Real Estate Central

CHESAPEAKE, Va., July 3 /PRNewswire-FirstCall/ — Monarch Financial
Holdings, Inc. (Nasdaq: MNRK), parent of Monarch Bank, announced that
effective on June 30, 2008, it had sold $2.1 million of common stock in the
second closing of a private placement in which it sold a total of 774,110
shares of common stock with gross proceeds of $7.2 million in additional
equity capital. The first closing of the private placement was announced on
June 10, 2008. In this placement, accredited investors purchased 704,309
shares at $9.25 per share, a discount to current market price to reflect
the restrictions placed on the newly issued shares, and members of the
corporate board of directors and senior management purchased 69,801 shares
at $9.90 per share, the closing price of the Company’s common stock on June
6, 2008, which, in accordance with NASDAQ guidelines on purchases by
company insiders, is considered to be the market value of purchased shares.
Monarch sold the private placement to local investors, institutional
investors, board members, and members of management.

“We are pleased to close the private placement and bring in an
additional $2.1 million to add to our previously announced sale of $5.1
million,” stated Brad E. Schwartz, Chief Operating and Financial Officer.
“We remain focused on using this capital to support our growth initiatives
and maintain our already strong balance sheet.” Monarch Financial Holdings
and Monarch Bank are recognized as “Well Capitalized” by banking
regulators, the highest capital rating available.

The Company agreed to pay to the placement agent for the private
placement commissions of $318,382. The net proceeds of the Offering, after
deducting commissions and expenses, will be approximately $6.8 million.
Monarch Financial Holdings, Inc. now has 5,647,175 shares of common stock
outstanding.

The newly issued stock was exempt from the registration requirements of
the Securities Act of 1933 and is subject to substantial restrictions as to
transferability until such time as it becomes registered. The proceeds from
the sale of the shares will be used by the Company for working capital and
general corporate purposes, including supporting its growth initiatives.
Monarch will rely on Section 4(2) of the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder, including
Rule 506 of Regulation D, for the exemption from registration for the sale
of such shares. This press release does not constitute an offer to sell or
the solicitation of an offer to buy the securities.

Monarch Financial Holdings, Inc. is the one-bank holding company for
Monarch Bank. Monarch Bank is a community bank with two offices in
Chesapeake, four offices in Virginia Beach, and two offices in Norfolk,
Virginia. OBX Bank, a division of Monarch Bank, operates one office in
Kitty Hawk, North Carolina. Services are also provided through fifty-two
ATMs located in the South Hampton Roads area and the Outer Banks of North
Carolina, and “Monarch Online” consumer and business internet banking
(http://www.monarchbank.com and http://www.OBXBank.com). Our
subsidiaries/divisions include Monarch Bank, OBX Bank, Monarch Mortgage
(secondary mortgage origination), Coastal Home Mortgage, LLC (secondary
mortgage origination), Home Mortgage Solutions, LLC (secondary mortgage
origination), Virginia Asset Group, LLC (investment and insurance
solutions), Real Estate Security Agency, LLC (title agency) and Monarch
Capital, LLC (commercial mortgage brokerage). We offer investment services
through our ownership in BI Investments, LLC (investments and asset
management), and insurance services through our ownership in Bankers
Insurance, LLC (full-service insurance agency). The shares of Monarch
Financial Holdings, Inc. are publicly traded on the NASDAQ Capital Market
under the symbol “MNRK”.

This press release may contain “forward-looking statements,” within the
meaning of federal securities laws that involve significant risks and
uncertainties. Statements herein are based on certain assumptions and
analyses by the Company and are factors it believes are appropriate in the
circumstances. Actual results could differ materially from those contained
in or implied by such statements for a variety of reasons including, but
not limited to: changes in interest rates; changes in accounting
principles, policies, or guidelines; significant changes in the economic
scenario; significant changes in regulatory requirements; and significant
changes in securities markets. Consequently, all forward-looking statements
made herein are qualified by these cautionary statements and the cautionary
language in the Company’s most recent Form 10-K and 10-Q reports and other
documents filed with the Securities and Exchange Commission. The Company
does not undertake to update forward-looking statements to reflect
circumstances or events that occur after the date the forward-looking
statements are made.

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[Via Real Estate Newswire]