First Niles Financial Inc., the holding company for Home Federal Savings and Loan Association of Niles, reported Monday its results for the three- and six-month periods ending June 30.

First Niles recorded net income of $100,000 for the three months ending June 30, compared to net income of $246,000 for the same period in 2024, a decrease of $146,000, or 59.4%. For the six months ended June 30, the company recorded net income of $187,000, compared to net income of $354,000 for the same period in 2024, a decrease of $167,000, or 47.2%.

Primary earnings per share for the three and six months ended June 30 were $0.07 and $0.13, respectively, as compared to $0.18 and $0.26 for the three and six-month comparative periods in 2024.

Net interest income after the provision for loan losses for the second quarter of 2025 was $876,000, compared to $725,000 for the second quarter of 2024. For the six months ended June 30, net interest income after the provision for loan losses totaled $1.7 million, or $196,000 more than the comparative period in 2024.

Noninterest income for the second quarter of 2025 was $1.3 million, as compared to $1.3 million for the second quarter of 2024, a decrease of $28,000. For the six months ended June 30, 2025, noninterest income totaled $2.4 million compared to $2.0 million for the same six-month period in 2024, an increase of $414,000. The change in noninterest income in both comparative periods presented was primarily attributable to fluctuating revenue from mortgage banking activities at the Union Capital Mortgage Corporation subsidiary.

Noninterest expense was $2.0 million for the second quarter of 2025, an increase of $294,000 from the same quarter one year ago. Noninterest expense for the current six-month period was $3.9 million as compared to $3.1 million, from the same period one year ago, an increase of $797,000. The increase in noninterest expense in both comparative periods was primarily related to the increased cost of mortgage banking activities at the Union Capital Mortgage Corporation subsidiary.

Total equity at June 30 was $16.7 million, $2.5 million higher than at Dec. 31. This increase was primarily due to a $2.1 million capital raise, resulting in the issuance of treasury shares, that was completed in the second quarter of 2025. The association significantly exceeded all regulatory capital requirements.