NB&T Financial Reports Third Quarter Earnings
NB&T Financial Reports Third Quarter Earnings.
FOR IMMEDIATE RELEASE
Contact: Craig Fortin,
National Bank and Trust
937-283-3002
NB&T Financial Reports Third Quarter Earnings
NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company, Wilmington, Ohio, announced net income for the third quarter of 2008 of $.33 per diluted share, compared to $.32 per diluted share for the same quarter last year, on net income of $1.0 million in each quarter. Net income for the first nine months of 2008 was $2.9 million, or $.93 per diluted share, compared to $3.3 million, or $1.03 per diluted share, for the first nine months of 2007. Last year's net income included $324,000 of paid interest on non-accrual loans returned to accrual status in June 2007. Nonaccrual loans have decreased from $3.3 million at September 30, 2007 to just under $3.0 million at September 30, 2008. The Bank also opened three new branches in 2008,increasing expenses approximately $580,000 over last year. The Bank is taking advantage of its well-capitalized position to expand into contiguous markets.
Commenting on these results, President & C.E.O. John J. Limbert said, "In this volatile market, we continue to focus on the fundamentals. Despite the increased expenses with our new branches, we have averaged approximately $1.0 million in earnings each of the last 5 quarters. Our average equity to assets has increased from approximately 11.0% a year ago to 11.3% at September 30, 2008 – well above well-capitalized regulatory guidelines. Finally, we continue to actively manage our asset quality and problem loans. At September 30, 2008, our nonperforming loans and other real estate owned totaled approximately $3.3 million, compared to $4.2 million last year. At the same time, net charge-offs are down approximately $800,000 from last year. We also have no exposure to Fannie Mae or Freddie Mac preferred stock."
Net interest income was $4.7 million for the third quarter of 2008, an increase of $116,000 compared to the third quarter of 2007. Net interest margin increased to 3.91% for the third quarter of 2008 from 3.70% for the third quarter of 2007. For the first nine months of 2008, net interest income was $13.7 million compared to $13.9 million for the same period last year. The primary reason for the decrease is net income for the nine months ended September 30, 2007 included $324,000 of paid interest on non-accrual loans returned to accrual status. Average interest-earning assets decreased approximately 3.0% to $477.0 million during the third quarter of 2008 compared to the third quarter of 2007 and interest income decreased $1.1 million. As a result, the average yield on earning assets decreased from 6.64% for the third quarter of 2007 to 5.92% for the third quarter of 2008. Offsetting the decrease in interest income, interest expense decreased $1.2 million to $2.4 million during the third quarter of 2008 from $3.6 million for the same quarter last year. Average interest-bearing liabilities decreased 4.0% from last year to $403.3 million, and their cost decreased to 2.37% during the third quarter of 2008 from 3.44% for the same quarter last year.
The provision for loan losses was $105,000 in the third quarter of 2008 and $30,000 in the third quarter of 2007. Net charge-offs were $77,000, or 0.09% of total average loans, in the third quarter of 2008, compared to $198,000, or 0.21% of total average loans, in the third quarter of 2007. Net charge-offs for the first nine months of 2008 were down to $326,000 from $1.1 million for the first nine months of 2007. Non-performing loans totaled $3.0 million at
September 30, 2008, compared to $3.4 million at September 30, 2007. In addition, other real estate owned declined to $289,000 at September 30, 2008 from $754,000 at September 30, 2007. The allowance for loan losses to total loans was 1.01% at September 30, 2008, compared to 1.02% at September 30, 2007.
Total non-interest income was $2.0 million for the third quarters of 2008 and 2007. Total non-interest income was $6.4 million for the first nine months of 2008, compared to $6.2 million for the first nine months of 2007. The increase is largely due to increased deposit service fees and a gain of approximately $135,000 on the liquidation of a long-term investment held by the Bank's insurance agency subsidiary.
Total non-interest expense was $5.4 million for the third quarter of 2008, compared to $5.3 million for the third quarter of 2007. Non-interest expense was $16.3 million for the first nine months of 2008, compared to $15.9 million for the first nine months of 2007. The increase in non-interest expense is largely due to approximately $580,000 in increased personnel and occupancy costs associated with opening three new branches in 2008.
On September 16, 2008, the Board of Directors declared a dividend of $0.29 per share, payable October 26, 2008 to shareholders of record on September 30, 2008. This dividend represents a 3.6% increase from the third quarter of 2007.
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