<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


 [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 pursuant to Section 13 or 15(d) of the Securities Exchange Act 
     of 1934



                         COMMISSION FILE NUMBER 0-23381


                     BINGHAM FINANCIAL SERVICES CORPORATION
             (Exact Name of Registrant as Specified in its Charter)


                 Michigan                               38-3313951              
         (State of Incorporation)           (I.R.S. Employer Identification No.)
                                                                                
           260 East Brown Street                                                
                 Suite 200                                                      
           Birmingham, Michigan                          48009                
     (Address of Principal Executive                  (Zip Code) 
     Offices)                                                                   
                                                    
         
       Registrant's telephone number, including area code: (248) 644-5470

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 [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:

       1,576,818 shares of Common Stock, no par value as of April 30, 1999


                                  Page 1 of 20
<PAGE>   2


                     BINGHAM FINANCIAL SERVICES CORPORATION
                                      INDEX
                                    ---------

<TABLE>
<CAPTION>

                                                                                  PAGE
                                                                                  ----
<S>                                                                             <C>
PART I

Item 1. Financial Statements:

        Consolidated Balance Sheets as of March 31, 1999 and
             September 30, 1998                                                     3

        Consolidated Statements of Operations for the Three Months and Six
             Months Ended March 31, 1999 and 1998                                   4

        Consolidated Statements of Cash Flows for the Six Months Ended
             March 31, 1999 and 1998                                                5

        Notes to Consolidated Financial Statements                                6-9


Item 2. Management's Discussion and Analysis of Financial
             Condition and Results of Operations                                10-15

Item 3. Quantitative and Qualitative Disclosures About Market Risk              16-17


PART II

        Item 1 Legal Proceedings                                                   18

        Item 6 (a) Exhibits Required by Item 601 of Regulation S-K                 18

        Signatures                                                                 19

        Exhibit Index                                                              20


</TABLE>


                                       2

<PAGE>   3



                     BINGHAM FINANCIAL SERVICES CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1999 AND SEPTEMBER 30, 1998
                                   ----------


<TABLE>
<CAPTION>

                                                                            MARCH 31,        SEPTEMBER 30,                          
                                    ASSETS                                    1999               1998       
                                                                      ------------------------------------
                                                                         (In thousands, except share data)
                                                                      ------------------------------------
                                                                         (Unaudited)

<S>                                                                   <C>                  <C>          
Cash and cash equivalents                                             $           -        $       1,979
Restricted cash                                                               4,016                2,253
Loans receivable, net                                                       136,002               86,075
Property and equipment, net                                                     863                  655
Other assets                                                                  3,862                3,897
                                                                      -------------        -------------

         Total assets                                                 $     144,743        $      94,859
                                                                      =============        =============

     LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
     Advances by mortgagors                                           $       4,008        $       2,238
     Accounts payable and accrued expenses                                      139                  636
     Advances under repurchase agreements                                    94,668               56,892
     Subordinated debt, net of debt discount
         of $472 and $510, respectively                                       3,528                3,490
     Notes payable                                                           27,404               17,848
                                                                      -------------        -------------

         Total liabilities                                                  129,747               81,104
                                                                      -------------        -------------

Minority interest                                                               252                  298 
                                                                      -------------        -------------
                          
Stockholders' equity:
     Preferred stock, no par value, 10,000,000 shares
         authorized; no shares issued and outstanding                            --                   --
     Common stock, no par value, 10,000,000 shares
         authorized; 1,576,818 shares issued and
         outstanding                                                         13,608               13,608
     Paid-in capital                                                            576                  533
     Retained earnings (deficit)                                                560                 (684)
                                                                      -------------        ------------- 

                    Total stockholders' equity                               14,744               13,457
                                                                      -------------        -------------

                    Total liabilities and stockholders'
                    equity                                            $     144,743        $      94,859
                                                                      =============        =============
</TABLE>


The accompanying notes are an integral part of the financial statements.



                                       3
<PAGE>   4


                     BINGHAM FINANCIAL SERVICES CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
        FOR THE THREE MONTHS AND SIX MONTHS ENDED MARCH 31, 1999 AND 1998
                                   ----------


<TABLE>
<CAPTION>


                                                                 THREE MONTHS ENDED                     SIX MONTHS ENDED
                                                                      MARCH 31,                             MARCH 31,
                                                               1999               1998                 1999           1998   
                                                       ----------------------------------------------------------------------
                                                                          (In thousands, except share data)                  
REVENUES:                                              ----------------------------------------------------------------------
<S>                                                    <C>               <C>              <C>                <C>          
        Interest income                                $        2,617    $         423    $        4,735     $         739
        Mortgage origination and servicing fees                   201              168               553               167
        Unrealized gain on loans held for sale, net             1,150               --             2,400                --
        Gain on sale of loans                                     274               --               563                --
        Other income                                               46               40                92                41
                                                       --------------    -------------    --------------     -------------
                Total revenues                                  4,288              631             8,343               947
                                                       --------------    -------------    --------------     -------------

COSTS AND EXPENSES:
        Interest expense                                        1,841              135             3,541              286
        Provision for credit losses                                63               30               160               51
        General and administrative                                899              240             1,459              328
        Other operating expenses                                  737               46             1,361               68
                                                       --------------    -------------    --------------     ------------
                Total costs and expenses                        3,540              451             6,521              733
                                                       --------------    -------------    --------------     ------------

                Income before income taxes                        748              180             1,822              214

Provision for income taxes                                        268               60               577               72
                                                       --------------    -------------    --------------     ------------


        Net income                                     $          480    $         120    $        1,245     $        142
                                                       ==============    =============    ==============     ============

Weighted average common shares outstanding:
           Basic                                            1,576,818        1,379,545         1,576,818          969,500
                                                       ==============    =============    ==============     ============

           Diluted                                          1,862,578        1,548,595         1,821,361        1,092,108
                                                       ==============    =============    ==============     ============

Earnings per share:
           Basic                                       $        0.30     $       0.09    $         0.79     $       0.15
                                                       ==============    =============    ==============     ============

           Diluted                                     $        0.26     $       0.08    $         0.68     $       0.13
                                                       ==============    =============    ==============    =============

</TABLE>


The accompanying notes are an integral part of the financial statements.





                                       4
<PAGE>   5





                     BINGHAM FINANCIAL SERVICES CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                FOR THE SIX MONTHS ENDED MARCH 31, 1999 AND 1998
                                   ----------


<TABLE>
<CAPTION>



                                                                                         SIX MONTHS ENDED
                                                                                             MARCH 31,
                                                                                    1999                    1998      
                                                                            ----------------------------------------
                                                                                          (In thousands)
Cash flows from operating activities:
<S>                                                                          <C>                      <C>          
    Net income                                                               $         1,245          $         142
    Adjustments to reconcile net income to net
          cash used for operating activities:
       Unrealized gain on loans held for sale, net                                    (2,400)                    --
       Provision for credit losses                                                       160                     52
       Depreciation and amortization                                                     461                     90
       Originations of loans held for sale                                           (58,656)               (10,661)
       Principal collections on loans held for sale                                    1,411                    703
       Proceeds from sale of loans held for sale                                      11,211                     --
       Gain on sale of loans                                                            (563)                    --
       Increase in other assets                                                       (3,583)                (2,911)
       Increase in other liabilities                                                   2,683                  1,404
                                                                            ----------------       ----------------

               Net cash used for operating activities                                (48,031)               (11,181)
                                                                            ----------------       ----------------

Cash flows from investing activities:
    Capital expenditures                                                                (254)                    --
                                                                            ----------------       ----------------
               Net cash used in investing activities                                    (254)                    --
                                                                            ----------------       ----------------

Cash flows from financing activities:
    Issuance of common stock                                                              --                 13,618
    Proceeds from issuance of subordinated debt,
          and related warrants                                                            --                  4,000
    Advances under repurchase agreements                                              46,092                     --
    Repayment of advances under repurchase agreements                                 (8,316)                    --
    Proceeds from notes payable                                                       43,683                  3,541
    Repayment of notes payable                                                       (35,153)                (9,748)
                                                                            ----------------       ----------------

               Net cash provided by financing activities                              46,306                 11,411
                                                                            ----------------       ----------------

Net change in cash and cash equivalents                                               (1,979)                   231

Cash and cash equivalents, beginning of period                                         1,979                     --
                                                                            ----------------       ----------------

Cash and cash equivalents, end of period                                    $             --       $            231
                                                                            ================       ================

</TABLE>




The accompanying notes are an integral part of the financial statements.



                                       5
<PAGE>   6




                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   ----------



1. BASIS OF PRESENTATION:

   The unaudited consolidated financial statements reflect all adjustments,
   consisting only of normal recurring items, which are necessary to present
   fairly Bingham Financial Services Corporation's ("the Company") financial
   condition and results of operations on a basis consistent with that of the
   Company's prior audited consolidated financial statements. Pursuant to rules
   and regulations of the Securities and Exchange Commission applicable to
   quarterly reports on Form 10-Q, certain information and disclosures normally
   included in financial statements prepared in accordance with generally
   accepted accounting principles ("GAAP") have been condensed or omitted. These
   unaudited consolidated financial statements should be read in conjunctions
   with the audited Consolidated Financial Statements and notes thereto included
   in the Company's Annual Report on Form 10-K for the fiscal year ended
   September 30, 1998. Results for interim periods are not necessarily
   indicative of the results that may be expected for a full year.


2. EARNINGS PER SHARE:

   Basic earnings per share is calculated by dividing net income by the average
   number of shares outstanding during the applicable period.

   The Company has issued warrants, stock options and restricted stock awards
   which are considered to be potentially dilutive to common stock. Diluted
   earnings per share is calculated by dividing net income by the average number
   of shares outstanding during the applicable period adjusted for these
   potentially dilutive warrants, options and stock awards.

   The following table sets forth the computation of per share earnings and
   illustrates the dilutive effect of warrants, options and stock awards
   outstanding:

<TABLE>
<CAPTION>

                                                                  Three months ended March 31,
                                              -----------------------------------------------------------------
                                                            1999                               1998
                                              -----------------------------------------------------------------
                                                            (In thousands, except earnings per share)
                                                                  Earnings                          Earnings
                                                   Shares         per share             Shares      per share
                                              -----------------------------------------------------------------
<S>                                                 <C>           <C>                   <C>         <C>        
                Basic EPS                           1,577         $  0.30               1,380       $   0.09   
                Net dilutive effect of:
                    Options and awards                 44           (0.01)                 21              -   
                    Warrants                          243           (0.03)                148          (0.01)  
                                              -----------------------------------------------------------------
                Diluted EPS                         1,864        $   0.26               1,549       $   0.08   
                                              =================================================================


</TABLE>


                                       6


<PAGE>   7



                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   ----------

<TABLE>
<CAPTION>


                                                                  Six months ended March 31,
                                              ------------------------------------------------------------------
                                                         1999                                 1998
                                              ------------------------------------------------------------------
                                                           (In thousands, except earnings per share)
                                                                  Earnings                          Earnings
                                                   Shares         per share             Shares      per share
                                              ------------------------------------------------------------------
<S>                                                 <C>           <C>                    <C>        <C>         
                Basic                               1,577         $   0.79               970        $    0.15   
                Net dilutive effect of:
                    Options and awards                 34            (0.02)               15                -   
                    Warrants                          210            (0.09)              107            (0.02)  
                                              ------------------------------------------------------------------
                Diluted EPS                         1,821         $   0.68             1,092        $    0.13   
                                              ==================================================================
</TABLE>


3. ALLOWANCE FOR LOAN LOSSES:

   The allowance for possible losses on loans is maintained at a level believed
   adequate by management to absorb potential losses from impaired loans as well
   as the remainder of the loan portfolio. The allowance for loan losses is
   based upon periodic analysis of the portfolio, economic conditions and
   trends, historical credit loss experience, borrowers' ability to repay and
   collateral values.


   Changes in allowance for loan losses are summarized as follows:

<TABLE>
<CAPTION>

                                          Three months ended March 31,             Six months ended March 31,
                                              1999            1998                   1999              1998           
                                          ----------------------------             --------------------------
                                                                     (In thousands)
<S>                                        <C>              <C>                     <C>             <C>    
   Balance at beginning of period          $   248          $     79                $   185         $    58
   Provision for loan losses                    63                30                    160              51
   Net losses                                  (27)                -                    (61)              - 
                                           -------------------------                -----------------------
                 
        Balance at end of period           $   284          $    109                $   284         $   109     
                                           =========================                =======================
</TABLE>

4. DEBT:

   At the time of its initial public offering in November 1997 the Company
   entered into a subordinated debt facility with Sun Communities ("Sun"). The
   facility consisted of a $4.0 million term loan and a five-year revolving line
   of credit for up to $6.0 million. In accordance with the subordinated debt
   loan agreement the Company has issued detachable warrants to Sun covering
   400,000 shares of common stock at a price of $10 per warrant share. The
   detachable warrants have a term of seven years and may be exercised at any 
   time after the fourth anniversary of issuance. In March 1998 Sun provided a
   line of credit of up to $12.0 million payable upon demand and in March 1999
   they provided an additional line of credit of up to $10.0 million also
   payable upon demand.



                                       7


<PAGE>   8


                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   ----------

   In March 1998 the Company's commercial mortgage subsidiary entered into a
   one-year master repurchase agreement with a lender to finance up to $150
   million of fixed rate commercial loans collateralized by real estate. In
   September 1998 that agreement was amended and restated to include
   manufactured home and floor plan loans. The borrowing limit was also
   increased to $250 million. The loans are financed at 85- 92% of the then 
   current face value, depending on the asset class and certain concentration
   constraints. The repurchase transactions are for 30 days and may be rolled
   over for up to nine months. In March 1999 the Company amended the master
   repurchase agreement reducing the borrowing limit to $100 million. This will
   allow the Company to reduce its overall committed facility costs and
   accommodates the Company's strategy of reducing the holding time of the loan
   portfolio. The borrowing limit can be increased with the consent of both
   parties should the need arise.

   At March 31, 1999 and September 30, 1998 debt outstanding was as follows:

<TABLE>
<CAPTION>

                                                                                                   
                                                                     March 31                September 30
                                                                     ------------------------------------
                                                                       1999                     1998
           ----------------------------------------------------------------------------------------------
                                                                              (In thousands)
<S>                                                                  <C>                       <C>     
            Loans sold under agreements to repurchase...........     $ 94,668                  $ 56,900
            Revolving line of credit............................       27,404                    17,800
            Term loan, net of discount..........................        3,528                     3,500
                                                                     --------                  --------
                                                                     $125,600                  $ 78,200
                                                                     ========                  ========
</TABLE>


5. ACQUISITIONS:

   In March 1998 the Company acquired 100% of the outstanding stock of
   Bloomfield Acceptance Company, L.L.C. ("Bloomfield") and Bloomfield Servicing
   Company, L.L.C. ("Bloomfield Servicing") for 281,818 shares of the Company's
   common stock valued at approximately $2.1 million. Bloomfield is engaged in
   the business of the origination of mortgages and real estate lending. Loans
   originated by Bloomfield primarily consist of fixed rate loans secured by
   mortgages on commercial property. Bloomfield Servicing was formed to service
   the loans originated by Bloomfield and other investors.

   In addition to the shares of common stock issued to the former owners of
   Bloomfield and Bloomfield Servicing, additional consideration of up to
   $500,000, in the form of the Company's common stock, will be paid to the
   owners subject to the performance of the merged entities over the two year
   period following the date of merger.

   Each of the acquisitions was accounted for as a purchase and the aggregate
   purchase price was $2.1 million. The purchase price was allocated to the
   assets acquired and liabilities assumed based on the related fair values at
   the date of acquisition. The excess of the aggregate purchase price over the
   fair values of the assets acquired and liabilities assumed has been allocated
   to goodwill and is being amortized on a straight-line method over 25 years.


                                     8
<PAGE>   9


                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   ----------

   The following table summarizes pro forma unaudited results of operations as
   if each of the acquisitions completed had occurred at the beginning of fiscal
   1998.


<TABLE>
<CAPTION>

                                                           Three months ended       Six months ended
                                                              March 31, 1998         March 31,1998      
                                                           ------------------------------------------
                                                            (In thousands, except earnings per share)
<S>                                                           <C>                       <C>       
   Revenues                                                   $      949                $    2,815
   Income (loss) before income taxes                                 (66)                      384
   Net income (loss)                                                 (43)                      253
   Basic and diluted earnings (loss) per share                $    (0.03)               $     0.32

</TABLE>

6. FINANCIAL INSTRUMENTS:

The Company hedges a portion of its commercial mortgage loan portfolio as part
of its interest rate risk management strategy and as a condition of the related
repurchase agreement, which finances the portfolio. The Company hedges the
interest rate risk on its portfolio by entering into forward sales of U.S.
Treasury Securities. The Company classifies these forward sales as hedges on
specific loan receivables. Any gross unrealized gains or losses on these forward
sales are an adjustment to the basis of the mortgage loan portfolio and are used
in the lower of cost or market valuation to establish a valuation allowance.

   The following table identifies the gross unrealized gains/losses of the
   forward sales as of March 31, 1999 and September 30, 1998:


<TABLE>
<CAPTION>

                                       March 31, 1999     September 30, 1998
                                      Gross Unrealized      Gross Unrealized
   Security Description                     Gains                Losses
   --------------------------------------------------------------------------
                                               (Dollars in thousands)
<S>                                      <C>                  <C>               
   U.S. Treasury 6.125% - 8/07           $    47              $  (2,019)        
   U.S. Treasury 6.375% - 8/27                85                   (294)        
   U.S. Treasury 5.500% - 2/08               388                 (1,649)        
   U.S. Treasury 5.625% - 5/08                65                   (321)        
   U.S. Treasury 4.75% - 11/08                25                      -         
                                      =======================================
                                         $   610              $  (4,283)        
                                      =======================================

</TABLE>


                                       9

<PAGE>   10


                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------


    ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS

    The following discussion and analysis provides information on material
    factors affecting the Company's results of operations and significant
    balance sheet changes. This discussion should be read in conjunction with
    the consolidated financial statements and notes included herein and the 1998
    Form 10-K of Bingham Financial. Results of operations for the three-month
    and six-month periods presented are not necessarily indicative of results,
    which may be expected for the entire year.

    RESULTS OF OPERATIONS

    The Company reported net income of $480,000 for the quarter ended March 31,
    1999 compared to net income of $120,000 in the quarter ended March 31, 1998.
    The increase in net income is due primarily to a significant increase in
    interest income of $2.2 million, gain on sale of loans of $274,000 and a
    recovery of $1.2 million related to the valuation of the loan portfolio.
    These increases in income were partially offset by increases in interest
    expense of $1.7 million and operating expenses of $1.3 million.

    Net income for the six months ended March 31, 1999 was $1.2 million versus
    net income of $142,000 for the six months ended March 31, 1998. The primary
    reasons for the increased income were the increase in interest income of
    $4.0 million, a recovery of $2.4 million related to the valuation of the
    loan portfolio and an increase in gain on loan sales of $563,000. Offsetting
    the increases in income were increases in interest expense of $3.3 million
    and operating expenses of $2.4 million.

    Interest income earned on the manufactured home and commercial mortgage loan
    portfolios increased to $2.6 million for the quarter ended March 31, 1999
    from $423,000 for the comparable quarter in 1998. The increase was due to
    increased origination volume in the manufactured home loan portfolio and the
    addition of a commercial mortgage loan portfolio through the acquisition of
    Bloomfield Acceptance Company in March 1998. Bloomfield Acceptance is an
    originator of primarily fixed rate loans collateralized by mortgages on
    commercial real estate.

    Similarly, interest income for the six months ended March 31, 1999 increased
    to $4.7 million as compared to $739,000 for the six months ended March 31,
    1998. The same factors that accounted for the increase in the second quarter
    were also present in the year-to-date increases. The commercial mortgage
    loan portfolio was also earning interest for the entire six-month period in
    1999 whereas there were no commercial mortgage loans in the Company's
    portfolio at March 31, 1998.

    Interest expense increased to $1.8 million in the second quarter of fiscal
    1999 as compared to $135,000 in the second quarter of fiscal 1998. The large
    increase is due to the substantial increase in borrowings to fund
    originations of manufactured home loans and commercial mortgage loans held
    for sale net of a decrease in the Company's average borrowing rate. As with
    the interest income increase the borrowings to fund the commercial mortgage
    loan portfolio were present for the entire three month period in 1999 versus
    no borrowings on that portfolio in 1998.

    Interest expense for the six-month period ended March 31, 1999 increased to
    $3.5 million from $286,000 for the comparable six months in the previous
    year. As with the quarterly period an increase in total borrowings net of a
    decrease in the average borrowing rate accounted for the differences in the
    comparable periods.


    Net interest margin which is net interest income divided by the average 
    outstanding balance of


                                       10
<PAGE>   11


                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------



interest earning assets has decreased to 2.55% and 2.21% for the quarter and six
months ended March 31, 1999 as compared to 7.03% and 6.45% for the comparable
quarter and six months ended March 31, 1998. This is primarily due to the
addition of the commercial mortgage loans which represent approximately 77% of
the loan portfolio and have a lower weighted average interest rate.

The following table sets forth the extent to which the Company's net interest
income has been affected by changes in average interest rates and average
balances of interest-earning assets and interest bearing liabilities.

<TABLE>
<CAPTION>

                                                 Three months ended March 31, 1999 and 1998
                                    ----------------------------------------------------------------------------------------
                                     Average Balance      Average Rate        Interest        Increase   Variance due to:    
                                    -------------------------------------------------------                              
                                      1999     1998      1999     1998     1999      1998    (Decrease)   Volume    Rate
                                    ----------------------------------------------------------------------------------------
    Interest-earning assets:
<S>                                 <C>       <C>        <C>     <C>      <C>        <C>      <C>        <C>      <C>        
       Loans                        $122,872  $ 16,329   8.52%   10.36%   $ 2,617    $ 423    $ 2,194    $ 2,759  $ (565)    
       Cash and equivalents            4,367         -   3.32%        -        36        -         36         36       -     
                                    --------------------------------------------------------------------------------------   
                                     127,239    16,329   8.34%   10.36%     2,653      423      2,230      2,795    (565)
                                    --------------------------------------------------------------------------------------

    Interest-bearing Liabilities
       Term loan                       4,000     4,000  11.68%   11.68%       117      117          -          -       -  

                                                               
       Revolving line of credit       21,014     1,333   6.54%    8.36%       344       19        325        420     (95)   
       Loans sold under repurchase    92,878         -   5.95%       -      1,381        -      1,381      1,381       -    
                                    --------------------------------------------------------------------------------------  
                                     117,892     5,333   6.25%   10.20%     1,842      136      1,706      1,801     (95)
                                    --------------------------------------------------------------------------------------

    Interest rate spread                                 2.09%     .16%
    Excess average earning assets   $  9,347  $ 10,996   8.34%   10.36%
                                    ====================================
    Net interest margin                                  2.55%    7.03%   $   811    $ 287    $   524    $   994  $ (470)
                                                        ==================================================================
</TABLE>




<TABLE>
<CAPTION>

                                                 Six months ended March 31, 1999 and 1998
                                    ----------------------------------------------------------------------------------------
                                     Average Balance     Average Rate        Interest        Increase    Variance due to:      
                                    -------------------------------------------------------
                                      1999     1998     1999     1998     1999      1998    (Decrease)    Volume     Rate
                                    ----------------------------------------------------------------------------------------
    Interest-earning assets:
<S>                                 <C>      <C>        <C>     <C>      <C>        <C>        <C>        <C>       <C>     
       Loans                        $110,211 $ 14,012   8.59%   10.55%   $ 4,735    $ 739      $ 3,996    $ 5,075   $(1,079)
                                                                                                    
       Cash and equivalents            4,349       -    3.42%       -         73        -           73         73         -    
                                    ----------------------------------------------------------------------------------------
                                                                                                 
                                     114,560   14,012   8.39%   10.55%     4,808      739        4,069      5,148    (1,079)
                                    ----------------------------------------------------------------------------------------

    Interest-bearing Liabilities
       Term loan                       4,000    3,000  11.68%   11.04%       234      166           68         55        13     
                                                               
       Revolving line of credit       20,638    3,313   7.32%    8.11%       756      121          635      1,553      (918)    
                                                              
       Loans sold under repurchase    80,838        -   6.31%       -      2,551        -        2,551      2,551         -     
                                    ----------------------------------------------------------------------------------------   
                                     105,476    6,313   6.71%    9.09%     3,541      287        3,254      4,159      (905)
                                    ----------------------------------------------------------------------------------------

    Interest rate spread                                1.68%    1.46%
    Excess average earning assets   $  9,084 $  7,699   8.39%   10.55%
                                    ====================================
    Net interest margin                                 2.21%    6.45%   $ 1,267    $ 452      $  815     $   989   $  (174)
                                                       =====================================================================
</TABLE>

                                       11

<PAGE>   12

                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------


    Mortgage origination and servicing fees are related to the commercial
    mortgage loans placed with outside investors and with the servicing retained
    by Bloomfield servicing. Placement fees for the quarter ended March 31, 1999
    totaled approximately $128,000 on commercial mortgage loans placed with
    investors of $12.1 million compared to placement fees of $138,000 on loans
    placed with investors of $19.7 million for the quarter ended March 31, 1998.
    For the six months ended loan placement fees were $407,000 on loans placed
    with investors of $36.6 million. Loans placed with investors and the
    corresponding loan placement fees for the six month period ended March 31,
    1998 are the same as the quarter ended March 31, 1998 as Bloomfield
    Acceptance was acquired in March 1998.

    Servicing fees collected by Bloomfield Servicing on the current retained
    servicing portfolio were $73,000 for the quarter versus $29,000 for the
    comparable quarter in 1998. For the six months ended March 31, 1999
    servicing fees collected were $146,000 as compared to $29,000 for the same
    six-month period in the previous year. Servicing fees for the six month
    period ended March 31, 1998 are the same as the quarter ended March 31, 1998
    as Bloomfield Servicing was acquired in March 1998.

    A recovery of $1.15 million related to the valuation of the loan portfolio
    and related hedge positions was recognized for the quarter ended March 31,
    1999 and $2.4 million for the six month period. The hedge positions are used
    by management in an attempt to mitigate the risk of loss arising from
    adverse changes in market prices and interest rates associated with the
    fixed rate loans in the commercial mortgage loan portfolio. There are no
    comparable gains or losses on valuations of the loan portfolio and hedge
    positions for the quarter ended March 31, 1998.

    Gain on sale of loans represents the difference between the proceeds from
    sale and the allocated carrying cost of the loans sold. The gain is also net
    of required reserves for the potential refund of any premium paid for loans
    that prepay in the first twelve months after the date of the sale. The
    Company sold approximately $5.4 million in manufactured home loans in one
    bulk sale and recorded a gain on sale of loans of $274,000 for the three
    months ended March 31, 1999. There were no loan sales in the comparable
    quarter of the previous year.

    For the six months ended March 31, 1999 the Company has sold approximately
    $10.4 million of manufactured home loans and recognized gains on loan sales
    of $563,000. There were no loan sales in the comparable six-month period of
    1998.

    A provision for credit losses is charged to income in amounts sufficient to
    maintain an allowance level estimated to cover losses from liquidating
    manufactured home loans. The allowance level is determined based on a formal
    review of the size and quality of the manufactured home loan portfolio in
    conjunction with the current market and prevailing economic conditions.

    The Company recorded a provision for credit losses of $63,000 and $30,000
    for the three-month periods ended March 31, 1999 and 1998 respectively. The
    increase was due to the increase in the size of the manufactured home loan
    portfolio. For the six-month periods ended March 31, 1999 and 1998 provision
    for credit losses was $160,000 and $51,000 respectively.

    General and administrative expenses and other operating expenses have
    increased in recent periods as a result of the expansion of the manufactured
    home lending operations and the acquisition of the Bloomfield Acceptance
    Company and Bloomfield Servicing Company. The largest increase has been in
    personnel costs that were $971,000 and $214,000 for three months ended March
    31, 1999 and 1998 respectively. For the six months ended March 31, 1999 and
    1998 personnel costs have been $1.5 million and $227,000 respectively.


                                       12


<PAGE>   13
 
                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------


    LIQUIDITY AND CAPITAL RESOURCES

    Liquidity represents the ability to meet financial obligations when due. The
    Company expects to meet its short-term liquidity requirements through
    working capital provided by operating activities. The Company expects to
    meet its long term liquidity requirements through a combination of
    additional equity offerings, draws on its revolving lines of credit,
    advances under its master repurchase agreement, whole loan sales and
    possible future periodic securitizations of its loan portfolio.

    Total borrowings increased $47.4 million during the period to $125.6 million
    at March 31, 1999. The increased borrowings were primarily for the funding
    of new loan originations. The increased borrowings are net of approximately
    $11.0 million in proceeds from loan sales used to repay revolving lines of
    credit.

    Loans Receivable

    Net loans receivable increased $49.9 million to $136.0 million at March 31,
    1999. Commercial mortgage loans originated and held for sale were $40.9
    million and manufactured home loan originations were $19.5 million for the
    period. New loan originations were partially offset by sales of $10.4
    million of manufactured home loans.

    The following table sets forth the average loan balance, weighted average
    loan yield and weighted average initial term of the loan portfolio:

<TABLE>
<CAPTION>

                                                                    March 31, 1999               
                                                        -------------------------------------
                                                        Manufactured               Commercial
                                                            Home                     Loans
    -----------------------------------------------------------------------------------------
                                                                               
                                                                (Dollars in Thousands)
<S>                                                     <C>                       <C>       
    Principal balance loans receivable, net             $   31,181                $  104,820
    Number of loans........................                  1,106                        27
    Average loan balance...................             $       28                $    3,882
    Weighted average loan yield............                   10.9%                      7.7%
    Weighted average initial term..........               22 years                10.6 years

</TABLE>

    Delinquency statistics at March 31,1999 for the manufactured home loan
portfolio are as follows:

<TABLE>
<CAPTION>

                                     Number of                              Greater
                                      Loans          31-60       61-90      Than 90         Total
    --------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>         <C>         <C>            <C>                                
    Manufactured home loans             1,106          2.0%        0.3%        4.2%           6.5%                               
    Manufactured home loans
      sold with full recourse             782          1.3%        0.0%        0.4%           1.7%                                
                                ----------------------------------------------------------------------
                                        1,888          1.7%        0.2%        2.6%           4.5%                                
                                ======================================================================


                                  Gross Principal                           Greater
                                      Balance         31-60      61-90      than 90        Total
    --------------------------------------------------------------------------------------------------
                                                           (Dollars in thousands)
    Manufactured home loans           $  31,215        2.0%        0.1%        4.1%          6.2%                                
    Manufactured home loans
      sold with full recourse            19,893        1.6%        0.0%        0.2%          1.8%                                
                                ----------------------------------------------------------------------
                                      $  51,108        1.8%        0.1%        0.2%          2.1%                                
                                ======================================================================

</TABLE>

    There were no delinquent commercial mortgage loans at March 31, 1999.

                                       13

<PAGE>   14

                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------


    Year 2000 Readiness

    Some computers, software, and other equipment include a programming code in
    which calendar year data is abbreviated to only two digits. As a result of
    this design decision, some of these systems could fail to operate or fail to
    produce correct results if "00" is interpreted to mean 1900, rather than
    2000. In 1998 the Company initiated a corporate wide program designed to
    ensure that all critical computer programs function properly in the year
    2000. The Company is also analyzing and working with vendors and other
    external businesses to identify and avoid any year 2000 problems related to
    the software or services they provide.

    The first phase of the Company's year 2000 project is complete. It involved
    an assessment of the internal and external critical systems and hardware
    that could be affected by the year 2000 problem and the current compliant
    status of the system or hardware.

    In phase II of the project the MIS staff developed solutions or implemented
    vendor provided solutions to remedy all year 2000 non-compliant issues
    including non-information technology systems. All internal critical systems
    that required a year 2000 update provided by a vendor have been corrected.
    To date there have been no systems that required complete replacement. All
    non-compliant hardware has been replaced. Any new systems or hardware to be
    acquired are verified to be year 2000 compliant. Phase II also includes
    testing of updated systems and hardware for compliance. This portion of the
    project is on going and was originally scheduled to be completed by the
    second quarter of 1999. Some testing needs to be completed on the Company's
    servicing and origination systems. At this time the Company has received
    very specific statements of compliance on both systems.

    The Company continues to obtain statements of compliance from its external
    vendors and business relationships to verify that they are year 2000
    compliant. This part of phase II was also expected to be completed by the
    second quarter of 1999. While the Company has received statements of
    compliance from the majority of its outside vendors it has not received all
    statements requested. Bingham will continue to obtain the necessary
    statements of compliance from vendors and outside business relationships
    that it has defined as critical.

    Year 2000 compliance costs to date have totaled approximately $25,000. The
    majority of the cost is estimated MIS personnel expense required for
    identifying, testing and where necessary updating critical systems. The cost
    also includes the replacement of some non-compliant hardware. The Company
    currently estimates the total costs of the year 2000 project will not be
    material to its financial position or results of operations.

    The impact of year 2000 issues depends not only on the corrective actions
    the Company takes, but also on the way these issues are handled by
    businesses, governmental agencies and other third parties that provide data,
    services and utilities to us. While the Company is in the process of testing
    and correcting identified year 2000 problems, these procedures are limited
    to matters over which we are reasonably able to exercise control. The
    Company's ability to achieve year 2000 readiness and the level of 
    incremental costs associated with it could be adversely impacted by, among
    other things, the availability and cost of programming and testing
    resources, vendor's ability to modify proprietary software and unanticipated
    problems identified in the on going compliance review.


                                       14


<PAGE>   15

                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------

    Forward-looking Statements


    Certain statements contained in this Quarterly Report on Form 10-Q,
    including statements relating to the Company's strategic objectives and
    future performance, which are not historical fact, may be deemed to be 
    forward-looking statements under the federal securities laws. There are many
    important factors that could cause the Company's actual results to differ
    materially from those indicated. Such factors include, but are not limited
    to general economic conditions; interest rate risk; demand for the Company's
    services; the impact of certain covenants in loan agreements of the Company;
    the degree to which the Company is leveraged; the continued availability of
    the Company's credit facilities; the risk of margin calls on the Company's
    credit facilities and hedge positions; the performance of the Company's
    subsidiaries; the Company's year 2000 issues; and other risks identified in
    the Company's Securities and Exchange Commission filings. In addition, it
    should be noted that past financial and operational performance of the
    Company is not necessarily indicative of future financial and operational
    performance.


                                       15

<PAGE>   16

                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------

    ITEM 3:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    The following table shows the Company's expected maturity dates of its
    assets and liabilities. For each maturity category in the table the
    difference between interest-earning assets and interest-bearing liabilities
    reflects an imbalance between repricing opportunities for the two sides of
    the balance sheet. The consequences of a positive cumulative gap at the end
    of one year suggests that, if interest rates were to rise, liability costs
    would increase more quickly than asset yields, placing negative pressure on
    earnings.


<TABLE>
<CAPTION>


                                                                            Maturity
                                                 --------------------------------------------------------
                                                 0 to 3     4 to 12     1 to 5      Over 5
                                                  Months     Months     Years       Years        Total
    -----------------------------------------------------------------------------------------------------
                                                                     (In thousands)

<S>                                             <C>       <C>         <C>         <C>          <C>             
    Cash and equivalents.....................   $    -    $      -   $       -     $      -     $      -        
    Restricted cash..........................    1,004       3,012           -            -        4,016      
    Loans receivable.........................    1,048       4,664      23,203      107,050      135,965      
    Other assets.............................      934       1,660         587        1,580        4,761      
                                                =========================================================
            TOTAL ASSETS                        $2,986    $  9,336   $  23,790     $108,630     $144,742      
                                                =========================================================
                                                
    Advances by mortgagors...................   $1,002    $  3,005   $       -     $      -     $  4,007      
    Accounts payable and accrued expenses....      245         105          54         (265)         139      
    Advances under repurchase agreement......      241      94,427                                94,668      
    Subordinated debt........................      (19)        (57)      3,604            -        3,528      
    Notes Payable............................        -           -       6,000       21,404       27,404      
    Other liabilities........................        -           -           -          252          252      
                                                ---------------------------------------------------------    
            TOTAL LIABILITIES                    1,469      97,480       9,658       21,391      129,998   
                                                ---------------------------------------------------------
                                                   
    Common stock.............................        -           -           -       13,608       13,608      
    Paid-in-capital..........................        -           -           -          576          576      
    Retained earnings........................        -           -           -          560          560      
                                               ==========================================================    
            TOTAL LIABILITIES AND EQUITY        $1,469    $ 97,480   $   9,658     $ 36,135     $144,742      
                                               ==========================================================    
                                                                                                             
    Reprice difference.......................   $1,517    $(88,144)  $  14,132     $ 72,495                   
    Cumulative gap...........................   $1,517    $(86,627)  $ (72,495)    $      -                   
    Percent of total assets..................     1.05%     (59.85%)    (50.09%)          -                   

</TABLE>
                                                          
                                                   
    Management believes the negative effect of a rise in interest rates is
    reduced by the anticipated short duration of the Company's loan receivables.
    Management intends that the loan receivables will be securitized or sold as
    part of a whole loan sale prior to the end of 1999. Proceeds from the
    securitization or whole loan sales would be used to pay down the
    corresponding debt. If the company were unable to securitize or sell the
    loans it would be necessary to renegotiate the master repurchase agreement
    to extend the maturity date of the advances under repurchase. The
    instruments held by the Company are held for purposes other than trading.

    The Company also manages interest rate risk through the use of forward sales
    of U.S. Treasury securities to hedge the fixed rate loans in the commercial
    loan portfolio. In a forward sale the Company has agreed to sell a Treasury
    security at a future date with a predetermined price. If interest


                                       16

<PAGE>   17


                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------


    rates on Treasury Securities drop, the price to the Company to purchase the
    security in order to meet its settlement obligation will have risen, and
    thus the Company will have suffered an unrealized loss on the hedge
    transaction. Conversely, if interest rates rise, the price to the Company to
    purchase Treasury Securities will have fallen and there will be an
    unrealized gain. The unrealized gain or loss on the hedge transaction should
    be offset by the decrease or increase in value of the underlying hedged
    loans since they are fixed rate loans that have an annual interest rate
    equal to a spread over U.S. Treasuries. The Company uses these instruments
    in an attempt to reduce risk by essentially creating offsetting market
    exposures.

    The following table shows the Company's financial instruments and derivative
    instruments that are sensitive to changes in interest rates, categorized by
    expected maturity and the instruments' fair values at March 31, 1999.

<TABLE>
<CAPTION>

                                                                       Contractual Maturity
                                            ----------------------------------------------------------------------------------------
                                                                                                                           Total
                                               1999         2000        2001         2002         2003     Thereafter   Fair Value
                                            ----------------------------------------------------------------------------------------
    Interest sensitive assets:
<S>                                            <C>         <C>         <C>            <C>         <C>         <C>         <C>      
       Loans receivable                        $  1,339    $   4,651    $ 16,477      $  1,182     $ 1,301    $ 111,534   $ 136,484
       Average interest rate                       8.33%        8.50%       8.70%         8.33%       8.33%        8.33%       8.33%

       Interest bearing deposits                  4,016            -           -             -           -            -       4,016 
       Average interest rates                      3.42%           -           -             -           -            -        3.42%

       Forward sales of U.S. Treasury                                                                                        
         securities                                   -            -           -             -           -       58,857      58,857
       Average interest rate                          -            -           -             -           -         5.38        5.38%
                                                             
                                            ========================================================================================
    Total interest sensitive assets            $  5.355    $   4,651    $ 16,477      $  1,182     $ 1,301    $ 170,391   $ 199,357
                                            ========================================================================================

    Interest sensitive liabilities:
      Borrowings:
       Advances under repurchase agreements    $ 79,875     $ 14,793    $      -      $      -     $     -    $       -   $  94,668
       Average interest rate                       6.31%        6.31%          -             -           -            -        6.31%
                                                                                
       Subordinated debt, net of discount             -            -           -             -           -        3,528       3,528 
       Average interest rate                          -            -           -             -           -        11.68       11.68%
                                                                                                                                    
       Note payable                                   -            -           -             -       6,000       21,404      27,404 
       Average interest rate                          -            -           -             -        9.25%        6.46%       7.10%
                                            ========================================================================================
    Total interest sensitive liabilities       $ 79,875    $  14,793    $      -      $      -     $ 6,000    $  24,932   $ 125,600
                                            ========================================================================================
</TABLE>

                                       17

<PAGE>   18




                     BINGHAM FINANCIAL SERVICES CORPORATION
                                   ----------



PART II


ITEM 1.        LEGAL PROCEEDINGS

               The Company is subject to various claims and legal proceedings
               arising out of the normal course of business, none of which in
               the opinion of management are expected to have a material effect
               on the Company's financial position.

ITEM 6.(A)  -  EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K

                EXHIBIT NO.                       DESCRIPTION
                -----------                       -----------

                 27                        Financial Data Schedule


ITEM 6.(B)  -  REPORTS ON FORM 8-K

None.







                                       18
<PAGE>   19


                                   SIGNATURES




Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Dated: May 11, 1999



                               BINGHAM FINANCIAL SERVICES CORPORATION



                               BY: /s/  Jeffrey P. Jorissen    
                                   ---------------------------------------------
                                        Jeffrey P. Jorissen
                                        President and Chief Financial Officer





                                       19
<PAGE>   20






                                  EXHIBIT INDEX




                                                             PAGE
                    FILED                                   NUMBER
EXHIBIT NO.         DESCRIPTION                            HEREWITH       HEREIN
-----------         -----------                            --------       ------

    27              Financial Data Schedule                    X             X
















                                       20