MCBC - Macatawa Bank: Modified Loans Responsible For Heightened Credit Risks
- MCBC’s Paycheck Protection Program portfolio is quite large relative to its asset size. The accelerated amortization of fees will lift net interest income in the second half of 2020.
- Normalization of gains on sales of mortgage loans will likely limit earnings growth in the second half of the year.
- MCBC is facing high credit risks because around 16% of total loans required payment modifications at the end of the last quarter.
- The stock price will likely remain subdued until the company reports a decline in loans requiring accommodations.
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Macatawa Bank: Modified Loans Responsible For Heightened Credit Risks