BLOOMINGTON, Ind., April 19—Monroe Bancorp, (NASDAQ: MROE), the independent Bloomington-based holding company for Monroe Bank, reported net income for the quarter ended March 31, 2002 of $1,499,000 or $0.25 per common share, compared to $1,447,000 and $0.24 per common share for the same period in 2001, an increase of 3.6 percent.
The year-over-year comparison is impacted by the Company’s entry into Hendricks County during the second half of 2001. The two Hendricks County banking centers (opened in September 2001 and October 2001) are ahead of plan with $26,673,000 in deposits and $21,207,000 in total loans as of March 31, 2002. The banking centers posted a better-than-plan net loss of $90,000 in the first quarter of 2002, which compares favorably to the net loss of $205,000 posted in the fourth quarter of 2001. Net income growth for the Company, excluding the Hendricks County loss, was 9.8 percent for the first quarter of 2002.

“We have achieved significant name recognition in a relatively short time period, and this accomplishment has led to our rapid loan and deposit growth," said President and Chief Executive Officer Mark D. Bradford. "Our success speaks well of our dedicated staff and their experience in the market, and the Company is extremely pleased with the progress of our Avon and Plainfield banking centers.”

The Company had several other significant events in the first quarter:

• The Bank formed an investment holding company (MB Portfolio Management, Inc.) in Wilmington, Delaware in late March, where the Bank’s $85,000,000 investment portfolio will be moved. The investment holding company in turn hired Delaware Trust Capital Management, Inc. to manage the portfolio. Management expects the net first-year benefit of these actions to be approximately $112,000, or $.02 per share.
  
• On February 9, 2002, the Bank celebrated the grand opening of a new Highland Village banking center on the rapidly growing west side of Bloomington. The new banking center provides significantly more sales and customer service space than the 36-year-old banking center it replaced. The new office has attracted $2,321,000 of deposit growth since the end of January, increasing its total deposits to $42,880,000 as of March 31, 2002.
  
• The Bank hired and began training personnel to prepare for the May 1, 2002 opening of a third Hendricks County banking center. This Brownsburg office will enhance the Company's ability to attract and serve customers in the Hendricks County area.
  
• Two new senior executives joined the Bank. Doug Bennett, Senior Vice President for Retail Services and Marketing, filled a newly created position intended to improve the sales performance in the Bank's banking centers. Also, Bob Krupka joined the Bank as Senior Vice President for Lending. Mr. Krupka replaces the Bank's previous senior lender, Bob Hamilton, who retired in January after serving the Bank for 18 years.

" Our two new executives bring considerable experience to our management team,” said Mr. Bradford. “The Bank will benefit from their talent and determination as we continue to grow in all of our markets.”

Adding new talent, opening new banking centers, and the creation of the investment holding company are all part of the Bank’s ongoing efforts to create shareholder value, according to Mr. Bradford.

" Our goal is to achieve double-digit earnings growth,” he said. “Each of these initiatives is necessary to propel us to that goal.”

Total assets for the Company as of March 31, 2002 were $503,775,000, compared to $441,782,000 at March 31, 2001, a 14.0 percent increase. Return on equity (ROE) for the quarter ended March 31, 2002 was 14.77 percent, up from the ROE for 2001 of 14.52 percent. First quarter 2002 dividends to shareholders increased 9.1 percent over dividends paid in the first quarter of 2001.

Total deposits for the Company, which holds the number one spot in deposit share in its primary market (Monroe County), grew 7.7 percent from March 31, 2001 to March 31, 2002 to reach $382,509,000. Total loans of $376,881,000 at March 31, 2002 increased 23.5 percent over the March 31, 2001 total of $305,288,000. Meanwhile, the Bank’s credit quality remained strong. Total non-performing assets and 90-day past due loans totaled $3,428,000 (0.68 percent of total assets) as of March 31, 2002 compared to $4,383,000 (0.99 percent of total assets) as of March 31, 2001.

The Company’s Annual Meeting of Shareholders will be held on Thursday, April 25, 2002, in downtown Bloomington, Indiana at the Bloomington/Monroe County Convention Center, 302 S. College Avenue, at 10:00 a.m.

Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with offices in Monroe, Jackson, Lawrence and Hendricks counties. Its wholly owned subsidiary, Monroe Bank, was established in Bloomington, Indiana in 1892, and offers a full range of financial, trust and investment services to its more than 20,000 retail and commercial customers. The Company's common stock is traded on the NASDAQÒ National Stock Market under the symbol MROE.

See attachment for additional financial information. For further information, contact: Mark D. Bradford, President and Chief Executive Officer.

Forward-Looking Statements
This release contains forward-looking statements about the Company which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This release contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may" or words of similar meaning. These forward-looking statements, by their nature, are subject to risks and uncertainties. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the markets in which the Company does business, are less favorable than expected; (5) legislative or regulatory changes adversely affect the business of the Company; and (6) changes in real estate values or the real estate markets. Further information on other factors which could affect the financial results of the Company are included in the Company's filings with the Securities and Exchange Commission.