First Niles Financial Reports Q1 Results

NILES, Ohio – First Niles Financial Inc., holding company for Home Federal Savings and Loan Association, reports a net loss of $4,000 for the first three months of 2022. That compares to net income of $50,000 for the first quarter of 2021, a decrease of 108%.

Return on average assets for the quarter was negative .01% as compared to .18% one year ago. Primary earnings per share fell to zero vs. 4 cents in the first quarter of 2021. Zero net income was adversely impacted by decreased mortgage banking activity related to the recent increase in market interest rates, the company said.

Net interest income after the provision for loan losses totaled $614,000, compared to $475,000 in 2021, an increase of 29.3%. Total interest income was $864,000, up $105,000 from 2021. Interest expense was $247,000, a $37,000 decrease. The provision for loan losses for the quarter ended March 31, 2022, was $3,000 as compared to zero for the comparative quarter one year ago.

Non-interest income for the first quarter of 2022 was $1.1 million, as compared to $61,000 for the same period in 2021, an increase of $1.0 million. The increase was due to gain on sale of loans held for sale, originated by the Union Capital Mortgage Corporation subsidiary, which was acquired on August 2, 2021.

Non-interest expense for the first quarter of 2022 was $1.7 million, compared to $477,000 for the first quarter of 2021. This increase was primarily due to expenses related to the operations of Union Capital Mortgage Corporation.

Non-performing loans, consisting of non-accruing loans and accruing loans delinquent more than 90 days totaled $237,000 at March 31, 2022, or 0.3% of net loans receivable, a decrease of $212,000 from December 31, 2021. The allowance for loan losses totaled $640,000 at March 31, 2022, representing 270.0% of non-performing loans and 0.9% of net loans receivable. At Dec. 31, 2021, the allowance for loan losses represented 128.1% of non-performing loans and 0.8% of net loans receivable. At March 31, we had zero in real estate owned, unchanged from Dec. 31.

At March 31, total assets were $123.8 million, compared to $124.5 million at Dec. 31. Net loans receivable totaled $73.2 million compared to $73.7 million at Dec. 31.

Deposits were $83 million at March 31, up $2.4 million at Dec. 31.

Total equity at March 31 was $14.6 million, down $699,000 from Dec. 31. The decrease in total equity was primarily attributable to a $613,000 decrease in net unrealized gains on securities available for sale and an $86,000 decrease in retained earnings.

At March 31, the association significantly exceeded all regulatory capital requirements.

SOURCE: First Niles Financial Inc.

Published by The Business Journal, Youngstown, Ohio.