First Niles Announces Payoff of Nonperforming Loan
NILES, Ohio — First Niles Financial Inc., parent company of Home Federal Savings and Loan Association of Niles, reports the pay-off of a nonperforming loan will positively impact earnings during the first quarter. This transaction is expected to contribute approximately $148,000 in pretax income, or about $98,000 in after-tax income, to overall first-quarter earnings, the company said. Based on 1,113,172 shares outstanding as of Dec. 31, the transaction equates to an earnings effect of 13 cents per share pretax and 9 cents per share after tax.
An additional $86,000 from the transaction, or approximately 8 cents per share, is considered a recovery and will be a positive impact by increasing the allowance for loan and lease losses by this amount, the company said.
This transaction, which was not further identified, “is an isolated event and should not be considered as recurring,” the announcement stated. “Moreover, overall earnings are subject to many factors and future events that cannot be readily predicted. This transaction may or may not result in increased earnings due to factors and future events that are beyond our control. “
Home Federal Savings and Loan Association of Niles operates one full-service office. At Dec. 31, the company had total assets of $96.4 million and shareholders’ equity of $12 million on a consolidated basis. The stock of First Niles is quoted on the OTCQB exchange under the symbol “FNFI”.
SOURCE: First Niles Financial Inc.
Copyright 2020 The Business Journal, Youngstown, Ohio.