NB&T Financial Group Will Not Participate in the TARP Program

NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company, Wilmington, Ohio, announces it has determined not to participate in the Treasury Department's Capital Purchase Program (CPP), which is part of the broader Troubled Asset Relief Program (TARP). President & C.E.O. John Limbert cited the following reasons for the company’s decision:

• NB&T Financial Group, Inc.("NBTF") and The National Bank and Trust Company ("Bank") currently exceed all well-capitalized regulatory guidelines and will still exceed the capital ratios for many of the other institutions receiving the Treasury investment.
• The Bank currently has sufficient liquidity to meet the loan demands of creditworthy borrowers in the markets the Bank serves. The Bank continues to actively pursue good loans.
• Participation in the program could restrict future dividend payments to NBTF shareholders.
• Participation in the program could eliminate or restrict NBTF's current stock repurchase program.
• The issuance of warrants to the Treasury could result in dilution of current shareholder interest in NBTF without sufficient long-term return at this time.
• The Securities Purchase Agreement Standard Terms provides the Treasury "may unilaterally amend any provision" of the agreement after signing to comply with any changes in federal statutes. Management was unwilling at this time to risk potential future changes.

Mr. Limbert added, “The primary purpose of CPP is to provide liquidity and capital into the banking system for lending. NBTF believes it is already well positioned to do its part in meeting the CPP's objectives.”

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