First Niles to Pay Dividend, Repurchase 3% of Its Shares
NILES, Ohio -- First Niles Financial Inc., parent company of Home Federal Savings and Loan Association, Monday announced a cash dividend of 8 cents per share on common stock and 9 cents per share on preferred class A stock for the fourth quarter. The dividend is payable Dec. 21 to stockholders of record on Dec. 7.
The company also announced its intention to repurchase up to 33,804 common shares, representing 3% of its outstanding shares, in the open market or in privately negotiated transactions. The shares will be purchased at prevailing market prices over a 12-month period, subject to market conditions, and will be held by the company as treasury shares.
Lawrence Safarek, president and CEO, said the board of directors approved the repurchase program after considering the current market price of the common stock, alternative investments and the strong capital position of Home Federal Savings and Loan Association. "Presently, the repurchase of our shares represents an attractive investment opportunity which we anticipate will benefit the company and our stockholders," he said in a prepared statement.
Home Federal primarily serves the Niles area. At Sept. 30, Home Federal exceeded all its applicable regulatory capital requirements, Safarek noted, and reported $106 million in assets and $13.4 million in stockholders equity. The stock of First Niles is traded on the Nasdaq Over-the-Counter Bulletin Board.
Published by The Business Journal, Youngstown, Ohio.