NB&T FINANCIAL GROUP INC (NBTF, Financial) filed Quarterly Report for the period ended 2010-03-31.
Nb&t Financial Group Inc has a market cap of $61.2 million; its shares were traded at around $17.9499 with a P/E ratio of 18 and P/S ratio of 1.7. The dividend yield of Nb&t Financial Group Inc stocks is 6.4%.
On March 19, 2010, NB&T acquired the banking operations of ANB, located in Parma, Ohio, through a purchase and assumption agreement with the FDIC. NB&T acquired approximately $65 million in assets, including $48 million in loans and $65 million in deposits. No premium was paid on the deposits. In addition to assuming all of the deposits, NB&T agreed to purchase substantially all of the assets of ANB at a $10 million discount. Additionally, the FDIC is obligated to reimburse NB&T for 80% of losses of up to $8 million with respect to covered assets and will reimburse NB&T for 95% of losses that exceed $8 million according to the loss sharing agreements. Based upon the estimated fair value of the assets and liabilities assumed, including the estimated value of the loss sharing agreements, NB&T recorded pre-tax bargain purchase gain of approximately $7.6 million and $5.0 million after tax.
The provision for loan losses for the first quarter of 2010 was $435,000, compared to $250,000 in the same quarter last year. Net charge-offs were $567,000 in the first quarter of 2010, compared to $703,000 in the first quarter of 2009. Charge-offs in 2010 included one commercial real estate development loan charge-off of $300,000 for which $300,000 in specific reserves had been previously allocated. The provision for loan losses was increased to add specific loan reserves and increase the general allowance due to estimating the impact of current economic conditions based on recent delinquency trends in the commercial real estate portfolio. The commercial real estate development loan plus other real estate owned acquired in the ANB transaction of approximately $325,000 increased other real estate owned to $4.1 million at March 31, 2010 from $3.5 million at December 31, 2009. Non-performing loans decreased approximately $100,000 during the first quarter of 2010 to $6.8 million.
Average total assets increased $132.4 million, or 25.0%, to $663.0 million from the first quarter of 2009. Average total gross loans increased to $394.4 million, an increase of $63.8 million from the same quarter last year. The increase is largely the result of the acquisition of CNB on December 31, 2009 with $59.2 million in loans acquired. The loans acquired from CNB consisted of $22.6 million in commercial loans and $36.6 million in 1-4 family mortgage loans. In addition, the purchase of ANBs business added $42.2 million in loans on March 19, 2010. A majority of the loans acquired from ANB were commercial real estate. Although commercial real estate loan volume increased throughout 2009 and 2010 as many business borrowers sought out new lenders, outstanding balances for residential mortgages and consumer loans declined. Residential mortgage balances, excluding those acquired from CNB, declined due to increased sales of fixed-rate loans into the secondary market, and consumer loans continued to decline due to the Companys departure from the indirect lending market in 2006. The excess funds from the slower loan volume were reinvested in securities, which increased to $152.5 million on average in the first quarter of 2010, an increase of $10.1 million from the same quarter last year. In addition, excess funds have been invested in interest-bearing deposits, which have increased $19.0 million on average, from the same quarter last year.
Average total deposit liabilities increased $126.0 million for the first quarter of 2010 to $554.5 million, compared to an average of $428.5 million for the same quarter last year. Deposits of $75.5 million, including transaction accounts of $22.5 million and $53.0 million in non-transaction accounts, were acquired from CNB in December of 2009, and $64.7 million, including $8.0 million in transaction accounts and $56.7 million in non-transaction accounts, were acquired from ANB in March of 2010. ANBs deposits included approximately $40.0 million in out-of-state deposits, which the Company did not expect to retain long term. As of March 31, 2010, approximately $20.0 million of the deposits acquired from ANB were withdrawn from the Bank as part of the Banks strategy to lower the pricing on certain high-rate accounts and manage its overall liquidity position. The Company has experienced little runoff in the deposits acquired from CNB.
During the first quarter of 2010, the Company foreclosed on a $1.2 million commercial real estate loan for which specific reserves of $300,000 had been previously allocated. Approximately $300,000 was charged off with the balance of $900,000 transferred to other real estate owned. As of March 31, 2010, there was $4.4 million in small business relationships on nonaccrual. The majority of this amount consisted of two relationships. In addition, the Company had one renegotiated loan of approximately $942,000 secured by commercial real estate where the loan payments were lowered temporarily to assist the borrower with short-term cash flow issues.
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Nb&t Financial Group Inc has a market cap of $61.2 million; its shares were traded at around $17.9499 with a P/E ratio of 18 and P/S ratio of 1.7. The dividend yield of Nb&t Financial Group Inc stocks is 6.4%.
Highlight of Business Operations:
Net income for the first quarter of 2010 increased to $5.6 million, or $1.65 per share, from net income of $659,000, or $.21 per share, for the first quarter of 2009. Net income for the quarter was up primarily due to the 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.On March 19, 2010, NB&T acquired the banking operations of ANB, located in Parma, Ohio, through a purchase and assumption agreement with the FDIC. NB&T acquired approximately $65 million in assets, including $48 million in loans and $65 million in deposits. No premium was paid on the deposits. In addition to assuming all of the deposits, NB&T agreed to purchase substantially all of the assets of ANB at a $10 million discount. Additionally, the FDIC is obligated to reimburse NB&T for 80% of losses of up to $8 million with respect to covered assets and will reimburse NB&T for 95% of losses that exceed $8 million according to the loss sharing agreements. Based upon the estimated fair value of the assets and liabilities assumed, including the estimated value of the loss sharing agreements, NB&T recorded pre-tax bargain purchase gain of approximately $7.6 million and $5.0 million after tax.
The provision for loan losses for the first quarter of 2010 was $435,000, compared to $250,000 in the same quarter last year. Net charge-offs were $567,000 in the first quarter of 2010, compared to $703,000 in the first quarter of 2009. Charge-offs in 2010 included one commercial real estate development loan charge-off of $300,000 for which $300,000 in specific reserves had been previously allocated. The provision for loan losses was increased to add specific loan reserves and increase the general allowance due to estimating the impact of current economic conditions based on recent delinquency trends in the commercial real estate portfolio. The commercial real estate development loan plus other real estate owned acquired in the ANB transaction of approximately $325,000 increased other real estate owned to $4.1 million at March 31, 2010 from $3.5 million at December 31, 2009. Non-performing loans decreased approximately $100,000 during the first quarter of 2010 to $6.8 million.
Average total assets increased $132.4 million, or 25.0%, to $663.0 million from the first quarter of 2009. Average total gross loans increased to $394.4 million, an increase of $63.8 million from the same quarter last year. The increase is largely the result of the acquisition of CNB on December 31, 2009 with $59.2 million in loans acquired. The loans acquired from CNB consisted of $22.6 million in commercial loans and $36.6 million in 1-4 family mortgage loans. In addition, the purchase of ANBs business added $42.2 million in loans on March 19, 2010. A majority of the loans acquired from ANB were commercial real estate. Although commercial real estate loan volume increased throughout 2009 and 2010 as many business borrowers sought out new lenders, outstanding balances for residential mortgages and consumer loans declined. Residential mortgage balances, excluding those acquired from CNB, declined due to increased sales of fixed-rate loans into the secondary market, and consumer loans continued to decline due to the Companys departure from the indirect lending market in 2006. The excess funds from the slower loan volume were reinvested in securities, which increased to $152.5 million on average in the first quarter of 2010, an increase of $10.1 million from the same quarter last year. In addition, excess funds have been invested in interest-bearing deposits, which have increased $19.0 million on average, from the same quarter last year.
Average total deposit liabilities increased $126.0 million for the first quarter of 2010 to $554.5 million, compared to an average of $428.5 million for the same quarter last year. Deposits of $75.5 million, including transaction accounts of $22.5 million and $53.0 million in non-transaction accounts, were acquired from CNB in December of 2009, and $64.7 million, including $8.0 million in transaction accounts and $56.7 million in non-transaction accounts, were acquired from ANB in March of 2010. ANBs deposits included approximately $40.0 million in out-of-state deposits, which the Company did not expect to retain long term. As of March 31, 2010, approximately $20.0 million of the deposits acquired from ANB were withdrawn from the Bank as part of the Banks strategy to lower the pricing on certain high-rate accounts and manage its overall liquidity position. The Company has experienced little runoff in the deposits acquired from CNB.
During the first quarter of 2010, the Company foreclosed on a $1.2 million commercial real estate loan for which specific reserves of $300,000 had been previously allocated. Approximately $300,000 was charged off with the balance of $900,000 transferred to other real estate owned. As of March 31, 2010, there was $4.4 million in small business relationships on nonaccrual. The majority of this amount consisted of two relationships. In addition, the Company had one renegotiated loan of approximately $942,000 secured by commercial real estate where the loan payments were lowered temporarily to assist the borrower with short-term cash flow issues.
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