FDIC Advisory Committee on Economic Inclusion Bank Successes in Reaching the Underserved Monroe Bank

1
FDIC Advisory Committee on Economic
InclusionBank Successes in Reaching the
UnderservedMonroe Bank Trust

• February 5, 2009

2
Monroe Bank Trust(MBT)

• 1.5B Community Bank
• Founded 1858 celebrated 150th last year
• Traded on Nasdaq (MBTF) since May, 2003
• 25 branch locations
• Recently acquired deposits of Main Street Bank
• MBTeam Banking

3
Market Overview

• Headquartered in Monroe in Southeast Michigan
  between Detroit and Toledo
• Branches located in suburban and agricultural
  areas in Monroe County and southern Wayne County
• Over 10.6 unemployment statewide
• 9.6 in Monroe
• National Unemployment 7.2
• Over 20 high school dropout rate
• US Bureau of Labor Statistics December 2008
• Monroe Public Schools

4

• Market Share
• 53 market share in Monroe County
• .9 in Wayne County
• CRA Assessment Areas
• Monroe 1 low and 1 moderate 2 minority
• Wayne 2 low and 2 moderate since acquisition of
  Plymouth and Northville areas 21 minority
• (previously 1 low, 1 moderate, 6 minority)
• Recognized a need to assist people in
  reestablishing good financial management
  practices or improving history
• Needed to maintain consistency among branch
  personnel at account opening for persons with
  financial challenges

5
(No Transcript)
6
Product Design
-Personal Accounts only -50 minimum deposit to
open -10 monthly service fee -No minimum balance
required -Free online access -Unlimited check
writing -Free eStatement -ATM/Debit card with no
deposit ability and daily withdrawal limit of
300 -Proof of paid balances at other
FIs -Graduate to traditional products in 12
months
7
Results to Date

• - 49 Accounts opened
• 15 Closed 69.4 retention
• 11 of the 15 closed with negative balances (73
  of closed or 22.4 of total)
• -9,534 in current balances
• -194.57 average balance on open accounts
• 606 in unpaid overdrafts (6.4 of current
  balances)

8
Young Adult Checking
-Launches in April 2009 -Designed for 18 24
year old group -50 to open, no minimum
balance -20 of free ATM use each
month -ATM/Debit card with deposit
capability/standard daily withdrawal limit -Will
require training at account opening -100 debit
rewards points at account opening -Defaults to
High Interest checking product on 25th birthday
9
Critical ElementMBT Outreach Education
Efforts

• Elementary Partnership in Education Program
• -MBT Scholarship Program
• -Bank At Work Programs
• -MBT ID
• -CARE Process

10
-ENLIST Volunteer Program -25th Anniversary
Year -137,000 Volunteer Hours to date -Average
5,480 hours per year currently 9,000 -325
members (85 of employee base) -45,112 in
additional funds raised -Over 100 organizations
served each year -National and regional
recognition
11
-MBTeach -Extension of ENLISTvolunteer
program -41 of 380 (11) Employees Certified as
MBTeachers -14 organizations requesting
classes after 1 ad -FDIC Money Smart
Curriculum -High Demand for -Your Own
Home -To Your Credit -Money Matters
12
-The Learning Bank -Low income, underserved
population -31 African American and 5.2
Hispanic -Collaboration with Monroe County
Community College Monroe County Opportunity
Program Monroe County Intermediate School
District Southeast Michigan Community Alliance
State of Michigan Department of
Education -GED Prep and Testing -COMPASS
Testing -Financial Literacy Courses via MBTeach
13
Opinion Piece Monroe Evening News January 29,2009
14
Conclusion
Multiple approaches to areas served Concentration
on literacy supported by products