ENDICOTT — Visions Federal Credit Union, headquartered in Endwell, recently announced a partnership with The Glen Wood Financial Group, Inc. in Binghamton, which is led by Glen Wood, president. Wood will provide Visions clients with financial advice.

Visions contends that the synergies between these two LPL Financial broker-dealer platform groups will help the credit union to provide additional financial products and services to residents of the Southern Tier and beyond.

“The relationship expands our reach and gives our members access to Glen’s unbiased advice based solely on what he believes is appropriate for each client — without any conflicts of interest from a parent organization,” Tyrone E. Muse, president and CEO of Visions Federal Credit Union, contended in a news release.

“I don’t just provide investment products. I educate and guide my clients to make informed decisions about their financial future by providing comprehensive financial advice,” Glen Wood said in the release.

Visions Federal Credit Union is a nonprofit financial institution fully owned by its members. Founded in 1966, Visions has $3.5 billion in assets and serves more than 178,000 members with offices throughout New Jersey, New York, and Pennsylvania.

Glen Wood, who has been providing investment advice for more than 30 years, formed Glen Wood Financial Group, Inc. in 2002. Wood is also a professor of finance at SUNY Broome, teaching coursework in financial planning and investment analysis.

LPL Financial, a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA), states that it’s the nation’s largest independent broker/dealer (based on total revenues, according to Financial Planning magazine. It has about 2,700 employees who serve financial advisors through independent-advisor services.

Contact The Business Journal News Network at news@cnybj.com

Bank of America (NYSE: BAC) has rolled out a new mortgage program that it contends provides low- and moderate-income homebuyers access to a “responsible lending product with counseling at affordable entry prices.”

The Charlotte, North Carolina–based bank, the nation’s second largest, on Feb. 22 announced its “affordable loan solution” mortgage in partnership with Self-Help Ventures Fund and Freddie Mac (OTCQB: FMCC).

Self-Help Ventures Fund is a Durham, North Carolina–based nonprofit loan fund, while Freddie Mac is the shortened common name for the Federal Home Loan Mortgage Corporation.

“What we’re trying to do is make people’s financial lives easier,” says Michael Brunner, Central New York market president for Bank of America, which ranks sixth in deposit market share in the 16-county Central New York market, according to the latest FDIC data. He spoke with CNYBJ on April 25.

“The product that we have is designed to help the low- to moderate-income earner be able to purchase a home and purchase a home in a way that makes sense,” Brunner adds.

The marketplace has a “need for more responsible” mortgage products that enable creditworthy homebuyers, who meet certain income limits and other requirements, to become homeowners at an “affordable entry point with comprehensive counseling,” D. Steve Boland, consumer lending executive at Bank of America, said in the bank’s Feb. 22 news release.

“Affordable Loan Solution combines Bank of America’s wide distribution network of mortgage professionals with the borrower support expertise of Self-Help and market liquidity provided by Freddie Mac to provide a new affordable loan option,” said Boland.

FHA not involved
The Wall Street Journal in a Feb. 22 article described the program as one that represents “an end run around a government agency that punished the bank for making errors on similar loans.”

The loan program allows borrowers to avoid private mortgage insurance, which is required for low down-payment loans to protect lenders and investors, the publication said.

“That could make the new loans cheaper than those offered through the Federal Housing Administration [FHA], the government agency that has won big settlements from banks in recent years for what the lenders describe as minor errors,” according to the newspaper.

Bank of America in 2014 agreed to a $16.65 billion settlement with the U.S. Department of Justice for “financial fraud leading up to and during the financial crisis,” according to an Aug. 21, 2014 news release on the department’s website.

The bank had conceded that it originated “risky” mortgage loans and made “misrepresentations” about the quality of those loans to Fannie Mae, Freddie Mac and the FHA, the Justice Department said in the release.

The FHA doesn’t make loans but insures lenders against default on mortgages where the borrower’s down payment is as low as 3.5 percent and the borrower’s credit score is as low as 580, on a scale of 300 to 850.

Bank of America’s new mortgage program takes the FHA “out of the process,” the Wall Street Journal reported. It instead relies on the partnership with Freddie Mac and Self-Help.

How the program works
Bank of America sells the loans, including servicing rights, to Self-Help, which will provide post-closing counseling for any borrowers who might be having payment difficulties.

“Self-Help [Ventures] Fund takes on the servicing from day one … and the education component with the borrower to help them make sure that they’re budgeting and keeping track of this,” says Brunner.

After origination, Bank of America will “immediately” transfer loan servicing to Self-Help’s designated specialty servicer, who will handle all loans regardless of future performance, according to the bank’s news release.

Freddie Mac collaborated with Self-Help and Bank of America to define credit terms and recently approved Self-Help as a seller/servicer to facilitate the rollout of this offering to borrowers.

Freddie Mac will purchase all of the eligible affordable mortgages originated through the Self-Help and Bank of America partnership, the banking company said.

Borrowers may use secondary financing, such as an affordable second loan, grants, or even cash they have on hand. The program will also consider non-traditional forms of credit to demonstrate credit history.

To be eligible, applicants’ income cannot exceed 100 percent of the area median income as defined by the U.S. Department of Housing and Urban Development.

Applicants must occupy the property, and first-time buyers will need to participate in homebuyer education through Bank of America’s Connect to Own nationwide network of counselors.

Bank of America contends that its “affordable-loan solution” mortgage program will include an extensive quality control routine with Freddie Mac that promotes responsible underwriting and reduces potential risks to Bank of America and Freddie Mac.

Contact Reinhardt at ereinhardt@cnybj.com

NORWICH — NBT Bancorp Inc. (NASDAQ: NBTB) reported net income of $18.9 million, or 43 cents a share, in the first quarter, up 4 percent from $18.2 million, or 41 cents, in the year-ago quarter on the strength of loan and deposit growth.

“Our first quarter 2016 results demonstrate our strong financial performance and sustained favorable trends in organic loan and deposit growth and asset quality indicators,” Martin Dietrich, NBT’s president and CEO, said in its earnings report issued on April 25.

NBT Bancorp, holding company for NBT Bank, reported net interest income of $64.6 million in the first quarter, up almost 4 percent from $62.2 million in the year-earlier period.

Its fully taxable equivalent net interest margin was 3.47 percent for the three months ending March 31, 2016, up from 3.42 percent last quarter but down from 3.60 percent for the first quarter of 2015. The increase from the previous quarter was driven by a rise in yields on loans, partially offset by slightly higher costs of interest-bearing deposits, NBT reported.

NBT produced noninterest income of $28.4 million in this year’s first quarter, up almost 7 percent from the same quarter in 2015.

Noninterest expenses for the three months ended March 31, 2016 totaled $58.2 million, up from $57.7 million in the first quarter of 2015. 

Asset quality
NBT reported net charge-offs of $4.8 million in the first quarter, up from $4.6 million for the same period in 2015. The banking company recorded a provision for potential loan losses of $6.1 million in the first quarter, up from $3.6 million in the first three months of last year. NBT said in its earnings report that it did so primarily due to loan growth.

The ratio of annualized net charge-offs to average loans for the first quarter of 2016 was 0.33 percent, compared with 0.34 percent for the first quarter of 2015.

The ratio of nonperforming loans to total loans was 0.69 percent as of March 31, 2016, down from 0.85 percent a year prior.

NBT said past-due loans as a percentage of total loans came in at 0.51 percent as of this March 31, compared to 0.56 percent on the same date in 2015.

The banking company’s allowance for loan losses totaled $64.3 million at the end of this year’s first quarter, compared to $65.4 million a year earlier.

NBT Bancorp had total assets of $8.5 billion as of March 31, 2016, up by $210.3 million, or 2.5 percent, from the end of 2015. It had $6 billion in loans and $6.9 billion in deposits, as of the end of the first quarter.

Stock-repurchase program
NBT said it repurchased more than 675,000 shares of its common stock during the first quarter of 2016 at an average price of $25.45 per share under a previously announced stock buyback plan. As of March 31, it had more than 277,000 shares available for repurchase under this plan, which is set to expire at the end of this year. On March 28, the NBT board of directors approved a new program for the banking company to repurchase up to an additional 1 million shares of its shares outstanding. That plan expires at the end of 2017.

NBT Bank has 155 branches in six states — New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. It ranks second in deposit market share in the 16-county Central New York market, with a 10 percent share of all deposits, according to the latest FDIC data.

Contact Rombel at arombel@cnybj.com

DeWITT — Community Bank System, Inc. (NYSE: CBU) reported net income of $24.4 million in the first quarter, up 9.4 percent from $22.3 million in the year-ago quarter, as it benefitted from the assets it acquired in its $158.5 million acquisition of Oneida Financial Corp.

Earnings per share at Community Bank rose to 55 cents in this year’s first quarter from 54 cents in the first quarter of 2015, it reported on April 25. The banking company incurred about $100,000 and $400,000 of acquisition expenses in the first quarter of 2016 and 2015, respectively.

“Our improved first quarter operating results were driven by solid earning-asset growth, a continuation of excellent credit quality, and a full quarter impact of the Oneida Financial transaction completed in late 2015,” Mark E. Tryniski, president and CEO of Community Bank, said in the bank’s earnings report. “A productive start in both our lending and core funding activities in the first quarter of 2016 positions us well for the balance of the year.” 

The acquisition of Oneida Financial, which closed on Dec. 4, 2015, extended Community Bank’s Central New York service coverage by expanding its market presence in the Syracuse and Utica–Rome metro areas and added to its insurance, benefits administration, and wealth management product and service offerings, he said.

Community Bank generated $105.2 million in total revenue in this year’s first quarter, up more than 18 percent, over the prior-year quarter, as it benefitted from a full quarter of business from the acquired Oneida Financial, parent of Oneida Savings Bank and OneGroup. Specifically, Community Bank saw a 14.2 percent increase in average earning assets and growth in noninterest income from acquired and organic sources. That more than offset its 16 basis-point reduction in net interest margin from the year-ago quarter.

Community’s average loan balances grew by $622 million, or nearly 15 percent, while average loan yields declined 12 basis points year-over-year to 4.33 percent. That resulted in a $6.1 million increase in quarterly loan interest income. Community Bank said it acquired about $400 million in loans in its Oneida Financial deal.

Wealth management and insurance revenue at Community Bank soared by $6.5 million, or 146.5 percent, in this year’s first quarter compared to the first quarter of 2015, mainly because of the Oneida Financial acquisition.

The enlarged Community Bank generated first-quarter operating expenses of $67.7 million, up $11.7 million, or nearly 21 percent, from the year-earlier period. That reflected a full quarter of operating expenses from the Oneida Financial business units it added. Salaries and employee-benefit costs increased by $8.1 million, or 26 percent, compared to the first quarter of 2015 for the same reason.

Community Bank said it took a provision for loan losses of $1.3 million in the first quarter, up $0.7 million from the first quarter of 2015, reflecting quarterly net charge-offs of $1.1 million and organic loan growth of nearly $20 million during the quarter.

The banking company’s effective tax rate for the first quarter of 2016 was 32.5 percent, up from the 31 percent rate in the year-earlier period. The majority of that increase resulted from higher New York State taxes based upon the banking company’s increased consolidated asset size, as well as a higher proportion of its income coming from fully taxable sources, Community Bank said in the earnings report.

As previously announced in December, Community Bank’s board of directors approved a stock-repurchase program authorizing the repurchase of up to 2.2 million shares of the banking company’s common stock during a 12-month period starting Jan. 1, 2016. Community Bank said it did not buy back any shares under this authorization in the first quarter.

Contact Rombel at arombel@cnybj.com

M&T Bank Corp. (NYSE: MTB) announced that Vice Chairman René F. Jones has taken on new managerial responsibilities, effective May 2. 

In addition to continuing oversight of the bank’s Treasury function and Wilmington Trust division, he adds two new business lines — mortgage and consumer lending.

“As our chief financial officer, René has helped guide M&T successfully through one of the most challenging 10-year periods in our company’s history, and today we’re stronger than ever,” M&T Chairman and CEO Robert G. Wilmers said in a news release. 

Jones joined M&T in 1992 and has held a series of management positions in its finance division. He was promoted to CFO and joined the bank’s management group in 2005, and was named vice chairman in January 2014. 

M&T also announced that Darren J. King, executive VP, will become the banking company’s new CFO. 

As head of M&T’s retail and business banking divisions, King has been responsible for more than 6,700 employees, 800 branches, and 1,600 ATMs serving 2.1 million households, the bank’s news release noted. 

“Both as the leader of one of our largest and most important businesses and as a member of the bank’s management group, Darren has demonstrated a deep understanding of the banking business, a keenly analytical mind and a strong strategic vision of M&T’s role in our communities and in our industry …,” said Wilmers.

King joined M&T in 2000 and was named to the management group in 2010. 

M&T Bank, headquartered in Buffalo, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia. Trust-related services are provided by M&T’s Wilmington Trust-affiliated companies and by M&T Bank. 

M&T is ranked number one in deposit market share in the 16-county CNY area with a 19.3 percent share of all market deposits, according to the latest FDIC data.

Contact The Business Journal News Network at news@cnybj.com