EXHIBIT 99

                    PRESS RELEASE OF ALPENA BANCSHARES, INC.


                             Alpena Bancshares, Inc.
                               100 S. Second Ave.
                                Alpena, MI 49707
                                            (989) 356-9041



September 27, 2004

                                                          FOR IMMEDIATE RELEASE
                                Contact:          Martin Thomson, President and
                                                        Chief Executive Officer
                                                        Alpena Bancshares, Inc.
                                                             Tel (989) 356-9041



                      ALPENA BANCSHARES QUARTERLY DIVIDEND


     ALPENA,  Michigan -  September  27,  2004 - Alpena  Bancshares,  Inc.  (the
"Company") announced today a cash dividend on its common stock of $.10 per share
for the quarter  ended  September  30,  2004.  The  dividend  will be payable to
stockholders  of record as of September 30, 2004 and will be paid on October 22,
2004.

     Alpena  Bancshares  MHC,  majority  stockholder of the Company and owner of
920,000 shares of the 1,659,180 total shares outstanding,  announced that it has
waived the right to receive the dividend. Accordingly, the dividend will be paid
on the 739,180 shares owned by minority stockholders of the Company.

     The  Company  is the  unitary  savings  and loan  holding  company of First
Federal of Northern Michigan, a federal savings bank based in Alpena,  Michigan.
The Company's common stock trades under the symbol "ALPN."



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