<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                         -------------------------------

                                   FORM 10-QSB



          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
              SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 2000

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
              SECURITIES EXCHANGE ACT OF 1934

             For the transition period from _________ to __________

                         Commission File Number 0-24935
                                                -------

                              SERVICE BANCORP, INC.
                              ---------------------
             (Exact name of registrant as specified in its charter)


                       MASSACHUSETTS                         04-3430806
            (State or other jurisdiction of              (I.R.S. Employer
             Incorporation or organization)             Identification Number)



                     81 MAIN STREET,
                  MEDWAY, MASSACHUSETTS                          02053
         (Address of principal executive offices)              (Zip Code)

                                 (508) 533-4343
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


                                 NOT APPLICABLE
              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last year.)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

         Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practical date.

         At February 5, 2001, there were 1,612,254 shares of common stock
outstanding, par value $0.01 per share.


<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY
                                   FORM 10-QSB

                                      INDEX
<TABLE>
<CAPTION>

         PART I   FINANCIAL INFORMATION                                      PAGE

Item 1.  Financial Statements
<S>                                                                          <C>

         Consolidated Balance Sheets
         as of December 31, 2000 and June 30, 2000 ........................    1

         Consolidated Statements of Income for the three and
         six months ended December 31, 2000 and 1999 ......................    2

         Consolidated Statements of Changes in Stockholders' Equity
         for the six months ended December 31, 2000 and 1999 ..............    3

         Consolidated Statements of Cash Flows for the six months
         ended December 31, 2000 and 1999 .................................    5

         Notes to Consolidated Financial Statements .......................    6

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations ........................................    9

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings ................................................   17

Item 2.  Changes in Securities ............................................   17

Item 3.  Defaults upon Senior Securities ..................................   17

Item 4.  Submission of Matters to a Vote of Security Holders ..............   17

Item 5.  Other Information ................................................   18

Item 6.  Exhibits and Reports on Form 8-K .................................   18

         Signature Page ...................................................   19
</TABLE>

<PAGE>
                      SERVICE BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
              (Dollars in thousands, except for per share amounts)
<TABLE>
<CAPTION>
                                                                                        December 31,             June 30,
        ASSETS                                                                              2000                   2000
        ------                                                                      ---------------------  ---------------------
<S>                                                                                             <C>                    <C>

     Cash and due from banks                                                                      $9,195                 $8,133
     Short-term investments                                                                        9,499                  6,112
                                                                                    ---------------------  ---------------------
           Total cash and cash equivalents                                                        18,694                 14,245
                                                                                    ---------------------  ---------------------

     Certificates of deposit                                                                         100                    100
     Securities available for sale, at fair cost                                                  78,828                 81,596
     Securities held to maturity, at amortized cost                                                5,171                  4,771
     Federal Home Loan Bank stock, at cost                                                         1,588                  1,588

     Loans                                                                                       112,609                107,224
       Less allowance for loan losses                                                              (883)                  (802)
                                                                                    ---------------------  ---------------------
     Loans, net                                                                                  111,726                106,422
                                                                                    ---------------------  ---------------------

     Banking premises and equipment, net                                                           4,247                  4,223
     Accrued interest receivable                                                                   2,040                  2,007
     Bank-owned life insurance                                                                     2,104                  2,070
     Other assets                                                                                  1,734                  2,411
                                                                                    ---------------------  ---------------------
               Total assets                                                                     $226,232               $219,433
                                                                                    =====================  =====================

        LIABILITIES AND STOCKHOLDERS' EQUITY
     Deposits                                                                                   $183,006               $176,345
     Federal Home Loan Bank advances                                                              24,373                 26,350
     Other liabilities                                                                             1,418                  1,560
                                                                                    ---------------------  ---------------------
               Total liabilities                                                                 208,797                204,255
                                                                                    ---------------------  ---------------------

     Stockholders' equity:
       Preferred stock, $.01 par value; 5,000,000 shares
         authorized, none issued                                                                      --                     --
       Common stock, $.01 par value; 12,000,000 shares
         authorized, 1,712,630 issued                                                                 17                     17
       Additional paid-in capital                                                                  7,414                  7,426
       Retained earnings                                                                          12,082                 11,630
       Accumulated other comprehensive loss                                                        (880)                (2,638)
       Treasury stock, at cost - 68,506 shares at December 31, 2000
          and June 30, 2000                                                                        (560)                  (560)
       Unearned ESOP shares - 40,434 shares at December 31, 2000
           and 43,662 shares at June 30, 2000                                                      (405)                  (436)
       Unearned RRP Stock - 32,587 shares at December 31, 2000
           and 36,482 shares at June 30, 2000                                                      (233)                  (261)
                                                                                    ---------------------  ---------------------
               Total stockholders' equity                                                         17,435                 15,178
                                                                                    ---------------------  ---------------------
               Total liabilities and stockholders' equity                                       $226,232               $219,433
                                                                                    =====================  =====================
</TABLE>


     See accompanying notes to consolidated financial statements.


                                       1

<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
              (Dollars in thousands, except for per share amounts)

<TABLE>
<CAPTION>
                                                                             Three Mos. Ended Dec. 31,       Six Mos. Ended Dec. 31,
                                                                               2000           1999            2000           1999
                                                                           ---------       ---------      ---------      ---------
Interest and dividend income:
<S>                                                                           <C>             <C>            <C>            <C>
  Interest and fees on loans                                                  $2,307          $1,839         $4,517         $3,597
  Interest and dividends on securities                                         1,513           1,400          3,100          2,642
  Interest on short-term investments
    and certificates of deposit                                                  115              51            175            124
                                                                           ---------       ---------      ---------      ---------
        Total interest and dividend income                                     3,935           3,290          7,792          6,363
                                                                           ---------       ---------      ---------      ---------



Interest expense:
  Interest on deposits                                                         1,736           1,202          3,439          2,361
  Interest on FHLB advances                                                      384             373            755            684
                                                                           ---------       ---------      ---------      ---------
        Total interest expense                                                 2,120           1,575          4,194          3,045
                                                                           ---------       ---------      ---------      ---------


Net interest income                                                            1,815           1,715          3,598          3,318
Provision for loan losses                                                         62              35            118             80
                                                                           ---------       ---------      ---------      ---------
        Net interest income, after provision for loan losses                   1,753           1,680          3,480          3,238
                                                                           ---------       ---------      ---------      ---------

Other income:
  Customer service fees                                                          257             196            503            376
  Gain on sales of securities available for sale, net                            214             214            290            233
  Miscellaneous                                                                   42              27             77             43
                                                                           ---------       ---------      ---------      ---------
        Total other income                                                       513             437            870            652
                                                                           ---------       ---------      ---------      ---------

Operating expenses:
  Salaries and benefits                                                        1,011             811          1,912          1,567
  Occupancy and equipment expenses                                               380             345            760            673
  Data processing expenses                                                       129              97            261            189
  Professional fees                                                               79              89            132            151
  Advertising expenses                                                            79              57            130            126
  Other general and administrative expenses                                      249             195            472            393
                                                                           ---------       ---------      ---------      ---------
        Total operating expenses                                               1,927           1,594          3,667          3,099
                                                                           ---------       ---------      ---------      ---------

Income before income taxes                                                       339             523            683            791

Provision for income taxes                                                       112             189            231            289
                                                                           ---------       ---------      ---------      ---------

Net income                                                                      $227            $334           $452           $502
                                                                           =========       =========      =========      =========

Weighted average common shares
  outstanding during the period -
          Basic                                                            1,569,561       1,606,478      1,567,627      1,624,743
                                                                           =========       =========      =========      =========
          Diluted                                                          1,569,561       1,606,478      1,567,627      1,626,678
                                                                           =========       =========      =========      =========

Earnings per common share(Basic and Diluted)                                   $0.14           $0.21          $0.29          $0.31
                                                                           =========       =========      =========      =========
</TABLE>


See accompanying notes to consolidated financial statements.

                                                                 2

<PAGE>

                      SERVICE BANCORP, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                   SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                              Accumulated
                                                                 Additional                      Other
                                                    Common        Paid-in      Retained      Comprehensive
                                                    Stock         Capital      Earnings          Loss
                                               ---------       ---------     ---------       ----------
<S>                                                <C>
Balance at June 30, 2000                             $17          $7,426       $11,630         ($2,638)


Comprehensive income:
Net Income                                            --              --           452              --

Change in net unrealized loss
  on securities available for sale,
  net of tax and reclassification
  adjustment                                          --              --            --           1,758
    Total comprehensive income                     2,210

Common stock held by ESOP released
  and committed to be released
  (3,228 shares)                                      --             (12)           --              --

Amortization of RRP stock                             --              --            --              --
  (3,895 shares)
                                               ---------       ---------     ---------       ----------
Balance at December 31, 2000                         $17          $7,414       $12,082           ($880)
                                               =========       =========     =========       ==========

<CAPTION>

                                                      Unearned     Unearned
                                          Treasury     ESOP         RRP
                                           Stock      Shares       Stock    Total
                                         --------     -------     -------   -------
<S>
Balance at June 30, 2000                   ($560)      ($436)      ($261)   $15,178


Comprehensive income:
Net Income                                    --          --          --        452

Change in net unrealized loss
  on securities available for sale,
  net of tax and reclassification
  adjustment                                  --          --          --      1,758
    Total comprehensive income

Common stock held by ESOP released
  and committed to be released
  (3,228 shares)                              --          31          --         19

Amortization of RRP stock                     --          --          28         28
  (3,895 shares)
                                         --------     -------     -------   -------
Balance at December 31, 2000               ($560)      ($405)      ($233)   $17,435
                                         ========     -------     -------   -------
</TABLE>



See accompanying notes to consolidated financial statements.

                                       3

<PAGE>

                      SERVICE BANCORP, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
             SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999 (CONCLUDED)

<TABLE>
<CAPTION>

                                                             Additional
                                                    Common    Paid-in    Retained  Comprehensive
                                                     Stock    Capital    Earnings      Loss
                                                   --------- ---------   ---------  ----------
<S>                                                <C>       <C>         <C>        <C>
Balance at June 30, 1999                               $17     $7,444    $10,784     ($1,182)

Comprehensive loss:
Net income                                              --         --        502          --

Change in net unrealized loss
  on securities available for sale,
  net of tax and reclassification
  adjustment                                            --         --         --      (1,395)

    Total comprehensive loss


Common stock held by ESOP released
  and committed to be released
  (3,222 shares)                                        --         (7)        --          --

Purchase of treasury stock
 (58,500 shares)                                        --         --         --          --

Purchase of RRP stock
 (10,800 shares)                                        --         --         --          --
                                                     -----    -------    -------     -------

Balance at December 31, 1999                           $17     $7,437    $11,286     ($2,577)
                                                     =====    =======    =======     =======

<CAPTION>


                                        Accumulated
                                           Other    Unearned  Unearned
                                         Treasury     ESOP      RRP
                                           Stock      Shares   Stock     Total
                                         --------   -------   -------   -------
<S>                                      <C>        <C>       <C>       <C>
Balance at June 30, 1999                  ($83)      ($501)     $--      $16,479

Comprehensive loss:
Net income                                  --          --       --          502

Change in net unrealized loss
  on securities available for sale,
  net of tax and reclassification
  adjustment                                --          --       --       (1,395)
                                                                        --------
    Total comprehensive loss                                                (893)
                                                                        --------

Common stock held by ESOP released
  and committed to be released
  (3,222 shares)                            --          32        --          25

Purchase of treasury stock
 (58,500 shares)                          (477)         --        --        (477)

Purchase of RRP stock
 (10,800 shares)                            --          --       (82)        (82)
                                         -----       -----      ----    --------

Balance at December 31, 1999             ($560)      ($469)     ($82)    $15,052
                                         =====       =====      ====    ========

</TABLE>

See accompanying notes to consolidated financial statements


                                        4

<PAGE>

                      SERVICE BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            FOR THE SIX MONTHS ENDED
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                 Dec. 31,     Dec. 31,
                                                                   2000        1999
                                                                   ----        ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                            <C>         <C>
  Net income                                                   $    452    $    502
  Adjustments to reconcile net income to
    net cash provided (used) by operating activities:
      Provision for loan losses                                     118          80
      Gain on sales of securities available for sale, net          (290)       (233)
      Amortization of unearned loan income                           87          29
      Accretion of securities, net of amortization                  (99)        (60)
      Depreciation and amortization expense                         329         299
      Decrease in accrued interest receivable                       (33)        (81)
      Deferred tax benefit                                         (110)        (78)
      Other, net                                                   (328)     (1,060)
                                                               --------    --------
        Net cash provided (used) by operating activities            126        (602)
                                                               --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sales and calls of
    securities available for sale                                 8,082       3,346
  Proceeds from maturities of and
    principal payments on securities
    available for sale                                              914       3,691
  Purchase of securities available for sale                      (3,151)    (14,645)
  Purchase of securities held to maturity                          (400)       --
  Net increase in loans                                          (5,509)    (10,744)
  Purchase of banking premises and equipment                       (353)       (288)
                                                               --------    --------
        Net cash used by investing activities                      (417)    (18,640)
                                                               --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Net increase in deposits                                        6,661      16,024
  Proceeds from Federal Home Loan Bank
    advances                                                     16,089      20,740
  Repayment of Federal Home Loan Bank
    advances                                                    (18,066)    (18,463)
  Release of common stock held by ESOP                               19          25
  Purchase of RRP stock                                              --         (82)
  Increase in mortgagors' escrow deposits                             9          27
  Amortization of RRP stock                                          28          --
  Purchase of treasury stock                                         --        (477)
                                                               --------    --------
        Net cash provided by financing activities                 4,740      17,794
                                                               --------    --------
Net change in cash and cash equivalents                           4,449      (1,448)
Cash and cash equivalents at beginning of period                 14,245      13,390
                                                               --------    --------
Cash and cash equivalents at end of period                     $ 18,694    $ 11,942
                                                               ========    ========
SUPPLEMENTARY INFORMATION:
  Interest paid on deposits                                    $  3,454    $  2,375
  Interest paid on Federal Home Loan
    Bank advances                                                   765         643
  Income taxes paid                                                 261         376
  Decrease in due from broker                                        --         521
</TABLE>


SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                        5
<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     (1) BASIS OF PRESENTATION AND CONSOLIDATION

     The accompanying unaudited consolidated financial statements include the
     accounts of Service Bancorp, Inc. (the "Company") and its wholly-owned
     subsidiary, Strata Bank (the "Bank"), and the Bank's wholly-owned
     subsidiaries, Medway Securities Corp. and Franklin Village Security Corp.,
     both of which engage solely in the purchase and sale of investment
     securities. All significant intercompany balances and transactions have
     been eliminated in consolidation.

     These financial statements have been prepared in accordance with generally
     accepted accounting principles ("GAAP") for interim financial information
     and the instructions for Form 10-QSB and Article 10 of Regulation S-X.
     Accordingly, they do not include all of the information and footnotes
     required by GAAP for complete financial statements. In the opinion of
     management, all adjustments (consisting only of normal recurring accruals)
     necessary for a fair presentation have been included. Interim results are
     not necessarily indicative of the results that may be expected for the
     entire year. Certain information and footnote disclosures normally included
     in the financial statements prepared in accordance with GAAP have been
     omitted. A summary of significant accounting policies followed by the
     Company is set forth in the Notes to Consolidated Financial Statements of
     the Company's 2000 annual report to stockholders and is incorporated herein
     by reference.

     (2) REORGANIZATION AND STOCK OFFERING

     The Company is a Massachusetts corporation that was organized in August
     1998 at the direction of the Board of Directors of the Bank and the Board
     of Trustees of Service Bancorp, MHC (the "MHC"), the mutual holding company
     parent of the Bank, for the purpose of owning all of the outstanding
     capital stock of the Bank. The Company offered for sale 47% of the shares
     of its outstanding common stock in a public offering to eligible
     depositors, employees, and members of the general public (the "Offering").
     The remaining 53% of the Company's shares of common stock were issued to
     the MHC. The Offering was completed on October 7, 1998. Prior to that date,
     the Company had no assets or liabilities.

     Completion of the Offering resulted in the issuance of 1,712,630 shares of
     common stock, 907,694 shares of which were issued to the MHC and 804,936
     shares of which were sold to eligible depositors, employees, and the
     general public at $10.00 per share. The Company began trading on the OTC
     Bulletin Board under the symbol "SERC" on October 7, 1998. Costs related to
     the Offering (primarily marketing fees paid to an underwriting firm,
     professional fees, registration fees, and printing and mailing costs)
     aggregated $569,000. These costs together with funds loaned to purchase
     shares for the Bank's Employee Stock Ownership Plan (the "ESOP") were
     deducted to arrive at net proceeds of $6.8 million. The Company contributed
     50% of the net proceeds of the Offering to the Bank for general corporate
     use. On October 7, 1998, the Company loaned approximately $644,000 to the
     ESOP to fund its purchase of 64,394 shares of common stock of the Company.

     (3) EARNINGS PER SHARE

     Earnings per share is based on the weighted average number of shares
     outstanding during the period. The Company's "basic" and "diluted" earnings
     per share are identical as there were no material common stock equivalents
     outstanding during the periods covered by the report

                                        6
<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     (4) COMMITMENTS

     At December 31, 2000, the Company had outstanding commitments to originate
     loans of $3.0 million. Unused lines of credit available to customers
     amounted to $9.9 million, $9.0 million of which were equity lines of
     credit.

     (5) SECURITIES

      The following table sets forth the Company's securities at the dates
indicated.


<TABLE>
<CAPTION>
                                                                 December 31, 2000               June 30, 2000
                                                           --------------------------------------------------------------
         (Dollars in thousands)                               Amortized         Fair         Amortized         Fair
                                                                 COST          VALUE            COST           VALUE
                                                                 ----          -----            ----           -----
<S>                                                                 <C>          <C>               <C>           <C>
         AVAILABLE FOR SALE SECURITIES:
         Federal agency obligations                                 $41,203      $40,871           $45,667       $43,633
         Mortgage-backed securities                                  15,961       15,784            16,876        16,028
         Other debt securities                                       19,739       19,367            19,359        18,621
                                                           ------------------------------ -------------------------------
               Total debt securities                                 76,903       76,022            81,902        78,282
         Marketable equity securities                                 3,267        2,806             3,724         3,314
                                                           ------------------------------ -------------------------------
               Total available for sale securities                  $80,170      $78,828           $85,626       $81,596
                                                           ============================== ===============================

         HELD TO MATURITY SECURITIES:
         Other debt securities                                       $5,171       $5,304            $4,771        $4,738
                                                           ============================== ===============================
</TABLE>



     (6) LOANS

     The following table presents data relating to the composition of the
     Company's loan portfolio by type of loan at the dates indicated.

<TABLE>
<CAPTION>
         (Dollars in thousands)                                 December 31, 2000                  June 30, 2000
                                                           ------------------------------ -------------------------------
                                                              AMOUNT         PERCENT          AMOUNT         PERCENT
                                                              ------         -------          ------         -------
<S>                                                              <C>              <C>            <C>              <C>
         REAL ESTATE LOANS:
           Residential                                           $62,419          55.45%         $61,689          57.56%
           Commercial                                             26,685          23.71%          25,035          23.36%
           Construction                                            4,178           3.71%           2,742           2.56%
                                                           -------------- --------------- --------------- ---------------
             Total real estate loans                              93,282          82.87%          89,466          83.47%
</TABLE>

                                                                   7
<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


<TABLE>
<CAPTION>

                                                                    December 31, 2000                  June 30, 2000
                                                           ------------------------------ -------------------------------
              (Dollars in thousands)                               AMOUNT        PERCENT          AMOUNT         PERCENT
                                                                   ------        -------          ------         -------
<S>                                                               <C>            <C>              <C>            <C>
              OTHER LOANS:
              Consumer loans:
                Collateral                                            753          0.67%              634          0.59%
                Home equity                                         8,949          7.95%            7,685          7.17%
                Other                                               1,806          1.60%            1,629          1.52%
                                                           ------------------------------ -------------------------------
                  Total consumer loans                             11,508         10.22%            9,948          9.28%
              Commercial business loans                             7,776          6.91%            7,763          7.24%
                                                           ------------------------------ -------------------------------
                  Total other loans                                19,284         17.13%           17,711         16.53%
                                                           ------------------------------ -------------------------------
                      Total loans                                 112,566        100.00%          107,177        100.00%
                                                                          ===============                 ===============
                Net deferred loan costs                                28                              37
                Deferred premium                                       15                              10
                Allowance for loan losses                           (883)                           (802)
                                                           ---------------                ----------------
                      Total loans, net                           $111,726                        $106,422
                                                           ===============                ================
</TABLE>



      (7) DEPOSITS AND BORROWED FUNDS

         The following tables indicate types and balances in deposit accounts at
the dates indicated.

<TABLE>
<CAPTION>
                                                                 December 31, 2000                  June 30, 2000
                                                           ------------------------------ -------------------------------
                  (Dollars in thousands)                           AMOUNT        PERCENT          AMOUNT         PERCENT
                                                                   ------        -------          ------         -------
<S>                                                               <C>            <C>              <C>            <C>
                  Demand                                          $24,208         13.23%          $19,684         11.16%
                  NOW                                              20,411         11.15%           22,521         12.77%
                  Money market deposits                            14,798          8.09%           12,992          7.37%
                  Regular and other savings                        32,853         17.95%           28,998         16.44%
                                                           ------------------------------ -------------------------------
                      Total non-certificate accounts               92,270         50.42%           84,195         47.74%
                  Term certificates                                90,736         49.58%           92,150         52.26%
                                                           ------------------------------ -------------------------------
                      Total deposits                             $183,006        100.00%         $176,345        100.00%
                                                           ============================== ===============================
</TABLE>




     The following is a list of advances from the Federal Home Loan Bank of
Boston by maturity date.

<TABLE>
<CAPTION>
                                                                    December 31, 2000                June 30, 2000
                                                           ------------------------------ -------------------------------
                  (Dollars in thousands):                       AMOUNT          PERCENT         AMOUNT         PERCENT
                                                                ------          -------         ------         -------
<S>                                                               <C>            <C>              <C>            <C>
                  Maturities:
                  Less than one year                                $113           0.46%             $85           0.32%
                  One to three years                              $2,000           8.21%          $2,000           7.59%
                  Three to five years                             $1,000           4.10%          $7,000          26.57%
                  Greater than five years                         21,260          87.23%          17,265          65.52%
                                                           --------------  -------------- --------------- ---------------
                      Total borrowed funds                       $24,373         100.00%         $26,350         100.00%
                                                           ==============  ============== =============== ===============
</TABLE>




                                        8
<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS

     GENERAL

         This quarterly report on Form 10-QSB contains forward-looking
     statements. For this purpose, any statements contained herein that are not
     statements of historical fact may be deemed to be forward-looking
     statements. Without limiting the foregoing, the words "believe",
     "anticipates", "plans", "expects" and similar expressions are intended to
     identify forward-looking statements. There are a number of important
     factors that could cause the Company's actual results to differ materially
     from those contemplated by such forward-looking statements. These important
     factors include, without limitation, the Bank's continued ability to
     originate quality loans, fluctuation in interest rates, real estate
     conditions in the Bank's lending areas, general and local economic
     conditions, the Bank's continued ability to attract and retain deposits,
     the Company's ability to control costs, new accounting pronouncements, and
     changing regulatory requirements. The Company undertakes no obligation to
     publicly release the results of any revisions to those forward-looking
     statements which may be made to reflect events or circumstances after the
     date hereof or to reflect the occurrence of unanticipated events.

     COMPARISON OF FINANCIAL CONDITION AT DECEMBER 31, 2000 AND JUNE 30, 2000

         Assets increased by $6.8 million, or 3.1%, from $219.4 million at June
     30, 2000 to $226.2 million at December 31, 2000. The increase was primarily
     funded by the $6.7 million, or 3.8%, increase in total deposits since June
     30, 2000. Over that same timeframe, the Company reduced its borrowing
     position with the Federal Home Loan Bank ("FHLB") by $2.0 million, or 7.5%.

         The funds provided during the six months ended December 31, 2000 were
    invested in net loans, which increased $5.3 million, or 5.0%. All loan
    categories increased during this period, with residential mortgages,
    commercial mortgages, and construction loans increasing $730,000, $1.7
    million, and $1.4 million, respectively. In addition, home equity loans
    increased $1.3 million since June 30, 2000.

          It is the Bank's continued objective to increase the residential fixed
    and variable loans by originating loans within the area serviced by its
    branch network. The purchase of loan packages from other financial
    institutions will be considered as opportunities present themselves. During
    the six months ended December 31, 2000, the Bank purchased 22 loans totaling
    $4.0 million. The Bank considers many factors when deciding to purchase a
    loan package, including but not limited to the loan pricing, loan
    underwriting, interest rate risk, and the geographical location of the real
    estate securing the loans. In addition, the Bank continues to emphasize
    growth in its commercial loan portfolio, which generally provides higher
    yields than residential and consumer loans, and potentially improves the
    Bank's core deposit base. The Bank frequently receives commercial checking
    and money market accounts from the Bank's commercial borrowers.

         During this same timeframe, securities available for sale and held to
    maturity decreased $2.4 million, or 2.7%. While corporate debt securities
    increased $1.1 million, or 4.9%, through purchases, federal agency
    obligations and marketable equity securities decreased $2.8 million, or
    6.3%, and $508,000, or 15.3%, respectively, primarily due to security sales
    and/or bond calls.

                                        9

<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS(CONTINUED)

         The increase of $6.7 million in deposits was primarily attributable to
     increases of $4.5 million, or 23.0%, $3.9 million, or 13.3%, and $1.8
     million, or 13.9%, in demand deposits, regular and other savings, and money
     market deposits, respectively. During this same timeframe NOW accounts,
     primarily Interest Only Lawyers Trust Accounts ("IOLTA") and term
     certificates decreased $2.1 million, or 9.4%, and $1.4 million, or 1.5%,
     respectively. The Bank has reduced its emphasis on term certificate
     deposits, which generally have a high cost of funds, and has increased its
     focus on NOW accounts, demand deposit accounts, and money market deposit
     accounts which generally allows the Bank to develop increased relationships
     with its customers and pay a lower cost of funds. In addition, borrowings
     decreased $2.0 million, or 7.5% since June 30, 2000, primarily due to the
     paydown and maturity of certain borrowings. The borrowings are primarily
     utilized to fund certain investment and loan opportunities that allow the
     Bank to manage its interest rate margin.

         Stockholders' equity increased from $15.2 million, or 6.92% of total
     assets at June 30, 2000 to $17.5 million, or 7.71% of total assets at
     December 31, 2000. This increase resulted primarily from an improvement of
     $1.8 million in the unrealized losses in the Company's securities available
     for sale portfolio from June 30, 2000 to December 31, 2000 and the
     Company's earnings during the same period.

     NON-PERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES

         The following indicates the non-performing assets and related
     allowance for loan loss ratios at the dates indicated.

<TABLE>
<CAPTION>
                                                                   Dec. 31,           June 30,
             (Dollars in thousands)                                  2000               2000
                                                               ------------------ -----------------
            <S>                                                <C>                <C>
             Non-accrual loans:
               One-to-four family real estate loans                         $158              $160
               Commercial loans                                               18               117
               Commercial business loans                                     160               153
               Consumer loans                                                 21                 2
                                                               ------------------ -----------------
                 Total non-accrual loans                                     357               432
             Other real estate owned                                           -                 -
                                                               ------------------ -----------------
                 Total non-performing assets                                $357              $432
                                                               ================== =================

             Allowance for loan losses                                      $883              $802
                                                               ================== =================

             Allowance for loan losses as a percent
                 of total loans, net                                       0.79%             0.75%
                                                               ================== =================

             Allowance for loan losses as a percent
                 of non-accrual loans                                    247.34%           185.65%
                                                               ================== =================

             Non-accrual loans as a percent of
                 total loans, net                                          0.32%             0.41%
                                                               ================== =================

             Non-performing assets as a percent of
                 total assets                                              0.16%             0.20%
                                                               ================== =================
</TABLE>


                                       10
<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS(CONTINUED)

     During the six months ended December 31, 2000, the Bank added $118,000 to
     the loan loss provision due to the growth of the commercial loan portfolio
     which generally present a greater risk of loss than residential loans.
     During this period, there were $64,000 in loan charge-offs and $27,000 in
     recoveries from previously charged-off loans.

         While management believes that, based on information currently
     available, the allowance for loan losses is sufficient to cover losses in
     the Company's loan portfolio at this time, no assurances can be given that
     the level of the allowance will be sufficient to cover future loan losses
     or that future adjustments to the allowance will not be necessary if
     economic and/or other conditions differ substantially from the economic and
     other conditions considered by management in evaluating the adequacy of the
     current level of the allowance.


     COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31,
     2000 AND 1999

      GENERAL

         Operating results are primarily dependent on the Bank's net interest
     income, which is the difference between the interest earned on the Bank's
     earning assets (short-term investments, loans, and investment securities)
     and the interest paid on deposits and borrowings. Operating results are
     also affected by provisions for loan losses, the level of income from
     non-interest sources such as fees and sales of investment securities and
     other assets, operating expenses and income taxes. Operating results are
     also significantly affected by general economic conditions, particularly
     changes in interest rates, as well as government policies and actions of
     regulatory authorities.

         Net income for the three months ended December 31, 2000 was $227,000 as
     compared to $334,000 for the three months ended December 31, 1999, a
     decrease of $107,000, or 32.0%. This decrease was primarily attributable to
     increases of $333,000, or 20.9%, and $27,000, or 77.1%, in total operating
     expenses and the provision for loan losses, respectively. Partially
     offsetting these were increases of $100,000, or 5.8%, and $61,000, or
     31.1%, respectively, in net interest income and customer service fees.

         The Bank's interest rate spread (the difference between yields earned
     on earning assets and rates paid on deposits and borrowings) decreased from
     3.57% for the three months ended December 31, 1999 to 3.06% for the three
     months ended December 31, 2000. In addition, interest rate margin (net
     interest income divided by average earning assets) decreased from 3.96% to
     3.59%. The interest rate spread and margin decreased primarily as a result
     of the increase of 69 basis points in funding costs for both deposits and
     borrowings between periods due to Federal Reserve interest rate increases
     since June 1999. Partially offsetting the increase in funding costs was an
     increase of 18 basis points in the yield on earning assets between periods.
     The Bank's emphasis on commercial loans assisted in this improvement as
     loan yields improved 24 basis points between periods.

         While core-based deposit growth will be emphasized, past experience
     indicates that such growth is achieved through a greater increase in
     higher-cost retail certificates than lower-cost core deposits. An increase
     in interest rates and continued competition from other financial
     institutions together with the aforementioned growth in retail certificates
     could cause future tightening in the interest rate spread.


                                       11

<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS(CONTINUED)

         The interest rate spread and margin for the periods indicated are as
follows:

<TABLE>
<CAPTION>
                                                                      Three months ended
                                                                            December 31,
                                                                  ---------------------------
                                                                      2000          1999
                                                                      ----          ----
<S>                                                                      <C>           <C>
                Weighted average yield earned on:
                  Short-term investments                                 6.75%         5.34%
                  Securities                                             6.99%         6.98%
                  Total loans, net                                       8.48%         8.24%
                                                                  ------------- -------------
                      All earning assets                                 7.78%         7.60%

                Weighted average rate paid on:
                  Deposits                                               4.50%         3.74%
                  Borrowed funds                                         6.08%         5.35%
                                                                  ------------- -------------
                      All interest-bearing liabilities                   4.72%         4.03%
                                                                  ------------- -------------

                Weighted average rate spread                             3.06%         3.57%
                                                                  ============= =============

                Net interest margin                                      3.59%         3.96%
                                                                  ============= =============
</TABLE>



   Earnings per share data for the three months ended December 31, 2000 was
   $0.14 for both "basic" and "diluted" calculations as compared to $0.21 per
   share for both "basic" and "diluted" calculations for the three months ended
   December 31, 1999.

     INTEREST AND DIVIDEND INCOME

         Total interest and dividend income increased by $645,000, or 19.6%,
     from $3.3 million for the three months ended December 31, 1999 to $3.9
     million for the comparable period in 2000. This increase was primarily
     attributable to a $29.0 million, or 16.8%, increase in average earning
     assets between the two periods as well as a 19 basis point increase in the
     yield on average earning assets between the two periods. The average
     balances in net loans increased $19.6 million, or 21.9%, while total loan
     yield increased by 24 basis points to 8.48%. The average loan balance
     within the residential loan portfolio increased by $11.1 million, while
     commercial loans and other loan types grew by $8.5 million.

     The average investment portfolio balance increased $5.8 million or 7.2 %
     over this same period and the portfolio yield improved by 1 basis point to
     6.99%. Corporate debt securities increased by $12.0 million during this
     timeframe, while federal agency obligations and pass-through securities
     declined due to security sales and paydowns. In addition, the average
     balance in short-term investments increased by $3.6 million, or 111.9%,
     while the portfolio yield improved by 141 basis points to 6.75 . This yield
     increase reflects the Federal Reserve System's increase in short-term
     interest rates from June 1999 through the end of the period.

                                       12
<PAGE>



                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS (CONTINUED)

     INTEREST EXPENSE

         Interest expense on deposits increased $534,000, or 44.4%, from $1.2
     million for the three months ended December 31, 1999, to $1.7 million for
     the three months ended December 31, 2000. This increase was attributable to
     a $25.8 million, or 20.1%, increase in average interest-bearing deposit
     balances between periods, while deposit rates increased from 3.74% to 4.50%
     over the same period. The increase in the interest rates was primarily
     attributable to the growth of $17.8 million, or 24.3%, in higher-priced
     certificate accounts during the period due to increases in interest rates
     by the Federal Reserve System.

         The Bank decreased its use of borrowings from the FHLB to put its
     emphasis on the lower cost retail deposit products. Average balances in
     these advances were $25.2 million during the three months ended December
     31, 2000, a decrease of $2.7 million, or 9.5% from the three months ended
     December 31, 1999. Over this same timeframe, borrowing rates increased from
     5.35% to 6.08%. Interest expense on FHLB advances increased $11,000, or
     3.0%, from $373,000 for the three months ended December 31, 1999 to
     $384,000 for the three months ended December 31, 2000.

     OTHER INCOME

         Total other income increased $76,000, or 17.4 %, from $437,000 for the
     three months ended December 31, 1999 to $513,000 for the same period in
     2000. This change was caused primarily by an increase of $61,000, or 31.1%,
     in customer service fees between periods. These service fees increased
     primarily due to increases in Visa Debit Card income, ATM surcharge income,
     and NOW account and NSF ("Non-sufficient funds") fees between periods. The
     net gains on securities available for sale was constant at $214,000 in both
     reporting periods.

     OPERATING EXPENSE

         Total operating expense increased $333,000, or 20.9%, from $1.6 million
     for the three months ended December 31, 1999 to $1.9 million for the three
     months ended December 31, 2000. Salaries and benefits, occupancy and
     equipment, and data processing expenses increased $200,000, or 24.7%,
     $35,000, or 10.1%, and $32,000, or 33.0%, respectively, between periods. No
     other individual expense category increased materially between periods.
     Much of the increase in operating expense was attributed to the Company's
     asset growth as management added staff and incurred costs to service the
     full range of retail and loan products added to the Bank's product lines.

     INCOME TAXES

         Income tax expense decreased not only because of the decline in pretax
     income, but also because of the decrease in the effective tax rates between
     periods. The effective income tax rates were 33.0% and 36.1% for the three
     months ended December 31, 2000 and 1999, respectively. The effective tax
     rates are below the statutory combined state and federal income tax rates
     because the Bank's two security corporations take advantage of the lower
     state tax rate afforded to these types of entities and additional tax
     preference items which are nontaxable.

                                       13
<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS (CONTINUED)

     COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2000
     AND 1999

     GENERAL

         Net income for the six months ended December 31, 2000 was $452,000 as
     compared to $502,000 for the six months ended December 31, 1999, a decrease
     of $50,000, or 10.0%. This decrease was primarily attributable to increases
     of $568,000, or 18.3%, and $38,000, or 47.5%, in total operating expenses
     and the loan loss provision, respectively. This decrease in net income was
     partially offset by increases of $280,000, or 8.4%, $127,000, or 33.8%, and
     $57,000, or 24.5% in net interest income, customer service fees, and net
     gains on securities available for sale, respectively.

     The interest rate spread and margin for the periods indicated are as
     follows:


<TABLE>
<CAPTION>
                                                                         Six months ended
                                                                            December 31,
                                                                  ---------------------------
                                                                      2000          1999
                                                                      ----          ----
                   <S>                                                <C>           <C>
                   Weighted average yield earned on:
                     Short-term investments                              6.66%         5.18%
                     Securities                                          7.06%         6.88%
                     Total loans, net                                    8.39%         8.19%
                                                                  ------------- -------------
                         All earning assets                              7.76%         7.52%

                   Weighted average rate paid on:
                     Deposits                                            4.46%         3.74%
                     Borrowed funds                                      5.99%         5.27%
                                                                  ------------- -------------
                         All interest-bearing liabilities                4.68%         3.97%
                                                                  ------------- -------------

                   Weighted average rate spread                          3.08%         3.52%
                                                                  ============= =============

                   Net interest margin                                   3.58%         3.92%
                                                                  ============= =============
</TABLE>

     INTEREST AND DIVIDEND INCOME

         Total interest and dividend income increased by $1.4 million, or 22.5%,
     from $6.4 million for the six months ended December 31, 1999 to $7.8
     million for the comparable period in 2000. This increase was primarily
     attributable to a $31.5 million, or 18.6%, increase in average earning
     assets between the two periods and a 24 basis point increase in the average
     yield on earning assets. The average balances in net loans increased $19.9
     million, or 22.6%, and total loan yield increased by 20 basis points to
     8.39%. The average balance for residential mortgages increased by $12.4
     million, 26.0%,while commercial and home equity loan increased $4.1
     million, or 13.0%, and $2.9 million, or 52.0%, respectively.

                                       14
<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS (CONTINUED)


         The average investment portfolio balance increased $10.6 million, or
     13.7 %, over this same timeframe and its portfolio yield improved by 18
     basis points to 7.06%. Most of the increase in the investment portfolio
     balance was in corporate debt obligations. In addition, the average balance
     in short-term investments increased $1.1 million, or 26.1%, between periods
     while the portfolio yield increased by 148 basis points.

     INTEREST EXPENSE

         Interest expense on deposits increased $1.1 million, or 45.7%, from
     $2.4 million for the six months ended December 31, 1999, to $3.4 million
     for the six months ended December 31, 2000. This increase was attributable
     to a $27.7 million, or 21.9%, increase in average interest-bearing deposit
     balances between periods, and an increase in average deposit rates over the
     same period from 3.74% to 4.46%. The increase in deposit interest rates was
     primarily due to the increase in interest rates by the Federal Reserve
     System between the two periods.

         The Bank decreased its use of borrowings from the FHLB as part of its
     management of interest rate risk. Average balances in these advances were
     $25.2 million during the six months ended December 31, 2000, a decrease of
     $761,000, or 2.9% from the six months ended December 31, 1999. Over this
     same timeframe, average borrowing rates increased from 5.27% to 5.99%.
     Interest expense on FHLB advances increased $71,000, or 10.4%, from
     $684,000 for the six months ended December 31, 1999 to $755,000 for the six
     months ended December 31, 2000.

     OTHER INCOME

         Total other income increased $218,000, or 33.4%, from $652,000 for
     the six months ended December 31, 1999 to $870,000 for the same period in
     2000. This change was caused primarily by increases of $57,000, or 24.5%,
     and $127,000, or 33.8%, respectively, in the net gains on sales of
     securities and customer service fees. Customer service fees increased
     primarily due to increases in Visa Debit Card income, ATM surcharge income,
     and NOW account and NSF fees between periods.

     OPERATING EXPENSE

         Total operating expense increased $568,000, or 18.3%, from $3.1 million
     for the six months ended December 31, 1999 to $3.7 million for the six
     months ended December 31, 2000. Salaries and benefits occupancy and
     equipment expenses, and data processing expenses increased $345,000 , or
     22.0%, $87,000, or 12.9%, and $72,000, or 38.1%, respectively. No other
     individual expense category increased materially between periods. Much of
     the increase in operating expense was attributed to the Company's asset
     growth as management added staff and incurred costs to service the full
     range of retail and loan products added to the Bank's product lines. In
     addition, the Bank installed a "Wide Area Network" (WAN) in order to
     centralize at one location the installation and monitoring of the bank's
     application software from one location.


                                       15
<PAGE>




                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS (CONTINUED)

     INCOME TAXES

         Income tax expense decreased not only because of the decline in pretax
     income, but also because of the decrease in the effective tax rates between
     periods. The effective income tax rates were 33.8% and 36.5% for the six
     months ended December 31, 2000 and 1999, respectively. The effective tax
     rates are below the statutory combined state and federal income tax rates
     because the Bank's two security corporations take advantage of the lower
     state tax rate afforded to these types of entities and additional tax
     preference items which are nontaxable.


     ASSET/LIABILITY MANAGEMENT

         A principal operating objective of the Bank is to produce stable
     earnings by achieving a favorable interest rate spread that can be
     sustained during fluctuations in prevailing interest rates. Since the
     Bank's principal interest-earning assets generally have longer terms to
     maturity than its primary source of funds, i.e., deposit liabilities,
     increases in general interest rates will generally result in an increase in
     the Bank's cost of funds before the yield on its asset portfolio adjusts
     upward. Financial institutions have generally sought to reduce their
     exposure to adverse changes in interest rates by attempting to achieve a
     closer match between the repricing periods of interest rate sensitive
     assets and liabilities. Such matching, however, is carefully monitored so
     as not to sacrifice net interest margin performance for the perfect
     matching of these interest rate sensitive instruments. The Bank has
     established an Asset/Liability Management Committee ("ALCO") made up of
     members of senior management to assess the asset/liability mix and
     recommend strategies that will enhance income while managing the Bank's
     vulnerability to changes in interest rate. This committee meets regularly
     to discuss interest rate conditions and potential product lines that would
     enhance the Bank's income performance.

         Certain strategies have been implemented to improve the match between
     interest rate sensitive assets and liabilities. These strategies include,
     but are not limited to: daily monitoring of the Bank's cash requirements,
     originating adjustable and fixed rate mortgage loans, both residential and
     commercial, for the Bank's own portfolio, managing the cost and structure
     of deposits, and generally using the matched borrowings to fund specific
     purchases of loan packages and large loan originations. Occasionally,
     management may choose to deviate from specific matching of maturities of
     assets and liabilities, if an attractive opportunity to enhance yield
     becomes available.

         Quarterly, ALCO modeling is performed with the assistance of an outside
     investment advisor which projects the Bank's financial performance over the
     next twenty four months using loan and deposit projections, projections of
     changes in interest rates, and anticipated changes in other income and
     operating expenses to reveal the full impact of the Bank's operating
     strategies on financial performance. The results of the ALCO process are
     reported to the Board at least on a quarterly basis.

     LIQUIDITY AND CAPITAL RESOURCES

         The Bank's primary sources of funds consist of deposits, borrowings,
     repayment and prepayment of loans, sales of loans and investments,
     maturities and early calls of investments, and funds provided from
     operations. While scheduled repayments of loans and maturities of
     investments are predictable sources of

                                       16

<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATION(CONTINUED)


     funds, deposit flows and loan prepayments are greatly influenced by the
     general level of interest rates, economic conditions, and competition. The
     Bank uses its liquidity resources primarily to fund existing and future
     loan commitments, to fund net deposit outflows, to invest in other
     interest-earning assets, to maintain liquidity, and to pay operating
     expenses.

         From time to time, the Bank utilizes advances from the FHLB primarily
     in connection with its management of the interest rate sensitivity of its
     assets and liabilities. Total advances outstanding at December 31, 2000
     amounted to $24.4 million. The Bank's ability to borrow from the FHLB is
     dependent upon the amount and type of collateral the Bank has to secure the
     loans. Such collateral consists of, but is not limited to, one-to-four
     family owner-occupied residential property securities guaranteed by the
     U.S. government or a government agency. As of December 31, 2000, the Bank's
     total borrowing capacity was $73.6 million.

         A major portion of the Bank's liquidity consists of cash and cash
     equivalents, short-term investments, U.S. Government and federal agency
     obligations, mortgage-backed securities, and other debt securities. The
     level of these assets is dependent upon the Bank's operating, lending, and
     financing activities during any given period.

         At December 31, 2000, the Bank had $3.0 million of outstanding
     commitments to originate loans. The Bank anticipates that it will have
     sufficient funds available to meet these commitments. Certificates of
     deposit, which are scheduled to mature in one year or less, totaled $82.8
     million at December 31, 2000. Based upon historical experience, management
     believes that a significant portion of such deposits will remain with the
     Bank.

         At December 31, 2000, the Company and the Bank exceeded all regulatory
     capital requirements.


     PART II - OTHER INFORMATION

     ITEM 1.      LEGAL PROCEEDINGS

         The Company is not involved in any pending legal proceedings other than
     routine legal proceedings occurring in the ordinary course of business
     which, in the aggregate, involved amounts which are believed by management
     to be immaterial to the financial condition and operations of the Company.

     ITEM 2. CHANGES IN SECURITIES

         Not applicable.

     ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

     ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not Applicable

                                       17

<PAGE>


                      SERVICE BANCORP, INC. AND SUBSIDIARY


     ITEM 5. OTHER INFORMATION

         None.

     ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

         There were no reports filed on Form 8-K.

                                       18

<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
     the Company has duly caused this report to be signed on its behalf by the
     undersigned thereunto duly authorized.

                              SERVICE BANCORP, INC.


     Date:        February 13, 2001      By:    /s/ Pamela J. Mozynski
                                            ---------------------------
                                                 Pamela J. Mozynski
                                         President and Chief Executive Officer


     Date:        February 13, 2001      By:   /s/ Warren W. Chase, Jr.
                                            ---------------------------
                                                 Warren W. Chase, Jr.
                                         Senior Vice President and Treasurer

                                       19