WILMINGTON, Ohio, Jan. 15, 2013 (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 2012 of $3.9 million, or $1.13 per share, compared to net income of $3.8 million for 2011, or $1.11 per share. Net income increased primarily due to increased non-interest income of approximately $817,000 and reduced non-interest expenses of approximately $1.6 million, offset by a decline in net interest income and increased provision for loan losses. Net income for the fourth quarter of 2012 was $1.1 million, or $.32 per share, compared to $617,000, or $.18 per share, for the fourth quarter of 2011. President & CEO, John Limbert, commented, "We increased net income for the year 2%, while simultaneously reducing problem assets 24%. It was a year-long effort with several of the larger resolutions finally occurring in the fourth quarter." Net interest income was $22.1 million for 2012, compared to $23.4 million for 2011. Net interest margin decreased to 3.48% for 2012, compared to 3.77% for the previous 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 5.49%, declined $8.6 million, while average overnight investments and securities, with an average rate of 1.46%, increased $20.9 million in 2012. Net interest income for the fourth quarter of 2012 remained relatively unchanged at $5.7 million, compared to the fourth quarter of 2011. The provision for loan losses for 2012 was $4.3 million, compared to $2.9 million the previous year. Net charge-offs were $4.2 million in 2012, compared to $2.0 million in 2011. During the fourth quarter of 2012, the Bank charged down $910,000 on two commercial real estate loans based on appraisal or auction. These two loans previously had specific reserves of approximately $813,000. In addition, we resolved three problem relationships with loan balances of approximately $1.6 million. Resolution included charging off $1.0 million, for which $889,000 had been specifically reserved. Primarily as a result of these actions, net charge-offs were $2.1 million in the fourth quarter of 2012, compared to $341,000 in the same quarter last year, and the provision for loan losses was $682,000, compared to $1.5 million for the same quarter in 2011. Additionally, nonperforming loans declined to $10.6 million at December 31, 2012, compared to $12.1 million at December 31, 2011.