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

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

                  For the quarterly period ended March 31, 1999
                                       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:  1,562,768  shares of the Company's  Common
Stock (no par value) were outstanding as of March 31, 1999.
<PAGE>
                                      INDEX

                                                                            Page
                                                                          Number
Part I.   Financial Information (unaudited):

   Item 1.
   Interim Financial Statements:
   Consolidated Balance Sheets as of March 31, 1999 and Dec. 31, 1998..........4
   Consolidated Statements of Income, three months ended
   March 31, 1999 and 1998.....................................................5
   Consolidated Statements of Stockholders' Equity and Comprehensive
   Income for three months ended March 31, 1999 and 1998.......................6
   Consolidated Statements of Cash Flows for three months ended
   March 31, 1999 and 1998.....................................................7
   Notes to Interim Consolidated Financial Statements..........................8

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

   Item 3
   Quantitative and Qualitative Disclosures about Market Risk.................18

Part II.  Other Information

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

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



                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

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













                                       3
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>

Consolidated Balance Sheets                                                          March 31       December 31
                                                                                         1999              1998
                                                                                         ----              ----  
<S>                                                                               <C>                <C>  
Assets                                                                            (unaudited)
Cash and due from banks                                                          $ 10,555,444     $  12,304,296
Short term investments                                                             12,453,040        18,934,366
                                                                                   ----------        ----------
   Total cash and cash equivalents                                                 23,008,484        31,238,662

Investment securities held to maturity, net (fair value of $17,304,000
   at March 31, 1999 and $19,066,000 at Dec. 31, 1998)                             16,713,308        18,278,233
Investment securities available for sale, at fair value                            28,678,645        19,765,936
Mortgage-backed securities held to maturity, net (fair value of
   $615,000 at March 31, 1999 and $602,000 at Dec. 31, 1998)                          616,411           601,940
                                                                                      -------           -------
      Total investment securities                                                  46,008,364        38,646,109

Loans:
   Commercial                                                                     145,060,404       137,634,020
   Consumer                                                                        23,715,703        23,064,800
   Real estate mortgages                                                           24,808,825        24,946,777
                                                                                   ----------        ----------
      Total loans                                                                 193,584,932       185,645,597
   Less unearned income                                                               660,961           627,169
   Less allowance for loan losses                                                   4,114,411         3,958,008
                                                                                    ---------         ---------
      Net loans                                                                   188,809,560       181,060,420

Bank premises and equipment - net                                                   7,603,272         7,289,461
Accrued interest and other assets                                                   7,150,874         6,659,232
                                                                                    ---------         ---------
      Total assets                                                               $272,580,554      $264,893,884
                                                                                 ============      ============
Liabilities and Stockholders' Equity
Liabilities
Deposits:
   Non-interest bearing demand                                                   $ 48,621,138      $ 47,401,813
   NOW                                                                             26,050,899        29,087,082
   Savings and money market                                                        77,145,012        75,129,137
   Time                                                                            94,468,096        87,938,732
                                                                                   ----------        ----------
      Total deposits                                                              246,285,145       239,556,764

Accrued interest, taxes, and other liabilities                                      2,343,246         1,840,587
                                                                                    ---------         ---------
      Total liabilities                                                           248,628,391       241,397,351

Stockholders' Equity
Common stock, no par value.  Authorized 4,200,000 shares; 1,562,768
shares issued and outstanding at March 31, 1999 and December 31, 1998               4,821,775         4,821,775
Retained earnings                                                                  19,243,412        18,728,787
Unearned management retention plan                                                    (66,220)          (66,220)
Accumulated other comprehensive income, net                                           (46,804)           12,191
                                                                                     --------            ------
      Total stockholders' equity                                                   23,952,163        23,496,533
      Total liabilities and stockholders' equity                                 $272,580,554      $264,893,884
                                                                                 ============      ============
</TABLE>
   See notes to interim consolidated financial statements

                                       4
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Statements of Income
Unaudited                                                                            Three months ended March 31
                                                                                         1999              1998
                                                                                         ----              ----
<S>                                                                              <C>               <C>
Interest income:
   Interest and fees on loans                                                    $  4,332,872      $  4,001,808
   Interest and dividends on investment securities:
      U.S. Treasury and agency securities                                             327,917           422,812
      Obligations of state and political subdivisions                                 207,743           189,424
      Other securities                                                                 13,084                 0
   Interest on short term investments                                                 204,811            65,500
                                                                                      -------            ------
     Total interest income                                                          5,086,427         4,679,544
                                                                                    =========         =========
Interest expense:
   Interest on deposits                                                             1,936,750         1,756,357
   Other interest expense                                                                 701               666
                                                                                          ---               ---
      Total interest expense                                                        1,937,451         1,757,023
                                                                                    ---------         ---------
 
     Net interest income                                                           3,148,976         2,922,521

Provision for loan losses                                                             210,000           150,000
                                                                                      -------           -------
      Net interest income after provision for loan losses                           2,938,976         2,772,521
                                                                                    ---------         ---------
Non-interest income:
   Service charges                                                                    267,338           372,061
   Gain on sale of loans                                                               59,479            59,430
   Trust fees                                                                          34,287            13,001
   Other                                                                               (4,874)            3,400
                                                                                      -------           -------
      Total non-interest income                                                       356,230           447,892
                                                                                      -------           -------
Non-interest expense:
   Salaries and employee benefits                                                   1,159,442         1,041,832
   Net occupancy                                                                      166,053           132,905
   Equipment expense                                                                  115,079           115,333
   Fees                                                                               148,105            51,695
   Printing and supplies                                                               63,600            65,721
   Michigan Single Business Tax                                                        51,600            52,000
   Other                                                                              447,150           409,235
                                                                                      -------           -------
      Total non-interest expense                                                    2,151,029         1,868,721
                                                                                    ---------         ---------

Income before federal income taxes                                                  1,144,177         1,351,692

Federal income taxes                                                                  317,000           405,000
                                                                                      -------           -------

      Net income                                                                   $  827,177        $  946,692
                                                                                   ==========        ==========

Per share statistics*
   Basic EPS                                                                       $      .53        $      .60
   Diluted EPS                                                                     $      .53        $      .60
   Dividends                                                                       $      .20        $      .18
</TABLE>
*Based on 1,562,768 average shares outstanding during the period ended March 31,
1999 and 1,575,000 average shares  outstanding during the period ended March 31,
1998 See notes to interim consolidated financial statements

                                       5
<PAGE>
                       FNBH BANCORP, INC. AND SUBSIDIARY
     Consolidated Statement of Stockholders' Equity and Comprehensive Income
               For the Three Months Ended March 31, 1999 and 1998
                                   (Unaudited)
<TABLE>
                                                                                         Accumulated 
                                                                                           Other
                                                             Common         Retained     Comprehensive
                                                             Stock          Earnings       Income        Total
                                                             -----          --------       ------        -----
<S>                                                         <C>            <C>           <C>          <C>
Balances at December 31, 1997                              $5,250,000      16,467,201      14,824     21,732,025
Net income                                                                    946,692                    946,692
Change in unrealized gain on debt securities
   available for sale, net of tax effect                                                   (2,846)        (2,846)
                                                                                                           -----
Total comprehensive income                                                                               943,846
Cash dividends (18(cent)per share)                                           (283,500)                  (283,500)
                                                           ----------        --------     -------     ----------
Balances at March 31, 1998                                 $5,250,000      17,130,393      11,978     22,392,371
                                                           ==========      ==========     =======     ========== 
</TABLE>
See notes to interim consolidated financial statements

<TABLE>
                                                                                         Unearned      Accumulated
                                                                                        Management        Other
                                                             Common        Retained      Retention    Comprehensive
                                                             Stock         Earnings        Plan           Income           Total
                                                             -----         --------        ----           ------           -----
<S>                                                         <C>            <C>          <C>              <C>             <C>
Balances at December 31, 1998                              $4,821,775      18,728,787     (66,220)        12,191         23,496,533
Net income                                                                    827,177                                       827,177
Change in unrealized gain (loss) on debt securities
   available for sale, net of tax effect                                                                 (58,995)           (58,995)
                                                                                                                           --------
Total comprehensive income                                                                                                  768,182
Cash dividends (20(cent)per share)                                           (312,552)                                     (312,552)
                                                           -----------     ----------    ---------       --------         ---------

Balances at March 31, 1999                                 $4,821,775      19,243,412    (66,220)        (46,804)        23,952,163
                                                           ==========      ==========    ========        ========        ==========
</TABLE>
See notes to interim consolidated financial statements
<PAGE>
                        FNBH BANCORP, INC. AND SUBSIDIARY
<TABLE>
Consolidated Statements of Cash Flows
Unaudited                                                                             Three months ended March 31
                                                                                         1999              1999
                                                                                         ----              ----
<S>                                                                               <C>                <C>
Cash flows from operating activities:
   Net income                                                                     $   827,177       $   946,692
   Adjustments to reconcile net income to net cash provided by
   operating activities:
      Provision for loan losses                                                       210,000           150,000
      Depreciation and amortization                                                   127,371           110,767
      Net amortization on investment securities                                        20,284             6,144
      Loss on disposal of equipment                                                    18,359               725
      Gain on sale of loans                                                           (59,479)          (59,430)
      Proceeds from sale of loans                                                   3,916,581         3,160,461
      Origination of loans held for sale                                           (4,787,150)       (3,727,477)
      Increase in accrued interest income and other assets                           (491,642)         (468,503)
      Increase (decrease) in accrued interest, taxes, and other liabilities           533,059          (227,677)
                                                                                      -------          --------
         Net cash provided by (used in) operating activities                          314,560          (108,298)
                                                                                      -------          --------

Cash flows from investing activities:
   Purchases of available for sale securities                                     (11,016,013)       (2,006,021)
   Proceeds  from maturities and calls of available for sale securities             1,000,000         2,000,000
   Purchases of held to maturity securities                                          (710,071)       (1,612,814)
   Proceeds from maturities and calls of held to maturity securities                3,075,000         2,000,000
   Proceeds from mortgage-backed securities paydowns-held to maturity                 179,151            62,589
   Net increase in loans                                                           (7,029,092)       (8,003,450)
   Capital expenditures                                                              (459,541)         (873,292)
                                                                                      -------           -------
         Net cash used in investing activities                                    (14,960,566)       (8,432,988)
                                                                                   ----------         ---------
Cash flows from financing activities:
   Net increase in deposits                                                         6,728,381         2,622,864
   Dividends paid                                                                    (312,553)         (283,500)
                                                                                     --------           -------
         Net cash provided by financing activities                                  6,415,828         2,339,364
                                                                                    ---------         ---------

Net decrease in cash and cash equivalents                                          (8,230,178)       (6,201,922)

Cash and cash equivalents at beginning of year                                     31,238,662        18,738,564
                                                                                   ----------        ----------

Cash and cash equivalents at end of period                                        $23,008,484       $12,536,642
                                                                                  ===========       ===========
Supplemental disclosures:
   Interest paid                                                                  $ 1,892,247       $ 1,742,381
   Loans transferred to other real estate                                                   0           335,713
   Loans charged off                                                                   75,793            15,926
See notes to interim consolidated financial statements
</TABLE>

                                       7
<PAGE>
Notes to Interim Consolidated Financial Statements(unaudited)
The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information and with the  instructions to Form 10-Q and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

1. In the opinion of management of the  Registrant,  the unaudited  consolidated
financial   statements  filed  with  this  Form  10-Q  contain  all  adjustments
(consisting of only normal recurring  accruals)  necessary to present fairly the
consolidated  financial  position of the  Registrant  as of March 31, 1999,  and
consolidated results of operations for the three months ended March 31, 1999 and
1998 and  consolidated  cash flows for the three months ended March 31, 1999 and
1998.

2. The results of  operations  for the three months ended March 31, 1999 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 1998
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  $2,707,000  at  March  31,  1999 and
$1,544,000 at December 31, 1998.  (See  Management's  Discussion and Analysis of
financial condition and results of operations).

6. Basic EPS is computed by dividing net income by the weighted  average  common
shares  outstanding.  Diluted  EPS  reflects  dilution of common  stock  options
issued.


                                       8
<PAGE>
Item 2.
                      Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                          Interim Financial Statements

FNBH Bancorp, Inc. (the Company), a Michigan business corporation, is a one bank
holding  company,  which  owns  all of the  outstanding  capital  stock of First
National Bank in Howell (the Bank) and all of the outstanding stock of HB Realty
Co., a subsidiary  which owns real estate.  The following is a discussion of the
Company's  results of  operations  for the three months ended March 31, 1999 and
1998,  and  also  provides  information  relating  to  the  Company's  financial
condition, focusing on its liquidity and capital resources.

<TABLE>
Earnings  (in thousands                                   First Quarter
except per share data)                                  1999         1998
                                                        ----         ----
<S>                                                    <C>          <C>
Net income                                             $  827       $  947

Net Income per Share                                   53(cents)     60(cents)
</TABLE>

Corporate earnings decreased $120,000 (13%) for the three months ended March 31,
1999 compared to the same period of the prior year. The primary  reasons for the
decline  were a decrease of $115,000 in  non-interest  income and an increase of
$258,000  in  non-interest  expense.   During  the  first  quarter  the  Company
experienced unanticipated difficulties with a new computer system. Problems with
billings resulted in decreased income while non-interest  expense went up due to
the cost of personnel to rectify the  difficulties.  Partially  offsetting these
negative  factors  was an increase of  $226,000  in net  interest  income.  This
increase  was the  result  of  overall  growth in the  Bank's  assets as the net
interest margin declined from 5.66 % in 1998 to 5.13% in 1999.

<TABLE>
Net Interest Income                                       First Quarter
-------------------                                     1999         1998
(in thousands)                                          ----         ----
<S>                                                    <C>          <C>
Interest Income                                        $5,086       $4,680
Interest Expense                                        1,937        1,757
                                                       ------        -----
Net Interest Income                                    $ 3,149      $2,923
</TABLE>

The Company's 1999 first quarter net interest  income  increased  $226,000.  The
following table illustrates some of the factors  contributing to the increase in
net interest income for the first quarter.

                                       9
<PAGE>
<TABLE>
                                     TABLE 1
                    INTEREST YIELDS AND COSTS (in thousands)
                             March 31, 1999 and 1998

                                                  ---------------First Quarter Averages----------------
                                                     1999                                    1998
                                                     ----                                    ----
                                    Average                                Average
                                    Balance        Interest      Rate      Balance         Interest      Rate
<S>                                 <C>            <C>          <C>        <C>             <C>           <C>
Assets:
Short term investments              $  17,577      $  204.8     4.66%      $   4,827       $    65.5     5.43%
Securities:  Taxable                   26,728         340.7     5.17%         28,599           422.8     6.03%
             Tax-exempt(1)             16,465         288.8     7.02%         14,600           262.7     7.20%
Loans(2)(3)                           186,250       4,283.6     9.22%        163,176         4,006.1     9.84%
                                    ---------      --------                 --------        --------           
Total earning assets/total
interest income                       247,020      $5,117.9     8.31%       211,202        $ 4,757.1     9.04%
                                                   --------                                 ---------
Cash & due from banks                  12,220                                 8,333
All other assets                       14,364                                 9,418
Allowance for loan loss                (4,040)                               (3,500)
                                    ---------                               --------
  Total assets                      $ 269,564                               $225,453
                                    =========                               ========
Liabilities and
  Shareholders' Equity
Interest bearing deposits:
Savings & NOW accounts              $ 106,485      $  713.4     2.72%      $  86,399       $   636.4     2.99%
Time                                   91,347       1,223.4     5.43%         78,277         1,119.9     5.80%
Fed funds purchased                        63            .7     4.43%             45              .7     5.92%
                                    ---------      --------                ---------       ---------     
Total interest bearing
liabilities/total interest expense    197,895      $1,937.5     3.97%        164,721       $ 1,757.0     4.33%
                                                   --------                                ---------           
Non-interest bearing deposits          47,193                                 36,618
All other liabilities                  2,087                                   1,955
Shareholders' Equity                   22,389                                 22,159
                                    ---------                               --------
Total liabilities and
   shareholders' equity             $269,564                                $225,453
                                    ========                                ========
Interest spread                                                 4.34%                                    4.71%
                                                                =====                                    =====
Net interest income-FTE                            $3,180.4                                $ 3,000.1
                                                   ========                                =========
Net interest margin                                             5.13%                                    5.66%
                                                                =====                                    =====
</TABLE>
    (1)   Average   yields  in  the  above   table  have  been   adjusted  to  a
          tax-equivalent  basis  using a 34% tax rate and  exclude the effect of
          any market value  adjustments  recorded  under  Statement of Financial
          Standards No. 115.
    (2)   For purposes of the computation above,  non-accrual loans are included
          in the average daily loan balances.
    (3)   Interest on loans includes  origination fees totaling $129,000 in 1999
          and $153,000 in 1998.

Interest Earning Assets/Interest Income
On a tax equivalent basis, interest income increased  approximately  $361,000 in
the first  quarter of 1999  compared to that of 1998.  The  increase  was due to
growth in the Bank's earning assets as the rate earned on these assets  declined
73 basis points.

                                       10
<PAGE>
The first quarter average balance in loans  increased 14% to  $186,000,000.  The
rate earned on these loans  declined 61 basis points  reflective of the rates in
the Bank's  market.  The Bank's prime lending rate  decreased 75 basis points in
the fourth quarter of 1998  contributing to the decline in yield.  The growth in
the loan  portfolio  was primarily in  commercial  loans which  increased 22% on
average.  Consumer loans declined 10% while mortgage loans were  unchanged.  The
Bank's resources in the loan department are primarily deployed making commercial
loans.  The lack of growth in the  mortgage  portfolio  is  attributable  to the
Bank's policy of selling fixed rate mortgage  loans.  During the first  quarter,
the Bank sold nearly $4,000,000 mortgage loans to the secondary market.

In the first quarter,  tax equivalent  income on short and long term investments
increased   approximately   $83,000  because  the  average   balance   increased
$12,700,000 although the rate earned decreased 78 basis points. The 27% increase
in  investment  balances  compared  to 14%  growth in loans  contributed  to the
overall  decline in rates on  earning  assets as the lower  yielding  investment
portfolio  absorbed the excess deposit growth which the loan portfolio could not
utilize.

Interest Bearing Liabilities/Interest Expense
In the first quarter of 1999, interest expense increased  approximately $180,000
due to an increase in average  balances of approximately  $33,000,000  partially
offset by a  decrease  in rates of 36 basis  points.  Savings  and NOW  interest
expense increased $77,000 because average balances  increased  $20,000,000 (23%)
while rates  decreased  27 basis  points.  Interest on time  deposits  increased
$103,500 in 1999 over the prior year. Balances increased $13,000,000 (17%) while
the rate paid on time deposits  decrease 37 basis points in the first quarter of
1999 from that of 1998.  The deposit  growth was  principally  the result of the
Bank's marketing efforts to increase its share of Livingston County deposits.

Liquidity                                                         
Liquidity is monitored by the Bank's Asset/Liability Management Committee (ALCO)
which  meets  at least  monthly.  ALCO  developed,  and the  Board of  Directors
approved, a liquidity policy which requires a minimum 15% liquidity ratio. As of
March 31, the Bank's liquidity ratio was 21.31%.

Deposits are the  principal  source of funds for the Bank.  Management  monitors
rates at other  financial  institutions  in the area to ascertain that its rates
are competitive in the market.  Management also attempts to offer a wide variety
of  products  to meet the  needs  of its  customers.  The Bank  does not deal in
brokered funds, and the makeup of its over $100,000 certificates, which amounted
to  approximately  $24,000,000  at March 31,  1999  compared to  $18,000,000  at
December 31, 1998, 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.  During the first three
months of the year, the Bank was very liquid as short term investments  averaged
approximately $17,600,000 while Fed Funds

                                       11
<PAGE>
Purchased  averaged $63,000.  Because of the relatively flat yield curve and the
unfavorable  investing atmosphere in the second half of 1998, proceeds from some
matured  Treasury bonds were invested short term with the Federal Home Loan Bank
of Indianapolis  (FHLB). These funds are available on call and add to the Bank's
liquidity  position.  In addition,  the Bank has a $13,000,000 line available at
the  FHLB and the  Bank  has  pledged  certain  mortgage  loans  and  investment
securities as collateral for this borrowing. In addition, management may look to
"available for sale"  securities in the investment  portfolio to meet additional
liquidity needs.

In addition to liquidity 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 and liquidity.

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 asse and liability categories and an interest
rate shock simulation report. The Bank has no market risk sensitive  instruments
held for  trading  purposes.  The Bank does not enter  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.

                                       12
<PAGE>
<TABLE>
Interest Rate Sensitivity
(dollars in thousands)                               0-3           4-12            1-5            5+
                                                  Months         Months          Years         Years          Total
<S>                                              <C>            <C>            <C>           <C>           <C>
Assets:
   Loans....................................     $54,056        $33,715        $93,370       $12,444       $193,585
   Securities...............................       2,485          6,538         25,292        11,693         46,008
   Short term investments...................      12,453                                                     12,453
   Other assets.............................                                                  17,194         17,194
                                                 -------        -------       --------        ------         ------
      Total assets..........................     $68,994        $40,253       $118,662       $41,331       $269,240

Liabilities & Shareholders' Equity:
   Demand, Savings & NOW....................     $43,966        $16,190        $60,373       $31,288       $151,817
   Time.....................................      47,363         29,933         17,150            22         94,468
   Other liabilities and equity.............                                                  22,955         22,955
                                                 -------        -------        -------        ------         ------
      Total liabilities and equity..........     $91,329        $46,123        $77,523       $54,265       $269,240

Rate sensitivity gap and ratios:
   Gap for period...........................    ($22,335)       ($5,870)       $41,139      $(12,934)
   Cumulative gap...........................     (22,335)       (28,205)        12,934

Cumulative rate sensitive ratio.............         .76            .79           1.06          1.00
Dec. 31, 1998 rate sensitive ratio..........        1.28            .92           1.08          1.00
</TABLE>
Given  the  liability  sensitive  position  of the Bank at March  31,  1999,  if
interest  rates  increase  200 basis  points  and  management  did not  respond,
management   estimates  that  annualized  net  interest  income  would  decrease
approximately  $700,000,  while a  similar  decrease  in rates  would  cause net
interest income to increase by a like amount. As noted above, the entire balance
of savings,  NOW and MMDAs is 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                           First Quarter
-------------------------                         1999         1998
(in thousands)                                    ----         ----
<S>                                                <C>          <C>
         Total                                     $210         $150
                                                   ====         ====
</TABLE>

The  provision for loan losses  increased  $60,000 (34%) in the first quarter of
1999 compared to the prior year. The increase was deemed  appropriate due to the
large  increase in  commercial  loans and the increase in  nonperforming  assets
discussed  below.  In March of 1999, the allowance for loan loss as a percent of
loans was 2.13%, consistent with 2.14% a year earlier, and 2.13% at December 31,
1998.  For the first  three  months  of 1999,  the Bank had net  charge  offs of
$54,000,  compared with net charge offs of $2,000 last year.  Non-accrual,  past
due 90  days,  and  renegotiated  loans  were  1.35%  and  .53% of  total  loans
outstanding at March 31, 1999 and 1998  respectively  and .83% of total loans at
December 31, 1998.

                                       13
<PAGE>
Impaired  loans, as defined by Statement of Financial  Accounting  Standards No.
114,  Accounting by Creditors for  Impairment of a Loan,  totaled  approximately
$5,300,000 at March 31, 1999,  compared to $4,300,000 at December 31, 1998,  and
included non-accrual, and past due 90 days other than homogenous residential and
consumer  loans,  and an additional  $3,200,000 of commercial  loans  separately
identified as impaired.  A loan is considered  impaired when it is probable that
all or part of  amounts  due  according  to the  contractual  terms  of the loan
agreement will not be collectable on a timely basis. Approximately $4,200,000 of
the  impaired  balance  relates  to three  borrowers.  These  loans are all well
collateralized.  One of the loans, for $2,400,000, is current and making regular
payments but was put on the watch list in its construction  phase. The other two
loans are in the process of foreclosure.  Any loss that might occur from them is
not expected to have a material impact on the Company's  financial  condition or
results of operation.

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  $5,300,000  had  specific  reserves  calculated  in
accordance with SFAS No. 114 of $530,000 at Marc 31, 1999.

Nonperforming  assets  are  loans for which the  accrual  of  interest  has been
discontinued,  accruing  loans 90 days or more past due in  payments,  and other
real estate which has been acquired primarily through foreclosure and is waiting
disposition.  The following  table describes  nonperforming  assets at March 31,
1999 compared to December 31, 1998.  Loans are generally  placed on a nonaccrual
basis when  principal  or interest is past due 90 days or more and when,  in the
opinion of  management,  full  collection of principal and interest is unlikely.
Loans  categorized  as ninety days past due and still  accruing are well secured
and in the process of collection.

<TABLE>
Nonperforming Assets                                          Quarter Ended                Year Ended
(in thousands)                                                March 31, 1999            December 31, 1998
                                                              --------------            -----------------
<S>                                                                   <C>                          <C>
Non-accrual loans                                                     $2,393                       $1,519                
90 days or more past due and still accruing                              314                           25                
                                                                      ------                       ------
         Total nonperforming loans                                     2,707                        1,544 
Other real estate                                                          0                            0     
                                                                      ------                       ------
         Total nonperforming assets                                   $2,707                       $1,544

Nonperforming loans as a percent of total loans                        1.40%                         .83%
Nonperforming assets as a percent of total loans                       1.40%                         .83%
Nonperforming loans as a percent of the loan loss reserve                66%                          27%
</TABLE>

Nonperforming  loans  have  increased  in  1999  compared  to  the  prior  year.
Management  believes the increase in loan delinquencies is a temporary situation
brought on by billing problems  associated with the Bank's computer  conversion,
the temporary loss of the loan

                                       14
<PAGE>
collection  staff,  and two large  loans  which  failed to perform as  expected.
Billings  have  improved  as the  problems of data  conversion  have mostly been
resolved and staff has learned how to use the system. The collection  department
is now  partly  staffed.  The two  loans  cited  above  are in  foreclosure  and
management is identifying potential purchasers for the properties.

The following  table sets forth loan balances and  summarizes the changes in the
allowance for loan losses for the first three months of 1999 and 1998.
<TABLE>
                                                                       Year to date           Year to date
Loans:                                                                March 31, 1999         March 31, 1998
                                                                      --------------         --------------
<S>                                                                       <C>                    <C>
   (dollars in thousands)
   Average daily balance of loans for the year to date                    187,697                163,176
   Amount of loans, net of unearned income,
   outstanding at the end of the quarter                                  192,924                167,026
Allowance for loan losses:
   Balance at beginning of year                                             3,958                  3,424
   Loans charged off:
     Real Estate Mortgage                                                       0                      0
      Commercial                                                               41                     11
      Consumer                                                                 35                      5
                                                                               --                      -
         Total charge-offs                                                     76                     16
   Recoveries of loans previously charged off:
      Real Estate Mortgage                                                      0                      0
      Commercial                                                                2                      6
      Consumer                                                                 20                      8
                                                                               --                      -
         Total recoveries                                                      22                     14

Net loans charged off                                                          54                      2
Additions to allowance charged to operations                                  210                    150
                                                                              ---                    ---
         Balance at end of quarter                                       $  4,114               $  3,572

Ratios:
  Net loans charged off (annualized) to average                                           
  loans outstanding                                                           .12%                  .01%
  Allowance for loan losses to loans outstanding                             2.13%                 2.14%
</TABLE>

<TABLE>
Non-interest Income                                         First Quarter
-------------------                                      1999          1998
(in thousands)                                           ----          ----
<S>                                                      <C>           <C>
Total                                                    $356          $448
                                                         ====          ====
</TABLE>

Non-interest  income,  which includes service charges on deposit accounts,  loan
fees,  other operating  income,  and gain(loss) on sale of assets,  decreased by
approximately  $92,000  (20%) in the first  quarter of 1999 compared to the same
period in the previous year.  Part of the decrease was  attributable to problems
related to a computer conversion the Bank

                                       15
<PAGE>
had in the fourth  quarter of 1998.  Certain  deposit  accounts  did not convert
service  charge  routines  correctly  resulting in about $40,000 in lost income.
These problems have been resolved and lost service charge income is not expected
to continue.  Non-interest income was also decreased by about $20,000 related to
the write off of computer equipment not compatible with the new software.

<TABLE>
Non-interest Expense                                        First Quarter
--------------------                                     1999          1998
(in thousands)                                           ----          ----
<S>                                                      <C>          <C>  
Total                                                    $2,151       $1,869 
                                                         ======       ======
</TABLE>

Non-interest  expense  increased  $282,000  (15%) in the first  quarter  of 1999
compared  to the same  period  last year.  Contributing  to this  increase  were
increases of $118,000 (11%) in salaries and benefits, $96,000 in outside service
fees,  and  $38,000  in other  expense.  Making up the  increase  in salary  and
benefits   expense  were  normal  wage  increases  and  an  additional   $58,000
attributable  to extra  contract  help and overtime paid to staff related to the
computer  conversion.  Included in outside  service  fees is $80,000  related to
hiring  outside help to conduct Year 2000 testing.  In other expense is the cost
of education and testing of the new computer system and extra postage related to
mailings associated with the computer change.

<TABLE>
Income Tax Expense                                          First Quarter
------------------                                       1999          1998
(in thousands)                                           ----          ----
<S>                                                      <C>           <C>
         Total                                           $317         $405
                                                         ====         ====
</TABLE>

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

<TABLE>
Capital (in thousands)                           March 31, 1999                        December 31, 1998
-------                                         ------------------                     -----------------
<S>                                              <C>                                   <C>
Shareholders' Equity*                                $23,999                                 $23,484
Ratio of Equity to Total Assets                        8.80%                                   8.87%
</TABLE>

*Amounts exclude securities  valuation  adjustments  recorded under Statement of
Financial  Accounting Standards No. 115 amounting to ($47,000) at March 31, 1999
and $12,000 at December 31, 1998.

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 $515,000 (2%) during the first three
months of the year.  This  increase  was the result of net income  earned by the
company reduced by dividends paid of $312,500.

                                       16
<PAGE>
The Federal  Reserve Board provides  guidelines  for the  measurement of capital
adequacy. The Bank's capital, as adjusted under these guidelines, is referred to
as risk-based  capital.  The Bank's Tier 1 risk-based capital ratio at March 31,
1999 was 9.11%, and total risk-based capital was 10.36%. At March 31, 1998 these
ratios were 12.73% and 13.48% 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 7.24% at March 31,  1999 and 9.18% in 1998.  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. Approximately $800,000 of the cost
has been allocated to a branch site. The Company currently is attempting to sell
the  remaining  acreage  which is not  needed  for the  branch.  A road has been
constructed  on the property.  Any  additional  improvements  that are needed to
enhance the salability of the property are not expected to exceed $200,000.

Construction of the new branch is nearly  complete.  Land and building will cost
approximately   $2,000,000  with  an  additional   $500,000  for  furniture  and
equipment.  The  branch  is  expected  to be open  early in the  third  quarter.
Additionally  the Bank has purchased land in Howell for another branch at a cost
of  approximately  $250,000.  Construction  is  expected  to start in the  first
quarter of 2000.  These  projects  will be financed  from  internally  generated
funds.

Year 2000
Year 2000 issues are an important focus of management's  attention.  The Company
is highly  dependent on  technology  and most bank products are dependent on the
software's ability to make the transition to the Year 2000.  Preparation for the
Year 2000  problem  began three years ago when a  technology  plan was  drafted.
Although the plan identified ten major technology initiatives to be completed in
two to three years,  the Year 2000 project was given first  priority and efforts
began  immediately.  A national ban consulting firm was hired to help prepare an
action plan. The engagement included management  education,  an inventory of all
systems, risk assessment, an action plan, and a project schedule.

A  steering  committee,   comprised  of  ten  key  employees   representing  all
departments  of the bank,  is working on the action  plan.  The  objective is to
ensure  that any system  used by the  company  that  relies on dates will not be
affected by the Year 2000 problem,  not only computers but power systems,  vault
timers, elevators, etc. The plan consists of five phases: awareness, assessment,
renovation,  validation,  and  implementation.  The 

                                       17
<PAGE>
awareness,   assessment,  and  renovation  phases  are  complete.  All  "mission
critical"  systems have been through all five phases and have been determined to
be Year 2000 compliant.  There are some non-critical computer systems which will
be tested in the second quarter.  The Company spent approximately  $1,500,000 on
hardware  and  software in 1998 and the  capital  expenditures  are  essentially
complete for this project.  During the first quarter of 1999,  the Company spent
approximately $100,000 for Year 2000 testing. Any additional expense involved in
testing  non-critical  systems is expected to be minimal.  However,  in spite of
thorough  testing,  the Company can give no guarantee  that the systems of other
service providers, on which the Company relies, will be fully compliant.

The committee also  recognizes that the Company has  relationships  with vendors
and customers which are important to the smooth functioning of its business.  As
a result, the Company has analyzed  significant vendors and customers' Year 2000
readiness and has determined that any failures they may have are not expected to
have a material effect on the Company. Certain vendors,  however, are beyond our
ability to assess.

Management  believes it has an effective  plan in place to resolve the Year 2000
issue in a timely manner and, thus far, activities have tracked according to the
original plan.  Management is in the process of modifying its existing  business
resumption  plans  and is also  developing  contingency  plans  to  address  the
potential risks in the event of Year 2000 failures,  including  noncompliance by
third parties.

This Year 2000  statement is designated as a Year 2000  Readiness  Disclosure in
accordance with the Year 2000 Information and Readiness Disclosure Act.

Accounting Standards                                                       

In June 1998, the FASB issued  Statement of Financial  Accounting  Standards No.
133,  Accounting for Derivative  Instruments and Hedging  Activities (SFAS 133).
SFAS  133  establishes   accounting  and  reporting   standards  for  derivative
instruments and hedging activities.  It requires  recognition of all derivatives
as either  assets or  liabilities  in the  statement of financial  condition and
measurement  of those  instruments  at fair value.  The accounting for gains and
losses  on  derivatives  depends  on the  intended  us of the  derivative.  This
Statement is effective for all fiscal  quarters of fiscal years  beginning after
June 15, 1999, with earlier application  encouraged.  Retroactive application is
not  permitted.  SFAS 133 is not  expected to have a  significant  impact on the
financial condition or operations of the Corporation.

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, 1998.

                                       18
<PAGE>
                          PART II - OTHER INFORMATION e

Item 6.  Exhibits and Reports on Form 8-K  

(a)  Exhibits                                   
         There are none applicable.              

(b)  Reports on Form 8-K:  
          There were no reports  on Form 8-K filed  during the first  quarter of
          1999.







                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly caused this  Quarterly  Report on Form 10-Q for the quarter
ended March 31, 1999 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
               Secretary/Treasurer

DATE:  May 12, 1999


                                       19