Bank Reports RE-Linked Loan-Loss Provision

Monroe Bancorp., Bloomington, Ind., has made a special provision to its loan-loss reserve of $2.3 million in connection with loans to a real estate developer who recently filed for bankruptcy, according to the bank holding company.The provision is expected to reduce net income for the year by $1.4 million, or $0.23 per share, Monroe said. "We found the special provision to our loan-loss reserve prudent after a thorough review of the collateral values and other factors in the very complex bankruptcy proceedings associated with this real estate developer," said Mark D. Bradford, president and chief executive officer of Monroe Bancorp. He said it is unlikely that the entire amount of the loans will be collected. Monroe can be found online at http://www.monroebank.com.