COLUMBIA, Md., April 14 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank, today reported net income of $1,073,871
for the quarter ended March 31, 1998, representing a 10.5% increase over the
$971,554 reported for the same period in 1997. Diluted net income per share
increased from $.43 for the first quarter 1997 to $.46 for 1998.  Total assets
at March 31, 1998 were $391.5 million, representing a 19.0% increase since
March 31, 1997.
    The initial positive impact of the Company's aggressive expansion of core
business units in 1997 was apparent as noninterest income increased 73.0% and
deposits grew 15.1%, as compared to the first quarter of 1997. The cost of
this expansion is largely responsible for the 32.7% increase in noninterest
expense, as compared to the same quarter last year. During the quarter, growth
in loans outstanding slowed to 8.8% reflecting intensified competitive
pressure and management's decision to maintain conservative underwriting
standards in what is becoming a somewhat over-heated market. Other operating
trends remained unchanged from those reported at year end 1997.
    Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank operates thirteen banking offices and provides a full range of
financial services to consumers and businesses.

                                 COLUMBIA BANCORP
                               Financial Highlights

                                          As of and Three Months Ended
                                                     March 31,
                                        1998          1997        % Change
                                                   (unaudited)
    SUMMARY OF OPERATING RESULTS:
      Net interest income           $4,914,839     4,352,640        12.9%
      Provision for credit losses       84,000       210,000       -60.0%
      Noninterest income               973,796       562,991        73.0%
      Noninterest expense            4,134,764     3,114,977        32.7%
      Income tax expense               596,000       619,100        -3.7%
      Net income                     1,073,871       971,554        10.5%

    PER COMMON SHARE DATA:
      Net income:
        Basic                            $0.49          0.45         8.9%
        Diluted                           0.46          0.43         7.0%
      Average number of shares
       outstanding:
        Basic                        2,211,395     2,148,218         2.9%
        Diluted                      2,313,005     2,278,284         1.5%
    Tangible book value,
     at period end                      $15.84         14.62         8.3%
    Cash dividends declared              $0.14          0.12        16.7%
    PERIOD END DATA:
      Assets                      $391,518,297   329,019,514        19.0%
      Deposits                     321,164,799   279,029,419        15.1%
      Loans, net of unearned
       income                      264,672,134   243,308,518         8.8%
      Investment securities
       and securities
       available-for-sale           70,370,019    50,397,324        39.6%
      Stockholders' equity          35,331,920    31,694,552        11.5%

    PERFORMANCE RATIOS:
      Return on average assets            1.20%         1.30%
      Return on average
       stockholders' equity              13.08%        13.15%
      Net interest margin                 5.71%         6.05%

    CAPITAL AND ASSET QUALITY:
      Period-end capital to period-end
       risk-weighted assets:
        Tier 1                           11.52%        12.01%
        Total                            12.72%        13.26%
      Period-end Tier 1
       capital leverage ratio             9.21%         9.88%
      Allowance for credit losses
       to loans, net of unearned income,
       at period-end                      1.39%         1.39%
      Nonperforming and past-due
       loans to total loans, net
       of unearned income,
       at period-end                      0.61%         1.64%
      Nonperforming assets
       and past-due loans
       to total assets,
       at period-end                      1.54%         1.64%
      Annualized net charge-offs
       to average loans, net
       of unearned income                 0.05%         0.19%

    AVERAGE BALANCES:
      Federal funds sold            $2,600,288     3,417,564        -23.9%*
    Investment securities and
     securities available-for-sale  67,878,915    47,378,889        43.3%
    Loans, net of unearned
     income (a)                    278,726,412   239,885,713        16.2%
    Total earning assets           349,205,615   291,936,757        19.6%
    Total assets                   381,966,451   318,172,156        20.1%
    Interest-bearing deposits      260,470,765   218,927,050        19.0%
    Short-term borrowings           31,067,837    23,327,086         33.2%*
    Stockholders' equity            34,934,780    31,400,655        11.3%

    (a) Includes residential mortgages originated for sale
     * Variances caused by large daily fluctuations in the balance due to the
nature of the account.

                                 COLUMBIA BANCORP
                       Consolidated Statements of Condition

                                           March 31,          December 31,
                                    1998              1997        1997
                                          (unaudited)
        ASSETS
    Cash and due from banks     $16,648,181      16,479,274    13,497,010
    Federal funds sold            4,947,848       4,172,113     2,013,538
    Investment securities        69,037,369      47,128,532    64,970,889
    Securities available-for-sale 1,332,650       3,268,792     1,674,464
    Residential mortgages
     originated for sale         15,171,035       1,546,315     6,557,090

    Loans, net of unearned income264,672,134    243,308,518   265,193,513
      Less: allowance for
       credit losses              3,678,044       3,388,024     3,631,664
        Loans, net              260,994,090     239,920,494   261,561,849
    Other real estate owned       4,403,745       1,389,680     4,621,873
    Property and equipment, net   9,001,121       8,140,939     9,125,396
    Prepaid expenses
     and other assets             9,982,258       6,973,375     9,429,002

        TOTAL ASSETS           $391,518,297     329,019,514   373,451,111


        LIABILITIES
    Deposits:
      Noninterest-bearing       $54,248,390      49,636,717    56,584,646
      Interest-bearing          266,916,409     229,392,702   256,772,797
        Total deposits          321,164,799     279,029,419   313,357,443
    Short-term borrowings        32,508,015      17,149,839    23,725,237
    Accrued expenses and other
     liabilities                  2,513,563       1,145,704     1,983,617
        TOTAL LIABILITIES       356,186,377     297,324,962   339,066,297

    STOCKHOLDERS' EQUITY
    Common stock, $.01 par value
     per share; authorized
     9,550,000 shares; outstanding
     2,220,254, 2,148,345 and
     2,200,165 shares, respectively  22,203          21,483        22,002
    Additional paid-in capital   23,100,986      22,601,674    22,918,578
    Retained earnings            12,208,387       9,077,143    11,445,351
    Accumulated other
     comprehensive income               344         (5,748)       (1,117)
       TOTAL STOCKHOLDERS'
        EQUITY                   35,331,920      31,694,552    34,384,814

      TOTAL LIABILITIES AND
       STOCKHOLDERS' EQUITY    $391,518,297     329,019,514   373,451,111

                                 COLUMBIA BANCORP
                        Consolidated Statements of Income

                                               Three Months Ended
                                                   March 31,
                                           1998                1997
                                                  (unaudited)
    Interest income:
      Interest and fees
       on loans                         $7,022,518           6,174,766
      Interest and dividends
       on investments                      995,616             662,408
      Interest on federal
       funds sold                           31,253              51,085

        TOTAL INTEREST INCOME            8,049,387           6,888,259

    Interest expense:
      Interest on deposits               2,730,001           2,243,115
      Interest on short-term
       borrowings                          404,547             292,504

        TOTAL INTEREST EXPENSE           3,134,548           2,535,619
    NET INTEREST INCOME                  4,914,839           4,352,640
    Provision for credit losses             84,000             210,000
    NET INTEREST INCOME AFTER
      PROVISION FOR CREDIT
      LOSSES                             4,830,839           4,142,640

    Noninterest income:
      Gains on sales of
       mortgage loans                      475,298             125,488
      Fees charged for services            294,438             275,903
      Other                                204,060             161,600
        TOTAL NONINTEREST INCOME           973,796             562,991

    Noninterest expense:
      Salaries and employee
       benefits                          2,294,113           1,602,872
      Occupancy, net                       479,358             320,749
      Equipment                            286,384             236,294
      Marketing                            167,752             159,672
      Data processing                      180,693             132,729
      Cash management services              71,470              91,450
      Professional fees                     80,850              51,238
      Deposit insurance and
       assessments                          30,570              25,038
      Net expense on other real
       estate owned                          2,664              23,686
      Other                                540,910             471,249
        TOTAL NONINTEREST
         EXPENSE                         4,134,764           3,114,977

    Income before income taxes           1,669,871           1,590,654
    Income tax expense                     596,000             619,100
    NET INCOME                           1,073,871             971,554
    Other comprehensive income, net of tax:
      Unrealized gains on
       securities available
       for sale arising during
       period                                1,461               2,861

    COMPREHENSIVE INCOME                $1,075,332             974,415

    PER COMMON SHARE DATA:
    Net income:  Basic                       $0.49                0.45
                 Diluted                      0.46                0.43

    Cash dividends declared                  $0.14                0.12


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