NB&T Financial (NBTF) 8-K NB&T Financial Reports Increased Earnings for 2007

EXHIBIT 99.1

NB&T Financial Reports Increased Earnings for 2007

January 15, 2008

NB&T Financial Group, Inc. (Nasdaq: NBTF), parent company of The National Bank and Trust Company, Wilmington, Ohio, announced net income for 2007 was $4,432,000, or $1.39 per diluted share, compared to net income of $1,856,000, or $.58 per diluted share, for 2006. The earnings improvement was across the board with increases in net interest income and non-interest income, and decreases in the loan loss provision and non-interest expenses.

Net interest income was $18.7 million for 2007, compared to $18.3 million for last year, despite a decrease in average earning assets of approximately $67.8 million. As a result, net interest margin increased to 3.78% for this year from 3.26% for last year. Interest income was $32.9 million for 2007 compared to $34.1 million in 2006, which is the result of lower loan volumes. Total interest expense decreased $1.5 million to $14.3 million in 2007 from $15.8 million last year. The decrease is primarily the result of the reduction in Federal Home Loan Bank advances, short-term borrowings and time deposits. These liability decreases, along with reductions in the investment and indirect loan portfolios, were all part of last year’s balance sheet restructuring to improve the Company’s net interest margin.

Commenting on these results, President and CEO John Limbert stated, “Our balance sheet decrease of $37.0 million was a planned result. We exited the indirect car loan business, and with no new indirect car loans being generated, our balances decreased $19.0 million. Our commercial loans dropped by $15.0 million as we moved our credit criteria to higher standards. And, our mortgage loan balances decreased by $10.0 million due to selling loans in the secondary market. We deployed these excess funds into our investment portfolio. Our deposits, while appearing to be $33.0 million lower, actually only decreased $8.0 million. We moved over $25.0 million in high balance public fund deposits to off-balance sheet sweep accounts, which generated fee income. The remaining $8.0 million of deposit reduction reflects our focus on rewarding our relationship clients with attractive rates while not extending a market rate to single product buyers.”

The provision for loan losses was decreased to $135,000 in 2007 from $1.3 million in 2006. The lower provision for loan losses in 2007 is a result of two factors. First, non-performing loans were down approximately $6.4 million at December 31, 2007 compared to December 31, 2006. As a result, the ratio of non-performing loans to total loans dropped to 0.55% at December 31, 2007 from 2.04% last year. Secondly, actual loan balances at December 31, 2007 were down $52.5 million from December 31, 2006 with the largest decrease in consumer loans, which had the highest historical loss experience. The percentage of the allowance for loan losses to total loans was 1.00% at December 31, 2007.

Mr. Limbert continued, “The reduction in non-performing loans of $6.4 million is a direct result of our efforts to improve asset quality going back to last year. We resolved several problem loans and continued to focus new originations on higher quality credits. While the industry is struggling with asset quality issues, the reduction in our provision reflects our current assessment of the loan portfolio. We do not have a sub-prime morgage portfolio or exposure”.

Non-interest income was $8.2 million for 2007 and $7.9 million in 2006. Included in the 2006 results, the Company realized $1.3 million in net securities losses, which was partially offset by a gain of approximately $1.1 million on the sale of a branch. During 2007, the Company recorded increased gains on loans sold in the secondary market and fees earned on sweep account services started during the second half of 2006. These gains were partially offset by lower deposit service charges and overdraft fees. The Company realized $1.34 million in net securities losses in 2006 from the sale of $66.3 million in securities. The Company sold no securities during 2007.

Non-interest expense decreased $2.0 million to $21.3 million for 2007, compared to $23.3 million for 2006. The decrease was primarily due to $1.4 million in prepayment penalties from the early payoff of approximately $47.2 million in Federal Home Loan Bank debt and increased marketing expenses related to the Company’s branding initiatives in 2006.

On December 18, 2007 the Board of Directors declared a dividend of $0.28 per share, payable January 21, 2008 to shareholders of record on December 31, 2007. This amount of dividend represents a 3.7% increase from the fourth quarter of 2006.

SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except per share data)

(Unaudited)

	Three Months Ending															Year Ending
	12/31/2007			9/30/2007			6/30/2007			3/31/2007			12/31/2006			12/31/2007			12/31/2006
Statements of Income
Interest income	$	8,077		$	8,226		$	8,627		$	8,016		$	8,292		$	32,947		$	34,096
Interest expense		3,325			3,640			3,678			3,633			3,675			14,276			15,795
Net interest income		4,752			4,586			4,949			4,383			4,617			18,671			18,301
Provision for loan losses		(45	)		30			145			5			180			135			1,330
Other non-interest income		2,043			2,020			2,148			2,031			1,966			8,240			8,095
Net gains/(losses) on sales of securities		—			—			—			—			—			—			(1,342	)
Gain on sale of branch		—			—			—			—			1,099			—			1,099
Total non-interest income		2,043			2,020			2,148			2,031			3,065			8,240			7,852
Other non-interest expenses		5,402			5,324			5,382			5,207			5,522			21,316			21,949
FHLB prepayment penalties		—			—			—			—			—			—			1,363
Total non-interest expenses		5,402			5,324			5,382			5,207			5,522			21,316			23,312
Income before income taxes		1,438			1,252			1,570			1,202			1,980			5,460			1,511
Income taxes		286			223			323			196			451			1,028			(345	)
Net income	$	1,152		$	1,029		$	1,247		$	1,006		$	1,529		$	4,432		$	1,856
Per Share Data
Basic earnings per share	$	0.36		$	0.32		$	0.39		$	0.32		$	0.48		$	1.39		$	0.58
Diluted earnings per share		0.36			0.32			0.39			0.32			0.48			1.39			0.58
Dividends per share		0.28			0.28			0.28			0.28			0.27			1.12			1.08
Book value at quarter end		18.52			18.35			18.15			18.12			18.01			18.52			18.01
Average basic shares outstanding		3,182			3,182			3,189			3,186			3,175			3,188			3,175
Average diluted shares outstanding		3,183			3,183			3,191			3,186			3,176			3,190			3,176
Balance Sheet Items (Quarter End)
Total assets	$	518,914		$	528,524		$	540,814		$	546,912		$	555,182		$	518,914		$	555,182
Securities		89,285			86,705			79,573			79,104			82,896			89,285			82,896
Loans		357,763			373,483			384,983			401,753			410,221			357,763			410,221
Allowance for loan losses		3,594			3,824			3,993			4,614			4,762			3,594			4,762
Deposits		420,254			428,895			443,421			447,048			453,268			420,254			453,268
Borrowings		35,523			36,801			36,125			37,601			39,612			35,523			39,612
Total shareholders’ equity		58,883			59,112			58,545			58,517			58,223			58,883			58,223
Assets Under Management
Total assets	$	518,914		$	528,524		$	540,814		$	546,912		$	555,182		$	518,914		$	555,182
Cash management sweep accounts		54,012			54,659			41,881			39,703			29,260			54,012			29,260
Market value of trust assets		203,286			201,657			188,597			183,332			180,050			203,286			180,050
Total assets under management		776,212			784,840			771,292			769,947			764,492			776,212			764,492
Selected Financial Ratios
Return on average assets		0.86	%		0.76	%		0.91	%		0.73	%		1.09	%		0.82	%		0.30	%
Return on average equity		7.70			6.93			8.50			6.97			10.44			7.53			3.21
Dividend payout ratio		77.78			87.50			71.79			87.50			56.25			80.58			186.21
Net interest margin		3.89			3.70			3.98			3.55			3.58			3.78			3.26
Non-interest expense to total revenue		79.50			80.59			75.83			81.18			71.88			79.21			89.14
Average loans to average total assets		68.72			71.02			72.79			74.15			74.51			71.62			69.34
Average equity to average total assets		11.20			10.98			10.88			10.71			10.43			10.94			9.48
Non-performing loans to total loans		0.55			0.92			0.86			2.38			2.04			0.55			2.04
Loan loss allowance to total loans		1.00			1.02			1.04			1.15			1.16			1.00			1.16
Loan loss allowance to non-performing loans		181.33			111.36			120.38			48.35			56.93			181.33			56.93
Net charge-offs to average loans		0.20			0.21			0.78			0.15			0.15			0.34			0.15