First Niles Reports Second-Quarter Net Income of $16,000
NILES, Ohio — First Niles Financial Inc., holding company of Home Federal Savings and Loan Association of Niles, reports second-quarter net income of $16,000, or one cent per share, compared to $24,000, or two cents a share, the same period a year ago.
The company also reports that its directors have declared a quarterly cash divided of three cents per common share payable Sept. 16 to shareholders of record Sept. 2 and a four-cent per share dividend on its Series A preferred stock.
First Niles attributed the decline to “decreased interest income, primarily resulting from the early redemption of a significant amount of U.S. Agency securities in [its] investment securities portfolio.”
Lower profits were also attributed to the expense, “approximately $29,000,” management incurred from “a proxy contest initiated by one of the company’s shareholders,” Lance Osborne. Osborne and Steven Passov sought two of the five directors’ seats at the annual meeting last spring but lost.
Net interest income after the provision for loan losses for the was $364,000 compared to $418,000 the second quarter of 2015, a decrease of $54,000, or 12.9%.
Noninterest income was $120,000 up from $71,000 the year-ago quarter of 2015.
Noninterest expense (includes salaries and benefits, data processing, Federal Deposit Insurance Corp. premiums) was $9,000, or 1.8%, that the second quarter of 2015.
Nonperforming loans, consisting of non-accruing loans and accruing loans delinquent more than 90 days were $845,000 at June 30, or 2.7% of net loans receivable.
The allowance for loan losses was $255,000 at June 30, which represents 30.2% of nonperforming loans and 0.8% of net loans receivable. At Dec. 31, 2015, the allowance for loan losses was $253,000, or 26.7% of nonperforming loans and 1.0% of net loans receivable. At June 30, Home Federal had $505,000 repossessed real estate, up from $394,000 six months earlier.
Total assets were $97.2 million, $1.3 million less that at Dec. 31, or 1.3%. Net loans receivable were $30.9 million compared to $25.8 million at Dec. 31, an increase of $5.1 million, or 19.5%.
Deposits stood at were $58.9 million compared to $59.6 million at Dec. 31, 2015, or 1.1%.
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