Citizens Business Bank saw its net income rise more than 30% in the first quarter of 2021 as it blew past analysts’ estimates.
The Ontario-based bank, which has five branches in the tri-county region, recorded a net income of $50.1 million, or 47 cents per diluted share, compared to $38 million, or 27 cents per share, in the first quarter of 2020. Zacks Investment Research estimated the company would report earnings of about 37 cents per share.
In its April 21 earnings release, Citizens attributed the boost in income to a $19.5 million transfer of funds from the provision for credit losses. The bank added $23.5 million to its credit loss provision in 2020 because of the economic uncertainty the pandemic brought.
“Our first quarter results were greatly impacted by the release of most of the reserves for credit losses that were built up in 2020, as the forecasted impact of COVID-19 on the economy has significantly improved since last year at the beginning of the pandemic,” David Brager, the CEO of Citizens Business Bank, said in the company’s earnings release.
The bank has also originated more than 1,500 loans for the federal Paycheck Protection Program’s second round and has processed $540 million in forgiveness applications for businesses that took out first-round loans.