NB&T Financial Group Inc. in Wilmington, Ohio, said it expects fourth-quarter provision for loan losses to be "substantially" higher than it was last quarter due to a likely default on a loan to a single commercial customer that has $1 million balance.
The $674 million-asset company also said in a Securities and Exchange Commission filing Wednesday that it intends to write down the value of two real estate-owned properties by $400,000 as a result of a recent appraisal, but that it would offset that loss by selling $14 million of securities for an expected $600,000 profit. NB&T inherited the properties when it acquired the ailing Community National Bank in Franklin, Ohio, two years ago.
NB&T did not say how large its loan-loss provision would be this quarter so it is unclear what the impact would be on quarterly and year-end earnings. In the quarter that ended Sept. 30, the company set aside $475,000 for loan losses and turned a profit of $1.1 million.
NB&T is the holding company for the National Bank and Trust Co., which has nearly two-dozen branches in seven Ohio counties.
