Monarch Community Bancorp Inc. of Coldwater, Mich., had a loss of $17.5 million in the fourth quarter, more than five times its loss a year earlier.
The $283.2 million-asset company said Monday that it lost $19.4 million in 2009, or $10.03 per share, compared with net income of $298,000. For 2009 assets decreased by $8.6 million, or 3%.
Monarch said the results were affected by a one-time goodwill impairment charge of $9.6 million, along with an increased loan-loss provision and higher Federal Deposit Insurance Corp. premiums.
Monarch had a $13.3 million loan-loss provision in 2009, a 392% increase.
It said the higher provision was the result of increases in net chargeoffs, nonperforming assets and reserves based on the deterioration of overall credit conditions.
Chargeoffs increased to $10.3 million in 2009 from $1.8 million. At Dec. 31 nonperforming assets totaled $18.4 million, or 6.5% of total assets, compared with 1.59% a year earlier.