General

First Niles Financial, Inc. (“First Niles” or the “Company”) is a unitary, non-diversified, Delaware holding company. First Niles has no significant operations outside those of its wholly-owned operating subsidiary, Home Federal Savings and Loan Association of Niles (“Home Federal” or the “Bank”). References in this Form 10-KSB to “we,” “us,” and “our” refer to First Niles and/or Home Federal as the context requires.

Our principal business consists of attracting retail deposits from the general public and investing those funds primarily in permanent and construction loans secured by...