-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CJui7JoG76CK6T0CY2HSppQVM3UNGK1qrF8Mkqt27XVCPulcSoZP1t5e3VzbumJW YZTRmjS1DKNRpyE+5W/rDQ== 0000943374-06-000327.txt : 20060221 0000943374-06-000327.hdr.sgml : 20060220 20060221172308 ACCESSION NUMBER: 0000943374-06-000327 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060221 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060221 DATE AS OF CHANGE: 20060221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: First Federal of Northern Michigan Bancorp, Inc. CENTRAL INDEX KEY: 0001128227 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 383567362 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-31957 FILM NUMBER: 06634025 BUSINESS ADDRESS: STREET 1: 100 SOUTH SECOND AVENUE CITY: ALPNEA STATE: MI ZIP: 49707 BUSINESS PHONE: (989) 356-9041 MAIL ADDRESS: STREET 1: 100 SOUTH SECOND AVENUE CITY: ALPENA STATE: MI ZIP: 49707 FORMER COMPANY: FORMER CONFORMED NAME: ALPENA BANCSHARES INC DATE OF NAME CHANGE: 20001114 8-K 1 form8k_earnings-022106.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 20, 2006 First Federal of Northern Michigan Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 0-31957 32-0135202 - ---------------------------- ----------------------- ------------------- (State or other jurisdiction (Commission File No.) (IRS Employer of incorporation) Identification No.) 100 S. Second Ave., Alpena, Michigan 49707 - ------------------------------------ ------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (989) 356-9041 Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. On February 20, 2006, First Federal of Northern Michigan Bancorp, Inc. reported earnings for the quarter and year ended December 31, 2005. A press release dated February 20, 2006, giving details associated with the company's earnings is attached as Exhibit 99.1 to this report. The information included in Exhibit 99.1 is considered to be "furnished" under the Securities Exchange Act of 1934. Item 9.01. Financial Statements and Exhibits. (a) Financial Statements of Businesses Acquired. Not Applicable. (b) Pro Forma Financial Information. Not Applicable. (c) Shell Company Transactions. Not Applicable. (d) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release dated February 20, 2006 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. FIRST FEDERAL OF NORTHERN MICHIGAN BANCORP, INC. DATE: February 21, 2006 By: /s/ Michael W. Mahler ----------------------------------- Michael W. Mahler President and Chief Operating Officer EXHIBIT 99.1 PRESS RELEASE EX-99.1 2 form8k_pr-022106.txt PRESS RELEASE FOR IMMEDIATE RELEASE February 20, 2006 Contact: Martin A. Thomson Chief Executive Officer First Federal of Northern Michigan Bancorp, Inc. (989) 356-9041 First Federal of Northern Michigan Bancorp, Inc. Fourth Quarter 2005 Earnings ALPENA, Mich., Feb. 20 -- First Federal of Northern Michigan Bancorp, Inc. (Nasdaq: FFNM) (the "Company") reported consolidated net earnings of $237,000, or $.08 per share, for the quarter ended December 31, 2005, compared to net earnings of $72,000, or $.02 per share, for the quarter ended December 31, 2004. Earnings-per-share was calculated based on weighted average outstanding shares of 3,112,414 and 3,065,667 for the periods ended December 31, 2005 and 2004, respectively. The number of shares outstanding for the period ended December 31, 2004 for purposes of calculating per share earnings has been adjusted to give retroactive recognition to the exchange ratio applied in the Company's stock offering and related second-step conversion, which closed on April 1, 2005. Interest income increased to $3.9 million for the three months ended December 31, 2005 from $3.5 million for the same period ended December 31, 2004. The increase in interest income was due primarily to an increase in average balances of non-mortgage loans of $17.0 million from December 31, 2004 to December 31, 2005, reflecting the Company's continued emphasis on commercial lending, and an increase in yield on adjustable rate loans over the same period, reflecting higher market interest rates. Interest expense increased to $1.8 million for the three months ended December 31, 2005 from $1.6 million for the three months ended December 31, 2004. This increase was due primarily to an increase in average interest- bearing deposits of $17.1 million from December 31, 2004 to December 31, 2005, as well as an increase of 18 basis points in the costs of those funds, reflecting continued increasing upward market pressure on deposit rates. Stockholders' equity increased to $36.6 million at December 31, 2005 from $ 21.8 million at December 31, 2004, reflecting mainly the completion in the quarter ended June 30, 2005 of the Company's second-step stock conversion, which raised $16.0 million in new capital, net of related costs. The decrease in equity of $100,000 in the quarter ended December 31, 2005 was the result of net income of $237,000, offset by a dividend declaration of $156,000 and loss in value of available-for-sale securities of $172,000. The loss in value of these securities was due to changes in interest rates and was not considered by management to be other than temporary. Total assets of the Company at December 31, 2005 were $282.8 million, an increase of $20.0 million, or 8.0%, over assets of $262.8 million at December 31, 2004. The asset quality of the Company remained strong, with reserves allocated in an amount the Company believes to be adequate to absorb probable losses. The ratio of total nonperforming assets to total assets was 1.57% at December 31, 2005 compared to 0.66% at December 31, 2004. Safe Harbor Statement This news release and other releases and reports issued by the Company, including reports to the Securities and Exchange Commission, may contain " forward-looking statements." The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company is including this statement for purposes of taking advantage of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. First Federal of Northern Michigan Bancorp, Inc. and Subsidiaries Consolidated Statement of Financial Condition
December 31, 2005 December 31, 2004 (Unaudited) ASSETS Cash and cash equivalents: Cash on hand and due from banks $4,497,629 $4,685,913 Overnight deposits with FHLB 281,565 52,646 Total cash and cash equivalents 4,779,194 4,738,559 Securities AFS 53,411,609 40,233,035 Securities HTM 1,775,000 1,800,000 Loans held for sale - 1,095,660 Loans receivable, net of allowance for loan losses of $1,415,764 and $1,213,938 as of December 31, 2005 and December 31, 2004, respectively 201,183,076 195,387,937 Foreclosed real estate and other repossessed assets 434,823 28,907 Real estate held for investment 352,136 562,758 Federal Home Loan Bank stock, at cost 4,765,000 4,666,100 Premises and equipment 7,392,207 6,793,998 Accrued interest receivable 1,601,691 1,034,695 Intangible assets 3,088,986 2,855,568 Goodwill 1,349,854 1,049,854 Other assets 2,641,195 2,553,063 Total assets $282,774,771 $262,800,134 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $188,734,743 $182,489,148 Advances from borrowers for taxes and insurance 27,709 44,590 Federal Home Loan Bank advances & Note Payable 54,405,314 56,001,396 Accrued expenses and other liabilities 3,015,653 2,488,711 Total liabilities 246,183,419 241,023,845 Commitments and contingencies - - Stockholders' equity: Common stock ($0.01 par value 20,000,000 shares authorized and $1.00 par value 20,000,000 authorized, respectively; 3,111,176 and 1,659,480 shares issued and outstanding, respectively). 31,155 1,659,480 Additional paid-in capital 23,502,228 5,356,782 Retained earnings, restricted - 5,152,000 Retained earnings 14,703,130 9,635,580 Unallocated ESOP (1,186,940) - Accumulated other comprehensive loss (458,221) (27,553) Total stockholders' equity 36,591,352 21,776,289 Total liabilities and stockholders' equity $282,774,771 $262,800,134
First Federal of Northern Michigan Bancorp, Inc. and Subsidiaries Consolidated Statement of Income
For the Three Months For the Twelve Months Ended December 31, Ended December 31, 2005 2004 2005 2004 (Unaudited) (Unaudited) Interest income: Interest and fees on loans $3,402,555 $3,066,071 $13,149,753 $11,513,400 Interest and dividends on investments 488,357 345,377 1,678,220 1,530,336 Interest on mortgage- backed securities 58,372 68,611 248,278 234,706 Total interest income 3,949,284 3,480,059 15,076,251 13,278,442 Interest expense: Interest on deposits 1,203,962 995,960 4,338,631 3,616,443 Interest on borrowings 576,642 634,975 2,367,518 2,585,862 Total interest expense 1,780,604 1,630,935 6,706,149 6,202,305 Net interest income 2,168,680 1,849,124 8,370,102 7,076,137 Provision for loan losses 102,000 109,143 368,058 322,743 Net interest income after provision for loan losses 2,066,680 1,739,981 8,002,044 6,753,394 Non Interest income: Service charges and other fees 282,596 262,974 1,030,159 1,011,632 Mortgage banking activities 98,395 118,872 481,893 579,563 Gain on sale of available- for-sale investments - - 13,128 102,637 Net gain on sale of premises and equipment, real estate owned and other repossessed assets (18,252) (27,435) (44,863) (47,134) Other 6,691 24,188 37,403 97,464 Insurance & Brokerage Commissions 735,117 733,580 2,940,641 2,967,187 Total other income 1,104,547 1,112,179 4,458,361 4,711,349 Non interest expenses: Compensation and employee benefits 1,609,622 1,568,498 6,315,060 6,028,645 SAIF Insurance Premiums 6,170 6,134 24,980 26,714 Advertising 63,274 62,282 196,693 239,667 Occupancy 340,370 297,320 1,307,862 1,264,188 Amortization of intangible assets 94,529 63,027 330,564 293,136 Service Bureau Charges 87,879 88,180 349,943 338,515 Insurance & Brokerage Commission Expense 280,817 293,535 1,169,281 1,263,824 Professional Services 52,400 46,184 233,161 201,611 Donation to First Federal Community Foundation - - 679,940 - Other 299,080 318,391 1,207,936 1,200,800 Other expenses 2,834,141 2,743,551 11,815,420 10,857,100 Income before income tax expense 337,086 108,609 644,985 607,643 Income tax 100,266 36,493 203,116 203,553 Net income $236,820 $72,116 $441,869 $404,090 Per share data: Basic earnings per share $0.08 $0.02 $0.14 $0.13 Weighted average number of shares outstanding 3,112,414 3,065,667 3,094,960 3,065,129 Diluted earnings per share $0.08 $0.02 $0.14 $0.13 Weighted average number of shares outstanding, including dilutive stock options 3,116,537 3,087,906 3,104,690 3,088,735 Dividends per common share $0.050 $0.054 $0.204 $0.203
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