NBT Bancorp in Norwich, N.Y., reported a 63% rise in second-quarter earnings from a year earlier after selling partial ownership in Springstone Financial.
The $7.9 billion-asset company had quarterly net income of $27.6 million. This included an $11.2 million net gain as NBT in April sold its 20% ownership interest in Springstone to online lender Lending Club. Springstone provides financing options for private education and elective medical procedures.
Earnings per share of 62 cents beat the estimates of analysts polled by Bloomberg by 20 cents.
Net interest income was $62.6 million, up 1.5% from the same period last year. Net interest margin fell nine basis points, to 3.6%, because of decreasing loan yields.
Noninterest income increased 80%, to $46 million, boosted by a $19.4 million gain from the Springstone sale.
NBT's noninterest expenses rose 11%, to $62.7 million, due primarily to $4.6 million of prepayment penalties as the company restructured $165 million in long-term debt borrowings. NBT's professional fees also jumped 16% from a year earlier.
The company recorded a quarterly loan loss provision of $4.2 million, compared with $6.4 million a year ago.