BLOOMINGTON, IN — At the Monroe Bancorp Annual Shareholders Meeting held yesterday at the Bloomington Convention Center, President and Chief Executive Officer Mark D. Bradford reported that earnings for the two months ended February 29, 2000 were more than 12% greater than the same period in 1999. Mr. Bradford cited several strategic initiatives begun in 1999 as reasons for the strong earnings growth for Monroe Bancorp, the independently owned and locally headquartered holding company of Monroe County Bank.

"While earnings were at an all time high, we are not satisfied with the rate of earnings growth in 1999," said Mr. Bradford, "but the strategies we put in place then are showing great results now." Earnings for the Company through February 2000 reached $862,000, 12.4% higher than income earned through the same period in 1999. The Company's net loans as of February 29, 2000 are 13.3% higher than the February 28, 1999 amount and now exceed $274 million. Monroe Bancorp's total assets for the same period increased 11.4% to reach $419 million.

Mr. Bradford said that the Company's strong performance since year end is a result of strategic actions begun in 1999. Strategies to reduce the reliance on net interest income were developed in response to the market's tightening interest margins. The result has been a marked increase in income generated from fee-driven businesses, such as Monroe Bank's Financial Management Services Division. In addition, Mr. Bradford cited the Company's strategy to increase customer convenience through technology and improved product delivery systems. Twenty-four hour access, already available through an ATM network and telephone banking, was enhanced by the launching of the Bank's Internet component in August 1999.

The Company implemented new ways to bring products and services directly to customers, opening in 1999 two new banking centers inside retirement centers. This February, a third such banking center opened at the Meadowood Retirement Community. With low costs needed to establish and operate, the banking centers represent the height of efficiency in delivery systems.

For 1999, Mr. Bradford reported earnings of $4.723 million, an increase of 1.68% over 1998. The Company ended the year with a record $417 million in assets, an 11% increase over the year-ended 1998, and total loans grew more than 12% over 1998 to $271 million.

Monroe Bancorp is an independently owned holding company headquartered in Bloomington, Indiana, with Monroe Bank as its wholly owned subsidiary. 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.