COLUMBIA, Md., July 15, 1996 -- Columbia Bancorp, parent company of The
Columbia Bank, reported net income for the six months ended June 30, 1996 of
$2,032,642, representing an increase of 46.2% over the corresponding amount of
$1,390,520 reported for the six months ended June 30, 1995. While net income
increased significantly from period to period, fully diluted net income per
common share remained unchanged at $.90 as a result of the successful
completion of the June 27, 1995 common stock offering which resulted in the
issuance of 862,500 shares of common stock.

Financial results for the quarter ended June 30, 1996 were also strong. Net
income was $1,009,625 for the three months ended June 30, 1996 as compared to
$757,208 for the same quarter in 1995 and represented an increase of 33.3%.
Fully diluted net income per share was $.45 and $.49 for the three months
ended June 30, 1996 and 1995, respectively. Again, the impact of the June 27,
1995 common stock offering accounted for the change in fully diluted net
income per share.

The strong financial performance during the six months ended June 30, 1996 was
primarily attributable to continued growth in the Company's core business.
Specifically, loans, net of unearned income, grew to $217.6 million,
representing an increase of 14.1% since December 31, 1995 and 23.9% since June
30, 1995. Growth in the loan portfolio contributed to a very strong net
interest margin of 6.7% for the six months ended June 30, 1996. The growth in
the loan portfolio was primarily funded by an increase in deposits from $218.2
million at December 31, 1995 to $233.6 million at June 30, 1996, or 7.1%.
Noninterest income for the first six months of 1996 also contributed to the
strong financial performance, increasing $311,000 as compared to the first six
months of 1995. The improvement reflected an increase in fees charged for
services of $130,000 and an increase in fees recognized on the sales of
mortgage loans of $112,000. An increase in noninterest expense of $718,000
during the six months ended June 30, 1996 as compared to the same period in
1995 reflected the cost of expansion, particularly in connection with the
recent openings of two full-service branches and the ongoing upgrade of data
processing, customer service and management information systems.

Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank currently operates eleven banking offices and provides a full
range of financial services to consumers and businesses. Columbia Bancorp's
Common Stock is traded on the Nasdaq National Market tier of The Nasdaq Stock
Market under the symbol "CBMD."