Yes, ROE & ROA are key metrics.
The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".
Exciting stuff this week.....As promised in their Q4 release, MNRK is doing eliminating the preferred shares!!! Short term blip with additional common available to float, but this is GREAT news long term for MNRK common holders!!!
Is it just me, or did anyone else feel like the HBKS CEO was kinda whiny in his 1/30/13 press release? What type of CEO would bad mouth other community banks in a press release just because HBKS couldn't keep up? Now he's taking his ball and going home? (deregistering)
Ummmmmm, did you read closely? "..common stock share price has increased more than 30% since we issued the preferred shares..." Means the common share price jumped 30% in that period. Also, throw in a total dividend of .49/share that common shareholders have received since 2010 and it sounds like a win for everyone.
May be bumpy ride for a month or two until the additional shares/float get digested, but this is great news for long term investors of MNRK!
The 1/31 press release that talked to diluted earnings (0.37 for the Q, 1.26 for the Y) factors in a total conversion scenario. With that, its current P/E of 7.77 is a steal for a company that had net income in 2012 of almost $13 Million, had a ROE of 17.51%, ROA of 1.28%, whose Non-performing assets dropped to 0.30% of total assets, etc....
Glad to see that the $4.5 million dished out to Preferred shares in the last 3 years is a thing of the past. As the CEO so eloquently stated: "The return of our capital to common stock and the anticipated growth in our net income available to common shareholders will have a positive impact on our shareholders."
Am I going out on a limb to make the following predictions?:
1) Common dividend will be increased at some point in 2013
2) Q1 earnings will report its 17th straight quarter of record year over year quarterly performance
3) Stock price will hit $11 sometime in 2013
Sentiment: Strong Buy
Doesn't mean I won't follow-up within this topic as to the accuracy of my predictions & to discuss the great news that MNRK is releasing throughout the year.
MNRK released great news this week for long-term holders of MNRK. Their preferred shares are going to be a thing of the past as of 3/8! Over the last three years, MNRK has paid preferred dividends of almost $4.5 million.....but not anymore!!! It could be bumpy ride for a month or 2 until the additional shares/float gets digested, but this is excellent news for long term investors of MNRK!
As the CEO of MNRK so eloquently stated earlier this week: "The return of our capital to common stock and the anticipated growth in our net income available to common shareholders will have a positive impact on our shareholders."
A few predictions for MNRK:
a) Q1 earnings release will report its 17th straight quarter of record year over year quarterly performance
b) Common dividend will be increased in 2013
c) Its price will hit $11 sometime in 2013
Included in MNRKs 1/31/13 press release.......
1) "Monarch was again awarded the highest 5-Star "Superior" rating by Bauer Financial, an independent third-party bank rating agency that rates banks on safety and soundness."
2) "Non-performing assets were 0.30%, which remains significantly below that of our local, state, and national peer group."
3) "..Total risk-based capital to risk weighted assets at Monarch Bank equaled 12.73%, significantly higher than the required level to meet the highest rating of "Well Capitalized" by federal banking regulators."
Take your scare tactics elsewhere.....
In November, Brad E. Schwartz, Chief Executive Officer of Monarch Bank and Monarch Financial Holdings, Inc., was elected to serve on the Board of Directors of the Federal Reserve Bank of Richmond. He will serve a three-year term beginning in January of 2013. He was elected as a Class A director representing bankers from the Fifth Federal Reserve District which comprises Maryland, the District of Columbia, Virginia, North Carolina, South Carolina, and most of West Virginia.
MNRK shareholders are feeling comfortable!!! What an honor!
Within recent press release from MNRK....While announced earlier, we are proud of being recognized as the second largest community bank based on deposits in the Greater Hampton Roads Metropolitan Area.....Over 900 million (HBKS is only 295 million)
It's all about deposits.....giving out a low interest rate to the customer but investing deposits into a higher yielding product......."Net interest income, our number one driver of profitability, increased 17% or $1.6 million during the fourth quarter of 2012 compared to the same quarter in 2011. Our 2012 net interest margin was 4.29%".........
As a Class "A" Board of Director for the the Federal Reserve Bank of Richmond, the MNRK CEO has it together!
Been on military highway many times......what a dump......Ate at "The great Steak" many times, I think they're closed now.........
Not only does MNRK have a CEO this is a Class "A" board of director for the Federal Reserve Bank of Richmond, but in Inside Business named
Monarch to its 2012 list of Best Places to Work Hall of Fame!!
Each year companies that have shown a high level
of achievement in the Best Places to Work competition
are inducted into the program’s Hall of Fame. They have
either been the top overall company, have been in the
top level of companies for at least two years or have been
named a Best Place to Work for four years.
This is the fourth year that Inside Business has honored
Monarch Bank as a “Best Places to Work” company.
Previous years honors include, 1st runner-up Large
company 2011, No. 2 Medium-sized company 2009
and No. 8 overall 2006
The Hall of Fame creates an opportunity for other
companies in the community to achieve Best Places to Work
honors while allowing Hall of Fame companies to maintain
their status as a Best Place to Work in Hampton Roads.
Monarch is one of only 45 banks named to
the Bank Honor Roll out of nearly 400 banks
screened by KBW. Monarch is one of only three
Virginia-based banks on the list, and one of only
two Virginia-based banks winning the award
the past two years in a row. It was also the only
bank located in the Hampton Roads market to
garner this performance-based recognition.
Honor Roll winners are publicly traded
banking institutions with more than
$500 million in total assets that meet KBW’s
criteria for superior performance.
“Superior” Five-star Rating Award:
Over the last eleven quarters, since September 2009, Monarch has received
the highest five (5) star rating from Bauer Financial, the nation’s leading independent
bank rating and research firm. Five stars is defined as Superior based on capital rating
with safety and soundness in mind.