First Niles Reports 1Q Net Income of $49,000
NILES, Ohio -- First Niles Financial Inc., holding company of Home Federal Savings and Loan Association of Niles, Tuesday reported first-quarter net income of $49,000, or four cents a share.
This compares to a net loss of $57,000 for the same period a year ago, or five cents a share.
First Niles attributed increased net interest income to a recent rise in interest rates on the long maturity end of the yield curve, increases in the balance of its municipal bond portfolio and increased income from bank-owned life insurance.
Net interest income after the provision for loan losses was $446,000 compared to $360,000 for the first quarter of 2013. Total interest income was $660,000, a $66,000 increase from the same period in 2013.
Interest expense was $214,000, a $20,000 decrease from the same period a year ago.
Noninterest income – fees and service charges -- was $61,000 compared to $37,000 for the same period in 2013, an increase of $24,000. This item was helped during the first quarter by a $12,000 gain on the sale of real estate owned, that is, the sale of repossessed real estate. Additionally, income accrued from bank-owned life insurance was $26,000 as compared to no income from this source a year ago
Noninterest expense -- salaries and benefits, data processing, marketing and Federal Deposit Insurance Corp. premiums -- was $465,000 compared to $484,000 for the first quarter of 2013, a decrease of $19,000, or 3.9%. A legislated decrease in Ohio taxes on financial institutions was the primary reason for the decrease, First Niles said.
Nonperforming loans, consisting of non-accruing loans and accruing loans delinquent more than 90 days, totaled $963,000 at March 31, or 4.6% of net loans receivable, a decrease of $82,000 from Dec. 31. The allowance for loan losses totaled $259,000 at March 31, representing 26.9% of nonperforming loans and 1.2% of net loans receivable. At Dec. 31, the allowance for loan losses represented 24.5% of nonperforming loans and 1.2% of net loans receivable. At March 31, Home Federal Savings had $184,000 in real estate owned compared to $422,000 at Dec. 31.
At March 31, total assets were $97.0 million, compared to $96.8 million at Dec. 31. Deposits stood at $61.8 million compared to $62.1 million at Dec. 31. Total borrowings were $24.0 million the same as Dec. 31.
Published by The Business Journal, Youngstown, Ohio.
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