First Federal of Northern Michigan Banco (FFNM, Financial) filed Quarterly Report for the period ended 2010-06-30.
First Federal Of Northern Michigan Banco has a market cap of $7.84 million; its shares were traded at around $2.72 with and P/S ratio of 0.52.
Total assets decreased by $6.6 million, or 2.8%, from $233.5 million as of December 31, 2009 to $227.0 million as of June 30, 2010. Cash and cash equivalents increased by $2.3 million while investment securities available for sale increased by $558,000, investment securities held to maturity decreased by $1.4 million and net loans receivable decreased $7.6 million during this time period. Total deposits decreased $273,000 from December 31, 2009 to June 30, 2010, Federal Home Loan Bank advances decreased by $6.4 million, notes payable decreased $631,000 and equity increased by $448,000.
ASSETS: Total assets decreased $6.6 million, or 2.8%, to $226.9 million at June 30, 2010 from $233.5 million at December 31, 2009. Investment securities available for sale increased $558,000, or 1.7%, and investment securities held to maturity decreased by $1.4 million, or 34.5%, from December 31, 2009 to June 30, 2010 as we restructured our securities portfolio to reduce credit risk and improve our risk-weighted capital ratios. Net loans receivable decreased $7.6 million, or 4.4% to $163.6 million at June 30, 2010 from $171.2 million at December 31, 2009. The decrease in net loans was attributable primarily to shrinkage in each of our loan portfolios: the residential mortgage loan portfolio shrunk by $4.3 million due to portfolio mortgage refinances which were sold into the secondary market wherever possible due to continued historically low market interest rates; the commercial loan portfolio shrunk by $2.6 million due to loan pay-offs and charge-offs; and our consumer loan portfolio decreased $1.3 million due to slowed origination activity related to declining property values.
LIABILITIES: Deposits decreased only slightly by $273,000 to $157.8 million at June 30, 2010 from $158.1 million at December 31, 2009. However, the composition of our deposits changed during the six-month period. Our liquid certificate of deposit product (from which customers can make a penalty-free withdrawal with seven days advance written notice) decreased by $8.3 million as we were not the market leader in rates on this product during this time period. The decrease in our liquid certificate of deposit products was partially offset by increases of $2.4 million in traditional certificate of deposit accounts (which cannot be redeemed before maturity without penalty), $4.6 million in money market accounts, $200,000 in non-interest bearing demand deposit accounts and $834,000 in savings deposit accounts. Total FHLB advances decreased $6.4 million to $38.0 million at June 30, 2010 from $44.4 million at December 31, 2009 as we paid down advances primarily with funds from loan payments and loan payoffs. Also, during the six-month period ended June 30, 2010 we paid off the note payable due to the former owners of the InsuranCenter in the amount of $631,000.
Net Interest Income: Net interest income increased to $2.0 million for the three-month period ended June 30, 2010 from $1.9 million for the same period in 2009. For the three months ended June 30, 2010, average interest-earning assets decreased $15.5 million, or 6.8% when compared to the same period in 2009. Average interest-bearing liabilities decreased $7.0 million, or 3.5%, to $191.8 million for the quarter ended June 30, 2010 from $198.8 million for the quarter ended June 30, 2009. The yield on average interest-earning assets decreased to 5.43% for the three-month period ended June 30, 2010 from 5.62% for the same period ended in 2009 and the cost of average interest-bearing liabilities decreased to 1.88% from 2.64% for the three-month periods ended June 30, 2010 and 2009, respectively. The net interest margin increased to 3.73% for the three-month period ended June 30, 2010 from 3.32% for same period in 2009.
Interest Income: Interest income decreased by $710,000 to $5.8 million for the six-month period ended June 30, 2010 from $6.5 million for the same period in 2009. This decrease was primarily attributed to a decline in the average balance of interest earning assets of $16.3 million to $214.2 million for the six-month period ended June 30, 2010 from $230.6 million for the six-month period ended June 30, 2009. In addition, we experienced a decrease in the yield on our interest earning assets of 24 basis points period over period due mainly to lower market interest rates period over period.
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First Federal Of Northern Michigan Banco has a market cap of $7.84 million; its shares were traded at around $2.72 with and P/S ratio of 0.52.
Highlight of Business Operations:
For the quarter ended June 30, 2010, the Company reported net income from continuing operations of $319,000, or $0.11 per basic and diluted share, compared to $42,000, or $0.01 per basic and diluted share, for the year earlier period, an increase of $277,000. Net income from continuing operations increased by $333,000 to $522,000, or $0.18 per share, for the six months ended June 30, 2010 from $189,000, or $0.07 per share, for the same period ended June 30, 2009.Total assets decreased by $6.6 million, or 2.8%, from $233.5 million as of December 31, 2009 to $227.0 million as of June 30, 2010. Cash and cash equivalents increased by $2.3 million while investment securities available for sale increased by $558,000, investment securities held to maturity decreased by $1.4 million and net loans receivable decreased $7.6 million during this time period. Total deposits decreased $273,000 from December 31, 2009 to June 30, 2010, Federal Home Loan Bank advances decreased by $6.4 million, notes payable decreased $631,000 and equity increased by $448,000.
ASSETS: Total assets decreased $6.6 million, or 2.8%, to $226.9 million at June 30, 2010 from $233.5 million at December 31, 2009. Investment securities available for sale increased $558,000, or 1.7%, and investment securities held to maturity decreased by $1.4 million, or 34.5%, from December 31, 2009 to June 30, 2010 as we restructured our securities portfolio to reduce credit risk and improve our risk-weighted capital ratios. Net loans receivable decreased $7.6 million, or 4.4% to $163.6 million at June 30, 2010 from $171.2 million at December 31, 2009. The decrease in net loans was attributable primarily to shrinkage in each of our loan portfolios: the residential mortgage loan portfolio shrunk by $4.3 million due to portfolio mortgage refinances which were sold into the secondary market wherever possible due to continued historically low market interest rates; the commercial loan portfolio shrunk by $2.6 million due to loan pay-offs and charge-offs; and our consumer loan portfolio decreased $1.3 million due to slowed origination activity related to declining property values.
LIABILITIES: Deposits decreased only slightly by $273,000 to $157.8 million at June 30, 2010 from $158.1 million at December 31, 2009. However, the composition of our deposits changed during the six-month period. Our liquid certificate of deposit product (from which customers can make a penalty-free withdrawal with seven days advance written notice) decreased by $8.3 million as we were not the market leader in rates on this product during this time period. The decrease in our liquid certificate of deposit products was partially offset by increases of $2.4 million in traditional certificate of deposit accounts (which cannot be redeemed before maturity without penalty), $4.6 million in money market accounts, $200,000 in non-interest bearing demand deposit accounts and $834,000 in savings deposit accounts. Total FHLB advances decreased $6.4 million to $38.0 million at June 30, 2010 from $44.4 million at December 31, 2009 as we paid down advances primarily with funds from loan payments and loan payoffs. Also, during the six-month period ended June 30, 2010 we paid off the note payable due to the former owners of the InsuranCenter in the amount of $631,000.
Net Interest Income: Net interest income increased to $2.0 million for the three-month period ended June 30, 2010 from $1.9 million for the same period in 2009. For the three months ended June 30, 2010, average interest-earning assets decreased $15.5 million, or 6.8% when compared to the same period in 2009. Average interest-bearing liabilities decreased $7.0 million, or 3.5%, to $191.8 million for the quarter ended June 30, 2010 from $198.8 million for the quarter ended June 30, 2009. The yield on average interest-earning assets decreased to 5.43% for the three-month period ended June 30, 2010 from 5.62% for the same period ended in 2009 and the cost of average interest-bearing liabilities decreased to 1.88% from 2.64% for the three-month periods ended June 30, 2010 and 2009, respectively. The net interest margin increased to 3.73% for the three-month period ended June 30, 2010 from 3.32% for same period in 2009.
Interest Income: Interest income decreased by $710,000 to $5.8 million for the six-month period ended June 30, 2010 from $6.5 million for the same period in 2009. This decrease was primarily attributed to a decline in the average balance of interest earning assets of $16.3 million to $214.2 million for the six-month period ended June 30, 2010 from $230.6 million for the six-month period ended June 30, 2009. In addition, we experienced a decrease in the yield on our interest earning assets of 24 basis points period over period due mainly to lower market interest rates period over period.
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