COLUMBIA, Md.,  December 19, 1997 -- Columbia Bancorp (the "Company")
announced this day an increase in its quarterly common stock cash dividend
from $.12 per share to $.14 per share, a 16.7% increase. Specifically, the
Board of Directors of the Company authorized and declared a quarterly cash
dividend on common stock of $.14 per share on December 18, 1997. The dividend
will be paid on January 16, 1998 to stockholders of record at the close of
business on January 5, 1998.

Mr. John M. Bond, Jr., President and Chief Executive Officer, commented upon
the dividend, indicating that the increase in the dividend reflected continued
optimism regarding the long-term success of the Company. Mr. Bond, Jr. also
commented upon recent performance considerations, noting that the aggressive
expansion effort undertaken during the year, including the opening of three,
full-service de novo branches, has resulted in an increase in overhead, but
has contributed substantially to the Company's franchise value.

Further, Mr. Bond, Jr. noted that while loan growth experienced during the
nine months ended September 30, 1997 was strong, growth during the fourth
quarter of 1997 has slowed, especially in the Company's residential
development and construction portfolio, its highest yielding portfolio,
reflecting local market conditions.

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 thirteen banking offices and provides a full
range of financial services to consumers and businesses. Columbia Bancorp's
Common Stock is traded on the National Market tier of The Nasdaq Stock Market
under the symbol "CBMD."

Web site:  http://www.columbank.com