Attached files
file | filename |
---|---|
8-K/A - FORM 8-K/A - MONARCH COMMUNITY BANCORP INC | k50260e8vkza.htm |
EXHIBIT 99.1
Monarch Community Bank Announced Today a Restatement of Fourth Quarter Earnings
COLDWATER, MICHIGAN, March 31, 2011 Monarch Community Bancorp, Inc. (Nasdaq Capital Market:MCBF),
the parent company of Monarch Community Bank, announced today a restatement of the fourth quarter,
2010 earnings and capital position, concurrent with the completion of a regularly scheduled annual
FDIC and OFIR examination. Net loss for the quarter was ($401,000), compared to a loss of $(17.5)
million for the same period a year ago. Basic and diluted earnings (loss) per share in the fourth
quarter of 2010 were $(.67), compared to ($8.90) reported for the fourth quarter of 2009. For the
year, net loss in 2010 was $(11.2) million compared to net loss of $(19.7) million in 2009. Basic
and diluted loss per share for the full year were $(5.68) in 2010 compared to $(10.03) in 2009.
This restatement results in the raising of the Total Risk Based Capital Ratio to 8.08% as of
December 31, 2010, returning the bank to the status of adequately capitalized as defined by the
FDIC. Non-performing loans declined from $15.6 million at December 31 2009 to $14.1 million at
December 31, 2010. At the same time, earnings for the fourth quarter of 2010 were restated to
reflect a loss of ($401,000), versus a previously reported fourth quarter income of $77,000. The
improvement in the Total Risk Based Capital ratio reflects the reclassification of a group of
assets, eliminating them from Risk Based Capital. The decline in non-performing assets is the
result of the charge-off of loans for which an adequate loan loss provision had already been
established. The restated income reflects provisions or charge-offs taken on residential Other
Real Estate Owned, Real Estate in Judgment, or non-accrual loans, relative to the new December 2,
2010 FDIC guidelines that require new valuations for all loans that enter one of these categories.
We are pleased with the continued progress of the bank in enhancing the capital ratio and in
reducing non-performing loans, stated Rick DeVries, President & CEO of Monarch Community Bank and
Monarch Bancorp, Inc.
The Monarch Community Bancorp, Inc. Annual Meeting of Shareholders will be held at 7:00 p.m. on
Tuesday, May 17, 2011 at the Companys main office at 375 North Willowbrook Road in Coldwater,
Michigan.
Monarch Community Bank is headquartered in Coldwater, Michigan and operates five full service
retail offices in Branch, Calhoun and Hillsdale counties.
For additional information, visit Monarch Community Bancorps website at www.monarchcb.com.
Contacts: |
||
Richard J. DeVries, CEO
|
Rebecca S. Crabill, CFO | |
(517) 279-3978
|
(517) 279-3956 |
-5-