BLOOMINGTON, IN – Monroe Bancorp announced net income for the six months ended June 30, 2000 of $2,603,000, or $0.42 per common share. This is a 14.4% increase over net income of the same period in 1999 for the independently owned holding company headquartered here.

"We positioned ourselves for this growth by implementing aggressive initiatives in 1999 and early in this year," said Mark D. Bradford, President and Chief Executive Officer of Monroe Bank, the Company's wholly owned subsidiary. "We introduced a banking center-based investment sales program, developed our Financial Management Services division, zeroed in on reducing inefficiencies and reining in expenses and we focused on our commitment to provide the best of financial services on the most personal level in all of our lines of business."

Innovative approaches to supporting the community contribute to the Company's growth as well, according to Bradford. "Many of our customers tell us that they have chosen Monroe Bank because of our commitment to our community."

Recently, the Bank provided $25 shopping money to each of its employees to spend at Kirkwood area businesses that are struggling to survive amidst the sewer reconstruction project. Later this year, the Bank will hold its fourth annual "Day of Caring" during which most of its banking centers will close for half a day to give employees time to perform volunteer work together.

"It is gratifying when doing something you believe in turns out to be a top selling point," Bradford said.

The Company's total assets for the six months ended June 30, 2000 were $444,371,000, a 12.7% increase over the June 30, 1999 amount. Total net loans reached $287,697,000 at June 30, 2000, a 15.7% increase over the same period in 1999.

An emphasis on business lines that generate fee income has contributed to the strong earnings of the Company. Commission income from investment sales reached $332,000 at the end of the second quarter. A significant portion of this income comes from a banking center-based sales program that was introduced in the fourth quarter of 1999. Income from the Trust and Asset Management department increased 36.5% over the same period in 1999 to $391,000.

"These investment and asset management businesses, part of our Financial Management Services division, are key to the Bank's ability to reduce dependence on net interest income," said Bradford. "The banking center investment sales program in particular is building momentum and should continue to produce strong growth in fee income."

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