First Federal Of Northern Michigan Bancorp, Inc. Announces Execution Of Branch Sale Agreement

ALPENA, Mich., Oct. 10, 2017 /PRNewswire/ -- First Federal of Northern Michigan Bancorp, Inc. (OTCQX: FFNM) ("First Federal Bancorp"), the parent company of First Federal of Northern Michigan ("First Federal Bank"), has agreed to sell deposits and certain loans associated with their Branch in Oscoda, Michigan to Huron Community Bank, effectively exiting that market. The decision to sell and exit the Oscoda market was related to management's ongoing focus toward enhancing the efficiencies of its branch network.

The transaction, which is subject to the receipt of all applicable federal and state regulatory approvals, will include the transfer of an estimated $10.9 million of deposits and $1.5 million of loans to Huron Community Bank.  First Federal Bank's branch office at 201 N. State Street in Oscoda will be closed as part of the transaction, and Huron Community Bank will continue serving those customers at its existing full service Oscoda branch office. Once the transaction is complete First Federal Bank will have seven branches in Northern Michigan.

Michael W. Mahler, Chief Executive Officer of First Federal Bancorp, commented "As the banking landscape has been changing over the years, we regularly review our branch network to ensure our operations are as efficient as possible. The sale of the Branch supports our strategy to invest in enhancements to customer experience and shareholder value."

Jeff Loomis, President & Chief Executive Officer of Huron Community Bank states that this transaction facilitates our continued growth strategy and solidifies the Huron Community Bank brand in the market.

East Tawas based Huron Community Bank has seven branches in Michigan, including one in Oscoda which will serve the customers acquired from First Federal Bank.

Safe Harbor Statement

This news release and other releases and reports issued by the Company 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.

SOURCE First Federal of Northern Michigan Bancorp, Inc.