NB&T Financial (NBTF) 8-K NB&T Financial Reports Earnings for Second Quarter 2013

Exhibit 99.1

NB&T Financial Reports Earnings for Second Quarter 2013

July 16, 2013

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 2013 of $1.1 million, or $.33 per share, compared to net income of $1.2 million, or $.33 per share, for the second quarter of 2012. Net income declined primarily due to an approximately $1.0 million increase in the loan loss provision and continued margin compression, partially offset by gains on security sales of $817,000 and gain on extinguishment of long-term debt of approximately $300,000. Net income for the first six months of 2013 was $2.2 million, or $.63 per share, compared to $1.5 million, or $.44 per share, for the same period in 2012.

Comparing the first half of 2013 to 2012, President & CEO, John Limbert, commented, “The low interest rate environment is continuing to negatively impact our margin. In addition, we continue to invest considerable time and talent resolving loans with certain clients experiencing financial problems. While our non-performing loans have decreased by over 25% year over year, based on our ongoing analysis of those loans, we recorded additional loan loss provisions this quarter. At June 30, 2013, the total allowance for loan losses is $5.8 million, representing 1.4% of total loans.”

Net interest income was $5.1 million for the second quarter of 2013, compared to $5.4 million for the second quarter of 2012. Net interest margin decreased to 3.34% for the second quarter of 2013, compared to 3.38% for the same quarter last year. The net interest margin decreased primarily due to continued repricing of new and variable-rate assets to lower rates. Net interest income for the first half of 2013 was $10.5 million, compared to $10.9 million for the first half of 2012.

The provision for loan losses for the second quarter of 2013 was $1.3 million, compared to $332,000 in the same quarter last year. Net charge-offs were $167,000 in the second quarter of 2013, compared to $397,000 in the second quarter of 2012. Year to date net charge-offs for 2013 were $397,000, compared to $1.8 million for the first six months of 2012. The provision for loan losses for the six months ended June 30, 2013 was increased to add specific loan reserves of approximately $1.2 million for one commercial loan, bringing the total specific reserve on this loan to $2.0 million. The borrower’s financial condition has weakened, and the reserve is based on the estimated value of the accounts receivable not pledged to third parties and inventory securing the loan. Non-performing loans were $9.1 million at June 30, 2013, compared to $12.1 million at June 30, 2012.

Total non-interest income was $3.3 million for the second quarter of 2013, compared to $2.3 million for the second quarter of 2012. The increase is primarily due to a gain of $300,000 realized on the extinguishment of $1.0 million in trust preferred debt at a market discount in June 2013. In addition, in the second quarter of 2013, the Company also realized approximately $817,000 in securities sale gains, compared to $161,000 in securities sale gains in the second quarter of last year. In June 2013, the Company sold approximately $20.0 million in agency, mortgage-backed and taxable municipal securities to take advantage of current market pricing. Non-interest income for the first six months of 2013 was $5.2 million, compared to $4.4 million for the same period last year.

Total non-interest expense was $5.6 million for the second quarter of 2013, compared to $5.8 million for the second quarter of 2012. The decline in expense is due to continued focus on expense reduction primarily in the areas of personnel and processing efficiency. In addition, net costs associated with the operation of other real estate have declined approximately 44%, or $101,000, compared to the same quarter last year, due to a decline in other real estate owned balances from $3.0 million at June 30, 2012 to $1.9 million at June 30, 2013.

On June 18, 2013, the Board of Directors declared a dividend of $0.30 per share, payable July 22, 2013 to shareholders of record on June 28, 2013.

SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except per share data)

(Unaudited)

	Three Months Ending															Six Months Ending
	6/30/2013			3/31/2013			12/31/2012			9/30/2012			6/30/2012			6/30/2013			6/30/2012
Statements of Income
Interest income	$	5,586		$	5,896		$	6,277		$	6,197		$	6,278		$	11,482		$	12,805
Interest expense		473			519			560			749			896			992			1,860
Net interest income		5,113			5,377			5,717			5,448			5,382			10,490			10,945
Provision for loan losses		1,300			140			682			1,973			332			1,440			1,632
Other non-interest income		2,450			1,986			2,133			2,977			2,176			4,436			4,292
Other-than-temporary impairment charge		—			—			—			—			(35	)		—			(35	)
Net gains (losses) on sales of securities		817			(36	)		—			1,013			161			781			161
Total non-interest income		3,267			1,950			2,133			3,990			2,302			5,217			4,418
Total non-interest expenses		5,605			5,886			5,745			5,934			5,801			11,491			11,815
Income before income taxes		1,475			1,301			1,423			1,531			1,551			2,776			1,916
Income taxes		336			282			336			257			396			618			400
Net income	$	1,139		$	1,019		$	1,087		$	1,274		$	1,155		$	2,158		$	1,516
Per Share Data
Basic earnings per share	$	0.33		$	0.30		$	0.32		$	0.37		$	0.33		$	0.63		$	0.44
Diluted earnings per share		0.33			0.30			0.32			0.37			0.33			0.63			0.44
Dividends per share		0.30			0.30			0.30			0.30			0.30			0.60			0.60
Book value at quarter end		19.83			20.58			20.70			20.79			20.72			19.83			20.72
Average basic shares outstanding		3,415			3,420			3,422			3,424			3,425			3,418			3,425
Average diluted shares outstanding		3,426			3,427			3,426			3,432			3,431			3,426			3,433
Balance Sheet Items (Quarter End)
Total assets	$	659,827		$	673,729		$	651,075		$	669,838		$	687,226		$	659,827		$	687,226
Securities		134,154			144,156			133,020			137,998			156,161			134,154			156,161
Loans, including loans held for sale		410,202			407,818			402,184			400,036			396,500			410,202			396,500
Allowance for loan losses		5,803			4,670			4,760			6,135			4,508			5,803			4,508
Deposits		572,926			577,349			559,568			576,348			592,979			572,926			592,979
Borrowings		14,310			15,310			15,310			15,310			15,310			14,310			15,310
Total shareholders’ equity		67,682			70,290			70,820			71,153			70,955			67,682			70,955
Assets Under Management
Total assets	$	659,827		$	673,729		$	651,075		$	669,838		$	687,226		$	659,827		$	687,226
Cash management sweep accounts		38,019			40,799			28,471			37,477			40,739			38,019			40,739
Market value of trust assets		237,884			238,532			216,914			215,743			193,906			237,884			193,906
Market value of brokerage assets		76,668			77,707			73,178			71,417			67,082			76,668			67,082
Loans serviced for others		42,496			43,626			47,735			48,984			53,419			42,496			53,419
Total assets under management	$	1,054,894		$	1,074,393		$	1,017,373		$	1,043,459		$	1,042,372		$	1,054,894		$	1,042,372
Selected Financial Ratios
Return on average assets (annualized)		0.69	%		0.61	%		0.65	%		0.74	%		0.67	%		0.65	%		0.44	%
Return on average equity (annualized)		6.48			5.81			6.06			7.10			6.30			6.15			4.30
Dividend payout ratio		90.91			100.00			93.75			81.08			90.91			95.24			136.36
Net interest margin		3.34			3.50			3.67			3.42			3.38			3.42			3.42
Non-interest expense to total revenue		66.89			80.33			73.18			62.87			75.49			73.16			76.91
Average loans to average total assets		61.10			59.42			59.82			57.80			56.87			60.27			56.57
Asset Quality
Nonaccrual loans	$	9,006		$	9,097		$	9,815		$	12,179		$	11,962		$	9,006		$	11,962
Accruing and 90 or more days past due		73			1,285			778			247			165			73			165
Total nonperforming loans	$	9,079		$	10,382		$	10,593		$	12,426		$	12,127		$	9,079		$	12,127
Other real estate owned		1,894			1,868			1,327			2,196			3,032			1,894			3,032
Net charge-offs		167			230			2,057			346			397			397			1,792
Non-performing loans to total loans		2.21	%		2.55	%		2.63	%		3.11	%		3.06	%		2.21	%		3.06	%
Loan loss allowance to total loans		1.42			1.15			1.18			1.53			1.14			1.42			1.14
Loan loss allowance to non-performing loans		63.92			44.98			44.94			49.37			37.17			63.92			37.17
Accruing loans 30+ days past due to total loans		0.57			0.59			0.46			0.64			0.36			0.57			0.36
Net charge-offs to average loans		0.16			0.23			2.04			0.35			0.41			0.20			0.91
Capital
Average equity to average total assets		10.60	%		10.54	%		10.64	%		10.38	%		10.66	%		10.60	%		10.66	%
Tier 1 leverage ratio**		11.19			11.20			11.27			10.97			10.80			11.19			10.80
Total risk-based capital ratio**		18.95			19.08			19.51			19.51			19.20			18.95			19.20

** Estimated for current quarter end