First Niles Reports 4Q Loss of $22K
NILES, Ohio – First Niles Financial Inc., holding company of Home Federal Savings and Loan Association of Niles, recorded a net loss of $22,000 for the quarter ended Dec. 31, 2018 compared to a loss of $5,000 in the year-ago quarter. The current quarter was impacted by an external fraud loss of $103,000, on an after-tax basis. Not including this event, income would have been $81,000 for the quarter, or seven cents per share.
First Niles operating results for the fourth quarter of 2017 included a tax reform write-down in the company’s deferred tax asset value of $148,000. Excluding the one-time DTA adjustment, earnings for the quarter totaled $143,000, or 13-cents per share.
For the full-year 2018 net income, First Niles recorded a net income of $219,000, or 19-cents per share, compared to net income of $379,000, or 34-cents per share for the year ended Dec. 31, 2017. Excluding the external fraud loss, net income for 2018 would have been $322,000, or 28-cents per share. Excluding the one-time DTA adjustment in 2017, net income for the full year would have been $527,000, or 47-cents per share.
Net interest income after the provision for loan losses in the last quarter of 2018 was $495,000 compared to $483,000 the same quarter a year earlier and $2.00 million for the full year of 2018.
Noninterest expense (includes wages and benefits, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $572,000 the last quarter of 2018 and $1.94 million for the year. That figure for fourth-quarter 2017 was $398,000.
First Niles attributed the increase to “increased compensation and benefits expense related to increased staffing levels, higher real estate owned related expenses, higher legal and audit expense and higher other operating expenses in both periods presented.”
Total assets of First Niles fell more than $700,000 to $99.13 million at Dec. 31, compared to $99.84 million the year earlier.
During the year, total loans increased by $2.4 million and total investment securities decreased by $4.4 million. Cash and cash equivalents increased by $1.6 million. Deposits decreased by $1.2 million, or 2%, during 2018.
Copyright 2019 The Business Journal, Youngstown, Ohio.
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