<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 DECEMBER 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 Offices)               (Zip Code)


       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:

      2,542,758 shares of Common Stock, no par value as of January 31, 2000


                                  Page 1 of 21
<PAGE>   2





                     BINGHAM FINANCIAL SERVICES CORPORATION
                                      INDEX

                                   -----------


<TABLE>
<CAPTION>

                                                                                      PAGES
                                                                                      -----
<S>                                                                                   <C>
PART I

Item 1.     Financial Statements:

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

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

            Consolidated Statements of Cash Flows for the Three Months Ended
                December 31, 1999 and 1998                                                5

            Notes to Consolidated Financial Statements                                 6-10


Item 2.     Management's Discussion and Analysis of Financial
                Condition and Results of Operations                                   11-15

Item 3.     Quantitative and Qualitative Disclosures About Market Risk                16-18


PART II

            Item 1 Legal Proceedings                                                     19

            Item 6 (a) Exhibits Required by Item 601 of Regulation S-K                   19

            Signatures                                                                   20

            Exhibit Index                                                                21
</TABLE>


                                       2
<PAGE>   3

                     BINGHAM FINANCIAL SERVICES CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                    DECEMBER 31, 1999 AND SEPTEMBER 30, 1999

                                   ----------

<TABLE>
<CAPTION>
                                                                        DECEMBER 31,         SEPTEMBER 30,
                             ASSETS                                        1999                  1999
                                                                        (UNAUDITED)
                                                                     -------------------------------------
                                                                      (In thousands except, for shares)
<S>                                                                    <C>                     <C>
     Cash and equivalents                                              $    --                 $     730
     Restricted cash
                                                                           4,275                   3,901
     Loans receivable
                                                                         141,453                 117,887
     Servicing rights
                                                                           9,736                   2,120
     Property and equipment, net
                                                                           3,029                   1,100
     Other assets
                                                                          10,006                   6,960
                                                                       ---------               ---------
            Total assets                                               $ 168,499               $ 132,698
                                                                       =========               =========


              LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
     Advances by mortgagors                                            $   4,228               $   3,882
     Accounts payable and accrued expenses
                                                                          11,810                   1,131
     Deferred revenue
                                                                           1,398                     343
     Advances under repurchase agreements
                                                                          80,469                  69,026
     Subordinated debt, net of debt discount
            of $414 and $433, respectively
                                                                           3,586                   3,567
     Note payable
                                                                          40,747                  28,477
                                                                       ---------               ---------
           Total liabilities
                                                                         142,238                 106,426
                                                                       ---------               ---------

     Minority Interest
                                                                             122                     204
                                                                       ---------               ---------

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;  2,539,716 and 2,528,473 shares
     issued and outstanding at December 31, 1999 and
          September 30, 1999, respectively
                                                                          26,799                  26,696
     Paid-in capital
                                                                             641                     619
     Accumulated other comprehensive loss
                                                                            (106)                   (304)
     Unearned stock compensation
                                                                          (1,102)                 (1,035)
     Retained earnings (deficit)
                                                                             (93)                     92
                                                                       ---------               ---------
           Total stockholders equity
                                                                          26,139                  26,068
                                                                       ---------               ---------
           Total liabilities and stockholders' equity                  $ 168,499               $ 132,698
                                                                       =========               =========


</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 ENDED DECEMBER 31, 1999 AND 1998

                                   ----------

<TABLE>
<CAPTION>
                                                                                       THREE MONTHS ENDED
                                                                                          DECEMBER 31,
                                                                                  1999                     1998
                                                                             -------------------------------------
                                                                               (In thousands, except for shares)
<S>                                                                          <C>                       <C>
REVENUES
     Interest income on loans                                                      4,069                     2,118
     Mortgage origination and servicing fees                                       1,319                       352
     Gain on sale of loans                                                         1,603                     1,539
     Other income                                                                     75                        47
                                                                             -----------               -----------
           Total revenues                                                          7,066                     4,056
                                                                             -----------               -----------

COSTS AND EXPENSES
     Interest expense                                                              2,832                     1,699
     Provision for credit losses                                                     362                        97
     General and administrative                                                    2,352                       563
     Other operating expenses                                                        944                       624
                                                                             -----------               -----------
           Total costs and expenses                                                6,490                     2,983
                                                                             -----------               -----------
     Income (loss) before income tax expense                                         576                     1,073

          Federal income tax expense                                                 198                       309
                                                                             -----------               -----------
     Income (loss) before cumulative effect of
       change in accounting principle                                                378                       764
     Cumulative effect of change in accounting
       principle, net of tax                                                        (563)                       --
                                                                             -----------               -----------
     Net Income (Loss)                                                              (185)                      764
                                                                             ===========               ===========

     Weighted average common shares outstanding,
           Basic                                                               2,539,716                 1,576,818
                                                                             ===========               ===========
           Diluted                                                             2,539,716                 1,917,915
                                                                             ===========               ===========
     Earnings (loss) per share before cumulative
           effect of change in accounting principle:
           Basic                                                             $      0.15               $      0.48
                                                                             ===========               ===========
           Diluted                                                           $      0.15               $      0.40
                                                                             ===========               ===========
     Cumulative effect of change in accounting
           Principle
           Basic                                                             $     (0.22)              $        --
                                                                             ===========               ===========
           Diluted                                                           $     (0.22)              $        --
                                                                             ===========               ===========
        Net income
           Basic                                                             $     (0.07)              $      0.48
                                                                             ===========               ===========
           Diluted                                                           $     (0.07)              $      0.40
                                                                             ===========               ===========

</TABLE>


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



                                        4
<PAGE>   5






                     BINGHAM FINANCIAL SERVICES CORPORATION
                      CONSOLIDATED STATEMENTS OF CASHFLOWS
                                   (UNAUDITED)
              FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998

                                   ----------

<TABLE>
<CAPTION>

                                                                                 THREE MONTHS ENDED
                                                                                    DECEMBER 31,
                                                                             1999                 1998
                                                                           ------------------------------
<S>                                                                        <C>                  <C>
Cash flows from operating activities:
        Net cash provided (used)  by operating activities                   (26,965)              (28,563)
                                                                           --------              --------

Cash flows from investing activities:
        Purchase of Dynex Financial, Inc.                                    (4,001)                   --
       Capital expenditures                                                     (99)                 (167)
                                                                           --------              --------
                   Net cash used in investing activities                     (4,100)                 (167)
                                                                           --------              --------

Cash flows from financing activities:
       Advances under repurchase agreements                                 102,876                36,395
       Repayment of advances under repurchase agreements                    (91,434)               (1,045)
       Advances on note payable                                             104,634                15,715
       Repayment of note payable                                            (85,741)              (23,285)
                                                                           --------              --------
                   Net cash provided by financing activities                 30,335                27,780
                                                                           --------              --------

Net change in cash and cash equivalents                                        (730)                 (950)
Cash and cash equivalents, beginning of period                                  730                 1,979
                                                                           --------              --------
Cash and cash equivalents, end of period                                         --                 1,029
                                                                           ========              ========

</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 conjunction
   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, 1999. 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 are computed by dividing net income available to
   common shareholders by the weighted average common shares outstanding. At
   December 31, 1999 there were potential shares of common stock from stock
   options and warrants outstanding. Had these stock options and warrants been
   exercised they would have had an anti-dilutive effect on the net loss per
   share calculation. The effect of the anti-dilutive shares is not included
   in the earnings per share calculation for the period ended December 31, 1999.

   The following table presents a reconciliation of the numerator (income
   applicable to common shareholders) and denominator (weighted average common
   shares outstanding) for the basic income (loss) per share calculation:


<TABLE>
<CAPTION>
                                                                 Three months ended December 31,
                                              -----------------------------------------------------------------------
                                                           1999                                   1998
                                              -----------------------------------------------------------------------
                                                         (In thousands except earnings (loss) per share
                                                             Earnings (loss)                        Earnings (loss)
                                                  Shares        per share               Shares         per share
                                              -----------------------------------------------------------------------
<S>                                           <C>            <C>                        <C>          <C>
Basic earnings (loss) per share before
   cumulative effect of change in
   accounting principle                           2,540       $    0.15                  1,577        $    0.48

Cumulative effect of change in
    accounting principle                                          (0.22)                    --               --

Net dilutive effect of:

    Options and awards                               --              --                     25            (0.01)
    Warrants                                         --              --                    171            (0.04)
                                              -----------------------------------------------------------------------
Diluted earnings (loss) per share                 2,540       $   (0.07)                 1,773         $   0.43
                                              =======================================================================

</TABLE>



                                       6
<PAGE>   7



                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------

3. OTHER COMPREHENSIVE INCOME
   Statement of Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting
   Comprehensive Income," establishes standards for reporting comprehensive
   income. Other comprehensive income refers to revenues, expenses, gains and
   losses that under generally accepted accounting principles have previously
   been reported as separate components of equity in the Company's consolidated
   financial statements.

<TABLE>
<S>                                                 <C>
   Net loss                                          $  (185,000)
   Other comprehensive income net of tax:
     Unrealized gains on securities:
       Unrealized holding gains during period            198,000
                                                     -----------
   Comprehensive income                              $    13,000
                                                     ===========
</TABLE>


4. 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 December 31,
                                                        1999               1998
                                                    -------------------------------
                                                             (In thousands)
<S>                                                    <C>                <C>
Balance at beginning of period                         $ 258               $  58
Provision for loan losses                                362                  21
Net losses                                              (346)                 --
                                                       -------------------------
     Balance at end of period                          $ 274               $  79
                                                       =========================
</TABLE>

   The Company periodically sells portions of its manufactured home loan
   portfolio with recourse whereby it is required to repurchase loans that meet
   certain delinquency and default criteria. The Company recognizes estimated
   recourse obligations to absorb potential losses on these loans. The balance
   of that recourse obligation was approximately $375,000 at December 31, 1999.

5. DEBT:

   At the time of its initial public offering the Company entered into a
   subordinated loan agreement that currently provides for a subordinated debt
   facility which consists of a $4 million term loan. The Company also has a $10
   million demand line of credit and a $50 million demand line of credit which
   indebtedness


                                       7

<PAGE>   8

                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------

   shall be subordinated to all senior debt of the Company. The $4 million term
   loan has an annual interest rate of 9.75% and the demand lines of credit
   have an annual interest rate equal to the one month "LIBOR" rate plus a
   spread. In accordance with the subordinated loan agreement the Company issued
   detachable warrants covering 400,000 shares of common stock at a price of
   $10.00 per warrant share. The detachable warrants have a term of seven years
   and may be exercised at any time after the fourth anniversary of the
   issuance.

   In March 1998 the Company's commercial mortgage originating subsidiary
   entered into a one-year master repurchase agreement with a lender to finance
   fixed rate commercial loans secured by real estate. In September of 1998 that
   agreement was amended to include financing of manufactured home, floor plan
   and bridge loans and has been periodically renewed. At December 31,1999 the
   Company was renegotiating the maximum financing limits on the facility. The
   annual interest rate on the facility is a variable rate of interest equal to
   "LIBOR" plus a spread, dependent on the advance rate and the asset class. The
   loans are sold at 82- 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.

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


<TABLE>
<CAPTION>
                                                      DECEMBER 31      SEPTEMBER 30,
                                                     --------------------------------
                                                         1999              1999
                                                     --------------------------------
                                                             (In thousands)
<S>                                                    <C>                   <C>
Loans sold under repurchase                          $   80,469              $ 69,026
Demand line of credit                                    40,747                28,477
Term loan, net of discount                                3,586                 3,567
                                                     ================================
                                                     $  124,802              $101,070
                                                     ================================
</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 attempts to
hedge the interest rate risk on its portfolio by entering into Treasury security
rate locks and forward interest rate swaps. The Company classifies these
transactions as hedges on specific loan receivables. Any gross unrealized gains
or losses on these hedge positions 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 interest
rate swaps and Treasury rate locks as of December 31, 1999 and September 30,
1999:





                                       8
<PAGE>   9

                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------


<TABLE>
<CAPTION>
                                                                       DECEMBER 31,             SEPTEMBER 30,
                                                             ---------------------------------------------------
                                                                           1999                     1999
                                                             ---------------------------------------------------
                                                                           GROSS                    GROSS
                                                                        UNREALIZED                UNREALIZED
   TYPE                     REFERENCE RATE/TREASURY                  GAINS (LOSSES)            GAINS (LOSSES)
----------------------------------------------------------------------------------------------------------------
                                                                             (In thousands)
<S>                       <C>                                          <C>                          <C>
Treasury Lock               U.S. Treasury 4.750% - 11/08               $  --                        $ 126
Treasury Lock               U.S. Treasury 5.625% - 5/08                   --                          115
Treasury Lock               U.S. Treasury 5.500% - 5/09                   --                            6
Treasury Lock               10 Year Treasury                              --                            2
Interest Rate Swap          10 Year Swap                                 609                         (146)
</TABLE>


6.   ACQUISITIONS:

     In December 1999, the Company completed the acquisition of Dynex Financial,
     Inc. (DFI) from Dynex Holding, Inc. (DHI), a subsidiary of Dynex Capital,
     Inc (DCI). The Company acquired all of the issued and outstanding stock of
     DFI and all of the rights to DCI's manufactured home lending business for
     approximately $4.0 million in cash funded by borrowings on the Company's
     demand lines of credit. DFI specializes in lending to buyers of
     manufactured homes and has regional and district offices in nine states. In
     addition DFI provides servicing for manufactured home and land/home loans.

     The DFI acquisition was accounted for using the purchase method. The
     consideration and acquisition costs for the DFI acquisition have been
     allocated to the acquired assets and assumed liabilities, resulting in
     excess of the fair value of the acquired net assets over the purchase price
     of approximately $3.2 million which has been recognized as a reduction in
     the amount allocated to purchased loan servicing rights. As discussed
     below, the Company is in the process of finalizing its plan to exit certain
     of DFI's activities and the related purchase price allocation will be
     adjusted when those plans are finalized in 2000.

     In connection with the DFI acquisition, the Company recognized accrued
     liabilities of $5.0 million related to its plans to close certain of DFI's
     regional and district offices and terminate or relocate certain of its
     employees. The Company is in the process of finalizing its assessment of
     the offices and employees that will be affected and any adjustments
     resulting from the completion of the assessment and the resulting actions
     will result in an adjustment to the purchase price allocation. There were
     no amounts paid related to theses liabilities in the period ended December
     31, 1999.



                                       9
<PAGE>   10



                     BINGHAM FINANCIAL SERVICES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   ----------

     The following table summarizes pro forma unaudited results of operations as
     if the acquisition completed during 1999 had occurred at the beginning of
     each year presented:



<TABLE>
<CAPTION>
                                                                             THREE MONTHS ENDED
                                                                                 DECEMBER 31,
                                                             ---------------------------------------------
                                                                        1999                      1998
----------------------------------------------------------------------------------------------------------
                                                                 (In thousands, except earnings per share)
<S>                                                               <C>                       <C>
Revenues                                                              $ 9,114                 $    8,838
Income before cumulative effect of
    change in accounting principle                                     (3,438)                     1,390
Cumulative effect of change in accounting
  principle, net of tax                                                  (576)                        --
Net Income                                                             (2,704)                     1,177
Basic earnings (loss) per share                                       $ (1.06)                $     0.93
Diluted earnings (loss) per share                                     $ (1.06)                $     0.77

</TABLE>

7.   CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE:

     In April 1998 the Financial Accounting Standards Board issued Statement of
     Position Number 98-5 (SOP 98-5) "Reporting on the Cost of Start-Up
     Activities". This statement, which is required to be adopted for fiscal
     years beginning after December 15, 1998 establishes guidance for the
     accounting of start-up activities. It states that the cost of start-up
     activities, including organizational costs, should be expensed as incurred.
     The Company has deferred organizational costs related to the formation of
     its manufactured home lending subsidiary and the filing of its application
     to become a unitary thrift holding company and for the formation of a
     federally chartered savings bank. In the period ended December 31, 1999 the
     Company expensed, approximately $563,000 net of federal income tax benefit
     of $290,000 for previously capitalized organization costs.






                                       10
<PAGE>   11



                     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 1999
    Form 10-K of Bingham Financial. Results of operations for the three-month
    periods presented are not necessarily indicative of results which may be
    expected for the entire year.

    RESULTS OF OPERATIONS

    The Company reported a net loss of $185,000 for the quarter ended December
    31, 1999 compared to net income of $764,000 in the quarter ended December
    31, 1998. The decrease in net income is due primarily to the cumulative
    effect of a change in accounting principle of $853,000 and an increase in
    general and administrative expenses of approximately $1.8 million. The
    change in accounting principle relates to start up costs that were
    previously capitalized and amortized over five years but are now required to
    be expensed as incurred. The change is retroactive and the Company was
    required to expense currently all previously capitalized start up costs. The
    significant increase in general and administrative expenses is the result of
    the continued growth in the size of the Company including the acquisition of
    DFI.

    Interest income on loans increased to $4.0 million for the period, or
    approximately 92% over interest income of $2.1 million in the comparable
    period in 1998. The large increase is primarily due to an increase in the
    average outstanding loan receivable balance of $153.8 million for the three
    months ended December 31,1999 versus $97.6 million for the three months
    ended December 31, 1998, an increase of 57.6%. The increase in interest
    income was also the result of an increase in the average yield on the loan
    receivable portfolio of 10.6% for the period in 1999 versus 8.7% in 1998.
    This was due to a larger percentage of the loan portfolio being made up of
    higher yielding manufactured home loans versus commercial mortgage loans.

    Interest expense for the three months ended December 31, 1999 was $2.8
    million as compared to $1.7 million, an increase of 65%, for the comparable
    period ended December 31, 1998. The increase in interest expense is driven
    by the increase in the average outstanding balance of debt used to finance
    the loan receivables and fund operations. Average outstanding debt increased
    to $137.9 million, or 47.2% for the period in 1999 versus $93.0 million in
    the comparable period in 1998. Adding to the increase in interest expense
    was an increase in the cost of borrowings to 8.3% for the quarter ended
    December 31, 1999 compared to 7.3% in the same period in 1998.

    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.




                                       11
<PAGE>   12



                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------

<TABLE>
<CAPTION>

                                        THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
                             -------------------------------------------------------------------------------------------------
                              AVERAGE BALANCE            AVERAGE RATE        INTEREST         INCREASE       VARIANCE DUE TO:
                             ------------------------------------------------------------
                                1999        1998         1999     1998     1999      1998    (DECREASE)    VOLUME        RATE
                             -------------------------------------------------------------------------------------------------
<S>                           <C>        <C>            <C>       <C>    <C>      <C>        <C>         <C>              <C>
Interest-earning assets:
Loans                         $153,758   $ 97,550       10.59%    8.68%  $4,069   $  2,118   $  1,951    $  1,485         466
Cash and equivalents             3,923      4,331        2.44%    3.42%      24         37        (13)         (2)        (11)
                             -------------------------------------------------------------------------------------------------
                               157,681    101,881       10.38%    8.46%   4,093      2,155      1,938       1,483         455
                             -------------------------------------------------------------------------------------------------

Interest-bearing Liabilities
Term loan                        4,000      4,000       11.68%   11.68%     117        117         --          --          --
Revolving line of credit        41,881     20,262        7.88%    8.13%     825        412        413         426         (13)
Loans sold under repurchase     91,066     68,797        8.30%    6.81%   1,890      1,170        720         464         256
                               -------------------------------------------------------------------------------------------------
                               136,947     93,059        8.27%    7.30%   2,832      1,699      1,133         889         244
                               -------------------------------------------------------------------------------------------------

Interest rate spread                                     2.11%    1.16%
Excess average earning          20,734      8,822       10.38%    8.46%
assets                       ==========================================
Net interest margin                                      3.20%    1.79%  $1,261   $    456      $ 805    $    593         212
                                                     ==========================================================================
</TABLE>


    Mortgage origination fees are related to commercial mortgage loans
    originated and placed with outside investors. Placement fees increased 173%
    to $762,000 on placed commercial mortgage loans of $105.9 million for three
    months ended December 31, 1999 compared to $279,000 in fees on placed
    commercial mortgage loans of $24.5 million in the comparable period in 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 loss due to repossession and ultimate
    charge-off of loans sold with recourse that are required to be repurchased.
    For the quarter ended December 31, 1999 the company sold approximately $100
    million of its manufactured home loan receivables resulting in a net gain of
    $1.6 million as compared to sales of $5 million of manufactured home loan
    receivables resulting in gains of $289,000 for the comparable period in
    1998. The quarter ended December 31, 1998 also included a recovery of $1.25
    million related to the valuation of the loan portfolio and related hedge
    positions.

    Provision for credit losses is recorded in amounts sufficient to maintain an
    allowance at a level considered adequate to cover losses from liquidating
    manufactured home loans and loans sold with recourse. Provision for credit
    losses increased approximately 273% to $362,000 for the three months ended
    December 31, 1999 compared to $97,000 for the same period in 1998. The large
    increase is primarily related to a 274% increase in average outstanding
    principal balance of manufactured home loans which was $95.7 million for the
    period ended December 31, 1999 as compared to $25.6 million for the period
    ended December 31, 1998. The provision increase is also affected by the
    increase in non-performing manufactured home loans which were 2.95% of the
    manufactured home loan outstanding principal balance at December 31, 1999
    versus .25% of the outstanding principal balance for the comparable period
    in 1998.


                                       12
<PAGE>   13


                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------

    General and administrative and other operating expenses totaled
    approximately $3.3 million for the quarter ended December 31, 1999. This was
    an increase of $2.1 million or 175% over general and administrative expenses
    in the comparable quarter in 1998 of $1.2 million. The largest part of the
    increase is directly related to personnel costs. The Company increased its
    number of existing full time employees to 95 and also added approximately
    200 full time employees with its acquisition of Dynex Financial in
    mid-December 1999 resulting in personnel costs of $2.2 million for the
    quarter or an increase of 277%. This is compared to 40 full time employees
    with personnel costs of $583,000 for the quarter ended December 31, 1998.
    These increases reflect the costs of the Company's expanding its
    manufactured home lending operations to communities outside those owned and
    operated by Sun and the expansion of its commercial mortgage lending
    business through the acquisition of Hartger & Willard in the fourth quarter
    of 1999. The increase in personnel resulted in an increase in occupancy and
    office expenses to $470,000 for the period ended December 31, 1999 or 123%
    increase over the comparable period in 1998 of $211,000.

    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.

    During the three month period ended December 31, 1999 total borrowings
    increased to $124.8 from $101.1 at September 30, 1999. The increased
    borrowings are net of approximately $100.8 in proceeds from the sale of a
    portion of the Company's manufactured home loan portfolio that were used to
    pay down its demand lines of credit and repurchase facility. The increased
    borrowings were primarily for the funding of new loan originations and
    the acquisition of DFI.

    During the period ended December 31, 1999 the Company increased its
    available borrowings under its demand lines of credit to a total of $60
    million and is currently negotiating an increase in available limits under
    its repurchase facility.

    LOANS RECEIVABLE

    Net loans receivable increased $23.6 million from $117.8 million at
    September 30, 1999 to $141.5 million at December 31, 1999. Commercial
    mortgage loans originated and held for sale were $11.8 million and
    manufactured home loan originations were $35.2 million for the three months
    ended December 31, 1999. The Company also purchased approximately $72
    million in manufactured home and floor plan loans during the period from
    DFI prior to its acquisition in December 1999.

    New loan originations were offset by the sale of approximately $100 million
    of manufactured home loans in one bulk sale in December 1999.

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




                                       13

<PAGE>   14

                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------

<TABLE>
<CAPTION>
                                                                         December 31, 1999
                                                       -----------------------------------------------
                                                         Manufactured  Home         Commercial
    --------------------------------------------------------------------------------------------------
                                                                         (Dollars in thousands)
<S>                                                       <C>                       <C>
    Principal balance loans................
    receivable, net........................               $     71,630              $   65,930
    Number of loans........................                      1,907                      27
    Average loan balance...................               $         38              $    2,442
    Weighted average loan yield............                       10.9%                    9.8%
    Weighted average initial term..........                         25 years               6.5 years

</TABLE>

    Delinquency statistics at December 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                 1,907         5.0%        2.7%         2.4%            10.1%

Manufactured home loans
  sold with full recourse               1,327         2.0%        0.0%         0.0%             2.0%
                                       ---------------------------------------------------------------
                                        3,234         3.7%        1.6%         1.4%             6.7%
                                       ===============================================================
</TABLE>


<TABLE>
<CAPTION>

                              Gross Principal                                Greater
                                 Balance               31-60      61-90      than 90           Total
    --------------------------------------------------------------------------------------------------
                                                        (Dollars in thousands)
<S>                             <C>                     <C>        <C>          <C>             <C>
    Manufactured home loans     $ 71,429                4.1%       2.5%         1.9%            8.5%

    Manufactured home loans
      sold with full recourse     41,641                1.4%       0.0%         0.0%            1.4%
                                ----------------------------------------------------------------------
                                $113,070                3.1%       1.6%         1.2%            5.9%
                                ======================================================================
</TABLE>

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

    YEAR 2000 READINESS

    Some computers, software, and other equipment include a programming code in
    which calendar year data was abbreviated to only two digits. As a result of
    this design decision, some of these systems could have failed to operate or
    failed to produce correct results if "00" was 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.

    Phase I of the Company's year 2000 project was completed prior to December
    31, 1999. 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 Company's management information systems
    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 were corrected. There were no systems that required
    complete replacement. All non-compliant hardware had been replaced. Any new
    systems or hardware to be acquired are verified to be year 2000 compliant.
    Phase II also included testing of updated systems and hardware for
    compliance. This portion of the project was completed prior to December 31,
    1999.




                                       14
<PAGE>   15

                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------

    The Company continues to obtain statements of compliance from its external
    vendors and business relationships to verify that they are year 2000
    compliant. 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 incurred totaled approximately $45,000. The
    majority of the cost was incurred for MIS personnel expense required for
    identifying, testing and, where necessary, updating critical systems. The
    cost also included the replacement of some non-compliant hardware. The
    Company estimates the total costs of the year 2000 project will not be
    material to its financial position or results of operations.

    The company has experienced no significant problems related to the year 2000
    issue but continues to monitor both its internal systems and external
    vendors to attempt to prevent any future potential problems that may occur.

    SUBSEQUENT EVENTS

    On February 4, 2000, the Board of Directors of Bingham Financial Services
    Corporation ("Bingham") approved the change in its fiscal year end from
    September 30 to December 31. Accordingly, Bingham's 2000 fiscal year will
    end on December 31, 2000 and its first quarter will cover the three-month
    period ending March 31, 2000. Bingham will file a report covering the
    three-month transition period from October 1, 1999 through December 31, 1999
    on Form 10-Q.

    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, 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 negative 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>
Assets:
    Cash and equivalents                                         --              --              --              --              --
    Restricted cash                                           1,069           3,206              --              --           4,275
    Loans receivable                                          4,244          11,316          59,410          66,483         141,453
    Servicing rights                                            389           1,266           5,257           2,823           9,736
    Other assets                                              4,953           3,389           1,955           2,737          13,035
                                                 ----------------------------------------------------------------------------------
            TOTAL ASSETS                                     10,655          19,177          66,623          72,044         168,499
                                                 ==================================================================================
Liabilities:
    Advances by mortgagors                                    1,057           3,171              --              --           4,228

    Accounts payable and accrued expenses                     9,684           2,126              --              --          11,810

    Advances under repurchase agreement                      41,844          38,625                                          80,469
    Subordinated debt                                           (25)            (82)          3,694              --           3,586

    Notes Payable                                                --          40,747              --              --          40,747

    Other liabilities                                            --              --              --           1,520           1,520
                                                 ----------------------------------------------------------------------------------
            TOTAL LIABILITIES                                52,560          84,586           3,694           1,520         142,360
                                                 ----------------------------------------------------------------------------------
Stockholders' Equity
    Common stock                                                 --              --              --          25,697          25,697
    Paid-in-capital                                              --              --              --             641             641
    Accumulated other comprehensive loss                         --              --            (106)             --            (106)
    Retained earnings                                            --              --              --             (93)            (93)
                                                 ----------------------------------------------------------------------------------
            TOTAL LIABILITIES AND EQUITY                  $  52,560       $  84,586       $   3,588       $  27,765       $ 168,499
                                                 ==================================================================================

    Reprice difference                                    $ (41,905)      $ (65,409)      $  63,035       $  44,279
    Cumulative gap                                        $ (41,905)      $(107,314)      $ (44,279)      $      --
    Percent of total assets                                  (24.87%)        (63.69%)        (26.28%)            --
</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 2000. 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


                                       16

<PAGE>   17

                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------

    held by the Company are held for purposes other than trading.

    The Company also currently manages interest rate risk through the use of
    Treasury security rate locks and forward interest rate swaps to hedge a
    portion of the fixed rate loans in the commercial loan portfolio. The
    Company uses these instruments in an attempt to reduce risk by essentially
    creating offsetting market exposures.

    To effect a Treasury rate lock the Company has entered into an agreement
    with a counter-party whereby a "locked in" Treasury rate is established,
    usually the yield to maturity rate on a U.S. Treasury security. If the
    current yield to maturity is greater than the locked in yield to maturity, a
    situation that would indicate rising interest rates, the rate lock will have
    increased in value and the Company will have an unrealized gain. The
    unrealized gain will help off-set the decrease in value of the fixed rate
    loans caused by rising interest rates. In a declining interest rate
    environment the current yield to maturity on the treasury security would be
    less than the locked in rate creating an unrealized loss on the hedge
    position. The declining interest rate environment should increase the value
    of the loans thereby off-setting the loss on the hedge.

    A forward interest rate swap is an obligation to enter into a swap or cash
    settlement on a future date for the difference between the market rate on
    that date and an agreed upon swap rate. This transaction is similar to a
    Treasury rate lock in that it allows you to lock in a rate starting in the
    future. The difference is that you will be locking in a future swap rate,
    not a forward treasury yield. A forward interest rate swap allows the
    positive or negative effect of a change in the value of the underlying loans
    to be offset by the positive or negative payment on the settlement of the
    hedging transaction. If interest rates rise the value of the loan portfolio
    will have decreased but the decrease will be offset by an increase in the
    value of the hedge equal to approximately the present value of decrease in
    value of the hedged loan portfolio. If interest rates are declining the
    reverse would hold true, The value of the loan portfolio will increase and
    be offset by a decrease in the value of the swap approximately equal to the
    present value of the hedged loan portfolio increase.

    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 December 31, 1999.









                                       17
<PAGE>   18







                     BINGHAM FINANCIAL SERVICES CORPORATION

                                   ----------



<TABLE>
<CAPTION>
                                                                          CONTRACTUAL MATURITY
                                         ------------------------------------------------------------------------------------------
                                                                                                                            TOTAL
                                                  2000         2001        2002         2003      2004       THEREAFTER   FAIR VALUE
                                         ------------------------------------------------------------------------------------------
<S>                                             <C>         <C>         <C>         <C>         <C>         <C>           <C>
Interest sensitive assets:
    Loans receivable                             $ 15,013    $ 12,315    $  9,877    $ 10,990    $ 12,223    $   76,386    $136,804
    Average interest rate                           10.59%      10.59%      10.59%      10.59%      10.59%        10.59%      10.59%
    Interest bearing deposits                       4,275          --          --          --          --            --       4,275
    Average interest rates                           2.44%         --          --          --          --            --        2.44%
    Hedging transactions                               --          --          --          --          --        26,287      26,287
    Average interest rate                              --          --          --          --          --          6.77%       6.77%
                                         ------------------------------------------------------------------------------------------
Total interest sensitive assets                  $ 19,288    $ 12,315    $  9,877    $ 10,990    $ 12,223    $  102,673   $ 167,366
                                         ==========================================================================================

Interest sensitive liabilities:
  Borrowings:
    Advances under repurchase                    $ 80,469    $     --    $     --    $     --    $     --    $       --    $ 80,469
    Average interest rate                            8.30%         --          --          --          --            --        8.30%
    Subordinated debt                                  --          --          --          --          --         3,586       3,586
    Average interest rate                              --          --          --          --          --         11.68%      11.68%
    Note payable                                   40,747          --          --          --          --            --      40,747
    Average interest rate                            7.88%         --          --          --          --            --        7.88%
                                         ------------------------------------------------------------------------------------------
Total interest sensitive liabilities             $121,216    $     --    $     --    $     --    $     --    $    3,586   $ 124,802
                                         ==========================================================================================

</TABLE>






                                       18
<PAGE>   19



                     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

               The Company filed a report on Form 8-K disclosing a change in
               its fiscal year end to December 31. The report was filed on
               February 11, 2000.




                                       19






<PAGE>   20



                                   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: February 11, 2000



                               BINGHAM FINANCIAL SERVICES CORPORATION



                               BY:  /s/  Ronald A. Klein
                                    -------------------------------------------
                                    Ronald A. Klein, Chief Executive Officer







                                       20

<PAGE>   21







                                  EXHIBIT INDEX




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

   27              Financial Data Schedule             X               X



















                                       21