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Monarch Bank

Chesapeake, VA · Cert 34945

FDIC · 13 branches

Q1 2016

$1.2BAssets
$1.0BLoans
$1.1BDeposits
$129.9MEquity
Loan mix
81%RE $711.1M18%C&I $156.6M1%Consumer $5.9MQ2 2014Q1 2016
Deposit mix
72%Interest-bearing $766.9M28%Noninterest $297.4MQ2 2014Q1 2016

Market Position · Virginia Beach-Norfolk-Newport News, VA-NC · 2015 SOD (annual) · 3.8% share · #6 of 30 inst. · $0.9B of $22.8B

12.3% Chesapeake (City)
4.4% Virginia Beach (City)
3.9% Norfolk (City)
10.9% Dare

Executive Summary

  • Earnings: ROA of 1.39%, up 14 bps year over year; NIM at 4.03%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 0.01%.
  • Capital: tier 1 leverage ratio of 11.26%, up 17 bps from a year ago.
  • Funding: loans stand at 97.64% of deposits as of Q1 2016.

Return on Assets (YTD, annualized)

1.39%+14 bps YoY

Net Interest Margin (YTD, annualized)

4.03%+3 bps YoY

Efficiency Ratio (YTD, annualized)

79.56%-288 bps YoY

Tier 1 Leverage Ratio

11.26%+17 bps YoY

NIM

4.30%Q1 ’144.26%Q1 ’154.32%Q1 ’16+1%+1%

Non-interest income vs. expense

7.73%Q1 ’1410.14%Q1 ’158.83%Q1 ’16-18%-4%

Year to date, annualized, through each quarter.

MetricQ2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016YoY ΔTrend
Earnings
Return on Assets1.17%1.16%1.13%1.25%1.23%1.19%1.18%1.39%+14 bps
Return on Equity10.84%10.65%10.33%11.85%11.66%11.19%10.97%12.82%+97 bps
Net Interest Margin3.89%3.89%3.89%4.00%3.90%3.94%4.05%4.03%+3 bps
Efficiency Ratio81.53%82.16%82.73%82.43%83.01%83.39%83.66%79.56%-288 bps
Non-Interest Burden2.00%2.02%2.10%1.84%1.85%1.97%2.12%1.76%-8 bps
Growth
Asset Growth (YoY)0.29%0.77%4.97%15.28%14.34%10.04%8.88%2.90%-1,238 bps
Loan Growth (YoY)-0.84%4.19%13.28%17.20%15.19%10.76%8.51%9.75%-746 bps
Deposit Growth (YoY)-0.82%-0.14%2.95%15.96%9.96%8.82%8.75%2.64%-1,332 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.00%0.01%0.01%0.23%0.16%0.10%0.01%-0.01%-24 bps
Allowance / Loans1.06%1.05%0.97%0.91%0.88%0.93%0.89%0.86%-6 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/a11.09%10.81%11.08%11.48%11.26%+17 bps
Total Risk-Based Capital14.31%14.18%13.81%13.38%13.52%13.95%13.60%13.84%+46 bps
Equity / Assets11.02%11.29%11.01%10.14%10.46%11.14%10.91%10.72%+58 bps
Liquidity & Funding
Loans / Deposits96.13%96.31%100.09%91.32%100.71%98.02%99.87%97.64%+632 bps
Liquid Assets / Assets3.63%5.71%4.67%6.22%7.20%6.75%5.05%4.92%-129 bps
CRE / Total Capitaln/an/an/an/an/an/an/an/an/an/a