BLOOMINGTON, IN — Monroe Bancorp (NASDAQ: MROE) announced that its Board of Directors recently declared a quarterly dividend of $0.12 per share on the Company's Common Stock. The $0.12 dividend is an increase over the $0.1182 dividend (adjusted for the 10% stock dividend paid on November 17, 2005) paid on September 30, 2005. The dividend is payable December 30, 2005 to shareholders of record on December 16, 2005. Total dividends paid in 2005 will be $0.4745 per share compared to $0.4727 per share in 2004 (both annual dividends have been adjusted to reflect the 10% stock dividend paid on November 17, 2005).

“This marks the seventeenth consecutive year of increased dividends for our shareholders,” said Mark D. Bradford, President and Chief Executive Officer. “We believe our history of increasing our annual dividend demonstrates the focus of Monroe Bancorp’s Board and management on our shareholders’ interests.”

Monroe Bancorp, headquartered in Bloomington, Indiana, is an Indiana bank holding company with assets over $675 million and with Monroe Bank as its wholly owned subsidiary. Monroe Bank was established in Bloomington in 1892 and offers individuals and businesses a full range of financial, trust and investment services through its locations in Central and South Central Indiana. The Company's common stock is traded on the NASDAQ National Stock Market under the symbol MROE.