ICNB Financial Corporation

Earnings per share of $0.33 for the first half of 2008 compared to $0.68 in the first half of 2007. Net income was $2,442,000 for the six months ended June 30, 2008, compared to $4,405,000 for the six months ended June 30, 2007. Returns on average assets and average equity for the first half of 2008 were 0.37% and 4.3%, respectively, compared with 0.83% and 9.3%, respectively, in the first half of 2007.

Firstbank's loan loss provision in the second quarter of 2008 was $3,465,000, in line with the amount previously announced in the news release issued June 13, 2008. In the second quarter of 2007, provision expense was $739,000, and averaged $504,000 per quarter for the four quarters of 2007. The increase in provision expense reflects a variety of factors including the ongoing economic stresses impacting the Michigan and national economies, the continued deterioration in real estate values, and Firstbank's practice of immediately reserving for problem loans when they are identified. The bulk of the increased provision was taken at the newest affiliate bank, Firstbank - West Michigan, which was acquired with ICNB Financial Corporation on July 1, 2007. In times of less credit stress and at the time of acquisition, most of the bank's problem credits could, and were able to, perform according to their terms, but under current economic conditions the additional provision for loan losses became appropriate.

Balance sheet comparisons to periods prior to July 1, 2007, are affected by the acquisition of ICNB Financial Corporation and the inclusion in the consolidated totals of its bank, Firstbank - West Michigan, which had assets of $227 million at June 30, 2008. Total assets of Firstbank Corporation at June 30, 2008, were $1.389 billion, an increase of 26.4% over the year-ago period. Total portfolio loans of $1.153 billion were 25.4% above the level at June 30, 2007, with 18.5% of the increase due to the addition of $170 million loans of Firstbank - West Michigan. Total deposits as of June 30, 2008, were $1.014 billion, including $155 million deposits of Firstbank - West Michigan, compared to $826 million at June 30, 2007.

Gain on sale of mortgage loans increased in each quarter of 2007, and more than doubled in the first quarter of 2008 compared to the fourth quarter of 2007. This source of revenue then declined by 51% in the second quarter of 2008 compared to the first quarter of 2008, but was still above the level in the fourth quarter of 2007. Declines in interest rates in the latter part of 2007 and sharper declines in the first months of 2008 helped to expand mortgage activity and refinances, but interest rates have moved back up in the second quarter, slowing activity once again.

Most items of revenue and expense were affected by the inclusion of Firstbank - West Michigan when comparing the second quarter of 2008 to the second quarter of 2007. Service charges on deposit accounts increased 26.4% in the second quarter of 2008 compared to the second quarter of 2007. More importantly, service charges on deposit accounts increased 7.5% in the second quarter of 2008 compared to the first quarter of 2008, as deposit account activity charges and interchange fees related to debit card usage showed good growth. Salaries and employee benefits expense, although well contained in the second quarter of 2008 compared to the first quarter of 2008, was 14.4% above the level in the second quarter of 2007, and total non-interest expense increased 15.3% over the level in the second quarter of 2007, with the increases driven largely by the inclusion of the new bank.

Mr. Sullivan stated, "We are witnessing turmoil in the financial services industry unprecedented in many years, evidenced by the federal government's multi-billion dollar commitments to support various institutions. We continue to be pleased with the relatively good asset quality at our banks, in spite of the elevated charge-offs and provision expense coming from our newest acquisition. The extraordinary stress in the economy and credit markets has caused losses at Firstbank - West Michigan beyond the level we had expected. As we install the Firstbank credit culture in this bank, we have every intention of improving its asset quality in line with levels more customary at our other banks. Our capital strength enables us to ensure that all of our banks, including our newest bank, remain at well capitalized levels as defined by the banking regulators. While it is impossible to know how long this period of economic stress will last, we believe that we have identified the greatest portion of the loan problems at Firstbank - West Michigan. It appears that we may continue to see provision expense in the remainder of 2008 greater than we had originally hoped, but at levels significantly below the amount we recorded in the second quarter of 2008 and more in line with the quarterly average for 2007. We continue to believe in the return to a more positive economic environment in the future, and we continue to invest in the future, as exemplified by the opening in the first quarter of 2008 of our seventh office of Keystone Community Bank in the Kalamazoo market area."

Firstbank's net interest margin, at 3.77% in the second quarter of 2008, declined 2 basis points from 3.79% in the first quarter of 2008, and was 14 basis points below the 3.91% of the second quarter of 2007. Beginning on September 18th of 2007, the markets have been characterized by declines in the prime rate and other short-term rates, which have been driven by the Federal Reserve's efforts to stimulate economic activity and ease stress on liquidity in the credit markets. Reductions in the prime rate have an immediately negative impact on Firstbank's net interest margin, but as the company has worked to reduce deposit and other funding costs as quickly as possible, the downward pressure on the net interest margin has eased. While Firstbank's average earning assets increased 24.1% from the second quarter of 2007 to the second quarter of 2008, net interest income increased a smaller 19.0% due to the squeeze on net interest margin. Both growth measures are significantly affected by the addition of Firstbank - West Michigan.

During the second quarter of 2008, Firstbank Corporation closed the mortgage origination operations of Austin Mortgage Company and eliminated all of its staff positions. Austin Mortgage Company was a small subsidiary acquired as part of ICNB Financial Corporation. The subsidiary focused on origination of mortgages not otherwise acceptable to the bank, and it sold virtually its entire origination production to investors not related to ICNB Financial or Firstbank Corporation. The balance sheet of the entity retains a small portfolio of loans with a value of less than $635,000. Pre-tax costs associated with shutting down the operation in the amount of $106,000 are included in consolidated non-interest expense in the second quarter of 2008.

At June 30, 2008, the ratio of the allowance for loan losses to loans increased to 1.07% from 1.02% at March 31, 2008, and increased from 1.03% at June 30, 2007. The ratio of allowance for loan loss to non-performing loans stood at 69% at June 30, 2008.

Net charge-offs of $2,687,000 in the second quarter of 2008 (over 80% of which occurred at Firstbank - West Michigan) were 0.94% of average loans on an annualized basis, and net charge-offs of $3,430,000 for the first half of 2008 were 0.60% of average loans on an annualized basis. The ratio of non-performing loans (including loans past due over 90 days) to loans was 1.56% at June 30, 2008, compared to 1.27% as of March 31, 2008, and 0.97% at June 30, 2007.

Shareholders' equity decreased 1.4% in the second quarter of 2008, and was 19.4% above the level at June 30, 2007. The ratio of average equity to average assets remained at 8.6% in the second quarter of 2008 - the same as in the first quarter of 2008 and at a level consistent over past years. Firstbank did not repurchase its common stock in the first or second quarters of 2008. All of Firstbank Corporation's affiliate banks continue to meet the regulatory well-capitalized requirements.

Firstbank Corporation, headquartered in Alma, Michigan, is a financial services company using a multi-bank-charter format with assets of $1.4 billion and 53 banking offices serving Michigan's Lower Peninsula. Bank subsidiaries include: Firstbank - Alma; Firstbank (Mt. Pleasant); Firstbank - West Branch; Firstbank - St. Johns; Keystone Community Bank; and Firstbank - West Michigan.

This press release contains certain forward-looking statements that involve risks and uncertainties. When used in this press release the words "anticipate," "believe," "expect," "hopeful," "potential," "should," and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning future business growth, changes in interest rates, and the resolution of problem loans. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

                         FIRSTBANK CORPORATION
                   CONSOLIDATED STATEMENTS OF INCOME
             (Dollars in thousands except per share data)
                               UNAUDITED

                             Three Months Ended:      Six Months Ended:
                          -------------------------   ----------------
                           Jun 30   Mar 31   Jun 30    Jun 30   Jun 30
                            2008     2008     2007      2008     2007
                          -------------------------   ----------------
 Interest income:
  Interest and fees
   on loans               $19,031  $19,755  $17,042   $38,786  $33,840
  Investment securities
   Taxable                    945    1,039      687     1,984    1,313
   Exempt from federal
    income tax                349      353      267       702      537
   Short term investments      86       91      269       177      580
                          -------------------------   ----------------
 Total interest income     20,411   21,238   18,265    41,649   36,270

 Interest expense:
  Deposits                  6,431    7,089    6,589    13,520   13,096
  Notes payable and
   other borrowing          2,463    2,685    2,001     5,148    3,978
                          -------------------------   ----------------
 Total interest expense     8,894    9,774    8,590    18,668   17,074

 Net interest income       11,517   11,464    9,675    22,981   19,196
 Provision for
  loan losses               3,465      816      739     4,281       18
                          -------------------------   ----------------
 Net interest income
  after provision for
  loan losses               8,052   10,648    8,936    18,700   19,178

 Noninterest income:
  Gain on sale of
   mortgage loans             565    1,142      375     1,707      699
  Service charges on
   deposit accounts         1,256    1,168      994     2,424    1,938
  Gain (loss) on
   trading account
   securities                (160)     (13)       0      (173)       0
  Gain (loss) on sale
   of AFS securities          (67)     129        0        62     (130)
  Mortgage servicing          131     (123)     130         8      275
  Other                       647      628      896     1,275    1,891
                          -------------------------   ----------------
 Total noninterest
  income                    2,372    2,931    2,395     5,303    4,673

 Noninterest expense:
  Salaries and
   employee benefits        5,523    5,847    4,826    11,370    9,556
  Occupancy and
   equipment                1,740    1,749    1,326     3,489    2,677
  Amortization of
   intangibles                281      281      436       562      597
  FDIC insurance
   premium                    103      113       25       216       49
  Other                     2,697    2,718    2,357     5,415    4,837
                          -------------------------   ----------------
 Total noninterest
  expense                  10,344   10,708    8,970    21,052   17,716

 Income before
  federal income
  taxes                        80    2,871    2,361     2,951    6,135
 Federal income
  taxes                      (212)     721      614       509    1,730
                          -------------------------   ----------------
 Net Income               $   292  $ 2,150  $ 1,747   $ 2,442  $ 4,405
                          =========================   ================
 Fully Tax Equi-
  valent Net
  Interest Income         $11,791  $11,751  $ 9,855    23,542   19,553

 Per Share Data:
  Basic Earnings          $  0.04  $  0.29  $  0.27   $  0.33  $  0.68
  Diluted Earnings        $  0.04  $  0.29  $  0.27   $  0.33  $  0.68
  Dividends Paid          $ 0.225  $ 0.225  $ 0.225   $ 0.450  $ 0.450

 Performance Ratios:
  Return on Average
   Assets (a)                0.10%    0.64%    0.65%     0.37%    0.83%
  Return on Average
   Equity (a)                 1.2%     7.5%     7.2%      4.3%     9.3%
  Net Interest Margin
   (FTE) (a)                 3.77%    3.79%    3.91%     3.78%    3.90%
  Book Value Per
   Share (b)              $ 15.78  $ 16.09  $ 15.24   $ 15.78  $ 15.24
  Average Equity/
   Average Assets             8.6%     8.6%     9.0%      8.6%     8.9%
  Net Charge-offs         $ 2,687  $   743  $   319   $ 3,430  $   483
  Net Charge-offs as
   a % of Average
   Loans (c)(a)              0.94%    0.26%    0.14%     0.60%    0.11%

 (a)  Annualized
 (b)  Period End
 (c)  Total loans less loans held for sale



                         FIRSTBANK CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)
                               UNAUDITED

                        Jun 30       Mar 31       Dec 31       Jun 30
                         2008         2008         2007         2007
                     -------------------------------------------------
 ASSETS

 Cash and cash
  equivalents:
   Cash and due
    from banks       $   40,283   $   40,057   $   42,198   $   31,305
  Short term
   investments            6,281       12,553        3,331       16,192
                     -------------------------------------------------
 Total cash and
  cash equivalents       46,564       52,610       45,529       47,497

 Securities available
  for sale               96,991      107,866      105,130       73,407
 Federal Home Loan
  Bank stock              8,666        8,481        8,007        6,061
 Loans:
  Loans held for sale       191          238        1,725          628
  Portfolio loans:
   Commercial           214,185      216,458      219,080      198,637
   Commercial real
    estate              334,903      312,012      311,494      267,474
   Residential mortgage 393,293      391,568      387,222      299,456
   Real estate
    construction        132,896      130,942      126,027       89,173
   Consumer              77,559       77,827       78,106       64,840
                     -------------------------------------------------
 Total portfolio
  loans               1,152,836    1,128,807    1,121,929      919,580
   Less allowance
    for loan losses     (12,328)     (11,550)     (11,477)      (9,501)
                     -------------------------------------------------
 Net portfolio
  loans               1,140,508    1,117,257    1,110,452      910,079

 Premises and
  equipment, net         27,959       28,027       27,554       20,179
 Goodwill                35,553       35,345       34,421       19,819
 Other intangibles        4,390        4,670        5,832        2,723
 Other assets            28,336       27,993       27,089       19,055
                     -------------------------------------------------
 TOTAL ASSETS        $1,389,158   $1,382,487   $1,365,739   $1,099,448
                     =================================================

 LIABILITIES AND
 SHAREHOLDERS' EQUITY

 LIABILITIES

 Deposits:
  Noninterest bearing
   accounts          $  148,385   $  143,246   $  152,126   $  128,651
  Interest bearing
   accounts:
    Demand              219,161      224,998      222,371      155,085
    Savings             160,862      155,628      147,654      137,263
    Time                449,517      454,797      453,864      363,673
    Wholesale CDs        35,783       33,018       35,377       41,074
                     -------------------------------------------------
 Total deposits       1,013,708    1,011,687    1,011,392      825,746

 Securities sold
  under agreements to
  repurchase and
  overnight borrowings   48,718       49,280       42,791       42,897
 FHLB Advances and
  notes payable         156,923      147,572      139,035       97,370
 Subordinated Debt       36,084       36,084       36,084       20,620
 Accrued interest
  and other
  liabilities            15,605       18,097       17,826       13,894
                     -------------------------------------------------
 Total liabilities    1,271,038    1,262,720    1,247,128    1,000,527

 SHAREHOLDERS' EQUITY
 Preferred stock; no
  par value, 300,000
  shares authorized,
  none issued
 Common stock;
  20,000,000 shares
  authorized            112,491      111,914      111,436       93,119
 Retained earnings        5,790        7,174        6,692        6,026
 Accumulated other
  comprehensive
  income/(loss)            (161)         679          483         (224)
                     -------------------------------------------------
 Total shareholders'
  equity                118,120      119,767      118,611       98,921
                     -------------------------------------------------
 TOTAL LIABILITIES
  AND SHAREHOLDERS'
  EQUITY             $1,389,158   $1,382,487   $1,365,739   $1,099,448
                     =================================================

 Common stock shares
  issued and
  outstanding         7,484,368    7,441,342    7,407,198    6,555,767
 Principal Balance
  of Loans Serviced
  for Others ($mil)  $    517.3   $    516.8   $    515.1   $    471.2

 Asset Quality Ratios:
  Non-Performing Loans
   / Loans (a)             1.56%        1.27%        1.26%        0.97%
  Non-Perf. Loans + OREO
   / Loans (a) + OREO      1.89%        1.51%        1.54%        1.17%
  Non-Performing Assets
   / Total Assets          1.58%        1.23%        1.27%        0.98%
  Allowance for Loan Loss
   as a % of Loans (a)     1.07%        1.02%        1.02%        1.03%
  Allowance / Non-Per-
   forming Loans             69%          81%          81%         106%

 Quarterly Average
  Balances:
   Total Portfolio
    Loans (a)        $1,142,047   $1,129,710   $1,118,551   $  916,775
   Total Earning
    Assets            1,257,478    1,247,604    1,228,740    1,012,900
   Total Sharehol-
    ders' Equity        118,846      118,609      117,960       98,398
   Total Assets       1,389,391    1,377,329    1,356,106    1,097,337
   Diluted Shares
    Outstanding       7,451,664    7,417,187    7,378,262    6,545,229

 (a) Total Loans less loans held for sale

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Firstbank Corporation

Firstbank Corporation
         Samuel G. Stone, Executive Vice President
          and Chief Financial Officer
         (989) 466-7325