NILES — First Niles Financial Inc., the holding company for Home Federal Savings and Loan Association of Niles, recorded a net of loss of $2,000 for the third quarter that ended Sept. 30, compared to net income of $420,000 for the same period in 2021.

The banking company’s latest earnings report also shows for the first nine months of the year, it had a net income of $88,000 compared to $510,000 over the same period last year, a difference of nearly 83 percent.

The company attributes the losses mostly to lower noninterest income related to lower gain on the sale of loans originated by Union Capital Mortgage Corp., which First Niles acquired in August 2021, according to a news release Monday.

Loan origination is being impacted by rising interest rates.

Earnings also were hurt over the periods due to a recognition of an income tax item related to the terms of the loan company’s acquisition agreement, the release states.

First Niles had total assets of $130.3 million at the end of the quarter compared to $124.5 million at the end of 2021.

Net loans held for investment was $85.4 million on Sept. 30, compared to $73.7 million at the end of 2021, and deposits were at $84 million, up from $80.6 million.