JMBI James Monroe Bancorp (MM)

James Monroe Bancorp, Inc. (Nasdaq:JMBI) announced today that, on October 3, 2005, it completed a private placement of an aggregate of $8 million of trust preferred securities. The securities bear an initial interest rate of 6.253% until September 15, 2010, at which time the rate adjusts quarterly to 155 basis points over three month LIBOR. The securities are subject to redemption on December 15, 2035, and are redeemable at par beginning December 15, 2010. The proceeds of the issuance will be used by the Company for general corporate purposes, including contribution to its subsidiary, James Monroe Bank. David W. Pijor, James Monroe Bancorp's Chairman, commented, "This is our third trust preferred issue. We have experienced significant growth since our last placement and these securities, which qualify as capital for regulatory purposes, play an important role in our overall capital plan and will help support current and future expansion of the franchise without diluting shareholders." The trust preferred securities have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the trust preferred securities. 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 has offices 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.