NBT Bancorp in Norwich, N.Y., has prepaid about $165 million in Federal Home Loan Bank borrowings.
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.
