NBT Bancorp's (NBTB) earnings jumped in the third quarter on the back of a large one-time gain on sale of securities. Going forward, the non-recurrence of the gain will lead to lower non-interest income, and consequently lower earnings. I'm expecting earnings to face downward pressure from margin compression as well. Despite the earnings decline, I'm expecting dividends to be maintained at the current level.
Non-Interest Income to Normalize Going Forward
NBTB's earnings jumped in the third quarter due to a large gain included in non-interest based income which is likely to not recur.