Archive for the ‘Press Release’ category
Press Conference Announcing Financials/Staff Reductions at Monarch with President Rick DeVries
August 6th, 2010MONARCH COMMUNITY BANCORP, INC. ANNOUNCES SECOND QUARTER 2010 EARNINGS
August 4th, 2010COLDWATER, 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.
Monarch Welcomes New Residential/Consumer Lender
July 21st, 2010
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.
Monarch Community Bank Welcomes New President/CEO
July 15th, 2010
Rick DeVries, President/CEO
The Board of Directors at Monarch Community Bank and Monarch Community Bancorp, Inc is proud to announce the appointment of Richard J. (“Rick”) DeVries, as the new president and CEO of the Bank and the Bancorp. DeVries has begun working at the Bank, however, his appointment as President and CEO is subject to approval of the Federal Deposit Insurance Corporation, the Michigan Office of Insurance and Financial Services, and the Federal Reserve. He comes to the Bank with extensive banking experience and an enthusiasm for leading a community bank.
DeVries was previously the president and CEO of Pavilion Bancorp Inc./Bank of Lenawee in Adrian, Michigan. During his five years as president he developed a dynamic sales and credit culture while significantly increasing shareholder value. He has also been nationally recognized for innovations in product development and cross-selling.
DeVries also has a diverse background in banking, working as the president and CEO of Bank One/Citizens Bank in Ypsilanti and Lansing, commercial lending, venture capital lending, corporate training, commercial loan officer, and commercial lending trainee. He obtained his Bachelors and Masters degrees from Central Michigan University in the areas of Finance, Marketing, and Economics
He is a graduate of St. Joseph High School in St. Joseph, Michigan and currently resides in Adrian with his wife, Dyana. Together they have six children and two grandchildren. In his spare time he enjoys running marathons, playing golf, and being with family. DeVries office will be located at 375 N. Willowbrook Rd. in Coldwater.
“I’m excited to be working with the team of employees at Monarch to make this the best community bank in the country,” said DeVries. His job responsibilities will include overseeing the day to day operations of the bank, managing investor relations, overseeing the adequacy and soundness of the organization’s financial structure, and representing the bank while providing support to customers, shareholders, the public, and the financial community.
Craun Promoted to AVP, Senior Collector at Monarch Community Bank
June 22nd, 2010
Sharon Craun, AVP, Senior Collector
Monarch Community Bank is proud to announce the promotion of Sharon Craun to assistant vice president and senior collector for the bank. Sharon has worked in banking for 16 years and has been at Monarch for six years. Previously Sharon worked in the collections department as a collector. Craun takes the place of Sandi Jackson, who is semi-retiring from Monarch.
Craun is a graduate of Colon High School and of Glen Oaks Community College with her degree in Business. She also holds certifications in Collection Techniques and Law in Michigan.
In her new position, Craun will be working with past due customers, reviewing the delinquent loan status for the bank, approving collection activities regarding workouts of loan payments on delinquent accounts, remaining current and ensuring compliance with Federal and State laws and regulations and assists with litigation and foreclosure activity.
Craun resides in Colon with her husband, Randy and their four children. In her spare time she enjoys watching softball, camping, and spending time with family. She is involved with the Colon Summer Recreation program, Colon Village Council, Colon Zoning Board of Appeals, and Colon’s Village Planning Commission.
Reneau Awarded Employee of the Quarter
June 7th, 2010
Monarch Community Bank has announced the Employee of the 1st Quarter for the bank. Courtney Reneau, administrative assistant and Freddie Mac specialist was chosen by her co-workers for the award. Her nominator noted that “Courtney is always willing to take on new tasks, and consistently pleasant to co-workers and customers.”
Reneau is currently attending Kellogg Community College. She has been at the bank for just over 1 year and came to Monarch from Time Services. Her responsibilities include payroll, Freddie Mac delinquency monitoring, recording, tracking, and evaluating for possible work-out options, minute-taking, and assisting various departments. Reneau is also a member of Altrusa International.
She resides in Coldwater with her fiancé and 4 year old daughter. In her spare time she enjoys motocross racing, swimming, bowling, camping, riding four-wheelers and dune buggies, as well as attending her daughters dance classes, watching family motocross race, and attending soccer games.
Monarch Takes Steps to Withstand Tough Times
May 13th, 2010We feel that it’s pertinent to keep our community and customers informed about happenings at the bank. Please know that we appreciate your business and look forward to being in your community for many more years! Below is a press release that was sent out today to all local media. If you have any questions, we invite you to contact Monarch Community Bank’s President/CEO, Don Denney at 517-278-4566.
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Monarch Community Bank has become another in the growing list of Michigan financial institutions to fall under the scrutiny of the state and federal banking authorities. Monarch is just one of many community banks that have been affected by the poor economy.
Executive Management and the Board of Directors of Monarch Community Bank have agreed to take various steps to improve the condition of the Bank. On May 6, 2010 a Consent Order was fully executed by The Federal Deposit Insurance Corporation (FDIC), the State of Michigan Office of Financial and Insurance Regulation (OFIR) and Monarch Community Bank.
Don Denney, president and CEO of Monarch stated, “The one key issue in receiving the consent was the steady increase of non-performing assets in 2009. This was attributed to the drastic decline in real estate values while unemployment continued to increase throughout much of last year. Many of the items stipulated in the Consent Order are items the bank has been focusing on improving since 2009”.
The agreement was negotiated between the Monarch Community Bank Board of Directors, the FDIC and OFIR. “We believe the Order that has been negotiated is fair and we are striving to meet all of its requirements in the time frames specified, however the ability to increase capital in the time frame specified will be very difficult” said Denney.
Under the order, the Bank must improve its capital levels, not extend additional credit to delinquent borrowers, and reduce the levels of its non-performing assets. It should be noted that customer’s money at the bank is safe, since FDIC coverage is not affected by the Consent.
Management considers the Consent Order a road map to get the Bank back on track and guide to steer the Bank through this troubling economic time. “We’ve been a part of southern Michigan for 76 years and we look forward to being here for many more years to come,” said Denney.
Monarch Promotes Kirk Bell to New Accounts Representative
March 25th, 2010
Monarch Community Bank is proud to announce the promotion of Kirk Bell, new accounts representative at the headquarters on Willowbrook Road in Coldwater. Bell will be opening new deposit and IRA accounts and assists customers with all aspects of opening and maintaining their accounts.
Bell has worked at Monarch Community Bank for two years as a teller at the Willowbrook Branch. “It’s our pleasure to promote Kirk to this position. Over the years he has proven himself to management and our customers,” said Don Denney, President and CEO of Monarch Community Bank. In the community Bell is involved in the Lockwood Community Church Wild Game Dinner Committee, as well as on the Board for Southwest Ohio Hugh O’Brian Leadership Program.
He is a graduate of Swanton High School in Swanton, Ohio and currently resides in Coldwater with his wife Kate, and three sons. Bell is currently attending Baker College for his Business Management degree. In his spare time he enjoys spending time with his family, reading, and being involved in the community.
Yoder Announced as Employee of the Quarter
February 12th, 2010
Jerry Yoder
Monarch Community Bank
has announced the Employee of the 4th Quarter for the bank. Jerry Yoder, vice president and REO and special projects manager. Yoder was chosen by his co-workers for the award. He has worked at Monarch for 33 years.
Yoder started his career at Monarch Community Bank, formerly Branch County Federal Savings and Loan, as a loan officer. He has served in many positions over the years and has worked at seven different locations. Most of his past experience has been in residential and commercial lending.
Yoder graduated from Westview High School in Topeka, Indiana and graduated with his BS degree from Tri-State College in General Business. When asked what he likes most about his job he said, “the varied challenges and duties in my position.” Jerry resides Ovid Township with his wife Teresa.
Don Denney, Monarch Community Bank’s President and CEO was pleased to announce Yoder as the recipient at a recent employee meeting and said, “Jerry has certainly earned this award through his dedication and commitment to Monarch over the years. We’re glad to have him on our team”.
Monarch Welcomes Sanders as New Commercial Lender
January 26th, 2010Monarch Community Bank welcomes AnnMarie Sanders as a new commercial loan officer for the bank. Sanders has worked in banking for 9 years and most recently at County National Bank in Hillsdale. Her responsibilities will include obtaining and managing commercial loans.
Sanders is a graduate of Jonesville High School and of Eastern Michigan University, where she obtained a degree in economics. Over the years she’s served in various positions in the bank setting including loan operations, teller, vault teller, and bank secrecy act officer. Sanders attended the Michigan Banker’s Association Commercial Lending School.
When asked what she’s looking forward to in her new position she said, “Meeting and working with a lot of new customers in Branch, Hillsdale, and Calhoun Counties”. Sanders resides in Jackson County with her husband, Elwin, and two children. She enjoys reading, gardening, and attending her kids sporting activities. Her office is located at 87 Marshall St. in Coldwater.
