SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
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, 2008
----------------------------------------------
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 and Profit
Sharing Plan & 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
INDEX
Page
----
REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS 1 - 2
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits 3
Statement of Changes in Net Assets Available for Benefits 4
Notes to Financial Statements 5 - 10
SCHEDULE*
Schedule I - Schedule of Assets Held at End of Year as of December 31, 2008 -
Form 5500, Schedule H, Part IV, line 4i 11
* Other schedules required by 29 CFR 2520.103-10 of the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974, as amended, have been
omitted because they are not applicable.
-1-
Report of Independent Registered Public Accounting Firm
To the Participants and Trustees of
First Federal of Northern Michigan Employees' Savings and Profit Sharing Plan
We have audited the accompanying statement of net assets available for benefits
of First Federal of Northern Michigan Employees' Savings and Profit Sharing Plan
("the Plan") as of December 31, 2008 and the related statement of changes in net
assets available for benefits for the year then ended. 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 audit. The
financial statements of First Federal of Northern Michigan Employees' Savings
and Profit Sharing Plan as of December 31, 2007 were audited by other auditors
whose report dated June 17, 2008, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The Plan is not required
to have, nor have we been engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control
over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purposes 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, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the 2008 financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan as
of December 31, 2008 and the changes in net assets available for benefits for
the year then ended, in conformity with accounting principles generally accepted
in the United States of America.
Our audit was performed for the purpose of forming an opinion on the financial
statements taken as a whole. The supplemental schedule of assets held at end of
year is presented for the purpose of additional analysis and is not a required
part of the basic financial statements but is supplementary information 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
schedule is the responsibility of the Plan's management. The supplemental
schedule has been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ Plante & Moran, PLLC
Auburn Hills, Michigan
June 29, 2009
-2-
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. 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 audit.
We conducted our audit 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 audit
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 audit provides 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, in conformity with U.S. generally accepted accounting
principles.
/s/ Straley, Ilsley & Lamp P.C.
June 17, 2008
-3-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
Statements of Net Assets Available For Benefits
--------------------------------------------------------------------------------
December 31,
-----------------------------------
Assets 2008 2007
----------------- -----------------
Participant directed investments, at fair value (Notes 2, 3 and 8)
Cash $ 3,854 $ 18,859
Pooled separate accounts 1,082,963 1,521,689
Common stock (First Federal of Northern Michigan Bancorp, Inc.) 75,275 321,381
Common collective trust 263,975 253,941
Participant loans 181,405 95,818
----------------- -----------------
Total investments, at fair value 1,607,472 2,211,688
Receivables:
Employer's profit sharing contribution 60,323 119,882
----------------- -----------------
Total assets 1,667,795 2,331,570
Liabilities 154 -
----------------- -----------------
Net assets available for benefits, at fair value 1,667,641 2,331,570
Adjustment from fair value to contract value for common collective trust
that invests in fully benefit-responsive investment contracts 12,928 1,649
----------------- -----------------
Net assets available for benefits $ 1,680,569 $ 2,333,219
================= =================
The accompanying notes are an integral part of the financial statements.
-4-
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, 2008
-------------------------------------------------
Investment income:
Net depreciation in fair value of investments (Note 3) $ (912,139)
Dividend and interest income 23,309
------------------
(888,830)
------------------
Contributions:
Participants'
Salary deferral 214,949
Rollovers 14,585
Employer's
Matching 79,623
Profit sharing 60,323
------------------
Total contributions 369,480
------------------
Total additions, net of investment losses (519,350)
------------------
Deductions
Deductions from net assets attributed to:
Benefits paid to participants 117,534
Administration expenses 15,766
------------------
Total deductions 133,300
------------------
Net decrease (652,650)
Net assets available for benefits
Beginning of the year 2,333,219
------------------
End of the year $ 1,680,569
==================
The accompanying notes are an integral part of the financial statements.
-5-
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 February 1, 2005.
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 Security Act of 1974 (ERISA).
Contributions. Participating employees may make contributions on a deferred
salary arrangement (pretax contributions), under Section 401(k) of the
Internal Revenue Code (the "IRC"), in an amount up to 25% of pretax annual
compensation, as defined in the Plan. However, the IRC places annual limits
on employee contributions to the Plan; the 2008 and 2007 limits were
$15,500 per participant. Participants may also make rollover contributions
from conduit Individual Retirement Accounts or other tax-qualified
retirement plans. Additionally, participants age 50 and older may make
annual pretax catch-up contributions up to the annual limit established by
the IRC; the limit was $5,000 per qualifying employee for 2008 and 2007.
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.
Effective in January, 2009, the Company temporarily suspended its matching
contributions to preserve liquidity as a result of the global credit crisis
and its impact on the Company's operations and cash flow. 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
$60,323 for the Plan year ended December 31, 2008.
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 matching contribution
portion of their accounts is based on years of continuous service. A
participant is 100% vested after five years of credited service.
Participants are immediately vested in any profit sharing contributions.
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. Loans are generally repaid through periodic payroll withholdings,
are secured by the participant's account balance and bear interest at rates
based on the general prime rate plus a percentage determined by the Plan
administrator. If a participant fails to make a scheduled repayment, the
loan will be considered in default after a certain period of time as
specified in the Plan document and the participant will be deemed to have
received a taxable distribution from the Plan.
-6-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 -- DESCRIPTION OF THE PLAN (Continued)
Payment of Benefits. Upon termination of service, whether 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.
Expenses. Expenses of administering the Plan, including the expenses of the
Committee and the fees and expenses of the Trustee, are generally borne by
the Company (see Note 5). However, brokerage and loan fees, transfer or
other taxes, and certain other administrative expenses are charged against
the respective fund and participant accounts and are included in the
Statement of Changes in Net Assets Available for Benefits as administrative
and other expenses. .
NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting and Estimates. The accompanying financial statements of
the Plan are prepared on the accrual basis of accounting. The preparation
of the financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities and changes therein and disclosure of contingent assets and
liabilities during the reporting period. Actual results could differ from
those estimates.
Investment Valuation and Recognition. The Plan's investments are stated at
fair value, except for its stable value common collective trust fund
(Principal Stable Value Fund), which is stated at contract value. Contract
value represents investments at cost plus accrued interest income less
amounts withdrawn to pay benefits. The fair value of the stable value
common collective trust fund is based on discounting the related cash flows
of the underlying guaranteed investment contracts based on current yields
of similar instruments with comparable durations. The fair value of the
remaining pooled separate accounts is based on the quoted market values of
the underlying investments.
Fair values of Plan investments are based on quoted market prices. The
participant loans and interest-bearing cash accounts are valued at their
outstanding balances, which approximates fair value.
The Financial Accounting Standards Board Staff Position AAG INV-1 and SOP
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, requires the
statement of net assets available for benefits to present the fair value of
the investment contracts as well as the adjustment of the fully
benefit-responsive investment contracts from fair value to contract value.
The related activity is presented at contract value in the statement of
changes in net assets available for benefits.
-7-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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
$3,883 and $10,431 as of December 31, 2008 and 2007, respectively.
The 2008 forfeitures were used to offset employer contributions
and to cover plan administrative expenses.
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. Benefit payments are recorded when paid.
NOTE 3 -- INVESTMENTS
Investments that represent five percent or more of the Plan's net assets:
Value at December 31,
Investment 2008 2007
---------- ----------------- ---------------
Principal US Property Sep Account $ 125,883 $ -
Principal International Emerging Markets 97,445 212,614
Principal Large Company Growth Fund 131,478 225,700
Principal Lifetime 2020 Fund 119,777 154,754
Principal Disciplined Large Cap Blend Fund 142,787 230,161
Principal Mid-Cap Stock Index Fund 85,491 141,316
Principal Stable Value Fund 263,975 255,590
First Federal of Northern Michigan Bancorp, Inc. Stock 75,275 340,240
During 2008, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) depreciated
in value by $912,139, as follows:
Pooled separate accounts $ (617,354)
Common stock (294,785)
------------
$ (912,139)
-8-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 4 -PARTY-IN-INTEREST TRANSACTIONS
Various administrative expenses of the Plan are borne by the Plan Sponsor.
Such amounts were approximately $16,188 for the year ended December 31,
2008. In addition, the Plan invests in funds managed by affiliates of the
Delaware Charter Guarantee & Trust Company d/b/a Principal Trust Company
(the "Trustee") and allows for investment in shares of the Company's common
stock. These transactions with the Trustee of the Plan and the Plan Sponsor
qualify as party-in-interest transactions.
NOTE 5 -- PLAN TERMINATION
Although the Company has not expressed any intent to do so, the Plan may be
terminated, in whole or in part, at any time, but only upon the condition
that such action precludes any part of the assets of the Plan from being
used for or diverted to purposes other than for the exclusive benefit of
the participants and their beneficiaries and for the payment of expenses of
the Plan. Upon termination or partial termination of the Plan or upon the
complete discontinuance of contributions under the Plan, employer matching
and profit sharing contributions shall become 100% vested and the assets
of the Plan shall be distributed to the participants and their
beneficiaries at such time and in such nondiscriminatory manner as
determined by the Committee.
NOTE 6 -- TAX STATUS OF THE PLAN
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 has been filed 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.
Participants are not taxed, either on Company contributions to the Plan or
on the earnings thereon, including appreciation, allocated to their
accounts until actual distribution of such accounts. At that time, the
participant is generally taxed on the total amount of the distribution.
-9-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 7 -- 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,
2008 2007
----------------- -----------------
Net assets available for benefits per the financial statements $1,680,569 $2,333,219
Less: adjustment from fair value to contract value for fully
benefit-responsive investment contracts (12,928) (1,649)
----------------- -----------------
Net assets available for benefits per the Form 5500 $1,667,641 $2,331,570
================= =================
The following is a reconciliation of investment income per the financial
statements to the Form 5500:
December 31,
2008
------------
Total investment loss per the financial statements $ (888,830)
Add: Change in adjustment from fair value to contract value for fully
benefit-responsive investment contracts (11,279)
------------
Total investment loss per the Form 5500 $ (900,109)
============
NOTE 8 - FAIR VALUE MEASUREMENTS
In September 2006, the Financial Accounting Standards Board issued
Financial Accounting Standard Number 157 ("SFAS 157"), Fair Value
Measurements, which defines fair value, establishes a framework for
measuring fair value and enhances disclosure about fair value measurements.
SFAS 157 is effective for financial assets and financial liabilities for
fiscal years beginning after November 15, 2007. Where the measurement
objective specifically requires the use of "fair value", the Plan has
adopted the provisions of SFAS 157 related to financial assets and
financial liabilities as of January 1, 2008.
SFAS 157 clarifies that fair value is an exit price, representing the
amount that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants. As such,
fair value is a market-based measurement that should be determined based
upon assumptions that market participants would use in pricing an asset or
liability. As a basis for considering such assumptions, SFAS 157
establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets;
Level 2: Inputs, other than quoted prices in active markets, that are
observable either directly or indirectly; and
Level 3: Unobservable inputs in which there is little or no market
data, which require the reporting entity to develop its own assumptions.
-10-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 8 - FAIR VALUE MEASUREMENTS (Continued)
Assets and liabilities measured at fair value are based on one or more of
the following three valuation techniques noted in SFAS 157:
(A) Market approach: Prices and other relevant information generated by
market transactions involving identical or comparable assets or
liabilities;
(B) Cost approach: Amount that would be required to replace the service
capacity of an asset (replacement cost); and
(C) Income approach: Techniques to convert future amounts to a single
present amount based upon market expectations (including present value
techniques, option-pricing and excess earnings models).
The following table represents the balances of the Plan's financial assets
that were measured at fair value on a recurring basis as of December 31,
2008:
Valuation
Description Amount Input Level Technique
------------------------------------------------------------ ----------------- ------------- --------------
(In thousands)
First Federal of Northern Michigan common stock 75,275 Level 1 A
Pooled Separate Accounts 1,082,963 Level 2 A
Cash 3,854 Level 2 A
Principal Stable Value Fund 263,975 Level 3 B & C
Participants' loans 181,405 Level 3 B & C
The table below presents additional information about Level 3 assets
measured at fair value on a recurring basis as of December 31, 2008. Both
observable and unobservable inputs may be used to determine the fair value
of positions that the Plan has classified within the Level 3 category.
Reconciliation of all assets measured at fair value on a recurring basis
using significant unobservable inputs (Level 3) for the year ended December
31, 2008:
Changes in Level 3 Assets Measured at Fair Value for the Year Ended December 31,
2008
Principal Stable Loans to
Value Fund Participants
Balance - December 31, 2007 $ 253,941 $ 95,818
Realized Gains (Losses) - -
Unrealized Gains (Losses) (11,279) -
Purchases, sales, issuances,
settlements - Net 21,313 85,587
Net transfers in/out Level 3 - -
-------------------- -----------------
Balance - December 31, 2008 $ 263,975 $ 181,405
==================== ==================
-11-
FIRST FEDERAL OF NORTHERN MICHIGAN
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN
EIN 38-3206228, Plan # 003
Schedule I - Schedule of Assets Held at End of Year
Form 5500 Schedule H, Part IV Line 4:
December 31, 2008
--------------------------------------------------------------------------------
(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 Matury Value Cost Current Value
----------------------------------------- ------------------------------------ ------- ------------------
CASH
The Principal Interest Bearing Cash - Cash Account $ 3,854
POOLED SEPARATE ACCOUNTS
* Principal Life Insurance Company Principal Bond and Mortgage Separate Account # $ 33,457
* Principal Life Insurance Company Principal Disciplined Large-Cap Blend Separate Account # 142,787
* Principal Life Insurance Company Principal Lifetime Str Inc Separate Account Acct # 140
* Principal Life Insurance Company Principal Lifetime 2010 Separate Account # 31,771
* Principal Life Insurance Company Principal Lifetime 2020 Separate Account # 119,777
* Principal Life Insurance Company Principal Lifetime 2030 Separate Account # 33,290
* Principal Life Insurance Company Principal Lifetime 2040 Separate Account # 47,010
* Principal Life Insurance Company Principal Lifetime 2050 Separate Account # 8,502
* Principal Life Insurance Company Principal Partner Large-Cap Value II Separate Account # 34,301
* Principal Life Insurance Company Principal Partner Mid-Cap Value I Separate Account # 34,179
* Principal Life Insurance Company Principal U.S. Property Separate Account # 125,883
* Principal Life Insurance Company Principal Large-Cap Growth Separate Account # 131,478
* Principal Life Insurance Company Principal Mid-Cap Stock Index Separate Account # 85,491
* Principal Life Insurance Company Principal Partner Mid-Cap Growth II Separate Account # 47,296
* Principal Life Insurance Company Principal Partner Small-Cap Growth II Separate Account # 30,516
* Principal Life Insurance Company Principal Small-Cap Value Separate Account # 41,237
* Principal Life Insurance Company Principal Small-Cap Stock Index Separate Account # 15,441
* Principal Life Insurance Company Principal International Emerging Markets Separate Account # 97,445
* Principal Life Insurance Company Principal Diversified International Separate Account # 22,962
COMMON STOCK
* First Federal of Northern Michigan Employer common stock # 75,275
Bancorp, Inc.
COMMON COLLECTIVE TRUSTS
Union Bond and Trust Company Principal Stable Value Fund # 263,975
PARTICIPANT LOANS
* Plan Participants Loans to participants, interest $ 0 181,405
rates ranging from 6.00% to 9.25% ----------------
$ 1,607,472
================
* Indicates a party-in-interest to the Plan.
# Cost information not required
SIGNATURES
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 29, 2009 By: /s/ Amy Essex
-----------------------------------
Name: Amy Essex
Title: Chief Financial Officer,
First Federal of Northern
Michigan Bancorp, Inc.