All Monarch Community Bank branches will be closed on Monday in observance of Labor Day. Have a wonderful and safe holiday weekend!
Small lenders are offering help via Hardest Hit Fund
August 31st, 2010 by Courtney No comments »This article was posted on the Detroit Free Press website August 21st. Monarch Community Bank is one of the lenders that partipate in this program.
http://www.freep.com/article/20100821/BUSINESS04/8210327/1017/Small-lenders-help-Michigan-homeowners
BY GRETA GUEST
FREE PRESS BUSINESS WRITER
While Gov. Jennifer Granholm blasted major
lenders earlier this week for not participating in a
new federal program meant to help 30,000
unemployed homeowners avoid foreclosure, little
had changed by week’s end.
None of the four cited Tuesday by Granholm –
Wells Fargo, Citi, Chase and Bank of America –
has said no outright. But all are still reviewing
the program, meaning their customers cannot
sign up.
“Chase has created a team to implement our
participation in the Hardest Hit Fund to help
struggling homeowners in Michigan,” said Chase
spokesman Mary Kay Bean.
So of the 150 struggling homeowners who are
now receiving a lifeline from the $282-million
Michigan Hardest Hit Fund all worked with small
banks and credit unions to get help.
It just takes larger lenders more time to adapt to
a new program, they say.
Big banks not on board for aid yet
Veronica Davis, 51, of Detroit lost her full-time
job in June and is making ends meet with a part-
time job and a monthly check of $267 from
Michigan’s Hardest Hit Fund.
She’s one of the first homeowners to receive help
from the federal fund that started July 12.
Davis, a former project manager for Hewlett-
Packard, said she is glad for the help with her
$825 monthly mortgage payment. She bought
her three-bedroom brick bungalow 11 years ago
and cannot sell it because she owes more on it
than what it’s worth.
and cannot sell it because she owes more on it
than what it’s worth.
“It will kind of cover me,” she said.
With $282 million in taxpayer dollars, the fund is
expected to help 30,000 homeowners on a first-
come, first-served basis. But, as of Thursday, it
has helped just 150 struggling homeowners, said
Mary Townley, director of the Michigan State
Housing Development Authority’s
homeownership division.
That’s largely because larger banks aren’t on
board yet. Davis was able to get help so fast
because her mortgage is with a credit union. But
major lenders such as Citi, Bank of America,
Chase and Wells Fargo say they have challenges
the smaller outfits don’t.
“While regional banks may be able to move fairly
quickly to implement programs in one state or a
limited number of participating states, Bank of
America and other large national mortgage
servicers are faced with implementation of
dozens of new Hardest Hit Fund programs
specific to as many as 17 states and the District
of Columbia,” Rick Simon, Bank of America
spokesman, said in an e-mail.
Press Conference Announcing Financials/Staff Reductions at Monarch with President Rick DeVries
August 6th, 2010 by Courtney No comments »MONARCH COMMUNITY BANCORP, INC. ANNOUNCES SECOND QUARTER 2010 EARNINGS
August 4th, 2010 by Courtney No comments »COLDWATER, MICHIGAN, August 3, 2010 – Monarch Community Bancorp, Inc. (Nasdaq Capital Market: MCBF), the parent company of Monarch Community Bank, today announced a net loss available to common shareholders for the quarter ended June 30, 2010 of $6.9 million compared to a net loss available to common shareholders of $1.9 million for the quarter ended June 30, 2009. Basic and diluted losses per share for the quarter ended June 30, 2010 were $(3.49) compared to $(.97) for the same period in 2009. Monarch Community Bancorp also reported a net loss for the first six months of 2010 of $8.2 million compared to a net loss of $1.8 million for the same period a year ago. Basic and diluted losses per share for the six months ended June 30, 2010 were $(4.16) compared to $(.91) for the same period in 2009. The net operating loss reflects large provisions taken to strengthen the bank’s loan loss reserve and position the bank for successfully dealing with problem loans that have been identified in the portfolio.
“We have carefully reviewed the bank’s loans, utilizing the assistance of professional loan review teams,” stated Richard J. DeVries, new CEO and President of Monarch Community Bank “and have taken the actions necessary to identify and prudently reserve for those problems that were identified. Our desire is to move beyond problem loan recognition and resolution, and return the bank to its tradition of sustained profitability.”
Concurrent with the quarter’s losses and in conjunction with the company’s focus to control costs, DeVries announced the completion of a reduction-in-staff initiative and a branch consolidation that will reduce the bank’s expenses by over $800,000 per year on an annual basis. However, the branch that is being consolidated at 87 Marshall St. in Coldwater, will now be available for community groups to use at no cost for a meeting facility. Both the ATM at this location and the drive-thru at 24 Grand St. will remain open.
“These are the painful, but necessary decisions that organizations face in difficult economic times,” commented DeVries. “Now we forge ahead,” he added, “firm in our resolve to provide the most remarkable community banking available anywhere. We have outstanding employees, beautiful facilities, and a legacy of caring service. We look forward to joining hands with our customers, and with the community, in helping people achieve success.”
The net interest margin for the second quarter of 2010 decreased 24 basis points to 2.83% compared to 3.07% for the same period in 2009. The decline in the margin is largely due to the decline in earning assets. The bank has seen runoff in the mortgage portfolio as loan originations have moved into the secondary market, (see further discussion below). The increased level of non-performing loans and the associated non-accrual interest adjustment have also significantly impacted the margin. The yield on loans has decreased to 5.67% for the quarter compared to 6.44% for the same period in 2009.
The net interest margin decreased 10 basis points to 2.96% for the six months ending June 30, 2010 compared to 3.06% for the same period in 2009. The decline in margin year over year is mainly due to the reasons mentioned previously. Cost of funds continues to decrease to 2.2% as the company remains focused on deposit pricing strategies and growing core deposits to reduce its reliance on whole sale funding.
The provision for loan losses was $7.0 million in the second quarter of 2010 compared to $3.4 million for the second quarter of 2009. The higher provision was necessary due to the continued net charge off activity and non-performing assets. The company continues to monitor real estate dependent loans and focus on asset quality. Non-performing assets totaled $24.4 million at the end of the second quarter of 2010, an increase of $8.8 million from December 31, 2009. Net charge offs for the quarter ended June 30, 2010 were $3.5 million compared to $1.1 million for the same period in 2009. Year to date 2010 net charge offs totaled $4.9 million compared to $1.3 million for the same period a year ago. Net charge offs year to date consisted of 46% one to four family residential mortgages, 26% construction, 26% commercial real estate, and the remaining 3% included consumer, commercial and industrial and home equity lines of credit.
Non-interest income decreased $614,000 or 42% from $1.4 million during the second quarter of 2009 to $854,000 for the second quarter of 2010. The decrease was primarily due to the decline in mortgage banking income, which is attributable to the decrease in mortgage refinancing activity. The refinancing activity has been driven by the unprecedented low mortgage rates available over the past twelve months. Non-interest income for the first six months of 2010 decreased $916,000 or 32.2%, compared to the same period a year ago.
Non-interest expense decreased $96,000 or 3.7%, for the second quarter of 2010, compared to the same period a year ago. Cost control remains a focus of the company however the costs associated with non-performing assets and foreclosed properties such as professional fees, collection and maintenance costs, and impairment charges related to the disposition of other real estate continue to increase. Non-interest expense decreased $111,000 or 2.2%, from $5.1 million during the six months ended June 30, 2009 to $5.0 million for the six months ended June 30, 2010.
Total assets were $263.6 million at June 30, 2010 compared to $283.2 million at December 31, 2009. Total loans decreased $16.6 million or 7.5%, to $204.3 million at June 30, 2010 from $220.9 million at December 31, 2009. Deposits decreased $11.9 million, or 5.6%, to $201.5 million during the second quarter from $214.4 million at of the end of 2009.
Stockholder’s equity decreased to $15.1 million at June 30, 2010 compared to $23.2 at December 31, 2009. The bank must meet certain minimum capital requirements to satisfy federal and state laws. Monarch Community Bank’s tier 1 leverage ratio decreased to 4.9, a decrease of 3.0% from March 31, 2010. The bank’s total risk based ratio was 8.04 a decrease of 2.58% from March 31, 2010. In May of 2010, the bank agreed with FDIC to develop a plan to increase its tier 1 leverage ratio to 9% and total risk based ratio to 11%. The bank had not met these goals and was not considered adequately capitalized as of June 30, 2010.
DeVries stated “We have made positive progress with the provisions of the Consent Order, with the only provision not met being the required increase in capital”.
Established in 1934, Monarch Community Bank is headquartered in Coldwater and has branches located in Marshall, Union City and Hillsdale. For more information about Monarch Community Bank products and services, connect on Facebook, Twitter, the blog or go to the bank’s website at www.monarchcb.com.
FDIC Permanently Raises Maximum Deposit Insurance Amount to $250,000
July 30th, 2010 by Courtney No comments »On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.www.fdic.gov and use our Electronic Deposit Insurance Estimator (EDIE) or call our toll-free number at 1-877-ASK-FDIC. Insured deposits provide the comfort and peace of mind to depositors that their money is 100 percent safe – provided they keep their deposit balances within the insurance limits,” said FDIC Chairman Sheila C. Bair. www.fdic.gov). – insured financial institutions fund its operations. www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-161-2010
The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013.
“With this permanent increase of deposit insurance coverage to $250,000, depositors with CDs above $100,000 but below $250,000 will no longer have to worry about losing coverage on those CDs maturing beyond 2013. We strongly encourage all bank depositors who have questions about their insurance coverage to go to our Web site at
To help consumers, bankers and others understand how the new law affects deposit insurance coverage and to help consumers verify whether their deposit accounts are fully protected, the FDIC provides the following resources:
Information on deposit insurance on the FDIC Web site:Updated brochures on deposit insurance coverage (including the basic guide, Deposit Insurance Summary, and the more comprehensive guide, Your Insured Deposits) and a new version of the “Electronic Deposit Insurance Estimator” (EDIE), an interactive service that allows consumers to quickly and easily check whether their accounts are fully protected, are now available on the FDIC’s Web site (# # #
A toll-free consumer assistance line: Help and information about deposit insurance and other matters of interest to bank customers are available at 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday from 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insured deposits at the nation’s 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring the addressing risks to which they are exposed. The FDIC receives no federal tax dollars
FDIC press releases and other information are available on the Internet at
Kim Furton, Residential Lender in Marshall Leaves Monarch after 26 Years
July 26th, 2010 by Courtney No comments »
Kim Furton, Residential/Consumer Lender
After many years of serving the people of Marshall at Monarch Community Bank, Kim Furton will be leaving.
Join us for a Going Away Party for Kim
Friday, July 30th 10:00 a.m. – 2:00 p.m.
107 N. Park Ave. in Marshall on the circle
Come and wish Kim good luck as she leaves the Marshall Area to relocate to Utah to be closer to family.
Monarch Welcomes New Residential/Consumer Lender
July 21st, 2010 by Courtney No comments »
Todd Schurig, Residential/Consumer Lender
Monarch Community Bank welcomes Todd Schurig, residential and consumer lender to the branch on the circle at 107 N. Park in Marshall. Schurig comes to the bank from Ameri-First Financial and has five years of prior experience in banking. His responsibilities at the bank will include obtaining residential and consumer loans and working with current customers.
Schurig is a graduate of Marshall High School and attended Valparaiso with his study in liberal arts. In his spare time he enjoys duck hunting, gardening, reading and singing in the choir at Zion Lutheran Church. When asked what he’s looking forward to in his new position he said, “I want to help community members, current customers, and new home owners achieve their financials goals”.
Schurig lives in Marshall with his wife, Jeannene and their three children. His office is located in Marshall at 107 N. Park, on the circle. If you’d like to contact Todd, he can be reached by calling 789.8018.
Peg Day Represents Monarch, Supports Fountain Clinic
July 20th, 2010 by Courtney No comments »
"Ms. Piggy" Peggy Day of Monarch came home from the Reuben Eating Contest Fundraiser with "Best Schtick" Trophy!
Taken from Battle Creek Enquirer:
Over 20 men and women competing in 5th Annual Pastrami Joe’s Reuben Eating World Championship Saturday also raised $13,880.67 for Fountain Clinic, a Marshall organization meant to help people with little or no medical insurance.
“Really, all these people are here raising funds for the Fountain Clinic,” Pastrami Joe’s owner Mike Caron said. “People have been raising money for the last six or eight weeks. The eating part is secondary.”
There was also a children’s competition pitting kids against one another in a race to finish building a pastrami masterpiece while running an obstacle course. Caron said activities like that help teach children about philanthropy.
Caron said last year’s face-stuffing event raised just under $7,000. Jars placed in the restaurant, as well as various locations around town, allowed people to donate to the local celebrity eater of their choice.
Kathy Miller, a Marshall city councilwoman, raised the most money, netting the free clinic $3,485.84.
“I have a great amount of people that care about the Fountain Clinic,” she said moments after tearing through as much of a Reuben sandwich as she could in five minutes.
She said the clinic doesn’t take any government funds and is dependent on donations.
“A member of our family was helped by the clinic,” Miller said, “and he’s probably around today because of the help they gave him.”
This was the first year the Reuben competition did not have a category for professional eaters, freeing up money that can go directly to the Fountain Clinic, Caron said.
That meant the celebrity eaters had to pick up the slack. One of them, Kathleen Oerther of Oerther’s Feed and Grain, came dressed as a queen, complete with handmaidens to help her through her royal pastrami stuffing.
She said her customers helped make the costume and decide on the theme; awards were given after the contest in various categories, such as best costume and best place setting.
As the announcer told the contestants to start, they began to devour the pastrami and sauerkraut stacks. Competitors like Marshall Mayor Bruce Smith, Congressman Mark Schauer, the Enquirer’s Bob Warner, Marshall High School Principal Dan Luciani and more gulped down the food, stopping only to soften things up with a quick swig of water.
Michigan State Trooper J.K. Haehnle of the Coldwater post won, with three sandwiches eaten in five minutes.
Caron said the previous record was 2 1/4 sandwiches.
