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.