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First Federal of Northern Michigan Bancorp, Inc. Announces First Quarter 2009 Earnings.

Article Excerpt
ALPENA, Mich., May 1 /PRNewswire-FirstCall/ -- First Federal of Northern Michigan Bancorp, Inc. (the "Company") reported consolidated net income from continuing operations of $146,500, or $0.05 per basic and diluted share, for the quarter ended March 31, 2009, compared to a consolidated net loss from continuing operations of $14,000, or $0.00 per basic and diluted share, for the quarter ended March 31, 2008.

The major factor for the improved earnings in the current year quarter was mortgage banking activities income of $449,000 as compared to $105,000 for the same quarter in 2008.

Michael W. Mahler, President and Chief Executive Officer of the Company, commented, "We were encouraged this quarter by the high level of mortgage refinance activity. Most of the refinanced loans were sold into the secondary market and we recorded gain and fee income. This activity, although slowed somewhat, continues to be relatively strong as we head into the second quarter of 2009. We continued to experience credit quality issues in the quarter, resulting in a $264,000 provision for loan losses. However, we seem to be turning the corner with many of our troubled commercial credits. We will continue to monitor these loans closely. We were able to reduce our non-interest expense quarter over quarter due to the sale of our insurance subsidiary, the InsuranCenter of Alpena, and other cost-cutting measures we put in place at the end of 2008. As we sold the InsuranCenter at the end of February 2009, we expect an even greater reduction in non-interest expense for the quarter ended June 30, 2009 as compared to the quarter ended June 30, 2008."...