EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Date Submitted: January 24, 2007
NASDAQ Symbol: FBMI NEWS RELEASE

Contact: Samuel G. Stone
                Executive Vice President and
                Chief Financial Officer
                (989) 466-7325

FIRSTBANK CORPORATION ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2006 RESULTS

Highlights Include:

• Net income for the full year of 2006 up 1.0% from 2005, with the help of earnings from Keystone Community Bank

• Earnings per share (diluted) of $0.33 for the fourth quarter of 2006 compared to $0.43 in the fourth quarter of 2005, and $1.55 for the year 2006 compared to $1.64 in 2005, with all amounts adjusted for the 5% stock dividend paid in December of 2006

• Net interest margin contracts due to the flat yield curve and increasing deposit costs

• Capital remains strong

Alma, Michigan (FBMI) — Thomas R. Sullivan, President and Chief Executive Officer of Firstbank Corporation, announced earnings per share of $0.33 for the fourth quarter of 2006, a decrease of 23.3% compared to $0.43 for the fourth quarter of 2005. Net income was $2,168,000 for the quarter ended December 31, 2006, down 24.4% from the $2,868,000 for the quarter ended December 31, 2005. Returns on average assets and average equity for the fourth quarter of 2006 were 0.79% and 8.9%, respectively, compared with 1.09% and 12.2%, respectively, in the fourth quarter of 2005. Decline in the net interest margin was the primary cause of the decreased level of earnings. All per share amounts are fully diluted and have been adjusted to reflect the 5% stock dividend paid in December of 2006.

For the full year 2006 compared to the full year 2005, earnings per share of $1.55 in 2006 decreased 5.5% from $1.64 in 2005. Net income was $10,208,000 for 2006, up 1.0% from the $10,110,000 for 2005, including the benefit of adding Keystone Community Bank. Returns on average assets and average equity for 2006 were 0.95% and 10.7%, respectively, compared with 1.15% and 12.8%, respectively, in 2005. As required by SFAS 123R, Firstbank Corporation began expensing the fair value of 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 2006 by slightly over $0.02 per share.

In its third quarter earnings announcement and 10-Q filing, Firstbank discussed two issues with problem credits. The first was a $3.1 million credit which had been charged down in the third quarter by the amount of previously established reserves with the remaining balance transferred to other real estate owned. During the fourth quarter, this real estate collateral was sold at no material gain or loss to Firstbank. The second situation was a loan of similar size which is performing but for which a specific reserve previously had been established due to concerns regarding prospects for the business. At December 31, 2006, the borrower is negotiating the sale of a business, but the sale has not consummated. Should this sale occur, it would result in a negative provision expense to reverse the previously established reserves. Total portfolio loans of $910 million were 0.3% below the level at September 30, 2006, reflecting the payoff of a $10.5 million group of loans late in December. Total assets at December 31, 2006, were $1.1 billion and increased 3.3% over the year-ago period. Total deposits as of December 31, 2006, were $835 million, compared to $820 million at September 30, 2006, and compared to $811 million at December 31, 2005.

Firstbank’s net interest margin, at 3.98% in the fourth quarter of 2006, declined by 17 basis points from the 4.15% level for the third quarter of 2006. As the prime rate has not changed since June and the yield curve remains flat, Firstbank’s yield on earning assets remained essentially unchanged. The yield on earning assets did decline 0.02% as certain amortization periods expired related to Keystone merger accounting adjustments that had provided a small benefit to the yield on earning assets. More significantly, the cost of funding earning assets increased 0.15% in the fourth quarter of 2006 compared to the third quarter of 2006. Customers continued to adjust to market interest rates, and deposit balances shifted from lower rate products to higher rate products, mostly certificates of deposit. Competitive pressures and the flat yield curve kept these deposit rates high providing only a narrow margin to rates available for making loans.

Mr.     Sullivan stated, “In the fourth quarter two of the three major challenges facing banks in Michigan, and to some degree nationally, came to bear on the earnings of our company. The persistent flat yield curve combined with the cessation of interest rate increases meant that deposit costs continued to roll up while asset yields held firm. Margins were squeezed to a greater extent than we have ever seen before. Secondly, economic activity in Michigan is lagging other regions of the country. While certain areas of Michigan are more affected than the markets Firstbank serves, real estate activity is particularly slow and loan growth is modest. The third area of challenge is asset quality, and while we have had some increase in situations that require attention, for the most part our lenders have been able to resolve issues favorably and our loan structures and borrowers are proving sound. We remain confident that the capabilities of our people and the strong financial condition of our company will allow us to move through the period of challenge and remain well positioned to benefit from improving conditions.”

In October of 2006, Firstbank’s new captive insurance company known as FBMI Risk Management Services, Inc., began operations. This unit provides risk management and insurance services to Firstbank Corporation affiliates and is expected to provide improved management of risks not otherwise covered by externally provided insurance, in a cost effective way. There has been no related reduction in externally provided insurance coverage, although greater reliance on self-insurance may be considered in the future.

Non-interest income declined 4.6% in the fourth quarter of 2006 and was 0.7% higher than the level in the fourth quarter of 2005, primarily due to low activity in the real estate markets in Michigan. The low real estate volumes affected gain on sale of mortgages, which was off 10.4% in the fourth quarter of 2006 compared to the third quarter and was 14.4% below the year-ago level. Title insurance, appraisal, and brokerage revenues generated through non-bank subsidiaries and reported as part of other non-interest income were also impacted. During the year, Firstbank sold its interest in its appraisal subsidiary and reduced its interest in its title insurance subsidiary to slightly below 55%, as previously announced.

Shareholders’ equity decreased 0.2% in the fourth quarter of 2006, and was 2.4% above the level at December 31, 2005, as share repurchase continued to be used to maintain appropriate capital levels. Firstbank Corporation repurchased 66,000 shares in the fourth quarter of 2006, bringing the total number of shares repurchased in 2006 to 222,500, or $5.25 million. The ratio of average equity to average assets stood at 8.8% in the fourth quarter of 2006 – a level consistent over the past two years – indicating that strong equity capital has been maintained.

Provision for loan loss expense was $169,000 in the fourth quarter of 2006 and $767,000 for full year 2006, compared to $141,000 and $295,000 respectively in 2005. Net charge-offs were $892,000 in the fourth quarter of 2006 and $2,359,000 for full year 2006. Provision expense in 2006 exceeded net charge-offs excluding amounts charged off against specific reserves. Annualized as a percentage of average loans, net charge-offs were 0.39% in the fourth quarter of 2006 and 0.26% for full year 2006. The ratio of non-performing loans (including loans past due over 90 days) to loans was 0.47% at December 31, 2006, improving from 0.82% at December 31, 2005.

Firstbank Corporation, headquartered in Alma, Michigan, is a six bank financial services company with assets of $1.1 billion and 41 banking offices serving Michigan’s Lower Peninsula. Bank subsidiaries include: Firstbank – Alma; Firstbank (Mt. Pleasant); Firstbank – West Branch; Firstbank – Lakeview; Firstbank – St. Johns; and Keystone Community Bank.

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 BALANCE SHEETS
(Dollars in thousands)
UNAUDITED

	Dec 31 2006			Sep 30 2006			Dec 31 2005
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	32,084		$	29,194		$	36,037
Short term investments		24,853			6,703			17,295
Total cash and cash equivalents		56,937			35,897			53,332
Securities available for sale		69,125			71,900			73,811
Federal Home Loan Bank stock		5,924			6,137			6,309
Loans:
Loans held for sale		1,120			1,236			293
Portfolio loans:
Commercial		194,810			205,424			183,473
Commercial real estate		286,249			295,172			302,471
Residential mortgage		284,137			279,883			272,402
Real estate construction		81,218			67,743			61,067
Consumer		63,106			64,142			59,211
Total portfolio loans		909,520			912,364			878,624
Less allowance for loan losses		(9,966	)		(10,689	)		(11,559	)
Net portfolio loans		899,554			901,675			867,065
Premises and equipment, net		20,232			19,916			19,477
Goodwill		20,094			20,094			19,888
Other intangibles		3,045			3,206			3,710
Other assets		19,954			20,600			17,233
TOTAL ASSETS	$	1,095,985		$	1,080,661		$	1,061,118
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest bearing accounts	$	131,942		$	121,320		$	130,556
Interest bearing accounts:
Demand		161,228			168,597			187,398
Savings		127,301			129,578			133,584
Time		350,710			332,849			275,773
Wholesale CD's		64,245			67,554			83,794
Total deposits		835,426			819,898			811,105
Securities sold under agreements to
repurchase and overnight borrowings		35,179			36,350			43,311
FHLB Advances and notes payable		94,177			93,703			90,634
Subordinated Debt		20,620			20,620			10,310
Accrued interest and other liabilities		14,803			14,075			12,181
Total liabilities		1,000,205			984,646			967,541
SHAREHOLDERS' EQUITY
Preferred stock; no par value, 300,000
shares authorized, none issued
Common stock; 20,000,000 shares authorized		91,652			86,108			87,634
Retained earnings		4,259			10,047			6,198
Accumulated other comprehensive income/(loss)		(131	)		(140	)		(255	)
Total shareholders' equity		95,780			96,015			93,577
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,095,985		$	1,080,661		$	1,061,118
Common stock shares issued and outstanding		6,484,202			6,529,662			6,591,937
Principal Balance of Loans Serviced for Others ($mil)	$	472.0		$	472.3		$	473.3
Asset Quality Ratios:
Non-Performing Loans / Loans^		0.47	%		0.43	%		0.82	%
Non-Perf. Loans + OREO / Loans^ + OREO		0.65	%		0.85	%		0.94	%
Non-Performing Assets / Total Assets		0.54	%		0.72	%		0.78	%
Allowance for Loan Loss as a % of Loans^		1.10	%		1.17	%		1.32	%
Allowance / Non-Performing Loans		234	%		271	%		160	%
Quarterly Average Balances:
Total Portfolio Loans^	$	915,191		$	914,979		$	868,701
Total Earning Assets		999,225			995,226			957,246
Total Shareholders' Equity		95,761			95,844			92,547
Total Assets		1,083,518			1,082,031			1,037,354
Diluted Shares Outstanding		6,543,831			6,593,801			6,600,591

^ Total Loans less loans held for sale

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

	Three Months Ended:									Twelve Months Ended:
	Dec 31 2006			Sep 30 2006			Dec 31 2005			Dec 31 2006			Dec 31 2005
Interest income:
Interest and fees on loans	$	17,303		$	17,366		$	15,631		$	67,200		$	50,030
Investment securities
Taxable		534			552			501			2,139			1,952
Exempt from federal income tax		266			245			244			1,000			956
Short term investments		150			110			88			447			192
Total interest income		18,253			18,273			16,464			70,786			53,130
Interest expense:
Deposits		6,469			6,066			4,536			22,942			12,368
Notes payable and other borrowing		1,992			2,000			1,670			7,779			5,446
Total interest expense		8,461			8,066			6,206			30,721			17,814
Net interest income		9,792			10,207			10,258			40,065			35,316
Provision for loan losses		169			213			141			767			295
Net interest income after provision for loan losses		9,623			9,994			10,117			39,298			35,021
Noninterest income:
Gain on sale of mortgage loans		309			346			362			1,265			1,686
Service charges on deposit accounts		935			955			856			3,828			3,137
Gain on sale of securities		0			0			0			7			34
Mortgage servicing		194			128			79			526			205
Other		930			1,055			1,055			4,507			4,670
Total noninterest income		2,368			2,484			2,352			10,133			9,732
Noninterest expense:
Salaries and employee benefits		4,817			4,589			4,481			18,591			16,100
Occupancy and equipment		1,339			1,290			1,244			5,132			4,240
Amortization of intangibles		161			168			168			665			394
FDIC insurance premium		25			24			22			102			84
Other		2,677			2,496			2,405			10,331			9,122
Total noninterest expense		9,019			8,567			8,320			34,821			29,940
Income before federal income taxes		2,972			3,911			4,149			14,610			14,813
Federal income taxes		804			1,194			1,281			4,402			4,703
Net Income	$	2,168		$	2,717		$	2,868		$	10,208		$	10,110
Fully Tax Equivalent Net Interest Income	$	9,971		$	10,354		$	10,427		$	40,699		$	35,898
Per Share Data:
Basic Earnings	$	0.33		$	0.41		$	0.44		$	1.56		$	1.67
Diluted Earnings	$	0.33		$	0.41		$	0.43		$	1.55		$	1.64
Dividends Paid	$	0.214		$	0.214		$	0.200		$	0.852		$	0.789
Performance Ratios:
Return on Average Assets*		0.79	%		0.99	%		1.09	%		0.95	%		1.15	%
Return on Average Equity*		8.9	%		11.2	%		12.2	%		10.7	%		12.8	%
Net Interest Margin (FTE) *		3.98	%		4.15	%		4.34	%		4.13	%		4.40	%
Book Value Per Share+	$	14.77		$	14.70		$	14.20		$	14.77		$	14.20
Average Equity/Average Assets		8.8	%		8.9	%		8.9	%		8.9	%		9.0	%
Net Charge-offs	$	892		$	1,144		$	618		$	2,359		$	1,265
Net Charge-offs as a % of Average Loans^*		0.39	%		0.50	%		0.28	%		0.26	%		0.17	%

* Annualized
+ Period End
^ Total loans less loans held for sale