ONEIDA — Earnings rose in the fourth quarter and for all of 2011 at Oneida Financial Corp. (NASDAQ: ONFC) as interest income and non-interest income both increased and credit quality improved.

Oneida Financial, the parent company for the Oneida Savings Bank, reported fourth-quarter net income of $1.7 million, or 24 cents per share, up from $1.5 million, or 21 cents, a year earlier. Increased net interest income and non-interest income both had a positive impact on the quarter. Oneida Financial also cut its provision for loan losses as troubled loans decreased.

For the year, Oneida Financial’s net income grew from $3.8 million, or 53 cents per share, in 2010 to $5.7 million, or 82 cents, in 2011.

“Oneida Financial Corp. continues to succeed in central New York and beyond despite record low interest rates and a highly competitive banking and insurance marketplace,” company President and CEO Michael R. Kallet said in a news release. “Net income for the fourth quarter of 2011 is 11 percent above the prior year period and our net income of $5.7 million for 2011 represents a record earnings year for the company.”

Highlights for 2011 included opening the company’s 12th location when it opened its new Rome branch last fall.

“Our insurance and financial subsidiaries, Bailey & Haskell Associates, Inc., and Benefit Consulting Group, continue to post impressive results, both companies increasing revenue over 9 percent from prior year levels,” Kallet noted. 

“Oneida Financial Corp. continues to deploy business strategies which position us as a diversified banking and financial services company,” he said.

Net interest income totaled $4.9 million for the fourth quarter, up $126,000 from a year ago. Net interest income increased $1.7 million for the year.

During the fourth quarter, Oneida Financial made a $50,000 provision for loan losses, down from $300,000 a year ago, due to a declining number of nonperforming loans. Net charge-offs, however, rose from $122,000 in 2010 to $252,000. For the year, Oneida Financial’s provision for loan losses totaled $1.1 million, down from $1.7 million in 2010.

Non-interest income was $6.6 million in the fourth quarter, up from $6.1 million in 2010, as the company benefited from a $577,000 increase in commissions and fees on the sale of non-bank products through its insurance and financial-services subsidiaries. Non-interest income for the year rose from $22.9 million to $24.7 million with a $1.9 million increase in commissions and fees.

Headquartered in Oneida, Oneida Financial Corp. (www.oneidafinancial.com) is the parent company of the Oneida Savings Bank; State Bank of Chittenango; Bailey & Haskell Associates, Inc.; Benefit Consulting Group, Inc.; and Workplace Health Solutions, Inc. Oneida Savings Bank operates 12 branches in Madison, Oneida, and Onondaga counties.