# SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                                      OF THE SECURITIES EXCHANGE ACT OF 1934
                                   For the quarterly period ended June 30, 2003
                                                        OR
                               [     ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
                                      OF THE SECURITIES EXCHANGE ACT OF 1934
                                For the transition period from ________ to _______
                                          Commission file number 0-25752

FNBH BANCORP, INC.

                              (Exact name of registrant as specified in its charter)

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

101 East Grand River, Howell, Michigan 48843

                                (Address of principal executive offices) (Zip Code)

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

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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: 3,164,888
shares of the Companys Common Stock (no par value) were outstanding as of August 13,
2003.



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INDEX

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |             | PageNumber
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------- | ----------
|Part I.  | Financial Information (unaudited):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | Item 1.                                                                                         
Interim Financial Statements:                                                                          
Consolidated Balance Sheets as of June 30, 2003 and Dec. 31, 2002.......................................                            
Consolidated Statements of Income, three months ended                                                  
June 30, 2003 and 2002, and six months ended June 30, 2003 and 2002.................................
Consolidated Statement of Stockholders' Equity and Comprehensive                                      
Income for three months ended June 30, 2003 and 2002..........................................................                       
Consolidated Statement of Stockholders' Equity and Comprehensive                                      
Income for six months ended June 30, 2003 and 2002..............................................................                       
Consolidated Statements of Cash Flows for six months ended                                           
June 30, 2003 and 2002............................................................................................................
Notes to Interim Consolidated Financial Statements................................................................ | 4
5
6
7
8
9
|         | Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations.........................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 10         
|         | Item 3.
Quantitative and Qualitative Disclosures about Market Risk...................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 23         
|Part II. | Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|         | Item 4........................................................................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 23         
|         | Item 6........................................................................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 24         
|         | Signatures...................................................................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 25         

2

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PART I - FINANCIAL INFORMATION

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

3

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# FNBH BANCORP, INC. AND
SUBSIDIARY

`Consolidated Balance Sheets (unaudited)                                              June 30     December 31
---------------------------                                                             2003            2002
Assets                                                                                  ----            ----
Cash and due from banks                                                         $ 19,327,428    $ 13,389,226
Short term investments                                                             7,948,129      19,649,178
                                                                                   ---------      ----------
   Total cash and cash equivalents                                                27,275,557      33,038,404

Certificates of deposit                                                            2,716,000       3,880,000
Investment securities held to maturity, net (fair value of $16,880,000
   at June 30, 2003 and $18,011,000 at Dec. 31, 2002)                             15,645,029      16,863,210
Investment securities available for sale, at fair value                           19,770,192      16,753,001
Mortgage-backed securities held to maturity, net (fair value of
   $26,000 at Dec. 31, 2002)                                                               0          26,033
Mortgage-backed securities available for sale, at fair value                       6,224,684       9,924,802
FHLBI and FRB stock, at cost                                                       1,057,450       1,044,250
                                                                                   ---------       ---------
      Total investment securities                                                 42,697,355      44,611,296

Loans:
   Commercial                                                                    277,864,596     263,002,466
   Consumer                                                                       32,987,054      33,666,705
   Real estate mortgages                                                          34,078,196      31,291,141
                                                                                  ----------      ----------
      Total loans                                                                344,929,846     327,960,312
   Less unearned income                                                              886,073         843,052
   Less allowance for loan losses                                                  5,882,437       5,794,399
                                                                                   ---------       ---------
      Net loans                                                                  338,161,336     321,322,861

Premises and equipment - net                                                      10,880,572      10,256,828
Land available for sale - net                                                      1,400,290       1,530,290
Other real estate owned, held for sale                                                95,000         738,206
Accrued interest and other assets                                                  5,273,353       5,308,124
                                                                                   ---------       ---------
      Total assets                                                              $428,499,463    $420,686,009
                                                                                ============    ============

Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                  $ 73,854,783    $ 62,231,909
   NOW                                                                            38,725,882      41,423,298
   Savings and money market                                                      128,765,108     138,961,869
   Time                                                                          134,293,349     131,455,135
                                                                                 -----------     -----------
      Total deposits                                                             375,639,122     374,072,211
Short term borrowings                                                              5,000,000               0
Other borrowings                                                                   5,327,708       5,569,255
Accrued interest, taxes, and other liabilities                                     3,255,942       3,464,929
                                                                                   ---------       ---------
      Total liabilities                                                          389,222,772     383,106,395
Stockholders' Equity
Common stock, no par value.  Authorized 4,200,000 shares; 3,164,647
shares issued and outstanding at June 30, 2003 and 3,157,798 shares
issued and outstanding at Dec. 31, 2002                                            5,622,202       5,465,089
Retained earnings                                                                 33,256,070      31,685,849
Unearned management retention plan                                                 (228,649)       (247,282)
Accumulated other comprehensive income, net                                          627,068         675,958
                                                                                     -------         -------
      Total stockholders' equity                                                  39,276,691      37,579,614
                                                                                  ----------      ----------
      Total liabilities and stockholders' equity                                $428,499,463    $420,686,009
                                                                                ============    ============`

See notes to interim consolidated financial statements

4

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# FNBH BANCORP, INC. AND SUBSIDIARY

`Consolidated Statements of Income                             Three Months Ended June          Six Months Ended June
---------------------------------                                  2003          2002            2003           2002
Unaudited                                                          ----          ----            ----           ----
Interest and dividend income:
   Interest and fees on loans                                $5,661,240    $5,822,468     $11,322,978    $11,439,994
   Interest and dividends on investment securities:
      U.S. Treasury and agency securities                       221,761       312,293         450,695        656,265
      Obligations of state and political subdivisions           193,929       208,604         396,028        427,325
      Corporates                                                 47,003       104,507          94,472        233,433
       Other securities                                          14,609        16,714          14,936         28,587
   Interest on certificates and other bank deposits              43,115        54,008         121,495        130,371
                                                                 ------        ------         -------        -------
      Total interest and dividend income                      6,181,657     6,518,594      12,400,604     12,915,975
                                                              ---------     ---------      ----------     ----------

Interest expense:
   Interest on deposits                                       1,452,969     1,827,796       3,077,053      3,843,410
   Interest on other borrowings                                  98,599       197,575         196,341        315,240
                                                                 ------       -------         -------        -------
      Total interest expense                                  1,551,568     2,025,371       3,273,394      4,158,650
                                                              ---------     ---------       ---------      ---------

      Net interest income                                     4,630,089     4,493,223       9,127,210      8,757,325

Provision for loan losses                                       275,000             0         600,000              0
                                                                -------      --------        --------       --------
      Net interest income after provision for loan losses     4,355,089     4,493,223       8,527,210      8,757,325
                                                              ---------     ---------       ---------      ---------

Non-interest income:
   Service charges                                              676,043       740,641       1,423,196      1,384,444
   Gain on sale of loans                                         96,711        47,527         238,133        154,888
   Gain on sale/call of investments                               3,823         3,488           3,823          6,269
   Trust fees                                                    70,360        63,418         124,432        108,822
   Other                                                         69,237       (3,010)          63,436        (7,009)
                                                                 ------       -------          ------        -------
      Total non-interest income                                 916,174       852,064       1,853,020      1,647,414
                                                                -------       -------       ---------      ---------

Non-interest expense:
   Salaries and employee benefits                             1,790,258     1,700,741       3,579,640      3,265,828
   Net occupancy                                                243,462       231,831         479,783        437,662
   Equipment expense                                            291,490       212,564         572,475        423,053
   Professional and service fees                                452,939       485,574         592,554        620,595
   Printing and supplies                                         92,062        87,238         159,517        159,293
   Advertising                                                   99,769        67,497         171,735        153,979
   Other                                                        392,420       261,611       1,024,489        786,746
                                                                -------       -------       ---------        -------
      Total non-interest expense                              3,362,400     3,047,056       6,580,193      5,847,156
                                                              ---------     ---------       ---------      ---------

Income before federal income taxes                            1,908,863     2,298,231       3,800,037      4,557,583

Federal income taxes                                            581,450       709,100       1,154,975      1,392,900
                                                                -------       -------       ---------      ---------
      Net income                                             $1,327,413    $1,589,131      $2,645,062     $3,164,683
                                                             ==========    ==========      ==========     ==========

Per share statistics*
   Basic EPS                                                       $.42          $.51            $.84          $1.01
   Diluted EPS                                                     $.42          $.51            $.84          $1.01
   Dividends                                                       $.17         $.163            $.34          $.288`

*Based on average shares outstanding.
See Notes to Interim Consolidated Financial Statements. Shares restated to give effect of
a 2 for 1 stock split, payable as a dividend of one share for each share of company stock
held of record July 1, 2002, paid July 10, 2002.

See notes to interim consolidated
financial statements.

5

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FNBH BANCORP, INC. AND
SUBSIDIARYConsolidated Statement
of Stockholders Equity and Comprehensive Income For the Three Months
Ended June 30, 2003 and 2002 (Unaudited)

`Unearned        Accumulated
                                                                                         Management          Other
                                                             Common       Retained       Retention       Comprehensive
                                                             Stock        Earnings          Plan         Income (loss)        Total
                                                             -----        --------          ----         -------------        -----
Balances at March 31, 2002                                  $5,256,419    28,543,423     (209,801)         (103,820)         33,486,221
Issued 5,246 shares for management retention plan              109,799                   (109,799)                                    0
Amortization of management retention plan                                                  19,226                                19,226
Issued 2,448 shares for employee purchase plan                  40,931                                                           40,931
Issued 218 shares for current directors fees                     4,741                                                            4,741
Issued 1,128 shares for directors' variable fee plan            23,609                                                           23,609
Comprehensive income:
  Net income                                                               1,589,131                                          1,589,131
  Change in unrealized gain on debt securities
  available for sale, net of tax effect                                                                     406,184             406,184
                                                                                                                                -------
        Total comprehensive income                                                                                            1,995,315
                                                                                                                              =========
Cash dividends (16.25(cent)per share)                                      (512,503)                                          (512,503)
                                                            ----------     ---------      -------           -------           ---------
Balances at June 30, 2002                                   $5,435,499    29,620,051     (300,374)          302,364          35,057,540
                                                            ==========    ==========     =========          =======          ==========

                                                                                          Unearned        Accumulated
                                                                                         Management          Other
                                                             Common       Retained       Retention       Comprehensive
                                                             Stock        Earnings          Plan         Income (loss)        Total
                                                             -----        --------          ----         -------------        -----
Balances at March 31, 2003                                  $5,488,298    32,466,638     (220,735)          600,281          38,334,482
Issued 3,036 shares for management retention plan               72,454                    (72,454)                                    0
Amortization of management retention plan                                                  64,540                                64,540
Issued 757 shares for employee purchase plan                    15,511                                                           15,511
Issued 251 shares for current directors fees                     5,943                                                            5,943
Issued 1,689 shares for directors' variable fee plan            39,996                                                           39,996
Comprehensive income:
  Net income                                                               1,327,413                                          1,327,413
  Change in unrealized gain (loss) on debt securities
  available for sale, net of tax effect                                                                      26,787              26,787
                                                                                                                                 ------
        Total comprehensive income                                                                                            1,354,200
                                                                                                                              =========
Cash dividends (17.0(cent)per share)                                       (537,981)                                          (537,981)
                                                            ----------     ---------      -------           -------           ---------
Balances at June 30, 2003                                   $5,622,202    33,256,070     (228,649)          627,068          39,276,691
                                                            ==========    ==========     =========          =======          ==========`

See notes to interim consolidated
financial statements

6

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FNBH BANCORP, INC. AND
SUBSIDIARYConsolidated Statement
of Stockholders Equity and Comprehensive Income For the Six Months
Ended June 30, 2003 and 2002 (Unaudited)

`Unearned         Accumulated
                                                                                         Management           Other
                                                              Common       Retained       Retention       Comprehensive
                                                              Stock        Earnings         Plan          Income (loss)        Total
                                                              -----        --------         ----          -------------        -----
Balances at December 31, 2001                                $5,246,770    27,361,215     (231,143)          26,961           32,403,803
Issued 5,246 shares for management retention plan               109,799                   (109,799)                                    0
Amortization of management retention plan                                                   40,568                                40,568
Issued 2,970 shares for employee purchase plan                   50,580                                                           50,580
Issued 218 shares for current stock directors fees                4,741                                                            4,741
Issued 1,128 shares for directors' variable fee plan             23,609                                                           23,609
Comprehensive income:
  Net income                                                                3,164,683                                          3,164,683
  Change in unrealized gain (loss) on debt securities
  available for sale, net of tax effect                                                                      275,403             275,403
                                                                                                                                 -------
        Total comprehensive income                                                                                             3,440,086
                                                                                                                               =========
Cash dividends (28.75(cent)per share)                                       (905,847)                                          (905,847)
                                                             ----------     ---------      -------           -------           ---------
Balances at June 30, 2002                                    $5,435,499    29,620,051     (300,374)          302,364          35,057,540
                                                             ==========    ==========     =========          =======          ==========

                                                                                          Unearned         Accumulated
                                                                                         Management           Other
                                                              Common       Retained       Retention       Comprehensive
                                                              Stock        Earnings         Plan          Income (loss)        Total
                                                              -----        --------         ----          -------------        -----
Balances at December 31, 2002                                $5,465,089    31,685,849     (247,282)          675,958          37,579,614
Issued 3,036 shares for management retention plan                72,454                    (72,454)                                    0
Amortization of management retention plan                                                   91,087                                91,087
Issued 1,674 shares for employee purchase plan                   33,970                                                           33,970
Issued 450 shares for current stock directors fees               10,693                                                           10,693
Issued 1,689 shares for directors' variable fee plan             39,996                                                           39,996
Comprehensive income:
  Net income                                                                2,645,062                                          2,645,062
  Change in unrealized gain (loss) on debt securities
  available for sale, net of tax effect                                                                     (48,890)            (48,890)
                                                                                                                                --------
        Total comprehensive income                                                                                             2,596,172
                                                                                                                               =========
Cash dividends (34.0(cent)per share)                                      (1,074,841)                                        (1,074,841)
                                                             ----------   -----------      -------           -------         -----------
Balances at June 30, 2003                                    $5,622,202    33,256,070     (228,649)          627,068          39,276,691
                                                             ==========    ==========     =========          =======          ==========`

See notes to interim consolidated
financial statements

7

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# FNBH BANCORP, INC. AND
SUBSIDIARY

`Consolidated Statements of Cash Flows
-------------------------------------
Unaudited                                                                          Six months ended June 30
                                                                                        2003            2002
                                                                                        ----            ----
Cash flows from operating activities:
   Net income                                                                     $2,645,062      $3,164,683
   Adjustments to reconcile net income to net cash provided by operating activities:
      Provision for loan losses                                                      600,000               0
      Depreciation and amortization                                                  555,875         440,262
      Net amortization on investment securities                                       74,807         132,304
      Earned portion of management retention plan                                     91,087          40,568
      Loss on disposal of equipment                                                    3,668               0
      Gain on sale of investments                                                    (3,823)         (6,269)
      Gain on sale of loans                                                        (238,133)       (154,888)
      Gain on sale of other real estate owned                                       (22,710)               0
      Proceeds from sale of loans                                                 14,168,518       9,937,160
      Origination of loans held for sale                                        (14,470,200)    (10,450,208)
      Proceeds from sale of other real estate owned, held for sale                   760,916               0
      (Increase) decrease in accrued interest income and other assets                 69,771     (1,168,585)
      Decrease in accrued interest, taxes, and other liabilities                   (183,887)       (272,199)
                                                                                   ---------       ---------
         Net cash provided by operating activities                                 4,050,951       1,662,828
                                                                                   ---------       ---------

Cash flows from investing activities:
   Purchases of available for sale securities                                    (3,008,471)     (6,035,081)
   Purchases/Stock dividend FHLBI stock                                             (13,200)       (211,500)
   Purchases of held to maturity securities                                        (234,270)               0
   Proceeds from sales of available for sale securities                                    0       5,113,970
   Proceeds  from maturities and calls of available for sale securities            1,453,350       3,000,000
   Proceeds from mortgage-backed securities paydowns-available for sale            3,545,530       1,454,972
   Proceeds from maturities and calls of held to maturity securities                       0       1,169,000
   Proceeds from mortgage-backed securities paydowns-held to maturity                 26,028          32,197
   Purchases of brokered CDs                                                     (1,089,000)               0
   Maturity of brokered CDs                                                        2,253,000         291,000
   Purchase of loans                                                                       0     (1,671,644)
   Net increase in loans                                                        (16,898,660)    (24,399,912)
   Capital expenditures                                                          (1,183,287)     (1,250,225)
                                                                                 -----------     -----------
         Net cash used in investing activities                                  (15,148,980)    (22,507,223)
                                                                                ------------    ------------

Cash flows from financing activities:
   Net increase (decrease) in deposits                                             1,566,911    (10,933,172)
   Increase in brokered CDs                                                                0       4,037,000
   Increase in borrowings                                                          5,000,000      11,400,000
   Payments on FHLB note                                                           (241,547)       (223,656)
   Shares issued for employee purchase and directors compensation                     84,659          78,930
   Dividends paid                                                                (1,074,841)       (905,847)
                                                                                 -----------       ---------
         Net cash provided by financing activities                                 5,335,182       3,453,255
                                                                                   ---------       ---------

Net decrease in cash and cash equivalents                                        (5,762,847)    (17,391,140)

Cash and cash equivalents at beginning of year                                    33,038,404      34,642,995
                                                                                  ----------      ----------
Cash and cash equivalents at end of period                                       $27,275,557     $17,251,855
                                                                                 ===========     ===========

Supplemental disclosures:
   Interest paid                                                                  $3,275,619     $ 4,101,799
   Federal income taxes paid                                                       1,200,000       1,265,000
   Loans transferred to other real estate                                             95,000       1,285,018
   Loans charged off                                                                 604,264         534,403`

See notes to interim consolidated
financial statements

8

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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 (GAAP) for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required by GAAP for
complete financial statements.

1.    
          In the opinion of management of the Registrant, the unaudited consolidated
          financial statements filed with this Form 10-Q contain all adjustments
          (consisting of only normal recurring accruals) necessary to present fairly the
          consolidated financial position of the Registrant as of June 30, 2003, and
          consolidated results of operations for the three months and six months ended
          June 30, 2003 and 2002 and consolidated cash flows for the six months ended June
          30, 2003 and 2002.

2.    
          The results of operations for the three months and six months ended June 30,
          2003 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 2002
          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 $6,498,000 at June 30, 2003, $1,600,000
          at June 30, 2002, and $4,097,000 at December 31, 2002. (See Managements
          Discussion and Analysis of financial condition and results of operations).

6.    
          Basic and dilutive earnings per share (EPS) are computed by dividing net income
          by the respective weighted average common shares outstanding.

`Second Quarter                    Year to Date
                                                       2003            2002             2003            2002
                                                       ----            ----             ----            ----
Net income                                       $1,327,413      $1,589,131       $2,645,062      $3,164,683

Shares outstanding (basic)                        3,162,563       3,150,209        3,160,297       3,148,492
Dilutive shares                                           0               0                0               0
                                                  ---------       ---------        ---------       ---------
   Shares outstanding (diluted)                   3,162,563       3,150,209        3,160,297       3,148,492
Earnings per share:
   Basic EPS                                           $.42            $.51             $.84          $ 1.01
   Diluted EPS                                         $.42            $.51             $.84           $1.01`

9

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7.    
          All references to share and per share data have been restated to give effect of
          a two for one stock split, payable as a dividend of one share for each share of
          company stock held of record July 1, 2002, paid July 10, 2002.

Item 2.

Managements
Discussion and Analysisof Financial
Condition and Results of OperationsInterim Financial
Statements

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

The Company, a Michigan business
corporation, is a one bank holding company, which owns all of the outstanding capital
stock of First National Bank in Howell (the Bank) and all of the outstanding stock of HB
Realty Co., a subsidiary which owns real estate. The following is a discussion of the
Companys results of operations for the three months and six months ended June 30,
2003 and 2002, and also provides information relating to the Companys financial
condition, focusing on its liquidity and capital resources.

`Earnings  (in thousands                       Second Quarter                              Year-to-Date
--------                                    2003         2002                            2003      2002
except per share data)                      ----         ----                            ----      ----

Net income                                $1,327       $1,589                          $2,645    $3,165
Net Income per Share                      $  .42       $  .51                          $  .84    $ 1.01`

Net income for the three months ended
June 30, 2003 decreased approximately $262,000 (17%) compared to the same period last
year. In the second quarter of the current year net interest income increased $137,000
(3%), non-interest income grew $64,000 (8%), and the provision for federal income taxes
decreased $128,000 (18%). Offsetting these favorable occurrences was an increase in the
provision for loan losses of $275,000 and an increase in non-interest expense of $315,000
(10%).

Net income for the first half of the
year decreased $520,000 (16%) from that reported last year. Contributing to the decline in
2003 earnings was a provision for loan losses of $600,000 in 2003 compared to no provision
in 2002 as well as an increase in non-interest expense of $733,000 (13%). Partially
offsetting these decreases in income were increases of $370,000 (4%) in net interest
income, increased non-interest income of $206,000 (13%) and a decrease of $238,000 (17%)
in the provision for federal income tax.

10

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`Net Interest Income                                   Second Quarter                         Year-to-Date
-------------------                                 2003         2002                      2003        2002
(in thousands)                                      ----         ----                      ----        ----
Interest Income                                   $6,182       $6,518                   $12,400      $12,916
Interest Expense                                   1,552        2,025                     3,273        4,159
                                                  ------       ------                    ------       ------
Net Interest Income                               $4,630       $4,493                    $9,127       $8,757`

The following table illustrates some
of the significant factors contributing to the increase in net interest income for the
period and for the year to date.

TABLE 1 INTEREST YIELDS AND
COSTS (in thousands) June 30, 2003 and 2002

`---------------Second Quarter Averages----------------
                                                     2003                                 2002
                                         Average                              Average
                                         Balance     Interest      Rate       Balance     Interest       Rate
                                         -------     --------      ----       -------     --------       ----
Assets:
Short term investments                   $ 7,977       $ 43.1     2.14%        $7,054       $ 54.0      3.03%
Securities:  Taxable                      27,143        283.3     4.18%        36,692        433.5      4.73%
             Tax-exempt(1)                16,018        279.1     6.97%        17,064        296.5      6.95%
Loans(2)(3)                              338,824      5,696.6     6.67%       309,101      5,862.3      7.52%
                                         -------      -------                 -------      -------
Total earning assets/total
interest income                          389,962     $6,302.1     6.41%       369,911     $6,646.3      7.13%
                                                     --------                             --------
Cash & due from banks                     12,707                               13,942
All other assets                          18,357                               18,125
Allowance for loan loss                  (5,964)                              (5,483)
                                         -------                              -------
   Total assets                         $415,062                             $396,495
                                        ========                             ========
Liabilities and
  Stockholders' Equity
Interest bearing deposits:
Savings & NOW accounts                  $167,021      $ 359.6      .86%     $ 148,872      $ 557.6      1.50%
Time                                     134,146      1,093.3     3.27%       126,998      1,270.2      4.01%
Short term borrowings                        155           .3      .67%        18,563         94.8      2.02%
FHLB Advances                              5,328         98.3     7.30%         5,569        102.8      7.30%
                                           -----         ----                   -----        -----
Total interest bearing
liabilities/total interest expense       306,650     $1,551.5     2.03%       300,002     $2,025.4      2.70%
                                                     --------                             --------
Non-interest bearing deposits             65,935                               58,633
All other liabilities                      3,454                                3,509
Stockholders' Equity                      39,023                               34,351
                                          ------                               ------
Total liabilities and
   shareholders' equity                 $415,062                             $396,495
                                        ========                             ========
Interest spread                                                   4.39%                                 4.43%
                                                                  =====                                 =====
Net interest income-FTE                              $4,750.6                             $4,620.9
                                                     ========                             ========
Net interest margin                                               4.82%                                 4.94%
                                                                  =====                                 =====`

|(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 Accounting Standards No. 115.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | For purposes of the computation above, non-accruing loans are included in the
                    average daily loan balances.
|--- | ------------------------------------------------------------------------------------------------------------------------------

|(3) | Interest on loans includes origination fees totaling $172,000 in 2003 and
          $199,000 in 2002.
|--- | -----------------------------------------------------------------------------------------------------

11

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`----------------Year to Date Averages-----------------
                                                     2003                                 2002
                                        Average                               Average
                                        Balance       Interest     Rate       Balance     Interest      Rate
                                        -------       --------     ----       -------     --------      ----
Assets:
Short term investments                 $ 13,404        $ 120.9    1.79%       $ 9,424      $ 128.4     2.71%
Securities:  Taxable                     27,093          560.1    4.13%        38,392        918.3     4.78%
                   Tax-exempt(1)         16,321          566.0    6.94%        17,459        605.9     6.94%
Loans(2)(3)                             335,110       11,392.1    6.78%       301,737     11,518.3     7.61%
                                        -------       --------                -------     --------
Total earning assets/total
interest income                         391,928     $ 12,639.1    6.43%       367,012    $13,170.9     7.16%
                                                    ----------                           ---------
Cash & due from banks                    12,593                                14,163

All other assets                         18,431                                17,260
Allowance for loan loss                 (5,875)                               (5,546)
                                        -------                               -------
   Total assets                        $417,077                              $392,889
                                       ========                              ========
Liabilities and
  Stockholders' Equity
Interest bearing deposits:
Savings & NOW accounts                 $172,998        $ 880.4    1.03%      $151,132     $1,130.2     1.51%
Time                                    132,782        2,196.7    3.34%       129,408      2,713.2     4.23%
Short-term borrowings                        82             .3     .71%        10,979        110.4     2.00%
FHLB Notes                                5,346          196.0    7.29%         5,587        204.8     7.29%
                                          -----          -----                  -----        -----
Total interest bearing
liabilities/total interest expense      311,208       $3,273.4    2.12%       297,106     $4,158.6     2.82%
                                                      --------                            --------
Non-interest bearing deposits            63,685                                58,606
All other liabilities                     3,571                                 3,456
Stockholders' Equity                     38,613                                33,721
                                         ------                                ------
Total liabilities and
  shareholders' equity                 $417,077                              $392,889
                                       ========                              ========
Interest spread                                                   4.31%                                4.34%
                                                                  =====                                =====
Net interest income-FTE                               $9,365.7                            $9,012.3
                                                      ========                            ========
Net interest margin                                               4.75%                                4.87%
                                                                  =====                                =====`

|(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 Accounting Standards No. 115.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | For purposes of the computations above, non-accruing loans are included in the
               average daily loan balances.
|--- | --------------------------------------------------------------------------------------------------------------------------

|(3) | Interest on loans includes origination fees totaling $330,000 in 2003 and
          $409,000 in 2002.
|--- | -----------------------------------------------------------------------------------------------------

Interest Earning
Assets/Interest IncomeOn a tax equivalent basis, interest
income decreased approximately $344,000 in the second quarter of 2003 compared to that of
2002. The decrease was the result of a 72 basis point reduction in the yield on earning
assets. This negative trend was partially offset by a $20,000,000 (5%) growth in average
balances of earning assets.

Loan interest decreased approximately
$166,000 due to a 85 basis point decrease in interest rates although average balances
increased $30,000,000 (10%). The decline in loans rates was the result of overall lower
interest rates this year compared to last year and a higher mix of variable rate loans. In
particular, the prime interest rate was 4.25% throughout the second quarter of this year
compared to 4.75% in the second quarter of 2002. In the second quarter, tax equivalent
income on short and long term investments

12

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decreased approximately $179,000. The
decrease can be attributed to a $9,700,000 decrease in average balances as well as the mix
of investments. Taxable investment securities have had considerable runoff as securities
with higher yields have prepaid or been called. Yields on short and long term investments
decreased by 42 basis points for the three months ended June 30, 2003 over the comparable
period last year.

For the first half of the year, tax
equivalent interest income decreased approximately $532,000. Loan interest income
decreased approximately $126,000. The interest rate earned on loans decreased 83 basis
points while average balances increased $33,000,000 (11%). Loan growth was concentrated in
the commercial portfolio where balances increased $28,000,000 (11%) on average. Consumer
loans had a slight increase of $1,600,000 (5%) while mortgage loans increased $4,300,000
(15%). In addition to the growth in mortgage loans retained in the portfolio, the Bank
sold approximately $14,000,000 residential mortgage loans, compared to $9,700,000 in the
first half of 2002. For the first six months of the year, income on short and long term
investments decreased $406,000 from that earned in the prior year due to a $8,500,000
decrease in average balances and a change in mix as described above, lowering the yields
earned by 69 basis points.

Interest Bearing
Liabilities/Interest ExpenseIn the second quarter of 2003,
interest expense decreased $474,000 due to a decrease in the interest rate paid of 67
basis points although average balances increased $6,700,000 (2%). Savings and NOW interest
expense decreased approximately $198,000. The decrease was due to the interest rate
declining 64 basis points as the average balance increased $18,000,000 (12%). Interest on
time deposits decreased $177,000 in the second quarter of 2003 over the prior year. The
decrease was due to a decrease of 74 basis points in rates paid offset by an increase in
the average balance of $7,100,000. In the second quarter of 2003 the Company had average
short term borrowings of $155,000 compared to 19,000,000 in the second quarter of 2002.
The interest rate averaged less than 1.00% in 2003 compared to 2.02% for the same quarter
in 2002 on these borrowings. Management has reduced reliance on third-party funding
sources as the maturities and paydowns of investment securities as well as deposit growth
have been used to fund loan demand. Included in the average balance for short term
borrowings were Fed Funds Purchased, Federal Home Loan Bank of Indianapolis (FHLBI) short
term borrowings, and repurchase agreements. Included in FHLB advances are two loans,
entered into in 2000, from the FHLBI. One borrowing, originally for $3,000,000, was
initiated to match the maturity of a fixed rate loan made to a local township. The other
borrowing was intended to help with the Banks rate sensitivity position. It is
reasonable to expect that part of future loan growth will continue to be funded with FHLBI
borrowings.

In the first half of the year,
interest expense decreased $885,000 from that of the previous year. Contributing to this
decrease was a 70 basis point decrease in rates while average balances of interest bearing
liabilities increased $14,000,000 (5%). Savings and NOW interest expense decreased
approximately $250,000 because the interest rate decreased 48 basis points although
average balances increased $22,000,000 (14%). Interest on time

13

---



deposits decreased
approximately $517,000 because the rate decreased 89 basis points although the average
balance increased $3,400,000 (3%). In the first half of 2003, the Bank incurred virtually
no interest expense to borrow short term money compared to $110,000 in 2002. The short
term borrowings were necessary as loan growth outpaced deposit growth in 2002. The FHLBI
advances are discussed above.

LiquidityLiquidity is monitored by the
Banks Asset/Liability Management Committee (ALCO) which meets at least monthly. The
Board of Directors has approved a liquidity policy which requires the Bank, while it is
well capitalized as defined by the Federal Financial Institutions Examination Council
(FFIEC), to maintain a current ratio of no less than 1:1 (core basic surplus liquidity
equal to 0), representing that the Banks contingency for unexpected funding outflows
is being primarily met by short-term investments and unencumbered treasury and agency
securities. Additional requirements of the policy are that when FHLBI available credit is
added to core basic surplus liquidity, the Bank must have liquidity totaling 5% of assets
and when brokered CDs and Fed Funds lines are added, the Bank must have liquidity totaling
8% of assets. Should the Banks capital ratios fall below the well
capitalized level, additional liquidity totaling 5% of assets will be required. As
of June 30, 2003, the Company had a $4,400,000 surplus of core basic liquidity.

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 Large Certificates, which are generally considered to be more
volatile and sensitive to changes in rates, consists principally of local depositors known
to the Bank. As of June 30, 2003, the Bank had Large Certificates totaling approximately
$46,000,000 compared to $44,000,000 at December 31, 2002.

It is the intention of the
Banks management to handle unexpected liquidity needs through its Federal Funds
position with a correspondent bank and by Federal Home Loan Bank borrowings. The Bank has
a line of credit of approximately $25,000,000 available at the FHLBI. As of June 30, 2003
approximately $10,300,000 of the line had been used for overnight borrowings and for long
term advances, previously described. The Bank has pledged certain mortgage loans as
collateral for this borrowing. The Bank also has a repurchase agreement in place where it
can borrow from a broker who will lend money against certain securities of the Bank.
Finally, management may look to available for sale securities in the
investment portfolio to meet additional liquidity needs.

Interest Rate RiskInterest 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

14

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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,
other balance sheet ratios, and profitability ratios.

`Interest Rate Sensitivity
-------------------------
(dollars in thousands)                              0-3         4-12           1-5           5+
                                                 Months       Months         Years        Years         Total
                                                 ------       ------         -----        -----         -----
Assets:
Loans......................................    $163,663      $50,290      $121,363       $8,728      $344,044
Securities.................................       3,548        9,952        22,928        5,318        41,746
   Short term investments....                     7,948                                                 7,948
                                               --------      -------      --------      -------      --------
      Total rate sensitive assets..........    $175,353      $61,794      $145,261      $14,046      $396,454

Liabilities & Stockholders' Equity:
   Savings & NOW...........................     $79,555            0             0      $49,210      $128,765
   Time....................................      24,316       42,123        67,449          405       134,293
   Other borrowings........................       5,000          261         3,915        1,152        10,328
                                                  -----      -------       -------      -------        ------
      Total rate sensitive liabilities.....    $108,871      $42,384       $71,364      $50,767      $273,386

Rate sensitivity gap and ratios:
   Gap for period..........................     $66,482      $19,410       $73,897    $(36,721)
   Cumulative gap..........................      66,482       85,892       159,789      123,068

Cumulative rate sensitive ratio............        1.61         1.57          1.72         1.45
Dec. 31, 2002 rate sensitive ratio.........        1.35         1.43          1.67         1.25`

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 asset sensitive as of
June 30, 2003. An asset sensitive position would normally indicate increased net interest
income in a rising rate environment. Recently medium and long term treasury rates have
increased, however the majority of the Banks rate sensitive loans are tied to the
prime rate which dropped 25 basis points on June 27, 2003. 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

15

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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 movement of interest rates.

`Provision for Loan Losses                 Second Quarter                            Year-to-Date
-------------------------         2003                      2002             2003                  2002
(in thousands)                    ----                      ----             ----                  ----
         Total                    $275                        $0             $600                    $0
                                  ====                        ==             ====                    ==`

The Company provided a loan loss
provision of $275,000 in the second quarter of 2003 having provided no provision in the
same period last year. The provision in the second quarter of 2003 is based upon an
analysis of losses inherent in the portfolio and other economic factors. Nonperforming
loans did not increase significantly during the second quarter of 2003 but continue to be
$2,400,000 higher than at December 31, 2002 and $4,900,000 higher than June 30, 2002. Net
charge offs for the second quarter of 2003 were $366,000 compared to $326,000 in the same
period in 2002. Depressed economic market conditions have had an impact on the loan
portfolio and the related allowance and charge offs. If the economy remains sluggish, it
is expected to continue to impact the loan portfolio.

Year to date the provision is
$600,000 compared to no provision last year. Although loans increased 5% in the first half
of the year, management determined that a higher allowance was needed based on the level
of risk in the portfolio and the level of nonperforming loans. At June 30, 2003, the
allowance for loan loss as a percent of loans was 1.71%, compared to 1.65% a year earlier
and 1.77% at December 31, 2002. For the first six months of 2003, the Bank had net charge
offs of $512,000, compared to $498,000 in the first half of 2002. Non-accrual, past due 90
days, and renegotiated loans were 1.92% and .51% of total loans outstanding at June 30,
2003 and 2002, respectively, and 1.25% of total loans at December 31, 2002.

Impaired loans, as defined by
Statement of Financial Accounting Standards (SFAS) No. 114, Accounting by Creditors for
Impairment of a Loan, totaled approximately $9,800,000 at June 30, 2003, and included
non-accrual, and past due 90 days other than homogenous residential and consumer loans,
and $3,500,000 of commercial loans separately identified as impaired. Impaired loans
totaled $9,300,000 at December 31, 2002. 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.

Subsequent to June 30, 2003 the
underlying collateral on a $1.3 million loan classified as impaired was sold. The Bank
incurred no loss on this loan and all principal and interest due were satisfied.
Nonperforming loans are reviewed regularly for collectability. Any uncollectable balances
are promptly charged off.

The adequacy of the allowance for
loan losses is determined by managements assessment of the composition of the loan
portfolio, an evaluation of specific credits, an

16

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analysis of the value of the underlying
collateral for those loans, historical loss experience, relevant economic factors, the
level of nonperforming loans, loans that have been identified as impaired, and the overall
credit quality of the portfolio. Management continues to refine its techniques in this
analysis. Impaired loans had specific reserves calculated in accordance with SFAS No. 114
of $1,650,000 at June 30, 2003, $2,000,000 at December 31, 2002, and $1,200,000 at June
30, 2002.

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.

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. The following table describes nonperforming assets at June 30, 2003
compared to December 31, 2002.

`Nonperforming Assets
--------------------                                        June 30,2003                  December 31, 2002
(in thousands)                                              ------------                  -----------------
Non-accrual loans                                                 $5,659                             $3,288
90 days or more past due and still accruing                          839                                809
                                                                     ---                                ---
         Total nonperforming loans                                 6,498                              4,097
Other real estate                                                     95                                738
                                                                      --                                ---
         Total nonperforming assets                               $6,593                             $4,835

Nonperforming loans as a percent of total loans                    1.92%                              1.25%
Loan loss reserve as a percent of nonperforming loans                91%                               141%`

The following table sets forth loan
balances and summarizes the changes in the allowance for loan losses for the first six
months of 2003 and 2002.

`Year to date          Year to date
Loans:   (dollars in thousands)                                       June 30, 2003         June 30, 2002
                                                                      -------------         -------------
   Average daily balance of loans for the year to date                    335,110               301,737
   Amount of loans, net of unearned income, outstanding at end
   of the quarter                                                         344,044               312,522
Allowance for loan losses:
   Balance at beginning of year                                             5,794                 5,668
   Loans charged off:
      Real estate                                                               0                     0
      Commercial                                                              498                   493
      Consumer                                                                106                    42
                                                                              ---                    --
         Total charge-offs                                                    604                   535
   Recoveries of loans previously charged off:
      Real estate                                                               0                     0
      Commercial                                                               65                     8
      Consumer                                                                 27                    29
                                                                               --                    --
         Total recoveries                                                      92                    37`

17

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`Net loans charged off                                                         512                   498
Additions to allowance charged to operations                                  600                     0
                                                                              ---                   ---
         Balance at end of quarter                                         $5,882                $5,170


Ratios:
    Net loans charged off (annualized) to average
    loans outstanding                                                        .30%                  .33%
   Allowance for loan losses to loans outstanding                           1.71%                 1.65%


Non-interest Income                                    Second Quarter                        Year-to-Date
-------------------                                2003              2002               2003              2002
(in thousands)                                     ----              ----               ----              ----
Total                                              $916              $852             $1,853            $1,647
                                                   ====              ====             ======            ======`

Non-interest income, which includes
service charges on deposit accounts, loan fees, trust fees, other operating income, and
gain (loss) on sale of assets, increased by $64,000 (8%) in the second quarter of 2003
compared to the same period in the previous year. Gain on the sale of loans increased
$49,000 (104%) due to increased volume of residential mortgage sales. In the second
quarter of 2003 the Company sold $5,800,000 in residential mortgage loans compared to
$2,700,000 in the same period the previous year. Trust fees increased $7,000 (11%) due to
higher assets under management. Other income increased $72,000 due to gains on the sale of
other real estate owned and the reversal of a reserve for other real estate owned of
$45,000. Service charge income decreased approximately $65,000 (9%) primarily the result
of an impairment charge for mortgage servicing rights recorded in the second half of 2003
of $145,000.The impairment reserve on capitalized mortgage loan servicing rights totaled
$145,000 at June 30, 2003 and was $0 at December 31, 2002 and June 30, 2002. The recording
of the impairment reserve was necessary due to a decrease in the value of mortgage
servicing rights in 2003 as a result of low mortgage interest rates and higher expected
future prepayment speeds. Mortgage servicing rights at June 30, 2003 were $238,000 on
approximately $43,400,000 of outstanding mortgages, or 54 basis points.

For the year, non-interest income
increased $206,000 (13%). Contributing to the increase was a $39,000 (3%) increase in
service charge income primarily the result of increased business offset by the impairment
charge for mortgage servicing rights mentioned above. Gains on the sale of loans increased
approximately $83,000 (54%) due to increased volume for the year to date, $14,000,000 in
the current year compared to $9,700,000 in the previous. Trust fees increased $16,000
(14%) due to higher assets under management. Other income increased $70,000 due to gains
on the sale of other real estate and the reserve mentioned above.

`Non-interest Expense                                   Second Quarter                        Year-to-Date
--------------------                               2003              2002               2003              2002
(in thousands)                                     ----              ----               ----              ----
Total                                            $3,362            $3,047             $6,580            $5,847
                                                 ======            ======             ======            ======`

18

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Non-interest expense increased
$315,000 (10%) in the second quarter of 2003 compared to the same period last year. There
were increases in salaries and benefits expense of $90,000 (5%) principally due to normal
merit increases and higher benefit costs. Occupancy expense increased $12,000 (5%)
primarily due to costs associated with higher building service expenses and property
taxes. Equipment expense increased $79,000 (37%) due to higher equipment maintenance costs
and higher depreciation expense as the result of a new branch and the new operations
center. Advertising increased $32,000 (48%) as a result of a deposit promotion campaign in
the second quarter of 2003 in the Brighton market. Other expenses also increased $131,000
(50%) due to the write-down of the land held for sale as a result of the current market
conditions in the commercial real market. Partially offsetting these increases was a
$33,000 (7%) decrease in fees for services due to lower outside consultant fees.

For the first half of the year,
non-interest expense increased $733,000 (13%) compared to the prior year. There was a
$314,000 (10%) increase in salaries and benefits, made up of a $253,000 (12%) increase in
salary expense due to merit increases and additional employees to keep pace with the
Banks growth in assets, and a $61,000 (34%) increase in payroll taxes and medical
insurance expense also related to new employees and higher costs. Occupancy expense was
$42,000 (10%) higher due primarily to the new branch in Genoa Township which opened in the
second quarter last year and the new operations center which opened in January of 2003.
Advertising increased $18,000 (12%) due to promotional efforts for the Brighton market
mentioned above. Other non-interest expense increased $238,000 (30%) primarily
due to the valuation reserve for land held for sale discussed above and increases in
computer service fees, postage and telephone. Partially offsetting these increases was a
decrease in other professional service fees of $28,000 (5%) due to lower outside
consultant fees.

`Income Tax Expense                              Second Quarter                        Year-to-Date
--------------------                        2003              2002               2003              2002
(in thousands)                              ----              ----               ----              ----
Total                                       $581              $709             $1,155            $1,393`

Fluctuations in income taxes resulted
primarily from changes in the level of profitability and in variations in the amount of
tax-exempt income.

`Capital
-------
(in thousands)                                       June 30, 2003                   December 31, 2002
                                                     -------------                   -----------------
Stockholders' Equity*                                      $39,277                             $37,580
Ratio of Equity to Total Assets                              9.17%                               8.93%`

*Amounts include securities valuation
adjustments recorded under Statement of Financial Accounting Standards No. 115 amounting
to $627,000 at June 30, 2003 and $676,000 at December 31, 2002.

A financial institutions
capital ratio is looked upon by the regulators and the public as an indication of its
soundness. Stockholders equity, excluding the securities valuation adjustment,
increased $1,746,000 (5%) during the first half of the year. This increase was principally
the result of net income earned by the company reduced by dividends paid of $1,075,000.

19

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The Federal Reserve Board provides
guidelines for the measurement of capital adequacy. The Banks capital, as adjusted
under these guidelines, is referred to as risk-based capital. The Banks Tier 1
risk-based capital ratio at June 30, 2003 was 10.03%, and total risk-based capital was
11.28%. At June 30, 2002 these ratios were 9.45% and 10.71% respectively. Minimum
regulatory Tier 1 risk-based and total risk-based capital ratios under the Federal Reserve
Board guidelines are 4% and 8% respectively.

The capital guidelines also provide
for a standard to measure risk-based capital to total assets which is called the leverage
ratio. The Banks leverage ratio was 8.70% at June 30, 2003 and 8.25% in 2002. The
minimum standard leverage ratio is 3% but financial institutions are expected to maintain
a leverage ratio 1 to 2 percentage points above the 3% minimum.

In 1998 the Company exercised an
option to purchase an 18 acre tract of land in northwest Brighton primarily to acquire a
prime site for a new branch. The cost of the property was approximately $4,000,000. In
1999 a new branch of the Bank was built on land valued at approximately $800,000. During
2000 one parcel of the property was sold. The remaining property is held for sale.

The Company also owns a branch site
in Hamburg which is valued at approximately $330,000. Construction has begun on the
Hamburg branch and is expected to be completed in the fourth quarter of 2003. This
building project is expected to be financed from internally generated funds.

Critical Accounting PoliciesThe Company maintains critical
accounting policies for the allowance for loan losses, mortgage servicing rights and the
classification and valuation of securities. Refer to notes 1c, 1d and 1e of the Notes to
Consolidated Financial Statements for additional information incorporated by reference to
the Annual Report to Shareholders for the year ended December 31, 2002.

Contractual ObligationsAs of June 30, 2003, December 31,
2002 and June 30, 2002, the Bank had outstanding irrevocable standby letters of credit,
which carry a maximum potential commitment of approximately $3,300,000, $3,100,000 and
$2,100,000, respectively. These letters of credit are conditional commitments issued by
the Bank to guarantee the performance of a customer to a third party. The majority of
these letters of credit are short-term guarantees of one year or less, although some have
maturities which extend as long as two years. The credit risk involved in issuing letters
of credit is essentially the same as that involved in extending loans to customers. The
Bank primarily holds real estate as collateral supporting those commitments for which
collateral is deemed necessary. The extent of collateral held on those commitments at June
30, 2003, December 31, 2002 and June 30, 2002, where there is collateral, is in excess of
the committed amount. A letter of credit is not recorded on the balance sheet until a
customer fails to perform.

20

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Accounting Standards

| | In
April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections. Statement No. 145 rescinds FASB Statement No. 4, Reporting
Gains and Losses from Extinguishment of Debt, and FASB Statement No. 64,
Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements. This
Statement also rescinds FASB Statement No. 44, Accounting for Intangible
Assets of Motor Carriers,and amends FASB Statement No. 13, Accounting for
Leases, to eliminate an inconsistency between the required accounting for
sale-leaseback transactions and for certain lease modifications that have economic effects
that are similar to sale-leaseback transactions. This Statement also amends other existing
authoritative pronouncements to make various technical corrections, clarify meanings, or
describe their applicability under changed conditions. Statement No. 145 is effective
for fiscal years beginning after May 15, 2002, with early adoption of the provisions
related to the rescission of Statement No. 4 encouraged. Upon adoption, enterprises
must reclassify prior-period items that do not meet the extraordinary-item classification
criteria in APB 30.Adoption of this Statement did not have a
significant impact on the Banks results of operations or financial condition.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
July 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with
Exit or Disposal Activities. Statement No. 146 nullifies Emerging Issues
Task Force (EITF) Issue No. 94-3, Liability Recognition for Certain
Employee Termination Benefits and Other Costs to Exit an Activity (Including
Certain Costs Incurred in a Restructuring). The principal difference between
Statement No. 146 and Issue 94-3 relates to its requirements for recognition of a
liability for a cost associated with an exit or disposal activity. This Statement requires
that a liability for a cost associated with an exit or disposal activity be recognized and
measured initially at fair value only when the liability is incurred. Under Issue 94-3,
the liability was recognized at the date of an entitys commitment to an exit plan.
Statement No. 146 is effective for exit or disposal activities (including
restructuring) that are initiated after December 31, 2002, with early adoption
encouraged. Adoption of this Statement did not have a significant impact on the
Banks results of operations or financial condition.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
December 31, 2002, the FASB issued SFAS No. 148, Accounting for Stock-based
Compensation  Transition and Disclosure, which amends SFAS No. 123,
Accounting for Stock-based Compensation. SFAS No. 148 amends the disclosure
requirements in SFAS No. 123 for stock-based compensation for annual periods ending
after December 15, 2002 and for interim periods beginning after December 15,
2002. These disclosure requirements apply to all companies, including those that continue
to recognize stock-based compensation under APB Opinion No. 25, Accounting for
Stock Issued to Employees. Effective for financial statements for fiscal years ending
after December 15, 2002, SFAS No. 148 also provides three alternative transition
methods for companies that choose to adopt the fair-value measurement provisions of SFAS
No. 123. Earlier application of those transition methods is permitted for entities
with a fiscal year ending prior to December 15, 2002, provided that financial
statements for the 2002 fiscal year have not been issued as of December 31, 2002.
Adoption of this Statement did not have a significant impact on the Banks results of
operations or financial condition.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21

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| | In
April 2003, the FASB issued SFAS No. 149, Amendment of Statement 133 on Derivative
Instruments and Hedging Activities.Statement No. 149 amends FASB Statement
No. 133, Accounting for Derivative Instruments and Hedging Activities, to
clarify the definition of a derivative and expand the nature of exemptions from Statement
133. This Statement also clarifies the application of hedge accounting when using certain
instruments and the application of paragraph 13 of Statement 133 to embedded derivative
instruments in which the underlying is an interest rate. Finally, the Statement modifies
the cash flow presentation of derivative instruments that contain financing elements.
Statement No. 149 is effective for contracts entered into or modified after June 30, 2003,
with early adoption encouraged. Adoption of this Statement did not have a significant
impact on the Banks results of operations or financial condition.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
May 2003, the FASB issued SFAS No. 150 Accounting for Certain Financial Instruments
with Characteristics of both Liabilities and Equity. Statement No. 150 applies
to three categories of freestanding financial instruments; mandatorily redeemable
instruments, instruments with repurchase obligations and instruments with obligations to
issue a variable number of shares. Instruments within the scope of Statement No. 150 must
be classified as liabilities in the statement of financial position. Statement No. 150 is
effective for all freestanding financial instruments entered into or modified after May
31, 2003 and is otherwise effective at the beginning of the first interim period beginning
after June 15, 2003. The adoption of this Statement is not expected to have a significant
impact on the Banks results of operations or financial condition.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
November 2002, the FASB issued Interpretation No. 45, Guarantors Accounting
and Disclosure Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others(the Interpretation), which addresses the
disclosure to be made by a guarantor in its interim and annual financial statements about
its obligations under guarantees. The initial recognition and initial measurement
provisions of this Interpretation are applicable on a prospective basis to guarantees
issued or modified after December 31, 2002, regardless of the guarantors fiscal
year end. The guarantor may not revise or restate its previous accounting for guarantees
issued before the date of the Interpretations initial application to reflect the
effect of the recognition and measurement provisions of the Interpretation. The disclosure
requirements in this Interpretation are effective for financial statements of interim or
annual periods ending after December 15, 2002. Adoption of the measurement
requirements of this Interpretation did not have a significant impact on the Banks
results of operations or financial condition.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22

---



Item 3. Quantitative and
Qualitative Disclosures About Market RiskThere has been no material change in
the market risk faced by the Company since December 31, 2002 other than previously
discussed.

|Item 4.  Controls and Procedures
|--------------------------------
|(a)                             
|(b)                             

PART II  OTHER
INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders
The  registrant's  annual  meeting  of  stockholders  was held on April 15,  2003.  The  stockholders  voted on the
election of directors.

The following three nominees for the office of director were elected for a term expiring in 2006:

| | Donald K. Burkel
         Gary R. Boss
         Richard F. Hopper
| | -----------------------------------------------------------------

Additionally, the following directors continue in office.

|Term expiring in 2004:
|----------------------
|                      

|Term expiring in 2005:
|----------------------
|                      

23

---



Item 6.  Exhibits and Reports on Form 8-K

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

| | 31.1         Certificate of the Chief Executive Officer of FNBH Bancorp, Inc. pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
         31.2         Certificate of the Chief Financial Officer of FNBH Bancorp, Inc. pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
         32.1         Certificate of the Chief Executive Officer of FNBH Bancorp, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
         32.2         Certificate of the Chief Financial Officer of FNBH Bancorp, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(b)  Reports on Form 8-K:

The company  filed a report 8-K on April 17, 2003 under Item 12  regarding  the  Company's  First  Quarter
2003 Earnings Press Release.

24

---



SIGNATURES

Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report on
Form 10-Q for the quarter ended June 30, 2003 to be signed on its behalf by the
undersigned hereunto duly authorized.

| | FNBH BANCORP, INC.
/s/ Barbara Draper
Barbara Draper
President and Chief Executive Officer
/s/ Janice B. Trouba
Janice B. Trouba
Chief Financial Officer | 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------- | 

DATE:  August 13, 2003

25

---



EXHIBIT 31.1

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER
OF FNBH BANCORP, INC.

Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I, Barbara Draper,
certify that:

|1. | I have reviewed this quarterly report on Form 10-Q of FNBH Bancorp, Inc.;
|-- | -------------------------------------------------------------------------

|2. | Based on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officer and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | designed such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure that
               material information relating to the registrant, including its consolidated
               subsidiaries, is made known to us by others within those entities, particularly
               during the period in which this report is being prepared;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | evaluated the effectiveness of the registrants disclosure controls and
               procedures and presented in this report our conclusions about the effectiveness
               of the disclosure controls and procedures, as of the end of the period covered
               by this report based on such evaluation; and
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | disclosed in this report any change in the registrants internal control
               over financial reporting that occurred during the registrants most recent
               fiscal quarter (the registrants fourth fiscal quarter in the case of an
               annual report) that has materially affected, or is reasonably likely to
               materially affect, the registrants internal control over financial
               reporting; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officer and I have disclosed, based on
          our most recent evaluation of internal control over financial reporting, to the
          registrants auditors and the audit committee of the registrants
          board of (or persons performing the equivalent functions):
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | all significant deficiencies and material weaknesses in the design or operation
               of internal control over financial reporting which are reasonably likely to
               adversely affect the registrants ability to record, process, summarize and
               report financial information; and
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | any fraud, whether or not material, that involves management or other employees
               who have a significant role in the registrants internal controls over
               financial reporting.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:   August 13, 2003

|/s/ Barbara Draper
Barbara Draper
President and Chief Executive Officer | 
|----------------------------------------------------------------------- | 



---



EXHIBIT 31.2

CERTIFICATE OF THE CHIEF FINANCIAL OFFICER
OF FNBH BANCORP, INC.

Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I, Janice B. Trouba, certify that:

|1. | I have reviewed this quarterly report on Form 10-Q of FNBH Bancorp, Inc.;
|-- | -------------------------------------------------------------------------

|2. | Based on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officer and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | designed such disclosure controls and procedures, or caused such disclosure
               controls and procedures to be designed under our supervision, to ensure that
               material information relating to the registrant, including its consolidated
               subsidiaries, is made known to us by others within those entities, particularly
               during the period in which this report is being prepared;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | evaluated the effectiveness of the registrants disclosure controls and
               procedures and presented in this report our conclusions about the effectiveness
               of the disclosure controls and procedures, as of the end of the period covered
               by this report based on such evaluation; and
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) | disclosed in this report any change in the registrants internal control
               over financial reporting that occurred during the registrants most recent
               fiscal quarter (the registrants fourth fiscal quarter in the case of an
               annual report) that has materially affected, or is reasonably likely to
               materially affect, the registrants internal control over financial
               reporting; and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officer and I have disclosed, based on
          our most recent evaluation of internal control over financial reporting, to the
          registrants auditors and the audit committee of the registrants
          board of (or persons performing the equivalent functions):
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) | all significant deficiencies and material weaknesses in the design or operation
               of internal control over financial reporting which are reasonably likely to
               adversely affect the registrants ability to record, process, summarize and
               report financial information; and
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | any fraud, whether or not material, that involves management or other employees
               who have a significant role in the registrants internal controls over
               financial reporting.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:   August 13, 2003

|/s/ Janice B. Trouba
Janice B. Trouba
Chief Financial Officer | 
|------------------------------------------------------------- | 



---



EXHIBIT 32.1

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER
OF FNBH BANCORP, INC.

Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I,
Barbara Draper, Chief Executive Officer of FNBH Bancorp, Inc., certify, to the best of my
knowledge and belief, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.
1350) that:

(1)        The
quarterly report on Form 10-Q for the quarterly period ended June 30, 2003, which this
statement accompanies, fully complies with requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 and;

(2)        The
information contained in this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2003, fairly presents, in all material respects, the financial condition and
results of operations of FNBH Bancorp, Inc.

|                       | FNBH BANCORP, INC.
|---------------------- | ------------------
|Date:  August 13, 2003 | By:               
|                       | Its:              

The signed original of this written
statement required by Section 906, or other document authenticating, acknowledging, or
otherwise adopting the signature that appears in typed form within the electronic version
of this written statement required by Section 906, has been provided to FNBH Bancorp, Inc.
and will be retained by FNBH Bancorp, Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.



---



EXHIBIT 32.2

CERTIFICATE OF THE CHIEF FINANCIAL OFFICER
OF FNBH BANCORP, INC.

Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I,
Janice B. Trouba, Chief Financial Officer of FNBH Bancorp, Inc., certify, to the best of
my knowledge and belief, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. 1350) that:

(1)        The
quarterly report on Form 10-Q for the quarterly period ended June 30, 2003, which this
statement accompanies, fully complies with requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 and;

(2)        The
information contained in this quarterly report on Form 10-Q for the quarterly period ended
June 30, 2003, fairly presents, in all material respects, the financial condition and
results of operations of FNBH Bancorp, Inc.

|                       | FNBH BANCORP, INC.
|---------------------- | ------------------
|Date:  August 13, 2003 | By:               
|                       | Its:              

The signed original of this written
statement required by Section 906, or other document authenticating, acknowledging, or
otherwise adopting the signature that appears in typed form within the electronic version
of this written statement required by Section 906, has been provided to FNBH Bancorp, Inc.
and will be retained by FNBH Bancorp, Inc. and furnished to the Securities and Exchange
Commission or its staff upon request