COLDWATER, Mich., Feb. 6, 2013 (GLOBE NEWSWIRE) -- Monarch Community Bancorp, Inc. (OTCQB:MCBF), the parent company of Monarch Community Bank, today announced a profit of $747,000 for the quarter ended December 31, 2012 compared to a loss of $863,000 for the same period in 2011. Basic and diluted earnings per share for the quarter ended December 31, 2012 were $.38 compared to basic and diluted losses per share of ($.44) for the same period in 2011. Monarch Community Bank recorded a loss for the year ended December 31, 2012 of ($741,000) compared to a net loss of ($743,000) for the same period a year ago. Basic and diluted losses per share for the year ended December 31, 2012 were ($.37). Basic and diluted losses per share for the year ended December 31, 2012 were also ($.37)
Highlights of the quarter include the following:
- A reverse provision in Allowance for Loan and Lease loss of $1.1 million due to a recovery on a large credit which was sold during the 4 th quarter of 2012.
- A 32% decline in Nonperforming assets from $13.2 million at December 31, 2011 to $9.0 million at December 31, 2012.
- An increase in gain on sale of loans of $425,000, from $305,000 for the 4 th quarter of 2011 to $730,000 for the 4 th quarter of 2012.
- An increase in salaries and employee benefits of 30.74%.
- Improvement in capital ratios.
"We are pleased with the significant, continued improvements in the loan portfolio, as evidenced by the steady decline in Nonperforming assets," stated Richard J. DeVries, President and CEO of Monarch Community Bank and Monarch Community Bancorp, Inc. "Based on a current analysis of the portfolio, we anticipate that this trend will continue into 2013. In addition, our external loan review, conducted by F & M Credit Services, Inc. in the fourth quarter of 2012 resulted in no downgrades of credits, and no recommendations for additional charge-offs or loan loss provisions. Likewise, the recovery of $1.1MM from the sale of a loan note to an investor reflects the conservative approach we have taken in writing down the value of assets at the time of problem identification. We are hopeful that this strategy will yield further recoveries in 2013. With these improvements in our portfolio, combined with the opening of the ninth residential loan production office, located in Adrian, Michigan, we are well positioned for the inception of our capital raise, which is anticipated to begin in the first quarter of 2013."