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Monarch Financial Reports Higher Income, Strong Loan Growth, and Declares Cash Dividend

CHESAPEAKE, Va., Jan. 30, 2015 (GLOBE NEWSWIRE) — Monarch Financial Holdings, Inc. (MNRK), the bank holding company for Monarch Bank, reported improved fourth quarter and annual financial performance. The Board of Directors also announced a quarterly common stock cash dividend of $0.08 per common share, payable on February 27, 2015, to shareholders of record on February 10, 2015.

Annual 2014 highlights are:

Net income of $11,211,850, for Return on Equity of 10.95% Diluted earnings per share of $1.05 Cash dividends of $0.31 paid per share, up 29% from 2013 Loans held for investment grew $59.9 million, up 8.4% Non-performing assets at 0.28% of total assets Net Interest Margin was 4.25% $1.6 billion in mortgage loans closed, with 80% home purchases

Fourth quarter 2014 highlights are:

Quarterly net income of $2,683,163, up 24% Return on equity of 10.03% Diluted earnings per share of $0.25 Loans held for investment grew $58.9 million $446 million in mortgage loans closed with 69% home purchase

“We are pleased with our quarterly and annual financial performance, with very strong organic loan growth finally taking hold in the fourth quarter. Unlike many of our peers we have grown loans with our bankers, in our markets, and have not purchased loans to drive this growth. Mortgage production was in line with the previous year with our best year ever for purchase mortgage loan closings. We improved our performance in all three lines of business to include banking, mortgage, and wealth management,” stated Brad E. Schwartz, Chief Executive Officer. “Non-performing assets remained low, our margin improved due to asset mix and pricing discipline, and our capital grew stronger with our retention of earnings. The market has responded to our performance with price appreciation in our common stock that, when combined with the increase in our common stock dividends, produced a 14% total shareholder return for 2014.”

For 2014 net income was $11,211,850 compared to $11,091,007 for the same period in 2013, a 1% increase. The 2014 return on average equity (ROE) was 10.95%, and the return on average assets (ROA) was 1.13%. Annual diluted earnings per share were $1.05 compared to $1.08 in 2013, as our higher earnings were more than offset by the number of additional outstanding shares.

Net income was $2,683,163 for the fourth quarter of 2014 compared to $2,156,566 for the same period in 2013, a 24% increase. The quarterly annualized return on average equity (ROE) was 10.03%, and the annualized quarterly return on average assets (ROA) was 1.04 %, both metrics up from the same period a year ago. Diluted earnings per share for the fourth quarter were $0.25, up 25% from the previous year.

Total assets at December 31, 2014 were $1.07 billion, up 5% from the prior year. In 2014 loans held for investment grew 8% to $773 million and mortgage loans held for sale grew 48% to $148 million. The vast majority of the net loan growth occurred in the fourth quarter. Total deposits grew 3% to $919 million, with demand deposits growing $40 million or 15% for the year. Demand deposits now represent 33% of total deposits, an achievement driven by our dedicated cash management and banking office teams. While the current rate environment does not appropriately reward banks for a transaction-focused funding strategy, this strategy should deliver net interest margin protection when rates eventually rise.

“We are pleased to deliver over 8% quarterly and year over year loan growth. We are equally proud that we produced each and every loan and have not been tempted by participation loans or other loan purchase programs we see in the marketplace,” stated E. Neal Crawford Jr., President of Monarch Bank. “We continue to hire talented bankers and expect to continue expanding the banking team into 2015. Our Richmond and Peninsula expansion is driving quality loan growth and deposit growth while our cash management and private banking teams continue to focus on growing core deposits.”

Non-performing assets were 0.28% as of December 31, 2014 compared to 0.25% one year prior, and non-performing loans to loans held for investment were 0.37% compared to 0.31% one year prior. Non-performing assets were $3.0 million, comprised of $175 thousand 90 days or more past due and still accruing interest, $2.7 million in non-accrual loans and $144,000 in one parcel of other real estate owned that is already under contract for sale. The allowance for loan losses represents 1.16% of total loans held for investment and 311% of non-performing loans.

Average equity to average assets rose to 10.39% at year-end 2014, an increase from 9.73% one year prior. Cash dividends of $0.08 per share were paid in the fourth quarter of 2014, and a total of $0.31 per share was paid during the year, an increase of 29% over 2013. Total risk-based capital to risk weighted assets at Monarch Bank equaled 13.79%, significantly higher than the required level to meet the highest rating of “Well Capitalized” by federal banking regulators. We also already meet the new Basel III capital standards for a well-capitalized bank. Monarch was again awarded the highest 5-Star “Superior” rating by Bauer Financial, an independent third-party bank rating agency that rates banks on safety and soundness.

Net interest income, our number one driver of profitability, was flat for the year driven by the large volume of mortgage loans held for sale in the first six months of 2013 compared to the balances carried in 2014. These balances are driven by mortgage loan closings. Excluding the mortgage loans held for sale volatility, the net interest income from core banking operations increased 5.9% or $1.9 million. Our net interest margin for 2014 was 4.25%, up from 4.10% due to asset mix, loan and deposit pricing, mortgage loans held for sale pricing, fee income capture, and the additional income from loans previously on non-accrual status. Loan growth that occurred late in the year had minimal impact on net interest income even though it should contribute to net interest income on a going forward basis.

Non-interest income decreased $2.8 million in 2014 over the previous year driven by lower mortgage revenues, which was more than offset by a reduction of $3.6 million in commissions and incentives. Net overhead, or the difference between non-interest income and non-interest expenses, increased only $372 thousand or 1.7% due to increased spending for facilities, technology, technology risk management, compliance and marketing. Salaries and benefits were held flat for the year, a significant accomplishment with our increased benefits costs. Investment revenues related to Monarch Bank Private Wealth totaled $1.6 million for the year compared to $1.1 million the previous year, a noteworthy increase. The Company is recognized by Raymond James Financial Services as a top performing bank investment program, with $235 million in assets under management accumulated since the formation of Monarch Bank Private Wealth in the third quarter of 2012.

Mortgage revenue remains the number one driver of non-interest income. $446 million in mortgage loans were closed during the fourth quarter of 2014 (69% purchase) compared to $350 million in the fourth quarter of 2013 (80% purchase). Monarch closed $1.6 billion in mortgage loans during 2014 compared to $2.0 billion in 2012. While volumes year over year declined approximately 20%, revenues from mortgage lending declined only 5% due to a strong focus on loan product mix, secondary market pricing, and fee income.

“Our focus on the purchase market paid off in 2014 when we had the best year of purchase mortgage business in our history. We closed $1.3 billion in home purchase loans and $0.3 billion in refinances, and altogether closed over 6,000 loans during the year,” stated William T. Morrison, CEO of Monarch Mortgage. “The year 2015 is beginning with an attractive rate environment and a much stronger pipeline of activity, and we expect it to be a great year for our mortgage operations.”

Monarch Financial Holdings, Inc. is the one-bank holding company for Monarch Bank. Monarch Bank is a community bank with ten banking offices in Chesapeake, Virginia Beach, Norfolk, and Williamsburg, Virginia. Monarch Bank also has loan production offices in Newport News and Richmond, Virginia. OBX Bank, a division of Monarch Bank, operates offices in Kitty Hawk and Nags Head, North Carolina. Monarch Mortgage and our affiliated mortgage companies have over thirty offices with locations in Virginia, North Carolina, Maryland, and South Carolina. Our subsidiaries/ divisions include Monarch Bank, OBX Bank, Monarch Mortgage (secondary mortgage origination), OBX Bank Mortgage (secondary mortgage origination), Coastal Home Mortgage, LLC (secondary mortgage origination), Monarch Bank Private Wealth (investment, trust, planning and private banking), Monarch Investments (investment and insurance solutions), Real Estate Security Agency, LLC (title agency) and Monarch Capital, LLC (commercial mortgage brokerage). The shares of common stock of Monarch Financial Holdings, Inc. are publicly traded on the Nasdaq Capital Market under the symbol “MNRK”.

This press release may contain “forward-looking statements,” within the meaning of federal securities laws that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in the economic scenario: significant changes in regulatory requirements; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s most recent Form 10-K and 10-Q reports and other documents filed with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Consolidated Balance Sheets Monarch Financial Holdings, Inc. and Subsidiaries (In thousands) Unaudited

December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013 ASSETS:

Cash and due from banks $ 14,503 $ 21,083 $ 19,661 $ 18,510 $ 18,971 Interest bearing bank balances 49,761 58,207 37,166 37,033 31,955 Federal funds sold 1,135 3,938 29,761 84,232 53,985

Investment securities, at fair value 23,725 25,137 23,773 23,197 48,822

Mortgage loans held for sale 147,690 138,590 156,584 92,839 99,718

Loans held for investment, net of unearned income 772,590 713,667 700,159 715,088 712,671 Less: allowance for loan losses (8,949) (8,977) (9,070) (9,213) (9,061) Net loans 763,641 704,690 691,089 705,875 703,610

Bank premises and equipment, net 30,247 30,368 31,407 29,902 28,882 Restricted equity securities, at cost 3,633 3,179 3,169 3,156 3,683 Bank owned life insurance 9,687 9,587 7,526 7,467 7,409 Goodwill 775 775 775 775 775 Intangible assets, net — — 15 60 104 Accrued interest receivable and other assets 21,940 23,688 22,973 19,673 18,786 Total assets $ 1,066,737 $ 1,019,242 $ 1,023,899 $ 1,022,719 $ 1,016,700

LIABILITIES:

Demand deposits–non-interest bearing $ 235,301 $ 252,286 $ 240,348 $ 221,357 $ 206,891 Demand deposits–interest bearing 66,682 53,093 51,563 55,949 55,528 Money market deposits 369,221 365,041 377,096 367,590 374,462 Savings deposits 20,003 25,211 24,539 24,327 22,137 Time deposits 228,207 189,142 197,747 224,947 234,100 Total deposits 919,414 884,773 891,293 894,170 893,118

FHLB borrowings 1,075 1,100 1,125 1,150 1,175 Federal funds 10,000 — — — — Trust preferred subordinated debt 10,000 10,000 10,000 10,000 10,000 Accrued interest payable and other liabilities 18,710 18,145 18,650 17,422 14,661 Total liabilities 959,199 914,018 921,068 922,742 918,954

STOCKHOLDERS’ EQUITY:

Common stock 51,864 51,735 51,624 51,584 51,432 Capital in excess of par value 8,336 7,966 7,675 7,357 7,069 Retained earnings 47,354 45,523 43,566 41,232 39,437 Accumulated other comprehensive loss (102) (135) (159) (314) (419) Total Monarch Financial Holdings, Inc. stockholders’ equity 107,452 105,089 102,706 99,859 97,519 Noncontrolling interest 86 135 125 118 227 Total equity 107,538 105,224 102,831 99,977 97,746 Total liabilities and stockholders’ equity $ 1,066,737 $ 1,019,242 $ 1,023,899 $ 1,022,719 $ 1,016,700

Common shares outstanding at period end 10,652,475 10,646,873 10,624,668 10,619,444 10,502,323

Nonvested shares of common stock included in commons shares outstanding 279,750 299,910 299,910 302,710 215,960

Book value per common share at period end (1) $ 10.10 $ 9.87 $ 9.67 $ 9.40 $ 9.29 Tangible book value per common share at period end (2) $ 10.02 $ 9.80 $ 9.59 $ 9.33 $ 9.20 Closing market price $ 13.75 $ 12.56 $ 11.72 $ 12.26 $ 12.31

Total risk based capital – Consolidated company 13.79% 14.16% 14.29% 14.27% 13.91% Total risk based capital – Bank 13.81% 14.18% 14.31% 14.30% 13.95%

(1) Book value per common share is defined as stockholders’ equity divided by common shares outstanding. (2) Tangible book value per common share is defined as stockholders’ equity less goodwill and other intangibles divided by commons shares outstanding

Consolidated Statements of Income Monarch Financial Holdings, Inc. and Subsidiaries Unaudited
Three Months Ended Year Ended
December 31, December 31,
2014 2013 2014 2013 INTEREST INCOME:

Interest on federal funds sold $ 4,980 $ 42,283 $ 84,850 $ 115,963 Interest on other bank accounts 92,156 28,626 244,702 58,027 Dividends on equity securities 33,545 67,540 106,955 277,700 Interest on investment securities 100,957 60,311 359,604 230,496 Interest on mortgage loans held for sale 1,376,920 1,090,070 4,866,818 7,021,186 Interest and fees on loans held for investment 9,752,472 9,388,407 37,327,978 36,645,065 Total interest income 11,361,030 10,677,237 42,990,907 44,348,437 INTEREST EXPENSE:

Interest on deposits 722,537 905,970 3,185,965 3,936,203 Interest on trust preferred subordinated debt 46,337 122,850 416,233 491,910 Interest on other borrowings 16,615 15,002 58,966 358,345 Total interest expense 785,489 1,043,822 3,661,164 4,786,458 NET INTEREST INCOME 10,575,541 9,633,415 39,329,743 39,561,979 PROVISION FOR LOAN LOSSES — — — —

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 10,575,541 9,633,415 39,329,743 39,561,979

NON-INTEREST INCOME:

Mortgage banking income 16,210,774 13,276,836 62,440,013 65,672,402 Service charges and fees 489,974 502,373 2,058,262 1,941,926 Title income 216,895 124,774 669,785 789,253 Investment and insurance income 382,774 336,002 1,592,398 1,053,429 Other income 72,366 111,924 318,783 425,261 Total non-interest income 17,372,783 14,351,909 67,079,241 69,882,271 NON-INTEREST EXPENSE:

Salaries and employee benefits 8,798,996 8,772,157 34,134,998 34,112,834 Commissions and incentives 6,926,507 5,248,131 24,754,633 28,344,347 Occupancy and equipment 2,412,086 2,220,634 9,548,543 8,449,912 Loan expense 1,676,134 1,526,317 6,652,007 7,891,835 Marketing expense 990,383 807,717 3,111,535 2,873,259 Data processing 715,057 459,681 2,272,785 1,696,535 Telephone 296,396 314,984 1,226,389 1,184,894 Other expenses 1,789,789 1,212,731 6,778,966 6,357,202 Total non-interest expense 23,605,348 20,562,352 88,479,856 90,910,818

INCOME BEFORE TAXES 4,342,976 3,422,972 17,929,128 18,533,432 Income tax provision (1,616,093) (1,179,017) (6,490,273) (6,386,040) NET INCOME 2,726,883 2,243,955 11,438,855 12,147,392

Less: Net income attributable to noncontrolling interest (43,720) (87,389) (227,005) (1,056,385) NET INCOME ATTRIBUTABLE TO MONARCH FINANCIAL HOLDINGS, INC $2,683,163 $2,156,566 $11,211,850 $11,091,007

NET INCOME PER COMMON SHARE:

Basic $ 0.25 $ 0.21 $ 1.06 $ 1.09 Diluted $ 0.25 $ 0.20 $ 1.05 $ 1.08

Weighted average basic shares outstanding 10,648,184 10,486,056 10,619,443 10,167,156 Weighted average diluted shares outstanding 10,689,219 10,535,313 10,658,600 10,299,471

Return on average assets 1.04% 0.86% 1.13% 1.07% Return on average stockholders’ equity 10.03% 8.88% 10.95% 11.97%

Financial Highlights Monarch Financial Holdings, Inc. and Subsidiaries
(Dollars in thousands, For the Quarter Ended except per share data) December 31, September 30, June 30, March 31, December 31,
2014 2014 2014 2014 2013 EARNINGS

Interest income $ 11,361 $ 10,639 $ 10,557 $ 10,434 $ 10,677 Interest expense (786) (928) (977) (971) (1,044) Net interest income 10,575 9,711 9,580 9,463 9,633 Provision for loan losses — — — — — Noninterest income – mortgage banking income 16,211 16,658 17,369 12,202 13,277 Noninterest income – other 1,162 1,241 1,130 1,106 1,075 Noninterest expense (23,605) (23,121) (23,007) (18,747) (20,562) Pre-tax net income 4,343 4,489 5,072 4,024 3,423 Minority interest in net income (44) (46) (121) (16) (87) Income taxes (1,616) (1,635) (1,767) (1,471) (1,179) Net income $ 2,683 $ 2,808 $ 3,184 $ 2,537 $ 2,157

PER COMMON SHARE

Earnings per share – basic $ 0.25 $ 0.26 $ 0.30 $ 0.24 $ 0.21 Earnings per share – diluted 0.25 0.26 0.30 0.24 0.20 Common stock – per share dividends 0.08 0.08 0.08 0.07 0.07 Average Basic Shares Outstanding 10,648,184 10,635,275 10,620,869 10,600,766 10,486,056 Average Diluted Shares Outstanding 10,689,219 10,670,507 10,660,217 10,641,782 10,535,313

ALLOWANCE FOR LOAN LOSSES

Beginning balance $ 8,977 $ 9,070 $ 9,213 $ 9,061 $ 11,228 Provision for loan losses — — — — — Charge-offs (174) (181) (184) (12) (2,252) Recoveries 146 88 41 164 85 Net charge-offs (28) (93) (143) 152 (2,167) Ending balance $ 8,949 $ 8,977 $ 9,070 $ 9,213 $ 9,061

COMPOSITION OF RISK ASSETS

Nonperforming loans:

90 days past due $ 175 $ 243 $ 499 $ 759 $ 472 Nonaccrual loans 2,705 2,180 3,028 1,718 1,740 OREO 144 767 144 302 302 Nonperforming assets 3,024 3,190 3,671 2,779 2,514

ASSET QUALITY RATIOS

Nonperforming assets to total assets 0.28% 0.31% 0.36% 0.27% 0.25% Nonperforming loans to total loans 0.37 0.34 0.50 0.35 0.31 Allowance for loan losses to total loans held for investment 1.16 1.26 1.30 1.29 1.27 Allowance for loan losses to nonperforming loans 310.73 370.49 257.16 371.94 409.63 Annualized net charge-offs to average loans held for investment 0.02 0.05 0.08 -0.09 1.25

FINANCIAL RATIOS

Return on average assets 1.04% 1.11% 1.29% 1.06% 0.86% Return on average stockholders’ equity 10.03 10.72 12.63 10.46 8.88 Net interest margin (FTE) 4.42 4.18 4.18 4.25 4.13 Non-interest revenue/Total revenue 60.5 62.7 63.7 56.1 57.3 Efficiency – Consolidated 84.5 83.7 81.8 82.1 85.5 Efficiency – Bank only 61.2 61.7 63.9 59.9 60.4 Average equity to average assets 10.39 10.40 10.18 10.13 9.73

PERIOD END BALANCES (Amounts in thousands)

Total mortgage loans held for sale $ 147,690 $ 138,590 $ 156,584 $ 92,839 $ 99,718 Total loans held for investment 772,590 713,667 700,159 715,088 712,671 Interest-earning assets 1,003,332 945,697 949,872 956,160 952,981 Assets 1,066,737 1,019,242 1,023,899 1,022,719 1,016,700 Total deposits 919,414 884,773 891,293 894,170 893,118 Other borrowings 21,075 11,100 11,125 11,150 11,175 Stockholders’ equity 107,451 105,089 102,706 99,859 97,519

AVERAGE BALANCES (Amounts in thousands)

Total mortgage loans held for sale $ 131,471 $ 138,382 $ 116,851 $ 70,856 $ 104,104 Total loans held for investment 725,093 701,137 698,851 704,917 695,074 Interest-earning assets 958,904 930,420 927,552 910,929 935,059 Assets 1,021,591 999,358 993,003 970,815 990,734 Total deposits 883,478 867,980 867,217 848,969 869,113 Other borrowings 14,575 11,124 11,150 11,174 11,199 Stockholders’ equity 106,088 103,908 101,092 98,374 96,415

MORTGAGE PRODUCTION (Amounts in thousands)

Dollar volume of mortgage loans closed $ 445,846 $ 440,784 $ 446,863 $ 271,233 $ 349,695 Percentage of refinance based on dollar volume 30.9% 16.0% 15.0% 19.1% 20.3%

Financials IndustryBanking & Budgetingmortgage loans Contact:

Brad E. Schwartz - (757) 389-5111, www.monarchbank.com

[…]

Monarch Financial Reports Record 2nd Quarter and Declares Cash Dividend

CHESAPEAKE, Va., July 25, 2013 (GLOBE NEWSWIRE) — Monarch Financial Holdings, Inc. (MNRK), the bank holding company for Monarch Bank, reported their best second quarter profits in the Company’s history. The Board of Directors also declared a cash dividend of $0.06 per share. Second quarter 2013 highlights are:

Net income available to common shareholders up 29% Record quarterly net income of $3,066,638, up 10% Diluted earnings per share of $0.29, up 7% Net Interest Margin holding steady at 4.11% Non-performing assets at 0.30% of total assets $607 million in mortgage loans closed

“The second quarter of 2013 represents the 18th record quarterly improvement in our profitability. The leading drivers of our performance were improved credit quality, non-interest income growth, consistent mortgage loan closings and net interest income growth. Even with startup expenses related to Monarch Bank Private Wealth, expansion into the Williamsburg and Peninsula mortgage and banking markets, and our new mortgage venture with Rose and Womble Realty, we managed to improve our profitability and financial performance from the same period one year ago.” stated Brad E. Schwartz, Chief Executive Officer. “Our shareholders have been rewarded this year with an improved stock price, increased cash dividends, and higher earnings per share.”

The Board of Directors on July 24, 2013 declared a regular quarterly cash dividend of $0.06 per share of common stock. The dividend is payable on August 30, 2013 to shareholders of record on August 9, 2013. The amount and declaration of future cash dividends are subject to Board of Director’s approval in addition to regulatory restrictions.

For the first six months of 2013 net income was a record $6,524,767 compared to $5,293,093 for the same period in 2012, a 23% increase. The six month annualized return on average equity (ROE) was 14.61%, and the annualized return on average assets (ROA) was 1.23%. Year to date diluted earnings per share were $0.62 compared to $0.52 per share in the same quarter of 2012, a 19% improvement.

Net income was $3,066,638 for the second quarter of 2013, up 10% from the same period in 2012, which was the Company’s previous record second quarter with $2,776,987 in net income. The quarterly annualized return on average equity (ROE) was 13.42%, and the quarterly return on average assets (ROA) was 1.19%. Diluted earnings per share were $0.29, compared to $0.27 per share in the same quarter of 2012.

Total assets at June 30, 2013 were $1.02 billion, up from $995 million one year prior. While total asset growth was nominal year over year, the shift in assets continued with loans held for investment growing $70.9 million, cash and funds sold growing $64.5 million, and short-term mortgage loans held for sale declining $115.4 million. A major company focus in 2013 has been to improve delivery and funding times for mortgage loans sold to our correspondents to improve our liquidity position, reduce potential interest rate risk, and ensure adequate funding to grow loans held for investment.

Loans held for investment grew $70.9 million or 11% in the past year. Loans held for investment grew a net of $5 million during the second quarter of 2013 and have grown $36 million year to date. We booked and funded $63 million in new loans held for investment during the second quarter of 2013 and $117 million year to date. The majority of our second quarter new loan growth was offset by loan payments and payoffs.

Deposits increased $45.3 million or 5.3% year over year and now total $898.6 million. The positive shift between deposit categories continued with our focus on generating commercial demand deposits through our cash management team. Demand deposits grew $51.2 million to $271.0 million, money market accounts grew $33.7 million to $341.0 million, and higher-cost certificates of deposits declined $42.2 million to $264.5 million. At the same time borrowings declined $35.1 million. The shift in certificates of deposit and borrowings is a direct reflection on our streamlined process for delivering closed mortgage loans held for sale to improve funding turnaround. Demand deposits now represent 30.2% of our total deposits. While the current rate environment does not appropriately reward banks for a demand deposit-focused funding strategy, this strategy should deliver long-term net interest margin protection when rates eventually rise.

“We are pleased to report a great quarter and year for loan production and growth, with all of this accomplished to our higher credit standards. We continue to see credit standards in the marketplace loosen and pledge to lend as we have in the past to the top clients in our markets with properly structured and priced loans.” stated Neal Crawford, President of Monarch Bank. “Our funding initiatives continue to improve our deposit mix and for the first time we have over 30% of our deposits in demand deposit accounts. We are very proud of our team in hitting this goal in the second quarter.”

Non-performing assets were 0.30%, which remains below that of our local, state, and national peer group. This was down from 0.34% in the first quarter of 2013 and 0.82% one year ago. Non-performing assets were $3.0 million, comprised of no loans 90 days or more past due and still accruing interest, $2.9 million in non-accrual loans and $0.1 million in other real estate owned. There was one property held at quarter-end in other real estate owned. The Company recorded net loan loss recoveries in the second quarter of $532 thousand, and year to date net loan loss recoveries totaled $410 thousand. The allowance for loan losses represents 1.62% of total loans held for investment and 385% of non-performing loans.

Average equity to average assets was 8.88% during the second quarter of 2013, an increase from 8.34% one year prior. Total risk-based capital to risk weighted assets at Monarch Bank equaled 13.66%, significantly higher than the required level to meet the highest rating of “Well Capitalized” by federal banking regulators. Monarch was again awarded the highest 5-Star “Superior” rating by Bauer Financial, an independent third-party bank rating agency that rates banks on safety and soundness.

Net interest income, our number one driver of profitability, increased 2.5% or $236,000 during the second quarter of 2013 compared to the same quarter in 2012. Our net interest margin was 4.11% which improved from 4.02% at year-end 2012 and was in line with the previous quarter of 4.12%. Competition for loans for top credit clients continues to impact new loan pricing. Our focus on improving mortgage loan funding speeds also reduced our total earnings assets quarter over quarter.

Non-interest income increased $0.8 million during the second quarter over the previous year, while non-interest expenses grew by $1.7 million, increasing net overhead expense by $0.9 million for the second quarter compared to the previous year. Every category of non-interest income increased for the quarter and year to date. Investment revenues related to Monarch Bank Private Wealth totaled $452 thousand for the year compared to $31 thousand the previous year, a significant increase. The net overhead growth is attributed to the strategic growth of all our lines of business in the Williamsburg and Peninsula markets which opened in September 2012, the startup of Monarch Bank Private Wealth which began business in the third quarter of 2012, as well as mortgage and bank staffing growth. Salary and benefits expense, facilities expense, marketing expense, and the cost of governmental compliance expenses were the primary drivers of our net overhead growth.

Mortgage revenue continues to be the number one driver of non-interest income. $607 million in mortgage loans were closed during the second quarter of 2013, and home purchase mortgage loans represented 61% of total closed loans. We have closed $1.1 billion in mortgage loans during the first six months of 2013, which is in line with the same period in 2102. During the second quarter we also opened several mortgage banking offices of Advance Financial Group, our mortgage partnership with Rose and Womble Realty.

“We are pleased to report another quarter of strong mortgage production with over 60% of our volume from purchase mortgage loans. We have always structured our company to focus on purchase money mortgages and while we enjoyed the refinance volume in the past we are well positioned to continue our profit contribution in the current environment.” stated William T. Morrison, CEO of Monarch Mortgage. “Our expansion in the Peninsula and Williamsburg markets is just beginning, with our Newport News mortgage office opening just last week. We remain focused on building relationships with the realtor and builder community, as well as our past clients to drive production volume.”

Monarch Financial Holdings, Inc. is the one-bank holding company for Monarch Bank. Monarch Bank is a community bank with eleven banking offices in Chesapeake, Virginia Beach, Norfolk, Suffolk, and Williamsburg Virginia. Monarch Bank also has a loan production office in Newport News, Virginia. OBX Bank, a division of Monarch Bank, operates offices in Kitty Hawk and Nags Head, North Carolina. Monarch Mortgage and our affiliated mortgage companies have over thirty offices with locations in Virginia, North Carolina, Maryland, and South Carolina. Our subsidiaries/ divisions include Monarch Bank, OBX Bank, Monarch Mortgage (secondary mortgage origination), OBX Bank Mortgage (secondary mortgage origination), Coastal Home Mortgage, LLC (secondary mortgage origination), Regional Home Mortgage, LLC (secondary mortgage origination), Monarch Home Funding, LLC (secondary mortgage origination), Advance Financial Group (secondary mortgage origination), Monarch Bank Private Wealth (investment, trust, planning and private banking), Monarch Investments (investment and insurance solutions), Real Estate Security Agency, LLC (title agency) and Monarch Capital, LLC (commercial mortgage brokerage). The shares of common stock of Monarch Financial Holdings, Inc. are publicly traded on the Nasdaq Capital Market under the symbol “MNRK”.

This press release may contain “forward-looking statements,” within the meaning of federal securities laws that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies, or guidelines; significant changes in the economic scenario: significant changes in regulatory requirements; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s most recent Form 10-K and 10-Q reports and other documents filed with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Consolidated Balance Sheets Monarch Financial Holdings, Inc. and Subsidiaries (In thousands) Unaudited

June 30, March 31, December 31, September 30, June 30,
2013 2013 2012 2012 2012 ASSETS:

Cash and due from banks $ 19,050 $ 17,414 $ 27,364 $ 14,633 $ 16,263 Interest bearing bank balances 15,195 14,099 14,667 12,043 4,295 Federal funds sold 56,972 21,937 15,744 8,191 6,142

Investment securities, at fair value 16,573 16,493 14,634 10,328 10,820

Loans held for sale 166,586 242,457 419,075 382,095 282,014

Loans held for investment, net of unearned income 697,376 692,410 661,094 627,256 626,464 Less: allowance for loan losses (11,320) (10,788) (10,910) (10,890) (10,724) Net loans 686,056 681,622 650,184 616,366 615,740

Bank premises and equipment, net 28,101 27,507 25,448 23,449 23,210 Restricted equity securities, at cost 3,792 3,781 12,363 8,346 4,885 Bank owned life insurance 7,290 7,231 7,173 7,132 7,069 Goodwill 775 775 775 775 775 Intangible assets, net 194 238 283 327 372 Accrued interest receivable and other assets 20,815 21,421 27,868 26,727 23,649

Total assets $ 1,021,399 $ 1,054,975 $ 1,215,578 $ 1,110,412 $ 995,234

LIABILITIES:

Demand deposits—non-interest bearing $ 218,880 $ 201,346 $ 190,120 $ 182,080 $ 178,520 Demand deposits—interest bearing 52,101 57,074 65,369 40,865 41,219 Money market deposits 341,042 332,305 335,899 313,985 307,392 Savings deposits 22,172 23,579 22,127 21,531 19,633 Time deposits 264,491 317,181 288,267 329,246 306,649 Total deposits 898,686 931,485 901,782 887,707 853,413

FHLB borrowings 1,225 1,250 194,299 105,027 31,324 Short Term borrowings — 5,000 5,000 5,000 5,000 Federal funds purchased — — — — — Trust preferred subordinated debt 10,000 10,000 10,000 10,000 10,000 Accrued interest payable and other liabilities 16,733 14,894 15,550 17,151 14,260 Total liabilities 926,644 962,629 1,126,631 1,024,885 913,997

STOCKHOLDERS’ EQUITY:

Preferred Stock — — 2,406 3,945 3,945 Common stock 50,873 50,821 41,632 35,732 35,732 Capital in excess of par value 6,521 6,300 12,718 16,867 16,724 Retained earnings 36,233 33,790 30,786 27,586 24,512 Accumulated other comprehensive loss (480) (174) (200) (218) (299) Total Monarch Financial Holdings, Inc. stockholders’ equity 93,147 90,737 87,342 83,912 80,614 Noncontrolling interest 1,608 1,609 1,605 1,615 623 Total equity 94,755 92,346 88,947 85,527 81,237

Total liabilities and stockholders’ equity $ 1,021,399 $ 1,054,975 $ 1,215,578 $ 1,110,412 $ 995,234

Preferred shares outstanding at period end — — 481,123 788,900 788,900 Common shares outstanding at period end (1) 10,408,544 10,398,073 8,557,939 7,251,491 7,251,491

Nonvested shares of common stock included in commons shares outstanding (1) 233,960 233,960 231,460 105,060 105,060

Book value per common share at period end (1) (2) $ 8.95 $ 8.73 $ 8.80 $ 8.85 $ 8.40 Tangible book value per common share at period end (1) (3) $ 8.86 $ 8.63 $ 8.68 $ 8.70 $ 8.24 Closing market price (1) $ 10.83 $ 10.61 $ 8.22 $ 8.13 $ 8.21

Total risk based capital – Consolidated company 13.42% 13.06% 12.05% 12.49% 12.17% Total risk based capital – Bank 13.66% 13.78% 12.73% 13.23% 12.79%

(1) All share information has been adjusted to reflect the 6 for 5 stock split granted December 7, 2012 and cash in lieu of fractional shares. (2) Book value per common share is defined as stockholders’ equity divided by as-converted common shares outstanding. (3) Tangible book value per common share is defined as stockholders’ equity less goodwill and other intangibles divided by as-converted commons shares outstanding.
Consolidated Statements of Income Monarch Financial Holdings, Inc. and Subsidiaries Unaudited

Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012 INTEREST INCOME:

Interest on federal funds sold $ 25,312 $ 8,903 $ 30,470 $ 15,162 Interest on other bank accounts 9,952 4,898 18,094 8,446 Dividends on equity securities 69,225 64,974 143,660 102,474 Interest on investment securities 57,302 51,090 114,871 97,321 Interest and fees on loans 10,813,696 10,853,754 22,522,262 21,734,790 Total interest income 10,975,487 10,983,619 22,829,357 21,958,193 INTEREST EXPENSE:

Interest on deposits 1,020,913 1,266,904 2,050,375 2,548,691 Interest on trust preferred subordinated debt 124,200 123,425 243,242 246,275 Interest on other borrowings 38,810 37,607 327,988 100,114 Total interest expense 1,183,923 1,427,936 2,621,605 2,895,080 NET INTEREST INCOME 9,791,564 9,555,683 20,207,752 19,063,113 PROVISION FOR LOAN LOSSES — 1,484,400 — 3,415,079

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 9,791,564 8,071,283 20,207,752 15,648,034

NON-INTEREST INCOME:

Mortgage banking income 20,572,388 20,152,078 36,738,324 36,736,289 Service charges and fees 477,660 467,565 928,814 881,616 Title income 232,423 168,622 486,774 282,880 Investment and insurance income 245,524 16,676 452,460 31,312 Other income 146,276 118,992 248,917 387,844 Total non-interest income 21,674,271 20,923,933 38,855,289 38,319,941 NON-INTEREST EXPENSE:

Salaries and employee benefits 8,502,755 7,093,920 16,707,830 13,724,438 Commissions and incentives 9,703,820 10,352,665 16,769,296 19,084,866 Occupancy and equipment 2,130,445 1,715,098 3,996,963 3,314,179 Loan expense 2,630,295 2,184,323 4,460,732 3,799,454 Marketing expense 744,646 593,526 1,257,604 1,003,817 Data processing 435,771 363,342 836,729 709,332 Other expenses 2,025,152 2,202,905 4,004,351 3,751,503 Total non-interest expense 26,172,884 24,505,779 48,033,505 45,387,589

INCOME BEFORE TAXES 5,292,951 4,489,437 11,029,536 8,580,386 Income tax provision (1,797,773) (1,556,294) (3,791,326) (2,977,835) NET INCOME 3,495,178 2,933,143 7,238,210 5,602,551

Less: Net income attributable to noncontrolling interest (428,540) (156,156) (713,443) (309,458) NET INCOME ATTRIBUTABLE TO MONARCH FINANCIAL HOLDINGS, INC $ 3,066,638 $ 2,776,987 $ 6,524,767 $ 5,293,093

Preferred stock dividend and accretion of preferred stock discount — (390,000) — (780,000) NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 3,066,638 $ 2,386,987 $ 6,524,767 $ 4,513,093

NET INCOME PER COMMON SHARE:

Basic $ 0.29 $ 0.33 $ 0.66 $ 0.63 Diluted $ 0.29 $ 0.27 $ 0.62 $ 0.52

Weighted average basic shares outstanding 10,401,992 7,188,270 9,854,418 7,183,028 Weighted average diluted shares outstanding 10,463,851 10,225,182 10,451,897 10,214,481

Return on average assets 1.19% 1.18% 1.23% 1.14% Return on average stockholders’ equity 13.42% 14.14% 14.61% 13.63%

(1) All share information has been adjusted to reflect the 6 for 5 stock split granted December 7, 2012 and cash in lieu of fractional shares.
Financial Highlights Monarch Financial Holdings, Inc. and Subsidiaries
(Dollars in thousands, except per share data) For the Quarter Ended

June 30,

March 31,
December 31, September 30,
June 30,

2013 2013 2012 2012 2012 EARNINGS

Interest income $ 10,976 $ 11,854 $ 12,690 $ 11,820 $ 10,983 Interest expense (1,184) (1,438) (1,591) (1,430) (1,428) Net interest income 9,792 10,416 11,099 10,390 9,555 Provision for loan losses — — (517) (899) (1,484) Noninterest income – mortgage banking income 20,572 16,166 23,826 25,652 20,152 Noninterest income – other 1,102 1,015 1,054 909 772 Noninterest expense (26,173) (21,861) (29,058) (29,810) (24,506) Pre-tax net income 5,293 5,736 6,404 6,242 4,489 Minority interest in net income (428) (285) (298) (368) (156) Income taxes (1,798) (1,993) (2,338) (2,111) (1,556) Net income $ 3,067 $ 3,458 $ 3,768 $ 3,763 $ 2,777

PER COMMON SHARE

Earnings per share – basic $ 0.29 $ 0.37 $ 0.44 $ 0.47 $ 0.33 Earnings per share – diluted 0.29 0.33 0.37 0.37 0.27 Common stock – per share dividends 0.06 0.05 0.05 0.05 0.05 Average Basic Shares Outstanding 10,401,992 9,300,760 7,980,259 7,235,370 7,188,270 Average Diluted Shares Outstanding 10,483,420 10,451,897 10,315,360 10,255,285 10,205,401

ALLOWANCE FOR LOAN LOSSES

Beginning balance $ 10,788 $ 10,910 $ 10,890 $ 10,724 $ 10,400 Provision for loan losses — — 517 899 1,484 Charge-offs (279) (554) (622) (823) (1,403) Recoveries 811 432 125 90 243 Net charge-offs 532 (122) (497) (733) (1,160) Ending balance $ 11,320 $ 10,788 $ 10,910 $ 10,890 $ 10,724

COMPOSITION OF RISK ASSETS

Nonperforming loans:

90 days past due $ — $ 351 $ 153 $ — $ 461 Nonaccrual & Restructured debt 2,933 3,149 3,483 4,105 5,691 OREO 95 95 0 1,250 2,013 Nonperforming assets 3,028 3,595 3,636 5,355 8,165

ASSET QUALITY RATIOS

Nonperforming assets to total assets 0.30% 0.34% 0.30% 0.48% 0.82% Nonperforming loans to total loans 0.42 0.51 0.55 0.65 0.98 Allowance for loan losses to total loans held for investment 1.62 1.56 1.65 1.74 1.71 Allowance for loan losses to nonperforming loans 385.95 308.23 300.06 265.29 174.32 Annualized net charge-offs to average loans held for investment -0.31 0.07 0.31 0.48 0.76

FINANCIAL RATIOS

Return on average assets 1.19% 1.27% 1.28% 1.43% 1.18% Return on average stockholders’ equity 13.42 15.86 17.51 18.24 14.14 Net interest margin (FTE) 4.11 4.12 4.02 4.27 4.36 Non-interest revenue/Total revenue 66.4 59.2 66.3 69.2 65.6 Efficiency – Consolidated 83.0 79.1 80.4 80.6 80.3 Efficiency – Bank only 58.2 53.1 54.5 52.6 57.0 Average equity to average assets 8.88 8.00 7.29 7.85 8.34

PERIOD END BALANCES (Amounts in thousands)

Total loans held for sale $ 66,586 $ 242,457 $ 419,075 $ 382,095 $ 282,014 Total loans held for investment 697,376 692,410 661,094 627,256 626,464 Interest-earning assets 960,481 994,946 1,141,180 1,051,145 935,908 Assets 1,021,399 1,054,975 1,215,578 1,110,412 995,234 Total deposits 898,686 931,485 901,782 887,707 853,413 Other borrowings 11,225 16,250 209,299 120,027 46,325 Stockholders’ equity 93,147 90,737 87,342 83,912 80,614

AVERAGE BALANCES (Amounts in thousands)

Total loans held for sale $ 200,733 $ 316,189 $ 423,354 $ 327,378 $ 239,558 Total loans held for investment 680,037 665,542 637,774 616,728 613,334 Interest-earning assets 964,872 1,033,838 1,103,667 978,135 891,340 Assets 1,032,345 1,105,933 1,173,820 1,044,966 947,060 Total deposits 908,229 865,146 945,297 890,772 827,258 Other borrowings 11,250 123,291 114,140 46,320 20,367 Stockholders’ equity 91,638 88,430 85,584 82,070 78,969

MORTGAGE PRODUCTION (Amounts in thousands)

Dollar volume of mortgage loans closed $ 607,189 $ 542,235 $ 762,131 $ 784,963 $ 605,926 Percentage of refinance based on dollar volume 39.2% 56.8% 61.4% 59.8% 47.5%

Contact:

Brad E. Schwartz - (757) 389-5111, www.monarchbank.com

[…]

New Payday Loans Processed In Minutes – NewsWire

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Payday Loans

Company launches new website which processes Payday Loans In minutes. This website processes any loan request without checking the credit history of their customers.

FOR IMMEDIATE RELEASE

(NEWSWIRE.NET — January 21, 2013) Henderson, NC — The owners of the new website, Payday Loans In Minutes, state that one of the major reasons they have decided to set up this type of fast and simple payday loan website, is because most people just can not get approved for an unsecured loan.

With all the cut backs from employers, most individuals are finding that local banks or lenders have no intention of offering them a loan if they have bad credit.

According to a spokesperson of the website, due to a slow economy, it is not uncommon for an individual to change jobs in less than a year. With the current credit processing systems used by most banks and lenders, unless a person has some type of collateral, it is almost impossible to get approved for an unsecured loan, if you have recently changed jobs or you have bad credit.

http://www.hoop5.com

The new website, Payday Loans In Minutes, also has the ability to instantly check with over 100 lenders that are interested in approving loans for individuals that have less than perfect credit. None of their lenders do credit checks to determine loan approval for the applicant.

Payday Loans

Their online payday loan service has become so popular that their company had to immediately hire more staff to handle the daily work load.

This company believes that every person which has some type of income and are willing to make timely payments, deserves a second chance with an unsecured payday loan that they can afford.

Our company offers a simple application process that can be completed online, anytime, 24 hours a day, 7 days a week. We are normally able to send the client their approved payday loan by bank transfer in less than 24 hours. Also, the company’s website offers a completely secure environment for collecting the applicant’s personal information.

You can get more information about their payday loans in minutes program by going to the website below:

Personal Loans

[…]

Guest Post Blog | Why People need Pay Day Loans : hostmypost.NET

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Being stuck in an economic recession is tough on the majority of people because prior to the recession the average salary or wages was just above sufficient to cover living expenses. Now that the recession has been dragging on for several years, it has definitely taken a toll on many people.

The inability to pay your bills on time has put a dent in your ability to borrow since you probably have a bad credit score. Or worse still you may have filed for bankruptcy. The refusal from banks does not change the fact that you need cash to live. This is why people are turning to pay day loans as an alternative to borrowing the money they need.

What is a payday loan?

This is where you can borrow a reasonable sum of money between paychecks. Usually this service is used by people who fall short of cash during the course of the month. Customers of pay day loans use the money to pay their utility bills, fuel for their cars, grocery bill or even to have some cash in their pocket as a precaution.

How does it work?

The great attraction of pay day loans is that you can access the funds even if you have a bad credit rating. Pay day loan transactions take place online where you would fill out an application, including how much money you intend to borrow. The information requested from the site has to also do with your age and you must be employed. Pay day loans are not accessible to anyone under the age of eighteen years.

Since it is an unsecured loan there is no collateral needed and the lengthy process of submitting documents and having to wait days for a reply is totally eliminated. Once you have been accepted it takes as little as two hours (in some cases) to have the money wired to your bank account.

Advantages of pay day loans

The convenience of accessing cash whenever you want allows people to breathe a little easier since they can meet their financial obligations. The amount of cash available to borrow usually ranges between two-hundred to twenty-five hundred dollars. With the average amount borrowed falls between two-hundred to a thousand dollars. With your wages or salaries coming in you can afford to repay the small amount borrowed.

Once you have a job and have the appropriate age then pay day loans are always available to you. Pay day loans are fast and can get you out of a sticky situation very quickly.
Disadvantages of pay day loans.

The downside to pay day loans is that it usually comes with high interest attached to the loan. This is because of the other convenience of fast cash in your hand. People can abuse the loan facility and use the money on non-essential items and services. The result is that you are worsening your already bad debt situation.

Once your use pay day loans responsibly it can be a good temporary measure to help keep your head above water until you find your way out of debt.

Author’s Bio: Sharon Brown is known for writing informative articles on finance and related issues. To get answers to further queries visit the website PayDayLoans.org

Guest Post

This post was written on behalf of hostmypost.NET by a guest contributor. If you have a good story or feel you can contribute something good for our readers, you can submit a guest post to be reviewed by our editorial team. Please be sure to read our blog guest post guidelines before getting in touch.

[…]

Avoid Payday Loan Companies

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Payday loan companies are a bad financial idea. They feed your impulse to spend what you don’t have, and then they charge you exorbitant fees for it. I completely understand the mentality of needing your paycheck before payday. It’s definitely a stressful feeling to not have money available. But heading over to a payday loan company is not the solution. Those companies charge exorbitant fees and you run the risk of getting into greater debt. Payday loan companies are at the edge of a slippery financial slope that can be difficult to get back on top of. When you go into a payday loan company you typically postdate a check for the amount you want advanced, plus a fee. They give you the cash and when the date comes the company cashes the check. Payday loan companies are supposedly convenient but tend to trap people in a never-ending spiral of debt. The best way to avoid them is to budget your money so you don’t ever spend money you don’t have. If you have to negotiate with your creditors or borrow some quick cash from a family member, then do it before you go to a payday loan company. If you are chronically short on cash or if your payday never seems to conveniently coincide with your due dates, you can consider taking out a small, low-fee credit card to bridge the gap. Once again, however, don’t spend more than you have. If you can’t pay back your credit card bill then don’t spend that money in the first place. There are other alternatives to payday loan companies, and the … […]