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

Article Excerpt
ALPENA, Mich., Aug. 6 /PRNewswire-FirstCall/ -- First Federal of Northern Michigan Bancorp, Inc. (the "Company") reported consolidated net income from continuing operations of $42,000, or $0.01 per basic and diluted share, for the quarter ended June 30, 2009 compared to consolidated net loss from continuing operations of $236,000, or $0.08 per basic and diluted share, for the quarter ended June 30, 2008.

Consolidated net income from continuing operations for the six months ended June 30, 2009 was $189,000, or $0.07 per basic and diluted share, compared to consolidated net loss from continuing operations of $250,000, or $0.09 per basic and diluted share, for the six months ended June 30, 2008.

The three- and six-month results reflected a substantial increase in FDIC insurance premiums, including the FDIC special assessment which was charged to all banks during the second quarter of 2009 and which amounted to $108,000 for the Company.

Michael W. Mahler, President and Chief Executive Officer of the Company, commented, "We are extremely pleased to post a profit again this quarter. Another strong quarter of mortgage banking activities income along with continued improvement in our net interest margin were the primary drivers of our net income for the quarter. While we have continued our efforts to reduce our non-interest expenses, unfortunately, we were required to record in the second quarter the FDIC special assessment of $108,000. We are encouraged by our improving net interest margin along with the results of our steps taken to reduce our level of non-performing assets. Our markets are feeling the strain from the protracted economic downturn in the state of Michigan that began in 2007 and has only deepened further since. In spite of the challenges, the Bank is making progress on reducing its level of non-performing assets, which fell by $1.9 million from December 31, 2008, and by $2.3 million from March 31, 2009, in spite of the fact that a large commercial loan relationship was downgraded to non-performing status during the quarter ended June 30, 2009."

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