UNITED STATES
                       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 March 31, 2001                  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                       4,430,171
---------------------------         ---------------------------------------
       Title of Class                     Number of Shares Outstanding
                                             as of April 13, 2001



<PAGE>



                      CENIT BANCORP, INC. AND SUBSIDIARIES

                                    Contents
--------------------------------------------------------------------------------

                                                                           Page
PART I - FINANCIAL INFORMATION

Item 1
   Financial Statements

Consolidated Statements of Financial Condition as of March 31, 2001
Unaudited)and December 31, 2000 .............................................. 1

Unaudited Consolidated Statements of Income for the Three Months
Ended  March 31, 2001 and March 31, 2000 ..................................... 2

Unaudited Consolidated Statements of Comprehensive Income for the
Three Months Ended March 31, 2001 and March 31, 2000 ......................... 3

Unaudited Consolidated Statement of Changes in Stockholders' Equity
for the Three Months ended March 31, 2001 .................................... 4

Unaudited Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 2001 and March 31, 2000 ......................... 5

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

Item 2
   Management's Discussion and Analysis of Financial Condition
   and Results of Operations ................................................. 7

Item 3
   Quantitative and Qualitative Disclosures about Market Risk.................15

PART II - OTHER INFORMATION

Item 1
   Legal Proceedings..........................................................15

Item 2
   Changes in Securities......................................................15

Item 3
   Defaults Upon Senior Securities............................................15

Item 4
   Submission of Matters to a Vote of Security Holders........................15

Item 5
   Other Information .........................................................15

Item 6
   Exhibits and Reports on Form 8-K...........................................15

   Signatures.................................................................16


<PAGE>

<TABLE>
<CAPTION>


PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
                                       CENIT BANCORP, INC. AND SUBSIDIARIES
                                  CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   (Dollars in thousands, except per share data)

                                                      ASSETS
                                                               (Unaudited)
                                                             March 31, 2001   December 31, 2000
                                                             --------------   -----------------
<S>                                                               <C>          <C>
Cash ............................................................ $  20,048    $  20,904
Federal funds sold ..............................................    12,236        8,646
Securities available for sale at fair value (adjusted
   cost of $135,387 and $98,611, respectively) ..................   136,959       99,262
Loans, net:
   Held for investment ..........................................   461,823      472,516
   Held for sale ................................................     4,961        2,536
Interest receivable .............................................     3,709        3,546
Real estate owned, net ..........................................       363            -
Federal Home Loan Bank stock, at cost ...........................     5,700        5,050
Property and equipment, net .....................................    12,837       13,087
Goodwill and other intangibles, net .............................     2,861        2,946
Other assets ....................................................     3,318        3,736
                                                                  ---------    ---------
                                                                  $ 664,815    $ 632,229
                                                                  =========    =========
                 LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
   Deposits:
     Noninterest-bearing ........................................ $  96,535    $  88,748
     Interest-bearing ...........................................   408,029      405,736
                                                                  ---------    ---------
        Total deposits ..........................................   504,564      494,484
   Advances from the Federal Home Loan Bank .....................    88,000       70,000
   Securities sold under agreements to repurchase ...............    15,098       13,369
   Advance payments by borrowers for taxes and insurance ........       970          528
   Other liabilities ............................................     3,371        2,395
                                                                  ---------    ---------
        Total liabilities .......................................   612,003      580,776
                                                                  ---------    ---------
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 4,430,171 and 4,443,271 at March 31,
     2001 and December 31, 2000, respectively ...................        44           44
   Additional paid-in capital ...................................     8,571        8,798
   Retained earnings - substantially restricted .................    46,881       45,944
   Common stock acquired by Employee Stock Ownership Plan (ESOP)     (3,606)      (3,658)
   Common stock acquired by Management Recognition Plan (MRP) ...       (68)         (78)
   Accumulated other comprehensive income,
     net of income taxes ........................................       990          403
                                                                  ---------    ---------
     Total stockholders' equity .................................    52,812       51,453
                                                                  ---------    ---------
                                                                  $ 664,815    $ 632,229
                                                                  =========    =========

</TABLE>

The notes to unaudited consolidated financial statements are an integral part of
these statements.

                                        1

<PAGE>



                      CENIT BANCORP, INC. AND SUBSIDIARIES

                   UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                  (Dollars in thousands, except per share data)

                                                           Three Months
                                                             Ended
                                                            March 31,
                                                          2001       2000
                                                          ----       ----

Interest and fees on loans ...........................   $ 9,240   $ 9,132
Interest on mortgage-backed certificates .............     2,047     1,429
Interest on investment securities ....................         6       776
Dividends and other interest income ..................       214       261
                                                         -------   -------
   Total interest income .............................    11,507    11,598
                                                         -------   -------
Interest on deposits .................................     4,507     4,261
Interest on borrowings ...............................     1,464     1,943
                                                         -------   -------
   Total interest expense ............................     5,971     6,204
                                                         -------   -------
   Net interest income ...............................     5,536     5,394
Provision for loan losses ............................        12        29
                                                         -------   -------
   Net interest income after provision for loan losses     5,524     5,365
                                                         -------   -------
Other income:
   Deposit fees ......................................       740       708
   Merchant processing fees ..........................       528       511
   Gains on sales of loans, net ......................       294       132
   Commercial mortgage brokerage fees ................         6         -
   Other .............................................       188       242
                                                         -------   -------
     Total other income ..............................     1,756     1,593
                                                         -------   -------

Other expenses:
   Salaries and employee benefits ....................     2,154     2,296
   Equipment, data processing and supplies ...........       795       808
   Net occupancy expense of premises .................       543       572
   Merchant processing ...............................       410       391
   Professional fees .................................       185       157
   Expenses, gains/losses on sales, and provision
     for losses on real estate owned, net ............         5         6
   Other .............................................       622       557
                                                         -------   -------
     Total other expenses ............................     4,714     4,787
                                                         -------   -------

Income before income taxes ...........................     2,566     2,171
Provision for income taxes ...........................       949       782
                                                         -------   -------
   Net income ........................................   $ 1,617   $ 1,389
                                                         -------   =======

Earnings per  share:
   Basic .............................................   $   .38   $   .31
                                                         =======   =======
   Diluted ...........................................   $   .38   $   .30
                                                         =======   =======
Dividends per common share ...........................   $   .16   $   .15
                                                         =======   =======



The notes to unaudited consolidated financial statements are an integral part of
these statements.

                                        2

<PAGE>

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

                               UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                (Dollars in thousands)



                                                                        Three Months
                                                                           Ended
                                                                          March 31,
                                                                       2001       2000
                                                                       ----       ----
<S>                                                                  <C>        <C>
Net income .......................................................   $ 1,617    $ 1,389
                                                                     -------    -------

Other comprehensive income  (loss), before income taxes:
     Unrealized holding gains (losses) on securities available for
        sale arising during the period ...........................       921       (514)
                                                                     -------    -------
Other comprehensive income (loss), before income taxes ...........       921       (514)

Income tax (provision) benefit related to items of other
     comprehensive income (loss) .................................      (334)       195
                                                                     -------    -------

Other comprehensive income (loss), net of income taxes ...........       587       (319)
                                                                     -------    -------

Comprehensive income .............................................   $ 2,204    $ 1,070
                                                                     =======    =======
</TABLE>















The notes to unaudited consolidated financial statements are an integral part of
these statements.




                                        3

<PAGE>

<TABLE>
<CAPTION>

                                         CENIT BANCORP, INC. AND SUBSIDIARIES

                          UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                           Three Months Ended March 31, 2001
                                                (Dollars in thousands)





                                                                                 Common
                                                                                 Stock    Accumulated Other
                                     Common    Common   Additional              Acquired    Comprehensive
                                      Stock     Stock    Paid-In     Retained   by ESOP    Income, Net of
                                     Shares    Amount    Capital     Earnings    and MRP    Income Taxes        Total
                                     ------    ------   ---------    --------    -------   --------------      -------
<S>                                <C>           <C>       <C>        <C>        <C>          <C>            <C>


Balance, December 31, 2000        4,443,271      $ 44      $ 8,798    $45,944    $(3,736)     $   403        $ 51,453


Comprehensive income                      -         -            -      1,617         -           587           2,204


Cash dividends declared                   -         -            -       (680)        -             -            (680)


Exercise of stock options and
   related tax benefits               2,000         -           17          -         -             -              17


Stock repurchases                   (15,100)        -         (235)         -         -             -            (235)


Other                                     -         -           (9)         -        62             -              53
                                    -------      ----      -------    -------    ------       -------        --------


Balance, March 31, 2001            4,430,171     $ 44      $ 8,571    $46,881    $(3,674)     $   990        $ 52,812
                                   =========     ====      =======    =======    ========     =======        ========

</TABLE>

























The notes to unaudited consolidated financial statements are an integral part of
this statement.

                                        4

<PAGE>
<TABLE>
<CAPTION>

                                         CENIT BANCORP, INC. AND SUBSIDIARIES

                                    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                (Dollars in thousands)

                                                                          Three months ended March 31,
                                                                               2001        2000
                                                                               ----        ----
<S>                                                                       <C>          <C>
Cash flows from operating activities:
   Net income .........................................................   $   1,617    $   1,389
   Add (deduct) items not affecting cash in the period:
     Provision for loan losses ........................................          12           29
     Amortization of loan yield adjustments ...........................         310          203
     Depreciation, amortization and accretion, net ....................         428          463
     Exercise of stock options tax benefits ...........................           9            7
     Net gains on sales/disposals of:
        Loans .........................................................        (294)        (132)
        Real estate, property and equipment ...........................           1          (25)
     Proceeds from sales of loans held for sale .......................      16,672        9,380
     Originations of loans held for sale ..............................     (18,807)      (6,909)
     Change in assets/liabilities:
        Net decrease (increase) in interest receivable and other assets         310         (247)
        Net increase in other liabilities .............................         633          810
                                                                          ---------    ---------
        Net cash provided by operating activities .....................         891        4,968
                                                                          ---------    ---------
Cash flows from investing activities:
   Purchases of securities available for sale .........................     (44,016)      (5,538)
   Principal repayments on securities available for sale ..............       7,233        3,641
   Proceeds from maturities of securities available for sale ..........           -        5,000
   Net decrease in loans held for investment ..........................      10,023        4,584
   Additions to real estate ...........................................         (16)         (22)
   Purchases of Federal Home Loan Bank stock ..........................        (650)        (250)
   Redemption of Federal Home Loan Bank stock .........................           -        1,300
   Purchases of property and equipment ................................         (75)        (116)
                                                                          ---------    ---------
     Net cash (used for) provided by  investing activities ............     (27,501)       8,599
                                                                          ---------    ---------
Cash flows from financing activities:
   Proceeds from exercise of stock options and warrants ...............           8           12
   Net increase in deposits ...........................................      10,080       33,565
   Proceeds from Federal Home Loan Bank advances ......................     123,000       11,000
   Repayment of Federal Home Loan Bank advances .......................    (105,000)     (58,000)
   Common stock repurchases ...........................................        (235)           -
   Net increase in securities sold under agreement
     to repurchase ....................................................       1,729        1,840
   Cash dividends paid ................................................        (680)        (681)
   Other, net .........................................................         442          456
                                                                          ---------    ---------
        Net cash provided by (used for) financing activities ..........      29,344      (11,808)
                                                                          ---------    ---------
Increase in cash and cash equivalents .................................       2,734        1,759
Cash and cash equivalents, beginning of period ........................      29,550       30,462
                                                                          ---------    ---------
Cash and cash equivalents, end of period ..............................   $  32,284    $  32,221
                                                                          =========    =========
Supplemental disclosures of cash flow  information:
     Cash paid during the period for interest .........................   $   1,841    $   2,274
     Cash paid during the period for income taxes .....................          55            -
   Schedule of noncash investing and financing activities:
     Real estate acquired in settlement of loans ......................   $     444    $     122
     Loans to facilitate sale of real estate owned ....................          96          146

</TABLE>




The notes to unaudited consolidated financial statements are an integral part of
these statements.


                                        5

<PAGE>




                      CENIT BANCORP, INC. AND SUBSIDIARIES

              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 of America. 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 three month periods ended March 31, 2001 and 2000 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, 2000 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 three month period ended March 31, 2001, weighted average
shares used to compute basic earnings per share were 4,244,087. For the three
months ended March 31, 2000, weighted average shares used to compute basic
earnings per share were 4,543,261.

    Diluted earnings per share is calculated by adding common stock equivalents
to the weighted average shares outstanding. For the three month period ended
March 31, 2001, weighted average shares used to compute diluted earnings per
share were 4,301,469. For the three months ended March 31, 2000, weighted
average shares used to compute diluted earnings per share were 4,599,677.








                                        6

<PAGE>



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 and subsidiaries (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 March 31, 2001, the Company had total assets of $664.8 million, compared
to $632.2 million at December 31, 2000, an increase of $32.6 million, or 5.2%.

Securities Available for Sale

     Securities available for sale totaled $137.0 million at March 31, 2001 and
are comprised of mortgage-backed certificates and other debt securities. The net
increase of $37.7 million, or 38.0% from the December 31, 2000 balance of $99.3
million resulted primarily from the purchase of $44.0 million in adjustable
mortgage-backed certficates available for sale, partially offset by principal
repayments of $7.2 million.

Loans
     The balance of net loans decreased to $466.8 million at March 31, 2001 from
$475.1 million at December 31, 2000, a decrease of $8.3 million, or 1.7%. The
decrease was primarily due to mortgage loan paydowns associated with declines in
mortgage lending rates. Declines in lending rates often accelerate the
refinancing of mortgage loans. A $12.1 million, or 5.9% decrease in permanent
single-family mortgage loans held for investment was partially offset by an
increase in core banking loans and loans held for sale of $3.8 million or, 1.4%
from December 31, 2000 to March 31, 2001. The portion of the loan portfolio
excluding residential mortgage loans ("core banking loans") reached a record
balance of $271.0 million at March 31, 2001.




                                        7

<PAGE>
<TABLE>
<CAPTION>

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

                                                            March 31, 2001                 December 31, 2000
                                                            --------------                 -----------------
                                                                       (Dollars in Thousands)
                                                       Amount        Percent              Amount        Percent
<S>                                                   <C>             <C>                  <C>          <C>
                                                       ------        -------              ------        -------
Real estate loans:
   Residential permanent 1- to 4-family:
     Adjustable rate                                  $ 130,136        25.57%           $  139,663        26.80%
     Fixed rate
       Conventional                                      60,883        11.96                63,324        12.15
       Guaranteed by VA or insured by FHA                 2,187         0.43                 2,276         0.44
                                                      ---------       ------            ----------       ------
     Total permanent 1- to 4-family                     193,206        37.96               205,263        39.39
   Residential permanent 5 or more family                 7,694         1.51                 7,620         1.46
                                                      ---------       ------            ----------       ------
     Total permanent residential loans                  200,900        39.47               212,883        40.85
                                                      ---------       ------            ----------       ------
   Commercial real estate loans:
     Hotels                                               6,500         1.28                 6,513         1.25
     Office and warehouse facilities                     44,006         8.65                42,974         8.25
     Retail facilities                                   24,478         4.81                26,402         5.07
     Other                                                9,642         1.89                 9,007         1.73
                                                      ---------       ------            ----------       ------
     Total commercial real estate loans                  84,626        16.63                84,896        16.30
                                                      ---------       ------            ----------       ------
   Construction loans:
     Residential 1- to 4-family                          46,832         9.20                43,968         8.43
     Residential 5 or more family                         9,342         1.84                 9,323         1.79
     Nonresidential                                      26,483         5.20                25,471         4.89
                                                      ---------       ------            ----------       ------
     Total construction loans                            82,657        16.24                78,762        15.11
                                                      ---------       ------            ----------       ------

   Land acquisition and development loans:
     Consumer lots                                        3,658         0.72                 3,654         0.70
     Acquisition and development                         17,486         3.44                19,175         3.68
                                                      ---------       ------            ----------       ------
     Total land acquisition and development
       loans                                             21,144         4.16                22,829         4.38
                                                      ---------       ------            ----------       ------
     Total real estate loans                            389,327        76.50               399,370        76.64
                                                      ---------       ------            ----------       ------
Consumer loans:
   Boats                                                  1,636         0.32                 2,010         0.39
   Home equity and second mortgage                       62,112        12.20                60,343        11.58
   Other                                                 11,428         2.25                12,594         2.41
                                                      ---------       ------            ----------       ------
     Total consumer loans                                75,176        14.77                74,947        14.38
                                                      ---------       ------            ----------       ------
Commercial business loans                                44,430         8.73                46,780         8.98
                                                      ---------       ------            ----------       ------
     Total loans                                        508,933       100.00%              521,097       100.00%
                                                      ---------       ======            ----------       ======
Less:
   Allowance for loan losses                              3,762                              3,804
   Undisbursed portion of construction and
     acquisition and development loans                   44,725                             46,241
   Unearned discounts, premiums, and
     loan fees, net                                      (1,377)                            (1,464)
                                                      ----------                        -----------
                                                         47,110                             48,581
                                                      ---------                         ----------
Total loans, net                                      $ 461,823                         $  472,516
                                                      =========                         ==========

</TABLE>

                                        8

<PAGE>



Deposits

     Total deposits increased $10.1 million, or 2.0%, from $494.5 million at
December 31, 2000 to $504.6 million at March 31, 2001. The Company's transaction
deposits (its checking, savings, and money market deposits) increased $14.0
million, or 5.6% to a record balance of $265.4 million at March 31, 2001 from
$251.4 million at December 31, 2000. The increase in transaction deposits was
primarily attributable to the Company's continued successful execution of its
business strategy to grow this line of business.

Capital

     The Company's and the Bank's capital ratios exceeded applicable regulatory
requirements at March 31, 2001.

     In January 2001, the Company's Board of Directors gave the Company's
management the discretion to repurchase up to 200,000, or approximately 4.5% of
the Company's shares. The Company is not obligated to conduct these repurchases
at all, and the Company's decision to do so, as well as the timing of any
repurchase, will depend on a variety of factors. During the first quarter of
2001, the Company repurchased 15,100 shares under this discretionary authority
at an average price of $15.58.

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.

                                                      March 31,    December 31,
                                                         2001            2000
                                                    ------------  --------------
                                                       (Dollars in Thousands)
Nonperforming loans:
   Real estate loans:
     Permanent residential 1- to 4-family
       Nonaccrual                                      $1,825         $ 1,379
       Accruing loans 90 days or more past due             48               -
                                                       ------         -------
         Total                                          1,873           1,379
                                                       ------         -------

     Land acquisition and development:
       Nonaccrual                                          46              46
                                                       ------         -------
         Total                                             46              46
                                                       ------         -------

   Consumer loans:
       Nonaccrual
         Boats                                             34               5
         Home equity and second mortgage                   34              34
         Other                                             40              14
                                                       ------         -------
         Total                                            108              53
                                                       ------         -------

   Commercial business loans:
       Nonaccrual                                          52             202
                                                       ------         -------
         Total                                             52             202
                                                       ------         -------

Total nonperforming loans:
       Nonaccrual                                       2,031           1,680
       Accruing loans 90 or more days past due             48               -
                                                       ------         -------
         Total                                          2,079           1,680

Real estate owned, net                                    363               -
                                                       ------         -------

   Total nonperforming assets, net                     $2,442         $ 1,680
                                                       ======         =======

Total nonperforming assets, net, to total assets          .37%            .27%
                                                          ===             ===





                                       10

<PAGE>



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

                                                 Three months ended March 31,
                                               2001                        2000
                                               ----                        ----
                                                     (Dollars in Thousands)

Balance at beginning of period              $ 3,804                     $ 3,860
Provision for loan losses                        12                          29
Losses charged to allowance                     (63)                        (76)
Recovery of prior losses                          9                          22
                                            -------                     -------
Balance at end of period                    $ 3,762                     $ 3,835
                                            =======                     =======

    The Company's coverage ratio (total allowance for loan losses to total
nonperforming loans) was approximately two times, two times, and four times the
nonperforming loans at March 31, 2001, December 31, 2000, and March 31, 2000,
respectively. For the three months ended March 31, 2001 and March 31, 2000, 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 and the allowance for loan
losses 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
                                                           March 31, 2001                      March 31, 2000
                                                ------------------------------------------------------------------------
                                                    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)                                      $  468,095  $  9,240      7.90%  $  470,134  $  9,132      7.77%
    Mortgage-backed certificates                      123,062     2,047      6.65       83,241     1,429      6.87
    Investment securities                                 250         6      9.60       54,816       776      5.66
    Federal funds sold                                  8,514       116      5.45        9,827       138      5.62
    Federal Home Loan Bank stock                        5,472        98      7.16        6,402       123      7.69
                                                   ----------  --------             ----------  --------
       Total interest-earning assets                  605,393    11,507      7.60      624,420    11,598      7.43
                                                   ----------  --------             ----------  --------

Noninterest-earning assets:
    Real estate owned, net                                279                              185
    Other                                              39,361                           36,798
                                                   ----------                       ----------
       Total noninterest-earning assets                39,640                           36,983
                                                   ----------                       ----------
         Total assets                              $  645,033                       $  661,403
                                                   ==========                       ==========

Interest-bearing liabilities:
    Passbook and statement savings                 $   28,776  $    159      2.21   $   31,786  $    190      2.40
    Checking accounts                                  43,874       119      1.08       41,526       147      1.42
    Money market deposit accounts                      90,076       833      3.70       79,839       711      3.56
    Certificates of deposit                           239,725     3,396      5.67      253,136     3,213      5.08
                                                   ----------  --------             ----------  --------
       Total interest-bearing deposits                402,451     4,507      4.48      406,287     4,261      4.19
                                                   ----------  --------             ----------  --------
    Advances from the Federal Home
       Loan Bank                                       94,900     1,275      5.37      122,253     1,772      5.80
    Securities sold under agreements
       to repurchase                                   15,911       189      4.75       14,507       171      4.71
                                                   ----------  --------             ----------  --------
       Total borrowings                               110,811     1,464      5.28      136,760     1,943      5.69
                                                   ----------  --------             ----------  --------
       Total interest-bearing liabilities             513,262     5,971      4.65      543,047     6,204      4.57
                                                   ----------  --------             ----------  --------

Noninterest-bearing liabilities:
    Deposits                                           74,376                           61,964
    Other liabilities                                   5,399                            5,268
                                                   ----------                       ----------
       Total noninterest-bearing liabilities           79,775                           67,232
                                                   ----------                       ----------
         Total liabilities                            593,037                          610,279
                                                   ----------                       ----------

Stockholders' equity                                   51,996                           51,124
                                                   ----------                       ----------
Total liabilities and stockholders' equity         $  645,033                       $  661,403
                                                   ==========                       ==========

Net interest income/interest rate spread                       $  5,536      2.95%              $  5,394      2.86%
                                                               ========                         ========

Net interest position/net interest margin          $   92,131                3.66%  $   81,373                3.46%
                                                   ==========                       ==========

Ratio of average interest-earning assets to
    average interest-bearing liabilities               117.95%                      114.98%
                                                       ======                       ======


(1) Includes nonaccrual loans and loans held for sale.

</TABLE>

                                       12

<PAGE>



Comparison of Operating Results for the Three Months Ended March 31, 2001 and
March 31, 2000.

General

    The Company's pre-tax income increased $395,000 to $2.6 million for the
three months ended March 31, 2001 from $2.2 million for the three months ended
March 31, 2000. The increase was the result of increases in net interest income
after provision for loan losses and other income of $159,000 and $163,000,
respectively, as well as a $73,000 decrease in other expenses.

Net Interest Income

    The Company's net interest income before provision for loan losses increased
$142,000 or 2.6% to $5.5 million for the first quarter of 2001 compared to $5.4
million for the first quarter of 2000. This increase was substantially due to a
$233,000, or 3.8% decrease in interest expense partially offset by a decrease of
$91,000, or 0.8% in interest income for the first quarter of 2001 compared to
the same period in 2000.

    Interest on loans increased $108,000, or 1.2%, to $9.2 million for the first
quarter 2001 compared to $9.1 million for the same period in 2000. While the
average loan yield increased to 7.9% for the first three months of 2001 as
compared to 7.8% for the same period in 2000, the average loan balance decreased
$2.0 million to $468.1 million in the first quarter of 2001. The decrease in the
average loan balance was attributable, in part, to mortgage loan paydowns.

    Interest on the Company's portfolio of mortgage-backed certificates
increased $618,000, to $2.0 million for the quarter ended March 31, 2001 from
$1.4 million for the comparable 2000 period. The average balance of the
portfolio increased $39.9 million from $83.2 million in the first quarter of
2000 to $123.1 million in the first quarter of 2001. This increase was primarily
attributable to the Company's restructuring of its securities portfolio. The
Company sold its U. S. Govenment agency securities and purchased additional
mortgage-backed certficates. The average yield on mortgage-backed certficates
decreased from 6.87% for the three months ended March 31, 2000 to 6.65% for the
same period in 2001. The decrease in yield between the two quarters is primarily
a result of the purchase of lower yielding adjustable rate mortgage-backed
certificates during 2000 and the first quarter of 2001.

    Interest on investments decreased from $776,000 for the first quarter of
2000 to $6,000 for the same quarter in 2001. The decrease is due primarily to
the sale of the Company's U.S. Government agency securities in the fourth
quarter of 2000.

    Interest on deposits increased by $246,000, or 5.8%, for the quarter ended
March 31, 2001 compared to the quarter ended March 31, 2000. While the overall
average balance of interest-bearing deposits decreased by $3.8 million, the
average balance of transaction deposits reached a record balance of $237.1
million for the first quarter of 2001 compared to $215.1 for the first quarter
of 2000, an increase of 10.2%. The average balance of noninterest-bearing
deposits increased 20.0%, from $62.0 million to $74.4 million in the first
quarter of 2001.

    Interest on borrowings decreased $479,000 for the three months ended March
31, 2001 compared to the same period in 2000. This decrease was substantially
due to a $27.4 million decrease in the average balance of FHLB advances to $94.9
million for the first quarter of 2001 compared to $122.3 million for the
comparable period in 2000. The total average cost of borrowings for the first
quarter of 2001 decreased to 5.3% from 5.7% for the same period in 2000,
primarily due to the recent reductions in the interest rate environment.

    Net interest margin was 3.66% for the first quarter of 2001 compared to
3.46% for the same period in 2000. The Company is seeking to improve its net
interest margin through increases in transaction deposits and restructuring
operations. During the first quarter of 2001, the Company implemented a program
to reduce nonearning cash balances. Cash balance reductions realized from this
program will not substantially begin until the second quarter of 2001. When
fully implemented, the Company expects to reduce average nonearning cash by as
much as $4.0 to $5.0 million, which should enhance the net interest margin going
forward.





                                       13

<PAGE>




Provision for Loan Losses

    The Company's provision for loan losses remained substantially the same for
the three months ended March 31, 2001 as compared to the same period in 2000,
decreasing from $29,000 to $12,000. Net loans charged off during both the three
months ended March 31, 2001 and March 31, 2000 were $54,000. For the three
months ended March 31, 2001 and March 31, 2000, 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.

Other Income

    Total other income increased by $163,000, or 10.2%, for the first quarter of
2001 compared to the same period in 2000. The increase is primarily due to a
$162,000 increase in gains on sales of loans. The increase is attributed to the
increased mortgage lending activity as a result of the reduction of mortgage
lending rates that occurred at the end of 2000 and continued into the first
quarter of 2001.

Other Expenses

    Total other expense decreased by $73,000 or 1.5%, for the three months ended
March 31, 2001 compared to the same period in 2000.


Liquidity

    The principal sources of funds for the Company for the three months ended
March 31, 2001 included $123.0 million in advances from the FHLB, $16.7 million
in proceeds from the sale of loans, a $10.1 million increase in deposits, a
$10.0 million decrease in loans held for investment, and $7.2 million in
proceeds from principal repayments on securities available for sale. Funds were
used primarily to repay $105.0 million in FHLB advances, to fund purchases of
securities available for sale of $44.0 million, and to originate loans held for
sale of $18.8 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.


Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

    This Quarterly Report contains forward-looking statements with respect to
the goals, plans, objectives, intentions, expectations, financial condition,
results of operations, future performance and business of the Company,
including, without limitation, statements relating to the earnings outlook of
the Company. These forward-looking statements may be preceded by, followed by or
include the words "may", "could", "would", "should", "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar expressions. These
forward-looking statements involve risks and uncertainties that are subject to
change based on various factors, many of which are beyond the Company's control.
Some of these factors include (1) the strength of the U. S. economy in general
and the strength of the local economy in which the Company conducts its
operations, which may be different than expected and which may result in, among
other things, deterioration in credit quality or reduced demand for credit; (2)
the effects of, and changes in, the interest rate policies of the board of
governors of the Federal Reserve system, which may be different from those
anticipated by the Company in this Quarterly Report; (3) legislation or
regulatory changes that adversely affect the businesses in which the Company is
engaged; (4) changes in accounting principles, practices, policies or
guidelines; and (5) changes in the real estate market generally and in the
markets in which the Company conducts its operations, which may affect the
demand for mortgages and other real estate-based loans. This Quarterly Report,
including the forward-looking statements contained herein, speaks only as of the
date hereof, and the Company disclaims any obligation to update or revise the
statements contained in this Quarterly Report following the date hereof.

                                       14

<PAGE>




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  2000
annual  report,  during  the  first  three  months  of  2001.


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 - None


Item 5 - Other Information - None


Item 6 - Exhibits and Reports on Form 8-K

On January 24, 2001, the Company filed Form 8-K, Item 5 and Item 7. Item 5
reported the Registrant had issued a News Release announcing the results for the
fourth quarter and year ended December 31, 2000 and other information. Item 7
was an exhibit of that News Release.

Also, on January 24, 2001, the Company filed Form 8-K, Item 5 and Item 7. Item 5
reported the Registrant had issued a News Release announcing share repurchase,
dividend increase, and earnings guidance. Item 7 was an exhibit of that News
Release.





                                       15

<PAGE>


                                   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:   April 20, 2001                    /S/ Michael S. Ives
                                 -------------------------------------
                                 Michael S. Ives
                                 President and Chief Executive Officer



DATE:   April 20, 2001                     /S/ John O. Guthrie
                                 --------------------------------------
                                 John O. Guthrie
                                 Senior Vice President and
                                 Chief Financial Officer


                                       16

<PAGE>