FIRST NILES

First Niles Financial, Inc. is not an operating company and has not engaged in any significant business to date. It was formed in July 1998 as a Delaware-chartered corporation to be the holding company for Home Federal. The holding company structure will provide greater flexibility in terms of operations, expansion and diversification. Their primary market area for retail deposits and loans consists of Trumbull County, including the city of Niles. Since 1990, this market area has evidenced a decline in population and higher unemployment rates relative to the comparable group markets, Ohio and the United States.