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NB&T Financial Reports Earnings for 2012

WILMINGTON, Ohio, Jan. 15, 2013 (GLOBE NEWSWIRE) -- NB&T Financial Group, Inc. (Nasdaq:NBTF), parent company of The National Bank and Trust Company (the "Bank"), Wilmington, Ohio, announced net income for 2012 of $3.9 million, or $1.13 per share, compared to net income of $3.8 million for 2011, or $1.11 per share. Net income increased primarily due to increased non-interest income of approximately $817,000 and reduced non-interest expenses of approximately $1.6 million, offset by a decline in net interest income and increased provision for loan losses.

Net income for the fourth quarter of 2012 was $1.1 million, or $.32 per share, compared to $617,000, or $.18 per share, for the fourth quarter of 2011.

President & CEO, John Limbert, commented, "We increased net income for the year 2%, while simultaneously reducing problem assets 24%. It was a year-long effort with several of the larger resolutions finally occurring in the fourth quarter."

Net interest income was $22.1 million for 2012, compared to $23.4 million for 2011. Net interest margin decreased to 3.48% for 2012, compared to 3.77% for the previous year. The net interest margin decreased primarily due to a change in asset mix from higher-yielding loans to lower-yielding securities. Average loans, which had an average rate of 5.49%, declined $8.6 million, while average overnight investments and securities, with an average rate of 1.46%, increased $20.9 million in 2012. Net interest income for the fourth quarter of 2012 remained relatively unchanged at $5.7 million, compared to the fourth quarter of 2011.

The provision for loan losses for 2012 was $4.3 million, compared to $2.9 million the previous year. Net charge-offs were $4.2 million in 2012, compared to $2.0 million in 2011. During the fourth quarter of 2012, the Bank charged down $910,000 on two commercial real estate loans based on appraisal or auction. These two loans previously had specific reserves of approximately $813,000. In addition, we resolved three problem relationships with loan balances of approximately $1.6 million. Resolution included charging off $1.0 million, for which $889,000 had been specifically reserved. Primarily as a result of these actions, net charge-offs were $2.1 million in the fourth quarter of 2012, compared to $341,000 in the same quarter last year, and the provision for loan losses was $682,000, compared to $1.5 million for the same quarter in 2011. Additionally, nonperforming loans declined to $10.6 million at December 31, 2012, compared to $12.1 million at December 31, 2011.

Total non-interest income was $10.5 million for 2012, compared to $9.7 million for 2011. Non-interest income for 2012 was higher due to the Bank's termination of its rights under the single-family FDIC loss share guarantee for which approximately $405,000 was received in 2012. The Bank still maintains an FDIC loss share guarantee on approximately $30.0 million of non-single family loans. The Company also realized non-taxable income of approximately $359,000 on a bank-owned life insurance death benefit in excess of surrender value received in 2012. Non-interest income for the fourth quarter of 2012 was $2.1 million, compared to $2.7 million for the same quarter last year. In the fourth quarter of 2011, the Bank realized gains on sales of securities of approximately $620,000.

Total non-interest expense was $23.5 million in 2012, compared to $25.1 million in 2011. The decline in expense is due to overall expense reduction primarily in the areas of personnel, benefit costs, branch hours, marketing and other operating costs. In addition, the cost to maintain other-real-estate properties has declined in the past year as the number of properties declines. For the fourth quarter of 2012, total non-interest expense was $5.7 million, compared to $6.1 million for the same period in 2011.

CONTACT: Craig Fortin NB&T Financial Group, Inc. (937)-283-3002Source:NB&T Financial Group, Inc.