Monarch Bank is headquartered in Chesapeake and is the 24th largest bank in the state of Virginia. It is also the 650th largest bank in the nation. It was established in 1999 and as of December of 2013, it had grown to 664 employees at 14 locations. Monarch Bank has a A health rating.
This bank would be a good bank to deal with except that they do not offer online banking unless you have one of their premium checking accounts. In order to have one of those checking accounts, you must keep a $500 daily balance in order to avoid a monthly fee. Only then do you have access to onine banking. I have a Home Equity Line of Credit with them and opened a basic checking account with them to have an amount direct deposited into it each payday in order for my payment to automatically come out of that account. In the beginning, I had access to online banking and could easily make extra payments to the loan, however, three years ago, Monarch decided to change their practices and unless I "upgraded" my checking account to another one that cost me each month, I would lose my online access. Because I only opened this account to save 1/4% and to easily make payments on the loan, I knew I would never keep a $500 daily balance in that account, so I lost online access. When I complained to the managemet about it, I was told to just wait, that all the "big banks" were going that way. Well, I'm here to tell you that it is three years later and I have accounts at four other banks, two of the largest nationwide, a large local one and a credit union and NONE of them keep me from online banking...in fact, they encourage online banking. One of them only holds my mortgage, I have no checking account with them at all, yet I still have access to their online banking. With the others, all I have to have is an account with direct deposit and it costs me nothing. Now to make things worse, I received a letter from Monarch tellling me they were pleased to announce that they were changing their personal checking account benefits and that they are consolidating their accounts to offer three solutions. They are thrilled to announce that each of these come with the upgraded advantages of online banking with bill pay and other perks. What does this mean to me? "You do not have to do anything. Your checking account upgrade will occur automatically. After careful analysis of your current banking relationship, we are pleased to introduce you to our" name the account solution. I will now enjoy all the online banking services they have to offer. The catch? You guessed it. I have to maintain a daily balance of $500 in order to avoid a monthly service fee to keep the account. Seriously? I didn't ask for this account, I'm being told I have to have this account and I'm going to be charged to do it or worse yet, have to move $500 from another institution's account to this one just so that it remains free? Why should I have to pay anything just for the privilege of paying on my loan? It doesn't seem like good business practices. As a result I will be finding a way to sever my business ties with this bank as soon as possible...unfortunatley, until that happens, I will be forced to play it their way.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of December 31, 2013 Monarch Bank had $2.51 million in non-current loans and owned real-estate with $116.72 million in equity and loan loss allowances on hand to cover it. This gives Monarch Bank a Texas Ratio of 2.15% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Monarch Bank decreased dramatically from 3.14% as of December 31, 2012 to 2.15% as of December 31, 2013, resulting in a positive change of 31.48%.This indicates that the balance sheet and financial strength for Monarch Bank has improved dramatically in recent periods.
In the past year, Monarch Bank has decreased its total deposits by -$8.76 million, resulting in -0.97% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Monarch Bank has shown is average.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Monarch Bank has $1.02 billion in assets with $116.72 million in equity, resulting in a capitalization level of 11.49%, which is excellent.
|FDIC Certificate #||34945|
|Assets and Liabilities|
|Equity Capital||$107.66 million|
|Loan Loss Allowance||$9.06 million|
|Unbacked Noncurrent Loans||$2.21 million|
|Real Estate Owned||$302,000|
|Historic Data - December 2012|
|Equity Capital||$102.12 million|
|Loan Loss Allowance||$10.91 million|
|Unbacked Noncurrent Loans||$2.21 million|
|Real Estate Owned||$0|
|Profit Margin - Quarterly|
|Net Interest Margin||4.09%|
|Return on Assets||1.09%|
|Return on Equity||11.1%|
|Interest Income||$44.35 million|
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