CHESAPEAKE, Va., April 21, 2016 (GLOBE NEWSWIRE) -- Monarch Financial Holdings, Inc. (Nasdaq:MNRK), the bank holding company for Monarch Bank, reported record quarterly profits and solid loan and deposit growth. The Board of Directors announced a quarterly common stock cash dividend of $0.09 per common share, payable on May 27, 2016, to shareholders of record on May 10, 2016. This quarterly payment represents a 10% increase over the dividend paid in the second quarter of 2015 after adjusting for the effect of the December 2015 11-for-10 stock split.
First quarter 2016 highlights are:
- Record net income of $4,056,709, up 17.2%
- Diluted earnings per share of $0.34, up 17.2%
- Return on equity of 13.73%
- Net interest margin at 4.27%
- Net loans held for investment grew $21 million, an annualized 10.0% growth rate
- Non-performing assets 0.16%
- $458 million in mortgage loans closed, 70% purchase-money
“We are pleased to report the best quarterly profits in the history of Monarch, a fitting close as we prepare to merge with TowneBank in late June. Loan growth coupled with a strong net interest margin drove the improved profitability. Financial discipline across all business lines also drove our above peer financial performance,” stated Brad E. Schwartz, Chief Executive Officer. “From a shareholder perspective earnings per share were up 17% for the year, cash dividends declared in 2016 have grown by 16.5% compared to the previous year, and our net income available to common shareholders hit a new quarterly record. This was all accomplished as we focused on our upcoming June merger with TowneBank. We are extremely proud of what we have accomplished at Monarch over the past 17 years and are eager to continue our journey as members of the TowneBank family.”
Net income was $4,056,709 for the first quarter of 2016, up 17.2% from the same period one year ago. The quarterly annualized return on average equity (ROE) was 13.73%, and the quarterly return on average assets (ROA) was 1.42%. Quarterly diluted earnings per share increased to $0.34 compared to $0.29 for the same quarter in 2015, a 17.2% improvement.
Total assets at March 31, 2016 were $1.21 billion, with both loans and deposits showing strong year over year growth. Year over year total loans held for investment grew $63 million or 8.0% and on a linked-quarter basis grew $21 million for an annualized growth rate of 10%. Mortgage loans held for sale grew $29 million or 18.3% due to our growing pipeline and closings of mortgage loans at quarter-end. Deposits grew $26 million or 2.5% for the year, driven by growth in demand deposit accounts and time deposits. Demand deposit accounts grew $37 million or 11.3% for the year, with 34% of our total deposit mix in demand deposits.
“Loans held for investment continued to grow in the quarter despite the competitive lending environment and our pricing and interest rate risk discipline. Our focus for the remainder of the year is continued exceptional service to our clients and ensuring the transition to TowneBank is smooth and uneventful,” stated Neal Crawford, President of Monarch Bank. “The merger will allow us to lend a great deal more on a client by client basis which we hope will drive loan growth well into the future.”
Non-performing assets to total assets were 0.16% compared to 0.39% one year prior and 0.19% the previous quarter, all of which remain significantly below that of our local, state, and national peer group. Non-performing assets were $1.9 million compared to $4.6 million one year prior. Non-performing assets were comprised of $1.8 million in non-accrual loans, $104 thousand in loans more than 90 days past due, and no other real estate or repossessed assets. Net recoveries for the first quarter were $14 thousand. The allowance for loan losses represents 1.05% of loans held for investment and 457% of non-performing loans.
The Board of Directors announced a quarterly common stock cash dividend of $0.09 per common share, payable on May 27, 2016, to shareholders of record on May 10, 2016. Due to the 11-for-10 stock split in December 2015, the dividend represents a 10% increase in cash dividends over the previous quarterly dividend. Dividend payments on a per share basis increased 16.5% in 2016 when compared to the same period in 2015. We have increased our cash dividend payout every year since we began paying cash dividends in 2010.
Our merger agreement with TowneBank calls for every share of Monarch stock to be converted into 0.883 shares of TowneBank stock, pending shareholder and regulatory approvals. Based on TowneBank’s most recent quarterly dividend announcement, and assuming those dividends continue at the same level, Monarch shareholders would expect to see another increase of approximately 17.7% in their quarterly cash dividend payments in future quarters after the merger is consummated.
Capital remained strong. Average equity to average assets was 10.3%, and total risk-based capital to risk weighted assets at Monarch Bank equaled 13.6%, significantly higher than the level required to be rated “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 $857 thousand for the first quarter, or 8.1% driven by increased earning assets, an improved asset mix, and disciplined loan and deposit pricing. The net interest margin was 4.27% for the first quarter compared to 4.32% in the same quarter of 2015.
Non-interest income in the first quarter declined 8.7% or $1.9 million from the previous year driven by lower revenues from mortgage loans sold and related title insurance fees. Investment and insurance revenue increased 39%. Mortgage revenue continues to be the number one driver of non-interest income. We closed $458 million in mortgage loans (70% purchase) during the first quarter of 2016 compared to $487 million (53% purchase) in the same quarter one year prior. Total non-interest expense declined 6.6% or $1.8 million during the fourth quarter driven by reduced mortgage commissions and loan origination expense.
“The first quarter was one of our best starts to a year with higher than budgeted volume and a strong demand for home purchase loans. Loan originations have grown stronger each month with a spring pipeline that should result in continued mortgage profitability,” stated William T. Morrison, CEO of Monarch Mortgage.
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), Fitzgerald Financial, LLC (secondary mortgage origination), Advance 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.”
On December 17, 2015 we announced the sale of Monarch Financial Holdings, Inc. and Monarch Bank to TowneBank of Portsmouth, Virginia. Pending regulatory and shareholder approvals we anticipate the merger will occur in late June of 2016.
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 | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Cash and due from banks | $ | 13,185 | $ | 13,946 | $ | 11,862 | $ | 15,319 | $ | 13,870 | ||||||||||
| Interest bearing bank balances | 59,694 | 58,638 | 75,658 | 84,225 | 73,237 | |||||||||||||||
| Federal funds sold | 13,919 | 1,296 | 14,188 | 2,377 | 63,311 | |||||||||||||||
| Investment securities, at fair value | 26,869 | 30,219 | 14,998 | 17,338 | 20,283 | |||||||||||||||
| Mortgage loans held for sale | 189,131 | 169,345 | 153,243 | 193,948 | 159,899 | |||||||||||||||
| Loans held for investment, net of unearned income | 850,054 | 829,269 | 790,704 | 792,962 | 787,003 | |||||||||||||||
| Less: allowance for loan losses | (8,901 | ) | (8,887 | ) | (8,733 | ) | (8,676 | ) | (8,644 | ) | ||||||||||
| Net loans | 841,153 | 820,382 | 781,971 | 784,286 | 778,359 | |||||||||||||||
| Bank premises and equipment, net | 28,355 | 28,972 | 29,513 | 30,117 | 30,050 | |||||||||||||||
| Restricted equity securities, at cost | 3,672 | 3,881 | 3,658 | 4,706 | 3,243 | |||||||||||||||
| Bank owned life insurance | 10,796 | 10,635 | 10,528 | 10,465 | 9,950 | |||||||||||||||
| Goodwill | 775 | 775 | 775 | 775 | 775 | |||||||||||||||
| Accrued interest receivable and other assets | 24,958 | 23,365 | 25,195 | 27,119 | 25,403 | |||||||||||||||
| Total assets | $ | 1,212,507 | $ | 1,161,454 | $ | 1,121,589 | $ | 1,170,675 | $ | 1,178,380 | ||||||||||
| LIABILITIES: | ||||||||||||||||||||
| Demand deposits--non-interest bearing | $ | 296,512 | $ | 280,080 | $ | 276,706 | $ | 293,442 | $ | 270,446 | ||||||||||
| Demand deposits--interest bearing | 69,753 | 68,963 | 62,335 | 54,580 | 58,725 | |||||||||||||||
| Money market deposits | 363,939 | 364,893 | 365,615 | 379,716 | 417,329 | |||||||||||||||
| Savings deposits | 18,410 | 19,517 | 19,263 | 19,431 | 19,519 | |||||||||||||||
| Time deposits | 314,797 | 265,641 | 238,260 | 231,854 | 271,121 | |||||||||||||||
| Total deposits | 1,063,411 | 999,094 | 962,179 | 979,023 | 1,037,140 | |||||||||||||||
| FHLB borrowings | - | 16,000 | 10,000 | 46,025 | 1,050 | |||||||||||||||
| Trust preferred subordinated debt | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
| Accrued interest payable and other liabilities | 18,056 | 18,638 | 23,376 | 22,167 | 19,653 | |||||||||||||||
| Total liabilities | 1,091,467 | 1,043,732 | 1,005,555 | 1,057,215 | 1,067,843 | |||||||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||||||||||||
| Common stock | 57,199 | 57,199 | 57,516 | 52,182 | 51,950 | |||||||||||||||
| Capital in excess of par value | 17,457 | 17,241 | 16,859 | 8,846 | 8,555 | |||||||||||||||
| Retained earnings | 46,337 | 43,350 | 41,612 | 52,412 | 49,957 | |||||||||||||||
| Accumulated other comprehensive loss | (54 | ) | (157 | ) | (38 | ) | (65 | ) | (14 | ) | ||||||||||
| Total Monarch Financial Holdings, Inc. stockholders' equity | 120,939 | 117,633 | 115,949 | 113,375 | 110,448 | |||||||||||||||
| Noncontrolling interest | 101 | 89 | 85 | 85 | 89 | |||||||||||||||
| Total equity | 121,040 | 117,722 | 116,034 | 113,460 | 110,537 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,212,507 | $ | 1,161,454 | $ | 1,121,589 | $ | 1,170,675 | $ | 1,178,380 | ||||||||||
| Common shares outstanding at period end (3) | 11,877,309 | 11,880,909 | 11,884,060 | 11,855,761 | 11,810,641 | |||||||||||||||
| Nonvested shares of common stock included in commons shares outstanding (3) | 437,440 | 441,040 | 380,875 | 375,595 | 381,645 | |||||||||||||||
| Book value per common share at period end (1)(4) | $ | 10.18 | $ | 9.89 | $ | 9.79 | $ | 9.56 | $ | 9.35 | ||||||||||
| Tangible book value per common share at period end (2)(4) | $ | 10.12 | $ | 9.82 | $ | 9.72 | $ | 9.50 | $ | 9.29 | ||||||||||
| Closing market price (4) | $ | 16.61 | $ | 17.99 | $ | 11.27 | $ | 11.41 | $ | 11.37 | ||||||||||
| Total risk based capital - Consolidated company | 13.85 | % | 13.69 | % | 14.04 | % | 13.62 | % | 13.57 | % | ||||||||||
| Total risk based capital - Bank | 13.76 | % | 13.60 | % | 13.95 | % | 13.52 | % | 13.38 | % | ||||||||||
| (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 common shares outstanding | ||||||||||||||||||||
| (3) Common shares have been adjusted to reflect the 11 for 10 stock split | ||||||||||||||||||||
| (4) Per share values have been restated to reflect the 11 for 10 stock split | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||
| Monarch Financial Holdings, Inc. and Subsidiaries | ||||||||
| Unaudited | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2016 | 2015 | |||||||
| INTEREST INCOME: | ||||||||
| Interest and fees on loans held for investment | $ | 10,689,745 | $ | 9,840,336 | ||||
| Interest on mortgage loans held for sale | 1,411,908 | 1,307,037 | ||||||
| Interest on investment securities | 110,358 | 88,915 | ||||||
| Interest on federal funds sold | 3,632 | 8,253 | ||||||
| Dividends on equity securities | 45,229 | 39,000 | ||||||
| Interest on other bank accounts | 156,954 | 102,029 | ||||||
| Total interest income | 12,417,826 | 11,385,570 | ||||||
| INTEREST EXPENSE: | ||||||||
| Interest on deposits | 854,044 | 668,060 | ||||||
| Interest on trust preferred subordinated debt | 55,689 | 46,415 | ||||||
| Interest on other borrowings | 2,386 | 22,606 | ||||||
| Total interest expense | 912,119 | 737,081 | ||||||
| NET INTEREST INCOME | 11,505,707 | 10,648,489 | ||||||
| PROVISION FOR LOAN LOSSES | - | 250,000 | ||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||
| FOR LOAN LOSSES | 11,505,707 | 10,398,489 | ||||||
| NON-INTEREST INCOME: | ||||||||
| Mortgage banking income | 19,018,308 | 21,063,679 | ||||||
| Service charges and fees | 500,139 | 516,554 | ||||||
| Title income | 215,603 | 232,771 | ||||||
| Investment and insurance income | 478,576 | 344,126 | ||||||
| Other income | 116,808 | 109,033 | ||||||
| Total non-interest income | 20,329,434 | 22,266,163 | ||||||
| NON-INTEREST EXPENSE: | ||||||||
| Salaries and employee benefits | 10,142,860 | 9,594,276 | ||||||
| Commissions and incentives | 7,730,892 | 9,445,138 | ||||||
| Occupancy and equipment | 2,273,481 | 2,288,508 | ||||||
| Loan origination expense | 1,793,662 | 2,458,663 | ||||||
| Marketing expense | 774,401 | 746,227 | ||||||
| Data processing | 613,954 | 629,750 | ||||||
| Telephone | 351,731 | 325,746 | ||||||
| Other expenses | 1,690,804 | 1,689,524 | ||||||
| Total non-interest expense | 25,371,785 | 27,177,832 | ||||||
| INCOME BEFORE TAXES | 6,463,356 | 5,486,820 | ||||||
| Income tax provision | (2,363,340 | ) | (1,993,340 | ) | ||||
| NET INCOME | 4,100,016 | 3,493,480 | ||||||
| Less: Net income attributable to noncontrolling interest | (43,307 | ) | (32,273 | ) | ||||
| NET INCOME ATTRIBUTABLE TO MONARCH | ||||||||
| FINANCIAL HOLDINGS, INC | $ | 4,056,709 | $ | 3,461,207 | ||||
| NET INCOME PER COMMON SHARE: | ||||||||
| Basic (1) | $ | 0.34 | $ | 0.29 | ||||
| Diluted (1) | $ | 0.34 | $ | 0.29 | ||||
| Weighted average basic shares outstanding (1) | 11,880,553 | 11,801,379 | ||||||
| Weighted average diluted shares outstanding (1) | 11,880,553 | 11,837,888 | ||||||
| Return on average assets | 1.42 | % | 1.31 | % | ||||
| Return on average stockholders' equity | 13.73 | % | 12.98 | % | ||||
| (1) 2015 Per share values have been restated to reflect the 11 for 10 stock dividend | ||||||||
| Financial Highlights | |||||||||||||||||||||
| Monarch Financial Holdings, Inc. and Subsidiaries | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | For the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||||
| EARNINGS - COMMERCIAL AND OTHER BANKING SEGMENT | |||||||||||||||||||||
| Interest income | $ | 12,107 | $ | 11,652 | $ | 11,497 | $ | 11,526 | $ | 10,999 | |||||||||||
| Interest expense | (912 | ) | (790 | ) | (810 | ) | (810 | ) | (737 | ) | |||||||||||
| Net interest income | 11,195 | 10,862 | 10,687 | 10,716 | 10,262 | ||||||||||||||||
| Recovery (provision) of/for loan losses | - | 500 | - | (250 | ) | (250 | ) | ||||||||||||||
| Noninterest income - other | 1,311 | 1,588 | 1,359 | 1,385 | 1,202 | ||||||||||||||||
| Noninterest expense | (7,395 | ) | (8,425 | ) | (7,605 | ) | (8,174 | ) | (7,815 | ) | |||||||||||
| Pre-tax net income | 5,111 | 4,525 | 4,441 | 3,677 | 3,399 | ||||||||||||||||
| Noncontrolling interest in net income | (12 | ) | (19 | ) | (13 | ) | (15 | ) | (16 | ) | |||||||||||
| Income taxes | (1,869 | ) | (1,539 | ) | (1,622 | ) | (1,327 | ) | (1,235 | ) | |||||||||||
| Net income | $ | 3,230 | $ | 2,967 | $ | 2,806 | $ | 2,335 | $ | 2,148 | |||||||||||
| EARNINGS - MORTGAGE BANKING OPERATIONS | |||||||||||||||||||||
| Interest income | $ | 1,411 | $ | 1,415 | $ | 1,495 | $ | 1,746 | $ | 1,307 | |||||||||||
| Interest expense | (1,101 | ) | (1,017 | ) | (1,056 | ) | (1,248 | ) | (921 | ) | |||||||||||
| Net interest income | 310 | 398 | 439 | 498 | 386 | ||||||||||||||||
| Noninterest income - mortgage banking income | 17,743 | 17,541 | 20,595 | 22,449 | 18,307 | ||||||||||||||||
| Forward rate commitments and unrealized hedge gain (loss) | 665 | (288 | ) | (834 | ) | 341 | 1,267 | ||||||||||||||
| Noninterest expense | (17,366 | ) | (17,101 | ) | (19,649 | ) | (21,529 | ) | (17,873 | ) | |||||||||||
| Pre-tax net income | 1,352 | 550 | 551 | 1,759 | 2,087 | ||||||||||||||||
| Noncontrolling interest in net income | (31 | ) | (49 | ) | (28 | ) | (36 | ) | (16 | ) | |||||||||||
| Income taxes | (494 | ) | (266 | ) | (201 | ) | (634 | ) | (758 | ) | |||||||||||
| Net income | $ | 827 | $ | 235 | $ | 322 | $ | 1,089 | $ | 1,313 | |||||||||||
| INTERCOMPANY ELIMINATIONS | |||||||||||||||||||||
| Interest income - Commercial and Other Banking Segment | (1,101 | ) | (1,017 | ) | (1,056 | ) | (1,248 | ) | (921 | ) | |||||||||||
| Interest expense - Mortgage Banking Operations | 1,101 | 1,017 | 1,056 | 1,248 | 921 | ||||||||||||||||
| EARNINGS - CONSOLIDATED | |||||||||||||||||||||
| Interest income | $ | 12,417 | $ | 12,050 | $ | 11,936 | $ | 12,024 | $ | 11,385 | |||||||||||
| Interest expense | (912 | ) | (790 | ) | (810 | ) | (810 | ) | (737 | ) | |||||||||||
| Net interest income | 11,505 | 11,260 | 11,126 | 11,214 | 10,648 | ||||||||||||||||
| Recovery (provision) of/for loan losses | - | 500 | - | (250 | ) | (250 | ) | ||||||||||||||
| Noninterest income - mortgage banking income | 19,018 | 17,095 | 19,380 | 22,241 | 21,064 | ||||||||||||||||
| Noninterest income - other | 1,311 | 1,388 | 1,359 | 1,385 | 1,202 | ||||||||||||||||
| Noninterest expense | (25,371 | ) | (25,168 | ) | (26,873 | ) | (29,154 | ) | (27,178 | ) | |||||||||||
| Pre-tax net income | 6,463 | 5,075 | 4,992 | 5,436 | 5,486 | ||||||||||||||||
| Noncontrolling interest in net income | (43 | ) | (68 | ) | (41 | ) | (51 | ) | (32 | ) | |||||||||||
| Income taxes | (2,363 | ) | (1,805 | ) | (1,823 | ) | (1,961 | ) | (1,993 | ) | |||||||||||
| Net income | $ | 4,057 | $ | 3,202 | $ | 3,128 | $ | 3,424 | $ | 3,461 | |||||||||||
| PER COMMON SHARE (1) | |||||||||||||||||||||
| Earnings per share - basic | $ | 0.34 | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.29 | |||||||||||
| Earnings per share - diluted | 0.34 | 0.27 | 0.26 | 0.29 | 0.29 | ||||||||||||||||
| Common stock - per share dividends | 0.09 | 0.09 | 0.08 | 0.08 | 0.07 | ||||||||||||||||
| Average Basic Shares Outstanding | 11,880,553 | 11,856,180 | 11,864,347 | 11,836,175 | 11,801,379 | ||||||||||||||||
| Average Diluted Shares Outstanding | 11,880,553 | 11,856,180 | 11,864,347 | 11,848,826 | 11,837,888 | ||||||||||||||||
| YIELDS | |||||||||||||||||||||
| Loans held for investment | 5.16 | % | 5.19 | % | 5.17 | % | 5.21 | % | 5.21 | % | |||||||||||
| Mortgage loans held for sale, net at fair value | 4.01 | 3.94 | 4.02 | 3.88 | 3.90 | ||||||||||||||||
| Other earning assets | 1.33 | 1.53 | 1.04 | 1.38 | 1.31 | ||||||||||||||||
| Total earning assets | 4.60 | 4.64 | 4.49 | 4.59 | 4.62 | ||||||||||||||||
| Interest bearing checking | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | ||||||||||||||||
| Money market and regular savings | 0.38 | 0.36 | 0.35 | 0.36 | 0.30 | ||||||||||||||||
| Time deposits | 0.68 | 0.68 | 0.65 | 0.61 | 0.61 | ||||||||||||||||
| Borrowings | 2.00 | 0.90 | 0.96 | 1.04 | 1.33 | ||||||||||||||||
| Total interest-bearing liabilities | 0.50 | 0.46 | 0.46 | 0.44 | 0.43 | ||||||||||||||||
| Interest rate spread | 4.10 | 4.18 | 4.03 | 4.15 | 4.19 | ||||||||||||||||
| Net interest margin | 4.27 | 4.34 | 4.19 | 4.28 | 4.32 | ||||||||||||||||
| FINANCIAL RATIOS | |||||||||||||||||||||
| Return on average assets | 1.42 | % | 1.16 | % | 1.11 | % | 1.22 | % | 1.31 | % | |||||||||||
| Return on average stockholders' equity | 13.73 | 10.89 | 10.82 | 12.28 | 12.98 | ||||||||||||||||
| Non-interest revenue/Total revenue | 62.1 | 60.5 | 63.5 | 66.3 | 66.2 | ||||||||||||||||
| Efficiency - Consolidated | 80.6 | 84.6 | 84.3 | 83.7 | 82.6 | ||||||||||||||||
| Efficiency - Bank only | 59.4 | 60.9 | 60.8 | 64.6 | 66.2 | ||||||||||||||||
| Average equity to average assets | 10.34 | 10.61 | 10.22 | 9.92 | 10.10 | ||||||||||||||||
| (1) Per common share values have been restated to reflect the 11 for 10 stock dividend December 2015 | |||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||
| Monarch Financial Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||
| (Dollars in thousands, except per share data) | For the Quarter Ended | |||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
| Beginning balance | $ | 8,887 | $ | 8,733 | $ | 8,676 | $ | 8,644 | $ | 8,949 | ||||||||||||
| (Recovery) provision of/for loan losses | - | (500 | ) | - | 250 | 250 | ||||||||||||||||
| Charge-offs | (23 | ) | (70 | ) | - | (287 | ) | (598 | ) | |||||||||||||
| Recoveries | 37 | 724 | 57 | 69 | 43 | |||||||||||||||||
| Net recoveries (charge-offs) | 14 | 654 | 57 | (218 | ) | (555 | ) | |||||||||||||||
| Ending balance | $ | 8,901 | $ | 8,887 | $ | 8,733 | $ | 8,676 | $ | 8,644 | ||||||||||||
| COMPOSITION OF RISK ASSETS | ||||||||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||||
| 90 days past due | $ | 104 | $ | 248 | $ | - | $ | - | $ | 175 | ||||||||||||
| Nonaccrual loans | 1,844 | 1,990 | 1,841 | 2,266 | 4,325 | |||||||||||||||||
| OREO and reposessed assets | 0 | 0 | 275 | 375 | 100 | |||||||||||||||||
| Nonperforming assets | $ | 1,948 | $ | 2,238 | $ | 2,116 | $ | 2,641 | $ | 4,600 | ||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||
| Nonperforming assets to total assets | 0.16 | % | 0.19 | % | 0.19 | % | 0.23 | % | 0.39 | % | ||||||||||||
| Nonperforming loans to total loans | 0.23 | 0.27 | 0.23 | 0.29 | 0.57 | |||||||||||||||||
| Allowance for loan losses to total loans held for investment | 1.05 | 1.07 | 1.10 | 1.09 | 1.10 | |||||||||||||||||
| Allowance for loan losses to nonperforming loans | 456.93 | 397.10 | 474.36 | 382.88 | 192.09 | |||||||||||||||||
| Annualized net charge-offs to average loans held for investment | (0.01 | ) | (0.33 | ) | (0.03 | ) | 0.11 | 0.29 | ||||||||||||||
| PERIOD END BALANCES (Amounts in thousands) | ||||||||||||||||||||||
| Total mortgage loans held for sale | $ | 189,131 | $ | 169,345 | $ | 153,243 | $ | 193,948 | $ | 159,899 | ||||||||||||
| Total loans held for investment | 850,054 | 829,269 | 790,704 | 792,962 | 787,003 | |||||||||||||||||
| Interest-earning assets | 1,150,341 | 1,099,316 | 1,059,135 | 1,101,733 | 1,110,582 | |||||||||||||||||
| Assets | 1,212,307 | 1,161,454 | 1,121,589 | 1,170,675 | 1,178,380 | |||||||||||||||||
| Total deposits | 1,063,411 | 999,094 | 962,179 | 979,023 | 1,037,140 | |||||||||||||||||
| Other borrowings | 10,000 | 26,000 | 20,000 | 56,025 | 11,050 | |||||||||||||||||
| Stockholders' equity | 120,939 | 117,633 | 116,034 | 113,460 | 111,443 | |||||||||||||||||
| AVERAGE BALANCES (Amounts in thousands) | ||||||||||||||||||||||
| Total mortgage loans held for sale | $ | 141,478 | $ | 142,363 | $ | 147,670 | $ | 180,485 | $ | 136,084 | ||||||||||||
| Total loans held for investment | 837,806 | 792,115 | 783,113 | 778,757 | 771,587 | |||||||||||||||||
| Interest-earning assets | 1,090,944 | 1,040,577 | 1,060,069 | 1,062,119 | 1,009,389 | |||||||||||||||||
| Assets | 1,149,440 | 1,099,252 | 1,122,895 | 1,126,749 | 1,070,581 | |||||||||||||||||
| Total deposits | 1,003,306 | 939,400 | 955,979 | 969,144 | 925,984 | |||||||||||||||||
| Other borrowings | 11,652 | 24,756 | 33,872 | 27,437 | 21,049 | |||||||||||||||||
| Stockholders' equity | 118,858 | 116,634 | 114,714 | 111,824 | 108,174 | |||||||||||||||||
| MORTGAGE PRODUCTION (Amounts in thousands) | ||||||||||||||||||||||
| Dollar volume of mortgage loans closed | $ | 457,891 | $ | 468,606 | $ | 527,514 | $ | 605,401 | $ | 487,423 | ||||||||||||
| Percentage of refinance based on dollar volume | 29.6 | % | 24.3 | % | 17.3 | % | 23.9 | % | 47.0 | % | ||||||||||||