WILMINGTON, Ohio, Oct. 16, 2012 (GLOBE NEWSWIRE) -- NB&T Financial Group, Inc. (Nasdaq:NBTF), parent company of The National Bank and Trust Company (the "Bank"), Wilmington, Ohio, announced net income for the third quarter of 2012 of $1.3 million, or $.37 per share. Net income for the third quarter of 2011 was $1.1 million, or $.33 per share. Net income increased primarily due to recognition of $1.0 million in securities sale gains, compared to $421,000 in securities sale gains in the third quarter of last year. In addition, the Bank's other non-interest income increased to $3.0 million in the third quarter of 2012 from $2.1 million in the same quarter last year, offset by increased provision for loan losses of approximately $1.5 million. Net income for the first nine months of 2012 was $2.8 million, or $.81 per share, compared to $3.2 million, or $.93 per share, for the same period in 2011. Reviewing the third quarter 2012, President & CEO, John Limbert, commented, "The four-year-old recession continues to negatively impact specific business sectors. We have invested considerable time and talent partnering with certain clients in some of these affected sectors. Based on our ongoing analysis of non-performing loans, we recorded additional loan loss provisions this quarter. At September 30, 2012, the total allowance for loan losses is $6.1 million, representing 1.5% of total loans." Net interest income was $5.4 million for the third quarter of 2012, compared to $5.8 million for the third quarter of 2011. Net interest margin decreased to 3.42% for the third quarter of 2012, compared to 3.67% for the same quarter last year. The net interest margin decreased primarily due to a change in asset mix from higher-yielding loans to lower-yielding securities. Average loans, which had an average rate of 5.34%, declined $7.9 million, while average overnight investments and securities, with an average rate of 1.47%, increased $19.5 million in the third quarter of 2012. Net interest income for the first nine months of 2012 was $16.4 million, compared to $17.8 million for the first nine months of 2011.