Gains related to an acquisition sent NB&T Financial Group Inc.’s first-quarter profits soaring.
Earnings at NB&T jumped eightfold to $5.6 million, or $1.65 per share, from $659,000, or 21 cents a share, in the year-ago quarter, the company announced Tuesday.
The Wilmington-based parent of the National Bank and Trust Co. realized a pretax gain of $7.6 million tied to the March acquisition assisted by the Federal Deposit Insurance Corp. of some assets and liabilities of American National Bank in Parma, Ohio. NB&T also generated a pretax gain of $1.4 million from selling its insurance agency in January.
The acquisition added $65 million in assets, bringing the company’s total to $717 million.
Net interest income rose from $4.4 million a year ago to $5.6 million last quarter.
But loan losses were still a problem. Its loan-loss provision jumped 74 percent from a year ago, to $435,000. Still, net charge-offs improved from $703,000 in the year-ago quarter to $567,000 last quarter. And nonperforming loans decreased by $100,000, to $6.8 million.
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.
NB&T’s stock (Nasdaq: NBTF) which is thinly traded, closed up about 1 percent, or 18 cents, to $18.07 on Tuesday.