First Niles Financial, the holding company for the Home Federal Savings and Loan Association of Niles, reported a third-quarter profit of $54,000, or 5 cents per share.
Third-quarter profit declined by 86 percent compared with the same time last year, when the bank posted a profit of $399,000.
The sharp drop was primarily the result of changes in the provision for loan losses at the bank. Before the offset, net income was $405,000.
Interest income also decreased, going from $931,000 in the third quarter of 2011, to $405,000 this year.
Total equity was $13.4 million in the third quarter, $177,000 lower than at the same time last year. The decrease was the result of a $61,000 decline in retained earnings, an $89,000 reduction in net unrealized gains on securities available for sale and a $27,000 increase in U.S. Treasury shares due to the repurchase of company shares. However, Home Federal Savings exceeded all capital requirements set by regulators.