First Federal of Northern Michigan Bancorp Inc. in Alpena announced Friday that it is selling its insurance subsidiary as it refocuses its attention on community banking.
The $254 million-asset company said the sale of InsuranCenter would reduce its number of full-time employees by 13% and save $1.2 million in expenses this year. It disclosed neither the price nor the buyer.
"The sale of these operations reflects our determination to increase operating efficiencies and shareholder value, while focusing our attention on our core mission — providing outstanding community banking services," Michael W. Mahler, First Federal's president and chief executive, said in a press release.
The company lost $635,000 in the third quarter, compared with a loss of $25,000 a year earlier. It has yet to report its fourth-quarter and full-year results.