NILES - First Niles Financial, Inc., the holding company for Home Federal Savings and Loan Association of Niles, reported a significant drop in earnings during the third quarter of 2012 compared to last year at this time.
The company recorded net income of $54,000 for the three months ending Sept. 30, compared to net income of $399,000 for the same period in 2011, a decrease of $345,000.
The company attributed the decrease in net income to changes in the provision for loan losses in the period.
Earnings per share for the three months was $0.05, compared to $0.35 in 2011.
Net interest income before the provision for loan losses was $405,000 for the three months compared to $586,000 for the same period in 2011, a decrease of $181,000.
Non-interest income for the third quarter of 2012 also was down, reported at $124,000 compared to $144,000 for the third quarter of 2011. The fluctuation was attributed largely to changes in the amount of gain on sale of investments recorded in each respective period, bank officials said.
Total equity was $13.4 million, $177,000 lower than at Dec. 31, 2011. That decrease was attributed to a $61,000 decrease in retained earnings, an $89,000 decrease in net unrealized gains on securities available for sale and a $27,000 increase in Treasury shares due to the repurchase of shares by the company.