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

Exhibit 99.1

NB&T Financial Reports Earnings for Third Quarter 2013

October 15, 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 third quarter of 2013 of $1.1 million, or $.31 per share, compared to net income of $1.3 million, or $.37 per share, for the third quarter of 2012. Non-interest income was higher in the third quarter of 2012 due to three items: 1) gains of approximately $1 million realized on the sale of securities; 2) termination of the Bank’s single-family FDIC loss share guarantee for approximately $405,000, and 3) realization of non-taxable income of approximately $359,000 on a bank-owned life insurance death benefit in excess of surrender value. These items were partially offset by a $1.5 million higher loan loss provision in the third quarter last year, compared to the same quarter this year. In addition, net income is down due to continued margin compression, partially offset by lower non-interest expenses. Net income for the first nine months of 2013 was $3.2 million, or $.94 per share, compared to $2.8 million, or $.81 per share, for the same period in 2012.

Comparing the first nine months of 2013 to 2012, President & CEO, John Limbert, commented, “The net interest margin in this rate environment continues to be a challenge. Fortunately, we have been able to reduce non-interest expenses to offset most of the margin decrease. Additionally, our asset quality measures are improved and contributed to a lower loan loss provision through the first nine months of 2013, compared to the same period last year.”

Net interest income was $5.1 million for the third quarter of 2013, compared to $5.4 million for the third quarter of 2012. Net interest margin decreased to 3.33% for the third quarter of 2013, compared to 3.42% 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 nine months of 2013 was $15.6 million, compared to $16.4 million for the first nine months of 2012.

The provision for loan losses for the third quarter of 2013 was $400,000, compared to $2.0 million in the same quarter last year. Net charge-offs were $319,000 in the third quarter of 2013, compared to $346,000 in the third quarter of 2012. Year to date net charge-offs for 2013 were $716,000, compared to $2.1 million for the first nine months of 2012. The provision for loan losses for the nine months ended September 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. Non-performing loans were $8.3 million at September 30, 2013, compared to $12.4 million at September 30, 2012.

Total non-interest income was $2.1 million for the third quarter of 2013, compared to $4.0 million for the third quarter of 2012. The decrease is primarily due to the realization of approximately $1.0 million in securities sale gains in the third quarter last year. No securities were sold in the third quarter of 2013. In addition, the Company realized non-recurring income of $764,000 in the third quarter of 2012 related to the termination of the single-family FDIC loss share guarantee and the bank-owned life insurance death benefit. Non-interest income for the first nine months of 2013 was $7.4 million, compared to $8.4 million for the same period last year.

Total non-interest expense was $5.5 million for the third quarter of 2013, compared to $5.9 million for the third 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 74%, or $176,000, compared to the same quarter last year due to a decline in other real estate owned balances from $2.2 million at September 30, 2012 to $1.4 million at September 30, 2013.

On September 17, 2013, the Board of Directors declared a dividend of $0.30 per share, payable October 21, 2013 to shareholders of record on September 30, 2013.

SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS

(in thousands, except per share data)

(Unaudited)

	Three Months Ending															Nine Months Ending
	9/30/2013			6/30/2013			3/31/2013			12/31/2012			9/30/2012			9/30/2013			9/30/2012
Statements of Income
Interest income	$	5,510		$	5,586		$	5,896		$	6,277		$	6,197		$	16,992		$	19,002
Interest expense		438			473			519			560			749			1,430			2,609
Net interest income		5,072			5,113			5,377			5,717			5,448			15,562			16,393
Provision for loan losses		400			1,300			140			682			1,973			1,840			3,605
Other non-interest income		2,147			2,450			1,986			2,133			2,977			6,583			7,269
Other-than-temporary impairment charge		—			—			—			—			—			—			(35	)
Net gains (losses) on sales of securities		—			817			(36	)		—			1,013			781			1,174
Total non-interest income		2,147			3,267			1,950			2,133			3,990			7,364			8,408
Total non-interest expenses		5,523			5,605			5,886			5,745			5,934			17,014			17,749
Income before income taxes		1,296			1,475			1,301			1,423			1,531			4,072			3,447
Income taxes		228			336			282			336			257			846			657
Net income	$	1,068		$	1,139		$	1,019		$	1,087		$	1,274		$	3,226		$	2,790
Per Share Data
Basic earnings per share	$	0.31		$	0.33		$	0.30		$	0.32		$	0.37		$	0.94		$	0.81
Diluted earnings per share		0.31			0.33			0.30			0.32			0.37			0.94			0.81
Dividends per share		0.30			0.30			0.30			0.30			0.30			0.90			0.90
Book value at quarter end		19.89			19.83			20.58			20.70			20.79			19.83			20.79
Average basic shares outstanding		3,416			3,415			3,420			3,422			3,424			3,417			3,424
Average diluted shares outstanding		3,438			3,426			3,427			3,426			3,432			3,429			3,432
Balance Sheet Items (Quarter End)
Total assets	$	645,410		$	659,827		$	673,729		$	651,075		$	669,838		$	645,410		$	669,838
Securities		138,818			134,154			144,156			133,020			137,998			138,818			137,998
Loans, including loans held for sale		404,545			410,202			407,818			402,184			400,036			404,545			400,036
Allowance for loan losses		5,884			5,803			4,670			4,760			6,135			5,884			6,135
Deposits		558,075			572,926			577,349			559,568			576,348			558,075			576,348
Borrowings		14,310			14,310			15,310			15,310			15,310			14,310			15,310
Total shareholders’ equity		68,127			67,682			70,290			70,820			71,153			68,127			71,153
Assets Under Management
Total assets	$	645,410		$	659,827		$	673,729		$	651,075		$	669,838		$	645,410		$	669,838
Cash management sweep accounts		44,852			38,019			40,799			28,471			37,477			44,852			37,477
Market value of trust assets		246,043			237,884			238,532			216,914			215,743			246,043			215,743
Market value of brokerage assets		78,757			76,668			77,707			73,178			71,417			78,757			71,417
Loans serviced for others		43,024			42,496			43,626			47,735			48,984			43,024			48,984
Total assets under management	$	1,058,086		$	1,054,894		$	1,074,393		$	1,017,373		$	1,043,459		$	1,058,086		$	1,043,459
Selected Financial Ratios
Return on average assets (annualized)		0.65	%		0.69	%		0.61	%		0.65	%		0.74	%		0.65	%		0.54	%
Return on average equity (annualized)		6.22			6.48			5.81			6.06			7.10			6.17			5.24
Dividend payout ratio		96.77			90.91			100.00			93.75			81.08			95.74			111.11
Net interest margin		3.33			3.34			3.50			3.67			3.42			3.39			3.42
Non-interest expense to total revenue		76.51			66.89			80.33			73.18			62.87			74.21			71.57
Average loans to average total assets		62.32			61.10			59.42			59.82			57.80			60.97			56.99
Asset Quality
Nonaccrual loans	$	8,273		$	9,006		$	9,097		$	9,815		$	12,179		$	8,273		$	12,179
Accruing and 90 or more days past due		30			73			1,285			778			247			30			247
Total nonperforming loans	$	8,303		$	9,079		$	10,382		$	10,593		$	12,426		$	8,303		$	12,426
Other real estate owned		1,426			1,894			1,868			1,327			2,196			1,426			2,196
Net charge-offs		319			167			230			2,057			346			716			2,138
Non-performing loans to total loans		2.05	%		2.21	%		2.55	%		2.63	%		3.11	%		2.05	%		3.11	%
Loan loss allowance to total loans		1.46			1.42			1.15			1.18			1.53			1.46			1.53
Loan loss allowance to non-performing loans		70.87			63.92			44.98			44.94			49.37			70.87			49.37
Accruing loans 30+ days past due to total loans		0.25			0.57			0.59			0.46			0.64			0.25			0.64
Net charge-offs to average loans		0.31			0.16			0.23			2.04			0.35			0.24			0.72
Capital
Average equity to average total assets		10.43	%		10.60	%		10.54	%		10.64	%		10.38	%		10.43	%		10.38	%
Tier 1 leverage ratio**		11.50			11.23			11.20			11.27			10.97			11.50			10.97
Total risk-based capital ratio**		19.45			18.98			19.08			19.51			19.51			19.45			19.51

** Estimated for current quarter end