SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                      -------------------------------------


                                   FORM 10-QSB


         [ x ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
                  September 30, 2001.

                                       OR

         [   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934
                  For the transition period from __________ to __________


                         Commission File Number 0-24926


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


Maryland                                                  52-1883546
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                            Identification Number)


127 North Street                                          21921
Elkton, Maryland                                          (Zip Code)
(Address of principal executive office)

Registrant's telephone number, including area code:  (410) 398-1650


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 twelve 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 ninety days.

                                [ x ] YES [ ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date.

                                     630,343
                                     -------

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                       CECIL BANCORP INC. AND SUBSIDIARIES


                                    CONTENTS

                                                                                                               PAGE
                                                                                                               ----
PART I.    FINANCIAL INFORMATION

<S>                                                                                                          <C>
           ITEM 1.       Financial Statements (unaudited)

                         Consolidated Statements of Financial Condition -
                         September 30, 2001 and  December 31, 2000 ..............................................3

                         Consolidated Statements of Income and Comprehensive Income
                         for the Six and Three Months Ended September 30, 2001 and 2000 .........................4

                         Consolidated Statements of Cash Flows
                         for Nine Months Ended September 30, 2001 and 2000 ......................................6

                         Notes to Consolidated Financial Statements .............................................7


           ITEM 2.       Management's Discussion and Analysis of Financial Condition
                         and Results of Operations ...........................................................9-16

PART II. OTHER INFORMATION .....................................................................................17

SIGNATURES .....................................................................................................17

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                                     Page 2
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                                                CECIL BANCORP, INC. AND SUBSIDIARIES
                                           CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                              SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                                                                          September 30,              December 31,
                                                                              2001                       2000
                                                                       -----------------           ----------------
                                                                           (Unaudited)
<S>                                                                    <C>                         <C>
ASSETS
Cash and due from banks                                                $       2,617,049           $      1,530,547
Interest bearing deposits with banks                                           3,133,602                  2,350,059
Investment securities:
   Securities held-to-maturity - at cost (fair value of $2,539,063
     in 2001 and $5,295,467 in 2000)                                           2,533,063                  5,335,289
   Securities available-for-sale at fair value                                 9,255,655                  2,612,882
Loans receivable                                                             103,825,802                103,000,297
   Less: Allowance for loan losses                                              (315,307)                  (418,725)
                                                                       -----------------           ----------------
       Loans receivable, net                                                 103,510,495                102,581,572
Property and equipment - net                                                   2,363,772                  2,501,931
Real estate owned                                                                -                          254,994
Stock in Federal Home Loan Bank of Atlanta - at cost                             955,000                    905,000
Accrued interest receivable                                                      845,956                    824,683
Goodwill and other intangible assets, net                                      2,328,651                  2,463,711
Other assets                                                                     370,593                    600,032
                                                                       -----------------           ----------------

       TOTAL ASSETS                                                    $     127,913,836           $    121,960,700
                                                                       =================           ================

LIABILITIES AND STOCKHOLDERS' EQUITY
   Savings deposits                                                    $     104,897,894           $     95,913,387
   Advance payments by borrowers for property
     taxes and insurance                                                         485,956                    681,853
   Employee stock ownership plan debt                                            154,032                    154,032
   Other liabilities                                                             362,373                    545,142
   Advances from Federal Home Loan Bank of Atlanta                            10,000,000                 13,250,000
                                                                       -----------------            ---------------

       Total liabilities                                                     115,900,255                110,544,414
                                                                       -----------------           ----------------

STOCKHOLDERS' EQUITY:
   Common stock, $.01 par value; authorized 4,000,000 shares,
     issued and outstanding 630,343 shares in
     2001 and 621,486 in 2000                                                      6,303                      6,215
   Additional paid in capital                                                  5,146,173                  5,046,082
   Employee stock ownership play debt                                           (154,032)                  (154,032)
   Deferred compensation - Management Recognition Plan                           (22,564)                   (22,565)
   Retained earnings                                                           6,953,030                  6,543,202
   Accumulated other comprehensive income (loss), net                             84,671                     (2,616)
                                                                       -----------------           -----------------

       Total stockholders' equity                                             12,013,581                 11,416,286
                                                                       -----------------           ----------------

       TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY                                                           $    127,913,836           $    121,960,700
                                                                        ================           ================
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See accompanying notes.

                                     Page 3
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                                                CECIL BANCORP, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


                                                       Three Months Ended September 30,        Nine Months Ended September 30,
                                                       --------------------------------        -------------------------------
                                                            2001                2000              2001                2000
                                                            ----                ----              ----                ----
                                                        (Unaudited)         (Unaudited)       (Unaudited)          (Unaudited)
<S>                                                       <C>                 <C>                <C>                   <C>
INTEREST INCOME:
  Loans receivable                                     $2,143,989          $2,209,639         $6,592,767            $6,310,626
  Investment securities                                   146,225             133,611            378,195               429,852
  Dividends on FHLB stock                                  13,272              15,816             45,560                44,435
  Other interest-earning assets                            27,808              70,484             96,700               178,859
                                                       ----------          ----------         ----------            ----------
      Total interest income                             2,331,294           2,429,550          7,113,222             6,963,772
                                                       ----------          ----------         ----------            ----------

INTEREST EXPENSE:
  Interest expense on deposits                          1,052,296           1,046,172          3,189,907             3,107,220
  Borrowings                                               97,150             267,345            474,380               463,855
                                                       ----------          ----------         ----------            ----------
      Total interest expense                            1,149,446           1,313,517          3,664,287             3,571,075
                                                       ----------          ----------         ----------            ----------


      Net interest income                               1,181,848           1,116,033          3,448,935             3,392,697
  Provision for loan losses                                46,500              86,500            109,500               223,500
                                                       ----------          ----------         ----------            ----------
      Net interest income after
         provision for loan losses                      1,135,348           1,029,533          3,339,435             3,169,197
                                                       ----------          ----------         ----------            ----------

NONINTEREST INCOME:
  Checking account fees                                    70,627              72,814            214,601               203,257
  ATM  fees                                                26,503              -                  73,701                -
  Commission income                                        18,132              21,522             52,235                92,116
  Other                                                    11,971              48,249             53,622               126,591
                                                       ----------          ----------         ----------            ----------
      Total noninterest income                            127,233             142,585            394,159               421,964
                                                       ----------          ----------         ----------            ----------

NONINTEREST EXPENSE:
  Compensation and benefits                               429,503             444,434          1,309,175             1,299,276
  Occupancy                                                60,714              44,342            177,305               132,334
  Equipment and data processing
      expense                                             119,478             103,958            341,880               319,871
  SAIF deposit insurance premium                           13,744              20,617             54,287                50,418
  Amortization of goodwill and other
       intangible assets                                   70,392              70,392            211,175               211,175
  Other                                                   242,011             200,779            709,117               616,643
                                                       ----------          ----------         ----------            ----------
      Total noninterest expense                           935,842             884,522          2,802,939             2,629,717
                                                       ----------          ----------         ----------            ----------

INCOME BEFORE INCOME TAXES                                326,739             287,596            930,655               961,444
                                                       ----------          ----------         ----------            ----------

INCOME TAX EXPENSE                                        122,932             109,542            353,022               365,693
                                                       ----------          ----------         ----------            ----------

NET INCOME                                             $  203,807          $  178,054         $  577,633            $  595,751
                                                       ==========          ==========         ==========            ==========

(continued)
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                                     Page 4
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                                                CECIL BANCORP, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                                                             (Continued)

                                                       Three Months Ended September 30,        Nine Months Ended September 30,
                                                       --------------------------------        -------------------------------
                                                            2001                2000              2001                2000
                                                            ----                ----              ----                ----
                                                        (Unaudited)         (Unaudited)       (Unaudited)          (Unaudited)
<S>                                                       <C>                 <C>                <C>                   <C>
NET INCOME                                             $  203,807          $  178,054         $  577,633            $  595,751

OTHER COMPREHENSIVE INCOME
  Unrealized gains (losses) on
      investment securities,
      net of deferred taxes                                34,401               8,355             87,287                 5,591
                                                       ----------        ------------        -----------            ----------

TOTAL COMPREHENSIVE INCOME                             $  238,208          $  186,409         $  664,920            $  601,342
                                                       ==========          ==========         ==========            ==========




Earnings per common share and
  common share equivalent                              $     0.33          $     0.35          $     0.94            $     1.00
                                                       ==========          ==========          ==========            ==========

Earnings per common share -
  assuming full dilution                               $     0.32          $     0.34          $     0.93            $     0.98
                                                       ==========          ==========          ==========            ==========

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                                     Page 5
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                                                CECIL BANCORP, INC. AND SUBSIDIARIES
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                                                                         2001                 2000
                                                                                    -------------        ------------
                                                                                    (unaudited)           (unaudited)
<S>                                                                                     <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Adjustments to reconcile net income to net cash
     provided by operating activities:
     Net income                                                                      $  577,634           $   595,751
     Depreciation and amortization                                                      371,581               313,264
     Provision for loan losses                                                          109,500               223,500
     Reinvested dividends                                                               (95,924)              (32,479)
     Distribution from MRP Trust                                                         -                     53,788
     Net change in:
       Accrued interest receivable and other assets                                      77,128               (95,653)
       Other liabilities                                                               (182,768)               67,695
                                                                                    -----------          ------------

              Net cash provided by operating activities                                 857,151             1,125,866
                                                                                    -----------            ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of investment securities available for sale                             (8,250,000)             (997,969)
   Proceeds from maturities, calls and principal payments of
     investment securities available-for-sale                                         4,647,585             2,744,353
   Purchase of stock in Federal Home Loan Bank                                          (50,000)             (247,200)
   Net increase in loans                                                             (1,038,423)          (11,416,358)
   Proceeds from sales of real estate owned                                             254,994               223,746
   Purchase of real estate owned                                                         -                   (107,562)
   Purchases of property and equipment - net                                            (22,246)             (615,805)
                                                                                   ------------         -------------

              Net cash used in investing activities                                  (4,458,090)          (10,416,795)
                                                                                     ----------           -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Net increase (decrease) in deposits                                                8,984,507            (5,371,722)
   Increase in advance payments by borrowers for
     property taxes and insurance                                                      (195,897)             (203,130)
   Proceeds from issuance of common stock                                               100,180                47,300
   Net (decrease) increase in short-term borrowings                                  (3,250,000)           14,200,000
   Payments of cash dividends                                                          (167,806)             (154,810)
   Funding of MRP Trust                                                                  -                    (14,534)
                                                                               ----------------         -------------

              Net cash provided by financing activities                               5,470,984             8,503,104
                                                                                     ----------           -----------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      1,870,045              (787,825)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                      3,880,606             6,032,081
                                                                                     ----------           -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                           $5,750,651           $ 5,244,256
                                                                                     ==========           ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
   Cash paid for income taxes                                                       $   253,000           $   512,841
   Cash paid for interest                                                             3,509,407             3,571,075

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                                     Page 6
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                      CECIL BANCORP, INC. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000


    1.   GENERAL

               In the opinion of the Company, the accompanying unaudited
    consolidated financial statements contain all adjustments (consisting of
    only normal recurring adjustments) necessary to present fairly the financial
    position as of September 30, 2001 and the results of its operations and cash
    flows for the nine months ended September 30, 2001 and 2000. These
    statements are condensed and therefore do not include all of the information
    and footnotes required by accounting principles generally accepted in the
    United States for complete financial statements. The statements should be
    read in conjunction with the consolidated financial statements and footnotes
    included in the Company's Annual Report on Form 10-KSB for the year ended
    December 31, 2000. The results of operations for the nine months ended
    September 30, 2001 are not necessarily indicative of the results to be
    expected for the full year.

    2.   FINANCIAL STATEMENT PREPARATION

               The preparation of financial statements in conformity with
    generally accepted accounting principles requires management to make
    estimates and assumptions that affect the reported amounts of assets and
    liabilities and disclosures of contingent assets and liabilities at the date
    of the financial statements and the reported amounts of revenues and
    expenses during the reporting period. Estimates are used when accounting for
    uncollectible loans, depreciation and amortization, intangible assets,
    employee benefit plans and contingencies, among others. Actual results could
    differ from those estimates.

    3.   EARNINGS PER SHARE

               Earnings per common share were computed by dividing net income by
    the weighted average number of shares of common stock outstanding during the
    quarter. Diluted earnings per share is computed after adjusting the
    numerator and denominator of the basic earnings per share computation for
    the effects of all dilutive potential common shares outstanding during the
    period. The dilutive effects of options, warrants, and their equivalents are
    computed using the "treasury share" method.

4.       ACCOUNTING PRONOUNCEMENTS

               In July 2001, the Financial Accounting Standards Board issued
    SFAS N0 141, Business Combinations, and SFAS No. 142, Goodwill and other
    Intangible Assets. SFAS No. 141 requires that the purchase method of
    accounting be used for all business combinations initiated or completed
    after June 30, 2001. SFAS No. 142 will require that goodwill and intangible
    assets with indefinite lives no longer be amortized, but instead be tested
    for impairment at least annually. At September 30, 2001, the net carrying
    value of goodwill and other intangibles was $2.3 million, the majority of
    which related to a branch purchase transaction. These intangibles are being
    amortized over a ten-year period. Related amortization expense for the nine
    months ended September 30, 2001 was $211,175. As of the date of this report,
    it is not practical to reasonably estimate the impact of adopting these
    Statements on the Company's financial statements including whether any
    impairment losses will be required to be recognized.

               The Financial Accounting Standards board issued SFAS No. 143,
    Accounting for Asset Retirement Obligations, in August 2001, and SFAS No.
    144, Accounting for the Impairment or Disposal of Long-Lived Assets, in
    October 2001. SFAS No. 143 requires that the fair value of an asset
    retirement obligation be recorded as a liability in the period in which it
    incurs a legal obligation. SFAS No. 144 serves to clarify and further define
    the provisions of SFAS No. 121, Accounting for the Impairment of Long-Lived
    Assets to be disposed of. SFAF 144 does not apply to goodwill and for
    intangible assets that are not amortized. The Company will adopt Statement
    144 effective January 1, 2002, and Statement 143 effective January 1, 2003.

                                     Page 7
<PAGE>

    The effect of adopting these statements is not expected to have a material
    effect on the Company's future financial position or overall trends in
    results of operations.
































                                     Page 8
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                      CECIL BANCORP, INC. AND SUBSIDIARIES
            ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS. This Management's Discussion and Analysis of
financial condition and results of operations and other portions of this report
include forward-looking statements such as: statements of the Company's goals,
intentions, and expectations; estimates of risks and of future costs and
benefits; assessments of loan quality and of probable loan losses; and
statements of the Company's ability to achieve financial and other goals. These
forward-looking statements are subject to significant uncertainties because they
are based upon: future interest rates and other economic conditions; future laws
and regulations; and a variety of other matters. Because of these uncertainties,
the actual future results may be materially different from the results indicated
by these forward-looking statements. In addition, the Company's past growth and
performance do not necessarily indicate its future results.

         You should read this Management's Discussion and Analysis of the
Company's consolidated financial condition and results of operations in
conjunction with the Company's unaudited consolidated financial statements and
the accompanying notes.

General

         CECIL BANCORP, INC. Cecil Bancorp, Inc. (the "Company") is the holding
company for Cecil Federal Savings Bank ("Cecil Federal" or the "Bank")), and
until June 11, 2001, Columbian Bank, a Federal Savings Bank ("Columbian"). The
Company is now classified as a unitary thrift holding company subject to
regulation by the Office of Thrift Supervision ("OTS") of the Department of the
Treasury.

         RECENT EVENTS. The board of the Bank has authorized the conversion of
Cecil Federal Savings Bank from a stock federal savings bank to a commercial
bank chartered under the laws of the State of Maryland. The Bank also plans to
apply for membership in the Federal Reserve System. It is expected that this
conversion, which is subject to regulatory approval, will be effective during
2002.

         CECIL FEDERAL. Cecil Federal is a community-oriented financial
institution which commenced operations in 1959 as a Federal mutual savings and
loan association. It converted to a Federal mutual savings bank in January 1993
and, effective November 10, 1994, Cecil Federal converted from mutual to stock
form, with the sale and issuance of 100,000 shares of its Common Stock to the
Company. Its deposits have been federally insured up to applicable limits, and
it has been a member of the Federal Home Loan Bank ("FHLB") system since 1959.
Cecil Federal's deposits are currently insured by the Savings Association
Insurance Fund ("SAIF") of the FDIC and it is a member of the FHLB of Atlanta.

         Cecil Federal's primary business, is the origination of mortgage loans
secured by single-family residential real estate located primarily in Cecil and
Harford counties, Maryland, with funds obtained through the attraction of
deposits, primarily certificate accounts with terms of 60 months or less,
savings accounts and transaction accounts. To a lesser extent, Cecil Federal
also makes loans on commercial and multi-family real estate, construction loans
on one- to four-family residences, home equity loans and land loans. Cecil
Federal also makes consumer loans including education loans, personal and
commercial lines of credit, automobile loans and loans secured by deposit
accounts. Cecil Federal purchases mortgage-backed securities and invests in
other liquid investment securities when warranted by the level of excess funds.
Cecil Federal conducts it business through its main office in Elkton, Maryland,
branches in Elkton and North East, Maryland, and through the Columbian Bank
division's main office and a branch office in Havre de Grace Maryland.

         Cecil Federal has two wholly owned subsidiaries, Cecil Service
Corporation and Cecil Financial Services Corporation. Cecil Service
Corporation's primary business is acting as leasing agent for the North East
Plaza Branch and Cecil Financial Services Corporation's primary business is the
operation, through a partnership with UVEST Investment Services, of a full range
of brokerage and investment services.

                                     Page 9
<PAGE>

         Cecil Federal's business strategy is to operate as an independent
community-oriented savings bank dedicated to residential mortgage lending, and,
to a lesser extent, construction and consumer lending, funded primarily by
retail deposits. Cecil Federal has sought to implement this strategy by (1)
emphasizing residential mortgage lending through the origination of
adjustable-rate mortgage loans; (2) investing in adjustable-rate and short-term
liquid investments; (3) reducing interest rate risk exposure by better matching
asset and liability maturities and rates; (4) maintaining asset quality; (5)
containing operating expenses; and (6) maintaining "well capitalized" status
combined with moderate growth.

Asset/Liability Management
--------------------------

         The ability to maximize net interest income is largely dependent upon
the achievement of a positive interest rate spread (the difference between the
weighted average interest yields earned on interest-earning assets and the
weighted average interest rates paid on interest-bearing liabilities) that can
be sustained during fluctuations in prevailing interest rates. The Company's
asset/liability management policies are designed to reduce the impact of changes
in interest rates on its net interest income by achieving a more favorable match
between the maturities or repricing dates of its interest-earning assets and
interest-bearing liabilities. The Bank has implemented policies by generally
emphasizing the origination of one-year, three-year and five-year adjustable
rate mortgage loans and short-term consumer lending. Since 1995, the Bank has,
from time to time, originated fixed rate mortgages for sale in the secondary
market. Presently, the Bank is not originating loans for sale in the secondary
market. Management has been monitoring the retention of fixed rate loans through
its asset/liability management policy.

         Management intends to continue to concentrate on maintaining its
interest rate spread in a manner consistent with its lending policies, which are
principally the origination of adjustable-rate mortgages, with an appropriate
blend of fixed-rate mortgage loans in its primary market area.

Comparison of Financial Condition at September 30, 2001 and December 31, 2000
-----------------------------------------------------------------------------

         The Company's assets increased by $5,953,136, or 4.9% to $127,913,836
at September 30, 2001 from $121,960,700 at December 31, 2000. Cash and due from
banks increased by $1,086,502 or 71.0% to $2,617,049 at September 30, 2001 from
$1,530,547 at December 31, 2000. The loans receivable portfolio, net of the
allowance for loan losses, increased by $928,923 or 0.9% to $103,510,495 at
September 30, 2001 from $102,581,572 at December 31, 2000. Interest-bearing cash
increased by $783,543 or 33.3% to $3,133,602 at September 30, 2001 from
$2,350,059 at December 31, 2000. Investment securities held to maturity
decreased $2,802,226, or 52.5%, to $2,533,063 at September 30, 2001 from
$5,335,289 at December 31, 2000. Investment securities held for sale increased
$6,642,773 or 254.2%, to $9,255,655 at September 30, 2001 from $2,612,882 at
December 31, 2000. The decrease in investment securities held to maturity, along
with the increase in investments held for sale, with the exception of U. S.
Treasury securities is primarily the result of the Company classifying all
investments as investment held for sale effective January 1, 2001. The Company's
stock investment in Federal Home Loan Bank of Atlanta increased by $50,000, or
5.5% to $955,000 at September 30, 2001 from $905,000 at December 31, 2000, as a
result of stock purchase requirements imposed by the Federal Home Loan Bank of
Atlanta. Federal Home Loan Bank of Atlanta stock is currently paying an
annualized dividend rate of 6.75%.


         The Company's liabilities increased $5,355,841, or 4.8% to $115,900,255
at September 30, 2001 from $110,544,414 at December 31, 2000. Savings deposits
increased $8,984,507, or 9.4% to $104,897,894 at September 30, 2001 from
$95,913,387 at December 31, 2000. During the nine months ended September 30,
2001, the Company's savings deposits increased due to increased movement out of
investment securities into savings instruments along with a greater marketing
effort. Advances from the Federal Home Loan Bank of Atlanta decreased by
$3,250,000, or 24.5% to $10,000,000 at September 30, 2001 from $13,250,000 at
December 31, 2000. These decreases were reduced due to the Bank's increased
savings deposits. Escrow payments received in advance for the payment of taxes
and insurance on loans receivable decreased $195,897, or 28.7% to $485,956 at
September 30, 2001 from $681,853 at December 31, 2000. Other liabilities
decreased $182,769, or 33.5% to $362,373 at September 30, 2001 from $545,142 at
December 31, 2000.

         The Company's stockholders' equity increased by $597,295, or 5.2% to
$12,013,581 at September 30, 2001 from $11,416,286 at December 31, 2000. The
increase was the result of an increase in retained earnings of

                                    Page 10
<PAGE>


$409,828, or 6.3% to $6,953,030 at September 30, 2001 from $6,543,202 at
December 31, 2000, and an increase in accumulated other comprehensive income.
Accumulated other comprehensive income, consisting of unrealized gains or losses
on investment securities available for sale, increased $87,287 to $84,671 at
September 30, 2001 from $(2,616) at December 31, 2000. The Company paid its
regular dividend of $.10 per share for the quarter ended September 30, 2001.


RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2001: Net income for the three month period
ended September 30, 2001 increased $25,753 or 14.5% to $203,807 as compared to
net income for the same period in 2000 of $178,054. The annualized return on
average assets and annualized return on average equity were 0.64% and 6.81%
respectively, for the three-month period ended September 30, 2001. This compares
to an annualized return on average assets and annualized return on average
equity of 0.57% and 6.35% respectively, for the same period in 2000.

         Net interest income, the Company's primary source of income, increased
5.9%, or $65,815 for the three months ended September 30, 2001, over the same
period in 2000. The weighted average yield on interest earning assets decreased
from 8.23% for the three months ended September 30, 2000 to 7.91% for the three
months ended September 30, 2001. The weighted average rate paid on interest
bearing liabilities decreased from 4.67% for the three months ended September
30, 2000 to 4.02% for the three months ended September 30, 2001.

         Interest on loans receivable decreased by $65,650 or 3.0%, from
$2,209,639 for the three months ended September 30, 2000 to $2,143,989 for the
three months ended September 30, 2001. The decrease is attributable to a
decrease in the average balance outstanding and a decrease in the
weighted-average yield. The average balance outstanding decreased by $699,045
from $103,528,717 for the three months ended September 30, 2000 to $102,829,672
for the three months ending September 30, 2001. The weighted-average yield
decreased from 8.45% for the three months ended September 30, 2000 to 8.34% for
the three months ended September 30, 2001.

         Interest on investment securities increased $12,614 or 9.4% from
$133,611 for the three months ended September 30, 2000 to $146,225 for the three
months ended September 30, 2001. The average outstanding balance increased
$2,049,428 from $8,252,944 for the three months ended September 30, 2000 to
$10,302,372 for the three months ending September 30, 2001. The weighted-average
yield decreased from 6.70% for the three months ended September 30, 2000 to
5.68% for the three months ended September 30, 2001.

         Interest on other interest earning assets decreased $42,676, or 60.5%
from $70,484 for the three months ended September 30, 2000 to $27,808 for the
three months ended September 30, 2001. The decrease was the result of a $583,732
decrease in the average outstanding balance for the three months ended September
30, 2001 over the three months ended September 30, 2000 and a decrease in the
weighted-average yield, from 5.99% for the three months ended September 30, 2000
to 2.92% for the three months ended September 30, 2001. Other investments
primarily are short-term liquidity accounts with variable rates.

         Interest on savings deposits increased $6,124 or 0.6% from $1,046,172
for the three months ended September 30, 2000 to $1,052,296 for the three months
ended September 30, 2001. The average balance outstanding increased $8,141,632
for the period noted above. The weighted-average rate paid on deposits decreased
from 4.37% for the three months ended September 30, 2000 to 4.05% for the three
months ended September 30, 2001. Interest expense paid on borrowings decreased
$170,195, or 63.7% from $267,345 for the three months ended September 30, 2000
to $97,150 for the three months ended September 30, 2001. The average balance
outstanding decreased $6,186,654 for the period noted above. The weighted
average yield decreased from 5.38% for the three months ended September 30, 2000
to 3.89% for the three months ended September 30, 2001.

         Noninterest income decreased 10.8%, down $15,352 for the three months
ended September 30, 2001, over the same period in 2000. Checking account fees
decreased $2,187, or 3.0%. Commission income decreased $3,390 or 15.8% from
$21,522 for the three months ended September 30, 2000 to $18,132 for the three
months ended September 30, 2001. The decrease is attributable to decreased sales
of insurance and investment products through the Bank's service corporation,
Cecil Financial Services. Other income decreased $36,278 or 75.2% for the period
noted. The decrease in this area can be primarily attributable to the
reclassification of the ATM fees.

                                    Page 11
<PAGE>

         Noninterest expense increased 5.8%, up $51,320 for the three months
ended September 30, 2001, over the same period in 2000. Compensation and
benefits decreased $14,931, or 3.4% for the three months ended September 30,
2001 over the same period in 2000. The decrease is attributable to the
elimination of several management positions as a result of the merger of
Columbian Bank into Cecil Federal. Occupancy expense increased $16,372, or 36.9%
to $60,714 for the three months ended September 30, 2001 from $44,342 for the
three months ended September 30, 2000. The increase is associated with the
increased lease expenses, depreciation expenses, and utility expenses. Equipment
and data processing expenses increased $15,520, or 14.9% to $119,478 for the
three months ended September 30, 2001 from $103,958 for the three months ended
September 30, 2000. The SAIF deposit premium decreased $6,873 or 33.3% for the
three months ended September 30, 2001 over the same period in 2000. Other
expenses increased $41,232, or 20.5% to $242,011 for the three months ended
September 30, 2001 from $200,779 for the three months ended September 30, 2000.

         Income tax expense for the three-month period ended September 30, 2001
and 2000 was $122,932 and $109,542, respectively, which equates to effective
rates of 37.6% and 38.1% respectively.

Nine Months Ended September 30, 2001: Net income for the nine month period ended
September 30, 2001 decreased $18,118 or 3.0% to $577,633, compared to net income
of $595,751 for the same period in 2000. The annualized return on average assets
and annualized return on average equity were 0.62% and 6.54% respectively, for
the nine month period ended September 30, 2001. This compares to an annualized
return on average assets and annualized return on average equity of 0.65% and
7.21% respectively, for the same period in 2000.

         Net interest income, the Company's primary source of income, increased
1.7% up $56,238 for the nine months ended September 30, 2001, over the same
period in 2000. The weighted-average yield on interest earning assets increased
from 7.98% for the nine months ended September 30, 2000 to 8.30% for the nine
months ended September 30, 2001. The weighted average rate paid on interest
bearing liabilities decreased from 4.32% for the nine months ended September 30,
2000 to 4.23% for the nine months ended September 30, 2001.

         Interest on loans receivable increased by $282,141 or 4.5%, from
$6,310,626 for the nine months ended September 30, 2000 to $6,592,767 for the
nine months ended September 30, 2001. The average balance outstanding increased
$1,608,830 from $101,057,945 for the nine months ended September 30, 2000 to
$102,666,775 for the nine months ended September 30, 2001. The weighted-average
yield increased from 8.25% for the nine months ended September 30, 2000 to 8.56%
for the nine months ended September 30, 2001.

         Interest on investment securities decreased $51,657 or 12.0% from
$429,852 for the nine months ended September 30, 2000 to $378,195 for the nine
months ended September 30, 2001. The average outstanding balance decreased
$1,765,536 for the nine months ended September 30, 2001 from the nine months
ended September 30, 2000. The weighted-average yield increased from 6.27% for
the nine months ended September 30, 2000 to 6.84% for the nine months ended
September 30, 2001. Interest on other interest earning assets decreased $82,159,
or 45.9%, from $178,859 for the nine months ended September 30, 2000 to $96,700
for the same period in 2001. The weighted-average yield decreased from 5.34% for
the nine months ended September 30, 2000 to 3.85% for the nine months ended
September 30, 2001. The average outstanding balance decreased $1,072,375 from
$4,417,040 for the nine months ended September 30, 2000 to $3,344,665 for the
nine months ended September 30, 2001.

         Interest on savings deposits increased $82,687, or 2.7% from $3,107,220
for the nine months ended September 30, 2000 to $3,189,907 for the nine months
ended September 30, 2001. The average balance outstanding increased $2,652,124,
or 2.7%, from $97,819,742 for the nine months ended September 30, 2000 to
$100,471,866 for the nine months ended September 30, 2001. The weighted-average
rate paid on deposits of 4.23% was the same for the periods noted above.
Interest expense paid on borrowings increased $10,525, or 2.3% from $463,855 for
the nine months ended September 30, 2000 to $474,380 for the nine months ended
September 30, 2001. Increases are attributable to increases in the weighted
average cost of funds from 5.38% for the nine months ended September 30, 2000 to
7.82% for the nine months ended September 30, 2001. The average balance
outstanding decreased $3,404,434 or 29.6% from $11,489,434 for the nine months
ended September 30, 2000 to $8,085,000 for the nine months ended September 30,
2001.

                                    Page 12
<PAGE>

         Noninterest income decreased $27,805 or 6.6% to $394,159 for the nine
months ended September 30, 2001 from $421,964 for the same period in 2000.
Checking account fees increased $11,344, or 5.6%. Commission income decreased
$39,881, or 43.3% for the nine months ended September 30, 2001 over the same
period in 2000. The decrease was the result of decreased sales of insurance and
investments products. Other income decreased $72,969 or 57.6% for the period
noted. Decreases in this area can be primarily attributable to the
reclassification of the ATM fees.

         Noninterest expense increased $173,222 or 6.6% to $2,802,939 for the
nine month period ended September 30, 2001 from $2,629,717 for the nine months
ended September 30, 2000. Compensation and benefits increased 0.8% or $9,899 for
the nine months ended September 30, 2001 over the same period in 2000. The
increase can be attributed to annual salary increases and medical premium
increases offset by decreases is attributable to the elimination of several
management positions as a result of the merger of Columbian Bank into Cecil
Federal. Occupancy expense increased $44,971 or 34.0% to $177,305 for the nine
months ended September 30, 2001 from $132,334 for the nine months ended
September 30, 2000. The increase is associated with the increase lease expenses,
depreciation expenses, and utility expenses. Equipment and data processing
expenses increased 6.9% or $22,009 for the nine months ended September 30, 2001
over the same period in 2000. The SAIF deposit premium increased $3,869 or 7.7%
for the nine months ended September 30, 2001 over the same period in 2000. Other
expenses increased $92,474 or 15.0% for the nine months ended September 30, 2001
over the same period in 2000.

         Income tax expense for the nine month period ended September 30, 2001
and 2000 was $353,022 and $365,693, which equates to effective rates of 37.9%
and 38.0% respectively.

Loans Receivable

         The Company's lending activities are predominantly conducted in Cecil
and Harford Counties in the State of Maryland. The following table shows the
composition of the loan portfolio at the indicated dates

<TABLE>
<CAPTION>

                                                                September 30,                     December 31,
                                                            -----------------------          -----------------------
                                                                     2001                              2000
                                                            -----------------------          -----------------------

                                                            Amount            %             Amount           %
                                                            ------          ------          ------         ------
                                                                            (Dollars in thousands)
<S>                                                         <C>             <C>              <C>            <C>
Type of Loan Real estate loans:
  Construction loans .....................................  $   6,594       6.35%            $  4,747       4.61%
  One- to four-family residential and home equity ........     72,260      69.60               73,498      71.36
  Multi-family residential................................      2,221       2.14                  962       0.93
  Land....................................................      2,935       2.83                3,925       3.81
  Commercial..............................................      7,328       7.06                6,299       6.12

Commercial business loans.................................      5,417       5.22                5,335       5.18

Consumer loans:
  Automobile loans........................................      2,486       2.39                3,236       3.14
  Education loans.........................................         32       0.03                   41       0.04
  Savings account loans...................................        756       0.73                  883       0.86
  Home improvement loans..................................          0        -                      2        -
  Personal loans..........................................      3,796       3.65                4,072       3.95
                                                            ---------      -----             --------      -----
      Subtotal loans......................................    103,825     100.00%             103,000     100.00%
                                                                          ======                          ======

Less: Loan loss reserve...................................        315                             419
                                                            ---------                        --------

     Total loans..........................................  $ 103,510                        $102,581
                                                             ========                        ========
</TABLE>

                                    Page 13
<PAGE>


Nonperforming Assets and Problem Loans
--------------------------------------

         Management reviews and identifies all loans and investments that
require designation as nonperforming assets. Nonperforming assets are : (i)
loans accounted for on a nonaccrual basis, including all loans 90 or more days
past due; (ii) troubled debt restructurings; and (iii) assets acquired in
settlement of loans. The following tables set forth certain information with
respect to nonperforming assets at September 30, 2001:

<TABLE>
<CAPTION>

                                                 September 30       December 31
                                                     2001               2000
                                                     ----               ----
                                                      (Dollars in thousands)
<S>                                                   <C>             <C>
Nonperforming loans:
  Residential mortgage                                $  474          $  361
  Consumer and other                                     209             274
                                                     --------         -------
         Total Nonperforming Loans                       683             635
Assets acquired in settlement of loans:
  Real estate held for development and sale
  Real estate held for investment and sale
  Repossessed assets                                      0              255
                                                     ----------       -------
Total Nonperforming Assets                            $  683          $  890
                                                        =======       =======

Nonperforming Loans to Total Loans                      0.66%           0.87%

Nonperforming Assets to Total Assets                    0.53%           0.73%

</TABLE>

Analysis of Allowance for Loan Losses
-------------------------------------

         The Bank records provisions for loan losses in amounts necessary to
maintain the allowance for loan losses at the level deemed appropriate. An
allowance for loan losses is provided through charges to income in an amount
that management believes will be adequate to absorb losses on existing loans
that may become uncollectible, based upon evaluations of the collectibility of
loans and prior loan loss experience. The allowance is based on careful,
continuous review and evaluation of the credit portfolio and ongoing, quarterly
assessments of the probable losses inherent in the loan portfolio, and, to a
lesser extent, unused commitments to provide financing. The Bank' employs a
systematic methodology for assessing the appropriateness of the allowance, which
includes determination of specific allowances and a formula allowance. Specific
allowances are established in cases where management has identified significant
conditions or circumstances related to a credit that management believes
indicate the probability that a loss may be incurred in an amount different from
the amount determined by application of the formula allowance. The formula
allowance is calculated by applying loss factors to corresponding categories of
outstanding loans and leases, excluding loans for which specific allocations
have been made. Allowances are established for credits that do not have specific
allowances according to the application of these credit loss factors to groups
of loans based upon (a) their credit risk grading, for loans categorized as
substandard or doubtful either by the Bank in its ongoing reviews or by federal
examiners in their periodic examinations, or (b) by type of loans, for other
credits without specific allocations credits. These factors are set by
management to reflect its assessment of the relative level of risk inherent in
each grade or category of loans, based primarily on the credit risk factors
employed by federal examiners at their most recent periodic examination of the
Bank. Federal examinations usually occur each year. In these examinations, the
federal examiners review the credit portfolio, establish credit risk ratings for
loans, identify charge offs, and perform their own calculation of the allowance
for loan losses. The use of these credit risk factors based primarily upon
periodic examinations is intended to provide a self-correcting mechanism to
reduce differences between estimated and actual observed losses. Management
adjusts the credit risk factors from time to time, however, based upon current
conditions, which may include the nature and volume of the loan portfolio,
overall portfolio quality, and current economic conditions that may affect the
borrowers' ability to pay. Determining the amount of the allowance for loan
losses requires the use of estimates and assumptions, which is permitted under
generally accepted accounting principles. Actual results could differ
significantly from those estimates. While management uses available information
to estimate losses on loans, future additions to the allowances may be necessary
based on changes in economic conditions. In addition, as noted above, federal
financial institution examiners, as an integral part of their examination
process, periodically review the Bank's

                                    Page 14
<PAGE>

allowance for loan losses, and may require the Bank to recognize additions to
the allowances based on their judgments about information available to them at
the time of their examination. During the first nine months of 2001, there were
no changes in the Bank's methodology for assessing the appropriateness of the
allowance.

         Management determined that the appropriate allowance for loan losses at
September 30, 2001 was $315,000, (0.30% of total loans), a decrease of $104,000
(24.8%) from the $419,000 allowance (0.41% of loans) at December 31, 2000.
Annualized charge offs for the first nine months of 2001 were 0.21% of average
loans, down approximately 1/3 from the 0.31% of average loans recorded for the
year 2000. Total nonperforming loans at September 30, 2001 were $683,000, up
$48,000 (7.6%) from year-end 2000. However, a significantly larger amount of
nonperforming loans at September 30, 2000 consisted of residential real estate
loans, which generally have the lowest loss rates. At September 30, 2000,
nonperforming consumer and other loans, which generally have higher loss rates
than do residential mortgage loans, were $209,000, down $65,000 (23.7%) from
year-end 2000. The decrease in the allowance is primarily the result the
improved credit quality reflected in the allowance calculations, offset in part
by the effects of an increase in the percentage of total loans other than
one-to-four family residential and home equity loans. At September 30, 2001,
one-to-four family residential and home equity loans, which generally are
assigned the lowest credit risk factors, comprise 69.60 % of the portfolio,
compared to 71.36% at December 31, 2000. (Please see the above table of Loans
Receivable.)

         The provision for loans losses required for the first nine months of
2001 was $109,500, down $114,000, or $51.0%, form the first nine months of 2000.
For the third quarter, the 2001 provision was $46,500, down $40,000, or 46.2%,
from 2000.

A summary of activity in the allowance is shown below.

<TABLE>
<CAPTION>

                                                                       Nine Months Ended      12 Months Ended
                                                                       -----------------     ---------------
                                                                       September 30, 2001    December 31, 2000
                                                                       ------------------    -----------------
                                                                                   (In thousands)
                                                                                   --------------
<S>                                                                              <C>
Balance at beginning of period.......................................       $   419               $   434
                                                                            -------               -------

Loans charged-off:
  Residential real estate mortgage loans.............................            30                    --
  Commercial.........................................................            52                    39
  Consumer...........................................................           183                   295
                                                                            -------               -------
Total charge-offs....................................................           265                   334
                                                                            -------               -------
Recoveries:
  Residential real estate mortgage loans.............................            --                    --
  Commercial.........................................................            --                    --
  Consumer...........................................................            52                    14
                                                                            -------               -------
Total recoveries.....................................................            52                    14
                                                                            -------               -------
Net loans charged-off................................................           213                   320
                                                                            -------               -------
Provision for loan losses............................................           109                   305
                                                                            -------               -------
Balance at end of period.............................................       $   315               $   419
                                                                            =======               =======
Net charge-offs to average loans
  outstanding during the period (annualized).........................          0.21%                 0.31%
Allowance for loan losses to loans                                             0.30%                 0.41%
Allowance for loan losses to nonperforming loans                              46.12%                66.98%
</TABLE>

                                    Page 15

<PAGE>


Analysis of Savings Deposits

         The following table sets forth the dollar amount of deposits in the
various types of accounts offered by Cecil Federal between the dates indicated.

<TABLE>
<CAPTION>

                                     Balance at                                          Balance at
                                    September 30,          %                           December 31,          %
                                        2001            Deposits                            2000         Deposits
                                      --------          --------                          -------        --------
                                                              (Dollars in thousands)
<S>                                  <C>                 <C>                            <C>                <C>
Regular checking.................    $   8,048           7.67%                          $  4,990           5.20%
NOW accounts.....................        8,033           7.66                              8,364           8.72
Passbook.........................       10,536          10.04                             11,914          12.42
Statement savings................        3,754           3.58                              3,847           4.01
Money market.....................        2,974           2.84                              3,186           3.32
Christmas and Vacation club......          288           0.27                                 73           0.08
Certificates of Deposit..........       54,041          51.52                             51,274          53.46
IRA Certificates of Deposit......        9,616           9.17                              9,769          10.19
Money Market Certificate.........        7,608           7.25                              2,496           2.60
                                     ---------        -------                         ----------        -------
                                     $ 104,898         100.00%                          $ 95,913         100.00%
                                     =========         ======                           ========         ======
</TABLE>


Capital Adequacy
----------------

         Capital adequacy refers to the level of capital required to sustain
asset growth and to absorb losses. There are currently no regulatory capital
guidelines or requirements for the Company. The Office of Thrift Supervision
("OTS"), which is the Bank's principal regulator, has established requirements
for total and tier 1 (core) risk-based capital and tangible capital. At
September 30, 2001, the Bank exceeded all applicable capital requirements,
having a total risk based capital ratio of 11.34%, a tier 1 risk-based capital
ratio of 7.62%, and a tangible capital ratio of 7.62%. As of September 30, 2001,
the Bank also met the criteria for classification as a "well-capitalized"
institution under the prompt correction action rules promulgated under the
Federal Deposit Insurance Act. Designation of the bank as a "well-capitalized"
institution under these regulations does not constitute a recommendation or
endorsement of Cecil Federal Savings Bank's regulators.


Contingencies
-------------

In the normal course of business, the Company entered into an agreement with
Tri-State Armored Services, Inc. for cash replenishment and settlement of our
off-site ATMs. Tri-State Armored Services, Inc filed for Bankruptcy protection
on March 2, 2001. The assets of Tri-State have been seized by the Bankruptcy
Trustee, including presumably some of the Company's funds that had been wired to
Tri-State for the purpose of replenishing our off-site ATMs. The investigation
is ongoing and the Company intends to vigorously pursue recovery through all
available channels. Pending further proceedings, the Company cannot reasonably
estimate the amount of loss, if any, it may incur as a result of these events.
Therefore, no accrual for any potential loss has been reflected in the
accompanying financial statements. The maximum exposure to the Company is
$70,000.

                                    Page 16
<PAGE>


PART II..Other Information:
 .
        Item 1.  Legal Proceedings -
                     Not Applicable

        Item 2.  Changes in Securities -
                     Not Applicable

        Item 3.  Defaults Upon Senior Securities -
                     Not Applicable

        Item 4.  Submission of Matters to a Vote of Security Holders
                     Not Applicable

        Item 5.  Other Information -
                     Not Applicable

        Item 6.  Exhibits and Reports on Form 8-K -
                     No reports on Form 8-K were filed during the three months
                     ended September 30, 2001


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 hereunto duly authorized.

                                          CECIL BANCORP, INC.

Date:      November 12, 2001              By: /s/  Mary Beyer Halsey
                                          Mary Beyer Halsey
                                          President and Chief Executive Officer






                                    Page 17