WILMINGTON, Ohio, April 23, 2013 (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 first quarter of 2013 of $1.0 million, or $.30 per share. Net income for the first quarter of 2012 was $361,000, or $.11 per share. Net income is up primarily due to a $1.2 million decrease in the loan losses provision this quarter, compared to the first quarter of 2012.
Net interest income was $5.4 million for the first quarter of 2013, compared to $5.6 million for the first quarter of 2012. The yields on earning assets decreased from 4.06% the same quarter last year to 3.84% for the current quarter. This drop exceeded the decrease in funding costs, which only fell to .30% this quarter from .49% for the same quarter last year. The declining rates on earning assets were offset by allowing certificates of deposit and money market accounts with higher costs to run-off and investing excess short-term funds in loans and higher yielding long-term securities. As a result, net interest margin increased to 3.50% for the first quarter of 2013, compared to 3.46% for the same quarter last year.
The provision for loan losses for the first quarter of 2013 was $140,000, compared to $1.3 million in the same quarter last year. Net charge-offs dropped approximately 84% to $230,000 in the first quarter of 2013, compared to $1.4 million in the first quarter of 2012. This reduction in net charge-offs reduced the historical loss experience applied to the loan portfolio, resulting in a lower quarterly year-over-year loan losses provision. Non-performing loans were $10.4 million at March 31, 2013, compared to $10.6 million at December 31, 2012.President & CEO, John Limbert, commented, "The current year is off to a better start than last year, especially in terms of asset quality. Net charge-offs are down $1.2 million, other real estate owned is down approximately $1.6 million from the same quarter last year, despite adding approximately $400,000 in the first quarter of this year for our closed Parma branch, and non-accrual loans, at $9.1 million, are the lowest since the third quarter of 2010."