|
|
COLDWATER, MICHIGAN, April 22, 2008 -
Monarch Community Bancorp, Inc. (Nasdaq
Capital Market: MCBF), the parent company of
Monarch Community Bank (“Bank”), today
announced earnings for the three months
ended March 31, 2008 of $332,000 compared to
$494,000 for the same period in 2007 (a
decrease of 33%).
Earnings per share for the three
months ended March 31, 2008 were $0.15
compared to $0.21 for the same period in
2007 (a decrease of 29%).
Net interest income before
any provision for loan losses decreased
$2,000, or less than 1% for the three months
ended March 31, 2008 compared to the same
period in 2007. The Bank’s net interest
margin increased to 3.25% for the three
months ended March 31, 2008 from 3.20% for
the same period in 2007. The Bank continues
to be challenged in its efforts to increase
lower costing core deposits and management
continues to put its efforts towards meeting
this challenge.
Net interest income after
the provision for loan losses decreased
$85,000, or 4.61%, for the three months
ended March 31, 2008 compared to the same
period in 2007. For the three months ended
March 31, 2008, the Bank recorded a
provision for loan losses of $300,000
compared to $225,000 for the same period in
2007. The provision was recorded primarily
as a result of an increase in net
charge-offs of $149,000 (from $151,000 to
$347,000) for the three months ended March
31, 2008 compared to the same period in
2007.
While non-interest income
remained relatively unchanged for the three
months ended March 31, 2008 compared to the
same period ending March 31, 2007 the
components of
non-interest income varied more
significantly.
Other income decreased $43,000 (from
$96,000 to $52,000) and fees and service
charges decreased $29,000 (from $600,000 to
$571,000); these decreases were offset by a
$72,000 increase in gain on the sale of
loans (from $193,000 to $266,000).
The decrease in fees and service charges was
a result of a $51,000 decrease in brokered
loan income, and a decrease in loan related
fees of $22,000 offset by a decrease in
costs associated with overdraft protection
of $23,000 and an increase in NSF fee income
of $25,000.
The
gain on sale of loans sharply increased
during the quarter which management
attributes to the impending changes in the
secondary market beginning at the end of the
first quarter.
Because of these changes management
does not expect the next three quarters to
produce the same amount of gain on sale of
loans. Other income decreased $43,000
primarily due to a decrease in net gain on
the sale of foreclosed assets.
Noninterest expense
increased $130,000, or 5.9% for the three
months ended March 31, 2008. Salaries and
employee benefits expense increased $85,000
(from $1.1 million to $1.2 million), due to
normal increases in salaries and wages, an
increase in staffing and utilization of
contracted personnel.
The Bank has 81 full-time equivalent employees
as of March 31, 2008 compared to 77
full-time equivalent employees as of March
31, 2007.
Repossessed
property expense increased $35,000 (from
$23,000 to $58,000) resulting from
difficulty in selling properties due to the
downturn in the housing market. However, the
number of properties held by the Bank during
the three months ended March 31, 2008
decreased compared to the same period in
2007. Amortization of mortgage servicing
rights increased $33,000 (from $86,000 to
$119,000) due to an increase in mortgage
loan payoffs due to an upsurge of
refinancing associated with the fluctuation
of interest rates in the first quarter. Data
processing increased $15,000 (from $187,000
to $202,000) due to implementation of
network upgrades and utilization of
additional services associated with the
installation of a new telephone system.
The additional costs will not
continue after the first quarter.
Professional services decreased
$19,000 (from $105,000 to $86,000); this
area of expense was higher in ’07 due to the
Bancorp’s attempt to execute a going private
transaction.
Amortization of Core deposit
intangible decreased $14,000 (from $68,000
to 54,000).
At March 31, 2008, the
Company’s total assets were $285.2 million,
compared to $279.2 million at December 31,
2007, an increase of 2.1%. The asset
increase is primarily attributable to a $6.3
million increase in the loan portfolio.
This increase was offset by a
$900,000 decrease in securities available
for sale, a $600,000 decrease in other
assets and a $400,000 decrease in foreclosed
assets. The increase in the loan portfolio
was expected as the Bank originates larger
loans in the commercial market and continues
to focus its mortgage origination efforts on
loans to be sold in the secondary market.
Total deposits increased $13.3 million, or
7.5% to $191.2 million at March 31, 2008,
from $177.9 million at December 31, 2007.
This increase resulted from an increase of
$6.5 million in money market accounts, a
$3.5 million increase in brokered CDs, a
$3.4 million increase demand and now
accounts.
The Federal Home loan bank advances
decreased $7 million to $52.3 million at
March 31, 2008 from $59.3 million at
December 31, 2007. Borrowings and brokered
CDs remain an important source of funding
for the Bank.
Monarch Community Bank is
headquartered in
Coldwater,
Michigan and operates six full
service retail offices in Branch, Calhoun
and Hillsdale counties.
For additional information, visit Monarch
Community Bancorp’s website at
www.monarchcb.com.
For additional information:
Donald L. Denney, CEO
(517) 279-3978
ddenney@monarhcb.com
Rebecca S Crabill, CFO
(517) 279-3956
rcrabill@monarchcb.com
COLDWATER, MICHIGAN,
January 28, 2008 - Monarch Community
Bancorp, Inc. (Nasdaq Capital Market:MCBF),
the parent company of Monarch Community
Bank, today announced the appointment of
William C. Kurtz to Executive Vice President
of the Company and Executive Vice
President-COO for the Bank. Rebecca S.
Crabill has been appointed Vice
President-Chief Financial Officer of the
Company and the Bank.
Mr. Kurtz has been with
the Company since 1997, most recently as
Senior Vice President and CFO. Ms. Crabill
has been with the Company since 1996, most
recently as Controller of the Bank.
Monarch Community Bank
is headquartered in
Coldwater,
Michigan and operates six full
service retail offices in Branch, Calhoun
and Hillsdale counties.
For
additional information, visit Monarch
Community Bancorp’s website at
www.monarchcb.com.
For additional information:
Donald L. Denney, CEO
(517) 279-3978
ddenney@monarhcb.com
William C. Kurtz, COO
(517) 279-3960
wkurtz@monarchcb.com
COLDWATER,
MICHIGAN,
January 18,
2008 -
Monarch
Community
Bancorp,
Inc. (Nasdaq
Capital
Market:MCBF),
the parent
company of
Monarch
Community
Bank, today
announced
earnings for
the year
ended
December 31,
2007 of $1.7
million
compared to
$1.5 million
for the year
ended
December 31,
2006 as
earnings
increased
for the
third
straight
year.
Earnings per
share for
2007 were
$0.73
compared to
$0.63 for
2006, an
increase of
16%.
Net interest
income for
the year
ended
December 31,
2007 before
any
provision
for loan
losses
decreased
$357,000, or
4.1%. The
bank’s net
interest
margin
declined to
3.27% in
2007 from
3.42% in
2006 due to
the bank’s
cost of
funds
increasing
more rapidly
than its
yield on
earning
assets.
Management
attributes
this to the
competitive
interest
rate
environment
throughout
2007.
The
provision
for loan
losses was
$971,000 in
2007 whereas
no provision
was recorded
in 2006. The
increase in
provision
was
necessary
because net
charge offs
totaled $1.2
million in
2007 and the
level of
non-performing
assets
increased
from a year
ago.
Non-performing
assets were
$2.3
million, or
0.81% of
assets, at
December 31,
2007
compared to
$2.1
million, or
.74% of
assets, at
December 31,
2006. The
increase is
primarily
the result
of an
increase in
nonperforming
one-to-four
family real
estate
loans.
Foreclosed
assets
decreased
$165,000 to
$1.5 million
at December
31, 2007
compared to
December 31,
2006.
Noninterest
income
increased to
$3.9 million
for the year
ended
December 31,
2007 as
compared to
$3.1 million
for the same
period in
2006, an
increase of
26%. Deposit
related fees
increased
$220,000
primarily
because of
increases in
overdraft
protection,
ATM, and
debit card
fees. Loan
related fees
increased
$364,000
because of a
$305,000
increase in
gains on
sale of
loans and a
$101,000
increase in
brokered
loan income
which offset
some
decreases in
other loan
fees. Net
gains on
sale of
foreclosed
real estate
increased
$207,000
going from a
$67,000 net
loss on
sales of
foreclosed
real estate
in 2006
compared to
a net gain
of $140,000
in 2007.
Noninterest
expense
decreased
$719,000 to
$9.0 million
for the year
ended
December 31,
2007
compared to
$9.7 million
for 2006, a
decrease of
7.4%.
Salaries and
employee
benefits
decreased
$445,000 due
to staff
reductions
and employee
benefit
modifications
that were
implemented
late in
2006.
Professional
services
increased
$149,000
primarily
from the
costs of the
going
private
transaction
the Company
attempted in
2007.
Foreclosed
property
expense
decreased
$139,000 as
a result of
the Bank
reducing its
holding
costs
through more
aggressive
sales
efforts on
foreclosed
properties.
Other
general and
administrative
expenses
decreased
$182,000
primarily
due to a
decrease in
marketing
and
advertising
expense of
$137,000.
Earnings for
the quarter
ended
December 31,
2007 were
$318,000, or
$.14 per
share,
compared to
$570,000, or
$.24 per
share, for
the quarter
ended
December 31,
2006.
Net interest
income
decreased
$131,000 for
the quarter
ended
December 31,
2007
compared to
the same
quarter a
year ago.
This
occurred for
the same
reasons
mentioned
above as
well as the
effect of a
one-time
adjustment
in 2006
which
increased
interest
income in
the quarter
by $103,000.
The
provision
for loan
losses was
$282,000 for
the quarter
ended
December 31,
2007 whereas
no provision
was recorded
for the same
period in
2006.
Noninterest
income
increased
$113,000 for
the quarter
ended
December 31,
2007
compared to
the same
period in
2006
consistent
with the
trends for
the entire
year with
the
exception of
brokered
loan income
which
decreased
$13,000 in
the fourth
quarter of
2007. Due to
changes that
have
occurred
within the
mortgage
market over
the latter
part of
2007,
management
does not
expect
brokered
loan income
to be a
significant
source of
income in
the
foreseeable
future.
Noninterest
expense
increased
$74,000 for
the quarter
ended
December 31,
2007 due
primarily to
the accrual
of $89,000
for employee
bonuses and
$60,000 of
expense
related to
the going
private
transaction.
These
increases
were offset
by the
expense
reductions
mentioned
above
consistent
with the
Company’s
efforts to
control
operating
expenses.
Total assets
were $279.0
million at
December 31,
2007
compared to
$290.0
million at
December 31,
2006.
This
decrease of
3.8% was due
primarily to
a decrease
in net loans
of $5.5
million and
a decrease
in cash and
investments
of $4.0
million. The
reduction in
the loan
portfolio
was the
result of
management’s
strategy to
sell or
broker a
significant
portion of
new
originations
of
one-to-four
family loans
in 2007. The
sale of $1.5
million of
troubled
loans during
2007 also
contributed
to the
reduction in
net loans.
Deposits
decreased
$14.6
million, or
7.6%, to
$177.9
million at
December 31,
2007. This
was the
result of
brokered and
non-local
CDs
decreasing
by $10.4
million made
possible by
the
reduction in
the loan
portfolio.
Savings
accounts
decreased
$3.4 million
which was
offset by an
increase in
money market
accounts of
$3.4 million
as customers
sought
higher
yields on
their
deposit
accounts.
Stockholders’
equity
decreased to
$39.0
million at
December 31,
2007 from
$40.0
million at
December 31,
2006
primarily
due to the
repurchase
of $2.5
million in
Company
stock and
dividends of
$723,000
offset by
$1.7 million
in net
income.
The Monarch
Community
Bancorp,
Inc. Annual
Meeting of
Shareholders
will be held
Tuesday,
April 22,
2008 at the
Company’s
main office
at
375 North
Willowbrook
Road
in Coldwater, Michigan.
Monarch
Community
Bank is
headquartered
in
Coldwater, Michigan and operates six full service retail
offices in
Branch,
Calhoun and
Hillsdale
counties.
For
additional
information,
visit
Monarch
Community
Bancorp’s
website at
www.monarchcb.com.
For additional information:
Donald L. Denney, CEO
(517) 279-3978
ddenney@monarhcb.com
William C. Kurtz, COO
(517) 279-3960
wkurtz@monarchcb.com
|
