NB&T Financial (NBTF) 8-K NB&T Financial Reports Earnings for Second Quarter 2011

Exhibit 99.1

NB&T Financial Reports Earnings for Second Quarter 2011

July 19, 2011

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 2011 of $1.0 million, or $.31 per share. Net income for the second quarter of 2010 was $1.3 million, or $.37 per share. Net income for the first six months of 2011 was $2.1 million, or $.60 per share, compared to $6.9 million, or $2.02 per share for the same period in 2010. Net income for 2010 was higher largely due to a 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 American National Bank (“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, “In the face of a continuing struggling economy, our second quarter earnings per share was up $0.02 compared to the first quarter. Our deposits grew, and coupled with an increase in our trust assets, our total assets under management again exceeded $900 million. Economic conditions in Southwest Ohio continue to negatively impact both client revenues and their property values. While we were able to liquidate several of our owned real estate parcels, we also had additional clients whose financial conditions continued to deteriorate. We are working with those borrowers who wish to work with us. Through June 30, 2011, we have charged off $1.2 million in loan balances and added $935,000 to our provision for loan losses. Additionally, portions of our non-accruing and other real estate owned are covered under our FDIC loss share.”

Net interest income was $6.1 million for the second quarter of 2011, compared to $6.5 million for the second quarter of 2010. Net interest margin decreased to 3.95% for the second quarter of 2011, compared to 4.03% for the same quarter last year. The net interest margin decreased primarily due to a decline in higher-yielding loans. Average loans outstanding for the second quarter of 2011, which had an average rate of 6.11%, decreased to $408.2 million from $433.3 million from the same quarter last year. Due to the increased liquidity from lower loan demand, the Company was able to lower rates on interest-bearing deposits and reduce higher cost Federal Home Loan Bank debt by $24.5 million, resulting in a decrease in the cost of interest-bearing liabilities from 1.42% for the second quarter of 2010 to 1.00% for the second quarter of 2011. Net interest margin for the first six months of 2011 was 3.90%, compared to 3.91% for the first six months of 2010.

The provision for loan losses for the second quarter of 2011 was $385,000, compared to $525,000 in the same quarter last year. Net charge-offs were $416,000 in the second quarter of 2011, compared to $326,000 in the second quarter of 2010. The provision for loan losses was $935,000 for the first six months of 2011, compared to $960,000 for the first six months of 2010. Net charge-offs for the first six months of 2011 were $1.2 million, compared to $893,000 for the same period last year. Charge-offs in 2011 increased primarily due to the write-down of one commercial real estate loan as a result of a recently updated collateral valuation. The provision for loan losses is based on management’s evaluation of the loan loss allowance considering specific loan reserves, general reserves related to charge-off experience and current economic conditions. Non-performing loans increased to $13.0 million at June 30, 2011, compared to $7.6 million at June 30, 2010. The year-over-year increase in non-performing loans is due primarily to three southwest Ohio commercial relationships, each between $1.0 million and $1.2 million and secured by commercial real estate or all business assets. The remaining increase is primarily due to approximately $1.9 million of ANB acquired loans, which are covered under the Company’s FDIC loss share agreement with the FDIC sharing in 80% of any future losses associated with those loans.

Total non-interest income was $1.9 million for the second quarter of 2011, compared to $2.0 million for the second quarter of 2010. The decline in non-interest income is largely due to reduced NSF fee income. Total non-interest income for the first half of 2011 was $4.5 million, compared to $12.6 million for the first half of 2010. In the first half of 2010, the Company had a bargain purchase pre-tax gain of approximately $7.6 million in the 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. In the first six months of 2011, the Company sold approximately $23.0 million in securities and realized gains of $779,000, compared to securities sales gains of $3,000 for the same period in 2010.

Total non-interest expense was $6.1 million for the second quarter of 2011, compared to $6.3 million for the second quarter of 2010. For the first six months of 2011, non-interest expense was $12.7 million, compared to $13.8 million for the first half of 2010. Non-interest expenses for the first half of 2010 were significantly higher due to increased bonus plan expense and acquisition related expenses.

On June 21, 2011, the Board of Directors declared a dividend of $0.30 per share, payable July 25, 2011 to shareholders of record on June 30, 2011. This dividend represents a 3.4% increase over the $0.29 per share dividend declared in the second quarter of 2010.

SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except per share data)

(Unaudited)

	Three Months Ending															Six Months Ending
	6/30/2011			3/31/2011			12/31/2010			9/30/2010			6/30/2010			6/30/2011			6/30/2010
Statements of Income
Interest income	$	7,348		$	7,310		$	7,731		$	8,069		$	8,350		$	14,658		$	15,813
Interest expense		1,270			1,386			1,737			1,871			1,879			2,656			3,725
Net interest income		6,078			5,924			5,994			6,198			6,471			12,002			12,088
Provision for loan losses		385			550			425			225			525			935			960
Other non-interest income		1,907			1,769			1,892			1,888			2,018			3,676			5,092
Gain on bargain purchase		—			—			—			—			—			—			7,572
Other-than-temporary impairment charge		—			—			—			—			—			—			(50	)
Net gains/(losses) on sales of securities		(10	)		789			—			—			—			779			3
Total non-interest income		1,897			2,558			1,892			1,888			2,018			4,455			12,617
Total non-interest expenses		6,146			6,579			6,502			6,194			6,265			12,725			13,762
Income before income taxes		1,444			1,353			959			1,667			1,699			2,797			9,983
Income taxes		396			348			241			450			429			744			3,109
Net income	$	1,048		$	1,005		$	718		$	1,217		$	1,270		$	2,053		$	6,874
Per Share Data
Basic earnings per share	$	0.31		$	0.29		$	0.20		$	0.36		$	0.37		$	0.60		$	2.02
Diluted earnings per share		0.31			0.29			0.20			0.36			0.37			0.60			2.02
Dividends per share		0.30			0.30			0.30			0.29			0.29			0.60			0.58
Book value at quarter end		20.71			20.49			20.74			20.91			20.73			20.71			20.73
Average basic shares outstanding		3,424			3,424			3,412			3,399			3,396			3,424			3,396
Average diluted shares outstanding		3,436			3,448			3,430			3,400			3,397			3,443			3,396
Balance Sheet Items (Quarter End)
Total assets	$	675,028		$	667,552		$	690,574		$	691,199		$	696,400		$	675,028		$	696,400
Securities		137,071			122,679			133,855			146,060			146,979			137,071			146,979
Loans, including loans held for sale		408,516			408,710			414,978			427,274			434,380			408,516			434,380
Allowance for loan losses		3,475			3,506			3,714			3,935			3,842			3,475			3,842
Deposits		580,730			575,375			584,373			571,723			576,081			580,730			576,081
Borrowings		16,347			16,225			28,089			40,260			40,188			16,347			40,188
Total shareholders’ equity		70,903			70,148			71,019			71,301			70,699			70,903			70,699
Assets Under Management
Total assets	$	675,028		$	667,552		$	690,574		$	691,199		$	696,400		$	675,028		$	696,400
Cash management sweep accounts		38,842			47,167			37,338			46,765			43,737			38,842			43,737
Market value of trust assets		200,337			171,844			172,162			164,628			154,506			200,337			154,506
Total assets under management	$	914,207		$	886,563		$	900,074		$	902,592		$	894,643		$	914,207		$	894,643
Selected Financial Ratios
Return on average assets (annualized)		0.62	%		0.60	%		0.40	%		0.69	%		0.72	%		0.61	%		2.03	%
Return on average equity (annualized)		5.97			5.72			3.97			6.79			7.24			5.84			20.43
Dividend payout ratio		96.77			103.45			150.00			80.56			78.38			100.00			28.71
Net interest margin		3.95			3.84			3.69			3.84			4.03			3.90			3.91
Non-interest expense to total revenue		77.07			77.56			82.45			76.60			73.80			77.32			55.71
Average loans to average total assets		60.51			59.94			59.52			61.82			61.54			60.20			60.47
Asset Quality
Nonaccrual loans	$	11,452		$	10,023		$	9,490		$	8,847		$	7,587		$	11,452		$	7,587
Accruing and 90 or more days past due		1,049			1,038			1,037			—			1			1,049			1
Restructured loans		452			455			457			—			—			452			—
Total nonperforming loans	$	12,953		$	11,516		$	10,984		$	8,847		$	7,588		$	12,953		$	7,588
Other real estate owned		4,175			4,658			4,254			3,995			3,894			4,175			3,894
Net charge-offs		415			759			645			132			326			1,174			893
Non-performing loans to total loans		3.17	%		2.82	%		2.65	%		2.07	%		1.75	%		3.17	%		1.75	%
Loan loss allowance to total loans		0.85			0.86			0.89			0.92			0.88			0.85			0.88
Loan loss allowance to non-performing loans		26.83			30.45			33.81			44.48			50.63			26.83			50.63
Loans 30+ days past due to total loans		0.75			1.18			0.87			0.70			0.81			0.75			0.81
Net charge-offs to average loans		0.41			0.75			0.61			0.12			0.58			0.58			0.44
Capital
Average equity to average total assets		10.44	%		10.42	%		10.18	%		10.16	%		9.98	%		10.44	%		9.92	%
Tier 1 leverage ratio**		11.17			10.99			10.65			10.68			10.55			11.17			10.55
Total risk-based capital ratio**		18.51			18.57			18.36			18.10			17.95			18.51			17.95

** Estimated for current quarter end