been  sufficient  to cover debt  service.  Both loans are secured
with first  mortgages  on  commercial  real  estate and the real estate is being
actively marketed.

Management's  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 $3,100,000
at March 31, 2001.

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,
2001 compared to December 31, 2000.  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.
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, 2001                December 31, 2000
                                                       --------------                -----------------
<S>                                                           <C>                             <C>
Non-accrual loans                                             $ 1,235                         $  608
90 days or more past due and still accruing                       162                            209
                                                              -------                          -----
         Total nonperforming loans                              1,397                            817
Other real estate                                                 604                            604
                                                              -------                          -----
         Total nonperforming assets                           $ 2,001                         $1,421

Nonperforming loans as a percent of total loans                   .52%                            .32%
Nonperforming assets as a percent of total loans                  .75%                            .57%
Loan loss reserve as a percent of nonperforming loans             391%                            636%
</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 2001 and 2000.
<TABLE>
                                                                       Year to date         Year to date
Loans:                                                                March 31, 2001       March 31, 2000

                                                                      --------------       --------------
<S>                                                                       <C>                   <C>
   (dollars in thousands)
   Average daily balance of loans for the year to date                    260,935               217,011
   Amount of loans, net of unearned income,
   outstanding at the end of the quarter                                  265,418               222,794
Allowance for loan losses:
   Balance at beginning of year                                             5,193                 4,483
   Loans charged off:
      Real Estate Mortgage                                                      0                     0
      Commercial                                                                0                    32
      Consumer                                                                 55                    24
                                                                               --                    --
         Total charge-offs                                                     55                    56

   Recoveries of loans previously charged off:
      Real Estate Mortgage                                                      0                     0
      Commercial                                                               11                    17
      Consumer                                                                  8                    15
              ---                                                              --                    --
         Total recoveries                                                      19                    32

Net loans charged off                                                          36                    24
Additions to allowance charged to operations                                  300                   300
                                                                              ---                   ---
         Balance at end of quarter                                         $5,457                $4,759

Ratios:
  Net loans charged off (annualized) to average
  loans outstanding                                                           .05%                  .04%
  Allowance for loan losses to loans outstanding                             2.06%                 2.14%
</TABLE>
<TABLE>
Non-interest Income                                         First Quarter
-------------------
(in thousands)                                            2001          2000
                                                          ----          ----
<S>                                                       <C>           <C>
Total                                                     $725          $517
                                                          ====          ====
</TABLE>
Non-interest  income,  which  includes  service  charges  on  deposit  and  loan
accounts, trust fees, other operating income, and gain (loss) on sale of assets,
increased by approximately  $208,000 (40%) in the first quarter of 2001 compared
to the same  period  in the  previous  year.  Service  charge  income  increased
$148,000 (33%). A thorough  review of the Bank's service charges  completed last
spring  resulted in a new service charge  schedule which went into effect in May
of last year, accounting for the increased income comparing the first quarter of
2001 to the previous year. The $28,000 increase in gains on the sale of loans is
a result of increased volume due to heavy volume of mortgage refinancing brought
about by the lower interest rates in the first quarter of this year.  Trust fees
have  increased  as volume  increased in the Trust  Department  which is still a
fairly  new  business  for the Bank.  Included  in  "Other"  income is a $15,000
non-recurring gain due to the sale of property.
<PAGE>
<TABLE>
Non-interest Expense                                     First Quarter
--------------------
(in thousands)                                         2001          2000
                                                       ----          ----
<S>                                                  <C>           <C>
Total                                                $2,670        $2,380
                                                     ======        ======
</TABLE>
Non-interest  expense  increased  $290,000  (12%) in the first  quarter  of 2001
compared  to the same  period  last year.  Contributing  to this  increase  were
increases of $147,000 (11%) in salaries and benefits, $26,000 (14%) in occupancy
expense,  and  $113,000  (179%) in fees.  The  increase in salaries and benefits
expense was  principally the result of normal salary  increases,  and an $80,000
increase in profit  sharing  accruals for the first quarter.  Occupancy  expense
increased  primarily  due to costs of snow removal this winter.  The increase in
fees was primarily due to staffing the trust department with contract help while
searching  for a trust  officer and the costs  related to filling the  position.
Additionally,  the  Company  has  hired  a  consultant  to help  with  Strategic
Planning.
<TABLE>
Income Tax Expense                                         First Quarter
------------------
(in thousands)                                           2001         2000
                                                         ----         ----
<S>                                                      <C>          <C>
         Total                                           $531         $411
                                                         ====         ====
</TABLE>
Fluctuations  in income taxes  resulted  primarily  from changes in the level of
profitability.

<TABLE>
Capital (in thousands)                March 31, 2001           December 31, 2000
-------                               --------------           -----------------
<S>                                      <C>                         <C>
Shareholders' Equity*                    $29,906                     $28,869
Ratio of Equity to Total Assets            8.86%                       8.29%
</TABLE>
*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial  Accounting  Standards No. 115 amounting to $107,000 at March 31, 2001
and $17,000 at December 31, 2000.

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 $1,037,000 (3.6%) 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 $314,000.

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 March 31,
2001 was 9.91%, and total risk-based capital was 11.16%. At March 31, 2000 these
ratios were 9.84% and 11.08% respectively.  Minimum regulatory Tier 1 risk-based
and total  risk-based  capital ratios under the Federal Reserve Board guidelines
are 4% and 8% respectively.
<PAGE>
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 8.11% at March 31,  2001 and 7.78% in 2000.  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 a portion of the land valued at approximately $800,000. During 2000
one parcel of the property was sold.  The  remaining  property is held for sale.
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  expects to commence  building the Howell branch in 2001 with completion
anticipated  in the fourth quarter of 2001 or the first quarter of the following
year. It is likely that construction will begin on the Hamburg branch by the end
of the current year with  completion  anticipated in 2002. The Company will also
build additional space for back office functions in the current year. All of the
building projects are expected to be financed from internally generated funds.

Accounting Standards

In June 1998, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial Accounting Standards No. 133, Accounting for Derivative Instruments
and Hedging Activities (SFAS 133). SFAS 133, which has been subsequently amended
by SFAS No. 137 and SFAS No. 138,  requires  companies to record  derivatives on
the balance sheet as either assets or liabilities,  measured at fair value.  The
accounting  for increases and decreases in the value of  derivatives  depends on
the intended use of the derivative and whether the derivatives  will qualify for
hedge accounting.  This Statement is in effect but has no material impact on the
financial condition or operations of the Company.

The FASB has adopted SFAS No. 140,  Accounting  for  Transfers  and Servicing of
Financial  Assets  and  Extinguishments  of  Liabilities.  SFAS No.  140,  which
replaces  SFAS No. 125,  Accounting  for  Transfers  and  Servicing of Financial
Assets and Extinguishments of Liabilities,  revises the standards for accounting
for the  securitization  and other transfers of financial assets and collateral.
SFAS No. 140 also  requires  certain  disclosures,  but carries over most of the
provisions  of SFAS No.  125.  This  Statement  is  effective  for  transactions
occurring after March 31, 2001,  with earlier  application not allowed and is to
be applied prospectively. The adoption of this Statement is not expected to have
a material impact on the Company's financial statements.
<PAGE>
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, 2000 other than previously discussed.


                           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
     2001.



                                   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, 2001 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
                  Secretary/Treasurer


DATE:  May 10, 2001