BLOOMINGTON, IN - The Board of Directors of Monroe Bancorp, the local holding company of Monroe Bank, is pleased to announce the payment of a quarterly dividend of $0.11 per common share. This represents a 10% increase over the $0.10 per share dividend paid in the first quarter of 2000. The dividend will be paid March 30, 2001 to shareholders of record at the close of business on March 16, 2001.

"The Company continues to perform well," said Mark D. Bradford, President and Chief Executive Officer. "We are driven by our focus on strong business development efforts, loan and deposit growth, investment sales and increased efficiency." Bradford continued, "the 10% increase to the Company's dividend is evidence of our commitment to increase the return that our shareholders receive from their investment in Monroe Bancorp."

For the two months ended February 28, 2001, Monroe Bancorp’s net income increased to $956,204. This represents a 10.9% increase over the Company’s net income for the same period in 2000. In addition, the Company’s total assets grew 3.5% and net loans grew 7.5% over the February 29, 2000 amounts.

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 banking centers located in Monroe, Lawrence and Jackson counties. The Bank serves more than 19,000 retail and commercial customers.

The Company's Annual Meeting of Shareholders will be held at 10 a.m. at the Bloomington Convention Center on Thursday, April 26, 2001.