BLOOMINGTON, IN - The Board of Directors of Monroe Bancorp is pleased to announce the declaration 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 third quarter of 1999. The dividend will be paid September 29, 2000 to shareholders of record at the close of business on September 21, 2000.

"I am extremely proud of our outstanding financial results in 2000," said Mark D. Bradford, President and Chief Executive Officer, "because we are able to succeed while keeping our commitment to the communities we serve." In July, Bradford lead a Company-wide initiative to support merchants whose local businesses were dramatically and detrimentally affected by the "Big Dig," a Bloomington reconstruction project of a 100-year old storm water system. "We will continue to develop initiatives that strengthen our communities and ultimately benefit our shareholders, customers and employees."

For the eight months ended August 31, 2000, Monroe Bancorp’s net income increased to $3,533,000. This represents a 13% increase over the Company’s net income for the same period in 1999. In addition, the Company’s net loans and total assets grew 15% and 9%, respectively.

Monroe Bancorp is an independently owned holding company headquartered in Bloomington, Indiana, with Monroe Bank as its wholly owned subsidiary. Established in 1892, Monroe County 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.