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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
Reportable segments include community banking and retail mortgage banking services. Community banking involves making loans to and generating deposits from individuals and businesses in the markets where we have offices. Retail mortgage banking originates residential loans and subsequently sells them to investors. Our mortgage banking segment is a strategic business unit that offers different products and services. It is managed separately because the segment appeals to different markets and, accordingly, requires different technology and marketing strategies.
Funding for retail mortgage banking services' loans held for sale (LHFS) portfolio is provided by community banking services. The outstanding LHFS balance and related interest earned for the bank's interim holding period of these loans is recorded in the community banking segment. This interim interest income was $1,746,435 and $3,053,472 in the second quarter and first half of 2015, respectively. In the second quarter and first half of 2014 interest income was $1,274,498 and $2,047,230 , respectively. In the event of early payment default, Monarch has recorded a reserve for loan repurchases which totaled $3,222,710 at June 30, 2015 and $3,013,396 at December 31, 2014. Our reserve for loan repurchases is not a part of our loan loss reserve and is carried in other liabilities. This reserve, which is an estimate of the potential for losses based on investor contracts, is not an indication that losses will occur and is periodically analyzed and adjusted through income.
The retail mortgage banking segment’s most significant revenue and expense is non-interest income and non-interest expense, respectively. We do not have other reportable operating segments. (The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 of our annual 10-K.) All inter-segment sales prices are market based. The assets and liabilities and operating results of our other wholly owned subsidiary, Monarch Capital, LLC, are included in the mortgage banking segment. Monarch Capital, LLC, provides commercial mortgage brokerage services.
Segment information for the three and six months ended June 30, 2015 and 2014 is shown in the following tables.

Selected Financial Information
 
Commercial
and Other
Banking
 
Mortgage
Banking
Operations
 
Inter-segment
Eliminations
 
Total
Quarter Ended June 30, 2015
 
 
 
 
 
 
 
Income:
 
 
 
 
 
 
 
Interest income
$
11,700,295

 
$
323,521

 
$
—

 
$
12,023,816

Non-interest income
1,891,160

 
22,240,973

 
(505,869
)
 
23,626,264

Total operating income
13,591,455

 
22,564,494

 
(505,869
)
 
35,650,080

Expenses:
 
 
 
 
 
 
 
Interest expense
(810,101
)
 
(505,869
)
 
505,869

 
(810,101
)
Provision for loan losses
(250,000
)
 
—

 
—

 
(250,000
)
Personnel expense
(4,771,234
)
 
(16,131,450
)
 
—

 
(20,902,684
)
Other non-interest expenses
(4,496,694
)
 
(3,754,135
)
 
—

 
(8,250,829
)
Total operating expenses
(10,328,029
)
 
(20,391,454
)
 
505,869

 
(30,213,614
)
Income before income taxes
3,263,426

 
2,173,040

 
—

 
5,436,466

Provision for income taxes
(1,177,947
)
 
(783,816
)
 
—

 
(1,961,763
)
Less: Net income attributable to non-controlling interests
(15,122
)
 
(35,752
)
 
—

 
(50,874
)
Net income attributable to Monarch Financial Holdings, Inc.
$
2,070,357

 
$
1,353,472

 
$
—

 
$
3,423,829

 
 
 
 
 
 
 
 
Quarter Ended June 30, 2014
 
 
 
 
 
 
 
Income:
 
 
 
 
 
 
 
Interest income
$
10,397,287

 
$
159,705

 
$
—

 
$
10,556,992

Non-interest income
1,304,304

 
17,369,228

 
(174,659
)
 
18,498,873

Total operating income
11,701,591

 
17,528,933

 
(174,659
)
 
29,055,865

Expenses:
 
 
 
 
 
 
 
Interest expense
(976,886
)
 
—

 
—

 
(976,886
)
Personnel expense
(3,930,738
)
 
(11,327,260
)
 
(4,470
)
 
(15,262,468
)
Other non-interest expenses
(3,970,887
)
 
(3,952,758
)
 
179,129

 
(7,744,516
)
Total operating expenses
(8,878,511
)
 
(15,280,018
)
 
174,659

 
(23,983,870
)
Income before income taxes
2,823,080

 
2,248,915

 
—

 
5,071,995

Provision for income taxes
(983,793
)
 
(783,707
)
 
—

 
(1,767,500
)
Less: Net income attributable to non-controlling interests
(6,857
)
 
(114,064
)
 
—

 
(120,921
)
Net income attributable to Monarch Financial Holdings, Inc.
$
1,832,430

 
$
1,351,144

 
$
—

 
$
3,183,574


 
Commercial
and Other
Banking
 
Mortgage
Banking
Operations
 
Inter-segment
Eliminations
 
Total
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
Income:
 
 
 
 
 
 
 
Interest income
$
22,783,587

 
$
625,799

 
$
—

 
$
23,409,386

Non-interest income
3,476,283

 
43,304,652

 
(888,508
)
 
45,892,427

Total operating income
26,259,870

 
43,930,451

 
(888,508
)
 
69,301,813

Expenses:
 
 
 
 
 
 
 
Interest expense
(1,547,182
)
 
(888,508
)
 
888,508

 
(1,547,182
)
Provision for loan losses
(500,000
)
 
—

 
—

 
(500,000
)
Personnel expense
(9,444,701
)
 
(30,497,397
)
 
—

 
(39,942,098
)
Other non-interest expenses
(8,483,066
)
 
(7,906,181
)
 
—

 
(16,389,247
)
Total operating expenses
(19,974,949
)
 
(39,292,086
)
 
888,508

 
(58,378,527
)
Income before income taxes
6,284,921

 
4,638,365

 
—

 
10,923,286

Provision for income taxes
(2,275,644
)
 
(1,679,459
)
 
—

 
(3,955,103
)
Less: Net income attributable to non-controlling interests
(31,027
)
 
(52,120
)
 
—

 
(83,147
)
Net income attributable to Monarch Financial Holdings, Inc.
$
3,978,250

 
$
2,906,786

 
$
—

 
$
6,885,036

 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
Income:
 
 
 
 
 
 
 
Interest income
$
20,723,919

 
$
267,156

 
$
—

 
$
20,991,075

Non-interest income
2,526,025

 
29,571,390

 
(289,891
)
 
31,807,524

Total operating income
23,249,944

 
29,838,546

 
(289,891
)
 
52,798,599

Expenses:
 
 
 
 
 
 
 
Interest expense
(1,947,998
)
 
—

 
—

 
(1,947,998
)
Personnel expense
(7,602,757
)
 
(19,937,330
)
 
(4,906
)
 
(27,544,993
)
Other non-interest expenses
(7,315,501
)
 
(7,187,920
)
 
294,797

 
(14,208,624
)
Total operating expenses
(16,866,256
)
 
(27,125,250
)
 
289,891

 
(43,701,615
)
Income before income taxes
6,383,688

 
2,713,296

 
—

 
9,096,984

Provision for income taxes
(2,272,743
)
 
(965,997
)
 
—

 
(3,238,740
)
Less: Net income attributable to non-controlling interests
(6,541
)
 
(130,864
)
 
—

 
(137,405
)
Net income attributable to Monarch Financial Holdings, Inc.
$
4,104,404

 
$
1,616,435

 
$
—

 
$
5,720,839


Segment Assets

 

 

 

June 30, 2015
$
1,169,578,999

 
$
22,113,950

 
$
(21,018,311
)
 
$
1,170,674,638

December 31, 2014
$
1,062,825,141

 
$
15,071,113

 
$
(11,159,280
)
 
$
1,066,736,974


Capital Expenditures
 
 
 
 
 
 
 
June 30, 2015
$
1,072,483

 
$
321,243

 
$
—

 
$
1,393,726

December 31, 2014
$
3,932,268

 
$
352,505

 
$
—

 
$
4,284,773