NB&T FINANCIAL REPORTS EARNINGS FOR FIRST QUARTER 2014

FOR IMMEDIATE RELEASE

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

Dated: April 22, 2014

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 2014 of $1.1 million, or $.32 per share. Net income for the first quarter of 2013 was $1.0 million, or $.30 per share. Net income increased primarily due to a $280,000 reduction in operating costs, offset by a $135,000 increase in the provision for loan losses and continued margin compression.

Net interest income was $5.2 million for the first quarter of 2014, compared to $5.4 million for the first quarter of 2013. Net interest margin decreased to 3.48% for the first quarter of 2014, compared to 3.50% for the same quarter last year. The net interest margin decreased primarily due to continued repricing of new and variable-rate loans to lower rates. The decrease in loan yield was partially offset by an increase in investment yields due to increased investment in longer term tax-exempt municipals and slower prepayments on mortgage related securities.

The provision for loan losses for the first quarter of 2014 was $275,000, compared to $140,000 in the same quarter last year. Net charge-offs were $318,000 in the first quarter of 2014, compared to $230,000 in the first quarter of 2013. Despite the increase in charge-offs, asset quality improved during the quarter. Non-performing loans declined to $4.7 million at March 31, 2014, compared to $5.8 million and $10.4 million at December 31, 2013 and March 31, 2013 respectively, due primarily to the resolution of problem loans. Other real estate owned also decreased to $1.0 million at March 31, 2014 from $1.2 million and $1.9 million at December 31, 2013 and March 31, 2013, respectively.

President & CEO, John Limbert, commented, "The current year is off to a better start than last year, earnings are up and problem assets are down over 50% from the same time last year. We even recovered approximately $186,000 of non-accrued interest on a problem loan resolved during the quarter."

Total non-interest income was $2.0 million for the first quarter of 2014, compared to $2.0 million for the first quarter of 2013. In the first quarter of 2014, the Company experienced an $81,000 decline in NSF fees due to higher deposit balances, which lowered the number of NSF items, partially offset by a $68,000 increase in trust income compared to same quarter last year.

Total non-interest expense was $5.6 million for the first quarter of 2014, compared to $5.9 million for the first quarter of 2013. The expense decrease is primarily due to a $201,000 decrease in net costs associated with the operation of other real estate and a decrease of approximately $79,000 in state taxes due to Ohio’s new financial institution tax replacing Ohio’s bank franchise tax.

On March 18, 2014, the Board of Directors declared a dividend of $0.30 per share, payable April 21, 2014 to shareholders of record on March 31, 2014.

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