Columbia Bancorp Reports Third Quarter Earnings, Continued Investment in Bank's

    KEY THIRD QUARTER ANALYTICS    --  3Q07 Return on Equity (ROE) was 15.71%    --  3Q07 Return on Assets (ROA) was 1.50%    --  3Q07 Net Interest Margin (tax equivalent) (NIM) was 5.61%    --  3Q07 Efficiency Ratio was 56.95%    KEY YEAR-TO-DATE ANALYTICS    --  Total Assets were $1.03 billion    --  Gross Loans were $874.8 million, a YTD growth rate of 8%    --  Deposits were $917.1 million, a YTD growth rate of 7%    --  Return on Equity (ROE) was 14.49%    --  Return on Assets (ROA) was 1.37%    --  Net Interest Margin (tax equivalent) (NIM) was 5.65%    --  Efficiency Ratio was 56.88%

COMPANY BUSINESS TRENDS

"Columbia will continue making improvements to its virtual bankingproducts, as well as other services," said Shane Correa, Executive VicePresident and Chief Banking Officer. "We are enhancing our cross-sellingmodel with our Personal Bankers and Deposit Growth staff with Deposit Growthteams currently in the Tri-Cities and Vancouver, Washington markets. I thinkit is going to be the wave of the future," added Correa. "We believe we havethe ability to grow our mortgage business as opportunities become available,namely accessing the expanding pool of highly-qualified lenders to add to ourstaff," explained CRB President Craig Ortega.

INCOME STATEMENT PERFORMANCE

Revenue for the third quarter (net interest income plus non-interestincome) fell $453 thousand, or 3%, from the same quarter of the prior year.Total revenue for the quarter ended September 30, 2007 was $16.1 million,compared to $16.5 million for the period ended September 30, 2006. "Our loanyields have historically contributed to our strong revenues which alsobenefited our net interest margin; the recent 50 basis point reduction in fedfunds is expected to have the effect of lowering our top line interest incomerevenues," explained Greg Spear, Columbia Vice Chair and CFO. Year-to-daterevenues increased 4.0% to $47.8 million, compared to $46.0 million in thesame period last year.

The tax equivalent net interest margin remained flat at 5.61% compared tothe quarter ended June 30, 2007 margin of 5.54%, but fell 83 basis points fromthe third quarter 2006 margin of 6.44%. The year-to-date net interest marginstood at 5.65% compared to 6.47% in the same period of the prior year, a 13%drop. "We've been aware our margin was compressing since mid-2006 due in partto increased competition for deposits. That competition isn't going away, butour response has been and will continue to be to deliver innovative productsand services for our customers and replace higher-priced retail deposits withlower-priced core deposits. Our goal is to manage our margins in order toremain among the top performing financial institutions," said Staci Coburn,CRB Corporate Vice President and Chief Accounting Officer.

Net interest income before the provision for loan loss fell $372 thousandor 3% to $13.5 million in the quarter ended September 30, 2007, compared to$13.9 million in the third quarter of 2006. Year-to-date net interest incomewas $39.8 million, a 3% or $1.2 million increase over the year-to-date 2006total of $38.6 million. "Although interest income is up 8% in quarter threeof 2007 when compared to quarter three of the prior year, our interest expenserose 37% as maturing deposits re-priced, resulting in a quarter-to-date dip innet interest income," added Coburn.

In the non-interest income category, Columbia's third quarter totaldecreased 3% over last year's third quarter balance of $2.6 million.Year-to-date totals, however, were up 9% or $634 thousand from $7.3 million in2006 to $8.0 million in 2007. Year-to-date, mortgage loan origination incomeis up 26% to $2.9 million from $2.3 million compared to the same period lastyear; CRB Financial Services revenue is $802 thousand year-to-date compared to$649 thousand the same period last year, an increase of 24%. Credit card feeswere up year-to-date from the same period in 2006 by 12%, from $363 thousandto $407 thousand. Service charges and fees remained flat at $3.2 million."Non-interest bearing deposits are down nearly 5%, which had a parallel effecton service charges," explained Shane Correa. "We are doing a better job ofmeeting with our customers and offering products such as our sweep account,Ultimate Checking, and positive pay. The market seems to be moving away fromservice charge deposit accounts and I believe the competition is going tocontinue to change the business model."

Total non-interest expense for the company was $9.2 million atSeptember 30, 2007, compared to $9.3 million in the same quarter of 2006.Driving the 2% decrease in this quarter was the continued management ofdiscretionary spending and a decrease in incentive compensation. "Ourincentive compensation program is working exactly as it should," stressedOrtega. "When key performance measures do not meet the goals set by our boardand management, incentive compensation, which is tied directly to thosemeasures, is reduced commensurately, as evidenced by the 10% drop in our thirdquarter salary and benefit expense." Year-to-date total non-interest expenseis up 8% from $25.2 million in 2006 to $27.2 million this year. Year-to-dateincreases stem from a 22% jump in occupancy expense related to branchexpansion in the Columbia Basin region and Vancouver, Washington, as well asvolume and industry-driven expenses such as electronic data processing andsoftware maintenance expenses.

The bank's efficiency ratio for quarter three was 56.95% compared to56.45% in the third quarter of 2006. Year-to-date, the efficiency ratio was56.88% compared to 54.89% in the same period last year. The efficiency ratiois an important measure of productivity in the banking industry and is derivedby measuring overhead expenses as a percentage of total revenues. "We've donea really good job of managing our discretionary expenses this year," reportedRoger Christensen. "We expect to see management continue to monitor expensesthrough the end of this year, although we will see an increase in thesalary/benefit expense category in the fourth quarter as we continue toattract and hire key specialists for our Vancouver, Washington support officein the areas of technology and operations," he added.

BALANCE SHEET PERFORMANCE

The company's loan portfolio continued to grow during the third quarter of2007, with a total gross loan balance of $874.8 million; that is a 12% or$91 million increase from the third quarter 2006 balance of $784.2 million.Year-to-date, the bank has seen an 8% bump in gross loans from theDecember 31, 2006 balance of $813.4 million. "Although constructiondevelopment numbers are off, we are expecting an additional 2% in loan growthgoing into the fourth quarter, allowing us to realize our annual goal ofdouble-digit growth," said Shane Correa.

Total deposits at September 30, 2007 were at $917.1 million, up$104.1 million or 13% from the prior year quarter-end balance of$813.0 million. Growth for the quarter again was due to increases in timecertificates and interest bearing demand, which resulted in 28% and 16% growthrespectively. Year-to-date deposits increased 7% over the December 31, 2006balance of $859.1 million, with the majority of the increase stemming fromadditional wholesale deposits as well as a promotional deposit productintroduced in August 2007. "In August 2007 we rolled out an exciting newdeposit product called Ultimate Checking which is exceeding our expectations,"said Correa.

Shareholders' equity stood at $99.1 million or $9.87 per outstanding shareat quarter-end, up from $87.4 million or $8.78 per outstanding share for thelike quarter last year, a 13% increase. Tangible book value is at $9.13 pershare, compared to $8.04 per common share at the end of the third quarter lastyear.

ASSET QUALITY

Non-performing assets at September 30, 2007 were $9.1 million, or 0.88% oftotal assets as compared to $4.9 million, or 0.50% at September 30, 2006. Themajority of the current total non-performing asset balance is comprised of tworeal estate loans which are home development projects located in the PortlandMetro area; one is for $3.53 million and the other is $3.80 million. One ofthese loans started on non-accrual status at the end of the second quarter of2007 and the other loan was placed on non-accrual status during the thirdquarter. Columbia believes both these loans are sufficiently collateralizedby the underlying real estate and loss potential is minimal based on thecurrent collateral appraisals.

EARNINGS TELECONFERENCE AND WEBCAST

Columbia will conduct a Teleconference and Webcast on Wednesday,October 24, 2007, at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) whenmanagement, led by Roger Christensen, will discuss results for the thirdquarter 2007. To participate in the call, dial 1-877-407-9210. The liveWebcast can be heard by going to Columbia Bancorp's web site,, and clicking on Presentations/Webcast underthe Investor Relations section.

The call replay will be available starting two hours after the completionof the live call until October 31, 2007. To listen to the replay dial1-877-660-6853, account #286 and use access code 257146. The Webcast will bearchived on Columbia Bancorp's website.

ABOUT COLUMBIA BANCORP

Columbia Bancorp () is the financial holdingcompany for Columbia River Bank, which operates 22 branches located in TheDalles (2), Hood River, Bend (3), Madras, Redmond (2), Pendleton, Hermiston,McMinnville, Lake Oswego, Canby, and Newberg, Oregon, and in Goldendale, WhiteSalmon, Sunnyside, Yakima, Vancouver, Pasco and Richland, Washington. Tosupplement its community banking services, Columbia River Bank also providesmortgage-lending services through Columbia River Bank Mortgage Team andbrokerage services through CRB Financial Services Team.

FORWARD-LOOKING STATEMENTS

This press release contains various forward-looking statements about plansand anticipated results of operations and financial condition relating toColumbia Bancorp. These statements include statements about management'spresent plans and intentions about our strategy, growth, and deployment ofresources, and about management's expectations for future financialperformance. Readers can sometimes identify forward-looking statements by theuse of prospective language and context, including words like "may", "will","should", "expect", "anticipate", "estimate", "continue", "plans", "intends",or other similar terminology. Because forward-looking statements are, in part,an attempt to project future events and explain management's current plans,they are subject to various risks and uncertainties which could cause ouractions and our financial and operational results to differ materially fromthose set forth in such statements. These risks and uncertainties include,without limitation, our ability to estimate accurately the collectibility ofour loans, economic and other factors which affect the collectibility of ourloans, the impact of competition and fluctuations in market interest rates onColumbia's revenues and margins, management's ability to open and generategrowth from new branches and other risks and uncertainties that we have in thepast, or that we may from time to time in the future, detail in our filingswith the Securities and Exchange Commission ("SEC"). Information presented inthis release is accurate as of the date the report was filed with the SEC, andwe cannot undertake to update our forward-looking statements or the factorsthat may cause us to deviate from them, except as required by law.

    INCOME STATEMENT    (Unaudited)    (In thousands, except per share data and ratios)                              Three Months Ended  %   Nine Months Ended   %                                 September 30,  Change  September 30,   Change                                 2007     2006          2007     2006    Interest income            $20,412  $18,919    8%  $59,830  $51,111   17%    Interest expense             6,872    5,007   37%   19,983   12,468   60%    Net interest income before     provision for loan losses  13,540   13,912   -3%   39,847   38,643    3%    Provision for loan losses      800      330  142%    4,150    2,150   93%    Net interest income     after provision for     loan losses                12,740   13,582   -6%   35,697   36,493   -2%    Non-interest income:      Service charges and fees   1,134      935   21%    3,246    3,257    -      Mortgage loan       origination income          832      935  -11%    2,850    2,269   26%      Financial services revenue   278      207   34%      802      649   24%      Credit card discounts       and fees                    157      136   15%      407      363   12%      Other non-interest income    154      423  -64%      674      807  -16%        Total non-interest         income                  2,555    2,636   -3%    7,979    7,345    9%    Non-interest expense:      Salaries and employee       benefits                  5,339    5,951  -10%   15,640   15,343    2%      Occupancy expense          1,168    1,037   13%    3,436    2,821   22%      Other non-interest       expense                   2,659    2,353   13%    8,128    7,080   15%        Total non-interest         expense                 9,166    9,341   -2%   27,204   25,244    8%    Income before provision     for income taxes            6,129    6,877  -11%   16,472   18,594  -11%    Provision for income taxes   2,252    2,634  -15%    6,136    7,022  -13%    Net income                  $3,877   $4,243   -9%  $10,336  $11,572  -11%    Earnings per common share      Basic                      $0.39    $0.43   -9%    $1.04    $1.17  -11%      Diluted                     0.38     0.42  -10%     1.01     1.14  -11%    Cumulative dividend per     common share                 0.10     0.10    -      0.30     0.29    3%    Book value per common share                          $9.87    $8.78   12%    Tangible book value per     common share (1)                                     9.13     8.04   14%    Weighted average shares     outstanding      Basic                      9,992    9,902          9,977    9,873      Diluted                   10,177   10,180         10,185   10,149    Actual shares outstanding   10,041    9,957         10,041    9,957                                      Quarter Ended        Year to Date                                   September  September  September  September                                       30,       30,        30,        30,    RATIOS                            2007      2006       2007       2006    Interest rate yield on     interest-earning assets,     tax equivalent                   8.44%     8.75%      8.47%     8.55%    Interest rate expense on     interest-bearing     liabilities                      3.88%     3.26%      3.86%     2.98%    Interest rate spread,     tax equivalent                   4.56%     5.49%      4.61%     5.57%    Net interest margin,     tax equivalent                   5.61%     6.44%      5.65%     6.47%    Efficiency ratio (2)             56.95%    56.45%     56.88%    54.89%    Return on average assets          1.50%     1.83%      1.37%     1.80%    Return on average equity         15.71%    19.63%     14.49%    18.75%    Average equity / average assets   9.53%     9.30%      9.43%     9.59%    (1)  Total common equity, less goodwill and other intangible assets,         divided by actual shares outstanding.    (2)  Non-interest expense divided by net interest income and non-interest         income.    BALANCE SHEET    (Unaudited)    (In thousands)                                                        Year              Year                                                        over               to                                  September  September  Year   December   Date                                    30,         30,      %        31,      %    ASSETS                         2007        2006    Change    2006   Change    Cash and cash equivalents     $86,801   $124,222    -30%   $148,514   -42%    Investment securities          34,116     39,447    -14%     37,704   -10%    Loans:      Commercial loans            126,289    120,990      4%    136,582    -8%      Agricultural loans           77,171     95,584    -19%     86,218   -10%      Real estate loans           354,968    333,758      6%    347,526     2%      Real estate loans -       construction               285,107    206,327     38%    212,826    34%      Consumer loans               12,826     12,701      1%     12,540     2%      Loans held for sale           6,360      6,207      2%      7,538   -16%      Other loans                  12,058      8,636     40%     10,212    18%        Total gross loans         874,779    784,203     12%    813,442     8%      Unearned loan fees           (1,300)    (1,504)    14%     (1,428)    9%      Allowance for loan losses   (10,723)    (9,916)    -8%    (10,143)   -6%        Net loans                 862,756    772,783     12%    801,871     8%    Property and equipment, net    20,862     18,087     15%     18,089    15%    Goodwill                        7,389      7,389      -       7,389     -    Other assets                   22,189     20,515      8%     19,621    13%        Total assets           $1,034,113   $982,443      5% $1,033,188     -    LIABILITIES    Deposits:      Non-interest bearing       demand deposits           $222,316   $233,942     -5%   $235,037    -5%      Interest bearing demand       deposits                   320,301    275,811     16%    313,433     2%      Savings accounts             36,762     38,745     -5%     35,456     4%      Time certificates           337,767    264,501     28%    275,140    23%        Total deposits            917,146    812,999     13%    859,066     7%    Borrowings                     10,532     74,713    -86%     74,138   -86%    Other liabilities               7,366      7,307      1%      8,966   -18%        Total liabilities         935,044    895,019      4%    942,170    -1%    Shareholders' equity           99,069     87,424     13%     91,018     9%        Total liabilities and         shareholders' equity  $1,034,113   $982,443      5% $1,033,188     -    ADDITIONAL FINANCIAL INFORMATION    (Unaudited)    (In thousands, except ratios)    NON-PERFORMING ASSETS             September 30, 2007    September 30, 2006    Delinquent loans on     non-accrual status                     $8,971              $4,897    Delinquent loans on     accrual status                              -                   -    Restructured loans                          94                  28    Total non-performing loans               9,065               4,925    Other real estate owned                      -                   -    Repossessed other assets                    32                   -    Total non-performing assets             $9,097              $4,925    Total non-performing assets / total     assets                                   0.88%               0.50%                                        Quarter Ended        Year to Date    ALLOWANCE FOR CREDIT LOSSES    September  September   September  September                                    30, 2007   30, 2006    30, 2007   30, 2006    Allowance for loan losses,     beginning of period             $10,168    $9,671     $10,143     $9,526    Provision for loan losses            800       330       4,150      2,150    Recoveries                            65       123         243        218    Charge offs                         (310)     (208)     (3,813)    (1,288)    Reclassify liability for unfunded     loan commitments                      -         -           -       (690)    Allowance for loan losses,     end of period                    10,723     9,916      10,723      9,916    Liability for unfunded loan     commitments                         838       743         838        743    Allowance for credit losses      $11,561   $10,659     $11,561    $10,659    Allowance for loan losses / gross     loans                                                    1.23%      1.26%    Allowance for credit losses / gross     loans                                                    1.32%      1.36%    Non-performing loans / allowance for     loan losses                                             84.54%     49.67%                                       Quarter Ended         Year to Date                                   September  September   September  September    FINANCIAL PERFORMANCE           30, 2007   30, 2006   30, 2007   30, 2006    Average interest-earning     assets                         $962,706  $860,979    $947,648   $802,910    Average gross loans              877,314   787,128     854,306    727,526    Average assets                 1,027,095   921,762   1,010,928    860,378    Average interest-bearing     liabilities                     703,339   609,634     692,906    558,994    Average interest-bearing     deposits                        691,105   569,993     670,286    523,118    Average deposits                 914,517   793,194     890,092    738,484    Average liabilities              929,186   836,021     915,549    777,883    Average equity                    97,909    85,742      95,378     82,494