SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 15, 1999
FIRST NILES FINANCIAL, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-24849 34-1870418
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
55 North Main Street, Niles, Ohio 44446
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(Address of principal executive offices) Zip Code)
Registrant's telephone number, including area code: (330) 652-2539
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ITEM 5. OTHER ITEMS
Attached as Exhibit 99.1 is the Registrant's press release dated
November 15, 1999 announcing the declaration of a special cash
distribution of $6.00 per share payable on December 13, 1999 to
shareholders of record on November 29, 1999.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) The following exhibit is filed as part of this Report:
99.1 Press Release dated November 15, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST NILES FINANCIAL, INC.
Date: November 15, 1999 By: /s/ Lawrence Safarek
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Lawrence Safarek
Vice President and Treasurer
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 Press Release dated November 15, 1999
FIRST NILES FINANCIAL, INC. DECLARES
SPECIAL CASH DISTRIBUTION TO SHAREHOLDERS
NILES, OHIO -The Board of Directors of First Niles Financial, Inc. (Nasdaq
SmallCap: FNFI), the holding company for Home Federal Savings and Loan
Association of Niles, today declared a special cash distribution of $6.00 per
share to shareholders of record as of the close of business on November 29,
1999, payable on December 13, 1999. Management believes that the entire
distribution will constitute a non-taxable return of capital, although the tax
treatment cannot be confirmed until the Company determines its operating results
for the tax year ending December 31, 1999. Once known, the Company will notify
shareholders by letter. The portion of the distribution that does not qualify as
a tax-free return of capital, if any, will be treated as a dividend, which is
generally taxable as ordinary income to shareholders.
William Stephens, President and Chief Executive Officer, stated "Ever since
the Company raised net proceeds of approximately $16.9 million in its initial
public offering in October 1998, the Board of Directors has been evaluating the
strategic options available to deploy those proceeds to enhance the value of our
shareholders' investment. After thorough deliberation and analysis of the
Company's capital position and anticipated future needs, the Board has
determined that distributing capital to shareholders as a return on their
initial investment is the best available course of action at this time. At the
end of September 1999, the Company's equity to asset ratio was approximately
34.3%. This special distribution will reduce that ratio to approximately 25.3%,
leaving the Company with considerable capital to support future growth."
In accordance with NASD regulations, the ex-dividend date for this special
distribution will be December 14, 1999, the first business day after payment of
the special distribution. Shareholders who sell their shares before the
ex-dividend date transfer the right to receive the cash distribution to the
buyers of the shares. Persons who buy or sell Company common stock before
December 14, 1999, should consult their brokers regarding the timing of their
transaction and the effect of the ex-dividend date on their right to receive the
special capital distribution.
First Niles Financial, Inc. is the holding company for Home Federal Savings
and Loan Association of Niles. Home Federal Savings and Loan Association of
Niles operates one full-service office in Niles, Ohio. At September 30, 1999,
the Company had total assets of $84.2 million and shareholders' equity of $28.8
million on a consolidated basis. On November 11, 1999, the Company's common
stock closed at $15.875 per share on the Nasdaq SmallCap Market.
FOR MORE INFORMATION CONTACT FOR IMMEDIATE RELEASE
William L. Stephens, President Date: November 15, 1999
or Lawrence Safarek, Vice President
at (330) 652-2539
