-----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, LYk3Xj0RS8zH4Wb85POlAk7Y64UE2gjKdRX6YXdpBAMzm3ZZN0Iox4tjV19YdFLs ELZ6t8fstwiDLxowj/MXbw== 0000943374-08-000958.txt : 20080625 0000943374-08-000958.hdr.sgml : 20080625 20080625160239 ACCESSION NUMBER: 0000943374-08-000958 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20071231 FILED AS OF DATE: 20080625 DATE AS OF CHANGE: 20080625 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 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-31957 FILM NUMBER: 08916772 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 11-K 1 form11k_123107.txt FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996]. For the fiscal year ended December 31, 2007 --------------------------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]. For the transition period from _______________ to ______________________ Commission File Number 000-31957 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: First Federal of Northern Michigan Employees' Savings & Profit Sharing Plan and Trust B: Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: First Federal of Northern Michigan Bancorp, Inc. 100 S. Second Avenue Alpena, Michigan 49707 FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN Financial Statements As of December 31, 2007 and 2006 and for the year Ended December 31, 2007 STRALEY, ILSLEY & LAMP P.C. INDEX Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 1 FINANCIAL STATEMENTS Statements of Net Assets Available for Benefits 2 Statement of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4 SUPPLEMENTAL SCHEDULES Schedule H, Line 4i - Schedule of Assets (Held at End of Year) 11 Schedule H, Line 4j - Schedule of Reportable Transactions 12 SIGNATURE OF PLAN TRUSTEE 13 Note: In accordance with the instructions to Form 11-K, "plans subject to the Employee Retirement Income Security Act of 1974 ("ERISA") may file plan financial statements and schedules prepared in accordance with the financial reporting requirements of ERISA." The First Federal of Northern Michigan Employees' Savings and Profit Sharing Plan ("the Plan") is subject to ERISA. The aforementioned financial statements and schedules of the Plan have been prepared in accordance with such requirements. [Straley, Ilsley & Lamp, P.C. Letterhead] REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Participants, the Executive Committee and the Trustees of First Federal of Northern Michigan Employees' Savings and Profit Sharing Plan Alpena, Michigan We have audited the accompanying statements of net assets available for benefits of the First Federal of Northern Michigan Employees' Savings and Profit Sharing Plan ("the Plan"), as of December 31, 2007 and 2006, and the related statement of changes in net assets available for benefits for the year ended December 31, 2007. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan's internal control over financial reporting. Our audits included consideration of the internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the changes in its net assets available for benefits for the year ended December 31, 2007, in conformity with U.S. generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets (held at end of year) and reportable transactions as of December 31, 2007 are presented for the purpose of additional analysis and are not a required part of the financial statements but are supplementary information as required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the 2007 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 2007 financial statements as a whole. /s/ Straley, Ilsley & Lamp, P.C. June 17, 2008 -1- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN Statements of Net Assets Available For Benefits
December 31, -------------------------------------------- Assets 2007 2006 ------------------- --------------------- Investments, at fair value (Notes 2 and 4) Cash $ 18,859 $ - Pooled separate accounts 1,521,689 1,068,596 Common stock (employer) 321,381 369,538 Common collective trust 253,941 261,981 Participant loans 95,818 93,869 ------------------- --------------------- 2,211,688 1,793,984 Receivables Employer's profit sharing contribution 119,882 124,926 ------------------- --------------------- Total assets 2,331,570 1,918,910 Liabilities - - ------------------- --------------------- Net assets available for benefits at fair value 2,331,570 1,918,910 Adjustments from fair value to contract value for fully benefit-responsive investment contracts (Note 4) 1,649 4,158 ------------------- --------------------- Net assets available for benefits $ 2,333,219 $ 1,923,068 =================== =====================
See accompanying notes to the financial statements -2- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN Statement of Changes in Net Assets Available for Benefits
Additions Year Ended Additions in net assets attributed to: December 31, 2007 ------------------------------------ Investment income: Net appreciation in fair value of investments (Note 3) $ 64,254 Dividend and interest income 17,835 --------------- 82,089 --------------- Contributions: Participants' Salary deferral 244,079 Rollovers 23,104 Employer's Matching 80,633 Profit sharing 119,882 --------------- 467,698 --------------- Total additions 549,787 --------------- Deductions Deductions from net assets attributed to: Benefits paid to participants 123,448 Administration expenses 16,188 --------------- Total deductions 139,636 --------------- Net increase during the year 410,151 Net assets available for benefits Beginning of the year 1,923,068 --------------- End of the year $2,333,219 ===============
-3- See accompanying notes to the financial statements FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- DESCRIPTION OF THE PLAN The following description of the First Federal of Northern Michigan ("the Company") Employees' Savings and Profit Sharing Plan ("the Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General. The Plan Sponsor established the Plan effective July 1, 1996. The Plan has since been amended and was restated effective February 1, 2005 to allow common stock of the Company as an investment option within the plan and to become a single-employer plan. The Plan is a defined contribution plan covering all full-time employees of the Company who have completed six months of eligibility service and are age twenty-one or older. The Plan is subject to the provisions of the Employee Retirement Income and Security Act of 1974 (ERISA). Contributions. Each year, participants may contribute up to 25% of pretax annual compensation, as defined in the Plan. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contributions plans. The Company makes matching contributions in an amount equal to 100% of the employees' elective deferral contributions which are not over 2% of compensation, plus 50% of the employees' elective deferral contributions which are over 2% of compensation but are not over 4% of compensation. Additional profit sharing amounts may be contributed at the option of the Company's Board of Directors and invested in a portfolio of investments as directed by participants. The Company made elective profit sharing contributions of $119,882 and $124,926 for the Plan periods ending December 31, 2007 and 2006, respectively. Participant Accounts. Each participant's account is credited with the participant's contributions and allocations of (a) the Company's matching and profit sharing contributions, and (b) Plan earnings. Allocations are based on participant earnings, contributions or account balances, as defined. The benefit to which a participant is entitled is the aggregate of the participants' deferrals and rollovers and the vested portion of employer contributions. Each participant directs the investment of his or her account to any of the investment options available under the Plan. Vesting. Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company's contribution portion of their accounts is based on years of continuous service. A participant is 100% vested after five years of credited service. Participant Loans. Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of (a) $50,000 or (b) one-half of the participant's vested balance, reduced by any outstanding loan balance. Loan terms range from one to five years or up to ten years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at rates ranging from 5.00% to 9.25%, which are commensurate with local prevailing rates as determined by the Plan administrator. Principal and interest is paid ratably through payroll deductions. Payment of Benefits. Upon termination of service due to retirement, disability or death, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account, or annual installments according to Internal Revenue Code Section 401(a)(9). For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. -4- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 -- DESCRIPTION OF THE PLAN (Continued) Expenses. Plan administration expenses incurred in 2007 were paid by the Plan. Expenses incurred in connection with the purchase or sale of securities are charged against the participants' account that are involved in such transactions. Legal, accounting and certain other administration fees were paid by the Company. NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting. The financial statements of the Plan are prepared under the accrual method of accounting in accordance with U.S. generally accepted accounting principles. Investment Valuation and Recognition. The Plan's investments are stated at fair value. Participation units in pooled separate accounts and a common collective trust are valued at fair value, which represents the estimated fair value of the underlying securities held by the fund. First Federal of Northern Michigan Bancorp, Inc. common stock is traded on a national exchange and is valued at the last sales price on the date of valuation. Participant loans are stated at cost which approximates fair value. Purchases and sale of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Estimates. The preparation of financial statements in conformity with U. S. generally accepted accounting principles requires the Plan administrator to make estimates that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. Forfeited Accounts. Forfeited non-vested account balances are used to either offset Plan administrative expenses or reduce employer matching contributions. Forfeitures of terminated non-vested account balances were $10,431 and $0 for the periods ended December 31, 2007 and 2006, respectively. The 2007 forfeitures plus earnings of $53 were used to offset employer contributions in the amount of $7,500 and to cover plan administrative expenses in the amount of $2,984. Risks and Uncertainties. The Plan invests in pooled separate accounts, a common collective trust and employer common stock. These investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of the investment securities will occur in the near term and that such changes could materially affect participant's account balances and the amounts reported in the statement of net assets available for benefits and participants' individual account balances. Payment of Benefits. Benefits are recorded when paid. New Accounting Pronouncements. In September 2007, the FASB issued Statement on Financial Accounting Standards No. 157 (SFAS 157), Fair Value Measurements. SFAS 157 established a single authoritative definition of fair value, and sets out a framework for measuring fair value and requires additional disclosures about fair value measurement. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Plan management does not believe the adoption of SFAS 157 will have a material impact on the Plan's financial statements. -5- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 3 -- INVESTMENTS The following presents investments that represent five percent or more of the Plan's net assets:
2007 2006 -------------------------- --------------------------- Investment Shares/Units Value Shares/Units Value ---------- ------------ --------- ------------ ----------- Principal International Emerging Markets 3,624 $ 212,614 - $ - Principal Lifetime 2020 Fund 9,574 154,754 - - Principal Disciplined Large Cap Blend Fund 12,631 230,161 11,878 203,891 Principal Mid-Cap Stock Index Fund 6,565 141,316 6,269 126,242 First Federal of Northern Michigan Bancorp, Inc. Stock 42,441 321,381 39,137 369,538 Principal Stable Value Fund 15,468 253,941 16,784 261,981 Principal Large Company Growth Fund 8,379 225,700 7,341 161,896
During 2007, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $ 64,254, as follows: Pooled separate accounts $ 121,055 Common collective trusts 11,016 Common stock (67,817) ------------- $ 64,254 NOTE 4 -- COMMON COLLECTIVE TRUSTS As of December 31, 2006, the Plan adopted Financial Accounting Standards Board (FASB) Staff Position FSP AAG INV-1 and Statement of Financial Position 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP). The FSP defines circumstances in which an investment contract is considered fully benefit-responsive and provides certain reporting and disclosure requirements for fully benefit-responsive investment contracts in defined contribution plans. As described in the FSP, fully benefit-responsive investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts. Contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in an investment contract through participation in the Principal Stable Value Fund, which is a common collective trust fund. As required by the FSP, investments in the accompanying statements of net assets available for benefits presents the fair value of the Principal Stable Value Fund as well as the adjustment of the portion of the Principal Stable Value Fund related to fully benefit-responsive investment contracts from fair value to contract value. -6- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 4 -- COMMON COLLECTIVE TRUSTS (Continued) All investment contracts and fixed income securities held in the common collective trust must satisfy the credit standards of the Principal Financial Group. The fair value of the investment contract at December 31, 2007 and 2006 was $253,941 and $261,981, respectively. The average yield and crediting interest rates were approximately 4.94% and 5.16% for 2007 and 5.30% and 4.72% for 2006. The crediting interest rate is based on a formula agreed upon with the issuer, but may not be less than 0%. Such interest rates are reviewed quarterly. Certain events, such as premature termination of the contract by the Plan or the termination of the Plan, would limit the Plan's ability to transact at contract value. The Plan administrator believes the occurrence of such events that would limit the Plan's ability to transact at contract value with the Plan's participants is not probable. NOTE 5 -- RELATED PARTY TRANSACTIONS Certain Plan investments are managed by The Principal Life Insurance Company, which is a member company of the Principal Financial Group. In addition, trust services are performed by the Principal Trust Company, which is also a member of the Principal Financial Group. Transactions between these companies qualify as party-in-interest transactions. Fees paid by the Plan for professional services amounted to $16,188 and $3,952 for the periods ended December 31, 2007 and 2006, respectively. The 42,441 and 39,137 shares of First Federal of Northern Michigan Bancorp, Inc. common stock held by the Plan as of December 31, 2007 and 2006 represent approximately 1.3% and 1.2% each year, respectively, of the Corporation's outstanding shares as of December 31, 2007 and 2006. Profit sharing contributions of $119,882 and $124,926 were paid to the Plan by First Federal of Northern Michigan Bancorp, Inc. for the periods ended December 31, 2007 and 2006. As of December 31, the Plan held the following party-in-interest investments (at fair value): 2007 2006 --------- --------- First Federal of Northern Michigan Bancorp, Inc. common stock; 42,441 and 39,137 shares in 2007 and 2006, respectively $ 321,381 $ 369,538 Participant loans 95,818 93,869 NOTE 6 -- PLAN TERMINATION Although the Company has not been expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of the Plan termination, participants would become 100% vested in employer contributions allocated to their account. -7- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 7 -- TERMINATED PARTICIPANTS At December 31, 2007 and 2006, there were no participants that elected to withdraw from the Plan and had not been paid prior to the end of the year. NOTE 8 -- TAX STATUS In January, 2001, the Plan received from the Internal Revenue Service (IRS) a favorable determination that the Plan, as amended and restated effective August, 2000, met the requirements of Section 401 of the Code. The Plan has been amended and restated since receiving the determination letter and a new determination letter request will be filed prior to the expiration of the Plan's Remedial Amendment Period on January 31, 2009 under the IRS's new determination letter program. The Company and the plan administrator believe that the Plan is currently designed and operated in material compliance with the applicable requirements of the Internal Revenue Code and that the Plan and related Trust continue to be tax-exempt. The Trust established under the Plan will generally be exempt from federal income taxes under Section 501(a) of the Code; Company contributions paid to the Trust under the Plan will be allowable federal income tax deductions of the Company subject to the conditions and limitations of Section 404 of the Code; and the Plan meets the requirements of Section 401(k) of the Code allowing pretax contributions to be exempt from federal income tax at the time such contributions are made, provided that in operation the Plan and Trust meet the applicable provisions of the Code. Company matching contributions to the Plan on a participant's behalf, the participant's pretax contributions, and the earnings thereon generally are not taxable to the participant until such Company matching contributions, pretax contributions, and earnings from investments are distributed or withdrawn. A loan from a participant's account generally will not represent a taxable distribution if the loan is repaid in a timely manner and does not exceed certain limitations. NOTE 9 -- RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
December 31, 2007 ------------ Net assets available for benefits per the financial statements $2,333,219 Less: adjustment from fair value to contract value for fully benefit-responsive investment contracts (1,649) ---------- Net assets available for benefits per the Form 5500 $2,331,570 ==========
-8- FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 9 -- RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 (Continued) The following is a reconciliation of investment income per the financial statements to the Form 5500:
December 31, 2007 --------- Total investment income per the financial statements $ 82,089 Add: Change in adjustment from fair value to contract value for fully benefit-responsive investment contracts 2,509 --------- Total investment income per the Form 5500 $ 84,598 =========
NOTE 10 -- PLAN AMENDMENTS Effective January 1, 2006, the Plan was amended and restated to reduce the eligibility requirement for participation in the Plan from one year to six months. There were no plan amendments during the 2007 plan year. -9- REQUIRED SUPPLEMENTARY SCHEDULES -10-
FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN EIN 38-3206228, Plan # 003 Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2007 - -------------------------------------------------------------------------------------------------------------------------------- (a) (b) (c) (d) (e) Description of Investment Including Maturity Date, Rate Identity of Issuer, Borrower, of Interest, Collateral, Par or Lessor, or Similar Party Maturity Value Cost Current Value - --------------------------------------------------------------------------------------------------------------------------------- CASH Bankers Trust Interest Bearing Cash - Cash Account # $ 18,859 POOLED SEPARATE ACCOUNTS * Principal Life Insurance Company Principal Bond and Mtg Sep Acct # 30,368 * Principal Life Insurance Company Principal LG Co Growth Sep Acct # 225,700 * Principal Life Insurance Company Principal Lifetm Str Inc Sep Acct # 37 * Principal Life Insurance Company Principal Lifetm 2010 Sep Acct # 30,084 * Principal Life Insurance Company Principal Lifetm 2020 Sep Acct # 154,754 * Principal Life Insurance Company Principal Lifetm 2030 Sep Acct # 39,805 * Principal Life Insurance Company Principal Lifetm 2040 Sep Acct # 56,186 * Principal Life Insurance Company Principal Lifetm 2050 Sep Acct # 3,116 * Principal Life Insurance Company Principal Ptnrs Lg-Cap Value II SA # 55,753 * Principal Life Insurance Company Principal Ptr Md-CP Value I Sep Acct # 67,487 * Principal Life Insurance Company Principal U.S. Property Sep Acct # 106,548 * Principal Life Insurance Company Principal Disc Lg Co Blend Sep Acct # 230,161 * Principal Life Insurance Company Principal Mid Cap Stk Idx Sep Acct # 141,316 * Principal Life Insurance Company Principal Ptnr Md-CP Gr II Sep Acct # 59,114 * Principal Life Insurance Company Principal Ptr Sm-CP Gr II Sep Acct # 41,535 * Principal Life Insurance Company Principal Sm Cap Co Value Sep Acct # 43,015 * Principal Life Insurance Company Principal Sm Cap Stk Idx Sep Acct # 24,096 * Principal Life Insurance Company Principal Intl Em Mkt Sep Acct # 212,614 ---------- 1,521,689 COMMON STOCK * First Federal of Northern Michigan Bancorp, Inc. Employer common stock # 321,381 COMMON COLLECTIVE TRUSTS Union Bond & Trust Company Principal Stable Value Fund # 253,941 PARTICIPANT LOANS * Participant Loans Rates Range From 5.00% to 9.25% # 95,818 ---------- $2,211,688 ==========
* Indicates a party-in-interest to the Plan. # Investments are participant directed, therefore historical cost is not required. -11-
FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN EIN 38-3206228, Plan # 003 Schedule H, Line 4j - Schedule of Reportable Transactions December 31, 2007 - ------------------------------------------------------------------------------------------------------------------------------------ (A) (B) (C) (D) (E) Total Number Total Number Total Value Total Value Net Gain/ Description of Asset of Purchases of Sales of Purchases of Sales Loss - ------------------------------------------------------------------------------------------------------------------------------------ Pooled Separate Accounts Principal Intl EM Mkts Sep Acct 79 $102,680.25 $ - Pooled Separate Accounts Principal Intl EM Mkts Sep Acct 57 $ 22,046.21 $ 5,661.71
-12- SIGNATURE OF PLAN TRUSTEE The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. FIRST FEDERAL OF NORTHERN MICHIGAN EMPLOYEES' SAVINGS & PROFIT SHARING PLAN Date: June 17, 2008 By: /s/ Amy E. Essex Name: Amy Essex Title: Chief Financial Officer, First Federal of Northern Michigan Bancorp, Inc. -----END PRIVACY-ENHANCED MESSAGE-----