BLOOMINGTON, IN –Monroe Bancorp announced today net income for the first quarter ended March 31, 2001 of $1,447,000, or $0.24 per common share. This is a 12.9 percent increase over first quarter 2000 net income for the local, independently owned company.

"We are beginning to reap the rewards of strategies we implemented throughout 2000," said Mark D. Bradford, President and Chief Executive Officer of Monroe Bank, Monroe Bancorp's wholly owned subsidiary. "In our upcoming April 26 Annual Meeting of Shareholders, we will discuss the successes of our core lending business, the impressive results of our new product lines, as well as the back-office efficiencies we worked hard to put into practice. I'm proud of the results we've achieved for our shareholders."

The Company's return on equity climbed to 15.30 percent for the first quarter of 2001 from 14.77 percent for the first quarter of 2000. First quarter 2001 dividends to shareholders increased 10.0 percent over dividends paid in the first quarter of 2000.

The Company's total assets as of March 31, 2001 were $441,782,000. Total net loans of $301,329,000 at March 31, 2001 were up 10.4 percent from March 31, 2000.

Monroe Bancorp recently submitted an application with Nasdaq to have the Company's stock (ticker symbol: MROE) listed on the Nasdaq National Stock Market. Bradford hopes to receive approval from Nasdaq in early May, and feels that the additional liquidity and analyst coverage will be beneficial to the company.

"Our strong financial performance, our tenacity to find strategies to better serve our customers, and our history of a determined focus on supporting the communities in which we do business all combine to create a very good story," said Bradford. "Our listing on the Nasdaq exchange will bring this story to a wider audience of investors, and we hope will ultimately increase shareholder value."

At its Annual Meeting of Shareholders on Thursday, April 26, 2001, the Company is expected to announce plans for expansion into communities in Hendricks County as well as outline strategies for enhancing the commitment to its current community banking centers in Monroe, Jackson and Lawrence counties. The meeting will be held in downtown Bloomington, Indiana at the Bloomington/Monroe County Convention Center, 302 S. College Avenue, at 10:00 a.m.

Established in Bloomington in 1892, Monroe Bank offers a full range of financial, trust and investment services through banking centers located in Monroe, Lawrence and Jackson counties. The Bank serves more than 19,000 retail and commercial customers.