NBT in New York Prepays $165M in Long-Term Borrowings

NBT Bancorp in Norwich, N.Y., has prepaid about $165 million in long-term borrowings from the Federal Home Loan Bank.

The $8-billion-asset company said in a regulatory filing Friday that it funded the prepayment with new FHLB advances and brokered deposits at lower rates.

NBT said it would incur a pretax penalty of $17.1 million in the second quarter, though will “substantially offset” gains it expected from selling its 20% stake in Springstone Financial in April.

NBT sold its Springstone, which provides affordable financing options for private education and elective medical procedures, stake to LendingClub.

This article originally appeared in American Banker.
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