BLOOMINGTON, IN – Monroe Bancorp (NASDAQ:MROE) announced today that its Board of Directors has declared a quarterly dividend of $0.11 per share on the Company's Common Stock. This represents a 10% increase over the $0.10 per share dividend paid in the third quarter of 2000. The dividend will be paid September 28, 2001 to shareholders of record at the close of business on September 17, 2001.

Monroe Bancorp's net income for the eight months ended August 31, 2001 was $3,906,000 or $0.64 per share. This represents an increase of 10.6% over the Company's net income for the same period in 2000. The Company earned $3,533,000 or $0.58 per share for the eight months ended August 31, 2000.

"We define our success not only by the level of growth we achieve, but by the means through which we achieve it," said Mark D. Bradford, President and Chief Executive Officer.

"By providing outstanding service to our customers, and maintaining an unwavering commitment to our communities, we have built strong and lasting relationships," said Mr. Bradford. "Achieving growth by treating our customers well is the highest success, and we are proud to share this success with our shareholders through this dividend."

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 in Indiana. Additionally, two new offices in Hendricks County, Indiana open this year. The Bank serves more than 19,000 retail and commercial customers. Monroe Bancorp stock is traded on the NASDAQ National Market System under the ticker symbol MROE.