April 22 , 2008

News Release

National Bank and Trust
48 N. South Street, P.O. Box 711
Wilmington, Ohio 45177

Analysts: Craig Fortin, Senior Vice President, (937) 283-3002 cfortin@nbtdirect.com
Media: Marjorie Signer, Marketing (937) 283-3067 msigner@nbtdirect.com

NB&T Financial Reports Increased First Quarter Earnings and Extends Stock Repurchase Plan

NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company, Wilmington, Ohio, announced net income for the first quarter of 2008 of $1.0 million, or $.32 per diluted share, which is comparable to the level of earnings achieved in the first quarter of 2007. In addition, the Board of Directors authorized extending the current stock repurchase plan to April 30, 2009.

Net interest income was $4.5 million for the first quarter of 2008, an increase of $72,000 compared to the first quarter of 2007. Net interest margin increased to 3.73% for the first quarter of 2008 from 3.55% for the first quarter of 2007. Interest income declined to $7.5 million for the first quarter of 2008 from $8.0 million for the same quarter last year. Average interest-earning assets decreased approximately 4.0% to $480.4 million, and the average yield decreased from 6.50% for the first quarter of 2007 to 6.27% for the first quarter of 2008 due to slower loan volume and reinvestment of funds into lower-yielding short-term investments. Total interest expense decreased $597,000 to $3.0 million during the first quarter of 2008 from $3.6 million for the same quarter last year. Average interest-bearing liabilities decreased 4.9% from last year to $404.5 million, and their cost decreased to 3.02% during the first quarter of 2008 from 3.46% for the same quarter last year.

Commenting on these results, President & C.E.O. John J. Limbert said, "Overall, we are pleased with the results for the quarter. We would like to see more loan growth, but we are not sacrificing quality for growth, especially when the economy may be in recession."

The provision for loan losses was $95,000 in the first quarter of 2008 and $5,000 in the first quarter of 2007. Net charge-offs were $155,000, or 0.18% of total average loans, in the first quarter of 2008, compared to $154,000, or 0.15% of total average loans, in the first quarter of 2007. Non-performing loans totaled $3.3 million at March 31, 2008, compared to $9.5 million at March 31, 2007. The allowance for loan losses to total loans was 1.03% at March 31, 2008, compared to 1.15% at March 31, 2007.

Total non-interest income was $2.3 million for the first quarter of 2008, compared to $2.0 million for the same quarter last year. The increase is largely due to increased deposit service charges and NSF fees, higher experience rating fees received by the Company's Insurance Agency subsidiary and a gain of approximately $116,000 on the mandatory redemption of Visa shares as a result of the Visa initial public offering.

Total non-interest expense was $5.4 million for the first quarter of 2008, compared to $5.2 million for the first quarter of 2007. The increase in non-interest expense is largely due to the increased personnel and occupancy costs of approximately $137,000 associated with opening two new branches in the first quarter of 2008.

On March 18, 2008 the Board of Directors declared a dividend of $0.29 per share, payable April 14, 2008 to shareholders of record on March 31, 2008. This dividend represents a 3.6% increase from the first quarter of 2007. In addition, at its regular meeting today, the Board of Directors authorized extending the Company's current stock repurchase plan to April 30, 2009. In April 2007, the Board authorized the repurchase of 170,000 shares over one year. Approximately 104,000 shares remain eligible for repurchase under the extended plan.

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