NILES, Ohio – First Niles Financial Inc., the holding company for Home Federal Savings and Loan Association of Niles, reported a third-quarter net income of $297,000.
The bank’s net income was down $35,000 compared with the third quarter of 2024.
For the first nine months of 2025, the net income is $484,000, which is down 29.4% compared with the $686,000 recorded in the first nine months of 2024.
Primary earnings per share were 20 cents and 33 cents for the first three months and nine months, respectively, compared with 25 cents and 51 cents from the same periods in 2024.
Net interest income after the provision for loan losses was $830,000 in the third quarter, compared with $751,000 for the third quarter of 2024, a 10.5% increase. Additionally, net interest income was $2.57 million, up $257,000 after the provision of loan losses for the first nine months compared with the same period in 2024.
Noninterest income for the third quarter was $1.64 million, compared with $1.58 million in the third quarter of 2024. Likewise, for the first nine months of 2025, noninterest income was $4.05 million, compared with $3.57 million during the same period a year ago.
Noninterest expense was $2.10 million for the third quarter, up from $1.89 million in the third quarter of 2024. Noninterest expense was $5.98 million in this year’s first nine months, compared with $4.97 million for the same period last year. First Niles Financial attributed the increase in noninterest expenses to the increased cost of mortgage banking activities at the Union Capital Mortgage Corp. subsidiary.
Nonperforming loans, consisting of nonaccruing loans and accruing loans delinquent more than 90 days, totaled $869,000 as of the end of September. The allowance for loan losses totaled $933,000, representing 107.4% of nonperforming loans and 0.9% of net loans receivable.
At the end of 2024, the allowance for loan losses totaled $1 million, representing 112.7% of nonperforming loans and 1% of net loans receivable.
Total assets were $159.3 million as of Sept. 30, up $2.9 million from Dec. 31, 2024. Net loans receivable totaled $101.7 million at the end of September, compared with $103.3 million at the end of 2024. Deposits were $87.5 million Sept. 30, compared with $83.6 million at the end of 2024.
Total equity was $17 million at the end of September, which is $2.9 million higher than the end of 2024. The bank attributes the increase primarily to a $2.1 million capital raise, resulting in the issuance of treasury shares during the second quarter of 2025.