7694 Monarch_A.indd - Coastal Home Mortgage Co.,LLC

MONARCH FINANCIAL HOLDINGS REPORTS STRONG GROWTH IN LOANS, DEPOSITS AND CAPITAL
WINTER 2009
VOLUME 8
Monarch Bank
continues to grow
as it approaches its
10th anniversary.
Building lasting relationships for ten years.
TEN YEARS AGO , Monarch Bank took flight with a dozen employees and the dream of bringing a true local community banking
experience to Hampton Roads. Today, the “butterfly bank” employs more than 300 and caters to personal and business banking needs
across Hampton Roads and beyond. And despite what The Wall Street Journal calls the toughest economic times for financial services
firms since the Great Depression, Monarch Bank continues to grow as it approaches its 10th anniversary in April.
“To look back on the past 10 years is a bit overwhelming,” said William F. “Tree” Rountree Jr., president and CEO of Monarch Bank.
“We’ve come so far in a short period of time, thanks in large part to a dedicated group of local people who have made it their mission
to make us the best company we can be.”
Added Barry Mathias, the Chesapeake president of Monarch Bank who is among the eight remaining employees that were there
at the opening of the bank 10 years ago: “It truly is amazing to see what we have accomplished. We started with one bank here
in Chesapeake and have grown to eight locations in Hampton Roads, another in the Outer Banks and into a financial services firm
that can assist customers with just about any banking, mortgage or investment need imaginable.”
Among the other employees who began the new adventure with Rountree and Mathias were Jim Ferber, Debbie Morgan,
Terri Truitt White, Jo Ann Lambert, Adele Justice, Bessie Dee, Barbara Murff and Rhonda LeDoyen.
“Was it a leap of faith?” Ferber asks. “Yes, kind of. We believed in the community bank approach and Bill Rountree vision.
It was exciting to bring something new to the area.”
What started as Monarch Bank with one office in Chesapeake has grown with additional offices in Chesapeake, Norfolk (2) and
Virginia Beach (4). In May of 2007, Monarch Bank launched a new community bank, OBX Bank, dedicated to the residents and
businesses on the Outer Banks of North Carolina located in Kitty Hawk.
Along the way, Monarch Mortgage was formed and expanded to 12 locations: five in Hampton Roads; one on the Outer Banks of
North Carolina; one in Richmond, Virginia; five in Maryland; Subsidiaries Virginia Asset Group and Monarch Capital also have thrived.
“The growth of our organization has been strong yet calculated over the years, something we’ve still been able to maintain over the
past 12 months,” Rountree said.
Even as the economy faltered and slipped into recession, Monarch Financial Holdings Inc, the bank holding company for Monarch
Bank, reported total regulatory capital growing to $77.8 million as of December 31, 2008, (a 54 percent growth rate for the year)
from the same time in 2007. Capital equals strength in tough economic conditions. Monarch is rated “Well Capitalized,” the highest
rating of capital strength by bank regulatory standards. ◆
F I N A N C I A L U P D AT E
William F. Rountree, Jr., President & CEO
2008 Review
Net Income and Strong Growth
Assets:
$597,200,000
+19%
Loans:
$504,700,000
+20%
Deposits:
$495,900,000
+27%
$1,132,883
-64%
Net Income:
Mortgages
$577,000,000
Message from the President
+193%
Monarch Completes
Treasury Capital
Purchase Program
Monarch completed the sale and issuance
of $14.7 million in preferred stock to the
U.S. Department of the Treasury as part of
their Capital Purchase Program. The program
is a voluntary program designed to provide
capital for healthy banks to improve the flow
of funds from banks to their customers.
The funds received on December 19, 2008
were used to fund loan growth.
OBX BANK
Team Ambassadors
The Outer Banks Chamber of Commerce named
team OBX Bank as “Team Ambassador of the
Month” for the fourth straight month in a row!
2 009 A R R I V E S T O W E L C O M E Y O U to our eighth issue of the
Monarch Flyer. I am extremely proud of our performance and strength
during this tough global economic crisis. Our local markets remain
stronger than most in our nation, and we see the current disruption
in the financial marketplace as an excellent opportunity to grow our
franchise and client base. In 2009 we celebrate our decade in business
of locals serving locals! The Bank’s capital position remains extremely
strong and we are pleased to report a record year of earnings for our
non-banking groups at Monarch Mortgage, Virginia Asset Group, and Monarch Capital.
Monarch Mortgage closed $577 million in mortgage loans in 2008, up from $197 million during
its startup year in 2007. With mortgage rates at historic lows, don’t delay in calling Monarch Mortgage
(Virginia Beach 757-390-2200; Chesapeake 757-222-2149; Norfolk 757-623-0055) for a quote
to refinance or purchase a home. Virginia Asset Group was the top performing bank investment group
for the mid-Atlantic region in 2008 for broker-dealer Infinex Financial Group. Please call Darin Ely,
(757-747-2556) president of Virginia Asset Group, Monarch’s investment and insurance division
if you do not have your investment or insurance business with Monarch or need a financial review.
Monarch’s growth continues in 2009, supported by a new OBX Bank office in Nags Head, NC.
I am again pleased with the special recognition our OBX Bankers received from The Outer Banks
Chamber of Commerce. Please call David McGlaughon, president of OBX Bank (252-261-9494)
to meet his dedicated team. In addition, meet Chesapeake native businessmen, OBBCO President
W. Michael Bryant, who serves on the Monarch Chesapeake City Board and Taylor Grissom who
has been a member of our Corporate Board of Directors since inception in 1998.
Lastly, a warm welcome, as always, to our readers, we hope you will enjoy reading this issue.
Please visit www.monarchbank.com to view past issues of the Monarch Flyer. We ask that you help
us by passing the newsletter along to your friends, family, work associates and neighbors and spread
the Monarch word. Enjoy!
Very truly yours,
Monarch Financial Holdings, Inc.
Shareholders Corner
Penny Bentley, Margaret Wells and Phyllis Neal
New OBX Bank in
South Nags Head
We’re thrilled to announce the construction
of our newest banking office. Our new
Nags Head location near mile post 10.5
in the 2500 block of S. Croatan Hwy. will have
two drive through lanes as well as a drive up
ATM and safety deposit boxes.
Covington Hendrix Anderson Architects
W
HEN THEY PREDICT A HURRICANE or major storm
in our markets they always remind us to fill our bathtubs
with water, as well as stock up on supplies. You could
equate the stockpiling of water and supplies in the banking
world to the reserves we set aside each year for potential
loan losses. Due to the problems in our real estate markets
and the general economy, Monarch placed over $5 million
into our loan loss reserve in 2008 when we experienced
$944,000 in true net loan losses. We feel by building up these reserves against losses we protect
future profitability, and profit growth should lead to an improved stock price once the markets
for bank stocks stabilize. No promises here, but that is how it should work. We will continue
to focus our efforts on building a strong capital base of strength and profitability while supporting
our clients with all their financial needs, which includes making loans. Have you heard that
banks aren’t making loans? We funded and placed over half a billion dollars in mortgage loans
in 2008, and grew total loans over $85 million. While we prepare for the storm they call 2009,
we think the hurricane on Wall Street and to some degree on Main Street will trickle into a
rainstorm when it reaches Monarch. Who needs all that water sitting in the tub anyway once
the storm is passed? Umbrella, anyone? ◆
MONARCH FLYER
MonarchiansX
Chesapeake Board Member W. Michael Bryant Plays it Safe
H
OW DOES V IRGINIA STAY SAFE ?
One way is through OBBCO Safety and Supply, Inc.,
the largest safety distributor in the state. Founded 23
years ago and based in Chesapeake, OBBCO has
supplied the likes of the U.S. Navy, Dominion Power,
Stihl Inc., and the Commonwealth of Virginia
with a wide variety of safety items.
“If it involves safety, we probably have what you’re
looking for,” said OBBCO President W. Michael Bryant,
who serves on the Monarch Chesapeake City Board.
“We buy from some of the best suppliers in the industry,
from 3M and DuPont to Honeywell and MSA, and we deliver
that quality – and unmatched customer service –
to customers all over Virginia and the Mid-Atlantic.”
Bryant, a Chesapeake native who graduated from Great Bridge
High School and attended Elon University, worked for an industrial
supply company in the early 1980s before deciding to start a company
from the ground up. The result was OBBCO, a firm that supplies
simplistic items like hard hats, safety glasses, gloves and rain suits
to more sophisticated items like respiratory protection,
fire equipment and gas instrumentation and nuclear
clothing.
The company has grown to a staff of 17, four of whom
have been on board for more than 20 years.
“We boast a wonderful family that is at the root of our
company’s philosophy: complete customer satisfaction,”
Bryant said.
OBBCO, a member of the American Society of Safety
Engineers and the National Safety Council, has been
honored as the Chesapeake Small Business of the Year and the Hampton
Roads Quality Business of the Year. Despite a sluggish economy, Bryant
expects 2009 to bring additional growth.
In his spare time, Bryant is an avid off-shore sports fisherman and
enjoys spending time on the Gale-Force, a boat named after his wife.
Should something go wrong at sea, you can bet Bryant will be prepared
– maybe with some buoys or life preservers from OBBCO supplier
Jim Buoy or foul-weather gear from Stearns Safety and Survival. ◆
Meet Monarch Bank’s Chief Credit Officer
M
ANAGING RISK IN LENDING is one of the
cornerstones of Monarch Bank, particularly through
the current challenging economy. The Chief Credit Officer
is a critical member of the management team. The financial
services industry has to comply with an increasing number
of State and Federal laws and regulations.
The Chief Credit Officer’s job is to ensure that
the organization is in full compliance with applicable
laws and regulations. He must coordinate the company’s
risk management efforts, explain risks and controls
to senior management and the Board, and make
proper recommendations.
Andrew N. “Andy” Lock serves as Monarch’s focal point of accountability on credit
decisions. Lock is responsible for risk management and oversight of all the lending
as well as loan operations and credit administration (credit policy, counterparty credit
risk management, and loss forecasting).
Lock has served as executive vice president and chief credit officer since joining Monarch
Bank in 2005. Lock came to Monarch from Ocean Sensor Technologies where he was
director of finance and accounting for the Virginia Beach-based company. In that position,
he was responsible for oversight of finance and budget, risk management and financial
reporting. He has more than 13 years of banking experience with Central Fidelity and
Wachovia banks, previously serving as Wachovia’s senior vice president, risk management.
“This is a very important position at Monarch,” said William F. “Tree” Rountree Jr.,
president and CEO of Monarch Bank. “For a company with a decade of history,
Andy’s skills, community ties and expertise are necessary to help us continue to grow
our business in Hampton Roads.” ◆
GETTING TO KNOW
Taylor B. Grissom
Position:
Member of Monarch Bank’s Corporate Board
of Directors since inception in 1998.
Business:
Mr. Grissom has over 22 years in construction
management, and 5 years in the pool industry.
He is the co-founder of VisuTel, Inc.
a broadband telecommunications company
and currently serves as its Vice President.
Mr. Grissom is also the managing member
of Blue Water Pools, LLC, a company
involved in the installation of in ground
pools and spas. He is responsible for the
business operations and sales.
Community:
Mr. Grissom is a native of Chesapeake.
He is a graduate of Virginia Wesleyan College,
where he has served on the Alumni Advisory
Council. He is an assistant baseball coach
at Great Bridge High School and a member
of River Oak Baptist Church.
MONARCH FLYER
WAYS TO S AV E
It’s Not What You Earn.
It’s What You Keep.
Mortgage rates are falling
Now is the right time to refinance or buy new.
Below are some ways to pay less tax and
keep more of your hard earned dollars.
Take advantage of tax deferred retirement
plans, such as 401(k) plans offered by your
employer. They all allow you to make pretax contributions. Another tax deferral is by
setting up a health-care flexible spending
account (FSA) at work. Your contributions
reduce your taxable income.
Don’t forget traditional IRAs. If you are not
covered by a retirement plan at work you
can make a deductible contribution.
If you have children, Section 529 plans
and Coverdell education savings accounts
aren’t tax deductible, but your savings
grow tax deferred and withdrawals are
tax free when used to pay qualifying
educational expenses.
Want to know more? Contact Darin Ely
at (757) 747-2556 president of Monarch’s
Investment & Insurance division.
M ORTGAGE RATES FALL AS U.S. EXPANDS RESCUE. As you can see from the Wall Street
Journal headline on Wednesday, November 26th, mortgage rates have fallen. Now is a great time
to consider refinancing or buying a new home. Mortgage rates for 30-year-fixed home loans fell
to their lowest level in 37 years, as the Federal Reserve pledged to pour money into the mortgage
market in an effort to spur the declining housing market.
Refinancing doesn’t always make sense, but our loan officers are available for one-on-one
consultations to show you firsthand how Monarch Mortgage can provide you with the best loan
program to meet your specific needs. If you have borrowed heavily against the equity in your home
and are feeling squeezed, refinance your home-equity loan and mortgage into one new loan. As
a premier local community bank, Monarch offers mortgage loan programs not available through
brokers or national or regional banks. With rates at historic lows, don’t delay in calling Monarch
Mortgage for a quote (Virginia Beach 390-2200; Chesapeake 222-2149; Norfolk 623-0055). ◆
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