Monarch Financial Holdings Inc
Monarch Financial — Investor Presentation (September 2015)
24 slides from Monarch Financial's investor presentation, Sep 9, 2015
Slide 1: Investor Presentation
Exhibit 99.1 ***************** Investor Presentation ************** As of June 30, 2015 September 8-9, 2015 ********** BB&T Capital Markets Coverage behind presentation 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: MNRK Profile
MNRK Profile Monarch Financial Holdings, Inc. is headquartered in Chesapeake, Virginia: – $1.17 billion in assets – $792 million in loans held for investment – $194 million in loans held for sale – $979 million in deposits Monarch Bank, founded in 1998, has 11 offices in Hampton Roads and is the sec
Slide 4: Experienced Management Team
Experienced Management Team Our senior management team consists of 21 experienced bankers with an average of 29 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% Di
Slide 5: Monarch Markets
Monarch Markets Hampton Roads MSA is 2 nd largest in Virginia and 37 th largest in US (1.67 million people 2010 census) Monarch Bank: Chesapeake, VA (2) Williamsburg, VA (2012) Norfolk, VA (2) Newport News, VA/LPO (2013) Virginia Beach, VA (5) Richmond, VA/LPO (2014) OBX Bank: Kitty Hawk, NC Nags He
Slide 6: Deposit Market Share
Deposit Market Share Bank Name Offices Deposit $ Bank Cumul. 5-Year (thousands) Market % Market% Growth 1. Wells Fargo 54 $4,404,872 20.37% 20.37% (1.05%) 2. Towne Bank 26 3,611,649 16.70% 37.07% 3.62% 3. SunTrust Bank 41 3,495,965 16.16% 53.23% 1.05% 4. BB&T 51 2,916,523 13.48% 66.71% 0.66% 5. Bank
Slide 7: Long-term “Smart Growth” Strategy
Long-term “Smart Growth” Strategy Use Market Presidents and advisory boards for product and service delivery Grow Banking in Hampton Roads, Richmond and OBX NC. Focus on organic growth and Franchises acquisition of bank and non-interest income companies and team lift-out opportunities. Use methodica
Slide 8: Recognition
Recognition Virginia Business - Best Places to Work in Virginia 2014 and 2015 Inside Business - Best Places to Work in Hampton Roads in 2007, 2009, 2011, 2012 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 Sm-a
Slide 9: Financial Highlights
Financial Highlights CAGR (balancesheet & P&L in millions) YTD 2015 2014 2013 2012 2011 2014-2011 Total Assets $1,170 $1,067 $1,017 $1,216 $909 8% Loans, HFI 793 773 713 661 608 8% Loans, HFS 194 148 99 419 212 -2% Total Deposits 979 919 893 902 740 8% Stockholders Equity 113 107 98 87 76 12% Intere
Slide 10: Peer Analytics – Overall 5 Year Performance
Peer Analytics – Overall 5 Year Performance Source: Briden Banking Report, performance ranking among 50+ peers Page 10
Slide 11: Shareholder Focus
Shareholder Focus Per Share Returns High mortgage loan refinance volume Q3- Cash Dividend is 12, Q4-12, Q1-13 drove currently at $0.09 uneven EPS growth per share Cash Dividend Growth Growing Book Value Per Share Page 11
Slide 12: 5 Year Net Income Trend
5 Year Net Income Trend In thousands Mortgage Refinance Boom
Slide 13: High Performance Profitability
High Performance Profitability Page 13
Slide 14: Balance Sheet 6/30/2015
Balance Sheet 6/30/2015 In millions 1,200,000 1,100,000 Mortgage Loans 131,080 Non-core funding 193,948 Held for Sale (MMDA & CDARS) 1,000,000 Cash / Investments 900,000 119,259 800,000 700,000 Loans Held for Core Deposits Investment 600,000 847,943 500,000 792,962 400,000 300,000 200,000 Other Liab
Slide 15: Balance Sheet Growth
Balance Sheet Growth Steady LHFI Loan Growth $1,200 $1,000 $419 $194 LHFI $148 $800 $212 $100 DDA + 8% 2014 $186 $600 38% Core Deposits + 7% 2013 $400 $559 $608 $661 $713 $773 $792 32% Total Deposits $200 $0 2010 2011 2012 2013 2014 Q2-15 Deposit Growth Focus on DDA Growth $979 $400 $1,000 $919 $902
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Higher risk line of business actively monitors and manages real estate exposure - Centralized residential real estate and construction underwriting and monitoring - Centralized Commercial Real Estate Group, with CRE loan brokerage capability Mortgage loans held for sale (M
Slide 17: Asset Quality in Top Quartile/Decile
Asset Quality in Top Quartile/Decile Page 17
Slide 18: 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 19: NII - Monarch Mortgage
NII - 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-off
Slide 20: NII - Monarch Bank Private Wealth
NII - Monarch Bank Private Wealth Assets Under Management Began Operations in September 2012 $300 $250 Hired proven team of 12 from Suntrust $246 $200 — Investment Professionals $150 $235 $100 — Private Bankers, Commercial Lender, CFPs $185 $50 $103 $15 $15 Raymond James serves as Broker-Dealer $0 2
Slide 21: Capital
Capital Monarch Financial Holdings, Inc. is one bank holding company (2006) Publicly traded on Nasdaq Capital Market symbol MNRK — Common Equity 10,777,965 shares $113,375,000 — Pooled Trust Preferred at L+160 $ 10,000,000 Total Capital $123,375,000 Capital Activities — 20,000,000 common shares auth
Slide 22: Risk Management
Risk Management Company has an Enterprise Risk Management Committee 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 exceed $1,500,000 a
Slide 23: Why Invest in Monarch?
Why Invest in Monarch? High performing, diversified financial services company Attractive franchise in 37 th Largest MSA in Country Experienced management with scalable structure for growth Appetite for growth in all lines of business Conservative underwriting culture / strong asset quality Signific
Slide 24: Peer Group for Specific Peer Charts
Peer Group for Specific Peer Charts SourceofPeerGroupMetrics:BridenBankers Caddy Page 24
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