SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549



                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934




For Quarter Ended June 30, 2000                Commission File Number 0-20378

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

               Delaware                                    54-1592546
----------------------------------------            -------------------------
(State or other jurisdiction of                 (I.R.S. Employer Identification
 incorporation or organization)                             Number)

300 East Main Street, Suite 1350
          Norfolk, Virginia                                  23510
----------------------------------------           ------------------------
(Address of principal executive                           (Zip code)
      office)

      Registrant's telephone number, including area code:      (757) 446-6600

      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 issuer's classes
      of common stock, as of the latest practicable date.

Common Stock $.01 Par Value                                4,551,164
                                                      ------------------------
       Title of Class                             Number of Shares Outstanding
                                                       as of August 9, 2000



<PAGE>



                       CENIT BANCORP, INC. AND SUBSIDIARY

                                    Contents

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

                                                                           Page
                                                                           ----
PART I - FINANCIAL INFORMATION

Item 1

   Financial Statements

Consolidated Statement of Financial Condition as of June 30, 2000 (Unaudited)
and December 31, 1999........................................................ 1

Unaudited Consolidated Statement of Operations for the Three Months and
Six Months ended June 30, 2000 and June 30, 1999............................. 2

Unaudited Consolidated Statement of Comprehensive Income for the Six
Months Ended June 30, 2000 and June 30, 1999..................................3

Unaudited Consolidated Statement of Changes in Stockholders' Equity for
the Six Months ended June 30, 2000............................................4

Unaudited Consolidated Statement of Cash Flows for the Six Months
ended June 30, 2000 and June 30, 1999.........................................5

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

Item 2

   Management's Discussion and Analysis of Financial Condition and Results
   of Operations..............................................................6

Item 3

   Quantitative and Qualitative Disclosures About Market Risk................16

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.........................................................17

Item 6

   Exhibits and Reports on Form 8-K..........................................17

Signatures...................................................................17


<PAGE>



PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
<CAPTION>

                                     CENIT BANCORP, INC. AND SUBSIDIARY

                                   CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
                                   (Dollars in thousands, except per share data)

                                                      ASSETS

                                                                             (Unaudited)
                                                                           June 30, 2000        December 31, 1999
                                                                           -------------        -----------------
<S>                                                                           <C>                   <C>

Cash                                                                          $  25,626             $  17,554
Federal funds sold                                                               10,964                12,908
Securities available for sale at fair value (adjusted
   cost of $111,190 and $139,386, respectively)                                 109,614               138,298
Loans, net:
   Held for investment                                                          475,545               469,618
   Held for sale                                                                  3,990                 3,456
Interest receivable                                                               4,041                 4,067
Real estate owned, net                                                               69                   218
Federal Home Loan Bank stock, at cost                                             6,050                 7,100
Property and equipment, net                                                      13,375                13,757
Goodwill and other intangibles, net                                               3,118                 3,293
Other assets                                                                      3,639                 3,944
                                                                              ---------             ---------
                                                                              $ 656,031             $ 674,213
                                                                              =========             =========

                                       LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
   Deposits:
     Noninterest-bearing                                                      $  88,677             $  64,491
     Interest-bearing                                                           412,098               400,127
                                                                              ---------             ---------
        Total deposits                                                          500,775               464,618
   Advances from the Federal Home Loan Bank                                      86,000               142,000
   Securities sold under agreements to repurchase                                15,006                13,233
   Advance payments by borrowers for taxes and insurance                            754                   565
   Other liabilities                                                              3,097                 2,532
                                                                              ---------             ---------
        Total liabilities                                                       605,632               622,948
                                                                              ---------             ---------
Stockholders' equity:
   Preferred stock, $.01 par value; authorized 3,000,000
     shares; none outstanding                                                         -                     -
   Common stock, $.01 par value; authorized 7,000,000 shares;
     issued and outstanding 4,623,498 and 4,751,644 shares
     at June 30, 2000 and December 31, 1999, respectively                            46                    48
   Additional paid-in capital                                                    11,366                12,964
   Retained earnings - substantially restricted                                  43,824                42,914
   Common stock acquired by Employee Stock Ownership Plan (ESOP)                 (3,761)               (3,862)
   Common stock acquired by Management Recognition
     Plan (MRP)                                                                     (99)                 (125)
   Accumulated other comprehensive (loss) income,
     net of income taxes                                                           (977)                 (674)
                                                                              ---------             ---------
     Total stockholders' equity                                                  50,399                51,265
                                                                              ---------             ---------
                                                                              $ 656,031             $ 674,213
                                                                              =========             =========

<FN>

The notes to unaudited consolidated financial statements are an integral part of
this statement.
</FN>
</TABLE>

                                                         1


<PAGE>

<TABLE>
<CAPTION>
                                         CENIT BANCORP, INC. AND SUBSIDIARY

                                   UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
                                    (Dollars in thousands, except per share data)

                                                                Three months                        Six Months
                                                                    Ended                             Ended
                                                            --------------------             ----------------------
                                                                  June 30,                           June 30,
                                                            2000            1999              2000             1999
                                                            ----            ----              ----             ----
<S>                                                     <C>           <C>                <C>              <C>

Interest and fees on loans                              $  9,322       $   9,198         $  18,454        $  18,643
Interest on mortgage-backed certificates                   1,406             258             2,834              532
Interest on investment securities                            665             809             1,441            1,579
Dividends and other interest income                          258             303               520              541
                                                        --------       ---------         ---------        ---------
     Total interest income                                11,651          10,568            23,249           21,295
                                                        --------       ---------         ---------        ---------
Interest on deposits                                       4,498           4,170             8,758            8,367
Interest on borrowings                                     1,770           1,154             3,714            2,336
                                                        --------       ---------         ---------        ---------
     Total interest expense                                6,268           5,324            12,472           10,703
                                                        --------       ---------         ---------        ---------
     Net interest income                                   5,383           5,244            10,777           10,592
Provision for loan losses                                      -              22                29               36
                                                        --------       ---------         ---------        ---------
     Net interest income after provision
                  for loan losses                          5,383           5,222            10,748           10,556
                                                        --------       ---------         ---------        ---------
Other income:
     Deposit fees                                            666             624             1,374            1,283
     Merchant processing fees                                607             677             1,117            1,191
     Commercial mortgage brokerage fees                        2              10                 2              168
     Gains on sales of loans and securities, net             144             192               275              432
     Other                                                   217             321               461              580
                                                        --------       ---------         ---------        ---------
                  Total other income                       1,636           1,824             3,229            3,654
                                                        --------       ---------         ---------        ---------

Other expenses:
     Salaries and employee benefits                        1,971           2,134             4,267            4,571
     Equipment, data processing and supplies                 786             744             1,593            1,491
     Net occupancy expense of premises                       556             522             1,128            1,048
     Merchant processing                                     464             553               854              982
     Professional fees                                       188             217               345              391
     Expenses, gains/losses on sales and provision
       for losses on real estate owned, net                   33              27                39               35
     Other                                                   610             643             1,170            1,197
                                                        --------       ---------         ---------        ---------
                  Total other expenses                     4,608           4,840             9,396            9,715
                                                        --------       ---------         ---------        ---------

Income before income taxes                                 2,411           2,206             4,581            4,495
Provision for income taxes                                   868             794             1,649            1,618
                                                        --------       ---------         ---------        ---------

     Net income                                         $  1,543       $   1,412         $   2,932        $   2,877
                                                        ========       =========         =========        =========
Earnings per share:
     Basic                                              $    .34       $     .31         $     .65        $     .63
                                                        ========       =========         =========        =========
     Diluted                                            $    .34       $     .30         $     .64        $     .62
                                                        ========       =========         =========        =========

Dividends per common share                              $    .15       $     .15         $     .30        $     .30
                                                        ========       =========         =========        =========
</TABLE>
[FN]
The notes to unaudited consolidated financial statements are an integral part of
this statement.
</FN>

                                                         2


<PAGE>

<TABLE>
<CAPTION>
                                          CENIT BANCORP, INC. AND SUBSIDIARY

                               UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                (Dollars in thousands)

                                                                                                Six Months
                                                                                                   Ended
                                                                                                 June 30,
                                                                                       -------------------------
                                                                                         2000              1999
                                                                                        ------            ------
<S>                                                                                    <C>               <C>

Net income                                                                             $  2,932          $ 2,877
                                                                                       --------          -------

Other comprehensive income (loss), before income taxes:
   Unrealized gains (losses) on securities available for sale
     Unrealized holding losses arising during the period                                   (504)            (952)
     Less: reclassification adjustment for gains included in net income                      16                -
                                                                                       --------          -------

Other comprehensive loss, before income taxes                                              (488)            (952)

Income tax benefit related to items of other comprehensive loss                             185              362
                                                                                       --------          -------

Other comprehensive loss, net of income taxes                                              (303)            (590)
                                                                                       --------          -------

Comprehensive income                                                                   $  2,629          $ 2,287
                                                                                       ========          =======






























<FN>
The notes to unaudited consolidated financial statements are an integral part of
this statement.
</FN>
</TABLE>

                                                           3


<PAGE>
<TABLE>
<CAPTION>


                                          CENIT BANCORP, INC. AND SUBSIDIARY

                          UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                                            Six Months Ended June 30, 2000
                                                (Dollars in thousands)

                                                                                              Accumulated
                                                                                   Common       Other
                                                                                    Stock     Comprehensive
                                               Common      Additional             Acquired    Income (Loss),
                                 Common         Stock       Paid-In   Retained     by ESOP    Net of Income
                               Stock Shares    Amount       Capital   Earnings     and MRP       Taxes        Total
                               ------------    ------      ---------  --------     -------     ---------     --------
<S>                               <C>            <C>       <C>        <C>         <C>          <C>          <C>
Balance, December 31, 1999        4,751,644      $ 48      $12,964    $42,914     $(3,987)     $ (674)      $ 51,265


Comprehensive income                      -         -            -      2,932          -         (303)         2,629


Cash dividends declared                   -         -            -     (2,022)         -            -         (2,022)


Exercise of stock options and
 related tax benefits                 4,854        (1)          39          -           -           -             38


Stock repurchases                  (133,000)       (1)      (1,604)         -           -           -         (1,605)


Other                                     -         -          (33)         -         127           -             94
                                  ---------      ----      -------    -------     -------      ------       --------


Balance, June 30, 2000            4,623,498      $ 46      $11,366    $43,824     $(3,860)     $ (977)      $ 50,399
                                  =========      ====      =======    =======     =======      ======       ========






























<FN>
The notes to unaudited consolidated financial statements are an integral part of
this statement.
</FN>
</TABLE>

                                                           4


<PAGE>
<TABLE>
<CAPTION>

                                        CENIT BANCORP, INC. AND SUBSIDIARY

                                  UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

                                              (Dollars in thousands)

                                                                              Six months ended June 30,
                                                                             --------------------------
                                                                              2000               1999
                                                                              ----               ----
<S>                                                                      <C>                  <C>
Cash flows from operating activities:

   Net income                                                            $   2,932           $  2,877
   Add (deduct) items not affecting cash in the period:
     Provision for loan losses                                                  29                 36
     Provision for losses on real estate owned                                  26                 22
     Amortization of loan yield adjustments                                    442                349
     Depreciation, amortization and accretion, net                             923                855
     Net gains on sales/disposals of:
        Securities                                                             (16)                 -
        Loans                                                                 (259)              (432)
        Real estate, property and equipment                                    (56)               (96)
     Proceeds from sales of loans held for sale                             17,867             33,430
     Originations of loans held for sale                                   (18,149)           (32,438)
     Change in assets/liabilities:
        Decrease in interest receivable and other assets                       439                206
        Increase (decrease) in other liabilities                               154             (3,136)
                                                                         ---------           --------
        Net cash provided by operating activities                            4,332              1,673
                                                                         ---------           --------
Cash flows from investing activities:

   Purchases of securities available for sale                               (5,538)           (31,925)
   Principal repayments on securities available for sale                     7,553              3,876
   Proceeds from maturities of securities available for sale                 8,000              9,350
   Proceeds from sales of securities available for sale                     18,193                  -
   Net (increase) decrease in loans held for investment                     (6,230)            11,321
   Net proceeds on sales of real estate owned                                  (40)               215
   Additions to real estate owned                                               (5)                 -
   Purchases of Federal Home Loan Bank stock                                  (250)              (400)
   Redemption of Federal Home Loan Bank stock                                1,300              1,566
   Proceeds from sale of property and equipment                                 11                  1
   Purchases of property and equipment                                        (341)              (456)
                                                                         ---------           --------
     Net cash provided by (used for) investing activities                   22,653             (6,452)
                                                                         ---------           --------
Cash flows from financing activities:
   Proceeds from exercise of stock options and warrants                         22                 77
   Net increase (decrease) in deposits                                      36,157            (15,620)
   Proceeds from Federal Home Loan Bank advances                            48,000             41,000
   Repayment of Federal Home Loan Bank advances                           (104,000)           (41,000)
   Common stock repurchases                                                 (1,605)              (373)
   Net increase in securities sold under agreement
     to repurchase and federal funds purchased                               1,773              3,738
   Cash dividends paid                                                      (1,360)            (1,370)
   Other, net                                                                  156                143
                                                                         ---------           --------
        Net cash used for financing activities                             (20,857)           (13,405)
                                                                         ---------           --------
Increase (decrease) in cash and cash equivalents                             6,128            (18,184)
Cash and cash equivalents, beginning of period                              30,462             56,945
                                                                         ---------           --------
Cash and cash equivalents, end of period                                 $  36,590           $ 38,761
                                                                         =========           ========
Supplemental disclosures of cash flow  information:
   Cash paid during the period for interest                              $   4,489           $  3,244
   Cash paid during the period for income taxes                              1,471              1,882
Schedule of noncash investing and financing activities:

   Real estate acquired in settlement of loans                           $     122           $    199
   Loans to facilitate sale of real estate owned                               144                  -





<FN>
The notes to unaudited consolidated financial statements are an integral part of
this statement.
</FN>
</TABLE>

                                                         5


<PAGE>



                       CENIT BANCORP, INC. AND SUBSIDIARY

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------------------------------------------


Note 1 - Basis of Presentation

    The  accompanying  unaudited  consolidated  financial  statements  have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include  all of the  disclosures  and notes  required by  accounting  principles
generally  accepted in the United States. In the opinion of the management,  all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair  presentation  have been  included.  The results of operations  for the six
month  periods  ended June 30, 2000 and 1999 are not  necessarily  indicative of
results that may be expected for the entire year or any interim periods. Certain
previously  reported  amounts have been  reclassified  to agree with the current
presentation.  The interim  financial  statements  should be read in conjunction
with the December 31, 1999 consolidated  financial  statements of CENIT Bancorp,
Inc. (the "Company").

Note 2 - Per Share Data

    Basic  earnings  per  share is  calculated  using  weighted  average  shares
outstanding.  For the six month and three  month  period  ended  June 30,  2000,
weighted  average shares used to compute basic earnings per share were 4,516,812
and 4,490,362,  respectively. For the six months and three months ended June 30,
1999,  weighted  average  shares used to compute  basic  earnings per share were
4,750,589 and 4,575,103, respectively.

    Diluted earnings per share is calculated by adding common stock  equivalents
to the weighted  average shares  outstanding.  For the six month and three month
period  ended June 30, 2000,  weighted  average  shares used to compute  diluted
earnings  per share were  4,567,611  and  4,535,545,  respectively.  For the six
months and three  months ended June 30, 1999,  weighted  average  shares used to
compute diluted earnings per share were 4,655,412 and 4,656,375, respectively.



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

General

     The  Company's  business  currently  consists  of the  business of its sole
subsidiary, CENIT Bank (the "Bank"). The principal business of the Bank consists
of attracting retail deposits from the general public in its market area through
a variety of deposit  products and  investing  these funds in  commercial,  real
estate  and  consumer   loans.   The  Bank  also   invests  in   mortgage-backed
certificates,  securities  issued  by the  U.S.  Treasury  and  U.S.  Government
agencies,   federal  funds  sold,  Federal  Home  Loan  Bank  stock,  and  other
investments permitted by applicable laws and regulations.

Financial Condition Of The Company

Total Assets

     At June 30, 2000, the Company had total assets of $656.0 million,  compared
to $674.2 million at December 31, 1999, a decrease of $18.2 million, or 2.7%.

Securities Available for Sale

     Securities  available for sale totaled  $109.6 million at June 30, 2000 and
are  comprised  of  mortgage-backed   certificates,   U.  S.  Government  agency
securities,  and other debt  securities.  The net decrease of $28.7 million,  or
20.7% from the December 31, 1999 balance of $138.3  million  resulted  primarily
from the sale of $18.2 million of investment and mortgage-backed  securities and
$15.6 million in maturities and principal  repayments,  offset partially by $5.5
million in purchases.  The securities  sold consisted of $11.0 million in United
States  Treasury  and Agency  securities  and $7.2  million in  adjustable  rate
mortgage-backed securities with average yields of 5.9% and 7.7%, respectively.

                                        6


<PAGE>



Loans

     The balance of net loans held for investment increased to $475.5 million at
June 30, 2000 from  $469.6  million at December  31,  1999,  an increase of $5.9
million or 1.3%.  The increase was primarily due to an $8.6 million  increase in
the  Company's  "Core  Banking  Loans,"  which  consist  of its  loans  held for
investment  portfolio  other  than  first  mortgage   single-family  loans.  The
Company's  focus on Core Banking Loans growth has resulted in Core Banking Loans
representing  54% of gross  loans at June 30, 2000 as compared to 53% and 51% at
December 31, 1999 and June 30, 1999, respectively.  The increase in Core Banking
Loans  was  partially  offset  by a $2.8  million  decrease  in  single-  family
residential loans.

                                        7


<PAGE>

    The following  table sets forth the  composition  of the Company's  loans in
dollar  amounts  and as a  percentage  of the  Company's  total  loans  held for
investment at the dates indicated.

<TABLE>
<CAPTION>
                                                           June 30, 2000                   December 31, 1999
                                                       ---------------------             ----------------------
                                                                         (Dollars in Thousands)

                                                       Amount        Percent              Amount        Percent
                                                       ------        -------              ------        -------
<S>                                                  <C>             <C>               <C>              <C>
Real estate loans:
   Residential permanent 1- to 4-family:

     Adjustable rate                                 $  150,107       28.92%            $  149,163       29.44%
     Fixed rate
       Conventional                                      65,666       12.65                 69,055       13.63
       Guaranteed by VA or insured by FHA                 2,516         .48                  2,823         .56
                                                     ----------      ------             ----------      ------
     Total permanent 1- to 4-family                     218,289       42.05                221,041       43.63
   Residential permanent 5 or more family                 8,423        1.62                  8,082        1.59
                                                     ----------      ------             ----------      ------
     Total permanent residential loans                  226,712       43.67                229,123       45.22
                                                     ----------      ------             ----------      ------
   Commercial real estate loans:
     Hotels                                               7,914        1.53                 10,711        2.11
     Office and warehouse facilities                     39,312        7.57                 38,908        7.68
     Retail facilities                                   24,518        4.72                 22,098        4.36
     Other                                                8,522        1.64                 10,007        1.97
                                                     ----------      ------             ----------      ------
     Total commercial real estate loans                  80,266       15.46                 81,724       16.12
                                                     ----------      ------             ----------      ------
   Construction loans:
     Residential 1- to 4-family                          50,635        9.75                 48,912        9.65
     Residential 5 or more family                         7,718        1.49                  9,616        1.90
     Nonresidential                                      14,711        2.83                  7,685        1.52
                                                     ----------      ------             ----------      ------
     Total construction loans                            73,064       14.07                 66,213       13.07
                                                     ----------      ------             ----------      ------

   Land acquisition and development loans:

     Consumer lots                                        3,755         .72                  3,566         .70
     Acquisition and development                         20,534        3.96                 18,065        3.57
                                                     ----------      ------             ----------      ------
     Total land acquisition and development
       loans                                             24,289        4.68                 21,631        4.27
                                                     ----------      ------             ----------      ------
     Total real estate loans                            404,331       77.88                398,691       78.68
                                                     ----------      ------             ----------      ------
Consumer loans:
   Boats                                                  2,454         .47                  2,855         .56
   Home equity and second mortgage                       59,721       11.50                 56,469       11.14
   Other                                                 13,029        2.52                 11,968        2.37
                                                     ----------      ------             ----------      ------
     Total consumer loans                                75,204       14.49                 71,292       14.07
                                                     ----------      ------             ----------      ------
Commercial business loans                                39,628        7.63                 36,739        7.25
                                                     ----------      ------             ----------      ------
     Total loans                                        519,163      100.00%               506,722      100.00%
                                                     ----------      ======             ----------      ======
Less:
   Allowance for loan losses                              3,842                              3,860
   Undisbursed portion of construction and
     acquisition and development loans                   41,279                             34,714
   Unearned discounts, premiums, and loan fees, net      (1,503)                            (1,470)
                                                     ----------                         ----------
                                                         43,618                             37,104
                                                     ----------                         ----------
Total loans, net                                     $  475,545                         $  469,618
                                                     ==========                         ==========

</TABLE>

                                        8


<PAGE>



Deposits

    Total  deposits  increased  $36.2 million,  or 7.8%,  from $464.6 million at
December 31, 1999 to $500.8  million at June 30, 2000.  This increase was mainly
attributed  to the  growth  in  checking,  savings  and  money  market  deposits
(collectively,   "Transaction   Deposits")  of  $31.1  million,  or  14.3%.  The
noninterest-bearing  portion of  Transaction  Deposits  grew $24.2  million,  or
37.5%, while interest-bearing  savings,  checking and money market deposits grew
$6.9 million,  or 4.5%.  The Company  continues to focus on growing  Transaction
Deposits as part of its banking initiatives. Transaction Deposits as of June 30,
2000 represented 50% of total deposits compared to 47% at December 31, 1999.

Capital

    The Company's and the Bank's capital ratios exceeded  applicable  regulatory
requirements at June 30, 2000.

    On April 24, 2000,  the Board of Directors of the Company gave the Company's
management  authorization to repurchase  approximately  233,000 of the Company's
common stock (the "2000  Authorization")  to supplement the remaining balance of
the  July,  1999   authorization   to  repurchase   150,000  shares  (the  "1999
Authorization").  During the second quarter of 2000,  the Company  completed the
repurchase of shares under the 1999  Authorization and repurchased 45,000 shares
under the 2000 Authorization. Through August 9, 2000, the Company repurchased an
additional  74,500  shares.   The  Company  is  not  obligated  to  conduct  the
repurchases to the full extent of this authorization, and the decision to do so,
as well as the timing of any repurchase, will depend on a variety of factors.

Asset Quality

    Nonperforming  Assets.  Nonperforming assets consist of nonperforming loans,
real estate  acquired in  settlement  of loans  ("REO"),  and other  repossessed
assets. Generally the Company does not accrue interest on loans that are 90 days
or more past due,  with the  exception of certain  VA-guaranteed  or FHA insured
one- to four-family  permanent  mortgage loans,  certain credit card loans,  and
matured loans for which the borrowers are still making required monthly payments
of interest,  or principal and  interest,  and with respect to which the Bank is
negotiating extensions or refinancings with the borrowers.

                                        9


<PAGE>



    The following table sets forth information about the Company's nonperforming
loans, REO, and other repossessed assets at the dates indicated.
<TABLE>
<CAPTION>

                                                                        June 30,                 December 31,
                                                                         2000                       1999
                                                                       ---------                 ----------
                                                                              (Dollars in Thousands)
<S>                                                                      <C>                        <C>
Nonperforming loans:
   Real estate loans:
     Permanent residential 1- to 4-family
       Nonaccrual                                                        $  185                     $    54
       Accruing loans 90 days or more past due                              680                          87
                                                                         ------                     -------
         Total                                                              865                         141
                                                                         ------                     -------

   Construction loans:
     Nonaccrual                                                              85                           -
                                                                         ------                     -------
       Total                                                                 85                           -
                                                                         ------                     -------

   Land acquisition and development loans:

       Nonaccrual                                                            48                          48
                                                                         ------                     -------
         Total                                                               48                          48
                                                                         ------                     -------

   Consumer loans:
       Nonaccrual

         Boats                                                                8                          10
         Home equity and second mortgage                                     34                          49
         Other                                                               17                          20
                                                                         ------                     -------
         Total                                                               59                          79
                                                                         ------                     -------

   Commercial business loans:
       Nonaccrual                                                            13                         111
                                                                         ------                     -------
         Total                                                               13                         111
                                                                         ------                     -------

Total nonperforming loans:
       Nonaccrual                                                           390                         292
       Accruing loans 90 or more days past due                              680                          87
                                                                         ------                     -------
         Total                                                            1,070                         379

Real estate owned, net                                                       69                         218
Other repossessed assets, net                                                 -                           6
                                                                         ------                     -------

   Total nonperforming assets, net                                       $1,139                     $   603
                                                                         ======                     =======

   Total troubled debt restructurings                                         -                           -
                                                                         ------                     -------

   Total nonperforming assets, net, and
     troubled debt restructurings                                        $1,139                     $   603
                                                                         ======                     =======

   Total nonperforming assets, net, and troubled
     debt restructurings, to total assets                                   .17%                        .09%
                                                                         ======                     =======

</TABLE>


                                       10


<PAGE>



     Allowance for Loan Losses.  The following table sets forth activity of the
allowance for loan losses for the periods indicated.

                                               Six months ended June 30,
                                          ----------------------------------
                                            2000                        1999
                                          -------                     -------
                                                 (Dollars in Thousands)

Balance at beginning of period            $ 3,860                     $ 4,024
Provision for loan losses                      29                          36
Losses charged to allowance                   (87)                       (195)
Recovery of prior losses                       40                          24
                                          -------                     -------
Balance at end of period                  $ 3,842                     $ 3,889
                                          =======                     =======

     The  Company's  coverage  ratio (total  allowance  for loan losses to total
nonperforming  loans) was approximately  three times, ten times, and three times
the nonperforming  loans at June 30, 2000, December 31, 1999, and June 30, 1999,
respectively.  For the six months  ended June 30,  2000 and June 30,  1999,  the
difference  between  the  provision  for loan  losses and net loans  charged off
during the respective  period relates  primarily to loan types in which the Bank
is no longer  active and for which  provisions  for loan losses have  previously
been made. Management believes that these provisions are adequate.

Average Balance Sheets

     The  following  tables set forth,  for the periods  indicated,  information
regarding: (i) the total dollar amounts of interest income from interest-earning
assets  and the  resulting  average  yields;  (ii) the total  dollar  amounts of
interest  expense from  interest-bearing  liabilities and the resulting  average
costs;  (iii) net interest income;  (iv) interest rate spread;  (v) net interest
position;  (vi) the net yield earned on  interest-earning  assets; and (vii) the
ratio of total interest-earning  assets to total  interest-bearing  liabilities.
Average  balances shown in the following tables have been calculated using daily
average balances.

                                       11


<PAGE>
<TABLE>
<CAPTION>

                                                    For the Three Months                 For the Three Months
                                                            Ended                                Ended
                                                        June 30, 2000                        June 30, 1999
                                                ----------------------------         ----------------------------
                                                Average                Yield/        Average                Yield/
                                                Balance   Interest      Cost         Balance   Interest      Cost
                                                -------   --------     -----         -------   --------     -----
                                                                     (Dollars in thousands)
<S>                                          <C>           <C>          <C>        <C>          <C>           <C>

Interest-earning assets:
     Loans (1)                               $  471,974    $ 9,322      7.90%      $  487,072   $  9,198      7.55%
     Mortgage-backed certificates                81,313      1,406      6.92           14,209        258      7.27
     Investment securities                       47,331        665      5.62           56,312        809      5.75
     Federal funds sold                           9,085        142      6.25           19,456        230      4.73
     Federal Home Loan Bank stock                 6,050        116      7.67            3,882         73      7.52
                                             ----------    -------                 ----------   --------
        Total interest-earning assets           615,753     11,651      7.57          580,931     10,568      7.28
                                             ----------    -------                 ----------   --------

Noninterest-earning assets:
     REO                                            123                                   375
     Other                                       37,402                                37,488
                                             ----------                            ----------
        Total noninterest-earning assets         37,525                                37,863
                                             ----------                            ----------
             Total assets                    $  653,278                            $  618,794
                                             ==========                            ==========

Interest-bearing liabilities:
     Passbook and statement savings          $   31,804        189      2.38%      $   35,079        213      2.43%
     Checking accounts                           43,648        148      1.36           40,683        149      1.47
     Money market deposit accounts               81,528        742      3.64           72,802        623      3.42
     Certificates of deposit                    255,117      3,419      5.36          256,105      3,185      4.97
                                             ----------    -------                 ----------   --------
        Total interest-bearing deposits         412,097      4,498      4.37          404,669      4,170      4.12
                                             ----------    -------                 ----------   --------
     Advances from the Federal Home

        Loan Bank                                99,516      1,574      6.33           75,319        973      5.17
     Securities sold under agreements
        to repurchase                            14,914        196      5.26           18,314        181      3.95
                                             ----------    -------                 ----------   --------
        Total borrowings                        114,430      1,770      6.19           93,633      1,154      4.93
                                             ----------    -------                 ----------   --------
        Total interest-bearing liabilities      526,527      6,268      4.76          498,302      5,324      4.27
                                             ----------    -------                 ----------   --------

Noninterest-bearing liabilities:
     Deposits                                    70,907                                65,353
     Other liabilities                            5,018                                 5,012
                                             ----------                            ----------
        Total noninterest-bearing liabilities    75,925                                70,365
                                             ----------                            ----------
             Total liabilities                  602,452                               568,667
                                             ----------                            ----------

Stockholders' equity                             50,826                                50,127
                                             ----------                            ----------
Total liabilities and stockholders' equity   $  653,278                            $  618,794
                                             ==========                            ==========

Net interest income/interest rate spread                   $ 5,383      2.81%                   $  5,244      3.01%
                                                           =======      ====                    ========      ====

Net interest position/net interest margin    $   89,226                 3.50%      $   82,629                 3.61%
                                             ==========                 ====       ==========                 ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities        116.95%                               116.58%
                                                 ======                                ======
<FN>
(1) Includes nonaccrual loans and loans held for sale.
</FN>
</TABLE>

                                                         12


<PAGE>
<TABLE>
<CAPTION>

                                                     For the Six Months                   For the Six Months
                                                            Ended                                Ended
                                                        June 30, 2000                        June 30, 1999
                                             -------------------------------       -------------------------------
                                              Average                 Yield/        Average                 Yield/
                                              Balance     Interest     Cost         Balance    Interest      Cost
                                             ----------  ---------    ------       ---------   --------     ------
                                                                     (Dollars in thousands)
<S>                                          <C>          <C>           <C>        <C>         <C>            <C>
Interest-earning assets:
     Loans (1)                               $  471,054   $ 18,454      7.84%      $  493,598  $  18,643      7.55%
     Mortgage-backed certificates                82,277      2,834      6.89           14,390        532      7.39
     Investment securities                       51,074      1,441      5.64           54,813      1,579      5.76
     Federal funds sold                           9,456        280      5.92           15,981        376      4.71
     Federal Home Loan Bank stock                 6,226        240      7.71            4,443        165      7.43
                                             ----------   --------                 ----------  ---------
        Total interest-earning assets           620,087     23,249      7.50          583,225     21,295      7.30
                                             ----------   --------                 ----------  ---------

Noninterest-earning assets:
     REO                                            153                                   381
     Other                                       37,100                                37,426
                                             ----------                            ----------
        Total noninterest-earning assets         37,253                                37,807
                                             ----------                            ----------
             Total assets                    $  657,340                            $  621,032
                                             ==========                            ==========

Interest-bearing liabilities:
     Passbook and statement savings              31,795        379      2.38%          35,532        431      2.43%
     Checking accounts                           42,587        295      1.38           39,149        282      1.44
     Money market deposit accounts               80,684      1,453      3.60           73,796      1,249      3.39
     Certificates of deposit                    254,126      6,631      5.22          257,253      6,405      4.98
                                             ----------   --------                 ----------  ---------
        Total interest-bearing deposits         409,192      8,758      4.28          405,730      8,367      4.12
                                             ----------   --------                 ----------  ---------
     Advances from the Federal Home

        Loan Bank                               110,885      3,347      6.04           78,392      2,010      5.13
     Securities sold under agreements
        to repurchase                            14,710        367      4.99           16,770        326      3.89
                                             ----------   --------                 ----------  ---------
        Total borrowings                        125,595      3,714      5.91           95,162      2,336      4.91
                                             ----------   --------                 ----------  ---------
        Total interest-bearing liabilities      534,787     12,472      4.66          500,892     10,703      4.27
                                             ----------   --------                 ----------  ---------

Noninterest-bearing liabilities:
     Deposits                                    66,435                                64,890
     Other liabilities                            5,155                                 5,276
                                             ----------                            ----------
        Total noninterest-bearing liabilities    71,590                                70,166
                                             ----------                            ----------
             Total liabilities                  606,377                               571,058
                                             ----------                            ----------

Stockholders' equity                             50,963                                49,974
                                             ----------                            ----------
Total liabilities and stockholders' equity   $  657,340                            $  621,032
                                             ==========                            ==========

Net interest income/interest rate spread                  $ 10,777      2.84%                  $  10,592      3.03%
                                                          ========      ====                   =========      ====

Net interest position/net interest margin    $   85,300                 3.48%      $   82,333                 3.63%
                                             ==========                 ====       ==========                 ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities        115.95%                           116.44%
                                                 ======                            ======
<FN>
(1) Includes nonaccrual loans and loans held for sale.
</FN>
</TABLE>

                                                         13


<PAGE>



Comparison  of  Operating  Results for the Three  Months Ended June 30, 2000 and
June 30, 1999.

General

     The Company's  pre-tax  income  increased  $205,000 to $2.4 million for the
three  months  ended June 30, 2000 from $2.2  million for the three months ended
June 30, 1999. The increase was primarily  attributed to a $161,000  quarter-to-
quarter  increase  in net  interest  income  after  provision  for loan  losses.
Additionally, other expenses net of other income decreased $44,000 for the three
months ended June 30, 2000 as compared to the same period of 1999.

Net Interest Income

     The Company's  interest income before  provision for loan losses  increased
$139,000 or 2.7% to $5.4 million for the second quarter of 2000 compared to $5.2
million for the second  quarter of 1999. A $1.1  million,  or 10.2%  increase in
interest income was substantially offset by an increase of $944,000, or 17.7% in
interest  expense for the second  quarter of 2000 compared to the same period in
1999.

     Interest on loans  increased  $124,000,  or 1.3%,  to $9.3  million for the
second quarter 2000 compared to $9.2 million for the same period in 1999.  While
the  average  loan yield  increased  to 7.90% for the second  quarter of 2000 as
compared  to 7.55%  for the  same  period  in 1999,  the  average  loan  balance
decreased  $15.1 million to $472.0  million in the second  quarter of 2000.  The
decrease in the average loan balance was primarily attributable to net portfolio
pay  downs.  The  higher  interest  rate  environment  also  contributed  to the
increased  loan yields in the three months ended June 30, 2000,  compared to the
three months ended June 30, 1999.

     Interest  on  the  Company's  portfolio  of  mortgage-backed   certificates
increased $1.1 million, to $1.4 million for the quarter ended June 30, 2000 from
$258,000 for the comparable  1999 period.  The average  balance of the portfolio
increased  $67.1  million  from $14.2  million in the second  quarter of 1999 to
$81.3  million  in the second  quarter  of 2000.  This  increase  was  primarily
attributable to the purchase of $51.8 million in  mortgage-backed  securities in
the third quarter of 1999.

     Interest on deposits increased by $328,000,  or 7.9%, for the quarter ended
June 30, 2000  compared to the quarter  ended June  30,1999.  This  increase was
attributed   to  both  a  substantial   increase  in  the  average   balance  of
interest-bearing  checking, savings and money market deposits and an increase in
the overall cost of deposits. The average balance of interest-bearing  checking,
savings and money market  deposits  increased by $8.4 million,  or 5.7%, for the
second  quarter of 2000 compared to the same period in 1999. The average cost of
deposits increased to 4.37% for the three months ended June 30, 2000 compared to
4.12% for the three  months  ended June 30,  1999.  The  increase in the average
balance of interest-bearing  checking,  savings and money market deposits is the
result of the Company's  continued focus on the growth of this line of business.
The higher interest rate environment  contributed to the increase in the average
cost of deposits.

     Interest on borrowings  increased  $616,000 for the three months ended June
30, 2000 compared to the same period in 1999.  This  increase was  substantially
due to a $24.2 million  increase in the average balance of advances from Federal
Home Loan Bank to $99.5 million for the second quarter of 2000 compared to $75.3
million  for  the  comparable  period  in  1999.  The  overall  average  cost of
borrowings  for the second quarter of 2000 increased to 6.19% from 4.93% for the
same  period  in1999.  A major  factor  contributing  to this  increase  was the
conversion  of a $60 million,  5.18% fixed rate advance  outstanding  during the
second quarter of 1999 to an average variable rate of 6.6% in the second quarter
of 2000.

Provision for Loan Losses

     The Company had no provision for loan losses for the second quarter of 2000
compared to $22,000 for the second quarter of 1999. Net loans  recovered  during
the three  months  ended June 30, 2000 were  $8,000,  compared to $77,000 in net
loans charged off for the comparable 1999 period.

                                       14


<PAGE>



Other Income and Expenses

     Net other income and expense remained substantially the same for the second
of 2000  compared  to the same  period in 1999.  Increases  in  deposit  and net
merchant  processing  fees were  offset by a  decrease  in the gains on sales of
loans.

Comparison of Operating  Results for the Six Months Ended June 30, 2000 and June
30, 1999.

General

     The Company's  pre-tax income increased $86,000 to $4.6 million for the six
months  ended June 30, 2000 from $4.5  million for the six months ended June 30,
1999.  The  increase  was  primarily  attributed  to a $192,000  increase in net
interest income after provision for loan losses offset by a $106,000 increase in
other expenses net of other income.

Net Interest Income

     The Company's  interest income before  provision for loan losses  increased
$185,000 or 1.7% to $10.8  million for the first half of 2000  compared to $10.6
million for the first half of 1999. A $2.0 million  increase in interest  income
was partially offset by a $1.8 million increase in interest expense.

     Interest on loans  decreased  $189,000,  or 1.0%,  to $18.5 million for the
first six months of 2000  compared to $18.6 million for the same period in 1999.
While the average loan yield increased to 7.84% for the first six months of 2000
as  compared  to 7.55% for the same period in 1999,  the  average  loan  balance
decreased  $22.5  million  to  $471.1  million  in the first  half of 2000.  The
decrease in the average loan balance was primarily attributable to net portfolio
pay  downs.  The  higher  interest  rate  environment  also  contributed  to the
increased  loan  yields  in the first six  months of 2000  compared  to the same
period in 1999.

     Interest  on  the  Company's  portfolio  of  mortgage-backed   certificates
increased  $2.3 million,  to $2.8 million for the six months ended June 30, 2000
from  $532,000  for the  comparable  1999  period.  The  average  balance of the
portfolio  increased  $67.9 million from $14.4 million in the first half of 1999
to  $82.3  million  in the  first  half of 2000.  This  increase  was  primarily
attributable to the purchase of $51.8 million in  mortgage-backed  securities in
the third quarter of 1999.

     Interest on deposits  increased  by $391,000,  or 4.7%,  for the six months
ended June 30,  2000,  compared  to the six  months  ended  June  30,1999.  This
increase  resulted from an increase in the average  balance of  interest-bearing
deposits  and an increase  in the average  cost of  deposits.  The $3.5  million
increase in the average balance of interest-bearing deposits consisted of a $6.6
million increase in the average balance of interest-bearing  checking,  savings,
and money  market  partially  offset by a $3.1  million  decrease in the average
balance of certificates  of deposits.  The Company has continued to focus on the
growth of interest-bearing  checking,  savings and money market deposits as part
of its banking  initiatives.  The overall  average  cost of deposits for the six
months ended June 30, 2000 increased to 4.28% from 4.12% for the comparable 1999
period. The higher interest rate environment  contributed to the increase in the
average cost of deposits.

     Interest on borrowings increased $1.4 million for the six months ended June
30, 2000 compared to the same period in 1999. This increase was due in part to a
$32.5 million increase in the average balance of FHLB advances to $110.9 million
for the first half of 2000 compared to $78.4 million for the  comparable  period
in 1999. Additionally, the average cost of borrowings for the first half of 2000
increased  to 5.91%  from  4.91%  for the same  period in 1999.  A major  factor
contributing  to this increase was the conversion of a $60 million,  5.18% fixed
rate  advance  outstanding  during  the first six  months of 1999 to an  average
variable rate of 6.2% during the first six months of 2000.

                                       15


<PAGE>


Provision for Loan Losses

     The Company's provision for loan losses remained substantially the same for
the six months  ended June 30, 2000 as compared to the same period in 1999.  Net
loans  charged  off  during  the six months  ended  June 30,  2000 were  $47,000
compared to $171,000  for the  comparable  1999  period.  Normal  recurring  net
chargeoffs  for the  six-month  period  ended  June 30,  2000 and June 30,  1999
remained  substsantially  the same, while net chargeoffs for loan types in which
the Bank is no longer active decreased $116,000.

Other Income

     Total other income  decreased by $425,000,  or 11.6%, for the first half of
2000  compared to the same  period in 1999.  A $166,000  decrease in  commercial
mortgage  brokerage  fees  and a  $173,000  decrease  in gains on sales of loans
contributed to the decrease in other income.  Higher  interest  rates  adversely
impacted mortgages  originated for sale resulting in lower volumes of loans sold
in the  first  half of 2000  compared  to the same  period  in 1999.  Commercial
mortgage brokerage fees fluctuate significantly from period-to-period  depending
on the balances of loans brokered.

     Deposit fees and net merchant processing income increased $91,000, or 7.1%,
and $54,000, or 25.8%, respectively,  for the first half of 2000 compared to the
first half of 1999.

Other Expenses

     Total other  expenses,  excluding  merchant  processing  expense  discussed
above,  decreased  by $191,000 or 2.2%,  for the six months  ended June 30, 2000
compared to the same period in 1999. The decrease was primarily due to decreases
in salary and  benefits  expense  and  professional  fees,  partially  offset by
increases in net occupancy and equipment expense.

Liquidity

     The  principal  sources of funds for the Company  for the six months  ended
June 30, 2000 included  $48.0 million of advances from the FHLB, a $36.2 million
increase in  deposits,  $18.2  million in proceeds  from the sale of  securities
available for sale,  $17.9 million in proceeds from the sale of loans, and $15.6
million in proceeds  from  principal  repayments  and  maturities  of securities
available for sale.  Funds were used  primarily to repay $104.0  million in FHLB
advances,  to  originate  loans held for sale of $18.1  million,  to fund a $6.2
million  increase  in  loans  held  for  investment  and to  fund  purchases  of
securities available for sale of $5.5 million.

     The Company's  liquidity could be impacted by a decrease in the renewals of
deposits  or general  deposit  runoff.  However,  the Company has the ability to
raise  deposits  by  conducting  deposit  promotions.  In the event the  Company
requires funds beyond its ability to generate them internally, the Company could
obtain  additional  advances from the FHLB.  The Company could also obtain funds
through the sale of investment securities from its available for sale portfolio.

     All savings  institutions,  including the Bank, are required to maintain an
average daily balance of liquid assets equal to a certain  percentage of the sum
of its average daily balance of net withdrawable deposit accounts and borrowings
payable in one year or less.  The  liquidity  requirement  may vary from time to
time (between 4% and 10%) depending  upon economic  conditions and savings flows
of all savings  institutions.  At June 30, 2000 and December 31, 1999,  the Bank
exceeded the required liquid asset ratio of 4.0%.

Item 3 - Quantitative and Qualitative Disclosure About Market Risk

Market Risk Management

     The  Company's   primary  market  risk  exposure  is  interest  rate  risk.
Fluctuations in interest rates will impact both the level of interest income and
interest expense and the market value of the Company's  interest-earning  assets
and  interest-  bearing  liabilities.  There  were no  material  changes  in the
Company's  market risk  management  strategy,  as stated in the  Company's  1999
annual report, during the first six months of 2000.

                                       16

<PAGE>
PART II - OTHER INFORMATION

Item 1 - Legal Proceedings - Inapplicable

Item 2 - Changes in Securities - Inapplicable

Item 3 - Defaults Upon Senior Securities - Inapplicable

Item 4 - Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

     At the  Company's  annual  meeting  held  on June  14,  2000  (the  "Annual
Meeting"),  the Company's stockholders reelected three directors of the Company,
David L. Bernd, Anne B. Shumadine, and David R. Tynch. The voting results in the
election for directors were as follows:

                                          FOR                     AGAINST
                                       ---------                  -------

       David L. Bernd                  3,753,568                  596,637
       Anne B. Shumadine               3,774,198                  576,007
       David R. Tynch                  3,774,448                  575,757

The terms of office of  directors  William J.  Davenport,  III,  John F. Harris,
William H.  Hodges,  Michael  S, Ives,  Charles  R.  Malbon,  Jr.,  and Roger C.
Reinhold continued following the Annual Meeting. Patrick E. Corbin and Thomas J.
Decker, Jr. did not stand for reelection.

Item 5 - Other Information - None

Item 6 - Exhibits and Reports on Form 8-K - None

                                   SIGNATURES

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

                                          CENIT BANCORP, INC.


DATE: August 14, 2000                      /S/Michael S. Ives
                                          -----------------------
                                          Michael S. Ives
                                          President and Chief Executive Officer



DATE: August 14, 2000                      /S/ John O. Guthrie
                                          -------------------------
                                          John O. Guthrie
                                          Senior Vice President and
                                          Chief Financial Officer


                                       17