##### 



EXHIBIT 13.1 Columbia Bancorp
2003 Annual Report To our shareholders, customers and friends
Message from the President Columbia Bancorp made further strides in 2003 toward
solidifying its position as one of the leading community banks of its
size, despite a challenging environment on several fronts, including a
struggling Northwest economy. The staff of Columbia River Bank remains
focused on ensuring asset quality, while looking toward building upon
our strong foundation. Our performance in 2003 marked another year of
solid, incremental accomplishments. For the year, Columbia Bancorp
highlights included: 
    
    Achieving our 17th consecutive year of increased earnings 
    
    Accomplishing an industry ranking among the top 15% in
our asset size class among publicly traded banks 
    
    Increasing share price by 26.75% for the year 
    
    Achieving a Return on Equity (ROE) of 18.25% for the year 
    
    Opening a new branch in Kennewick, Washington 
    
    Improving efficiency ratio to 55.43% Shareholder Value Our accomplishments in 2003 were particularly rewarding given
the low-interest rate environment in which we have operated for the past
few years. The hard work and dedication of staff and management helped
make this possible. Among our accomplishments, we achieved a 17th
consecutive year of net income growth, while keeping our sights on
maintaining a high-performing net interest margin as compared to our
peer group. For the full year, net income grew 5% to $9.8 million
($1.09 per diluted share), compared to $9.4 million ($1.03 per diluted
share) for 2002. Our ROE for the year was 18.25%, which placed us
among the top 15% of all publicly traded banks with assets between
$500 million and $1 billion, according to SNL Datasource. Our net
interest margin remained high at more than 6% for the year, but was
down slightly over the prior year due to the prevailing low interest rate
environment. This trend is expected to continue in 2004. In this environment, we are continuing to focus on ways to
maintain our high level of customer service and streamline expenses.
Our efficiency ratio has been low and we expect it will remain low in the
future. A lower ratio indicates that fewer dollars from revenue are being
spent on overhead expenses, therefore more dollars flow through to the
shareholder.
Revenue for the year totaled $40.3 million, a 5% increase from
$38.4 million in 2002. Included in revenue figures was net interest
income of $31.4 million and non-interest income of $8.9 million.
Columbia Bancorps total assets at year-end grew by 7% to $584.1
million, compared to $544.3 million a year earlier.
Columbia Bancorps loan quality remained high in 2003 and
will continue to be a focus of our efforts in the years ahead. Our risk
management processes remain robust and our current level of reserves is




---



##### 



adequate for our current risk profile. Looking forward, we will continue
to record loan loss reserves in accordance with our risk profile, strength
of loan growth and other factors. Customer Service To continue meeting the needs of Northwest customers in 2003,
a new branch was added during the year in Kennewick, Washington,
bringing the number of Columbia River Bank branches in Oregon and
Washington to a total of 18. With the increasing number of branches and business
opportunities, we promoted Shane Correa to Executive Vice President
and Regional President. He will cover the High Desert Region, which
encompasses our Central and Eastern Oregon and Eastern
Washington areas of the bank. Employee Satisfaction As we communicated last year, we have
concentrated on continued improvements in all aspects of
our business. We implemented a Web Teller system, which
enables us to more efficiently use technology to provide
consistent levels of quality customer service. We delivered
customer care training  service is the product  to all
employees stressing our customer commitment strategy. We
became an Employer of choice for the second year in a row, by being
nominated as one of the best 100 companies to work for by the Oregon
Business Magazine. Looking ahead During 2004, we anticipate opening two new Central Oregon
branches  a second location in Redmond and the other in downtown
Bend  located in vibrant communities with significant development
and population growth. This will bring the number of branches operated
in Oregon and Washington to a total of 20. We expect these two new
branches to begin adding loan and deposit totals immediately and to
contribute positive earnings within 18 months.
We will continue to look for new ways of doing business that
provide the customer service levels we expect at a reduced cost. During
this past year, we hired an outside firm to review our operations and
propose new ways we could operate the bank more efficiently, maintain
service levels, and recognize opportunities as they avail themselves. The
study is complete and implementation is in process. We feel these
improvements will add dollars to the bottom line and not detract from
our customer service model. After completing our 17th consecutive year of increased earnings,
we are not resting on our accomplishments  quite the contrary. We are
focused in 2004 on further building upon our foundation. We expect to
produce double-digit asset growth and double-digit earnings growth,
while focusing on the quality of our loans.
There will be unexpected challenges that present themselves
throughout the year as well as opportunities. I believe that the Bank is




---



##### 



now positioned to deal with these events. Our goal is to serve all of our
constituents  The Shareholder, Customer and Employee. Once again it
all starts with motivated employees that understand the business, our
expectations, and buy into our model of doing business. Our employees
have done this and continue to look for ways to provide quality customer
service. Our customers have embraced the idea of the quality customer
care and continue to refer friends and neighbors to our subsidiary;
Columbia River Bank. And, our shareholders, like yourselves, continue
to purchase Columbia Bancorp stock, thus empowering us with your
confidence as we continue to increase the value of your investment.
Our goals will continually be set high and we will strive to meet or
exceed your expectations. Message from the Chairman The Board of Directors of Columbia Bancorp join with
President and CEO Roger Christensen in recognizing the tremendous
accomplishments made by your Company in 2003! We are particularly
pleased with the execution of the Companys strategic plan under some
very challenging circumstances, and the continued growth of the
Companys culture of ethics and compliance. In 2004, we are looking
forward to further incremental growth as we continue our focus on
strong community-oriented customer service, exceptional financial
products, and the continuing enhancement of shareholder value.
Building a culture of ethics and compliance within this
institution is imperative to your Board of Directors. Our role is to
provide oversight of your Companys ethics and compliance programs.
This is vital to our long-term success, and to the role in helping to
rebuild investors confident in corporate America. During 2003, Columbia
Bancorp partnered with EthicsPoint, a leading web and phone-based
compliance software provider, to implement and monitor such a
program. Complying with the Sarbanes-Oxley (SOX) Act is a requirement
for all publicly traded companies. Our goal is not just compliance, but to
make this part of a core competency in how we operate. We believe in
strong ethics, good governance and reliable reporting of all aspects of
SOX. Over time, this should result in improved performance of the
Company as we leverage our SOX compliance efforts to continually
upgrade our business processes and systems. In addition to the implementation of these processes in 2003,
President and CEO Roger Christensen and his executive management
team continue to build and enhance the Columbia Bancorp brand, and
expand community-based banking in the Pacific Northwest. On behalf of your Board of Directors, I want to extend our
sincere thanks for your continued support of Columbia Bancorp and
Columbia River Bank. As your representatives and fellow shareholders,
we encourage you to contact any one of us if you have any questions or
comments. We look forward to continuing our progress in 2004. Donald T. Mitchell
Chairman of the Board




---



##### 



Columbia Bancorp and Columbia River Bank Executives
and Senior Vice Presidents Executives: Roger L. Christensen
President and CEO, Columbia Bancorp
and Columbia River BankJames C. McCall
Executive Vice President, Chief Operating Officer,
Columbia River BankCraig J. Ortega
Executive Vice President, Head of Community
Banking, Columbia River BankGreg B. Spear
Executive Vice President, Chief Financial Officer,
Columbia Bancorp and Columbia River BankBritt W. Thomas
Executive Vice President, Chief Credit Officer,
Columbia River BankR. Shane Correa
Executive Vice President, Regional President,
Columbia River Bank
6 2003 Annual Report Columbia Bancorp Senior Vice Presidents: Robert V. Card
Audit ManagerStaci L. Coburn
ControllerRichard Dick J. Croghan
Administrative OfficerCharla L. Fraley
Human Resource DirectorGary W. Hertel
The Dalles Branch ManagerTodd M. Vallie
Director of Non-Interest Income,
Mortgage ManagerTom S. Van Hemelyryck
Business Banking Team LeaderNot pictured is Jim McCall. Columbia Bancorp Board of Directors Robert L.R. Bailey
Orchard View Farms
OwnerCharles F. Beardsley
Hershner & Bell
Real Estate & Insurance Sales & Brokerage
OwnerRichard E. Betz




---



##### 



Royal Columbia Farms, Inc.
Bud-Rich Potato, Inc.
OwnerWilliam A. Booth
Booth & Kelly
Real Estate & Insurance
OwnerDennis L. Carver
Goldendale Chiropractic Clinic
Chiropractor/OwnerRoger L. Christensen
Columbia Bancorp
President & CEOTerry L. Cochran
Banker
RetiredJames J. Doran
Jim Doran Chevrolet
Jim Doran Dodge Chrysler
OwnerJean S. McKinney
McKinney Ranch
OwnerDonald T. Mitchell
Lumber Broker
Retired Corporate and Shareholder
Information Annual Meeting The annual meeting of shareholders is scheduled for
6:30 pm, Pacific Time, April 22, 2004, at Columbia
Gorge Discovery Center, 5000 Discovery Drive,
The Dalles, Oregon. Financial Information Columbia Bancorp news and financial results are
available through our Web site and by mail. Web site.For information about Columbia Bancorp,
including news and financial results and online
annual reports, access our home page on the
Internet at www.columbiabancorp.com. Mail. At your request, we will mail to you our
quarterly earnings news releases, quarterly financial
data reported on Form 10-Q and additional copies
of our annual reports, please contact:
www.columbiabancorp.com. Investor Relations
PO Box 1050
The Dalles, Oregon 97058
541-298-6649




---



##### 



Transfer Agent
Shareholder Services
Wells Fargo Shareowners Services
PO Box 64854
St. Paul, Minnesota 55164-0854
1-800-468-9716 Outside Legal Counsel
Marcus Williams
Davis Wright Termaine
1300 SE Fifth Avenue, Suite 2300
Portland, Oregon 97201
Bennett H. Goldstein
Attorney at Law
2548 SW St. Helens Court
Portland, Oregon 97201 Independent Auditors
Moss Adams LLP
222 SW Columbia, Suite 400
Portland, Oregon 97201
Member FDIC These financial statements have not been reviewed,
or confirmed for accuracy or relevance by the
Federal Deposit Insurance Corporation. Columbia River Bank Branch
Managers Kenneth Kip A. Anderson
Vice President and Manager
Bend BranchJames T. Booth
Assistant Vice President and Manager
South Redmond BranchThomas C. Bourdage
Vice President and Manager
Shevlin Center BranchShawn P. Carroll
Vice President and Manager
Canby BranchGerald Hap P. Cooley
Vice President and Manager
Pendleton BranchLinda J. Creager
Vice President and Manager
White Salmon BranchBob J. Ficker
Vice President and Manager
Newberg BranchThomas F. Gilleese
Vice President and Manager
Hermiston BranchGary W. Hertel




---



##### 



Senior Vice President and Manager
The Dalles BranchNancy L. Johnson
Vice President and Manager
Goldendale BranchJohn B. Kasberger
Vice President and Manager
Hood River BranchBrad E. Lunt
Vice President and Manager
McMinnville BranchPete R. McCabe
Vice President and Manager
Madras BranchSandi K. Olson
Assistant Vice President and Manager
Westside BranchKyle E. Sager
Vice President and Manager
Redmond Branch