Citizens First tries to reduce mortgage business

"The bank has entered into a partnership with First Preferred Mortgage to offer refinancing incentives to a select group -- about 1,500 of its 11,200 mortgage customers.

That means Citizens gets an influx of cash and reduces its "balance sheet, which would increase its capital ratios or slow their decline," said Phillip van Doorn, senior banking analyst with TheStreet.com in Palm Beach Gardens, Fla.

Yates added the strategy appears unique.

"This is not something I'm aware of other banks doing," he said. "Basically, (Citizens is) saying 'go refinance to ... help us out.'"