James Monroe Bancorp Reports 72% Increase in Net Income

James Monroe Bancorp, Inc. (Nasdaq Capital Market:JMBI)
today announced financial results for the third quarter and first nine
months of 2005. Third-quarter net income was $1,210,000 compared with
$705,000 for the third-quarter of 2004 and $970,000 for the second
quarter of 2005. This represents a 72% increase over third quarter of
2004, and a 25% increase over the second quarter of 2005. For the
nine-month period, net income for 2005 was $2,948,000 compared with
$2,145,000 for the first nine-months of 2004, an increase of 37.4%. On
a diluted basis, earnings per share for the third-quarter of 2005 were
$.26 per share compared with $.15 per share for the third-quarter of
2004, representing a 73% increase. The Company earned $.63 per share
for the first nine months of 2005 compared with $.46 per share for the
first nine months of last year, an increase of 36.2%. The net interest
margin improved over a year ago to 3.88%.
   Total assets at September 30, 2005 were $505.7 million, an
increase of $89.0 million or 21.4% over assets of $416.7 million at
September 30, 2004 and a 12.2% increase over 2004 year-end assets of
$450.8 million. Deposits at the end of September 2005 were $423.4
million, an increase of $52.8 million or 14.2% from a year ago. Loans
as of September 30 were $362.1 million, an increase of $131.9 million
or 57.3% from the $230.1 million in loans at September 30, 2004. Loan
demand continues to be strong, with loans increasing $112.1 million
over the first nine months of 2005. Asset quality remains excellent,
with no charge offs for the quarter and a modest $37,000 for the nine
month period. Non-performing loans at September 30, 2005 were $343,000
or .09% of total loans.
   James Monroe Bancorp's President and Chief Executive Officer, John
R. Maxwell, commented, "We are pleased with our growth in loans this
year which increased $112 million since the end of 2004. On October
3rd we completed our third trust preferred offering. The $8 million in
additional capital we raised at a fixed rate will allow us to continue
to support our asset growth in the near term."
   David W. Pijor, James Monroe Bancorp's Chairman stated, "We are
excited about the continued growth of our Bank and the earnings for
the first nine months which are on track with our plans for 2005. In
addition to the excellent growth in loans we experienced this year, we
are also pleased with the results achieved by our decision to enhance
our mortgage operations by the addition of personnel we added last
quarter from Community Bank of Northern Virginia mortgage operations."

   James Monroe Bank, a full-service community bank and a wholly
owned subsidiary of James Monroe Bancorp, opened for business on June
8, 1998, at 3033 Wilson Boulevard in Arlington, Virginia. The Bank now
has branches in Arlington, Annandale, Leesburg, Fairfax City,
Chantilly and Manassas. The Company's common stock is traded on the
Nasdaq Capital Market under the symbol JMBI.

   Forward Looking Statements: This press release contains
forward-looking statements within the meaning of the Securities and
Exchange Act of 1934, as amended, including statements of goals,
intentions, and expectations as to future trends, plans, events or
results of Company operations and policies and regarding general
economic conditions. These statements are based upon current and
anticipated economic conditions, including the effect changes in
economic conditions may have on overall loan quality, changes in net
interest margin due to changes in interest rates, possible loss of key
personnel, need for additional capital should James Monroe experience
faster than anticipated growth, factors which could affect James
Monroe's ability to implement its strategy, changes in regulations and
governmental policies, and other conditions which by their nature, are
not susceptible to accurate forecast, and are subject to significant
uncertainty. Because of these uncertainties and the assumptions on
which this discussion and the forward-looking statements are based,
actual future operations and results in the future may differ
materially from those indicated herein. Readers are cautioned against
placing undue reliance on any such forward-looking statements. The
Company's past results of operations do not necessarily indicate
future results.

   NON-GAAP PRESENTATIONS

   This press release refers to the efficiency ratio, which is
computed by dividing non-interest expense by the sum of net interest
income on a tax equivalent basis using a 34% rate and non-interest
income. This is a financial measure is not recognized under generally
accepted accounting principles, but which we believe provides
investors with important information regarding our operational
efficiency. Comparison of our efficiency ratio with those of other
companies may not be possible because other companies may calculate
the efficiency ratio differently. The Company, in referring to its net
income, is referring to income under generally accepted accounting
principles, or "GAAP".

   James Monroe Bancorp's news releases are available on our website
at www.jamesmonroebank.com.
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                       Condensed Balance Sheet
                     ----------------------------
                      James Monroe Bancorp, Inc.


                                   (Unaudited)   (Unaudited)
                                  September 30, September 30,    %
(Dollars in thousands)                2005          2004       Change
                                  ------------- ------------- --------
Assets
   Cash and due from banks        $     16,675  $     14,831     12.4%
   Interest bearing deposits in
    banks                                  195         1,668   (88.3)%
   Federal funds sold                        -        48,275  (100.0)%
   Securities available for sale,
    at fair value                      119,416       118,053      1.2%
   Loans held for sale                   3,389           549    517.3%
   Loans, net of unearned income       362,049       230,104     57.3%
   Allowance for loan losses            (3,766)       (2,577)    46.1%
                                  ------------- -------------
      Loans, net                       358,283       227,527     57.5%
   Other assets                          7,765         5,810     33.6%
                                  ------------- -------------
Total Assets                      $    505,723  $    416,713     21.4%
                                  ============= =============

Liabilities and Stockholders'
 Equity
   Deposits:
      Noninterest bearing
       deposits                   $    114,547  $    102,054     12.2%
      Interest bearing deposits        308,852       268,565     15.0%
                                  ------------- -------------
   Total deposits                      423,399       370,619     14.2%
   Federal funds purchased              14,974             -      n.m.
   Federal Home Loan Bank                                         n.m.
    advances                            18,000             -
   Trust preferred capital notes         9,279         9,279      0.0%
   Other liabilities                     1,421           643    121.0%
                                  ------------- -------------
   Total liabilities                   467,073       380,541     22.7%
   Total stockholders' equity           38,650        36,172      6.9%
                                  ------------- -------------
Total Liabilities and
 Stockholders' Equity             $    505,723  $    416,713     21.4%
                                  ============= =============



                         Financial Highlights
                         --------------------                         
                      James Monroe Bancorp, Inc.

                                                (Unaudited)
                                      Three Months Ended September 30,
                                      --------------------------------
(Dollars in thousands except share
 data)                                   2005        2004    % Change
                                      ----------- ---------- ---------
RESULTS OF OPERATIONS:
Total interest income                 $    7,214  $   4,426      63.0%
Total interest expense                     2,508      1,237     102.7%
  Net interest income                      4,706      3,189      47.6%
Provision for loan losses                    234        273     -14.3%
Gain on sale of securities                    (5)         -       n.m.
Gain on sale of loans                        280         77     263.6%
Noninterest income - other                   234        154      51.9%
Noninterest expense                        3,142      2,075      51.4%
  Income before taxes                      1,839      1,072      71.5%
Net income                                 1,210        705      71.6%

PER SHARE DATA:
Earnings per share, basic             $     0.27  $    0.16      69.9%
Earnings per share, diluted           $     0.26  $    0.15      70.4%
Weighted average shares
 outstanding - basic                   4,451,945  4,437,527       0.3%
             - diluted                 4,734,699  4,678,336       1.2%
Book value per share (at period-end)  $     8.67  $    8.15       6.4%
Shares outstanding (at period-end)     4,458,422  4,437,869       0.5%

PERFORMANCE RATIOS (annualized):
Return on average assets                    0.96%      0.76%
Return on average equity                   12.49%      7.89%
Net interest margin                         3.88%      3.67%
Efficiency Ratio                           60.25%     62.07%

OTHER RATIOS:
Allowance for loan losses to total
 loans                                      1.04%      1.12%
Equity to assets                            7.64%      8.68%
Non-performing loans:
  Amount                              $      343  $     401
  Percent of total loans                    0.09%      0.17%
Charged-off loans:
  Net amount                          $        -  $       -
  Percent of average loans                  0.00%      0.00%
Risk-adjusted capital ratios:
  Leverage ratio                             9.7%      12.3%
  Tier I                                    13.0%      17.4%
  Total                                     14.0%      18.3%

AVERAGE BALANCES:
Assets                                $  506,669  $ 366,990      38.1%
Earning assets                           486,874    346,130      40.7%
Loans                                    343,830    216,656      58.7%
Deposits                                 444,050    321,436      38.1%
Stockholders' equity                      38,849     35,552       9.3%

                                                (Unaudited)
                                      Nine Months Ended September 30,
                                      --------------------------------
(Dollars in thousands except share
 data)                                   2005        2004    % Change
                                      ----------- ---------- ---------
RESULTS OF OPERATIONS:
Total interest income                 $   19,528  $  12,129      61.0%
Total interest expense                     6,453      3,201     101.6%
  Net interest income                     13,075      8,928      46.4%
Provision for loan losses                  1,013        766      32.2%
Gain on sale of securities                    13         54     -75.9%
Gain on sale of loans                        636        248     156.5%
Noninterest income - other                   595        519      14.6%
Noninterest expense                        8,824      5,713      54.5%
  Income before taxes                      4,482      3,270      37.1%
Net income                                 2,948      2,145      37.4%

PER SHARE DATA:
Earnings per share, basic             $     0.66  $    0.48      38.1%
Earnings per share, diluted           $     0.63  $    0.46      36.2%
Weighted average shares
 outstanding - basic                   4,448,526  4,434,214       0.3%
             - diluted                 4,704,989  4,672,530       0.7%
Book value per share (at period-end)  $     8.67  $    8.15       6.4%
Shares outstanding (at period-end)     4,458,422  4,437,869       0.5%

PERFORMANCE RATIOS (annualized):
Return on average assets                    0.82%      0.85%
Return on average equity                   10.40%      8.14%
Net interest margin                         3.80%      3.78%
Efficiency Ratio                           61.62%     58.60%

OTHER RATIOS:
Allowance for loan losses to total
 loans                                      1.04%      1.12%
Equity to assets                            7.64%      8.68%
Non-performing loans:
  Amount                              $      343  $     401
  Percent of total loans                    0.09%      0.17%
Charged-off loans:
  Net amount                          $       37  $     143
  Percent of average loans                  0.01%      0.07%
Risk-adjusted capital ratios:
  Leverage ratio                             9.7%      12.3%
  Tier I                                    13.0%      17.4%
  Total                                     14.0%      18.3%

AVERAGE BALANCES:
Assets                                $  480,176  $ 335,206      43.2%
Earning assets                           459,771    315,455      45.7%
Loans                                    308,467    197,572      56.1%
Deposits                                 421,610    286,223      47.3%
Stockholders' equity                      37,882     35,178       7.7%
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