First Niles Q1 Net Income Drops to $49K

NILES, Ohio – First Niles Financial Inc., holding company of Home Federal Savings and Loan Association of Niles, Monday reported first-quarter net income of $49,000, or four cents per share.

This compares to first-quarter 2017 net income of $116,000, or 10 cents a share, a decrease of $67,000 or 57.8%.

The president and CEO, Daniel E. Csontos, attributed the results to increased noninterest expense.

Net interest income after the provision for loan losses was $499,000 compared to $455,000 the same quarter a year ago, Csontos said. Moreover, interest income for the quarter ended March 31 was $750,000, $94,000 higher than the same period a year ago.

Noninterest income for the first quarter was $37,000 compared to $42,000 reported a year ago.

Noninterest expense (which includes wages and benefits, data processing and Federal Insurance Deposit Corp. premiums) was $502,000 compared to $370,000 the first quarter of last year, an increase of $132,000, or 35.7%. A $56,000 increase in the provision for loss on other real estate owned and a $70,000 increase in compensation expense were the primary factors contributing to higher noninterest expense, Csontos said. The increased compensation expense was attributable to increased staffing levels and the establishment of a new employee retirement plan.

Nonperforming loans, which consist of non-accruing loans and loans delinquent 90 or more days, stood at $547,000 at March 31, or 1.3% of net loans receivable, an increase of $3,000 from the fourth quarter of last year.

During the quarter, total assets rose $302,000 to $100.1 million.

The return on assets was 0.20% compared to 0.47% the year-ago quarter.

Copyright 2022 The Business Journal, Youngstown, Ohio.