NB&T FINANCIAL REPORTS EARNINGS FOR FIRST QUARTER 2013

FOR IMMEDIATE RELEASE

Contact: Craig Fortin
NB&T Financial Group, Inc.
937-283-3002

Date: April 23, 2013

NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company ("NB&T"), Wilmington, Ohio, announced net income for the first quarter of 2013 of $1.0 million, or $.30 per share. Net income for the first quarter of 2012 was $361,000, or $.11 per share. Net income is up primarily due to a $1.2 million decrease in the loan losses provision this quarter, compared to the first quarter of 2012.

Net interest income was $5.4 million for the first quarter of 2013, compared to $5.6 million for the first quarter of 2012. The yields on earning assets decreased from 4.06% the same quarter last year to 3.84% for the current quarter. This drop exceeded the decrease in funding costs, which only fell to .30% this quarter from .49% for the same quarter last year. The declining rates on earning assets were offset by allowing certificates of deposit and money market accounts with higher costs to run-off and investing excess short-term funds in loans and higher yielding long-term securities. As a result, net interest margin increased to 3.50% for the first quarter of 2013, compared to 3.46% for the same quarter last year.

The provision for loan losses for the first quarter of 2013 was $140,000, compared to $1.3 million in the same quarter last year. Net charge-offs dropped approximately 84% to $230,000 in the first quarter of 2013, compared to $1.4 million in the first quarter of 2012. This reduction in net charge-offs reduced the historical loss experience applied to the loan portfolio, resulting in a lower quarterly year-over-year loan losses provision. Non-performing loans were $10.4 million at March 31, 2013, compared to $10.6 million at December 31, 2012.

President & CEO, John Limbert, commented, "The current year is off to a better start than last year, especially in terms of asset quality. Net charge-offs are down $1.2 million, other real estate owned is down approximately $1.6 million from the same quarter last year, despite adding approximately $400,000 in the first quarter of this year for our closed Parma branch, and non-accrual loans, at $9.1 million, are the lowest since the third quarter of 2010."

Total non-interest income was $2.0 million for the first quarter of 2013, compared to $2.1 million for the first quarter of 2012. In the first quarter of 2013, the Company realized $36,000 in losses on the sale of one security, which had been previously considered other-than-temporarily impaired. Non-interest income is also down due to a reduction in other income for special processing services provided to one customer in 2012 and no longer provided in 2013.

Total non-interest expense was $5.9 million for the first quarter of 2013, compared to $6.0 million for the first quarter of 2012. The decline in expense is due to continued focus on expense reduction primarily in the areas of personnel and processing efficiency. In addition, net costs associated with the operation of other real estate have declined approximately 22%, or $67,000, compared to the same quarter last year, due to a decline in other real estate owned balances from $3.5 million at March 31, 2012 to $1.9 million at March 31, 2013.

On March 19, 2013, the Board of Directors declared a dividend of $0.30 per share, payable April 22, 2013 to shareholders of record on March 29, 2013.

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