Exhibit 99.1

MONARCH FINANCIAL REPORTS ANOTHER YEAR

OF STRONG FINANCIAL PERFORMANCE

Chesapeake, VA - Monarch Financial Holdings , Inc. (Nasdaq: MNRK,MNRKP), the bank holding company for Monarch Bank, reported record annual and fourth quarter profitability, along with annual loan, deposit and asset growth. Annual and fourth quarter 2010 highlights are:

Net income for 2010 was $5,949,391 compared to $4,855,672 for the previous year. The annualized return on average equity (ROE) was 8.59%, and the annualized return on average assets (ROA) was 0.76%. Year-to-date 2010 diluted earnings per share were $0.75, compared to $0.66 the previous year, a 13.6% increase. For the fourth quarter of 2010 net income was $1,764,940, a notable increase compared to $1,223,027 for the same period in 2009. The quarterly annualized return on average equity (ROE) was 9.90 %, and the annualized return on average assets (ROA) was 0.81%. Quarterly basic earnings per share were $0.24 and diluted earnings per share were $0.23, an improvement over the fourth quarter of 2009 when both basic and diluted earnings per share was $0.13.

“I am extremely proud of our performance over the past year as Monarch continues to weather the tough economic environment. We had success in growing core deposits, aggressively managing our asset quality and related credit costs, and in improving our mortgage banking earnings. Year over year we improved our profitability, shareholder return, liquidity, and loan and deposit mix, all while maintaining a strong capital position.” stated Brad Schwartz, Chief Executive Officer. “The past two years have really separated the strong performing banks from the weak, and we plan to push forward in 2011 focused on our smart growth model of growing shareholder returns. In 2010 we returned 40% of our net income to our common and preferred shareholders in the form of dividends, and the total return on our common and preferred stock beat all the major stock indexes.”

Total assets at December 31, 2010 were $825.6 million, up $136 million or 19.7% from $689.6 million one year prior. Total loans held for investment increased $21 million to $559 million. Mortgage loans held for sale increased $96 million to $175 million, up 122% from 2009. Deposits increased $166 million to $706 million, up 30.7% from 2009, which allowed us to reduce our FHLB borrowings by $36 million or 54%. Deposit growth occurred primarily in money market and checking accounts.

“Our focus for 2010 was to improve our core deposit mix while funding our growing mortgage operations, and to be there for our borrowing clients as they worked through the tough economy. We accomplished these goals with tremendous growth in checking and money market accounts, as well as increases in our outstanding loans and client base” stated Neal Crawford, President of Monarch Bank.

The company continues to experience better asset quality performance than its local and national peer group. Non-performing assets represented 1.30% of total assets at year end 2010, down from 1.32% on December 31, 2009. The Company was aggressive in recognizing losses and disposing of non-performing assets throughout the year. There were $8.9 million in net loans charge-offs, with $8.6 million expensed to current earnings to rebuild the allowance for loan losses. The allowance for loan losses now represents 1.62% of total loans held for investment, compared to 1.73% one year earlier.

Average equity to average assets remained strong and was 8.89% as of December 31, 2010, compared to 9.90% one year prior. Total risk-based capital to risk weighted assets, a measurement used by regulators to determine if a banking company is well capitalized, equaled 13.01%, significantly higher than the 10% required to be “Well Capitalized”, the highest rating of capital strength by bank regulatory standards.

In 2010 cash dividends for common stockholders were initiated, with $0.14 paid per common share during the year. Including our preferred shareholders, approximately $2.4 million or 40% of net income was returned to shareholders in the form of dividends throughout the year.

Net interest income increased 37.9% or $8.4 million in 2010 compared to 2009 due to a combination of improved asset yields, earning asset growth, and declines in funding costs. The net interest margin improved to 4.22% for 2010 compared to 3.64% in 2009, with the net interest margin improving to 4.21% for the fourth quarter of 2010 compared to 3.99% for the same period in 2009.

Non-interest income in 2010 grew 50% compared to 2009, primarily driven by increased production at Monarch Mortgage. Non-interest income represented 58% of total revenues in 2010, compared to 52% in 2009. Monarch Mortgage and our related mortgage operations closed $1.6 billion in mortgage loans in 2010, up from $1.1 billion in 2009. Monarch Mortgage is a retail mortgage lender and does not participate in the subprime or wholesale mortgage markets. Non-interest expense grew 46%, with the majority of the increase related to the expansion and increased production of Monarch Mortgage.

Monarch Financial Holdings, Inc. is the one-bank holding company for Monarch Bank. Monarch Bank is a community bank with nine banking offices in Chesapeake, Virginia Beach, and Norfolk, Virginia. OBX Bank, a division of Monarch Bank, operates offices in Kitty Hawk and Nags Head, North Carolina. Services are also provided through over fifty ATMs located in the South Hampton Roads area and the Outer Banks of North Carolina, and “Monarch Online” consumer and business internet banking (monarchbank.com). Monarch Mortgage and our affiliated mortgage companies have over twenty offices with locations in Virginia, North Carolina, Maryland, and South Carolina. Our subsidiaries/ divisions include Monarch Bank, OBX Bank, Monarch Mortgage (secondary mortgage origination), Coastal Home Mortgage, LLC (secondary mortgage origination), Regional Home Mortgage, LLC (secondary mortgage origination), Monarch Home Funding, LLC (secondary mortgage origination), Monarch Investments (investment and insurance solutions), Real Estate Security Agency, LLC (title agency) and Monarch Capital, LLC (commercial mortgage brokerage). The shares of common stock of Monarch Financial Holdings, Inc. are publicly traded on the Nasdaq Capital Market under the symbol “MNRK”, and shares of our convertible preferred stock are publicly traded on the Nasdaq Capital Market under the symbol “MNRKP”.

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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Consolidated Balance Sheets

Monarch Financial Holdings, Inc. and Subsidiaries

(In thousands)

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Consolidated Statements of Income

Monarch Financial Holdings, Inc. and Subsidiaries

Unaudited

Financial Highlights

Monarch Financial Holdings, Inc. and Subsidiaries

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