SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-Q
                              --------------------

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1997
                                       OR
              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to _______

                         Commission file number 0-25752

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

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

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

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

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X]   No [ ]

The number of shares outstanding of each of the issuers classes of common stock,
as of the latest  practicable  date:  1,575,000  shares of the Company's  Common
Stock (no par value) were outstanding as of June 30, 1997.

                                                              Page 1 of a Total
                                                                    of 19 Pages
<PAGE>
                                      INDEX
                                                                           Page
                                                                         Number
Part I.   Financial Information (unaudited):

    Item 1.
    Interim Financial Statements:
    Consolidated Balance Sheet as of June 30, 1997 and Dec. 31, 1996..........4
    Consolidated Statements of Income, three months ended
    June 30, 1997 and 1996, and six months ended  June 30, 1997 and 1996......5
    Consolidated Statement of Shareholders' Equity for six months
    ended June 30, 1997.......................................................6
    Consolidated Statements of Cash Flows for six months ended
    June 30, 1997 and 1996....................................................7
    Notes to Interim Consolidated Financial Statements........................8

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


Part II.  Other Information

    Item 4...................................................................18

    Item 6...................................................................19

    Signatures...............................................................19

<PAGE>
                         PART I - FINANCIAL INFORMATION

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



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

Consolidated Balance Sheets                                                        June 30          December 31
                                                                                    1997                1996
Assets                                                                           (unaudited)
<S>                                                                              <C>               <C>
Cash and due from banks                                                          $  9,823,025      $  7,069,216
Federal funds sold                                                                    200,000         6,500,000
                                                                                      -------         ---------
   Total cash and cash equivalents                                                 10,023,025        13,569,216

Investment securities held to maturity, net (fair value of $31,614,000
   at June 30, 1997 and $28,160,000 at Dec. 31, 1996)                              31,329,742        27,821,614
Investment securities available for sale, at fair value                            12,019,687        19,047,187
Mortgage-backed securities held to maturity, net (fair value of
   $666,000 at June 30, 1997 and $353,000 at Dec. 31, 1996)                           670,162           351,930
Mortgage-backed securities available for sale, at fair value                           29,587            35,960
                                                                                       ------            ------
      Total investment securities                                                  44,049,178        47,256,691

Loans:
   Commercial                                                                     100,698,073        91,015,036
   Consumer                                                                        24,379,048        22,122,885
   Real estate mortgages                                                           22,993,923        23,402,833
                                                                                   ----------        ----------
      Total loans                                                                 148,071,044       136,540,754
   Less unearned income                                                               510,115           473,311
   Less allowance for loan losses                                                   3,538,221         3,335,044
                                                                                    ---------         ---------
      Net loans                                                                   144,022,708       132,732,399

Bank premises and equipment - net                                                   4,775,804         4,818,603
Accrued interest and other assets                                                   2,869,857         2,909,324
Other real estate owned                                                               684,411           723,011
                                                                                      -------           -------
      Total assets                                                               $206,424,983      $202,009,244
                                                                                 ============      ============

Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                   $ 36,847,866      $ 35,047,948
   NOW                                                                             21,955,397        25,145,241
   Savings and money market                                                        53,435,122        54,979,331
   Time                                                                            71,768,731        65,771,249
                                                                                   ----------        ----------
      Total deposits                                                              184,007,116       180,943,769

Accrued interest, taxes, and other liabilities                                      1,564,482         1,468,367
                                                                                    ---------         ---------
      Total liabilities                                                           185,571,598       182,412,136

Shareholders' Equity*
Common stock, no par value.  Authorized 2,100,000 shares; 1,575,000
shares issued and outstanding at June 30, 1997 and Dec. 31, 1996                    5,250,000         5,250,000
Retained earnings                                                                  15,582,862        14,308,934
Net unrealized gain on debt securities, net of related tax effect                      20,523            38,174
                                                                                       ------            ------
      Total stockholders' equity                                                   20,853,385        19,597,108
      Total liabilities and stockholders' equity                                 $206,424,983      $202,009,244
                                                                                 ============      ============
</TABLE>
   See notes to interim consolidated financial statements
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY


Consolidated Statements of Income

Unaudited                                                          Three Months Ended June        Six Months Ended June
                                                                   1997            1996           1997            1996
                                                                   ----            ----           ----            ----
<S>                                                          <C>             <C>            <C>             <C>
Interest income:
   Interest and fees on loans                                $3,510,183      $3,194,928     $6,810,086      $6,381,095
   Interest and dividends on investment securities:
      U.S. Treasury securities                                  447,105         368,965        929,649         685,845
      Obligations of other U.S. government agencies              39,732          75,037         77,786         150,812
      Obligations of state and political subdivisions           172,836         147,077        346,464         288,043
      Other securities                                            1,328           1,328          1,328           1,328
   Interest on federal funds sold                                 5,694          60,405         57,645         130,974
                                                                  -----          ------         ------         -------
      Total interest income                                   4,176,878       3,847,740      8,222,958       7,638,097
                                                              ---------       ---------      ---------       ---------

Interest expense:
   Interest on deposits                                       1,505,860       1,361,545      2,986,256       2,756,059
   Other interest expense                                        21,492             168         21,492             168
                                                                 ------             ---         ------             ---
      Total interest expense                                  1,527,352       1,361,713      3,007,748       2,756,227
                                                              ---------       ---------      ---------       ---------

      Net interest income                                     2,649,526       2,486,027      5,215,210       4,881,870

Provision for loan losses                                       112,125         112,125        224,250         224,250
                                                                -------         -------        -------         -------
      Net interest income after provision for loan losses     2,537,401       2,373,902      4,990,960       4,657,620
                                                              ---------       ---------      ---------       ---------

Non-interest income:
   Service charges                                              386,069         385,986        766,269         748,200
   Gain on sale of securities                                     1,546               0          1,546               0
   Gain on sale of loans                                         34,316          33,979         72,155          28,405
   Other                                                          8,946          76,892         19,254          82,114
                                                                  -----          ------         ------          ------
      Total non-interest income                                 430,877         496,857        859,224         858,719
                                                                -------         -------        -------         -------

Non-interest expense:
   Salaries and employee benefits                               895,682         823,204      1,812,233       1,644,738
   Net occupancy                                                129,578         129,463        271,427         241,663
   Equipment expense                                            109,638         105,703        217,880         203,970
   Fees                                                         143,021          59,720        189,930          59,720
   Printing and supplies                                         67,933          41,619        121,714          97,018
   Michigan Single Business Tax                                  39,100          34,500         88,100          77,000
   Other                                                        382,104         269,428        664,972         536,772
                                                                -------         -------        -------         -------
      Total non-interest expense                              1,767,056       1,463,637      3,366,256       2,860,881
                                                              ---------       ---------      ---------       ---------

Income before federal income taxes                            1,201,222       1,407,122      2,483,928       2,655,458

Federal income taxes                                            353,000         428,000        737,500         815,000
                                                                -------         -------        -------         -------

      Net income                                             $  848,222      $  979,122     $1,746,428      $1,840,458
                                                             ==========      ==========     ==========      ==========

Per share statistics*
   Net income                                                    $  .54            $.62          $1.11           $1.17
   Dividends                                                     $  .15            $.12           $.30          $  .25
   Book Value                                                    $13.24          $12.00         $13.24          $12.00
</TABLE>
*Based on 1,575,000 shares outstanding in all time periods.
See notes to interim consolidated financial statements
<PAGE>
<TABLE>
                        FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Shareholders' Equity
Unaudited                                                   
                                                                 For the six months ended June 30, 1997

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

Net income                                                           1,746,428                           1,746,428
Change in unrealized gain on debt securities
   available for sale, net of tax effect                                             (17,651)              (17,651)
Cash dividends (30(cent)per share)                                    (472,500)                           (472,500)
                                                    
Balances at June 30, 1997                           $5,250,000      15,582,862        20,523            20,853,385  
                                                    ==========      ==========        ======            ==========
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
<TABLE>
                                    FNBH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows
Unaudited                                                                              Six months ended June 30
                                                                                        1997              1996
                                                                                        ----              ----
<S>                                                                              <C>                <C>
Cash flows from operating activities:
   Net income                                                                    $  1,746,428       $ 1,840,458

   Adjustments  to  reconcile  net  income  to net cash  provided  by  operating
activities:

      Provision for loan losses                                                       224,250           224,250
      Depreciation and amortization                                                   208,695           183,928
      Net amortization on investment securities                                        18,330            26,601
      Loss on disposal of equipment                                                       718               130
      Gain on sale of loans                                                           (72,155)          (28,405)
      Gain on sale of securities                                                       (1,546)                0
      Proceeds from sale of loans                                                   4,825,189         6,039,804
      Origination of loans held for sale                                           (4,784,694)       (6,162,244)
      (Increase) decrease in accrued interest income and other assets                  78,067           (74,329)
      Increase (decrease) in accrued interest, taxes, and other liabilities           105,215          (120,692)
                                                                                      -------
         Net cash provided by operating activities                                  2,348,497         1,929,501
                                                                                    ---------         ---------

Cash flows from investing activities:
   Purchases of available for sale securities                                        (995,781)       (4,972,305)
   Proceeds from sales of available for sale securities                             4,001,563                 0
   Proceeds  from maturities and calls of available for sale securities             4,000,000         1,000,000
   Proceeds from mortgage-backed securities paydowns-available for sale                 6,372             6,372
   Purchases of held to maturity securities                                        (4,555,522)       (7,719,546)
   Proceeds from maturities and calls of held to maturity securities                  500,000         3,970,000
   Proceeds from mortgage-backed securities paydowns-held to maturity                 207,347            69,788
   Net increase in loans                                                          (11,482,899)          (62,210)
   Capital expenditures                                                              (166,615)         (544,673)
                                                                                    ---------         ---------
         Net cash used in investing activities                                     (8,485,535)       (8,252,574)
                                                                                  -----------       -----------

Cash flows from financing activities:
   Net increase in deposits                                                         3,063,347         5,661,348
   Dividends paid                                                                    (472,500)         (393,750)
                                                                                    ---------         ---------
         Net cash provided by financing activities                                  2,590,847         5,267,598
                                                                                    ---------         ---------

Net decrease in cash and cash equivalents                                          (3,546,191)       (1,055,475)

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

Cash and cash equivalents at end of period                                        $10,023,025       $15,400,166
                                                                                  ===========       ===========

Supplemental disclosures:
   Interest paid                                                                  $ 2,949,393       $ 2,760,696
   Federal income taxes paid                                                          600,000           781,000
   Loans transferred from other real estate                                            38,600            45,688
   Loans charged off                                                                   95,899            48,916
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
Notes to Interim Consolidated Financial Statements(unaudited)
The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions to Form 10-Q and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

1. In the opinion of management of the  Registrant,  the unaudited  consolidated
financial   statements  filed  with  this  Form  10-Q  contain  all  adjustments
(consisting of only normal recurring  accruals)  necessary to present fairly the
consolidated  financial  position of the  Registrant  as of June 30,  1997,  and
consolidated  results of  operations  for the three  months and six months ended
June 30, 1997 and 1996 and consolidated cash flows for the six months ended June
30, 1997 and 1996.

2. The results of operations  for the three months and six months ended June 30,
1997 are not  necessarily  indicative of the results to be expected for the full
year.

3. The accompanying  unaudited  consolidated financial statements should be read
in conjunction with the Notes to Consolidated  Financial  Statements in the 1996
Annual Report contained in the Registrant's report on Form 10-K filing.

4. The  provision  for  income  taxes  represents  Federal  income  tax  expense
calculated  using  annualized  rates on  taxable  income  generated  during  the
respective periods.

5.  Management's  assessment  of the  allowance  for loan  losses is based on an
evaluation  of the loan  portfolio,  recent loss  experience,  current  economic
conditions,  and other pertinent factors.  Loans on non-accrual status and those
past due more than 90 days  amounted to $2,091,000 at June 30, 1997 and $557,000
at December 31, 1996.  (See  Management's  Discussion  and Analysis of financial
condition and results of operations).

6. On January 16, 1997,  the Board of  Directors  declared a three for one stock
split,  payable as a dividend of two shares for each one share of company  stock
held of record  January 16,  1997.  The  dividend  was paid  February  16, 1997.
References  to common  stock and per share data have been  restated  for 1996 to
reflect the effect of the split.
<PAGE>
Item 2.
                      Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                          Interim Financial Statements

FNBH Bancorp, Inc. (the Company), a Michigan business corporation, is a one bank
holding  company,  which  owns  all of the  outstanding  capital  stock of First
National  Bank in Howell  (the  Bank).  The  following  is a  discussion  of the
Company's  results of operations  for the three months and six months ended June
30, 1997 and 1996,  and also  provides  information  relating  to the  Company's
financial condition, focusing on its liquidity and capital resources.
<TABLE>
Earnings  (in thousands                      Second Quarter                            Year-to-Date
except per share data)                      1997         1996                         1997      1996
                                            ----         ----                         ----      ----
<S>                                         <C>          <C>                          <C>       <C>
Net income                                  $848         $979                         $1,746    $1,840

Net Income per Share                        $.54         $.62                          $1.11     $1.17
</TABLE>
Net income for the three  months  ended June 30,  1997  decreased  approximately
$130,000  (13%) from the  amount  reported  for the second  quarter of the prior
year. For the quarter,  net interest income  increased  $164,000 (7%).  However,
non-interest  income decreased $66,000 (13%) and non-interest  expense increased
$303,000 (21%),  while federal tax accruals  decreased $75,000 (18%). Net income
for the first  half of the year  decreased  $94,000  (5%)  compared  to the same
period last year. Contributing to this decrease was an increase of $505,000 (8%)
in  non-interest  expense offset by an increase of $333,000 (7%) in net interest
income and a decrease in federal tax accruals of $77,000 (10%).
<TABLE>
Net Interest Income                                Second Quarter                            Year-to-Date
(in thousands)                                    1997         1996                        1997        1996
                                                  ----         ----                        ----        ----
<S>                                               <C>          <C>                        <C>        <C>
Interest Income                                   $4,177       $3,848                     $8,223     $7,638
Interest Expense                                   1,527        1,362                      3,008      2,756
                                                  ------        -----                      -----       ----
Net Interest Income                              $ 2,650       $2,486                     $5,215     $4,882
</TABLE>
The Company's 1997 second quarter net interest  income  increased  $164,000 (7%)
when compared with the same period in the prior year,  while net interest income
for the year to date was $333,000  (7%) higher than that of 1996.  The following
table  illustrates  some of the  factors  contributing  to the  increase  in net
interest income for the period and for the year to date.
<PAGE>
<TABLE>
                                     TABLE 1
                    INTEREST YIELDS AND COSTS (in thousands)
                             June 30, 1997 and 1996

                                                 ---------------Second Quarter Averages----------------

                                                       1997                                    1996
                                                       ----                                    ----
                                          Average                                  Average
                                          Balance       Interest       Rate        Balance       Interest       Rate
Assets:
<S>                                      <C>            <C>           <C>        <C>            <C>            <C>
Fed funds sold                           $    422       $    5.7      5.35%      $   4,584      $    60.4      5.27%
Securities:  Taxable                       32,724          488.1      5.97%         30,355          445.3      5.87%
                   Tax-exempt(1)           13,074          240.9      7.37%         10,716          206.2      7.70%
Loans(2)(3)                               145,205        3,587.6      9.77%        128,943        3,198.3      9.92%
                                          -------        -------                   -------        -------
Total earning assets/total
interest income                           191,425       $4,322.3      8.95%        174,598       $3,910.2      8.96%
                                                        --------                                 --------
Cash & due from banks                       7,458                                    7,268
All other assets                            8,349                                    7,221
Allowance for loan loss                    (3,471)                                  (3,254)
                                         --------                                 --------
   Total assets                          $203,761                                 $185,833
                                         ========                                 ========
Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts                  $  76,848      $   515.8      2.69%      $  73,529      $   498.2      2.71%
Time                                       70,008          990.1      5.67%         62,164          863.3      5.55%
Fed funds purchased                         1,493           21.5      5.69%             12             .2      5.56%
                                         --------       ---------                ---------        -------
Total interest bearing
liabilities/total interest expense        148,349      $ 1,527.4      4.13%        135,705       $1,361.7      4.01%
                                                       ---------                                 --------
Non-interest bearing deposits              33,239                                   29,908
All other liabilities                       1,527                                    1,599
Shareholders' Equity                       20,646                                   18,621
                                          -------                                  -------
Total liabilities and
   shareholders' equity                  $203,761                                 $185,833
                                         ========                                 --------
Interest spread                                                       4.82%                                    4.95%
                                                                      =====                                    =====
Net interest income-FTE                                $ 2,794.9                                $ 2,548.5
                                                       =========                                =========
Net interest margin                                                   5.75%                                    5.84%
                                                                      =====                                    =====
</TABLE>
    (1)   Average   yields  in  the  above   table  have  been   adjusted  to  a
          tax-equivalent  basis  using a 34% tax rate and  exclude the effect of
          any market value  adjustments  recorded  under  Statement of Financial
          Standards No. 115.
    (2)   For purposes of the computation above, non-accruing loans are included
          in the average daily loan balances.
    (3)   Interest on loans includes  origination  fees totaling $72,000 in 1997
          and $126,000 in 1996.
<PAGE>
<TABLE>
                                                     ----------------Year to Date Averages-----------------

                                                         1997                                  1996
                                                         ----                                  ----
                                          Average                                  Average
                                          Balance       Interest       Rate        Balance      Interest        Rate
Assets:
<S>                                    <C>             <C>            <C>        <C>            <C>            <C>
Fed. funds sold                        $    2,195    $      57.6      5.22%   $      4,951   $     131.0       5.23%
Securities:  Taxable                       33,874        1,008.8      5.96%         28,625         838.0       5.61%
                   Tax-exempt(1)           13,040          483.7      7.42%         10,399         403.5       7.76%
Loans(2)(3)                               141,366        6,820.1      9.63%        129,199       6,388.5       9.80%
                                          -------      ---------                  --------      --------
Total earning assets/total
interest income                           190,475      $ 8,370.2      8.77%        173,174      $7,761.0       8.90%
                                                       ---------                                --------
Cash & due from banks                       7,266                                    7,115
All other assets                            8,411                                    7,183
Allowance for loan loss                    (3,419)                                  (3,200)
                                          -------                                   ------
   Total assets                          $202,733                               $  184,272
                                         ========                               ==========
Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts                   $ 79,466    $   1,070.5      2.72%     $   74,432     $ 1,038.5       2.79%
Time                                       68,557        1,915.7      5.64%         61,334       1,717.5       5.60%
Fed Funds Purchased                           751           21.5      5.69%              6            .2       5.56%
                                        ---------      ---------                 ---------      --------
Total interest bearing
liabilities/total interest expense        148,774    $   3,007.7      4.08%        135,772      $2,756.2       4.08%
                                                       ---------                                --------
Non-interest bearing deposits              32,092                                   28,604
All other liabilities                       1,673                                    1,603
Shareholders' Equity                       20,194                                   18,293
                                         --------                                ---------
Total liabilities and
  shareholders' equity                   $202,733                                $ 184,272
                                         ========                                =========
Interest spread                                                       4.69%                                    4.82%
                                                                      =====                                    =====
Net interest income-FTE                               $  5,362.5                                $5,004.8
                                                      ==========                                ========
Net interest margin                                                   5.59%                                    5.69%
                                                                      =====                                    =====
</TABLE>
    (1)   Average   yields  in  the  above   table  have  been   adjusted  to  a
          tax-equivalent  basis  using a 34% tax rate and  exclude the effect of
          any market value  adjustments  recorded  under  Statement of Financial
          Standards No. 115.
    (2)   For  purposes  of  the  computations  above,  non-accruing  loans  are
          included in the average daily loan balances.
    (3)   Interest on loans includes  origination fees totaling $147,000 in 1997
          and $238,000 in 1996


Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased  approximately  $412,000 in
the second  quarter of 1997 compared to that of 1996.  In the second  quarter of
the year,  income on Fed Funds was $55,000 less than the same period in 1996, in
spite of an increase in rates of 8 basis points,  because average  balances were
$4,200,000  lower. For the year,  income on Fed Funds was $73,000 less than 1996
because average balances were $2,800,000 lower. Rates were nearly identical.

In the second  quarter,  income on taxable  securities  increased  approximately
$43,000 both because the rate increased 10 basis points and the average  balance
increased  $2,400,000.  Income from tax-exempt securities increased $35,000 even
though the yield fell 33 basis
<PAGE>
points because the average balance  increased by approximately  $2,400,000.  For
the  first  six  months of the year,  income  on  taxable  securities  increased
$171,000 over the prior year both due to a 35 basis point  increase in rates and
a $5,200,000 increase in average balances.  Income on tax-exempt  securities was
$80,000 higher than the first half of 1996. Rates declined 34 basis points while
average balances increased $2,600,000.

In the second quarter of this year,  tax  equivalent  loan interest was $398,000
higher  than the same  period in 1996 due to an  increase  in  average  balances
exceeding  $16,000,000 while rates declined 15 basis points. The growth in loans
was principally in the commercial  sector. The decline in mortgage loan balances
was the result of the Bank's policy of selling  fixed rate  mortgage  loans with
fifteen year and longer maturities. The Bank retains variable rate mortgages but
there has not been sufficient demand for these products to offset the run off of
older mortgage loans paying down. For the first half of the year,  loan interest
income increased  $430,000,  with average  balances up $12,000,000  while yields
declined 17 basis points.

Interest Bearing Liabilities/Interest Expense
In the second quarter of 1997,  interest expense increased  $166,000 both due to
an increase in rates of 12 basis  points and an increase in average  balances of
$12,600,000. Savings and NOW interest expense increased $18,000 because balances
increased  $3,300,000  although rates declined 2 basis points.  Interest on time
deposits  increased  $127,000  in 1997 over the prior year.  Balances  increased
$7,800,000  and the rate paid on time deposits  increased 12 basis points in the
second  quarter of 1997  compared to that of 1996.  The  deposit  growth was the
result of the Bank's  marketing  efforts  to  increase  its share of  Livingston
County  deposits.  The  increase in rates on  certificates  reflects  prevailing
trends in the market.  Average Fed Funds purchased in the second quarter of this
year exceeded last year by approximately $1,500,000.

In the first  half of the year,  interest  expense  was  approximately  $250,000
higher  than  1996 due to  average  balances  of  interest  bearing  liabilities
increasing $13,000,000.  The average rate paid in the first half of 1997 was the
same as  1996.  Savings  and NOW  interest  expense  increased  $32,000  because
balances  increased  $5,000,000  although  the  interest  rate  declined 7 basis
points.  Interest  on time  deposits  increased  $198,000  because  the  balance
increased  $7,200,000 and the rate increased 4 basis points.  Fed Fund Purchased
interest  increased $21,000 because the balance increased  $745,000 and the rate
increased 13 basis points.

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

Deposits are the  principal  source of funds for the Bank.  Management  monitors
rates at other  financial  institutions  in the area to ascertain that its rates
are competitive in the
<PAGE>
market. Management also attempts to offer a wide variety of products to meet the
needs of its customers. The Bank does not deal in brokered funds, and the makeup
of its over $100,000  certificates,  which  amounted to  $12,900,000 at June 30,
1997, consists of local depositors known to the Bank.

It is the  intention of the Bank's  management  to handle  unexpected  liquidity
needs  through its Federal Funds  position.  The goal is to maintain a daily Fed
Funds  balance  sufficient  to cover  required  cash  draws.  The Bank's  policy
requires all purchases of Fed Funds to be approved by senior  management so that
liquidity  needs are known.  In the event the Bank must  borrow for an  extended
period, management may look to "available for sale" securities in the investment
portfolio  for  liquidity.  In April of this year,  the Bank sold  $4,000,000 in
Treasury  securities to meet  liquidity  needs.  The Bank has also had to borrow
more this year as loan demand has exceeded deposit growth. During the first half
of the year, Fed Funds Purchased balances averaged $751,000 while Fed Funds Sold
balances averaged $2,200,000.

In addition to liquidity issues, ALCO discusses the current economic outlook and
its impact on the Bank and current  interest rate forecasts.  Actual results are
compared to budget in terms of growth and income.  A yield and cost  analysis is
done to monitor interest margin.  Various ratios are discussed including capital
ratios and liquidity.  The quality of the loan portfolio is reviewed in light of
the current  allowance.  The rate sensitivity  report is analyzed and strategies
are  created to attempt to produce  the desired  results.  The rate  sensitivity
report  describes  the  repricing  schedule  for  various  asset  and  liability
categories.
<TABLE>
Interest Rate Sensitivity
(dollars in thousands)                            0-3            4-12            1-5            5+
                                                 Months         Months          Years         Years          Total
Assets:
<S>                                              <C>            <C>            <C>           <C>           <C>
   Loans.....................................    $56,404        $29,688        $53,719       $ 5,909       $145,720
   Securities................................      1,000         13,648         20,250         8,989         43,887
   Fed funds.................................        200                                                        200
   Other assets..............................                                                 16,618         16,618
                                                                                                             
      Total assets...........................    $57,604        $43,336        $73,969       $31,516       $206,425

Liabilities & Shareholders' Equity:
   Demand, Savings & NOW.....................    $29,483        $12,857        $42,521       $27,405       $112,266
   Time......................................     18,070         32,870         20,828             1         71,769
   Other liabilities and equity..............                                                 22,390         22,390
                                                                                                            
      Total liabilities and equity...........    $47,553        $45,727        $63,349       $49,796       $206,425

Rate sensitivity gap and ratios:
   Gap for period............................    $10,051       $ (2,391)       $10,620     $ (18,280)
   Cumulative gap............................     10,051          7,660         18,280

Cumulative rate sensitive ratio..............       1.21           1.08           1.12          1.00
Dec. 31, 1996 rate sensitive ratio...........       1.45           1.22           1.16          1.00
</TABLE>
<PAGE>
Given the asset  sensitive  position of the Bank at June 30,  1997,  if interest
rates  decrease 200 basis  points and  management  did not  respond,  management
estimates  that  annualized  net interest  income would  decrease  approximately
$150,000,  while a similar  increase in rates would cause net interest income to
increase  by a like  amount.  In the  preceding  table,  the  entire  balance of
savings,  MMDA,  and NOW are not  categorized  as 0-3 months,  although they are
variable rate  products.  Some of these balances are core deposits which are not
considered rate sensitive based on the Bank's historical experience and industry
practice.
<TABLE>
Provision for Loan Losses                         Second Quarter                              Year-to-Date
(in thousands)                                   1997         1996                          1997        1996
                                                 ----         ----                          ----        ----
         <S>                                     <C>          <C>                           <C>         <C>
         Total                                   $112         $112                          $224        $224
                                                 ====         ====                          ====        ====
</TABLE>
The  provision  for loan  losses of  $112,000  remained  the same for the second
quarter of 1997 as it was the prior year.  Year to date the  provision  has also
remained the same at $224,000. In June of 1997, the allowance for loan loss as a
percent of loans was 2.39%,  compared to 2.59% a year earlier. For the first six
months of 1997,  the Bank had net  charge  offs of  $21,000,  compared  with net
charge offs of $6,000 last year. Non-accrual, past due 90 days, and renegotiated
loans were 1.41% and .76% of total loans  outstanding  at June 30, 1997 and 1996
respectively.

Impaired  loans, as defined by Statement of Financial  Accounting  Standards No.
114,  Accounting by Creditors for  Impairment of a Loan,  totaled  approximately
$3,800,000  at June 30,  1997,  compared to  $820,000  at December  31, 1996 and
included non-accrual, and past due 90 days other than homogenous residential and
consumer  loans,  and, at June 30, 1997, an additional  $2,000,000 of commercial
loans  separately  identified  as impaired.  The  increase in impaired  loans is
primarily  due to problem loans with two large  creditors.  A loan is considered
impaired  when it is probable  that all or part of amounts due  according to the
contractual terms of the loan agreement will be uncollectible.

Management  assessment  of  the  allowance  for  loan  losses  is  based  on the
composition of the loan portfolio, an evaluation of specific credits, historical
loss  experience,  the level of  nonperforming  loans  and loans  that have been
identified as impaired. Externally, the local economy and events or trends which
might negatively impact the loan portfolio are also considered. Certain impaired
loans  with  a  balance  of  $3,700,000  had  specific  reserves  calculated  in
accordance with SFAS No. 114 of $600,000 at June 30, 1997.

Nonperforming  assets  are  loans for which the  accrual  of  interest  has been
discontinued,  accruing  loans 90 days or more past due in  payments,  and other
real estate which has been acquired primarily through foreclosure and is waiting
disposition. The following table describes nonperforming assets at June 30, 1997
compared to December 31, 1996. The loans categorized as ninety days past due are
all well secured and in the process of collection.
<PAGE>
<TABLE>
Nonperforming Assets                                                  Quarter Ended            Year Ended
(in thousands)                                                        June 30, 1997        December 31, 1996
                                                                      -------------        -----------------
<S>                                                                   <C>                  <C>
Non-accrual loans                                                         $2,016                 $109
90 days or more past due and still accruing                                   75                  448
                                                                         -------                 ----
         Total nonperforming loans                                         2,091                  557
Other real estate                                                            684                  723
                                                                         -------                -----
         Total nonperforming assets                                       $2,775               $1,280

Nonperforming loans as a percent of total loans                             1.41%                 .41%
Nonperforming assets as a percent of total loans                            1.87%                 .94%
Nonperforming loans as a percent of the loan loss reserve                     59%                  17%
</TABLE>
The  reduction in Other Real Estate was the result of selling some of the assets
related  to the  property  that  had  been  foreclosed.  Sale of the  assets  is
continuing and should conclude by the end of the third quarter.

The following  table sets forth loan balances and  summarizes the changes in the
allowance for loan losses for the first six months of 1997 and 1996.
<TABLE>

                                                                          Year to date           Year to date
Loans:   (dollars in thousands)                                           June 30, 1997          June 30, 1996
<S>                                                                       <C>                    <C>
   Average daily balance of loans for the year to date                    141,366                128,943
   Amount of loans (gross) outstanding at end of the
   quarter                                                                148,071                128,125
Allowance for loan losses:
   Balance at beginning of year                                             3,335                  3,097
   Loans charged off:
      Real estate                                                               0                      0
      Commercial                                                               44                     32
                           
      Consumer                                                                 52                     17
                                                                               --                     --
         Total charge-offs                                                     96                     49
                               
   Recoveries of loans previously charged off:
      Real estate                                                              33                      0
      Commercial                                                               24                     11
      Consumer                                                                 18                     31
                                                                               --                     --
         Total recoveries                                                      75                     42

Net loans charged off                                                          21                      7
Additions to allowance charged to operations                                  224                    224
                                                                             ----                    ---
         Balance at end of quarter                                         $3,538                 $3,314

Ratios:
    Net loans charged off (annualized) to average
    loans outstanding                                                         .03%                   .01%
   Allowance for loan losses to loans outstanding                            2.39%                  2.59%
</TABLE>
<PAGE>
Although  nonperforming loans have increased in 1997 compared to the prior year,
management  believes it has been quite aggressive in recognizing  problem loans.
Loans are generally  placed on a nonaccrual  basis when principal or interest is
past due 90 days or more and when, in the opinion of management, full collection
of principal and interest is unlikely. In addition, net charge offs for the Bank
have been historically low.
<TABLE>
Non-interest Income           Second Quarter                 Year-to-Date
(in thousands)                1997      1996                1997      1996
                              ----      ----                ----      ----
<S>                           <C>       <C>                 <C>       <C>
Total                         $431      $497                $859      $859
                              ====      ====                ====      ====
</TABLE>
Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  other operating  income,  and gain(loss) on sale of assets and securities
transactions,  decreased by $66,000 (13%) in the second quarter of 1997 compared
to the same period in the previous year. The only category to show a significant
change in the second quarter was "Other Income" which declined  $68,000 from the
previous  year.  In 1996 other  income  included a $70,000 gain from the sale of
other real estate.

For the year,  non-interest  income was  unchanged.  Service  charge  income was
approximately $20,000 higher than the previous year and the gain from loan sales
has increased $45,000 in 1997. Other income has declined $63,000 for the year as
noted above.
<TABLE>
Non-interest Expense          Second Quarter                 Year-to-Date
(in thousands)                1997      1996                1997      1996
                              ----      ----                ----      ----
<S>                           <C>       <C>                 <C>       <C>
Total                         $1,767    $1,464              $3,366    $2,861
                              ======    ======              ======    ======
</TABLE>
Non-interest  expense  increased  $300,000  (21%) in the second  quarter of 1997
compared to the same  period last year.  Contributing  to this  increase  was an
increase of $70,000 in salaries and benefits expense and a $230,000  increase in
other expense.  Salaries increased,  in part, because an analysis of jobs in the
Bank  completed  late in 1996 showed that some salary  adjustments  needed to be
made.  In  addition,  a Trust  Officer  was hired in April and the  accrual  for
medical  benefits was $40,000  higher in the second  quarter of 1997 compared to
last year. Legal fees increased  $35,000 for the quarter due to costs of working
out some problem loans and disposing of Other Real Estate. Taxes associated with
the Other Real Estate boosted ORE expense by nearly  $30,000 this quarter.  Fees
for services were $80,000 higher in the second quarter of 1997 than the previous
year's second quarter  principally  because the Bank has hired  consultants  for
selected special projects. These costs or similar costs are expected to continue
throughout  the  year.   Management  is  committed  to  investing  resources  in
initiatives that will keep the Bank competitive in the future.
<PAGE>
For the year non-interest  expense was $505,000 (18%) higher than 1996. In spite
of the  increase  in  non-interest  expense,  the Bank was  able to  achieve  an
efficiency ratio of 54%.

The Bank anticipates additional expenses later this year, and into 1998, as some
additional  start up costs for the trust  department and expenses related to the
Bank's  Year  2000  project  are  incurred.  The  Bank is  highly  dependent  on
technology and several  applications are dependent on the software's  ability to
make the  transition  to the year  2000.  The Bank  has  hired a  consultant  to
recommend  actions related to year 2000 compliance.  A committee is implementing
these steps at this time. It is anticipated that the cost of the consultant will
be approximately $20,000. Other out of pocket expenses are not anticipated to be
significant unless the Bank needs to make software changes which could result in
major capital outlays.
<TABLE>
Income Tax Expense            Second Quarter                 Year-to-Date
(in thousands)                1997      1996                1997      1996
                              ----      ----                ----      ----
         <S>                  <C>       <C>                 <C>       <C>
         Total                $353      $428                $738      $815
                              ====      ====                ====      ====
</TABLE>
Fluctuations  in income taxes  resulted  primarily  from changes in the level of
profitability and in variations in the amount of tax-exempt income. The decrease
of $75,000 in the second quarter tax accrual and $77,000 in the year to date tax
accrual was principally the result of declining income.
<TABLE>
Capital (in thousands)                             June 30, 1997                                  December 31, 1996
<S>                                                <C>                                            <C>
Shareholders' Equity*                              $20,833                                        $19,559
Ratio of Equity to Total Assets                      10.09%                                          9.68%
</TABLE>
*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial Accounting Standards No. 115 amounting to $21,000 at June 30, 1997 and
$38,000 at December 31, 1996.

A financial institution's capital ratio is looked upon by the regulators and the
public as an indication of its soundness.  Shareholders'  equity,  excluding the
securities  valuation  adjustment,  increased $1,270,000 (6.5%) during the first
half of the year.  This  increase  was the  result of net  income  earned by the
company reduced by dividends paid of $472,500.

The Federal  Reserve Board provides  guidelines  for the  measurement of capital
adequacy. The Company's capital, as adjusted under these guidelines, is referred
to as risk-based capital.  The Company's Tier 1 risk-based capital ratio at June
30, 1997 was 14.56%,  and total risk-based  capital was 15.81%. At June 30, 1996
these  ratios were 15.20% and 16.45%  respectively.  Minimum  regulatory  Tier 1
risk-based and total  risk-based  capital ratios under the Federal Reserve Board
guidelines are 4% and 8% respectively.
<PAGE>
The capital guidelines also provide for a standard to measure risk-based capital
to total assets which is called the leverage ratio. The Company's leverage ratio
was 10.20% at June 30, 1997 and 10.15% in 1996.  The minimum  standard  leverage
ratio is 3% but financial institutions are expected to maintain a leverage ratio
1 to 2 percentage points above the 3% minimum.

The Bank is committed to spending in excess of $1,000,000 on various  technology
improvements.  In  addition,  the  Bank  has  received  regulatory  approval  to
establish  a new  branch in the  northwest  part of  Brighton  and is  currently
looking  for a  site.  The  projects  mentioned  above  will  be  financed  from
internally generated funds.


                           PART II - OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders
The registrant's  annual meeting of shareholders was held on April 23, 1997. The
shareholders voted on the election of directors.

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

Term expiring in 1999:
                                    Shares voted for        Shares voted against
         R. Michael Yost               1,120,762                     2,475

Term expiring in 2000:

         Gary R. Boss                  1,121,914                     1,323
         Peter H. Burgher              1,122,097                     1,140
         Donald K. Burkel              1,122,190                     1,047
         Harry E. Griffith             1,122,442                       795

Additionally, the following directors continue in office.

Term expiring in 1998:
         Rebecca S. English
         W. Rickard Scofield
         Roy A. Westran
         Barbara D. Martin

Term expiring in 1999:
         S.W. Itsell
         Dona Scott Laskey
         Charles N. Holkins
<PAGE>
Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits
      There are none applicable.

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




                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly caused this  Quarterly  Report on Form 10-Q for the quarter
ended June 30, 1997 to be signed on its behalf by the undersigned  hereunto duly
authorized.


                  FNBH BANCORP, INC.



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




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





DATE:  August 7, 1997