WILMINGTON, Ohio, July 20, 2010 (GLOBE NEWSWIRE) -- 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 second quarter of 2010 increased 57.0% to $1.3 million, or $.37 per diluted share, from net income of $809,000, or $.26 per diluted share, for the second quarter of 2009. Average earning assets for the second quarter of 2010 were $648.2 million, compared to $488.3 million, for the second quarter of 2009. Most of this growth is attributable to the acquisition of Community National Bank ("CNB") in December 2009 and American National Bank ("ANB") in March 2010. These acquisitions also contributed to net income for the first half of 2010 increasing to $6.9 million, or $2.02 per diluted share, from net income of $1.5 million, or $.47 per diluted share, for the first half of 2009. The increase in net income over last year is primarily due to the bargain purchase pre-tax gain of approximately $7.6 million in the Federal Deposit Insurance Corporation ("FDIC") assisted acquisition of certain of the assets and liabilities of ANB. In addition, the Company realized a pre-tax gain of $1.4 million on the sale of its insurance agency in January 2010.
Commenting on these results, President & C.E.O. John J. Limbert, said, "Needless to say, we are pleased with the year over year increase in earnings. This continues to be the result of a lot of hard work by a dedicated group of bankers. Both acquisitions have already been converted to our systems to help us become one organization more quickly. Our on-going training has been expanded, and we continue to assess the value of our assets acquired. Like anything new, there are a few bumps, but so far we are pleased with the overall results."
Net interest income was $6.5 million for the second quarter of 2010, compared to $4.6 million for the second quarter of 2009. Net interest margin increased to 4.00% for the second quarter of 2010, compared to 3.81% for the same quarter last year. The net interest margin increased primarily due to two factors. First, average loans outstanding for 2010, which had an average rate of 6.41%, compared to 6.07% in 2009, increased $110.2 million, primarily due to the CNB and ANB acquisitions. Second, the average cost of interest-bearing liabilities declined from 1.84% in the second quarter of 2009 to 1.42% in the second quarter of 2010 on increased average deposits of $154.4 million. Due to increased liquidity, NB&T was able to lower rates on non-transaction accounts over the last year.