Monarch Financial Holdings Inc
Monarch Financial — Investor Presentation (February 2015)
32 slides from Monarch Financial's investor presentation, Feb 20, 2015
Slide 1: Investor Presentation, December 31, 2014
Exhibit 99.1 Exhibit Investor As Page of1December 99.1 Presentation 31, 2014 February 19, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Certain Act similar operations, forward-looking Pageof2 1934, import. information there asAlthough amended. statements. can Statements contained be no the These assurance For Company inforward-looking details this discussion that believes onactual factors that may results, statements
Slide 3: Introduction
Brad Introduction Chief E. Page President Neal E. 3Executive Crawford, SchwartzOfficer Jr.
Slide 4: Corporate Profile
Corporate $1.07 $773 $149 $919 OBX Monarch Page 4million Bank, billion Financial Bank, Mortgage Bank Profile aindivision Private assets loans deposits opened Holdings drives held of Wealth inMonarch 1999, significant forissale investment opened ahas financial Bank, 10 non-interest inbanking late ope
Slide 5: Franchise Offices
OBX 5Hawk, Kitty Chesapeake, Norfolk, Newport Richmond, Fredericksburg, Fairfax, Alexandria, Monarch Williamsburg, Virginia Page Bank VA Beach, VA News, Franchise Mortgage Bank VA Offices: (2) VA (2) (3) NC VAVA (3) Offices: Private Towson, Waldorf, VA Virginia Bowie, (2) (3) Nags (NEW Greenbelt, (4
Slide 6: Recognition
Outside BB&T banks Sandler Roads Recognized Page 6in in Capital O’Neil Recognition Virginia 2007, as “Rising by Markets Virginia Inside 2009, Sm-all to win 2011, Business Star 20” “Buy” Business all top Award three 2012 recommendation growth asyears. Magazine one for 2012 of company thefinancial as“
Slide 7: Experienced Management Team
Experienced Our experience –specialized Name Years Brad E. Denys Lynette Andrew Jack Steve Jeremy Theresa Chas Craig David William Bernie Patrick James Barbara Barry Karyn *Mary Page 9.8% Serves Neal senior Lane E. 7 Wright Anderson Layden Reilly Mathias Position Ropp McGlaughon Ferber Miller Mercie
Slide 8: Our Smart Growth Strategy
Our “Smart Have Franchise service Private Deposits average Build Grow Interest Lines Continue Management Focus Maintain Financial Discipline Page 8the of and Banking Core Non- competitor delivery Banking/Cash Income $77M Business growth. Platform Risk Deliver to risk acquisitions. maintain company g
Slide 9: Management's Focus
Management’s Hiring Loan Bank Capital Newport Growing Maintaining Engaging Regulatory Page 9growth acquisition talented planning News, client Bank/Mortgage/Private core 160 compliance/risk our and transaction Directors Focus bankers base Williamsburg, A/L for opportunities client of potential positi
Slide 10: Financial Highlights
Financial 2014 Loans, Stockholders Interest Non-Interest N.I. Return Diluted Book Net NPAs Loan Total Average Page Income Interest Available 10 Assets 2013 Deposits Risk Loss Value &HFS HFI on Income Earnings Shares 90 Highlights Equity Based Reserves 2012 772.6 PD per Income 11.2 Margin 147.7 $1,06
Slide 11: Annual Mortgage Refinance Market Trend
Annual In $12,000 $$14,000 $4,000 $6,000 $8,000 $10,000 Market Refinance $2,000 5,949 2010 $0$thousands $ 2011 7,126 $Net Mortgage $ 2012 Income 4 12,89 2013Trend 1 2014 11,09 2 11,21
Slide 12: Net Interest Income Peer Comparison
Net Interest Bank Page 12 Only –Income FFIEC –Information Peer Comparison
Slide 13: Net Overhead Ratio Peer Comparison
Net Overhead Mortgage Long-term 2.00%—2.25% Bank Page 13 onlyMortgage –Goal FFIEC – Net PeerOverhead Information. Refi Comparison BoomRatio Refi Net Boom overhead is non-interest expense less non-interest income divided by average assets.
Slide 14: Monarch Capital Activities
Monarch Capital -$0.14=2010, Page Common Pooled Issued Began Performed 14Activities paying $14.7 $20 Trust Financial Equity common million $0.16=2011, Million Preferred common 10,652,475 Holdings, ofstock in Non-cumulative at stock TARP $0.19=2012, L+160 6:5Inc. shares dividends split in is $Decembe
Slide 15: Balance Sheet
Balance In 1,100,000 106,900 1,000,000 Mortgage 900,000 772,590 600,000 700,000 800,000 500,000 100,000 200,000 300,000 400,000 057,333 Page — millions 15Other Sheet Non-core Held 812,514 Loans 89,124 Loans Borrowings 147,690 Assets for 12/31/2014 HFI Cash brokered, Sale funding (CDARS, Core 117,538
Slide 16: Steady Balance Sheet Growth – Total Assets
Steady In $1,017 $1,200 $1,216 $1,400 $1,000 $600 $597 $690 $800 $826 $400 $407 2004 $0 $200 $227 Page millions 16 $502 $331 2005 Balance $1,067 $9082006Sheet 2007 Growth 2008 2009 – Total 2010Assets 2011 2012 2013 2014
Slide 17: Steady Loan Growth
10$millions In 419 $1,000 $1,200 $800 $600 186 $212 19 54 179 2004 $0 Gold Years 200 148 263 100 79 2005 equals 400 321 Steady 2006 419 loansLoan 505 2007 held 538 Growth 2008 for559 investment, 2009 6082010 661 713 yellow 2011773 2012 equals 2013mortgage 2014 loans held for sale
Slide 18: Diversified Loan Portfolio
Diversified –Significant Mortgage balance LOANS TOTAL $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Page Centralized LHFI 18 9% LHFS 14% RE 22% 19%Commercial sheet LOANS HELD Consumer Comm-NOO Residential Heloc 18% loans RE controls Loan RE residential Commercial Construction Multifamily Co
Slide 19: Non-Performing Assets Historically Low
Non-Performing Page 19 Assets includes – Historically loansLow & debt to Peer securities past due 90 days or more and those placed on non-accrual status, and non-investment OREO.
Slide 20: Texas Ratio Compared to Peers
Our Texas The Page 20 Ratio is – Compared defined as to non-current Peers loans & debt securities plus non-investment OREO divided by tangible equity plus loan loss reserves.
Slide 21: Steady Balance Sheet Growth – Deposits
Steady $1,000 $919 2004 Page 21 $902 2005 Balance In millions $895Sheet 2006 $900 Growth—Deposits 2007 $800 2009 2008 $740 2010 $713 2011 $700 2012 $600 2013 $540 2014 $498 $500 $400 $389 $273$314 $300 $200 $171 $100 $0
Slide 22: Core Deposits
Deposits –Core We 32% 100% Page Have Goal Converted utilize 26% deposit 22is a Mix Cash to25% non-core sell to mix Management robust 80% and is vital FHLB, service 45% online/mobile to38% funding CDARS large Team 38%commercial toour 60% delivery and rival loan brokered 44% larger growth system depos
Slide 23: Checking Account Growth
Checking $350 Management $250 67 $300 $150 TeamCash $200 32 235 $100 15 11 $50 56 2004 $0 Gold 23 134 207 20 63 80In 41 195 2005 equals 66 76 millions 29 Account 98 2006 non-interest Implemented 2007 Focus 2008 bearing = 65 Record 2009 DDA, 2010 Growth 2011 green2012 equals 2013 interest-bearing 201
Slide 24: Deposit Market Share Ranking
Deposit –Ranked Branch 2014 987654321Rank 10 Greater Page Top Wells TowneBank Surpassed OBX SunTrust BB&T Bank Monarch Old Hampton PNC Farmers 24 Count Institution Point five Bank of Bank Deposits Fargo Hampton #6 Market Corporation America institutions with Financial Banks, Roads Bank Financial in
Slide 25: Non-Interest Income and Mortgage Service Lines
–Our Mortgage Service Other Total *Non-Interest Page Real Monarch Operating strategy 25 Non-Interest 597 Estate charges banking 472 Mortgage: Capital: Bank Revenue involves Income Security 885 and Private Income revenue 606 commercial fees /Growth defined building Originates Agency: Operating 425 We
Slide 26: Monarch Mortgage
Partnered Mortgage Strong In Experienced Monarch $1,977 $2,500.00 $1,630 $1,000.00 $75 $500.00 Significant –2006 Page 14 23 $1.6 Primary Minimal millions $200 in 26 2007 Billion risk $1,656 core mortgage Mortgage, Mortgage with Originations focus legacy 2008 $3,000.00 origination management banking
Slide 27: Monarch Private Wealth
Monarch Opened -assets Page Williamsburg Virginia Investment Non-compete $235 $76 221 27 million client Through million Monarch Bank Beach relationships, Professionals, inin Private –December and discretionary –assets Headquarters, Bank Recently non-solicitations Wealth Private under 81% 31, Private
Slide 28: Risk Management
Risk Company -The Mortgage CEO, Investment Other Page Allcredit loans Management 28 previously thanoperational has risk are credit riskan reviewed risk within oversight Enterprise served risk rated our risks theand as with banking company ofaare Risk loan Raymond chief those managed Management relat
Slide 29: Interest Rate Risk – Positioned for Rising Rates
Interest IR Page Gap29Calculated Rate Risk –from Positioned CALL for Report Rising dataRates for Monarch Bank, Asset repricing compared to liability repricing, next 12 months.
Slide 30: Why Invest in Monarch?
Why Invest High Attractive Experienced Significant Outperform Page 30 performing, franchise mortgage in peers management Monarch? diversified through inoperations 36thteam disciplined Largest financial with withMSA scalable focus growth services inon Country structure and growing company risk manage
Slide 31: Peer Group
Peer Group Source Page 31of Peer for Group Specific Metrics: Peer Charts Briden Bankers Caddy
Slide 32: Thank You
MONARCH MOMs HOLDINGS INC.
Monarch Financial Holdings — Investor Presentation (February 2015) on 6ix