EXHIBIT 99.1

        PRESS RELEASE OF FIRST FEDERAL OF NORTHERN MICHIGAN BANCORP, INC.




                                                           FOR IMMEDIATE RELEASE
April 1, 2005

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

                FIRST FEDERAL OF NORTHERN MICHIGAN BANCORP, INC.
                          COMPLETES STOCK OFFERING AND
               SECOND-STEP CONVERSION OF ALPENA BANCSHARES, M.H.C.

     Alpena,  Michigan - (April 1, 2005)  First  Federal  of  Northern  Michigan
Bancorp,  Inc. (Nasdaq:  FFNM)(the  "Company") announced today that it completed
its stock  offering in  connection  with the  second-step  conversion  of Alpena
Bancshares, M.H.C. The Company, the successor to Alpena Bancshares, Inc., is the
stock holding company of First Federal of Northern  Michigan,  a federal savings
association.

     In the stock offering,  shares  representing  Alpena  Bancshares,  M.H.C.'s
ownership interest in Alpena Bancshares, Inc. were sold to investors. A total of
1,699,869  shares of common  stock were sold at $10.00 per share.  In  addition,
each  outstanding  share of common  stock of Alpena  Bancshares,  Inc. as of the
close of trading on April 1, 2005 was converted into the right to receive 1.8477
shares of the Company's  common stock.  Holders of stock  certificates of Alpena
Bancshares,  Inc.  will  receive  documentation  to effect  the share  exchange;
stockholders  whose  shares  are held in  street  name  will  have the  exchange
effected  automatically.  Cash will be issued in lieu of fractional  shares at a
rate of $10.00 per share.  The Company also issued 33,997 shares of common stock
and contributed  $339,997 in cash to First Federal Community  Foundation,  a new
charitable foundation established in the conversion.

     As a result of the  transaction,  the Company will have 3,100,191 shares of
common stock issued and outstanding,  subject to adjustment for cash payments in
lieu of fractional shares.

     Shares of the  Company's  common  stock will  trade on the Nasdaq  National
Market under the symbol "FFNM" beginning Monday, April 4, 2005.

     The  subscription  offering  was  managed by Ryan Beck and Co.,  Inc.  Luse
Gorman Pomerenk & Schick P.C. acted as special legal counsel to First Federal of
Northern Michigan Bancorp, Inc. and First Federal of Northern Michigan.


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