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

JUN 2, 2014 3:01pm ET

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.