UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 29, 2010
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MONROE BANCORP
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(Exact Name of Registrant as Specified in Its Charter)
INDIANA
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(State or Other Jurisdiction of Incorporation)
000-31951 35-1594017
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(Commission File Number) (IRS Employer Identification No.)
210 East Kirkwood Avenue
Bloomington, IN 47408
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(Address of Principal Executive Offices) (Zip Code)
(812) 336-0201
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
Effective April 29, 2010, the Company's wholly-owned subsidiary, Monroe Bank
(the "Bank"), entered into a memorandum of understanding ("MOU") with the
Federal Deposit Insurance Corporation (the "FDIC") and the Indiana Department of
Financial Institutions (the "DFI"). The MOU is an informal administrative
agreement in which the Bank has agreed to take various actions and comply with
certain requirements to facilitate improvement in its financial condition.
In accordance with the MOU, the Bank agreed, among other things, to (a) maintain
a Leverage Capital Ratio of not less than 8.00% (the Bank's ratio was 8.65% at
December 31, 2009 and 8.58% at March 31, 2010) and a Total Risk-Based Capital
Ratio of not less than 12.00% (the Bank's ratio was 13.33% at December 31, 2009
and 13.29% at March 31, 2010); (b) refrain from paying cash dividends without
prior regulatory approval; and (c) develop and implement plans to reduce the
amounts of its assets classified "Substandard" or "Doubtful" in its most recent
FDIC examination.
The MOU will remain in effect until modified or terminated by the FDIC and the
DFI. We do not expect the actions called for by the MOU to change our ongoing
efforts to improve the performance of the Bank by reducing non-performing assets
and increasing earnings in any material respect. The Board of Directors and
management of the Bank have taken various actions to comply with the MOU, and
will continue to take all actions necessary for continued compliance.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DATE: May 4, 2010
MONROE BANCORP
/s/ Mark D. Bradford
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Mark D. Bradford
President, Chief Executive Office
