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

February 5, 2009

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

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

        - 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

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 FI’s

-”Graduate” to traditional products in 12 months

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)

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

Critical Element:MBT Outreach & Education Efforts
        - Elementary Partnership in Education 		Program

-MBT Scholarship Program

-Bank At Work Programs

-MBT ID

-CARE Process

-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

-MBTeach 

	-Extension of “ENLIST”volunteer 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

-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

Opinion Piece 

Monroe Evening News

January 29,2009

Conclusion

Multiple approaches to areas served

Concentration on literacy supported by products