Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - NB&T FINANCIAL GROUP INC | d715483d8k.htm |
Exhibit 99.1
NB&T Financial Reports Earnings for First Quarter 2014
April 22, 2014
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 first quarter of 2014 of $1.1 million, or $.32 per share. Net income for the first quarter of 2013 was $1.0 million, or $.30 per share. Net income increased primarily due to a $280,000 reduction in operating costs, offset by a $135,000 increase in the provision for loan losses and continued margin compression.
Net interest income was $5.2 million for the first quarter of 2014, compared to $5.4 million for the first quarter of 2013. Net interest margin decreased to 3.48% for the first quarter of 2014, compared to 3.50% for the same quarter last year. The net interest margin decreased primarily due to continued repricing of new and variable-rate loans to lower rates. The decrease in loan yield was partially offset by an increase in investment yields due to increased investment in longer term tax-exempt municipals and slower prepayments on mortgage related securities.
The provision for loan losses for the first quarter of 2014 was $275,000, compared to $140,000 in the same quarter last year. Net charge-offs were $318,000 in the first quarter of 2014, compared to $230,000 in the first quarter of 2013. Despite the increase in charge-offs, asset quality improved during the quarter. Non-performing loans declined to $4.7 million at March 31, 2014, compared to $5.8 million and $10.4 million at December 31, 2013 and March 31, 2013 respectively, due primarily to the resolution of problem loans. Other real estate owned also decreased to $1.0 million at March 31, 2014 from $1.2 million and $1.9 million at December 31, 2013 and March 31, 2013, respectively.
President & CEO, John Limbert, commented, “The current year is off to a better start than last year, earnings are up and problem assets are down over 50% from the same time last year. We even recovered approximately $186,000 of non-accrued interest on a problem loan resolved during the quarter.”
Total non-interest income was $2.0 million for the first quarter of 2014, compared to $2.0 million for the first quarter of 2013. In the first quarter of 2014, the Company experienced an $81,000 decline in NSF fees due to higher deposit balances, which lowered the number of NSF items, partially offset by a $68,000 increase in trust income compared to same quarter last year.
Total non-interest expense was $5.6 million for the first quarter of 2014, compared to $5.9 million for the first quarter of 2013. The expense decrease is primarily due to a $201,000 decrease in net costs associated with the operation of other real estate and a decrease of approximately $79,000 in state taxes due to Ohio’s new financial institution tax replacing Ohio’s bank franchise tax.
On March 18, 2014, the Board of Directors declared a dividend of $0.30 per share, payable April 21, 2014 to shareholders of record on March 31, 2014.
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(Unaudited)
| Three Months Ending | ||||||||||||||||||||
| 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
| Statements of Income |
||||||||||||||||||||
| Interest income |
$ | 5,623 | $ | 5,480 | $ | 5,510 | $ | 5,586 | $ | 5,896 | ||||||||||
| Interest expense |
376 | 414 | 438 | 473 | 519 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net interest income |
5,247 | 5,066 | 5,072 | 5,113 | 5,377 | |||||||||||||||
| Provision for loan losses |
275 | 750 | 400 | 1,300 | 140 | |||||||||||||||
| Other non-interest income |
1,968 | 2,051 | 2,147 | 2,450 | 1,986 | |||||||||||||||
| Other-than-temporary impairment charge |
— | — | — | — | — | |||||||||||||||
| Net gains (losses) on sales of securities |
— | 227 | — | 817 | (36 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total non-interest income |
1,968 | 2,278 | 2,147 | 3,267 | 1,950 | |||||||||||||||
| Total non-interest expenses |
5,603 | 5,377 | 5,523 | 5,605 | 5,886 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income before income taxes |
1,337 | 1,217 | 1,296 | 1,475 | 1,301 | |||||||||||||||
| Income taxes |
251 | 200 | 228 | 336 | 282 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
$ | 1,086 | $ | 1,017 | $ | 1,068 | $ | 1,139 | $ | 1,019 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Per Share Data |
||||||||||||||||||||
| Basic earnings per share |
$ | 0.32 | $ | 0.30 | $ | 0.31 | $ | 0.33 | $ | 0.30 | ||||||||||
| Diluted earnings per share |
0.32 | 0.30 | 0.31 | 0.33 | 0.30 | |||||||||||||||
| Dividends per share |
0.30 | 0.30 | 0.30 | 0.30 | 0.30 | |||||||||||||||
| Book value at quarter end |
20.25 | 19.84 | 19.89 | 19.83 | 20.58 | |||||||||||||||
| Average basic shares outstanding |
3,430 | 3,426 | 3,416 | 3,415 | 3,420 | |||||||||||||||
| Average diluted shares outstanding |
3,437 | 3,436 | 3,438 | 3,426 | 3,427 | |||||||||||||||
| Balance Sheet Items (Quarter End) |
||||||||||||||||||||
| Total assets |
$ | 660,964 | $ | 638,312 | $ | 645,410 | $ | 659,827 | $ | 673,729 | ||||||||||
| Securities |
154,848 | 138,098 | 138,818 | 134,154 | 144,156 | |||||||||||||||
| Loans, including loans held for sale |
389,945 | 399,496 | 404,545 | 410,202 | 407,818 | |||||||||||||||
| Allowance for loan losses |
4,010 | 4,053 | 5,884 | 5,803 | 4,670 | |||||||||||||||
| Deposits |
572,127 | 550,800 | 558,075 | 572,926 | 577,349 | |||||||||||||||
| Borrowings |
14,310 | 14,310 | 14,310 | 14,310 | 15,310 | |||||||||||||||
| Total shareholders’ equity |
69,443 | 68,035 | 68,127 | 67,682 | 70,290 | |||||||||||||||
| Assets Under Management |
||||||||||||||||||||
| Total assets |
$ | 660,964 | $ | 638,312 | $ | 645,410 | $ | 659,827 | $ | 673,729 | ||||||||||
| Cash management sweep accounts |
48,209 | 44,039 | 44,852 | 38,019 | 40,799 | |||||||||||||||
| Market value of trust assets |
256,835 | 254,403 | 246,043 | 237,884 | 238,532 | |||||||||||||||
| Market value of brokerage assets |
82,025 | 80,321 | 78,757 | 76,668 | 77,707 | |||||||||||||||
| Loans serviced for others |
40,879 | 41,794 | 43,024 | 42,496 | 43,626 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets under management |
$ | 1,088,912 | $ | 1,058,869 | $ | 1,058,086 | $ | 1,054,894 | $ | 1,074,393 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Selected Financial Ratios |
||||||||||||||||||||
| Return on average assets (annualized) |
0.67 | % | 0.62 | % | 0.65 | % | 0.69 | % | 0.61 | % | ||||||||||
| Return on average equity (annualized) |
6.44 | 5.90 | 6.22 | 6.48 | 5.81 | |||||||||||||||
| Dividend payout ratio |
93.75 | 100.00 | 96.77 | 90.91 | 100.00 | |||||||||||||||
| Net interest margin |
3.48 | 3.33 | 3.33 | 3.34 | 3.50 | |||||||||||||||
| Non-interest expense to total revenue |
77.66 | 73.22 | 76.51 | 66.89 | 80.33 | |||||||||||||||
| Average loans to average total assets |
59.37 | 61.25 | 62.32 | 61.10 | 59.42 | |||||||||||||||
| Asset Quality |
||||||||||||||||||||
| Nonaccrual loans |
$ | 4,640 | $ | 5,734 | $ | 8,273 | $ | 9,006 | $ | 9,097 | ||||||||||
| Accruing and 90 or more days past due |
19 | 32 | 30 | 73 | 1,285 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total nonperforming loans |
$ | 4,659 | $ | 5,766 | $ | 8,303 | $ | 9,079 | $ | 10,382 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Other real estate owned |
1,050 | 1,224 | 1,426 | 1,894 | 1,868 | |||||||||||||||
| Net charge-offs |
318 | 2,581 | 319 | 167 | 230 | |||||||||||||||
| Non-performing loans to total loans |
1.19 | % | 1.44 | % | 2.05 | % | 2.21 | % | 2.55 | % | ||||||||||
| Loan loss allowance to total loans |
1.03 | 1.01 | 1.46 | 1.42 | 1.15 | |||||||||||||||
| Loan loss allowance to non-performing loans |
86.07 | 70.29 | 70.87 | 63.92 | 44.98 | |||||||||||||||
| Accruing loans 30+ days past due to total loans |
0.08 | 0.05 | 0.25 | 0.57 | 0.59 | |||||||||||||||
| Net charge-offs to average loans |
0.33 | 2.57 | 0.31 | 0.16 | 0.23 | |||||||||||||||
| Capital |
||||||||||||||||||||
| Average equity to average total assets |
10.36 | % | 10.49 | % | 10.43 | % | 10.60 | % | 10.54 | % | ||||||||||
| Tier 1 leverage ratio** |
11.44 | 11.56 | 11.49 | 11.23 | 11.20 | |||||||||||||||
| Total risk-based capital ratio** |
19.46 | 19.10 | 19.22 | 18.98 | 19.08 | |||||||||||||||
| ** | Estimated for current quarter end |