BLOOMINGTON, IN - The Board of Directors of Monroe Bancorp is pleased to announce today the payment of a quarterly dividend of $0.10 per common share. This represents a 25% increase over the $0.08 per share dividend paid in the first quarter of 1999. The dividend will be paid March 31, 2000 to shareholders of record at the close of business on March 21, 2000.

"The Company has performed well in this first quarter," said Mark D. Bradford, President and Chief Executive Officer. "The increased dividend reflects the intent of the Board of Directors to pass along a portion of that improved performance to shareholders."

Monroe Bancorp also announced today that its Board of Directors directed management to commence actions designed to cause the common stock of the Company to be included in the National Association of Securities Dealers automated quotation system ("NASDAQ").

For the two months ended February 29, 2000, Monroe Bancorp’s net income increased to $862,000. This represents a 12.4% increase over the Company’s net income for the same period in 1999. In addition, the Company’s total assets grew 11.4%, and net loans increased 13.3% over the February 28, 1999 amounts.

"We are encouraged by the Company’s improved performance, but still not satisfied," said Mr. Bradford. "We've done well in developing new and ever more convenient ways for our customers to access our services, like opening our third retirement community banking center last month," Mr. Bradford continued, "but we still have more to do." Bradford said the Bank would continue its focus on providing greater financial services options to its customers. "We will leverage our best assets – the technologies and physical facilities we developed in 1999 and the experienced and dedicated personnel we've been known for – to become known as the premier full-service financial institution, offering not only convenient banking, but also life and health insurance, trust, investment and financial planning services."

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.