---

|[ X ]  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|------ | ---------------------------------------------------------------------------------------
|       | For the quarterly period ended March 31, 2001                                          
|[    ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934     
|       | For the transition period from ____________ to _____________.                          

---

|Delaware
	(State or other jurisdiction of
incorporation or organization)    |  | 34-1870418
	(I.R.S. Employer Identification No.)
|--------------------------------------------------------------------------- |  | ------------------------------------------------
|                                                                            |  |                                                 
|55 North Main Street, Niles, Ohio
	(Address of principal executive offices) |  | 44446
	(Zip Code)                               

---

|                                                                                                       | March 31, 2001 | December 31, 2000
|------------------------------------------------------------------------------------------------------ | -------------- | -----------------
|                                                                                                       | (Unaudited)    |                  
|ASSETS                                                                                                 |                |                  
|Cash and cash equivalents                                                                              |                |                  
|Noninterest bearing                                                                                    | $ 1,235        | $   969          
|Interest bearing                                                                                       | 7,953          | 2,864            
|Total cash and equivalents                                                                             | 9,188          | 3,833            
|                                                                                                       |                |                  
|Securities available for sale - at market                                                              | 27,693         | 22,677           
|Securities to be held to maturity - at cost                                                            | 12,241         | 13,901           
|Loans receivable, net of allowance for loan losses                                                     | 35,424         | 35,740           
|Accrued interest receivable                                                                            | 503            | 343              
|Federal Home Loan Bank stock, at cost                                                                  | 658            | 366              
|Real estate investment, limited partnership - at equity                                                | 254            | 263              
|Prepaid expenses and other assets                                                                      | 194            | 30               
|Prepaid federal income taxes                                                                           | 119            | 60               
|Premises and equipment, at cost less accumulated depreciation                                          | 341            | 341              
|TOTAL ASSETS                                                                                           | $86,615        | $77,554          
|                                                                                                       |                |                  
|LIABILITIES                                                                                            |                |                  
|                                                                                                       |                |                  
|Deposits                                                                                               | $53,242        | $52,194          
|Accrued interest payable                                                                               | 155            | 120              
|Accounts payable and other liabilities                                                                 | 1,188          | 1,236            
|Federal Home Loan Bank advances                                                                        | 13,000         | 5,000            
|Deferred federal income tax liability                                                                  | 246            | 246              
|TOTAL LIABILITIES                                                                                      | 67,831         | 58,796           
|                                                                                                       |                |                  
|SHAREHOLDERS' EQUITY                                                                                   |                |                  
|                                                                                                       |                |                  
|                                                                                                       |                |                  
|Preferred stock, $.01 par value, authorized 500,000 shares;   none outstanding                         | -              | -                
|Common stock, $.01 par value, authorized 6,000,000 shares;    1,754,411 shares issued  and outstanding | 18             | 18               
|Paid in capital                                                                                        | 6,747          | 6,748            
|Retained earnings                                                                                      | 13,247         | 13,334           
|Net unrealized gains on securities available for sale                                                  | 1,440          | 1,429            
|                                                                                                       |                |                  
|Common stock purchased by the Employee  Stock Ownership Plan                                           | (1,052)        | (1,052)          
|Unearned Compensation                                                                                  | -              | (264)            
|Treasury stock-145,163 shares and 132,663 shares                                                       | (1,616)        | (1,455)          
|TOTAL SHAREHOLDERS' EQUITY                                                                             | 18,784         | 18,758           
|                                                                                                       |                |                  
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                             | $86,615        | $77,554          

---

|                                                    | Three Months Ended March 31,
|--------------------------------------------------- | ----------------------------
|                                                    | 2001                        
|                                                    |                             
|Interest income:                                    |                             
|Loans receivable:                                   |                             
|First mortgage loans                                | $ 690                       
|Consumer and other loans                            | 27                          
|Mortgage-backed and related securities              | 202                         
|Investments                                         | 402                         
|Interest-bearing deposits                           | 70                          
|TOTAL INTEREST INCOME                               | 1,391                       
|                                                    |                             
|Interest expense:                                   |                             
|Deposits                                            | 539                         
|Borrowings                                          | 107                         
|TOTAL INTEREST EXPENSE                              | 646                         
|                                                    |                             
|NET INTEREST INCOME                                 | 745                         
|                                                    |                             
|Provision for loan losses                           | 30                          
|                                                    |                             
|                                                    |                             
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 715                         
|                                                    |                             
|Noninterest income:                                 |                             
|Gain on sale of securities                          | 63                          
|Service fees and other                              | 12                          
|TOTAL NONINTEREST INCOME                            | 75                          
|                                                    |                             
|Noninterest expense:                                |                             
|Equity in loss of limited partnership               | 9                           
|General and administrative:                         |                             
|Compensation and benefits                           | 544                         
|Occupancy and equipment                             | 19                          
|Federal deposit insurance premiums                  | 3                           
|Legal and audit                                     | 31                          
|Franchise taxes                                     | 59                          
|Other operating expense                             | 62                          
|TOTAL NONINTEREST EXPENSE                           | 727                         
|                                                    |                             
|INCOME (LOSS) BEFORE INCOME TAXES                   | 63                          
|                                                    |                             
|Federal income taxes (credit)                       | 5                           
|NET INCOME                                          | $  58                       
|                                                    |                             
|BASIC EARNINGS PER SHARE                            | $  .04                      
|DILUTED EARNINGS PER SHARE                          | $  .04                      

---

|                                               | Three Months Ended March 31,
|---------------------------------------------- | ----------------------------
|                                               | 2001                        
|                                               |                             
|Net income                                     | $   58                      
|Other comprehensive income (loss):             |                             
|Unrealized gains (losses) on securities:       |                             
|Unrealized gains (losses) arising for period   | 80                          
|Related income tax                             | 27                          
|                                               | 53                          
|                                               |                             
|Reclassification adjustment:                   |                             
|                                               |                             
|Gain included in net income, net of income tax | (42)                        
|Other comprehensive income (loss)              | 11                          
|                                               |                             
|COMPREHENSIVE INCOME (LOSS)                    | $   69                      

---

|                                                                                                      | Three Months Ended March 31,
|----------------------------------------------------------------------------------------------------- | ----------------------------
|                                                                                                      | 2001                        
|CASH FLOWS FROM OPERATING ACTIVITIES                                                                  | ****                        
|Net income                                                                                            | $   58                      
|Adjustments to reconcile net income to net cash provided by (used in) operating activities            | ****                        
|Deferred income taxes                                                                                 | (6)                         
|Depreciation                                                                                          | 7                           
|Amortization of deferred loan fees and costs                                                          | (7)                         
|Amortization of discounts and premiums on investments and mortgage-backed and      related securities | (6)                         
|Recognition and Retention Plan shares                                                                 | 264                         
|Gain on sale of securities                                                                            | (63)                        
|ESOP shares allocated                                                                                 | (1)                         
|Equity in loss of limited partnership                                                                 | 9                           
|Provision for loan losses                                                                             | 30                          
|Federal Home Loan Bank stock dividends                                                                | (8)                         
|                                                                                                      | 277                         
|Net increase in accrued interest receivable, prepaid expenses and other assets                        | (382)                       
|Net decrease in accrued interest, accounts payable and other liabilities                              | (12)                        
|                                                                                                      |                             
|NET CASH USED IN OPERATING ACTIVITIES                                                                 | (117)                       
|                                                                                                      |                             
|CASH FLOWS FROM INVESTING ACTIVITIES                                                                  | ****                        
|Proceeds from sale of securities available for sale                                                   | 64                          
|Purchases of FHLB stock                                                                               | (284)                       
|Purchase of securities available for sale                                                             | (6,000)                     
|Proceeds from maturity of securities held to maturity                                                 | 1,000                       
|Proceeds from maturity of securities available for sale                                               | 1,000                       
|Proceeds from principal payments on mortgage-backed and related securities                            | 665                         
|Net (increase) decrease in interest-bearing deposits with banks                                       | (5,089)                     
|Net decrease (increase) in loans                                                                      | 293                         
|Additions to premises                                                                                 | (7)                         
|NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES                                                   | (8,358)                     
|                                                                                                      |                             
|CASH FLOWS FROM FINANCING ACTIVITIES                                                                  |                             
|Net increase (decrease) in savings accounts, MMDAs and NOW accounts                                   | 5                           
|Net increase in certificates of deposits                                                              | 1,043                       
|Purchase of Treasury shares                                                                           | (162)                       
|Cash dividends paid on common stock                                                                   | (145)                       
|Repayment of note payable                                                                             | -                           
|Proceeds from FHLB advances                                                                           | 8,000                       
|NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                                                   | 8,741                       
|                                                                                                      |                             
|NET INCREASE (DECREASE) IN CASH                                                                       | 266                         
|                                                                                                      |                             
|CASH AT BEGINNING OF PERIOD                                                                           | 969                         
|CASH AT END OF PERIOD                                                                                 | $1,235                      
|                                                                                                      |                             
|Cash paid during the period for:                                                                      |                             
|Interest on deposits                                                                                  | $  612                      
|Income taxes                                                                                          | $  125                      

---

|                                                | Three Months Ended


March 31,
|----------------------------------------------- | ------------------------------
|                                                | 2001                          
|BASIC                                           |                               
|Net income                                      | $      58                     
|Earnings applicable to basic earnings per share | 58                            
|Average common shares                           | 1,617,999                     
|Less average unallocated ESOP shares            | 147,555                       
|Average common shares outstanding               | 1,470,444                     
|Earnings per share -	basic                      | $       0.04                  
|diluted                                         | $       0.04                  

---

|**Item 2.** | **Management's Discussion and Analysis of Financial Condition and****Results of Operations** | 
|----------- | -------------------------------------------------------------------------------------------- | 

---

---

---

> the strength of the United States economy in general and the strength of the local economies in which we
> conduct operations;the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of
> the Federal Reserve Board;inflation, interest rate, market and monetary fluctuations;the timely development of and acceptance of our new products and services and the perceived overall value of
> these products and services by users, including the features, pricing and quality compared to competitors'
> products and services;the willingness of users to substitute competitors' products and services for our products and services;our success in gaining regulatory approval of our products and services, when required;the impact of changes in financial services' laws and regulations (including laws concerning taxes, banking,
> securities and insurance);the impact of technological changes;acquisitions;changes in consumer spending and saving habits; andour success at managing the risks involved in the foregoing.

---

|Item 1. | Legal Proceedings:                                           
|------- | -------------------------------------------------------------
|        | There are no matters required to be reported under this item.
|Item 2. | Changes in Securities:                                       
|        | There are no matters required to be reported under this item.
|Item 3. | Defaults Upon Senior Securities:                             
|        | There are no matters required to be reported under this item.
|Item 4. | Submission of Matters to a Vote of Security Holders:         
|        | There are no matters required to be reported under this item.
|Item 5. | Other Information:                                           
|        | There are no matters required to be reported under this item.
|Item 6. | Exhibits and Reports on Form 8-K:                            
|        |                                                              
|        |                                                              
|        |                                                              

---

|                     |     | **FIRST NILES FINANCIAL, INC.**
Registrant                                                                            
|-------------------- | --- | ----------------------------------------------------------------------------------------------------------------------
|                     |     |                                                                                                                       
|Date:   May 14, 2001 | By: | /s/  William L. Stephens 	
William L. Stephens
President and Chief Executive Officer*(Duly Authorized Representative)*
|                     |     |                                                                                                                       
|Date:   May 14, 2001 | By: | /s/  Thomas G. Maley	Thomas G. MaleyController*(Principal Accounting Officer)*                                        

---