# 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 September 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

---

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

Indicate by check mark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
 Yes  No X

The number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date: 3,165,740
shares of the Companys Common Stock (no par value) were outstanding as of November 5,
2003.



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INDEX

|         |                                                                           | PageNumber
|-------- | ------------------------------------------------------------------------- | ----------
|Part I   | Financial Information (unaudited):                                        |           
|        
|         | Item 1.                                                                   |           
|         | Interim Financial Statements:                                             |           
|         | Consolidated Balance Sheet as of September 30, 2003 and December 31, 2002 | 4         
|         | Consolidated Statements of Income, three months ended                     |           
|         | September 30, 2003 and 2002, and nine months ended                        |           
|         | September 30, 2003 and 2002                                               | 5         
|         | Consolidated Statement of Stockholders' Equity and Comprehensive          |           
|         | Income for three months ended September 30, 2003 and 2002                 | 6         
|         | Consolidated Statement of Stockholders' Equity and Comprehensive          |           
|         | Income for nine months ended September 30, 2003 and 2002                  | 7         
|         | Consolidated Statements of Cash Flows for nine months ended               |           
|         | September 30, 2003 and 2002                                               | 8         
|        
|         | Notes to Interim Consolidated Financial Statements                        | 9         
|        
|         | Item 2.                                                                   |           
|         | Management's Discussion and Analysis of                                   |           
|         | Financial Condition and Results of Operations                             | 10        
|        
|         | Item 3.                                                                   |           
|         | Quantitative and Qualitative Disclosures about Market Risk                | 23        
|        
|         | Item 4.                                                                   |           
|         | Controls and Procedures                                                   | 23        
|        
|Part II. | Other Information                                                        
|        
|         | 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)                                    |  | September 30   |   | December 31    |  
|-------------------------------------------------------------------------- |  | -------------- | - | -------------- | -
|                                                                           |  | 2003           |   | 2002           |  
|Assets                                                                     |  |                |   |                |  
|Cash and due from banks                                                    |  | $   14,233,810 |   | $   13,389,226 |  
|Short term investments                                                     |  | 16,748,255     |   | 19,649,178     |  
|                                                                           |  |                |   |               
|Total cash and cash equivalents                                            |  | 30,982,065     |   | 33,038,404     |  
|                                                                          
|Certificates of deposit                                                    |  | 2,522,000      |   | 3,880,000      |  
|Investment and securities held to maturity, net (fair value of $16,426,000 | 
|at Sept. 30, 2003 and $18,011,000 at Dec. 31, 2002)                        |  | 15,353,839     |   | 16,863,210     |  
|Investment securities available for sale, at fair value                    |  | 24,474,194     |   | 16,753,001     |  
|Mortgage-backed securities held to maturity, net (fair value of            | 
|$26,000 at Dec. 31, 2002)                                                  |  | -              |   | 26,033         |  
|Mortgage-backed securitities available for sale, at fair value             |  | 8,596,719      |   | 9,924,802      |  
|FHLBI and FRB stock, at cost                                               |  | 1,057,450      |   | 1,044,250      |  
|                                                                           |  |                |   |               
|Total investment securities                                                |  | 49,482,202     |   | 44,611,296     |  
|                                                                          
|Loans:                                                                     | 
|Commercial                                                                 |  | 279,834,366    |   | 263,002,466    |  
|Consumer                                                                   |  | 34,494,106     |   | 33,666,705     |  
|Real estate mortgages                                                      |  | 33,603,369     |   | 31,291,141     |  
|                                                                           |  |                |   |               
|Total loans                                                                |  | 347,931,841    |   | 327,960,312    |  
|Less unearned income                                                       |  | 905,197        |   | 843,052        |  
|Less allowance for loan losses                                             |  | 6,014,940      |   | 5,794,399      |  
|                                                                           |  |                |   |               
|Net loans                                                                  |  | 341,011,704    |   | 321,322,861    |  
|                                                                          
|Premises and equipment - net                                               |  | 10,983,445     |   | 10,256,828     |  
|Land and facilities available for sale - net                               |  | 1,500,765      |   | 1,530,290      |  
|Other real estate owned, held for sale                                     |  | 65,000         |   | 738,206        |  
|Accrued interest and other assets                                          |  | 5,389,990      |   | 5,308,124      |  
|                                                                           |  |                |   |               
|Total assets                                                               |  | 441,937,171    |   | 420,686,009    |  
|                                                                           |  |                |   |               
|                                                                          
|Liabilities and Stock holders' Equity                                      | 
|Liabilities                                                                | 
|Deposits:                                                                  | 
|Non-interest bearing demand                                                |  | 69,516,585     |   | 62,231,909     |  
|NOW                                                                        |  | 50,500,433     |   | 41,423,298     |  
|Savings and money market                                                   |  | 129,465,883    |   | 138,961,869    |  
|Time                                                                       |  | 137,061,424    |   | 131,455,135    |  
|Brokered certificates of deposit                                           |  | 5,968,458      |   | -              |  
|                                                                           |  |                |   |               
|Total deposits                                                             |  | 392,512,783    |   | 374,072,211    |  
|Other borrowings                                                           |  | 5,327,708      |   | 5,569,255      |  
|Accrued interest, taxes, and other liabilities                             |  | 3,669,069      |   | 3,464,929      |  
|                                                                           |  |                |   |               
|Total liabilities                                                          |  | 401,509,560    |   | 383,106,395    |  
|Stockholders' Equity                                                       | 
|Common stock, no par value.  Authorized 4,200,000 shares; 3,165,524        | 
|shares issued and outstanding at September 30, 2003 and 3,157,798 shares   | 
|issued and outstanding at Dec. 31, 2002                                    |  | 5,641,655      |   | 5,465,089      |  
|Retained earnings                                                          |  | 34,589,768     |   | 31,685,849     |  
|Unearned management retention plan                                         |  | (207,597       | ) | (247,282       | )
|Accumulated other comprehensive income, net                                |  | 403,785        |   | 675,958        |  
|                                                                           |  |                |   |               
|Total stockholders' equity                                                 |  | 40,427,611     |   | 37,579,614     |  
|                                                                           |  |                |   |               
|Total liabilities and stockholders' equity                                 |  | 441,937,171    |   | 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 September 30 |  | Nine months ended September 30
|--------------------------------------------------- |  | ------------------------------- |  | ------------------------------
|Unaudited                                           |  | 2003                            |  | 2002                          
|                                                    |  |                                 |  |                               
|Interest and dividend income:                       | 
|Interest and fees on loans                          |  | $5,738,193                      |  | $5,797,668                    
|Interest and dividends on investment securities:    | 
|U.S. Treasury and agency securities                 |  | 226,378                         |  | 283,918                       
|Obligations of state and political subdivisions     |  | 190,008                         |  | 204,750                       
|Corporates                                          |  | 47,244                          |  | 81,485                        
|Other securities                                    |  | 97                              |  | 15,753                        
|Interest on certificates and other bank deposits    |  | 53,886                          |  | 50,386                        
|                                                    |  |                                 |  |                               
|Total interest and dividend income                  |  | 6,255,806                       |  | 6,433,960                     
|                                                    |  |                                 |  |                               
|                                                   
|Interest expense:                                   | 
|Interest on deposits                                |  | 1,353,180                       |  | 1,833,354                     
|Interest on other borrowings                        |  | 115,627                         |  | 151,094                       
|                                                    |  |                                 |  |                               
|Total interest expense                              |  | 1,468,807                       |  | 1,984,448                     
|                                                    |  |                                 |  |                               
|                                                   
|Net interest income                                 |  | 4,786,999                       |  | 4,449,512                     
|                                                   
|Provision for loan losses                           |  | 200,000                         |  | 325,000                       
|                                                    |  |                                 |  |                               
|Net interest income after provision for loan losses |  | 4,586,999                       |  | 4,124,512                     
|                                                    |  |                                 |  |                               
|                                                   
|Non-interest income:                                | 
|Service charges                                     |  | 885,911                         |  | 747,364                       
|Gain on sale of loans                               |  | 120,603                         |  | 96,645                        
|Gain on sale/call of investments                    |  | -                               |  | 32,476                        
|Trust fees                                          |  | 100,071                         |  | 45,958                        
|Other                                               |  | 2,115                           |  | 2,601                         
|                                                    |  |                                 |  |                               
|Total non-interest income                           |  | 1,108,700                       |  | 925,044                       
|                                                    |  |                                 |  |                               
|                                                   
|Non-interest expense:                               | 
|Salaries and employee benefits                      |  | 1,657,018                       |  | 1,586,229                     
|Net occupancy                                       |  | 241,521                         |  | 230,603                       
|Equipment expense                                   |  | 217,191                         |  | 207,550                       
|Professional and service fees                       |  | 275,553                         |  | 272,447                       
|Printing and supplies                               |  | 39,756                          |  | 69,481                        
|Advertising                                         |  | 74,282                          |  | 73,717                        
|Other                                               |  | 476,949                         |  | 410,108                       
|                                                    |  |                                 |  |                               
|Total non-interest expense                          |  | 2,982,270                       |  | 2,850,135                     
|                                                    |  |                                 |  |                               
|                                                   
|Income before federal income taxes                  |  | 2,713,429                       |  | 2,199,421                     
|Federal income taxes                                |  | 841,700                         |  | 662,100                       
|                                                    |  |                                 |  |                               
|Net income                                          |  | $1,871,729                      |  | $1,537,321                    
|                                                    |  |                                 |  |                               
|                                                   
|Per share statistics*                               | 
|Basic EPS                                           |  | $         0.59                  |  | $         0.49                
|Diluted EPS                                         |  | $         0.59                  |  | $         0.49                
|Dividends                                           |  | $         0.17                  |  | $         0.17                

*Based on average shares outstanding.
See notes to interim consolidated financial statements.

5

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FNBH BANCORP, INC. AND SUBSIDIARY
        Consolidated Statement of Stockholders' Equity and Comprehensive Income
           For the Three Months Ended September 30, 2003 and 2002 (Unaudited)

|                                                    | Common Stock |             | Retained Earnings |            | Unearned Management Retention Plan |           | Accumulated Other Comprehensive Income        |         | Total |           
|--------------------------------------------------- | ------------ | ----------- | ----------------- | ---------- | ---------------------------------- | --------- | --------------------------------------------- | ------- | ----- | ----------
|                                                    |              |             |                   |            |                                    |           |                                               |         |      
|Balances at June 30, 2002                           |              | $ 5,435,499 |                   | 29,620,051 |                                    | (300,374  | )                                             | 302,364 |       | 35,057,540
|Amortization of management retention plan           |              |             |                   | 26,546     |                                    |           | 26,546                                        |        
|Issued 498 shares for employee purchase plan        |              | 9,297       |                   |            |                                    |           | 9,297                                         |        
|Issued 234 shares for current directors fees        |              | 4,603       |                   |            |                                    |           | 4,603                                         |        
|Comprehensive income:                               |             
|Net income                                          |              |             | 1,537,321         |            |                                    |           | 1,537,321                                     |        
|Change in unrealized gain on debt securities        |             
|available for sale, net of tax effect               |              |             |                   |            | 323,017                            |           | 323,017                                       |        
|                                                    |              |            
|Total comprehensive income                          |              |             |                   |            |                                    | 1,860,338 |                                              
|                                                    |             
|Cash dividends (.17¢ per share)                     |              |             | (536,613          | )          |                                    |           | (536,613                                      | )      
|                                                    |              |             |                   |            |                                    |           |                                               |         |      
|Balance at September 30, 2002                       |              | $ 5,449,399 |                   | 30,620,759 |                                    | (273,828  | )                                             | 625,381 |       | 36,421,711
|                                                    |              |             |                   |            |                                    |           |                                               |         |      
|                                                   
|                                                    | Common Stock |             | Retained Earnings |            | Unearned Management Retention Plan |           | Accumulated Other Comprehensive Income (loss) |         | Total |           
|                                                    |              |             |                   |            |                                    |           |                                               |         |      
|Balances at June 30, 2003                           |              | $ 5,622,202 |                   | 33,256,070 |                                    | (228,649  | )                                             | 627,068 |       | 39,276,691
|Amortization of management retention plan           |              |             |                   | 21,052     |                                    |           | 21,052                                        |        
|Issued 636 shares for employee purchase plan        |              | 13,642      |                   |            |                                    |           | 13,642                                        |        
|Issued 241 shares for current directors fees        |              | 5,811       |                   |            |                                    |           | 5,811                                         |        
|Comprehensive income:                               |             
|Net income                                          |              |             | 1,871,729         |            |                                    |           | 1,871,729                                     |        
|Change in unrealized gain (loss) on debt securities |             
|available for sale, net of tax effect               |              |             |                   |            | (223,283                           | )         | (223,283                                      | )      
|                                                    |              |            
|Total comprehensive income                          |              |             |                   |            |                                    | 1,648,446 |                                              
|                                                    |              |            
|Cash dividends (17.0¢ per share)                    |              |             | (538,031          | )          |                                    |           | (538,031                                      | )      
|                                                    |              |             |                   |            |                                    |           |                                               |         |      
|Balances at September 30, 2003                      |              | $ 5,641,655 |                   | 34,589,768 |                                    | (207,597  | )                                             | 403,785 |       | 40,427,611
|                                                    |              |             |                   |            |                                    |           |                                               |         |      

See notes to interim consolidated financial statements.

6

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FNBH BANCORP, INC. AND SUBSIDIARY
        Consolidated Statement of Stockholders' Equity and Comprehensive Income
           For the Nine Months Ended September 30, 2003 and 2002 (Unaudited)

|                                                     | Common Stock |             | Retained Earnings |            | Unearned Management Retention Plan |           | Accumulated Other Comprehensive Income        |         | 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                           | )         |                                               | -       |      
|Amortization of management retention plan            |              |             |                   | 67,114     |                                    |           | 67,114                                        |        
|Issued 3,468 shares for employee purchase plan       |              | 59,877      |                   |            |                                    |           | 59,877                                        |        
|Issued 452 shares for current directors fees         |              | 9,344       |                   |            |                                    |           | 9,344                                         |        
|Issued 1,128 shares for directors' variable fee plan |              | 23,609      |                   |            |                                    |           | 23,609                                        |        
|Net income                                           |              |             | 4,702,004         |            |                                    |           | 4,702,004                                     |        
|Change in unrealized gain on debt securities         |              |             |                   |            |                                    | -         |                                              
|available for sale, net of tax effect                |              |             |                   |            | 598,420                            |           | 598,420                                       |        
|                                                     |              |            
|Total comprehensive income                           |              |             |                   |            |                                    | 5,300,424 |                                              
|                                                     |              |            
|Cash dividends (45.75¢ per share)                    |              |             | (1,442,460        | )          |                                    |           | (1,442,460                                    | )      
|                                                     |              |             |                   |            |                                    |           |                                               |         |      
|Balances at September 30, 2002                       |              | $ 5,449,399 |                   | 30,620,759 |                                    | (273,828  | )                                             | 625,381 |       | 36,421,711
|                                                     |              |             |                   |            |                                    |           |                                               |         |      
|                                                    
|                                                     | Common Stock |             | Retained Earnings |            | Unearned Management Retention Plan |           | Accumulated Other Comprehensive 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                            | )         |                                               | -       |      
|Amortization of management retention plan            |              |             |                   | 112,139    |                                    |           | 112,139                                       |        
|Issued 2,310 shares for employee stock purchase plan |              | 47,612      |                   |            |                                    |           | 47,612                                        |        
|Issued 691 shares for current stock directors fees   |              | 16,504      |                   |            |                                    |           | 16,504                                        |        
|Issued 1,689 shares for directors' variable fee plan |              | 39,996      |                   |            |                                    |           | 39,996                                        |        
|Comprehensive income:                                |             
|Net income                                           |              |             | 4,516,791         |            |                                    |           | 4,516,791                                     |        
|Change in unrealized gain (loss) on debt securities  |             
|available for sale, net of tax effect                |              |             |                   |            | (272,173                           | )         | (272,173                                      | )      
|                                                     |              |            
|Total comprehensive income                           |              |             |                   |            |                                    | 4,244,618 |                                              
|                                                     |              |            
|Cash dividends (.51¢ per share)                      |              | -           |                   | (1,612,872 | )                                  | -         |                                               | -       |       | (1,612,872
|                                                     |              |             |                   |            |                                    |           |                                               |         |      
|Balances at September 30, 2003                       |              | 5,641,655   |                   | 34,589,768 |                                    | (207,597  | )                                             | 403,785 |       | 40,427,611
|                                                     |              |             |                   |            |                                    |           |                                               |         |      

See notes to interim consolidated financial statements.

7

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# FNBH BANCORP, INC. AND SUBSIDIARY

|Consolidated Statements of Cash Flows                                             |                                                                      |                                |               |              |              
|--------------------------------------------------------------------------------- | -------------------------------------------------------------------- | ------------------------------ | ------------- | ------------ | -------------
|Unaudited                                                                         |                                                                      | Nine months ended September 30
|                                                                                  |                                                                      |                                | 2003          |              | 2002         
|                                                                                  |                                                                      |                                |               |              |              
|Cash flows from operating activies:                                               |                                                                     
|                                                                                  | Net income                                                           |                                | $   4,516,791 |              | $   4,702,004
|Adjustments to reconcile net income to net cash provided by operating activities: |                                                                     
|                                                                                  | Provision for loan losses                                            |                                | 800,000       |              | 325,000      
|                                                                                  | Depreciation and amortization                                        |                                | 776,587       |              | 657,913      
|                                                                                  | Net amortization on investment securities                            |                                | 105,092       |              | 189,448      
|                                                                                  | Earned portion of management retention plan                          |                                | 112,139       |              | 67,114       
|                                                                                  | Loss on disposal of equipment                                        |                                | 8,958         |              | 68           
|                                                                                  | Gain on sale of investments                                          |                                | (3,823        | )            | (38,745      
|                                                                                  | Gain on sale of loans                                                |                                | (358,736      | )            | (251,533     
|                                                                                  | Gain on sale of other real estate owned                              |                                | (22,710       | )            | -            
|                                                                                  | Proceeds from sale of loans                                          |                                | 22,327,086    |              | 22,093,781   
|                                                                                  | Origination of loans held for sale                                   |                                | (22,551,120   | )            | (23,080,013  
|                                                                                  | Proceeds from sale of other real estate owned, held for sale         |                                | 760,916       |              | -            
|                                                                                  | (Increase) in accrued interest income and other assets               |                                | (117,341      | )            | (1,349,413   
|                                                                                  | Increase in accrued interest, taxes, and other liabilities           |                                | 344,440       |              | 23,735       
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                  | Net cash provided by operating activities                            |                                | 6,698,279     |              | 3,339,359    
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                 
|Cash flows from investing activities:                                             |                                                                     
|                                                                                  | Purchases of available for sale securities                           |                                | (13,960,659   | )            | (6,035,081   
|                                                                                  | Purchases of held to maturity securities                             |                                | (234,270      | )            | -            
|                                                                                  | Purchases/Stock dividend FHLBI stock                                 |                                | (13,200       | )            | (211,500     
|                                                                                  | Proceeds from sales of available for sale securities                 |                                | -             |              | 7,788,507    
|                                                                                  | Proceeds from maturities and calls of available for sale securities  |                                | 2,000,000     |              | 4,000,000    
|                                                                                  | Proceeds from mortgage-backed securities paydowns-available for sale |                                | 5,052,453     |              | 3,024,230    
|                                                                                  | Proceeds from maturities and calls of held to maturity securities    |                                | 1,745,000     |              | 1,316,175    
|                                                                                  | Proceeds from mortgage-backed securities paydowns-held to maturity   |                                | 26,028        |              | 35,772       
|                                                                                  | Purchases of brokered CDs                                            |                                | (1,089,000    | )            | -            
|                                                                                  | Maturity of brokered CDs                                             |                                | 2,447,000     |              | 485,000      
|                                                                                  | Purchase of loans                                                    |                                | -             |              | (1,671,644   
|                                                                                  | Net increase in loans                                                |                                | (19,906,073   | )            | (30,121,215  
|                                                                                  | Capital expenditures                                                 |                                | (1,512,162    | )            | (1,595,105   
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                  | Net cash used in investing actitities                                |                                | (25,444,883   | )            | (22,984,861  
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                 
|                                                                                  | Cash flows from financing activities:                                |                               
|                                                                                  | Net increase in deposits                                             |                                | 12,472,114    |              | 1,252,258    
|                                                                                  | Increase in brokered CDs                                             |                                | 5,968,458     |              | 2,037,000    
|                                                                                  | Increase in borrowings                                               |                                | -             |              | 4,000,000    
|                                                                                  | Payments on FHLB note                                                |                                | (241,547      | )            | (223,656     
|                                                                                  | Shares issued for employee purchase and directors compensation       |                                | 104,112       |              | 92,830       
|                                                                                  | Dividends paid                                                       |                                | (1,612,872    | )            | (1,442,460   
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                  | Net cash provided by financing activities                            |                                | 16,690,265    |              | 5,715,972    
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                 
|                                                                                  | Net decrease in cash and cash equivalents                            |                                | (2,056,339    | )            | (13,929,530  
|                                                                                 
|Cash and cash equivalents at beginning of year                                    |                                                                      | 33,038,404                     |               | 34,642,995   |              
|                                                                                  |                                                                      |                                |               |              |              
|Cash and cash equivalents at end of period                                        |                                                                      | $ 30,982,065                   |               | $ 20,713,465 |              
|                                                                                  |                                                                      |                                |               |              |              
|                                                                                 
|Supplemental disclosures:                                                         |                                                                     
|                                                                                  | Interest paid                                                        |                                | $   3,298,242 |              | $   5,902,952
|                                                                                  | Federal income taxes paid                                            |                                | 1,740,000     |              | 1,846,000    
|                                                                                  | Loans transferred to other real estate                               |                                | 95,000        |              | 1,285,018    
|                                                                                  | Loans charged off                                                    |                                | 726,959       |              | 684,918      

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 September 30, 2003, and
          consolidated results of operations for the three months and nine months ended
          September 30, 2003 and 2002 and consolidated cash flows for the nine months
          ended September 30, 2003 and 2002.

2.    
          The results of operations for the three months and nine months ended September
          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 $5,830,000 at September 30, 2003,
          $4,501,000 at September 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.

|                             | Third Quarter  | Year to Date  
|---------------------------- | -------------- | --------------
|                             | 2003           | 2002          
|Net income                   | $1,871,729     | $1,537,321    
|Shares outstanding (basic)   | 3,164,895      | 3,156,551     
|Dilutive shares              | _______0       | _______0      
|Shares outstanding (diluted) | 3,164,895      | 3,156,551     
|Earnings per share:          |                |               
|Basic EPS                    | $          .59 | $          .49
|Diluted EPS                  | $          .59 | $          .49

9

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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 nine months ended September
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 | Third Quarter |          | Year-to-Date
|----------------------- | ------------- | -------- | ------------
|except per share data)  | 2003          | 2002     |             
|                        |               |          |             
|Net income              | $1,872        | $1,537   |             
|Net Income per Share    | $    .59      | $    .49 |             

Net income for the three months ended
September 30, 2003 increased approximately $335,000 (21.8%) compared to the same period
last year. In the third quarter of the current year net interest income increased $337,000
(7.6%), the provision for loan losses decreased $125,000 (38.5%) and non-interest income
also increased $184,000 (19.9%). Slightly offsetting these favorable variances was an
increase in non-interest expenses of $132,000 (4.6%) and a higher provision for federal
income taxes of $180,000 (27.1%).

Net income for the first nine months
of the year decreased $185,000 (3.9%) from that reported last year. Contributing to the
decline in 2003 earnings was a provision for loan losses of $800,000 in 2003 compared to
$325,000 in 2002 as well as an increase in non-interest expense of $865,000 (9.9%).
Partially offsetting these decreases in income were increases of $707,000 (5.4%) in net
interest income, increased non-interest income of $389,000 (15.1%) and a decrease of
$58,000 (2.8%) in the provision for federal income tax.

10

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|Net Interest Income | Third Quarter |        | Year-to-Date
|------------------- | ------------- | ------ | ------------
|(in thousands)      | 2003          | 2002   |             
|                    |               |        |             
|Interest Income     | $6,256        | $6,434 |             
|Interest Expense    | 1,469         | 1,984  |             
|                    |               |        |             
|Net Interest Income | $4,787        | $4,450 |             

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)
      September 30, 2003 and 2002

|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |       | 
|--------------------------------------------------------- | ------------------------------------------ | ------------ | -------- | ----------------- | ----------- | ----- | --------------- | ------------- | -------- | ----------------- | ---- | ----- | 
|                                                          | ----------Third Quarter Averages----------
|                                                          | 2003                                       |              | 2002     |                  
|                                                          | Average Balance                            |              | Interest |                   | Rate        |       | Average Balance |               | Interest |                   | Rate
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |      
|Assets:                                                   |                                           
|Short term investments                                    |                                            | $     14,693 |          | $            53.5 |             | 1.43% |                 | $       5,559 |          | $            50.4 |      | 3.55%
|Securities:  Taxable                                      |                                            | 28,759       |          | 273.7             |             | 3.81% |                 | 33,684        |          | 381.1             |      | 4.53%
|Tax-exempt (1)                                            |                                            | 15,551       |          | 273.7             |             | 7.04% |                 | 16,776        |          | 289.2             |      | 6.89%
|Loans(2)(3)                                               |                                            | 345,352      |          | 5,773.6           |             | 6.56% |                 | 316,032       |          | 5,838.4           |      | 7.23%
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |      
|Total earnings assets/total interest income               |                                            | 404,301      |          | $       6,374.5   |             | 6.20% |                 | 372,051       |          | $       6,559.1   |      | 6.91%
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |      
|Cash & due from banks                                     |                                            | 14,101       |          |                   | 15,113     
|All other assets                                          |                                            | 18,118       |          |                   | 19,081     
|Allowance for loan loss                                   |                                            | (5,889       | )        |                   | (5,178      | )    
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                  
|Total Assets                                              |                                            | $   430,631  |          |                   | $   401,067
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                  
|Liabilities and                                           |                                           
|Stockholders' Equity                                      |                                           
|Interest bearing deposits:                                |                                           
|Savings & NOW accounts                                    |                                            | $   172,674  |          | $          295.3  |             | 0.68% |                 | $   150,241   |          | $          571.3  |      | 1.51%
|Time                                                      |                                            | 134,971      |          | 1,057.9           |             | 3.11% |                 | 133,344       |          | 1,262.0           |      | 3.75%
|Short term borrowings                                     |                                            | 4,946        |          | 17.3              |             | 1.37% |                 | 10,216        |          | 48.9              |      | 1.87%
|FHLB Advances                                             |                                            | 5,328        |          | 98.3              |             | 7.22% |                 | 5,569         |          | 102.2             |      | 7.18%
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |      
|Total interest bearing liabilities/total interest expense |                                            | 317,919      |          | $       1,468.8   |             | 1.83% |                 | 299,370       |          | $       1,984.4   |      | 2.63%
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                   |      |      
|Non-interest bearing deposits                             |                                            | 69,133       |          |                   | 62,085     
|All other liabilities                                     |                                            | 3,592        |          |                   | 4,215      
|Stockholders' Equity                                      |                                            | 39,987       |          |                   | 35,937     
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                  
|Total liabilities and shareholders' equity                |                                            | $   430,631  |          |                   | $   401,607
|                                                          |                                            |              |          |                   |             |       |                 |               |          |                  
|Interest spread                                           |                                            |              | 4.37%    |                   |             | 4.28%
|                                                          |                                            |              |          |                   |             |      
|Net interest income-FTE                                   |                                            |              |          | $       4,905.7   |             |       | $       4,574.7
|                                                          |                                            |              |          |                   |             |       |                
|Net interest margin                                       |                                            |              | 4.76%    |                   |             | 4.80%
|                                                          |                                            |              |          |                   |             |      

(1)  Average yield 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 $212,000 in 2003 and $165,000 in 2002.

11

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INTEREST YIELDS AND COSTS (in thousands)
September 30, 2003 and 2002

|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |       | 
|--------------------------------------------------------- | ----------------------------------------- | ------------ | -------- | ---------------- | ----------- | ----- | --------------- | ------------- | -------- | ---------------- | ---- | ----- | 
|                                                          | ----------Year to Date Averages----------
|                                                          | 2003                                      |              | 2002     |                 
|                                                          | Average Balance                           |              | Interest |                  | Rate        |       | Average Balance |               | Interest |                  | Rate
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |      
|Assets:                                                   |                                          
|Short term investments                                    |                                           | $     13,820 |          | $          174.4 |             | 1.68% |                 | $       8,445 |          | $          178.5 |      | 2.79%
|Securities:  Taxable                                      |                                           | 27,654       |          | 833.8            |             | 4.02% |                 | 36,805        |          | 1,300.9          |      | 4.71%
|Tax -exempt (1)                                           |                                           | 16,062       |          | 842.7            |             | 7.00% |                 | 17,229        |          | 895.3            |      | 6.93%
|Loans(2)(3)                                               |                                           | 338,562      |          | 17,165.7         |             | 6.70% |                 | 306,544       |          | 17,356.5         |      | 7.49%
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |      
|Total earnings assets/total                               |                                          
|interest income                                           |                                           | 396,098      |          | $     19,016.6   |             | 6.35% |                 | 369,023       |          | $     19,731.2   |      | 7.08%
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |      
|Cash & due from banks                                     |                                           | 13,101       |          |                  | 14,483     
|All other assets                                          |                                           | 18,325       |          |                  | 17,954     
|Allowance for loan loss                                   |                                           | (5,879       | )        |                  | (5,422      | )    
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                 
|Total Assets                                              |                                           | $   421,645  |          |                  | $   396,038
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                 
|Liabilities and                                           |                                          
|Stockholders' Equity                                      |                                          
|Interest bearing deposits:                                |                                          
|Savings & NOW accounts                                    |                                           | $   172,889  |          | $       1,175.7  |             | 0.91% |                 | $   150,735   |          | $       1,701.5  |      | 1.51%
|Time                                                      |                                           | 133,519      |          | 3,254.6          |             | 3.26% |                 | 130,728       |          | 3,975.2          |      | 4.07%
|Short term borrowings                                     |                                           | 1,721        |          | 17.6             |             | 1.35% |                 | 10,722        |          | 159.3            |      | 1.99%
|FHLB Advances                                             |                                           | 5,340        |          | 294.3            |             | 7.27% |                 | 5,581         |          | 307.1            |      | 7.26%
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |      
|Total interest bearing liabilities/total interest expense |                                           | 313,469      |          | $     4,742.2    |             | 2.02% |                 | 297,766       |          | $     6,143.1    |      | 2.76%
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                  |      |      
|Non-interest bearing deposits                             |                                           | 65,563       |          |                  | 59,826     
|All other liabilities                                     |                                           | 3,549        |          |                  | 3,680      
|Stockholders' Equity                                      |                                           | 39,064       |          |                  | 34,766     
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                 
|Total liabilities and shareholders'     equity            |                                           | $   421,645  |          |                  | $  396,038 
|                                                          |                                           |              |          |                  |             |       |                 |               |          |                 
|Interest spread                                           |                                           |              | 4.33%    |                  | 4.32%      
|                                                          |                                           |              |          |                  |             |      
|Net interest income-FTE                                   |                                           |              |          | $   14,274.4     |             |       |                 | $   13,588.1 
|                                                          |                                           |              |          |                  |             |       |                
|Net interest margin                                       |                                           |              | 4.75%    |                  | 4.85%      
|                                                          |                                           |              |          |                  |             |      

(1)  Average yield 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 $542,000 in 2003 and $574,000 in 2002.

12

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Interest Earning
Assets/Interest Income

On a tax equivalent basis, interest
income decreased approximately $185,000 in the third quarter of 2003 compared to that of
2002. The decrease was the result of a 71 basis point reduction in the yield on earning
assets. This negative trend was partially offset by a $32,250,000 (9%) growth in average
balances of earning assets.

Loan interest decreased approximately
$65,000 due to a 67 basis point decrease in interest rates although average balances
increased $29,000,000 (9%). 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 4.00% throughout the third quarter of this year
compared to 4.75% in the third quarter of 2002. In the third quarter, tax equivalent
income on investments decreased approximately $123,000. The decrease can be attributed to
a $6,000,000 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 investments decreased by 37 basis points for the three
months ended September 30, 2003 compared to last year. In the third quarter of 2003, short
term investments increased $9,000,000 from the comparable period in 2002, however the
yield is 212 basis points lower. The increase in volume is the result of a temporary
increase in deposits due to summer tax collections.

For the first nine months of the
year, tax equivalent interest income decreased approximately $715,000. Loan interest
income decreased approximately $191,000. The interest rate earned on loans decreased 79
basis points while average balances increased $32,000,000 (10%). Loan growth was
concentrated in the commercial portfolio where balances increased $27,000,000 (11%) on
average. Consumer loans had a slight increase of $1,100,000 (3%) while mortgage loans
increased $4,000,000 (14%). In addition to the growth in mortgage loans retained in the
portfolio, the Bank sold approximately $22,102,000 residential mortgage loans, compared to
$14,700,000 in the first nine months of 2002. For the first nine months of the year,
income on short and long term investments decreased $524,000 from that earned in the prior
year due to a $5,000,000 decrease in average balances and a change in mix as described
above, lowering the yields earned by 78 basis points.

Interest Bearing
Liabilities/Interest Expense In the third quarter of 2003,
interest expense decreased $516,000 due to a decrease in the interest rate paid of 80
basis points although average balances increased $18,500,000 (6%). Savings and NOW
interest expense decreased approximately $276,000. The decrease was due to the interest
rate declining 83 basis points as the average balance increased $22,000,000 (15%).
Interest on time deposits decreased $204,000 in the third quarter of 2003 over the prior
year. The decrease was due to a decrease of 64 basis points in rates paid offset by an
increase in the average balance of $1,600,000. In the third quarter of 2003 the Company
had average short term borrowings of $4,946,000 compared to $10,216,000 in the third
quarter of 2002. The interest rate averaged 1.37% in 2003 compared to 1.87% 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, including the issuance of brokered certificates of deposit, have been used to fund
loan demand.

13

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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.
Future loan growth may be funded with FHLBI borrowings.

In the first nine months of the year,
interest expense decreased $1,401,000 from that of the previous year. Contributing to this
decrease was a 74 basis point decrease in rates while average balances of interest bearing
liabilities increased $15,700,000 (5%). Savings and NOW interest expense decreased
approximately $526,000 because the interest rate decreased 60 basis points although
average balances increased $22,000,000 (15%). Interest on time deposits decreased
approximately $721,000 because the rate decreased 81 basis points although the average
balance increased $2,800,000 (2%). In the first nine months of 2003, the Bank incurred
$18,000 of expense to borrow short term money compared to $159,000 in 2002. The short term
borrowings were necessary as loan growth outpaced deposit growth in 2002. The FHLBI
advances are discussed above.

Liquidity 
Liquidity 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 September 30, 2003, the Company had an $18,900,000 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 September 30, 2003, the Bank had Large Certificates totaling
approximately $52,000,000 compared to $44,000,000 at December 31, 2002. In the third
quarter, the bank issued $5,969,000 in brokered certificates through a dealer to help fund
loan growth. Included in the issuance were $2,380,000 maturing in March 2004, $1,218,000
maturing in September 2004 and $2,371,000 maturing in September 2005.

14

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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 $35,000,000 available at the FHLBI. As of September 30,
2003 approximately $5,300,000 of the line had been used 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 Risk

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

In addition to liquidity and interest
rate risk management issues, ALCO discusses the Banks performance and the current
economic outlook and its impact on the Bank and current interest rate forecasts. Actual
results are compared to budget in terms of growth and income. A yield and cost analysis is
done to monitor interest margin. Various ratios are discussed including capital ratios,
other balance sheet ratios, and profitability ratios.

|Interest Rate Sensitivity           |  |           |  |            |  |          |  |            |   |          | 
|----------------------------------- |  | --------- |  | ---------- |  | -------- |  | ---------- | - | -------- | 
|(dollars in thousands)              |  | 0-3Months |  | 4-12Months |  | 1-5Years |  | 5+Years    |   | Total   
|                                    |  |           |  |            |  |          |  |            |   |         
|Assets:                             | 
|Loans                               |  | $165,941  |  | $47,574    |  | $121,690 |  | $11,822    |   | $347,027 | 
|Securities                          |  | 3,198     |  | 14,559     |  | 24,676   |  | 6,438      |   | 48,871   | 
|Brokered CDs                        |  | 1,067     |  | 485        |  | 970      |  | -          |   | 2,522    | 
|Short term investments              |  | 16,748    |  | --0--      |  | --0--    |  | --0--      |   | 16,748   | 
|                                    |  |           |  |            |  |          |  |            |   |         
|Total rate sensitive assets         |  | $186,954  |  | $62,618    |  | $147,336 |  | $   18,260 |   | $415,168 | 
|                                   
|Liabilities & Stockholders' Equity: | 
|Savings & NOW                       |  | $  80,348 |  | -          |  | -        |  | $   99,618 |   | $179,966 | 
|Time                                |  | 21,133    |  | 56,978     |  | 64,484   |  | 434        |   | 143,029  | 
|Other borrowings                    |  | 75        |  | 231        |  | 4,469    |  | 553        |   | 5,328    | 
|                                    |  |           |  |            |  |          |  |            |   |         
|Total rate sensitive liabilities    |  | $101,556  |  | $57,209    |  | $68,953  |  | $100,605   |   | $328,323 | 
|                                   
|Rate sensitivity gap and ratios:    | 
|Gap for period                      |  | $85,398   |  | $5,409     |  | $78,383  |  | $(82,345   | )
|Cumulative gap                      |  | 85,398    |  | 90,807     |  | 169,190  |  | 86,845     |  
|                                   
|Cumulative rate sensitive ratio     |  | 1.84      |  | 1.57       |  | 1.74     |  | 1.26      

15

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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
September 30, 2003. An asset sensitive position would normally indicate increased net
interest income in a rising rate environment. Gap analysis is limited and may not provide
an accurate indication of the impact of general interest rate movements on the net
interest margin since repricing of various categories of assets and liabilities is subject
to the Banks needs, competitive pressures, and the needs of the Banks
customers. In addition, various assets and liabilities indicated as repricing within the
same period may in fact reprice at different times within the period and at different rate
indices. Additionally, simulation modeling, which measures the impact of upward and
downward movements of interest rates on interest margin, provides meaningful insight into
strategies management can take to help mitigate the movement of interest rates.

|Provision for Loan Losses | Third Quarter |      | Year-to-Date
|------------------------- | ------------- | ---- | ------------
|(in thousands)            | 2003          | 2002 |             
|                          |               |      |             
|Total                     | $200          | $325 |             
|                          |               |      |             

The Company  provided a loan loss  provision  of $200,000 in the third  quarter of 2003 having  provided a
provision of $325,000 in the
same period last year.  The  provision in the third  quarter of 2003 is based upon an analysis of losses
inherent in the portfolio and
other  economic  factors.  Nonperforming  loans did decrease from that at June 30, 2003,  but continue to be
$1,733,000  higher than at
December 31, 2002 and $1,329,000  higher than  September 30, 2002. Net charge offs for the third quarter of 2003
were $67,500  compared
to $91,800 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 $800,000  compared to $325,000  last year.  At  September  30, 2003,  the
allowance  for loan loss as a
percent of loans was 1.73%,  compared to 1.70% a year earlier and 1.77% at December 31,  2002.  For the first
nine months of 2003,  the
Bank had net charge offs of $579,000,  compared to $589,000  during the first nine months of 2002. Due to events
arising  subsequent to
September 30, 2003,  the Bank took a $440,000  charge off in October 2003 on two impaired  loans.  As of
September  30, 2003,  $125,000
had been  specifically  reserved for these loans.  These charge offs will have an impact on the determination of
the provision for loan
losses in the  fourth  quarter of 2003.  Non-accrual,  past due 90 days,  and  renegotiated  loans were 1.68% and
1.41% of total  loans
outstanding at September 30, 2003 and 2002, respectively, and 1.25% of total loans at December 31, 2002.

16

---



Impaired loans, as defined by Statement of Financial  Accounting  Standards (SFAS) No. 114, Accounting by
Creditors for Impairment of a
Loan,  totaled  approximately  $9,200,000 at September 30, 2003, and included  non-accrual,  and past due 90 days
other than homogenous
residential  and consumer  loans,  and  $4,500,000 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.  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 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 September 30, 2003,  $2,000,000 at December 31,
2002,  and  $1,500,000 at
September 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
September 30, 2003 compared to
December 31, 2002.

17

---



|Nonperforming Assets                                  |  |                    |                   |        |  
|----------------------------------------------------- |  | ------------------ | ----------------- | ------ | -
|(in thousands)                                        |  | September 30, 2003 | December 31, 2002
|                                                      |  |                    |                  
|Non-accrual loans                                     |  | $4,963             |                   | $3,288 |  
|90 days or more past due and still accruing           |  | 867                |                   | 809    |  
|                                                      |  |                    |                  
|Total nonperforming loans                             |  | 5,830              |                   | 4,097  |  
|Other real estate                                     |  | 65                 |                   | 738    |  
|                                                      |  |                    |                  
|Total nonperforming assets                            |  | $5,895             |                   | $4,835 |  
|                                                     
|Nonperforming loans as a percent of total loans       |  | 1.68               | %                 | 1.25   | %
|Loan loss reserve as a percent of nonperforming loans |  | 103                | %                 | 141    | %

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

|Loans: (dollars in thousands)                       |  | Year to dateSept. 30, 2003 |  | Year to dateSept. 30, 2002
|--------------------------------------------------- |  | -------------------------- |  | --------------------------
|                                                    |  |                            |  |                           
|Average daily balance of loans for the year to date |  | 338,562                    |  | 306,544                   
|Amount of loans, net of unearned income,            | 
|outstanding at endof the quarter                    |  | 347,027                    |  | 318,721                   
|Allowance for loan losses:                          | 
|Balance at beginning of year                        |  | 5,794                      |  | 5,668                     
|Loans charged off:                                  | 
|Real estate                                         |  | 0                          |  | 0                         
|Commercial                                          |  | 544                        |  | 598                       
|Consumer                                            |  | 182                        |  | 87                        
|                                                    |  |                            |  |                           
|Total charge-offs                                   |  | 726                        |  | 685                       
|Recoveries of loans previously charged off:         | 
|Real estate                                         |  | 0                          |  | 0                         
|Commercial                                          |  | 100                        |  | 32                        
|Consumer                                            |  | 47                         |  | 64                        
|                                                    |  |                            |  |                           
|Total recoveries                                    |  | 147                        |  | 96                        
|                                                   
|Net loans charged off                               |  | 579                        |  | 589                       
|Additions to allowance charged to operations        |  | 800                        |  | 325                       
|                                                    |  |                            |  |                           
|Balance at end of quarter                           |  | $    6,015                 |  | $    5,404                
|                                                   
|                                                   
|Ratios:                                             | 
|Net loans charged off (annualized) to average       | 
|loans outstanding                                   |  | .23%                       |  | .26%                      
|Allowance for loan losses to loans outstanding      |  | 1.73%                      |  | 1.70%                     

|Non-interest Income | Third Quarter |      | Year-to-Date
|------------------- | ------------- | ---- | ------------
|(in thousands)      | 2003          | 2002 |             
|                    |               |      |             
|Total               | $1,109        | $925 |             
|                    |               |      |             

18

---



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 $184,000 (19.9%) in the third quarter of 2003
compared to the same period in the previous year. Gain on the sale of loans increased
$24,000 (24.8%) due to increased volume of residential mortgage sales. In the third
quarter of 2003 the Company sold $8,081,000 in residential mortgage loans compared to
$4,900,000 in the same period the previous year. In light of recent increases in mortgage
interest rates, mortgage loan sales and the related gains are expected to significantly
decrease in the fourth quarter. Trust fees increased $54,000 (117.7%) due to higher assets
under management and approximately $40,000 of non-recurring fee income collected in 2003.
Service charge income increased approximately $139,000 (18.5%) primarily the result of an
increase volume of business and in particular higher non-sufficient funds fees.

For the year, non-interest income
increased $389,000 (15.1%). Contributing to the increase was a $177,000 (8.3%) increase in
service charge income primarily the result of increased business offset by the impairment
charge for mortgage servicing rights recorded in second quarter of 2003. Gains on the sale
of loans increased approximately $107,000 (42.6%) due to increased volume for the year to
date, $22,102,000 in the current year compared to $14,700,000 in the previous. Trust fees
increased $70,000 (45%) due to higher assets under management and non-recurring fees
collected in 2003. Other income increased $70,000 due to gains on the sale of other real
estate and the reversal of a reserve for other real estate of $45,000.

|Non-interest Expense | Third Quarter |        | Year-to-Date
|-------------------- | ------------- | ------ | ------------
|(in thousands)       | 2003          | 2002   |             
|                     |               |        |             
|Total                | $2,982        | $2,850 |             
|                     |               |        |             

Non-interest expense increased
$132,000 (4.6%) in the third quarter of 2003 compared to the same period last year. There
were increases in salaries and benefits expense of $71,000 (4.5%) principally due to
normal merit increases and higher benefit costs. Occupancy expense increased $11,000
(4.7%) primarily due to costs associated with higher building service expenses and
property taxes. Equipment expense increased $10,000 (4.6%) due to higher equipment
maintenance costs and higher depreciation expense as the result of the new operations
center. Other expenses also increased $67,000 (16.3%) due primarily to increased computer
service fees.

For the first nine months of the
year, non-interest expense increased $865,000 (9.9%) compared to the prior year. There was
a $385,000 (7.9%) increase in salaries and benefits, made up of a $347,000 (10.6%)
increase in salary expense due to merit increases and additional employees to keep pace
with the Banks growth in assets, and a $38,000 (2.4%) increase in payroll taxes and
medical insurance expense also related to new employees and higher costs. Occupancy
expense was $53,000 (17.9%) 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 (8.0%) due to promotional efforts for the
Brighton market. Other non-interest expense increased $305,000 (25.4%)
primarily due to the valuation reserve for land held for sale and increases in computer
service fees, postage and telephone.

19

---



Partially offsetting these increases
was a decrease in other professional service fees of $25,000 (2.8%) due to lower outside
consultant fees and lower printing and supplies costs of $30,000 (12.9%).

|Income Tax Expense | Third Quarter |      | Year-to-Date
|------------------ | ------------- | ---- | ------------
|(in thousands)     | 2003          | 2002 |             
|                   |               |      |             
|Total              | $842          | $662 |             
|                   |               |      |             

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)                  |  | September 30, 2003 | December 31, 2002
|                                |  |                    |                  
|Stockholders' Equity*           |  | $40,428            |                   | $37,580 |  
|Ratio of Equity to Total Assets |  | 9.14               | %                 | 8.93    | %

*Amounts include securities valuation
adjustments recorded under Statement of Financial Accounting Standards No. 115 amounting
to $404,000 at September 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 $3,120,000 (8.5%) during the first nine months of the year. This increase was
principally the result of net income earned by the company reduced by dividends paid of
$1,613,000.

The Federal Reserve Board provides
guidelines for the measurement of capital adequacy. The Banks capital, as adjusted
under these guidelines, is referred to as risk-based capital. The Banks Tier 1
risk-based capital ratio at September 30, 2003 was 10.27%, and total risk-based capital
was 11.52%. At September 30, 2002 these ratios were 9.81% and 11.07% 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 8.76% at September 30, 2003 and 8.53% 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.

20

---



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
Policies The 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 Obligations 
As of September 30, 2003, December
31, 2002 and September 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 $2,800,000, 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
September 30, 2003, December 31, 2002 and September 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.

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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21

---



| | 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.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 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 Statement of Financial Accounting Standards No. 150,
Accounting for Certain Financial Instruments with Characteristics of
both Liabilities and Equity, (SFAS 150) which requires issuers of
financial instruments to classify as liabilities certain freestanding financial
instruments that embody obligations of the issuer. SFAS 150 was effective for all
freestanding financial instruments entered into or modified after May 31, 2003 and was
otherwise effective at the beginning of the first interim period beginning after June 15,
2003. On October 29, 2003, the FASB voted to defer for an indefinite period the
application of the guidance in SFAS 150 to non-controlling interests that are classified
as equity in the financial statements of a subsidiary but would be classified as a
liability on the parents financial statements. The adoption of the sections of this
Statement that have not been deferred did not have a significant impact on our financial
condition or results of operations. The section noted above that has been deferred
indefinitely is not expected to have a significant impact on our financial condition or
results or operations.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22

---



| | 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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

23

---



PART II  OTHER
INFORMATION

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 July 20, 2003 under Item 12 regarding the Companys
Second 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 September 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: November 7, 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: November 7, 2003                | 
|------------------------------------- | 
|                                     
|/s/ Barbara Draper                   
|                                     
|Barbara DraperChief 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: November 7, 2003                  | 
|--------------------------------------- | 
|                                       
|/s/ Janice B. Trouba                   
|                                       
|Janice B. TroubaChief 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 September 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
September 30, 2003, fairly presents, in all material respects, the financial condition and
results of operations of FNBH Bancorp, Inc.

|                       | FNBH BANCORP, INC.
|---------------------- | ------------------
|                      
|Date: November 7, 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.



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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 September 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
September 30, 2003, fairly presents, in all material respects, the financial condition and
results of operations of FNBH Bancorp, Inc.

|                       | FNBH BANCORP, INC.
|---------------------- | ------------------
|                      
|Date: November 7, 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



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