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, 1997
                                       OR
              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to _______

                         Commission file number 0-25752

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

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

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

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

                             -----------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes_X_No___

The number of shares outstanding of each of the issuers classes of common stock,
as of the latest  practicable  date:  1,575,000  shares of the Company's  Common
Stock (no par value) were outstanding as of March 31, 1997.

                                                               Page 1 of a Total
                                                                     of 17 Pages
<PAGE>
                                      INDEX

                                                                            Page
                                                                          Number
Part I.   Financial Information (unaudited):

  Item 1.
  Interim Financial Statements:
  Consolidated Balance Sheet as of March 31, 1997 and Dec. 31, 1996...........4
  Consolidated Statements of Income, three months ended
  March 31, 1997 and 1996.....................................................5
  Consolidated Statements of Stockholders' Equity for three months
  ended March 31, 1997........................................................6
  Consolidated Statements of Cash Flows for three months ended
  March 31, 1997 and 1996.....................................................7
  Notes to Interim Consolidated Financial Statements..........................8

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


Part II.  Other Information

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

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

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


<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets                                                        March 31     December 31
                                                                                       1997            1996
Assets                                                                          (unaudited)
<S>                                                                             <C>            <C>
Cash and due from banks                                                        $  9,867,740    $  7,069,216
Federal funds sold                                                                  300,000       6,500,000
                                                                                    -------       ---------
   Total cash and cash equivalents                                               10,167,740      13,569,216

Investment securities held to maturity, net (fair value of $31,304,000
   at March 31, 1997 and $28,160,000 at Dec. 31, 1996)                           31,238,120      27,821,614
Investment securities available for sale, at fair value                          17,002,174      19,047,187
Mortgage-backed securities held to maturity, net (fair value of
   $682,000 at March 31, 1997 and $353,000 at Dec. 31, 1996)                        693,627         351,930
Mortgage-backed securities available for sale, at fair value                         33,073          35,960
                                                                                     ------          ------
      Total investment securities                                                48,966,994      47,256,691

Loans:
   Commercial                                                                    96,099,649      91,015,036
   Consumer                                                                      22,905,598      22,122,885
   Real estate mortgages                                                         22,933,739      23,402,833
                                                                                 ----------      ----------
      Total loans                                                               141,938,986     136,540,754
   Less unearned income                                                             448,955         473,311
   Less allowance for loan losses                                                 3,387,285       3,335,044
                                                                                  ---------       ---------
      Net loans                                                                 138,102,746     132,732,399

Bank premises and equipment - net                                                 4,792,244       4,818,603
Accrued interest and other assets                                                 2,987,038       2,909,324
Other real estate owned                                                             720,611         723,011
                                                                                    -------         -------
      Total assets                                                             $205,737,373    $202,009,244
                                                                               ============    ============

Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                 $ 35,786,835    $ 35,047,948
   NOW                                                                           22,483,257      25,145,241
   Savings and money market                                                      57,480,358      54,979,331
   Time                                                                          68,177,615      65,771,249
                                                                                 ----------      ----------
      Total deposits                                                            183,928,065     180,943,769

Accrued interest, taxes, and other liabilities                                    1,578,474       1,468,367
                                                                                  ---------       ---------
      Total liabilities                                                         185,506,539     182,412,136

Stockholders' Equity
Common stock, no par value.  Authorized 2,100,000 shares; 1,575,000
shares issued and outstanding at March 31, 1997 and Dec. 31, 1996                 5,250,000       5,250,000
Retained earnings                                                                14,970,891      14,308,934
Net unrealized gain on debt securities, net of related tax effect                     9,943          38,174
                                                                                      -----          ------
      Total stockholders' equity                                                 20,230,834      19,597,108
      Total liabilities and stockholders' equity                               $205,737,373    $202,009,244
                                                                               ============    ============
</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
                                                                               1997                    1996
<S>                                                                     <C>                     <C>
Interest income:
   Interest and fees on loans                                           $ 3,299,903             $ 3,186,167
   Interest and dividends on investment securities:
      U.S. Treasury securities                                              482,544                 316,880
      Obligations of other U.S. government agencies                          38,054                  75,775
      Obligations of state and political subdivisions                       173,628                 140,966
   Interest on federal funds sold                                            51,951                  70,569
                                                                             ------                  ------
      Total interest income                                               4,046,080               3,790,357
                                                                          ---------               ---------
Interest expense:
   Interest on deposits                                                   1,480,396               1,394,514
   Other interest expense                                                         0                       0
      Total interest expense                                              1,480,396               1,394,514
                                                                          ---------               ---------
      Net interest income                                                 2,565,684               2,395,843
Provision for loan losses                                                   112,125                 112,125
                                                                            -------                 -------
      Net interest income after provision for loan losses                 2,453,559               2,283,718
                                                                          ---------               ---------
Non-interest income:
   Service charges                                                          380,200                 362,214
   Gain (loss) on sale of loans                                              37,839                  (5,574)
   Other                                                                     10,308                   5,222
                                                                             ------                   -----
      Total non-interest income                                             428,347                 361,862
                                                                            -------                 -------
Non-interest expense:
   Salaries and employee benefits                                           916,551                 821,534
   Net occupancy                                                            141,849                 112,200
   Equipment expense                                                        108,242                  98,267
   Fees                                                                      46,909                  26,114
   Printing and supplies                                                     53,781                  63,658
   Michigan Single Business Tax                                              49,000                  42,500
   Other                                                                    282,868                 232,971
                                                                            -------                 -------
      Total non-interest expense                                          1,599,200               1,397,244
                                                                          ---------               ---------
Income before federal income taxes                                        1,282,706               1,248,336
Federal income taxes                                                        384,500                 387,000
                                                                            -------                 -------
      Net income                                                        $   898,206             $   861,336
                                                                        ===========             ===========

Per share statistics*
   Net income                                                                $  .57                  $  .55
   Dividends                                                                 $  .15                  $  .12
   Book Value                                                                $12.84                  $12.44
*Based on 1,575,000 shares outstanding March 31, 1997 and 1996 respectively
</TABLE>
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Stockholders' Equity
Unaudited                                               For the three months ended March 31, 1997

                                                                             Net Unrealized
                                                                                Gain on
                                                                               Securities
                                                                             Available for
                                                  Common        Retained          Sale
                                                   Stock        Earnings       Net of tax         Total
<S>                                               <C>           <C>                 <C>          <C>
Balances at December 31, 1996                     $5,250,000    14,308,934           38,174      19,597,108

Net income                                             -           898,206                          898,206
Change in unrealized gain on debt securities
   available for sale, net of tax effect                                            (28,231)        (28,231)
Cash dividends (15(cent)per share)                     -          (236,249)                        (236,249)

Balances at March 31, 1997                        $5,250,000    14,970,891            9,943      20,230,834
                                                  ==========    ==========             =====     ==========
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows
Unaudited                                                                       Three months ended March 31
                                                                                   1997            1996
<S>                                                                             <C>              <C>
Cash flows from operating activities:
   Net income                                                                   $   898,206     $   861,336
   Adjustments to reconcile net income to net cash
    provided by operating activities:
      Provision for loan losses                                                     112,125         112,125
      Depreciation and amortization                                                 102,191          87,788
      Net amortization on investment securities                                       9,425          12,778
      Loss on disposal of equipment                                                       0             130
      (Gain) loss on sale of loans                                                  (37,839)          5,574
      Proceeds from sale of loans                                                 3,222,628       1,819,125
      Origination of loans held for sale                                         (3,262,950)     (2,656,080)
      Increase in accrued interest income and other assets                          (75,314)       (131,984)
      Increase in accrued interest, taxes, and other liabilities                    124,687          63,115
                                                                                    -------          ------
         Net cash provided by operating activities                                1,093,159         173,907
                                                                                  ---------         -------

Cash flows from investing activities:
   Purchases of available for sale securities                                      (995,781)     (2,000,016)
   Proceeds  from maturities and calls of available for sale securities           3,000,000               0
   Proceeds from mortgage-backed securities paydowns-available for sale               2,872           3,426
   Purchases of held to maturity securities                                      (3,953,769)     (4,839,705)
   Proceeds from maturities and calls of held to maturity securities                      0       1,600,000
   Proceeds from mortgage-backed securities paydowns-held to maturity               184,140          40,584
   Net increase in loans                                                         (5,404,310)     (2,893,498)
   Capital expenditures                                                             (75,833)       (381,479)
                                                                                   --------       ---------
         Net cash used in investing activities                                   (7,242,681)     (8,470,688)
                                                                                 -----------     -----------

Cash flows from financing activities:
   Net increase in deposits                                                       2,984,296       1,815,346
   Dividends paid                                                                  (236,250)       (183,750)
                                                                                  ---------       ---------
         Net cash provided by financing activities                                2,748,046       1,631,596
                                                                                  ---------       ---------

Net decrease in cash and cash equivalents                                        (3,401,476)     (6,665,185)

Cash and cash equivalents at beginning of year                                   13,569,216      16,455,641
                                                                                 ----------      ----------

Cash and cash equivalents at end of period                                      $10,167,740     $ 9,790,456
                                                                                ===========     ===========

Supplemental disclosures:
   Interest paid                                                                $ 1,480,372     $ 1,429,709
   Loans charged off                                                                 84,360           8,231
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
Notes to Interim Consolidated Financial Statements(unaudited)
The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions to Form 10-Q and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

1. In the opinion of management of the  Registrant,  the unaudited  consolidated
financial   statements  filed  with  this  Form  10-Q  contain  all  adjustments
(consisting of only normal recurring  accruals)  necessary to present fairly the
consolidated  financial  position of the  Registrant  as of March 31, 1997,  and
consolidated results of operations for the three months ended March 31, 1997 and
1996 and  consolidated  cash flows for the three months ended March 31, 1997 and
1996.

2. The results of  operations  for the three months ended March 31, 1997 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 1996
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 $1,492,000 at March 31, 1997 and $557,000
at December 31, 1996.  (See  Management's  Discussion  and Analysis of financial
condition and results of operations).

6. On January 16, 1997,  the Board of  Directors  declared a three for one stock
split,  payable as a dividend of two shares for each one share of company  stock
held of record  January 16,  1997.  The  dividend  was paid  February  16, 1997.
References  to common  stock and per share data have been  restated  for 1996 to
reflect the effect of the split.
<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).  The  following  is a  discussion  of the
Company's  results of  operations  for the three months ended March 31, 1997 and
1996,  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)          1997          1996
<S>                           <C>            <C>
Net income                    $  898        $  861

Net Income per Share          57(cent)      55(cent)
</TABLE>
Net income of $898,000 for the three  months  ended March 31, 1997  increased 4%
from the amount reported for the same period of the prior year.  Contributing to
the  improvement  in earnings  was an increase of $170,000  (7%) in net interest
income.  This increase is the result of growth the Bank has  experienced  as the
interest  margin has  declined in the last year from 5.62% in 1996 to 5.54% this
year.  Additionally,  non-interest income increased $66,000 in the first quarter
of 1997 compared to the same period last year. The increase in income would have
been greater if non-interest expense had not increased $200,000 (14%).
<TABLE>
Net Interest Income                          First Quarter
(in thousands)                             1997         1996
<S>                                       <C>          <C>
Interest Income                            $4,046      $3,790
Interest Expense                            1,480       1,394
                                           ------       -----
Net Interest Income                       $ 2,566      $2,396
</TABLE>
The Company's 1997 first quarter net interest  income  increased  $170,000.  The
following table illustrates some of the factors  contributing to the increase in
net interest income for the first quarter.
<PAGE>
<TABLE>
                                     TABLE 1
                    INTEREST YIELDS AND COSTS (in thousands)
                             March 31, 1997 and 1996

                                  ---------------First Quarter Averages----------------
                                                     1997                                1996
                                                     ----                                ----
                                   Average                              Average
                                   Balance       Interest     Rate      Balance       Interest      Rate
<S>                                <C>           <C>          <C>       <C>           <C>          <C>
Assets:
Fed funds sold                     $    3,988    $    51.9    5.21%     $   5,318     $    70.6    5.25%
Securities:  Taxable                   35,043        520.7    5.94%        26,894         392.6    5.84%
             Tax-exempt(1)             13,005        242.9    7.47%        10,082         197.3    7.83%
Loans(2)(3)                           137,484      3,304.8    9.64%       129,455       3,190.3    9.75%
                                    ---------     --------               --------      --------
Total earning assets/total
interest income                       189,520     $4,120.3    8.71%       171,749      $3,850.8    8.88%
                                                  --------                             --------
Cash & due from banks                   7,071                               6,962
All other assets                        8,451                               7,162
Allowance for loan loss                (3,366)                             (3,147)
                                    ----------                           --------
   Total assets                      $201,676                            $182,726
                                     ========                            ========
Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts              $  82,114     $  554.7    2.74%     $  75,335     $   540.2    2.88%
Time                                   67,090        925.7    5.60%        60,504         854.3    5.68%
Fed funds purchased                         0            0                      0             0
                          
Total interest bearing
  liabilities/total interest
  expense                             149,204    $ 1,480.4    4.02%       135,839      $1,394.5    4.13%
                                                 ---------                             --------
expense
Non-interest bearing deposits          30,932                              27,357
All other liabilities                   1,611                               1,623
Shareholders' Equity                   19,929                              17,907
                                    ---------                            --------
Total liabilities and
   shareholders' equity              $201,676                            $182,726
                                     ========                            --------
Interest spread                                               4.69%                                4.75%
                                                              =====                                =====
Net interest income-FTE                          $ 2,639.9                            $ 2,456.3
                                                 =========                            =========
Net interest margin                                           5.54%                                5.62%
                                                              =====                                =====
</TABLE>
    (1)   Average   yields  in  the  above   table  have  been   adjusted  to  a
          tax-equivalent  basis  using a 34% tax rate and  exclude the effect of
          any market value  adjustments  recorded  under  Statement of Financial
          Standards No. 115.
    (2)   For  purposes  of the  computation  above,  non-accrual  loans are not
          included in the average daily loan balances.
    (3)   Interest  on loans includes  origination fees totaling $75,000 in 1997
          and $112,000 in 1996.


Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased  approximately  $270,000 in
the first quarter of 1997 compared to that of 1996.  Income from the sale of Fed
Funds declined nearly $20,000 both because average balances were $1,300,000 less
than the prior year and because yields were 4 basis points lower in 1997.
<PAGE>
In the first  quarter,  income on  taxable  securities  increased  approximately
$130,000 both because the rate increased 10 basis points and the average balance
increased  $8,000,000.  Income from tax-exempt securities increased $46,000 even
though the yield fell 36 basis  points  because  the average  balance  increased
approximately  $3,000,000.  The  increase  in rates on  taxable  securities  was
primarily  due to  U.S.  Treasury  bonds  which  are  purchased  with  two  year
maturities.  The yields on the government bonds purchased this year have usually
exceeded the yields on maturing bonds. On the other hand, the Company  generally
purchases  tax-exempt bonds with ten year  maturities.  Rates are lower on bonds
being  purchased  today than those earned ten years ago on the tax-exempt  bonds
which they are replacing.

For the first quarter of this year,  tax  equivalent  loan interest was $100,000
higher  than the same  period in 1996 due to an  increase  in  average  balances
exceeding  $8,000,000 while rates declined 11 basis points.  The growth in loans
was primarily in commercial loans where average balances increased approximately
$7,500,000  (9%).  Average  consumer  loans also increased  $2,300,000  (12%). A
strong local economy and marketing  efforts by the Bank have contributed to loan
growth.  Average real estate mortgage loans declined  $1,800,000 (7%) due to the
Bank's policy of selling fixed rate mortgage  loans with fifteen year and longer
maturities.  The Bank retains  variable  rate  mortgages  but there has not been
sufficient  demand for these  products  to offset the run off of older  mortgage
loans paying down.


Interest Bearing Liabilities/Interest Expense
In the first quarter of 1997, interest expense increased  approximately  $86,000
due to an increase in average balances of more than $13,400,000 partially offset
by a decrease  in rates of 11 basis  points.  Savings and NOW  interest  expense
increased $15,000 because average balances increased  $6,800,000  although rates
declined 14 basis points.  Interest on time deposits  increased  $71,000 in 1997
over the prior year.  Balances  increased  $6,600,000  but the rate paid on time
deposits declined 8 basis points in the first quarter of 1997 from that of 1996.
The deposit growth was principally the result of the Bank's marketing efforts to
increase its share of Livingston County deposits.


Liquidity
Liquidity is monitored by the Bank's Asset/Liability Management Committee (ALCO)
which  meets  at least  monthly.  ALCO  developed,  and the  Board of  Directors
approved,  a liquidity  policy  which  requires a minimum 15%  liquidity  ratio.
Throughout 1996 and the first three months of 1997 the Company's liquidity ratio
exceeded 20%.

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
<PAGE>
$100,000 certificates,  which amounted to approximately $12,000,000 at March 31,
1997, consists of local depositors known to the Bank.

It is the  intention of the Bank's  management  to handle  unexpected  liquidity
needs  through its Federal Funds  position.  The goal is to maintain a daily Fed
Funds  balance  sufficient  to cover  required  cash  draws.  The Bank's  policy
requires all purchases of Fed Funds to be approved by senior  management so that
liquidity  needs are known.  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.  During the first three  months of the year,  the Fed
Funds Sold balances averaged approximately $4,000,000.

In addition to liquidity issues, ALCO discusses the current economic outlook and
its impact on the Bank and current  interest rate forecasts.  Actual results are
compared to budget in terms of growth and income.  A yield and cost  analysis is
done to monitor interest margin.  Various ratios are discussed including capital
ratios and liquidity.  The quality of the loan portfolio is reviewed in light of
the current  allowance.  The rate sensitivity  report is analyzed and strategies
are  created to attempt to produce  the desired  results.  The rate  sensitivity
report  describes  the  repricing  schedule  for  various  asset  and  liability
categories.
<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 ............................   $ 58,279   $ 29,866    $ 46,625   $  6,720    $141,490
 Securities .......................      3,500      9,509      26,846      9,112      48,967
 Fed funds ........................        300                                           300
 Other assets .....................     ______     ______      ______     14,980      14,980
   Total assets ...................   $ 62,079   $ 39,375    $ 73,471   $ 30,812    $205,737

Liabilities & Shareholders' Equity:
 Demand, Savings & NOW ............   $ 33,435   $ 12,669    $ 42,166   $ 27,524    $115,794
 Time .............................     17,257     29,891      21,023          7      68,178
 Other liabilities and equity .....     ______     ______      ______     21,765      21,765
    Total liabilities and equity ..   $ 50,692   $ 42,560    $ 63,189   $ 49,296    $205,737

Rate sensitivity gap and ratios:
   Gap for period .................   $ 11,387   $ (3,185)   $ 10,282   $(18,484)
   Cumulative gap .................     11,387      8,202      18,484

Cumulative rate sensitive ratio ...       1.22       1.09        1.12       1.00
Dec. 31, 1996 rate sensitive ratio        1.45       1.22        1.16       1.00
</TABLE>
Given the asset  sensitive  position of the Bank at March 31, 1997,  if interest
rates  decrease 200 basis  points and  management  did not  respond,  management
estimates  that  annualized  net interest  income would  decrease  approximately
$160,000,  while a similar  increase in rates would cause net interest income to
increase  by a like  amount.  December  31 ratios are  restated  to reflect  the
results of management's analysis of
<PAGE>
the rate  sensitivity  of  demand,  savings  and NOW  balances.  Although  these
liabilities 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                          First Quarter
(in thousands)                                  1997         1996
<S>                                             <C>          <C>
         Total                                  $112         $112
                                                ====         ====
</TABLE>
The  provision  for loan  losses  of  $112,000  remained  the same for the first
quarter of 1997 as it was the prior year.  In March of 1997,  the  allowance for
loan loss as a percent of loans was 2.39%,  down from 2.46% a year earlier.  For
the  first  three  months  of 1997,  the Bank had net  charge  offs of  $60,000,
compared  with net  recoveries  of $14,000 last year.  Non-accrual,  past due 90
days, and renegotiated  loans were 1.05% and .73% of total loans  outstanding at
March 31, 1997 and 1996 respectively.

Impaired  loans, as defined by Statement of Financial  Accounting  Standards No.
114,  Accounting by Creditors for  Impairment of a Loan,  totaled  approximately
$3,900,000  at March 31, 1997,  compared to $820,000 at December  31, 1996,  and
included non-accrual, and past due 90 days other than homogenous residential and
consumer  loans,  and an additional  $2,500,000 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 be uncollectible.

Management  assessment  of  the  allowance  for  loan  losses  is  based  on the
composition of the loan portfolio, an evaluation of specific credits, historical
loss  experience,  the level of  nonperforming  loans  and loans  that have been
identified as impaired. Externally, the local economy and events or trends which
might negatively impact the loan portfolio are also considered. Certain impaired
loans  with  a  balance  of  $3,800,000  had  specific  reserves  calculated  in
accordance with SFAS No. 114 of $600,000 at March 31, 1997.





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,
1997 compared to December 31, 1996.  The loans  categorized  as ninety days past
due and still accruing are all well secured and in the process of collection.
<PAGE>
<TABLE>
Nonperforming Assets                                          Quarter Ended                Year Ended
(in thousands)                                                March 31, 1997            December 31, 1996
                                                              --------------            -----------------
<S>                                                             <C>                          <C>
Non-accrual loans                                               $1,374                        $109
90 days or more past due and still accruing                        118                         448
                                                                ------                         ---
         Total nonperforming loans                               1,492                         557
Other real estate                                                  721                         723
                                                                ------                       -----
         Total nonperforming assets                             $2,213                      $1,280

Nonperforming loans as a percent of total loans                  1.05%                        .41%
Nonperforming assets as a percent of total loans                 1.56%                        .94%
Nonperforming loans as a percent of the loan loss reserve          44%                         17%
</TABLE>

The following  table sets forth loan balances and  summarizes the changes in the
allowance for loan losses for the first three months of 1997 and 1996.
<TABLE>
                                                                      Year to date         Year to date
Loans:                                                               March 31, 1997       March 31, 1996
(dollars in thousands)
<S>                                                                      <C>                   <C>
   Average daily balance of loans for the year to date                   137,484               129,455
   Amount of loans (gross) outstanding at end of the
   quarter                                                               141,490               131,202
Allowance for loan losses:
   Balance at beginning of year                                            3,335                 3,097
   Loans charged off:
      Real Estate Mortgage                                                     0                     0
      Commercial                                                              39                     0
      Consumer                                                                45                     8
         Total charge-offs                                                    84                     8
Recoveries of loans previously charged off:
      Real Estate Mortgage                                                     1                     0
      Commercial                                                              13                     0
      Consumer                                                                10                    22
         Total recoveries                                                     24                    22

Net loans charged off (recoveries)                                            60                   (14)
Additions to allowance charged to operations                                 112                   112
         Balance at end of quarter                                        $3,387                $3,223

Ratios:
  Net loans charged off (annualized) to average
  loans outstanding                                                         .17%                 (.04%)
  Allowance for loan losses to loans outstanding                           2.39%                 2.46%
</TABLE>
<PAGE>
Although  nonperforming loans have increased in 1997 compared to the prior year,
management  believes it has been quite aggressive in recognizing  problem loans.
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. In addition, net charge offs for the Bank
have been historically low.
<TABLE>
Non-interest Income                     First Quarter
(in thousands)                        1997          1996
                                      ----          ----
<S>                                   <C>           <C>
Total                                 $428          $362
                                      ====          ====
</TABLE>
Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  other operating  income,  and gain(loss) on sale of assets,  increased by
$66,000  (18%) in the first  quarter of 1997  compared to the same period in the
previous year.  Service charge income increased  $18,000 (5%) primarily  because
service  charges on loans  increased.  Gains from loan sales increased more than
$40,000  from the $5,500 loss  realized  in the first  quarter of last year to a
nearly $38,000 gain in 1997. In the first quarter of 1996,  $1,800,000 mortgages
were sold while $3,200,000 mortgages were sold in the first quarter of 1997.
<TABLE>
Non-interest Expense                    First Quarter
(in thousands)                        1997         1996
<S>                                  <C>          <C>
Total                                $1,599       $1,397
                                     ======       ======
</TABLE>
Non-interest  expense  increased  $200,000  (14%) in the first  quarter  of 1997
compared  to the same  period  last year.  Contributing  to this  increase  were
increases of $95,000  (12%) in salaries,  $30,000  (26%) in  occupancy,  $21,000
(80%) in fees, and $50,000 (21%) in other. Salaries increased,  in part, because
some officer level positions were filled and also because an analysis of jobs in
the bank completed late in 1996 showed that some salary adjustments needed to be
made. Occupancy costs increased due to depreciation of building renovations done
at the Bank's main office and Brighton  branch and due to increased cost of snow
removal.  Fees for  services  increased  principally  because the Bank has hired
consultants  for selected  special  projects.  Other expense is higher than last
year partially  because the commitment the Bank makes to contribute 2% of pretax
income to the communities it serves is being accrued throughout the year in 1997
rather than being expensed as incurred as it was in 1996.  Further  increases in
salary  and  other  expense,  related  to  starting  a  trust  department,   are
anticipated  as the year  progresses.  The Bank has  hired a trust  officer  and
expects to have trust powers before the end of the second quarter.
<PAGE>
<TABLE>
Income Tax Expense                             First Quarter
(in thousands)                               1997         1996
<S>                                          <C>          <C>
         Total                               $385         $387
                                             ====         ====
</TABLE>
Fluctuations  in income taxes  resulted  primarily  from changes in the level of
profitability and in variations in the amount of tax-exempt income.
<TABLE>
Capital (in thousands)                           March 31, 1997                    December 31, 1996
                                                 --------------                    -----------------
<S>                                                <C>                                  <C>
Shareholders' Equity*                              $20,221                              $19,559
Ratio of Equity to Total Assets                      9.79%                                9.82%
</TABLE>
*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial  Accounting  Standards  No. 115 amounting to $10,000 at March 31, 1997
and $38,000 at December 31, 1996.

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 $660,000 (3%) during the first three
months of the year.  This  increase  was the result of net income  earned by the
company reduced by dividends paid of $236,000.

The Federal  Reserve Board provides  guidelines  for the  measurement of capital
adequacy. The Company's capital, as adjusted under these guidelines, is referred
to as risk-based capital. The Company's Tier 1 risk-based capital ratio at March
31, 1997 was 14.95%,  and total risk-based capital was 16.20%. At March 31, 1996
these  ratios were 14.35% and 15.60%  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 Company's leverage ratio
was 10.01% at March 31, 1997 and 9.78% in 1996.  The minimum  standard  leverage
ratio is 3% but financial institutions are expected to maintain a leverage ratio
1 to 2 percentage points above the 3% minimum.

In the  coming  year,  the Bank will  likely  spend in excess of  $1,000,000  on
various technology needs. In addition, the Bank has received regulatory approval
to  establish a new branch in the  northwest  part of Brighton  and is currently
looking for a site.  These projects will be financed from  internally  generated
funds.
<PAGE>
                           PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits
       There are none applicable.

(b)  Reports on Form 8-K:
       There were no reports on Form 8-K filed during the first quarter of 1997.








                                   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, 1997 to be signed on its behalf by the undersigned hereunto duly
authorized.


                  FNBH BANCORP, INC.



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




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


DATE:  May 12, 1997
<PAGE>