Monarch Financial Holdings Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Net income attributable to the company was $1,153,699 for the third quarter of 2009, up 49.4% from the same period in 2008 when net income attributable to the company was $772,333. The quarterly annualized return on average stockholders' equity (ROE) was 7.25% against 6.67% last year. The annualized return on average assets (ROA) was 0.74% against 0.53% last year. Quarterly basic and diluted earnings per share were $0.17, a 21.4% improvement over the third quarter of 2008 when basic and diluted earnings per share were $0.14. Net income available to common stockholders was $955,933 against $772,333 last year. Total interest income was $8,062,871 against $7,869,158 last year. Net interest income was $5,536,079 against $4,359,182 last year. Net interest income after provision for loan losses was $3,989,291 against $3,878,601 last year. Income before taxes was $1,796,101 against $1,278,106 last year. Pre-tax net income was $1,795,000 against $1,278,000 last year. For the first nine months of 2009, net income attributable to the company was a record $3,633,562 compared to $2,667,561 for the same period in 2008, a 36.3% increase. The nine month annualized return on average stockholders' equity (ROE) was 7.84% against 8.79% last year. The annualized return on average assets (ROA) was 0.75% against 0.65% last year. Year-to-date 2009 diluted earnings per share were $0.53, compared to $0.51 the previous year, despite the issuance of additional shares in June of 2008. Net income available to common stockholders was $3,046,755 against $2,667,561 last year. Total interest income was $24,046,455 against $23,435,076 last year. Net interest income was $15,826,523 against $12,306,078 last year. Net interest income after provision for loan losses was $11,741,587 against $11,061,465 last year. Income before taxes was $5,635,464 against $4,253,498 last year. Net interest income increased 28.6% or $3.5 million in 2009, due to higher balances in both loans held for investment and in loans held for sale, as well as a major decline in cost of funds. Pre-tax net income was $5,635,000 against $4,253,000 last year. Book value per share as at September 30, 2009 was $8.42 against $8.16 as at September 30, 2008. Tangible book value per share as at September 30, 2009 was $8.14 against $8.16 as at September 30, 2008. The company also announced a new banking office in the Hilltop/First Colonial area of Virginia Beach. The new office will be located at 1635 Laskin Road and will open in the first quarter of 2010. For the quarter, the company reported charge-offs of $1,050,000 against $138,000 last year.

Monarch Financial Holdings Inc. has filed a registration statement with the U.S. Securities and Exchange Commission in connection with a proposed public offering of 650,000 shares of noncumulative convertible perpetual preferred stock with a public offering price and liquidation value of $25.00 per share. The company plans to use net proceeds of the offering for general corporate purposes, including funding organic growth and opportunistic acquisitions that meet its investment criteria. It may also use a portion of the net proceeds to redeem all or a portion of its preferred stock and warrant issued to the United States Treasury through the Capital Purchase Program.

Monarch Financial Holdings Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported total interest income of $8,416,747, net interest income of $5,701,238, net interest income after provision for loan losses of $3,863,641, income before taxes of $2,170,900, net income of $1,471,400 and net income attributable to the company of $1,419,592 or $0.21 per diluted share against total interest income of $7,217,863, net interest income of $3,599,067, net interest income after provision for loan losses of $3,230,137, income before taxes of $1,491,561, net income of $1,044,961 and net income attributable to the company of $927,027 or $0.18 per diluted share for the same period a year ago. The quarterly annualized return on average equity (ROE) was 9.17%, and the annualized return on average assets (ROA) was 0.85%. For the six months, the company reported total interest income of $15,983,584, net interest income of $10,290,444, net interest income after provision for loan losses of $7,752,296, income before taxes of $3,839,363, net income of $2,625,463 and net income attributable to the company of $2,479,863 or $0.37 per diluted share against total interest income of $14,810,945, net interest income of $7,191,923, net interest income after provision for loan losses of $6,427,891, income before taxes of $2,975,392, net income of $2,060,592 and net income attributable to the company of $1,895,228 or $0.38 per diluted share for the same period a year ago. The six month annualized return on average equity (ROE) was 8.05%, and the annualized return on average assets (ROA) was 0.76%.