Columbia Bancorp Earnings Up 16%.

THE DALLES, Ore.--(BUSINESS WIRE)--July 10, 1998--Columbia Bancorp (OTC BB:CBBO) reported second quarter earnings of $1,213,440 or $.34 per diluted share, a 15.6% increase over the $1,049,692 or $.30 per diluted share earned during the same period a year ago.

Columbia Bancorp earned $3,152,948 in net interest income after loan loss provision during the three months ended June 30, up 13.2% from $2,785,948 earned in the second quarter of 1997. Noninterest income for the quarter grew 119.9% to $1,212,805, up from $551,602. Operating expenses increased to $2,493,423, up 40.2%, as compared to $1,778,100 in the like quarter of 1997.

Through the first six months of the year, Columbia Bancorp reported net income of $2,219,317, or $.62 per diluted share, a gain of 25.9% from $1,762,094, or $.51 per diluted share for the same period of 1997. This net income generated a 1.87% return on average assets (ROAA) and a 20.12% return on average equity (ROAE), up from a 1.70% ROAA and a 18.41% ROAE for the 1997 period. All per share data have been adjusted to reflect the 3-for-2 stock split on March 31, 1998 and all stock dividends and splits previously reported.

"As a community bank, our ability to provide one-on-one individualized service and maintain, at the local level, the authority and ability to respond to the community's needs has allowed us to realize continued financial success and increased value to our shareholders," said Terry L. Cochran, President and Chief Executive Officer. He also noted that $.10 dividend announced June 26 will be paid on August 1 to shareholders of record July 15.

Columbia Bancorp's total assets as of June 30 were $253.1 million, a 14.8% gain from $220.4 million at June 30, 1997. Deposits totaled $218.4 million, up 12.7% from the $193.8 million on June 30, 1997. Net loans grew 21.4% from $142.4 million at June 30, 1997 to $173.0 million, and represented 68.3% of Columbia Bancorp's total assets on June 30, 1998.

Columbia Bancorp, headquartered in The Dalles, Oregon is the bank holding company that owns Columbia River Bank. Columbia River Bank is an Oregon State-chartered, federally-insured commercial bank with branches in The Dalles and Hood River, Oregon. Columbia River Bank operates as Juniper Banking Company in Madras, Redmond, and Bend, Oregon; and as Klickitat Valley Bank in Goldendale and White Salmon, Washington. The bank also provides mortgage lending through Columbia Mortgage Group, and brokerage service through its affiliation with PrimeVest.

CONTACT: Columbia Bancorp

Neal McLaughlin, 541/298-6612

FAX: [phone]