##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
 þ
    
    Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended March 31, 2008
 or
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act
 For the transition period
from _________ to _________
 Commission file number: 000-49814
 MONARCH COMMUNITY BANCORP, INC.
 (Exact name of registrant as specified in its charter)
 Maryland(State or other jurisdiction 
of incorporation or organization)
    
    04-3627031(I.R.S. employer
identification no.)
 (Address of principal executive offices)
 (Registrants telephone number)
 þ o
  Large Accelerated Filer oAccelerated Filer oNon-Accelerated Filer o(Do not check if a smaller reporting company)Smaller Reporting Company þ o þ




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##### 



Monarch Community Bancorp, Inc.
 PART I 
    
    FINANCIAL INFORMATIONItem 1 
    
    Condensed Financial Statements:Condensed Consolidated Balance Sheets  March 31, 2008 and December 31, 2007
    
    1Condensed Consolidated Statements of Income  Three Months Ended March 31, 2008 and 2007
    
    2Condensed Consolidated Statements of Changes in Stockholder's Equity  Three Months Ended March 31, 2008 and 2007
    
    3Condensed Consolidated Statements of Cash Flows  Three Months Ended March 31, 2008 and 2007
    
    4Notes to Condensed Consolidated Financial Statements
    
    5Item 2 
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations
    
    7Item 3 
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    13Item 4T
    
    Controls and Procedures
    
    14PART II 
    
    OTHER INFORMATIONItem 1 
    
    Legal Proceedings
    
    14Item 1A 
    
    Risk Factors
    
    14Item 2 
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    14Item 3 
    
    Defaults Upon Senior Securities
    
    15Item 4 
    
    Submission of Matters to a Vote of Security Holders
    
    15Item 5 
    
    Other Information
    
    15Item 6 
    
    Exhibits
    
    15SIGNATURES
    
    16CERTIFICATIONS
    
    1720Amended and Restated Directors Deferred Compensation PlanCertificationCertificationSection 1350 Certification




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##### Table of Contents



PART IFINANCIAL INFORMATION
 
 Item 1. CONDENSED FINANCIAL STATEMENTS
 
 Condensed Consolidated Balance Sheets
 (Unaudited)March 31,
    
    
    December 31,2008
    
    
    2007(Dollars in thousands,except per share data)AssetsCash and due from banks
    
    
    9,527
    
    
    $
    7,691Federal Home Loan Bank overnight time and
other interest bearing deposits
    
    
    4,997
    
    
    
    6,151Total cash and cash equivalents
    
    
    14,524
    
    
    
    13,842Securities  Available for sale
    
    
    10,172
    
    
    
    11,084Securities  Held to maturity
    
    
    240
    
    
    
    238Other securities
    
    
    4,237
    
    
    
    4,237Loans held for sale
    
    
    1,405
    
    
    
    422Loans, net
    
    
    231,135
    
    
    
    224,797Foreclosed assets, net
    
    
    1,072
    
    
    
    1,515Premises and equipment
    
    
    4,631
    
    
    
    4,675Goodwill
    
    
    9,606
    
    
    
    9,606Core deposit intangible
    
    
    809
    
    
    
    862Other assets
    
    
    7,350
    
    
    
    7,930Total assets
    
    $
    285,181
    
    
    $
    279,208Liabilities and Stockholders EquityLiabilitiesDeposits:Non-interest bearing
    
    $
    15,878
    
    
    $
    13,609Interest bearing
    
    
    175,355
    
    
    
    164,327Total deposits
    
    
    191,233
    
    
    
    177,936Federal Home Loan Bank advances
    
    
    52,330
    
    
    
    59,330Accrued expenses and other liabilities
    
    
    2,927
    
    
    
    2,856Total liabilities
    
    
    246,490
    
    
    
    240,122Stockholders EquityCommon stock  $0.01 par value, 20,000,000 shares authorized, 2,262,380
shares issued and outstanding at March 31, 2008 and
2,321,585 shares issued and outstanding at December 31, 2007
    
    
    23
    
    
    
    23Additional paid-in capital
    
    
    23,203
    
    
    
    23,828Retained earnings
    
    
    16,469
    
    
    
    16,341Accumulated other comprehensive income
    
    
    144
    
    
    
    52Unearned compensation
    
    
    (1,148
    )
    
    
    (1,158
    )Total stockholders equity
    
    
    38,691
    
    
    
    39,086Total liabilities and stockholders equity
    
    $
    285,181
    
    
    $
    279,208
  1




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##### Table of Contents



Condensed Consolidated Statements of Income (Unaudited)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch
    
    
    March2008
    
    
    2007(Dollars in thousands, except per share data)Interest IncomeLoans, including fees
    
    $
    4,058
    
    
    $
    4,079Investment securities
    
    
    170
    
    
    
    207Federal funds sold and overnight deposits
    
    
    58
    
    
    
    141Total interest income
    
    
    4,286
    
    
    
    4,427Interest ExpenseDeposits
    
    
    1,555
    
    
    
    1,629Federal Home Loan Bank advances
    
    
    659
    
    
    
    724Total interest expense
    
    
    2,214
    
    
    
    2,353Net Interest Income
    
    
    2,072
    
    
    
    2,074Provision for Loan Losses
    
    
    308
    
    
    
    225Net Interest Income After Provision for Loan Losses
    
    
    1,764
    
    
    
    1,849Non-interest IncomeFees and service charges
    
    
    571
    
    
    
    600Loan servicing fees
    
    
    109
    
    
    
    111Net gain on sale of loans
    
    
    266
    
    
    
    193Net gain (loss) on sale of securities
    
    
    
    
    
    
    (19
    )Net gain (loss) on sale of fixed assets
    
    
    
    
    
    
    (4
    )Other income
    
    
    53
    
    
    
    119Total non-interest income
    
    
    999
    
    
    
    1,000Non-interest ExpenseSalaries and employee benefits
    
    
    1,191
    
    
    
    1,106Occupancy and equipment
    
    
    263
    
    
    
    266Data processing
    
    
    202
    
    
    
    187Amortization of mortgage servicing rights
    
    
    119
    
    
    
    86Professional services
    
    
    86
    
    
    
    105Amortization of core deposit intangible
    
    
    54
    
    
    
    68NOW account processing
    
    
    45
    
    
    
    44ATM/Debit card processing
    
    
    46
    
    
    
    44Foreclosed property expense
    
    
    58
    
    
    
    23Other general and administrative
    
    
    257
    
    
    
    262Total non-interest expense
    
    
    2,321
    
    
    
    2,191Income  Before income taxes
    
    
    442
    
    
    
    658Income Taxes
    
    
    110
    
    
    
    164Net Income
    
    $
    332
    
    
    $
    494Earnings Per ShareBasic
    
    $
    0.15
    
    
    $
    0.21Diluted
    
    $
    0.15
    
    
    $
    0.21
  2




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##### Table of Contents



AccumulatedCommon Stock
    
    
    
    
    
    
    
    
    
    
    OtherNumber of
    
    
    
    
    
    
    Additional
    
    
    Retained
    
    
    Comprehensive
    
    
    UnearnedShares
    
    
    Amount
    
    
    Paid in Capital
    
    
    Earnings
    
    
    Income
    
    
    Compensation
    
    
    TotalBalance January 1, 2007
    
    
    2,534
    
    
    $
    25
    
    
    $
    26,191
    
    
    $
    15,319
    
    
    $
    (63
    )
    
    $
    (1,486
    )
    
    $
    39,9863,326 shares repurchased at
average price of $11.95/share
    
    
    (3
    )
    
    
    
    
    
    
    (40
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (40
    )Vesting of 17,589 restricted shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    235
    
    
    
    235Allocation of ESOP shares
    
    
    
    
    
    
    
    
    
    
    43
    
    
    
    
    
    
    
    
    
    
    
    93
    
    
    
    136Repurchase of 208,570 shares at
average price of $11.78/share
    
    
    (209
    )
    
    
    (2
    )
    
    
    (2,454
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,456
    )Stock option expenses
    
    
    
    
    
    
    
    
    
    
    88
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88Comprehensive Income:Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,745
    
    
    
    
    
    
    
    
    
    
    
    1,745Change in unrealized loss on
securities available-for-sale,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    115
    
    
    
    
    
    
    
    115Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,860Dividends paid ($0.29/share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (723
    )
    
    
    
    
    
    
    
    
    
    
    (723
    )Balance December 31, 2007
    
    
    2,322
    
    
    $
    23
    
    
    $
    23,828
    
    
    $
    16,341
    
    
    $
    52
    
    
    $
    (1,158
    )
    
    $
    39,086Vesting of 788 restricted shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    10Repurchase of 59,205 shares at
average price of $10.52/share
    
    
    (59
    )
    
    
    
    
    
    
    (628
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (628
    )Stock option expenses
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    332
    
    
    
    
    
    
    
    
    
    
    
    332securities available-for-sale,
net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    92
    
    
    
    
    
    
    
    92Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    424Dividends paid ($0.09/share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (204
    )
    
    
    
    
    
    
    
    
    
    
    (204
    )Balance March 31, 2008
    
    
    2,263
    
    
    $
    23
    
    
    $
    23,203
    
    
    $
    16,469
    
    
    $
    144
    
    
    $
    (1,148
    )
    
    $
    38,691
  3




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Three Months EndedMarch 312008
    
    
    2007(Dollars in thousands)Cash Flows From Operating ActivitiesNet Income
    
    $
    332
    
    
    $
    494Adjustments to reconcile net income to net cash from operating activitiesDepreciation and amortization
    
    
    289
    
    
    
    278Provision for loan losses
    
    
    308
    
    
    
    225Stock option expense
    
    
    3
    
    
    
    22Gain on sale of foreclosed assets
    
    
    (16
    )
    
    
    (66
    )Mortgage loans originated for sale
    
    
    (13,132
    )
    
    
    (8,373
    )Proceeds from sale of mortgage loans
    
    
    12,415
    
    
    
    7,821Gain on sale of mortgage loans
    
    
    (266
    )
    
    
    (193
    )Loss on sale of available for sale securities
    
    
    
    
    
    
    19Earned stock compensation
    
    
    10
    
    
    
    Loss on disposal of equipment
    
    
    
    
    
    
    4Net change in:Deferred loan fees
    
    
    (39
    )
    
    
    7Accrued interest receivable
    
    
    146
    
    
    
    66Other assets
    
    
    270
    
    
    
    261Accrued expenses and other liabilities
    
    
    82
    
    
    
    31Net cash provided by operating activities
    
    
    402
    
    
    
    596Cash Flows From Investing ActivitiesActivity in available-for-sale securities:Purchases
    
    
    
    
    
    
    (3,819
    )Proceeds from sales of securities
    
    
    
    
    
    
    2,928Proceeds from maturities of securities
    
    
    1,049
    
    
    
    Activity in held-to-maturity securities:Purchases
    
    
    (7
    )
    
    
    Proceeds from maturities of securities
    
    
    5
    
    
    
    42Loan originations and principal collections, net
    
    
    (6,655
    )
    
    
    3,346Proceeds from sale of foreclosed assets
    
    
    496
    
    
    
    430Purchase of premises and equipment
    
    
    (73
    )
    
    
    (37
    )Net cash provided by (used in) investing activities
    
    
    (5,185
    )
    
    
    2,890Cash Flows From Financing ActivitiesNet increase in deposits
    
    
    13,297
    
    
    
    876Repurchase of common stock
    
    
    (628
    )
    
    
    Dividends paid
    
    
    (204
    )
    
    
    (177
    )Proceeds from FHLB advances
    
    
    6,000
    
    
    
    2,500Repayment of FHLB advances
    
    
    (13,000
    )
    
    
    (2,500
    )Net cash provided by financing activities
    
    
    5,465
    
    
    
    699Net Increase in Cash and Cash Equivalents
    
    
    682
    
    
    
    4,185Cash and Cash Equivalents Beginning
    
    
    13,842
    
    
    
    15,297Cash and Cash Equivalents End
    
    $
    14,524
    
    
    $
    19,482Supplemental Cash Flow Information:Cash paid for:Interest
    
    
    2,210
    
    
    
    2,331Income taxes
    
    
    125
    
    
    
    100Noncash investing activities:Loans transferred to foreclosed assets
    
    
    48
    
    
    
    117
  4




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##### Table of Contents



MONARCH COMMUNITY BANCORP, INC.  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 ORGANIZATION
   BASIS OF PRESENTATION
     ALLOWANCE FOR LOAN LOSSES
    RECLASSIFICATIONS
  5




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EARNINGS PER SHARE
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch 31, 2008
    
    
    March 31, 2007Basic earnings per shareNumerator:Net income
    
    $
    332
    
    
    $
    494Denominator:Weighted average common shares outstanding
    
    
    2,283
    
    
    
    2,534Less: Average unallocated ESOP shares
    
    
    (83
    )
    
    
    (93
    )Less: Average non-vested RRP shares
    
    
    (25
    )
    
    
    (42
    )Weighted average common shares outstanding
for basic earnings per share
    
    
    2,175
    
    
    
    2,399Basic earnings per share
    
    $
    0.15
    
    
    $
    0.21Diluted earnings per shareNumerator:Net income
    
    $
    332
    
    
    $
    494Denominator:Weighted average common shares outstanding
for basic earnings per share
    
    
    2,175
    
    
    
    2,399Add: Dilutive effects of restricted stock
and stock options
    
    
    
    
    
    
    Weighted average common shares and dilutive
potential common shares outstanding
    
    
    2,175
    
    
    
    2,399Diluted earnings per share
    
    $
    0.15
    
    
    $
    0.21
 STOCK-BASED COMPENSATION
   6




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RECENT ACCOUNTING PRONOUNCEMENTS
   FAIR VALUE MEASUREMENTS
      Quoted Prices inActive Markets for
    
    Significant Other
    
    SignificantIdentical Assets
    
    Observable Inputs
    
    Unobservable Inputs
    
    Balance at March(Level 1)
    
    (Level 2)
    
    (Level 3)
    
    31, 2008AssetsInvestment
securities-
available  for 
sale
    
    $
    6,804
    
    
    $
    3,368
    
    
    
    
    
    
    $
    10,172
   
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   7




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FORWARD-LOOKING STATEMENTS
   CRITICAL ACCOUNTING POLICIES
  Allowance for Loan Losses
 Foreclosed Assets .
 Goodwill and Other Intangible Assets
 FINANCIAL CONDITION
 Assets
  Securities
  8




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##### Table of Contents



Loans
  March 31,2008
    
    
    December 31, 2007Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in thousands)Real Estate Loans:One-to-four family
    
    $
    123,142
    
    
    
    52.7
    
    
    $
    126,780
    
    
    
    55.8
    %Multi-family
    
    
    5,848
    
    
    
    2.5
    
    
    
    5,594
    
    
    
    2.5Commercial
    
    
    63,785
    
    
    
    27.3
    
    
    
    56,714
    
    
    
    25.0Construction or development
    
    
    6,752
    
    
    
    2.9
    
    
    
    6,409
    
    
    
    2.8Total real estate loans
    
    
    199,527
    
    
    
    85.4
    
    
    
    195,497
    
    
    
    86.1Other loans:Consumer loans:Home equity
    
    
    19,944
    
    
    
    8.5
    
    
    
    20,430
    
    
    
    9.1Other
    
    
    6,671
    
    
    
    2.9
    
    
    
    7,014
    
    
    
    3.1Total consumer loans
    
    
    26,615
    
    
    
    11.4
    
    
    
    27,444
    
    
    
    12.1Commercial Business Loans
    
    
    7,367
    
    
    
    3.2
    
    
    
    4,228
    
    
    
    1.9Total other loans
    
    
    33,982
    
    
    
    14.6
    
    
    
    31,672
    
    
    
    14.0Total Loans
    
    
    233,509
    
    
    
    100.0
    %
    
    
    227,169
    
    
    
    100.0
    %Allowance for loan losses
    
    
    1,786
    
    
    
    
    
    
    
    1,824Less: Net deferred loan fees
    
    
    588
    
    
    
    
    
    
    
    548Total Loans, net
    
    $
    231,135
    
    
    
    
    
    
    $
    224,797
   Deposits
  9




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##### Table of Contents



Federal Home Loan Bank Advances
  Equity
   RESULTS OF OPERATIONS
 Net Interest Income
    Three Months Ended March 31,
    
    
    Three Months Ended March 31,2008
    
    
    2007Average
    
    
    Interest
    
    
    
    
    
    
    Average
    
    
    InterestOutstanding
    
    
    Earned/
    
    
    Yield/
    
    
    Outstanding
    
    
    Earned/
    
    
    Yield/Balance
    
    
    Paid
    
    
    Rate
    
    
    Balance
    
    
    Paid
    
    
    Rate(dollars in thousands)Fed Funds and overnight deposits
    
    $
    9,268
    
    
    $
    58
    
    
    
    2.51
    
    
    $
    11,149
    
    
    $
    141
    
    
    
    5.13
    %Investment securities
    
    
    10,993
    
    
    
    119
    
    
    
    4.34
    
    
    
    14,198
    
    
    
    155
    
    
    
    4.43Other securities
    
    
    4,174
    
    
    
    50
    
    
    
    4.80
    
    
    
    4,174
    
    
    
    52
    
    
    
    5.05Loans receivable
    
    
    230,676
    
    
    
    4,058
    
    
    
    7.06
    
    
    
    229,580
    
    
    
    4,079
    
    
    
    7.21Total earning assets
    
    $
    255,111
    
    
    $
    4,285
    
    
    
    6.74
    
    
    $
    259,101
    
    
    $
    4,427
    
    
    
    6.93Demand and NOW Accounts
    
    $
    31,726
    
    
    $
    25
    
    
    
    0.32
    
    
    $
    33,208
    
    
    $
    16
    
    
    
    0.20Money market accounts
    
    
    27,899
    
    
    
    231
    
    
    
    3.32
    
    
    
    22,384
    
    
    
    204
    
    
    
    3.70Savings accounts
    
    
    19,147
    
    
    
    20
    
    
    
    0.42
    
    
    
    22,661
    
    
    
    23
    
    
    
    0.41Certificates of deposit
    
    
    108,370
    
    
    
    1,278
    
    
    
    4.73
    
    
    
    115,604
    
    
    
    1,386
    
    
    
    4.86Federal Home Loan Bank Advances
    
    
    52,756
    
    
    
    659
    
    
    
    5.01
    
    
    
    52,910
    
    
    
    724
    
    
    
    5.55Total interest bearing liabilities
    
    $
    239,898
    
    
    
    2,213
    
    
    
    3.70
    
    
    $
    246,767
    
    
    
    2,353
    
    
    
    3.87Net interest income
    
    
    
    
    
    $
    2,072
    
    
    
    
    
    
    
    
    
    
    $
    2,074Net interest spread
    
    
    
    
    
    
    
    
    
    
    3.04
    
    
    
    
    
    
    
    
    
    
    
    3.06Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.25
    
    
    
    
    
    
    
    
    
    
    
    3.20
 10




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##### Table of Contents



Provision for Loan Losses
   March 31, 2008
    
    
    December 31,2007(In thousands)Non-performing loans
    
    $
    1,149
    
    
    $
    865Real estate in judgement
    
    
    154
    
    
    
    630Foreclosed and repossessed assets
    
    
    918
    
    
    
    885Total non-performing assets
    
    $
    2,221
    
    
    $
    2,380Non-performing loans to total loans
    
    
    0.50
    %
    
    
    0.38
    %Non-performing assets to total assets
    
    
    0.78
    %
    
    
    0.85
    %Allowance for loan losses to non-performing loans
    
    
    155.50
    %
    
    
    210.80
    %Allowance for loan losses to net loans receiveable
    
    
    0.77
    %
    
    
    0.81
    %
  Non-interest Income
   Non-interest Expense
  11




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##### Table of Contents



Federal Income Tax Expense
  LIQUIDITY
     12




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##### Table of Contents



CONTRACTUAL OBLIGATIONS AND OFF BALANCE SHEET ARRANGEMENTS
  Contractual Obligations
 Payments Due by PeriodLess than
    
    
    1-3
    
    
    3-5
    
    
    AfterTotal
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 years(Dollars in Thousands)Certificates of deposit
    
    $
    104,486
    
    
    $
    58,918
    
    
    $
    35,018
    
    
    $
    10,550
    
    
    $
    FHLB advances
    
    
    52,330
    
    
    
    14,652
    
    
    
    19,328
    
    
    
    18,350
    
    
    
    Total
    
    $
    156,816
    
    
    $
    73,570
    
    
    $
    54,346
    
    
    $
    28,900
    
    
    $
    
 Other Commitments
 Amount of commitment expiration per periodLess than
    
    
    1-3
    
    
    3-5
    
    
    AfterTotal
    
    
    1 year
    
    
    years
    
    
    years
    
    
    5 years(Dollars in Thousands)Commitments to grant loans
    
    $
    6,246
    
    
    $
    6,246
    
    
    $
    
    
    
    $
    
    
    
    $
    Unfunded commitments under HELOCs
    
    
    15,407
    
    
    
    1,566
    
    
    
    3,516
    
    
    
    3,818
    
    
    
    6,507Unfunded commitments under Commercial LOCs
    
    
    2,685
    
    
    
    1,012
    
    
    
    994
    
    
    
    679
    
    
    
    Letters of credit
    
    
    16
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    24,354
    
    
    $
    8,840
    
    
    $
    4,510
    
    
    $
    4,497
    
    
    $
    6,507
  CAPITAL RESOURCES
  
 ITEM 3. QUANTITATIVE AND QUALITIVE DISCLOSURES ABOUT MARKET RISK
   13




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##### Table of Contents



ITEM 4T. CONTROLS AND PROCEDURES
   
 PART II-OTHER INFORMATION
 
 Item 1. LEGAL PROCEEDINGS
  
 Item 1A. RISK FACTORS
  
 Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (c)
  (a)
    
    
    (b)
    
    
    (c)
    
    
    (d)Maximum NumberTotal Number of Shares
    
    
    (or Approximate(or Unit) Purchased as
    
    
    Dollar Value) of SharesTotal Number of
    
    
    
    
    
    
    Part of Publicly
    
    
    (or Units) that mayShares (or Units)
    
    
    Average Price paid
    
    
    Anounced Plans or
    
    
    yet Be Purchased UnderPeriod
    
    Purchased
    
    
    per Share (or Unit)
    
    
    Programs
    
    
    the Plans or Program1/01/081/31/08
    
    
    41,200
    
    
    $
    10.56
    
    
    
    41,200
    
    
    
    3,2302/01/082/29/08
    
    
    3,230
    
    
    $
    11.02
    
    
    
    3,230
    
    
    
    3/01/083/31/08
    
    
    14,775
    
    
    $
    10.28
    
    
    
    14,775
    
    
    
    213,225Total
    
    
    59,205
    
    
    $
    10.52
    
    
    
    59,205
    
    
    
    213,225
  14




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##### Table of Contents



Item 3. DEFAULTS UPON SENIOR SECURITIES
  
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 Item 5. OTHER INFORMATION
  
 Item 6. EXHIBITS
  15




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##### Table of Contents



SIGNATURES
  MONARCH COMMUNITY BANCORP, INC.Date: May 14, 2008
    By:
    /s/ Donald L. DenneyDonald L. DenneyPresident and Chief Executive OfficerDate: May 14, 2008
    And:
    /s/ Rebecca S. CrabillRebecca S. CrabillSenior Vice President, Chief Financial Officer 16




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##### Table of Contents



INDEX TO EXHIBITS
 Exhibit No.
    
    Description of Exhibit10.1
    
    Management Continuity Agreement with Rebecca S. Crabill (Incorporated by references from
Current Report on Form 8-K filed on February 27, 2008).10.2
    
    Amended and restated Directors Deferred Compensation Plan.31.1
    
    Rule 13a-14(a) Certification of the Corporations President and Chief Executive Officer.31.2
    
    Rule 13a-14(a) Certification of the Corporations Chief Financial Officer.32
    
    Section 1350 Certification.
 17