BLOOMINGTON, IN – Monroe Bancorp announced net income for the six months ended June 30, 2001 of $2,951,000, resulting in earnings per common share of $0.48, an increase of 13.4 percent over the earnings for the same period in 2000. For the six months ended June 30, 2000, Monroe Bancorp achieved net income of $2,603,000 or $0.42 per common share.

"We are extremely pleased with our solid performance," said President and Chief Executive Officer Mark D. Bradford. "We continue to focus on the basics in our core market, such as: increasing noninterest income, improving operating efficiency and keeping credit quality strong. Meanwhile, we also continually work to provide highly personalized service to our customers, and to keep our communities strong through financial and volunteer support."

The Bank achieved this growth in earnings while laying the foundation for expansion into Hendricks County. With several employees for the region hired and in training during the second quarter, including Regional Sales Manager Bryan Kain, the Bank has prepared well for the opening of the Avon Banking Center, expected in September. An additional banking center in Plainfield will open shortly thereafter.

The Company's total assets as of June 30, 2001 were $455,648,000, which represents a 2.5 percent increase over the June 30, 2000 total of $444,371,000. Total net loans of $319,935,000 at June 30, 2001 increased 11.2 percent over the June 30, 2000 total of $287,697,000.

Mortgage sales in the secondary market resulted in $230,000 of fee income for the Company for the first six months of 2001, compared to $91,000 in the first half of 2000. Additionally, the Company's Financial Management Services Division and investment sales programs have generated $745,000 in commission income during the first half of 2001, which represents a 3.1 percent increase over the amount recognized in the first half of 2000.

The Company's return on equity climbed to 15.31 percent for the first six months of 2001 from 14.85 percent for the same period of 2000, and return on assets was 1.35 percent compared to 1.23 percent last year. Dividends to shareholders increased 10.0 percent over dividends paid in the second quarter of 2000.

Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with 14 ATMs and 14 banking offices in Monroe, Jackson and Lawrence 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 19,000 retail and commercial customers. The Company's common stock is traded on the Nasdaq National Stock Market under the symbol MROE.