First Niles Financial Reports $94,000 in Net Income
NILES, Ohio — First Niles Financial, Inc., holding company for Home Federal Savings and Loan Association of Niles, reports net income of $94,000 for the three months ended June 30. That compares to net income of $40,000 for the same period in 2021, an increase of $54,000, or 135.0%.
Primary earnings per share for the second quarter were 7 cents compared to 3 cents during the same period in 2021.
For the six months ended June 30, the company recorded net income of $90,000, unchanged from the previous comparative period. Primary earnings for the first six months of the year were 7 cents, compared to cents during the same period in 2021.
Earnings were negatively impacted during the first two quarters of 2021 due to the costs associated with completing the acquisition of Union Capital Mortgage Corp., based in Mentor, Ohio. This acquisition was completed Aug. 2, 2021. Earnings in 2022 have been adversely impacted by decreased mortgage banking activity related to recent increases in market interest rates.
Net interest income after the provision for loan losses for the second quarter of 2022 was $750,000, compared to $500,000 for the second quarter of 2021.
For the six months ended June 30, net interest income after the provision for loan losses totaled $1.4 million, or $389,000 more than the comparative period in 2021.
Non-interest income was $1.3 million, as compared to $20,000 for the second quarter of 2021, an increase of $1.3 million. For the six months, noninterest income totaled $2.4 million compared to $81,000 for the same six-month period in 2021, an increase of $2.3 million.
The increase in non-interest income in both periods was primarily attributable to revenue from mortgage banking activities as a result of the Union Capital Mortgage acquisition, the company said.
Noninterest expense increased $1.4 million for the quarter as compared to the quarter ended June 30, 2021. Non-nterest expense increased $2.7 million.
The increase in non-interest expense in both periods was primarily related to mortgage banking activities as a result of the acquisition.
Non-performing loans, consisting of non-accruing loans and accruing loans delinquent more than 90 days. totaled $196,000 at June 30, or 0.2% of net loans receivable. The allowance for loan losses totaled $687,000, representing 350.5% of non-performing loans and 0.9% of net loans receivable. At Dec. 31, the allowance for loan losses totaled $577,000, representing 128.1% of non-performing loans and 0.8% of net loans receivable. At June 30, we had zero in real estate owned, unchanged from Dec, 31, 2021.
At June 30, total assets were $130.4 million compared to $124.5 million at Dec. 31, an increase of $5.9 million. Net loans receivable totaled $80.8 million as compared to $73.7 million at Dec. 31, an increase of $7.0 million.
Deposits were $84.3 million at June 30, up $3.7 million .
Total equity at June 30 was $13.9 million, down $1.4 million than.
Published by The Business Journal, Youngstown, Ohio.