First Niles Q2 Net Income Drops to $95K
NILES, Ohio – First Niles Financial Inc., holding company of Home Federal Savings and Loan Association, reports second-quarter net income of $95,000, or eight cents a share.
This compares to net income of $124,000 for the same period in 2017, a decrease of $29,000, or 23.4%. First Niles attributes the decrease to noninterest expense linked to increased staffing levels.
Net interest income after the provision for loan losses was $500,000, as compared to $452,000 for the second quarter of 2017, an increase of $48,000, or 10.6%.
Noninterest income was $25,000, down from $57,000 reported the year-ago quarter of 2017.
Noninterest expense (includes salaries and benefits, data processing, Federal Deposit Insurance Corp. premiums) increased $58,000, or 15.5%, from the second quarter of 2017. A $56,000 increase in compensation expense was the primary factor contributing to higher non-interest expense on a comparative quarterly period basis, First Niles said.
Nonperforming loans, consisting of non-accruing loans and accruing loans delinquent more than 90 days were $588,000 at June 30, or 1.3% of net loans receivable.
The allowance for loan losses was $323,000 at June 30, which represents 54.9% of nonperforming loans and 0.7% of net loans receivable. At Dec. 31, 2017, the allowance for loan losses was $323,000, or 59.4% of nonperforming loans and 0.8% of net loans receivable.
At June 30, Home Federal had $270,000 in real estate owned, down from $355,000 six months earlier.
Total assets were $100.7 million, $821,000 more than at Dec. 31, 2017, or 0.8%. Net loans receivable were $44.1 million compared to $41.4 million at Dec. 31, an increase of $2.7 million, or 6.5%.
Deposits were at $58.6 million compared to $59.0 million at Dec. 31, 2017, or a decrease of 0.6%.
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