Monarch Financial Q3 Results

Monarch Financial Holdings, Inc. (NASDAQ:MNRK) , the bank holding company for Monarch Bank, reported greatly improved third quarter net income and record year to date net income. Net income was $772,333 for the third quarter of 2008, up 146.4% from the third quarter of 2007 when net income was $313,461. For the first nine months of 2008 net income was a record $2,667,561 compared to $2,027,044 for the same period in 2007, a 31.6% increase. Diluted earnings for the third quarter were $0.14 per share, compared to $0.06 the previous year, a 133.3% increase. Year-to-date 2008 diluted earnings per share were $0.51, compared to $0.40 the previous year, a 27.5% increase.

"In the midst of a global financial crisis Monarch continues to perform well in our core lines of business of community banking, mortgage lending, and investment and insurance sales. While the marketplace continues to be extremely challenging for our company and our clients, we are pleased to grow revenues, profits and improve our balance sheet despite this environment. Turmoil among several of our local competitors proved positive, as it drove many substantial deposit clients to Monarch in search of a safe and sound bank," stated William 'Tree' Rountree, President and Chief Executive Officer. "We have been aggressive in dealing with non-performing assets and in building up our reserve for potential losses, which we feel is very prudent at this time. Like just about all banks, Monarch reported a higher level of non-performing assets this quarter, and we have aggressively charged-off any expected deficiency balances in these assets. We remain focused on building a strong company which we think will further differentiate us from the competition in these difficult economic times".