Monroe Bancorp (NASDAQ:MROE) announced today that its Board of Directors recently declared a quarterly dividend of $0.13 per share on the Company's Common Stock. The dividend is payable September 30, 2004 to shareholders of record on September 16, 2004. This quarterly dividend represents an 8.3% increase over the $0.12 per share dividend paid in the third quarter of 2003, and is unchanged from the dividend paid on June 30, 2004.

This is the first declared dividend since the Company adopted its Dividend Reinvestment Plan (DRIP) in July. The plan allows for the automatic reinvestment of cash dividends in common stock of the Company. Additionally, the plan allows shareholders to invest up to $1,000 each month in Monroe Bancorp stock. Approximately 7.7% of the outstanding shares currently participate in the DRIP through the Company’s transfer agent, and others participate through brokerage-sponsored reinvestment plans.

Monroe Bancorp is an independently owned holding company headquartered in Bloomington, Indiana, with assets over $600 million and 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, Jackson and Hendricks counties in Indiana. The Bank serves more than 20,000 retail and commercial customers. Monroe Bancorp stock is traded on the NASDAQ National Market System under the ticker symbol MROE.