First Federal of Northern Michigan Bancorp, Inc.
100 S. Second Ave.
Alpena, MI 49707
(989) 356-9041
December 16, 2008
FOR IMMEDIATE RELEASE
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Contact: Michael W. Mahler,
President & Chief Executive Officer
First Federal of Northern Michigan
Bancorp, Inc.
Tel (989) 356-9041
FIRST FEDERAL OF NORTHERN MICHIGAN BANCORP, INC.
ANNOUNCES SUSPENSION OF QUARTERLY DIVIDEND
ALPENA, Michigan - December 16, 2008 - First Federal of Northern Michigan
Bancorp, Inc. (the "Company") (NASDAQ: FFNM) announced that the Board of
Directors voted to suspend the payment of quarterly cash dividends on the
Company's common stock, effective immediately, due to the impact of continued
weak economic conditions and the uncertainty regarding the timing of a recovery.
Michael W. Mahler, President and CEO, stated "While the suspension of the
dividend was a difficult decision, our Board of Directors believes that it is in
the Company's best interests to preserve capital given recent negative trends in
our operating performance and asset quality, as well as recent deterioration in
economic conditions and financial markets." The Company intends to reassess the
dividend on a quarterly basis, but does not anticipate reinstatement until
operating results and asset quality improve and/or economic conditions and
financial markets stabilize. This decision is expected to preserve approximately
$600,000 in capital on an annualized basis.
The Company is the unitary savings and loan holding company of First
Federal of Northern Michigan, a federal savings bank headquartered in Alpena,
Michigan.
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