Monarch Financial Holdings Inc
Monarch Financial — Investor Presentation (December 2013)
31 slides from Monarch Financial's investor presentation, Dec 4, 2013
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation As of September 30, 2013 December 4, 2013 Page 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relat
Slide 3: Introduction
Introduction Brad E. Schwartz Chief Executive Officer E. Neal Crawford, Jr. President William T. Morrison CEO, Monarch Mortgage Page 3
Slide 4: Corporate Profile
Corporate Profile Monarch Financial Holdings is a financial services company headquartered in Chesapeake, Virginia: – $1.0 billion in assets – $698 million in loans held for investment – $120 million in loans held for sale – $886 million in deposits Monarch Bank, founded in 1998, has 12 offices in H
Slide 5: Monarch Franchise
Monarch Franchise Monarch Bank Offices: Chesapeake, VA (2) Suffolk, VA (2012) Norfolk, VA (2) Williamsburg, VA (2012) Virginia Beach, VA (5) Newport News, VA/LPO (2013) OBX Bank Offices: Kitty Hawk, NC Nags Head, NC Monarch Mortgage Offices: Chesapeake, VA (3) Newport News, VA Waldorf, MD Norfolk, V
Slide 6: Outside Recognition
Outside Recognition KBW Honor Roll Award winner 2011 (top 40), 2012 (top 45) and 2013 (top 48). One of two banks in Virginia to win all three years. Sandler O’Neil Sm-all Star Award for 2012 financial performance. SNL Top 100 Community Banks in 2012 BB&T Capital Markets/Scott and Stringfellow “Buy”
Slide 7: Experienced Management Team
Experienced Management Team Our senior management team consists of 24 experienced bankers with an average of 28 years experience in the financial services industry. Bank loan production and risk is managed via specialization for real estate lending and a scalable market president approach. – 10% Dir
Slide 8: Our “Smart Growth” Business Strategy
Our “Smart Growth” Business Strategy Use Market Presidents and advisory boards for product and service delivery Continue to Grow in existing and new markets of the Peninsula, Suffolk and Williamsburg, Banking along the I-664/I-64 pathway. Focus on organic growth and acquisition of Franchises bank an
Slide 9: Management’s Focus in 2013
Management’s Focus in 2013 Ramping up Monarch Bank Private Wealth Growing Bank/Mortgage/Private Wealth in new markets of Newport News, Williamsburg, and Suffolk Building Advance Mortgage team with #1 residential realtor Rose and Womble Realty. (prior partner for 17 years was Wells Fargo) Structuring
Slide 10: Financial Highlights
Financial Highlights Q312 - 2007 ($ in millions) Q3 2013 2012 2011 2007 CAGR Total Assets $1,011.9 $1,215.6 $908.7 $503.1 18% Loans, HFI 697.5 661.1 607.6 419.2 12% Loans, HFS 120.4 419.1 211.6 18.8 94% Total Deposits 886.1 901.8 740.0 389.7 22% Stockholders Equity 96.8 88.9 76.8 36.5 29% Net Intere
Slide 11: Net Interest Income – Peer Comparison
Net Interest Income – Peer Comparison Bank OnlyFFIEC – Information Page 11
Slide 12: Net Overhead – Peer Comparison
Net Overhead – Peer Comparison Bank onlyFFIEC – Information Page 12
Slide 13: Capital
Capital Monarch Financial Holdings, Inc. is one bank holding company (2006) Publicly traded on Nasdaq Capital Market under MNRK – Common Equity 10,482,651 shares $85,592,000 – Pooled Trust Preferred at L+160 $10,000,000 Total Capital $95,592,000 Capital Activities – Issued $14.7 Million in TARP in D
Slide 14: Balance Sheet 9/30/2013
Balance Sheet 9/30/2013 Page 14
Slide 15: Steady Balance Sheet Growth – Total Assets
Steady Balance Sheet Growth – Total Assets Page 15
Slide 16: Steady Balance Sheet Growth – Loans
Steady Balance Sheet Growth – Loans Page 16
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio Significant controls in place to actively monitor and manage real estate exposure – Centralized residential real estate and construction underwriting and monitoring – Centralized Commercial Real Estate Group, with CRE loan brokerage capacity Mortgage loans held for sale pr
Slide 18: Non-Performing Assets – Compared to Peers
Non-Performing Assets – Compared to Peers Non-Performing Assets includes loans & debt securities past due 90 days or more and those placed on non-accrual status, and non-investment OREO. Page 18
Slide 19: Our Texas Ratio – Compared to Peers
Our Texas Ratio – Compared to Peers The Texas Ratio is defined as non-current loans & debt securities plus non-investment OREO divided by tangible equity plus loan loss reserves. Page 19
Slide 20: Steady Balance Sheet Growth - Deposits
Steady Balance Sheet Growth - Deposits Page 20
Slide 21: Deposits Mix
Deposits Mix Core deposit mix is vital to funding our loan growth and preserving our net interest margin – Have a 6-person Cash Management Team to rival larger competitors – Goal is to sell and service large commercial deposit relationships 31% of total deposits in DDA We utilize FHLB, CDARS and bro
Slide 22: Checking Account Focus = Record Growth
Checking Account Focus = Record Growth 22
Slide 23: Deposit Market Share – Room for Growth
Deposit Market Share – Room for Growth Ranked #6 with $789 million or 3.64% deposit market share in 36 th Largest MSA in U.S. – Top five institutions had 77% of deposits in the market, four are regional/national – Monarch CAGR 11% past six years in Hampton Roads MSA – Held the #9 spot in market shar
Slide 24: Non-Interest Income Growth
Non-Interest Income Growth Our strategy involves building and maintaining sustainable revenue and net income sources in addition to traditional banking spread income – Monarch Mortgage: Originates retail prime residential mortgage loans – Real Estate Security Agency: residential and commercial title
Slide 25: Monarch Mortgage
Monarch Mortgage Monarch Mortgage, headquartered in Virginia Beach, was founded in May 2007. Retail origination of permanent residential mortgage loans primarily sold, servicing released, into the secondary market. Partnered with top local residential realty company in 2013 and opened 8 in-office lo
Slide 26: Monarch Bank Private Wealth
Monarch Bank Private Wealth Opened Monarch Bank Private Wealth in September 2012 Hired proven team of 12 from Suntrust Bank – Investment Professionals, Private Bankers, Commercial Lender, CFPs – Non-compete and non-solicitations expired September 2013 Raymond James Financial Services (RJFS) serves a
Slide 27: Risk Management
Risk Management Company has an Enterprise Risk Management Committee that meets monthly to ensure risk is properly identified and managed The credit risk within the company is overseen by our experienced Chief Risk Officer and Chief Credit Officer – All loans are reviewed and loan relationships that
Slide 28: Interest Rate Risk – Positioned for Rising Rates
Interest Rate Risk – Positioned for Rising Rates IR Gap Calculated from CALL Report data for Monarch Bank. Page 28
Slide 29: Why Invest in Monarch?
Why Invest in Monarch? High performing, diversified financial services company Attractive franchise in a large top 40 MSA Strong, highly experienced management team and bankers Conservative underwriting culture / strong asset quality Significant mortgage operations with focus on growing additional n
Slide 30: Peer Group for Specific Peer Charts
Peer Group for Specific Peer Charts Page 30
Slide 31: Thank You
MONARCH MOMS HOLDINGS INC.
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