SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2002
NB&T FINANCIAL GROUP, INC.
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(Exact name of registrant as specified in its charter)
OHIO 0-23134 31-1004998
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(State or other jurisdiction of (Commission File No.) (IRS Employer I.D. No.)
incorporation)
48 N. South Street, Wilmington, Ohio 45177
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (937) 382-1441
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ITEM 5. OTHER EVENTS.
The following was contained in a press release issued by NB&T Financial Group,
Inc., on or about July 24, 2002.
NB&T Financial Group, Inc. (Company), parent company of The National Bank and
Trust Company, Wilmington, Ohio, (Bank) announced that net income per share
increased 29.2% to $.62 for the second quarter of 2002, from $.48 per share for
the second quarter of 2001. Net income for the quarter increased to $1.90
million, compared to $1.54 million for the same quarter last year. Net income
per share was $1.11 for the first six months of 2002, an increase of 19.4%,
compared to $.93 through the same date in 2001. Net income was $3.44 million
through June 30, 2002, an increase of 15.3% from 2001.
Net interest income increased 34.8% to $6.04 million during the second quarter
of 2002 compared to $4.48 million during the same quarter last year. Although
interest income was approximately the same, interest expense decreased 26.6%
when comparing these two amounts to the same period last year. Average loans
increased 5.4% to $384.7 million, while their average yield decreased from 8.29%
in the second quarter of 2001 to 7.64% in the second quarter of 2002. Average
securities increased 34.8% to $229.3 million, but their average tax-equivalent
yield decreased from 7.03% for the second quarter last year to 5.70% for the
second quarter of this year. Average interest-bearing liabilities increased
11.3% to $566.7 million from last year, and were primarily invested in the
securities portfolio. The cost of interest-bearing liabilities decreased from
4.66% during the second quarter of last year to 3.07% in the second quarter of
this year. Year to date net interest income increased 28.6% during the first
half of 2002 compared to the first half of last year.
Non-interest income, excluding securities gains, was $2.27 million, 18.8% above
the second quarter of 2001. Also, $34,000 in gains on the sale of securities was
recorded in the second quarter of 2002 compared to $260,000 in the second
quarter of 2001. The increase in non-interest income was primarily due to
increases in service charges on deposits, Bank Owned Life Insurance (BOLI)
income and insurance agency commissions. The increase in BOLI income was related
to a death benefit claim. Year-to-date non-interest income, excluding securities
gains, was $4.23 million, 17.0% above the first half of 2001.
Non-interest expense increased 25.6% from the second quarter of last year, the
primary reasons being increases in salaries and benefits expense, occupancy and
equipment expense, and amortization of intangibles related to the opening of
three new branches, the acquisition of The Sabina Bank, and the acquisition of
two insurance agencies during 2001. For the first six months of 2002,
non-interest expense was $10.80 million, 25.9% above the first six months of
2001.
Performance ratios for the second quarter of 2002 included a return on assets of
1.13%, and a return on equity of 14.83%. For the first half of 2002, return on
assets was 1.02%, and return on equity was 13.50%.
During the second quarter of 2002, the Company participated in a securities sale
commonly referred to as a "pooled trust preferred securities offering." In that
offering, the Company issued to a trust controlled by the Company $8.248 million
in thirty-year debt securities at a rate of interest adjustable quarterly equal
to the three-month LIBOR rate plus 3.45% (currently 5.34%), and the trust issued
capital securities to an unrelated party. The securities issued by the Company
are classified as Tier 1 capital for regulatory purposes, and the interest is
deductible for federal income tax purposes. The Company made a capital
contribution of $8 million of these funds to the Bank to improve its regulatory
capital ratios.
Total assets grew 12.1% from June 30, 2001, to $680.0 million. Net loans were
$380.6 million, an increase of 6.3% from June 30, 2001, and total deposits
increased 9.4% to $474.1 million. Book value per share was $17.03 and equity to
assets was 8.04% as of June 30, 2002.
On June 18, 2002 the Board of Directors declared a dividend of $0.23 per share
payable July 25, 2002, to shareholders of record on June 30, 2002. This is an
increase of 9.5% from the second quarter of 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NB&T Financial Group, Inc.
By: /s/ Charles L. Dehner
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Charles L. Dehner
Executive Vice President,
Chief Financial Officer
Date: July 24, 2002