Firstbank Corporation Announces Second Quarter and Year-to-Date 2006 Results.

Highlights Include:

* Earnings per share (diluted) of $0.46 for the second quarter of 2006, up 4.5% from $0.44 in the second quarter of 2005 and up 21% from $0.38 in the first quarter of 2006 * Earnings per share (diluted) of $0.84 for the first half of 2006, up 3.7% from $0.81 in the first half of 2005 * Net income for the second quarter and first half of 2006 up 15.6% and 14.6% respectively from 2005, with the help of earnings from Keystone Community Bank * Restructuring of title insurance business produces gain in the second quarter of 2006 * Weak mortgage volumes and net interest margin pressures persist, offsetting benefits of loan growth * Higher provision expense, lower net charge-offs, and non-performing loan ratio increasing 9 basis points back to year-end 2005 level * Capital remains strong, and share repurchase continues

ALMA, Mich., July 20 /PRNewswire-FirstCall/ -- Thomas R. Sullivan, President and Chief Executive Officer of Firstbank Corporation , announced earnings per share of $0.46 for the second quarter of 2006, an increase of 21.1% compared to $0.38 for the first quarter of 2006 and an increase of 4.5% compared to $0.44 for the second quarter of 2005. Net income, aided by the inclusion of Keystone Community Bank earnings, was $2,899,000 for the quarter ended June 30, 2006, up 15.6% from the $2,508,000 for the quarter ended June 30, 2005. Returns on average assets and average equity for the second quarter of 2006 were 1.10% and 12.3%, respectively, compared with 1.23% and 13.6%, respectively, in the second quarter of 2005. Net income, earnings per share, and profitability measures in the second quarter of 2006 were helped by the recognition of gain on sale of a partial interest in Firstbank's title insurance business as detailed below. The most significant constraint on earnings growth and profitability improvement compared to year-ago results came from pressure on the net interest margin. All per share amounts are fully diluted amounts and have been adjusted to reflect the 5% stock dividend paid in December of 2005.

For the first half of 2006 compared to the first half of 2005, earnings per share of $0.84 in 2006 increased 3.7% from the $0.81 in 2005. Net income was $5,323,000 for the first half of 2006, up 14.6% from the $4,645,000 for the first half of 2005, reflecting the benefits of adding Keystone Community Bank and the gain on 1st Title. Returns on average assets and average equity for the first half of 2006 were 1.03% and 11.6%, respectively, compared with 1.16% and 12.8%, respectively, in the first half of 2005. As required by SFAS 123R, Firstbank Corporation began expensing stock options in 2006 as a reduction of net income rather than as a footnote item as disclosed in prior periods. This accounting change reduced earnings per share in each of the first and second…