Monroe Federal has been around forever
It’s been almost 150 years since Monroe Federal Savings and Loan first started serving residents of Tipp City. Now, members are currently in the midst of a vote that could determine the future of this iconic local bank.
“Monroe Federal has been around forever,” Tippecanoe Historical Society member Gordon Honeyman said. “Many of the houses in Tipp were financed through Monroe Federal.”
“Savings and Loans’ business is funding mortgages for building homes,” he said. “They still do it today.”
Monroe Federal Savings and Loan members received a letter from CEO Lewis Renollet approximately two weeks ago, describing a new plan to convert the bank from its current mutual form of ownership, with no stockholders, to a stock form of ownership. Depositors and borrowers of Monroe Federal are in the process of voting on the conversion by mail, and the board of directors will vote on the plan during a special meeting scheduled for 3:30 p.m. on Monday, Sept. 26.
Under the proposed conversion plan, Monroe Federal Bancorp, Inc., a newly formed Maryland corporation, would become the holding company for Monroe Federal. The letter said that stock in Monroe Federal Bancorp is being offered to Monroe Federal members for purchase before the general public.
“Our board of directors unanimously recommends that you vote “for” the plan of conversion,” the letter sent to members said. “Although we have received conditional regulatory approval to implement the plan, we must receive the approval of our members, who are depositors and borrowers of Monroe Federal.”
“Proceeds from the sale of stock by Monroe Federal Bancorp, Inc. will support our business strategy,” the letter received by members said. “There will be no change to account numbers, interest rates or other terms of deposit accounts or loans at Monroe Federal.”
Members and customers will still receive the same services with the same board of directors, management and staff, the letter said.
Monroe Federal Savings and Loan CEO Lewis Renollet did not respond to emails or calls seeking comment for this story.
Founded in 1875, Monroe Federal Savings and Loan constructed the current downtown Tipp City branch building on East Main Street in 1962. Before that, the savings and loan had been housed in several different locations throughout town, Honeyman said.
“It’s a beautiful building,” he said of the downtown branch. “It’s definitely a mid-century modern building, which really isn’t appropriate for downtown Tipp. But we’ve accepted it now; it’s been there long enough that we accepted it.”
“It was a beautiful brick home,” Honeyman said, noting that prior to the construction of Monroe Federal, the home also served as the home of Sprecher’s Beauty Shop. “I think that a lot of people were unhappy to see that home come down, and build an extremely modern building right in the middle of downtown Tipp, but now we’re used to it and it’s a fine building.”
Since the downtown branch was constructed, the savings and loan has continued to grow and expand, opening a new branch location in Vandalia. The bank also opened a new location on West Main Street in Tipp City in February of 2023.
“It's been a wonderful savings and loan,” Honeyman said. “It’s always been extremely well-run, and well-organized and well-managed.”
“I just think it’s a normal, forward-looking business plan,” he said of the savings and loan’s proposed stock conversion plan. “We’ll find out more when the people who have deposits there vote on changing it to a stock company or not.”
Honeyman said all the reactions he has heard from Historical Society members regarding the conversion plan have been positive.
“They’ve all been very favorable,” he said.
“People are still going to think of it as a savings and loan,” Honeyman said. “They’ve had a great run up to now; there’s no reason to think they won’t continue having a great run afterwards.”