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, 2003.

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


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.

                                     801,510
                                     -------

<Page>

                       CECIL BANCORP INC. AND SUBSIDIARIES

                                    CONTENTS
                                                                            PAGE
                                                                            ----
PART I.    FINANCIAL INFORMATION

           ITEM 1.  Financial Statements (unaudited)

                    Consolidated Statements of Financial Condition -
                    September 30, 2003 and  December 31, 2002                  3

                    Consolidated Statements of Income and Comprehensive
                    Income for the Nine and Three Months Ended
                    September 30, 2003 and 2002                                4

                    Consolidated Statements of Cash Flows
                    for Nine Months Ended September 30, 2003 and 2002          6

                    Notes to Consolidated Financial Statements                 7

           ITEM 2.  Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                     9-17

           ITEM 3.  Controls and Procedures                                   17

PART II. OTHER INFORMATION                                                    18

SIGNATURES                                                                    18

                                     Page 2

<PAGE>

                      CECIL BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                    SEPTEMBER 30, 2003 AND DECEMBER 31, 2002

<TABLE>
<CAPTION>
                                                                September 30,    December 31,
                                                                    2003              2002
                                                                -------------    -------------
                                                                 (Unaudited)
<S>                                                             <C>              <C>
ASSETS
Cash and due from banks                                         $     974,698    $     986,389
Interest bearing deposits with banks                                3,341,713        3,538,570
Investment securities:
   Securities held-to-maturity (fair value of $3,495,115
     in 2003 and $3,495,315 in 2002)                                3,497,820        3,494,020
   Securities available-for-sale-at fair value                      4,288,792        6,994,386
Loans receivable                                                  115,996,643      102,183,554
   Less: Allowance for loan losses                                   (762,048)        (612,679)
                                                                -------------    -------------
       Loans receivable, net                                      115,234,595      101,570,875
Property and equipment - net                                        2,689,436        2,202,506
Stock in Federal Reserve Bank - at cost                               117,850          117,850
Stock in Federal Home Loan Bank of Atlanta - at cost                  641,100          955,000
Accrued interest receivable                                           738,404          524,892
Goodwill and other intangible assets                                2,278,432        2,243,796
Other assets                                                        3,755,954          491,330
                                                                -------------    -------------

       TOTAL ASSETS                                             $ 137,558,793    $ 123,119,614
                                                                =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
   Savings deposits                                             $ 111,037,030    $  99,831,411
   Advance payments by borrowers for property
     taxes and insurance                                              248,948          544,961
   Employee stock ownership plan debt                                  77,016           77,016
   Other liabilities                                                  723,389          479,919
   Advances from Federal Home Loan Bank of Atlanta                  9,000,000        9,000,000
                                                                -------------    -------------
       Total liabilities                                          121,086,383      109,933,307
                                                                -------------    -------------
STOCKHOLDERS' EQUITY:
   Common stock, $.01 par value; authorized 4,000,000 shares,
     issued and outstanding 801,510 shares in
     2003 and 640,559 in 2002                                           8,015            6,405
   Additional paid in capital                                       7,959,223        5,427,154
   Employee stock ownership plan debt                                 (77,016)         (77,016)
   Deferred compensation - Management Recognition Plan                (11,655)         (11,655)
   Retained earnings                                                8,559,685        7,803,743
   Accumulated other comprehensive income, net                         34,157           37,676
                                                                -------------    -------------
       Total stockholders' equity                                  16,472,410       13,186,307
                                                                -------------    -------------
       TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY                                                   $ 137,558,793    $ 123,119,614
                                                                =============    =============
</TABLE>

See accompanying notes.


                                     Page 3
<PAGE>



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

<TABLE>
<CAPTION>
                                           Three Months Ended September 30,     Nine Months Ended September 30,
                                                2003            2002                  2003             2002
                                            -----------      -----------          -----------      -----------
                                            (Unaudited)      (Unaudited)          (Unaudited)      (Unaudited)
<S>                                         <C>              <C>                  <C>              <C>
INTEREST INCOME:
  Loans receivable                          $ 2,217,605      $ 1,927,916          $ 6,120,775      $ 5,922,884
  Investment securities                          37,308          118,510              183,879          357,284
  Dividends on FHLB stock                         8,054           12,500               34,131           41,085
  Other interest-earning assets                   6,573            8,393               21,512           27,548
                                            -----------      -----------          -----------      -----------
      Total interest income                   2,269,540        2,067,319            6,360,297        6,348,801
                                            -----------      -----------          -----------      -----------
INTEREST EXPENSE:
  Interest expense on deposits                  554,264          658,378            1,686,095        2,159,661
  Borrowings                                    107,467          110,270              321,313          325,132
                                            -----------      -----------          -----------      -----------
      Total interest expense                    661,731          768,648            2,007,408        2,484,792
                                            -----------      -----------          -----------      -----------
      Net interest income                     1,607,809        1,298,671            4,352,889        3,864,009
  Provision for loan losses                      55,000          150,000              165,000          502,000
                                            -----------      -----------          -----------      -----------
      Net interest income after
         provision for loan losses            1,552,809        1,148,671            4,187,889        3,362,009
                                            -----------      -----------          -----------      -----------
NONINTEREST INCOME:
  Checking account fees                          83,724           74,344              236,389          213,638
  ATM  fees                                      25,607           28,695               87,771           80,201
  Commission income                              12,077           10,546               26,701           38,566
      Gain on sale of loans                      38,646                0              149,567                0
  Loss on Sale of investment securities         (41,775)               0              (41,775)               0
  Other                                          10,865           24,709               48,304          166,431
                                            -----------      -----------          -----------      -----------
      Total noninterest income                  129,144          138,294              506,957          498,835
                                            -----------      -----------          -----------      -----------
NONINTEREST EXPENSE:
  Compensation and benefits                     652,722          459,708            1,708,331        1,313,597
  Occupancy                                      74,710           55,901              219,944          165,792
  Equipment and data processing
      expense                                   139,540          114,875              397,190          340,787
  SAIF deposit insurance premium                  4,008           14,078               12,139           43,132
  Other                                         251,051          230,660              746,954          746,356
                                            -----------      -----------          -----------      -----------
      Total noninterest expense               1,122,031          875,222            3,084,558        2,609,665
                                            -----------      -----------          -----------      -----------
INCOME BEFORE INCOME TAXES                      559,922          411,743            1,610,288        1,251,180
                                            -----------      -----------          -----------      -----------
INCOME TAX EXPENSE                              215,936          161,143              616,556          484,557
                                            -----------      -----------          -----------      -----------
NET INCOME                                  $   343,986      $   250,600          $   993,732      $   766,623
                                            ===========      ===========          ===========      ===========
</TABLE>


(continued)

                                     Page 4
<PAGE>



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

                                   (Continued)
<TABLE>
<CAPTION>

                                        Three Months Ended September 30,     Nine Months Ended September 30,
                                        --------------------------------     -------------------------------
                                             2003             2002               2003               2002
                                          -----------      -----------        -----------       -----------
                                          (Unaudited)      (Unaudited)        (Unaudited)       (Unaudited)
<S>                                        <C>              <C>                <C>               <C>
NET INCOME                                 $ 343,986        $ 250,600          $ 993,732         $ 766,623

OTHER COMPREHENSIVE INCOME
  Unrealized gains (losses) on
      investment securities,
      net of deferred taxes                      795           52,430             (3,519)           70,134
                                           ---------        ---------          ---------         ---------
TOTAL COMPREHENSIVE INCOME                 $ 344,781        $ 303,030          $ 990,213         $ 836,757
                                           =========        =========          =========         =========
Earnings per common share basis            $    0.43        $    0.40          $    1.32         $    1.23
                                           =========        =========          =========         =========
Earnings per common share - diluted        $    0.43        $    0.39          $    1.30         $    1.21
                                           =========        =========          =========         =========

</TABLE>





                                     Page 5

<PAGE>


                      CECIL BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

<TABLE>
<CAPTION>
                                                                             2003                 2002
                                                                         -------------        ------------
                                                                          (unaudited)          (unaudited)
<S>                                                                      <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Adjustments to reconcile net income to net cash
     provided by operating activities:
     Net income                                                          $    993,732         $    766,623
     Depreciation and amortization                                            132,450              194,886
     Provision for loan losses                                                165,000              502,000
     Gain on sale of loans                                                   (149,567)                  --
     Excess servicing rights                                                  (34,636)                  --
     Reinvested dividends                                                    (146,560)            (100,321)
     Originations of loans held for sale                                   (7,811,952)                  --
     Proceeds from sales of loans held for sale                             7,961,519                   --
     Net change in:
       Accrued interest receivable and other assets                        (3,463,496)             178,103
       Other liabilities                                                      243,469              (91,553)
                                                                         ------------         ------------
              Net cash (used in) provided by operating activities          (2,110,041)           1,449,738
                                                                         ------------         ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of investment securities available for sale                  (14,550,000)          (7,535,731)
   Purchases of investment securities held to maturity                     (9,464,564)          (5,972,557)
   Proceeds from maturities, calls and principal payments of
     investment securities available-for-sale                              17,382,529            9,153,983
   Proceed for maturities, calls and principal payments of
     investment securities held to maturity                                 9,500,000            5,500,000
   Sale of stock in Federal Home Loan Bank                                    313,900                   --
   Net (increase) decrease in loans                                       (13,828,720)           1,502,619
   Proceeds from sales of real estate owned                                        --              172,753
   Purchases of property and equipment - net                                 (657,146)             (33,427)
                                                                         ------------         ------------
              Net cash provided by (used in) investing activities         (11,304,001)           2,787,640
                                                                         ------------         ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Net increase (decrease) in deposits                                     11,205,619           (4,788,434)
   Decrease in advance payments by borrowers for
     property taxes and insurance                                            (296,013)            (301,624)
   Proceeds from issuance of common stock                                   2,533,679               88,936
   Net decrease increase in short-term borrowings                                  --           (1,000,000)
   Payments of cash dividends                                                (237,790)            (187,504)
                                                                         ------------         ------------
              Net cash provided by (used in) financing activities          13,205,495           (6,188,626)
                                                                         ------------         ------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                              208,547           (1,951,248)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                            4,524,959            5,546,242
                                                                         ------------         ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                               $  4,316,412         $  3,594,994
                                                                         ============         ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
   Cash paid for income taxes                                            $    527,806         $    600,000
   Cash paid for interest                                                   2,006,160            2,476,041

</TABLE>


                                     Page 6
<PAGE>

                      CECIL BANCORP, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

    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, 2003 and the results of its operations and cash
    flows for the three and nine months ended September 30, 2003 and 2002. 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 of America 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, 2002. The results of operations for the three and
    nine months ended September 30, 2003 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 in the United States of America
    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

               Basic 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 stock" method.

<TABLE>
<CAPTION>
                                                              Three Months Ended September 30,     Nine Months Ended September 30,
                                                              --------------------------------------------------------------------
                                                                   2003            2002                  2003           2002
                                                              --------------------------------------------------------------------
     <S>                                                         <C>             <C>                   <C>             <C>
     Basic:
           Net Income available to common stockholders           $343,986        $250,600              $993,732        $766,623
                                                              --------------------------------------------------------------------
           Average common shares outstanding                      793,298         627,409               755,475         624,722
                                                              --------------------------------------------------------------------
             Basic net income per share                          $   0.43        $   0.40              $   1.32        $   1.23
                                                              ====================================================================
    Diluted:
           Net Income available to common stockholders           $343,986        $250,600              $993,732        $766,623
                                                              --------------------------------------------------------------------
           Average common shares outstanding                      793,298         627,409               755,475         624,722

           Stock option adjustment                                 10,143           9,535                10,232           8,795
                                                              --------------------------------------------------------------------
           Average common shares outstanding - diluted            803,441         636,944               765,707         633,517
                                                              --------------------------------------------------------------------
             Diluted net income per share                        $   0.43        $   0.39              $   1.30        $   1.21
                                                              ====================================================================
</TABLE>

                                     Page 7

<PAGE>



    4. NEW ACCOUNTING PRONOUNCEMENTS

               In December 2002, the Financial Accounting Standards Board (FASB)
    issued Statement of Financial Accounting Standards (SFAS) No. 148,
    Accounting for Stock-Based Compensation - Transition and Disclosure, which
    provides guidance on how to transition from the intrinsic value method of
    accounting for stock-based employee compensation under APB 25 to SFAS No.
    123's fair value method of accounting, if a company so elects. The Company
    will not adopt the fair value method of recording stock options under SFAS
    no. 123 and, accordingly, this standard will not have a material impact on
    result of operations, financial position or liquidity.

               In January 2003, the FASB issued Interpretation No. 46 (FIN 46),
    Consolidation of Variable Interest Entities, which clarifies the application
    of Accounting Research Bulletin No. 51, Consolidated Financial Statements,
    relating to consolidation of variable interest entities (VIE). The
    provisions of FIN 46 are effective July 1, 2003 for VIE created on or before
    January 31, 2003, and immediately for VIE created after January 31, 2003.
    The Company had determined that the implementation of this standard would
    not have a material effect on the financial statements.

               In April 2003, the FASB issued SFAS No. 149, Amendment of
    Statement 133 on Derivative Instruments and Hedging Activities, which is
    effective for contracts entered into or modified and hedging relationships
    designated after June 30, 2003. This statement amends and clarifies
    financial accounting and reporting for derivative instruments including
    certain derivative instruments embedded in other contracts and for hedging
    activities under SFAS No. 133, Accounting for Derivative Instruments and
    Hedging Activities. The Company has determined the implementation of this
    standard will not have a material effect on the financial statements.

               In May 2003, the FASB issued SFAS No. 150, Accounting for Certain
    Financial instruments with Characteristics of both Liabilities and Equity,
    which was effective May 31, 2003 for new or modified financial instruments
    and July 1, 2003 for existing financial instruments. This standard addresses
    the classification and measurement of financial instruments with
    characteristics of both liabilities and equity. The Company has determined
    the implementation of this standard will not have a material effect on the
    financial statements.


                                     Page 8
<PAGE>


                      CECIL BANCORP, INC. AND SUBSIDIARIES
            ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS
          FOR THE THREE AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2003

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 possible 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 Bank ("Cecil Federal" or the "Bank"). The Company is a
bank holding company subject to regulation by the Federal Reserve System.

         CECIL FEDERAL. Cecil Federal is a community-oriented financial
institution, which commenced operations in 1959 as a Federal savings and loan
association. 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
and the Federal Reserve System.

         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, Rising Sun 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 and Cecil Federal offer a
full range of brokerage and investment services.

         Cecil Federal' s business strategy is to operate as an independent
community-oriented commercial bank dedicated to residential mortgage lending,
and, to a lesser extent, commercial real estate, commercial business,
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) controlling
interest rate risk exposure; (4) maintaining asset quality; (5) containing
operating expenses; and (6) maintaining "well capitalized" status combined with
moderate growth.


                                     Page 9
<PAGE>

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 favorable
relationship 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. The Bank is currently 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, 2003 and December 31, 2002
-----------------------------------------------------------------------------

         The Company's assets increased by $14,439,179, or 11.7% to $137,558,793
at September 30, 2003 from $123,119,614 at December 31, 2002. Cash and due from
banks decreased by $11,691 or 1.2% to $974,698 at September 30, 2003 from
$986,389 at December 31, 2002. The loans receivable portfolio, net of the
allowance for loan losses, increased by $13,663,720 or 13.5% to $115,234,595 at
September 30, 2003 from $101,570,875 at December 31, 2002. This increase is
attributable to the Bank's ongoing Business Development program.
Interest-bearing cash decreased by $196,856 or 5.6% to $3,341,713 at September
30, 2003 from $3,538,570 at December 31, 2002. Investment securities held to
maturity increased $3,800, or 0.1%, to $3,497,820 at September 30, 2003 from
$3,494,020 at December 31, 2002. Investment securities available for sale
decreased $2,705,594 or 38.7%, to $4,288,792 at September 30, 2003 from
$6,994,386 at December 31, 2002. These funds were primarily used to fund the
increase in the loan portfolio.

         The loans receivable portfolio, net of the allowance for loan losses,
increased by $13,663,720 or 13.5% to $115,234,595 at September 30, 2003 from
$101,570,875 at December 31, 2002. Loans receivable before deduction of the
allowance for loan losses increased by $ 13.8 million, or 13.5%, primarily as a
result of a $ 8.2 million (84.1%) increase in commercial business loans and a
$4.5 million (30.4 %) increase in commercial real estate loans, and a $2.5
million (140.4%) increase in Land loans, offset in part by a $ 4.0 million
(7.0%) decline in portfolio one-to-four family residential mortgages, due mainly
to the sale of fixed rate originations. (Please see the table of Loans
Receivable later in this Management's Discussion.)

         The Company's stock investment in Federal Home Loan Bank of Atlanta
decreased $313,900, or 32.9% as a result of a change in the required investments
mandated by the FHLB. Federal Home Loan Bank of Atlanta stock is currently
paying an annualized dividend rate of 4.00%. Other intangible assets increased
$34,636 or 1.5%, primarily due to and increase in mortgage servicing rights.
Other assets increased $3,264,624 or 664.4% to $3,755,954 at September 30, 2003
from $491,330 at December 31, 2002. During the quarter ended September 30, 2003
the bank purchased $3,250,000 of bank-owned life insurance in order to fund
employee benefit programs which is included in other assets.

         The Company's liabilities increased $11,153,076, or 10.1% to
$121,086,383 at September 30, 2003 from $109,933,307 at December 31, 2002.
Savings deposits increased $11,205,619, or 11.2% to $111,037,030 at September
30, 2003 from $99,831,411 at December 31, 2002. During the nine months ended
September 30, 2003, the Company's savings deposits increased due to diversity in
marketing strategies on deposits. Advances from the Federal Home Loan Bank of
Atlanta remained the same. Escrow payments received in advance for the payment
of taxes and insurance on loans receivable decreased $296,013, or 54.3% to
$248,948 at September 30, 2003 from $544,961 at December 31, 2002 primarily due
to the annual payment of taxes in September. Other liabilities increased
$243,470, or 50.7% to $723,389 at September 30, 2003 from $479,919 at December
31, 2002, primarily as a result of U.S. Savings Bonds in collection and FHLMC
payment in process.


                                    Page 10
<PAGE>

         The Company's stockholders' equity increased by $3,286,103, or 24.9% to
$16,472,410 at September 30, 2003 from $13,186,307 at December 31, 2002. The
increase was the result of an increase in retained earnings of $755,942, or 9.7%
to $8,559,685 at September 30, 2003 from $7,803,743 at December 31, 2002, and an
increase in additional paid in capital of $2,521,267, or 46.5%. The Company
completed a private placement of 158,735 shares of newly issued common stock for
gross proceeds of $2,508,013. The Company paid its regular dividend of $.10 per
share for the quarter ended September 30, 2003.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2003: Net income for the three month period
ended September 30, 2003 increased $40,956 or 13.5% to $343,986 as compared to
net income for the same period in 2002 of $303,030. The annualized return on
average assets and annualized return on average equity were 1.02% and 8.66%
respectively, for the three-month period ended September 30, 2003. This compares
to an annualized return on average assets and annualized return on average
equity of 0.80% and 7.84% respectively, for the same period in 2002. The average
interest rate spread increased .51%, or 12.4%, from 4.12% for the quarter
average ended September 30, 2002 to 4.63% for the quarter average ended
September 30, 2003. The average net interest margin increased .48%, or 10.8%,
from 4.46% for the quarter average ended September 30, 2002 to 4.94% for the
quarter average ended September 30, 2003.

         Net interest income, the Company's primary source of income, increased
23.8%, or $309,138 for the three months ended September 30, 2003, over the same
period in 2002. The weighted average yield on interest earning assets decreased
from 7.1% for the three months ended September 30, 2002 to 6.97% for the three
months ended September 30, 2003. The weighted average rate paid on interest
bearing liabilities decreased from 2.98% for the three months ended September
30, 2002 to 2.34% for the three months ended September 30, 2003.

         Interest on loans receivable increased by $289,689 or 15.0%, from
$1,927,916 for the three months ended September 30, 2002 to $2,217,605 for the
three months ended September 30, 2003. The increase is attributable to an
increase in the average balance outstanding and a decrease in the
weighted-average yield. The average balance outstanding increased by $15,382,765
from $99,660,044 for the three months ended September 30, 2002 to $115,042,809
for the three months ending September 30, 2003. The weighted-average yield
decreased from 7.74% for the three months ended September 30, 2002 to 7.71% for
the three months ended September 30, 2003.

         Interest on investment securities decreased $81,203 or 68.5% from
$118,510 for the three months ended September 30, 2002 to $37,308 for the three
months ended September 30, 2003. The average outstanding balance decreased
$4,643,792 from $13,505,635 for the three months ended September 30, 2002 to
$8,861,843 for the three months ending September 30, 2003. The weighted-average
yield decreased from 3.51% for the three months ended September 30, 2002 to
1.68% for the three months ended September 30, 2003.

         Interest on other interest earning assets decreased $1,820 or 21.7%
from $8,393 for the three months ended September 30, 2002 to $6,573 for the
three months ended September 30, 2003. The decrease was the result of a
$3,240,614 increase in the average outstanding balance for the three months
ended September 30, 2003 over the three months ended September 30, 2002 offset
by a decrease in the weighted-average yield, from 1.43% for the three months
ended September 30, 2002 to 0.47% for the three months ended September 30, 2003.
Other investments primarily are short-term liquidity accounts with variable
rates.

         Interest on savings deposits decreased $104,115 or 15.8% from $658,378
for the three months ended September 30, 2002 to $554,263 for the three months
ended September 30, 2003. The average balance outstanding increased $11,013,432
for the period noted above. The weighted-average rate paid on deposits decreased
from 2.79% for the three months ended September 30, 2002 to 2.14% for the three
months ended September 30, 2003. Interest expense paid on borrowings decreased
$2,802, or 2.5% from $110.270 for the three months ended September 30, 2002 to
$107,467 for the three months ended September 30, 2003. The average balance
outstanding increased $666,667 for the period noted above. The weighted average
yield decreased from 4.90% for the three months ended September 30, 2002 to
4.45% for the three months ended September 30, 2003.



                                    Page 11
<PAGE>

         Non interest income decreased 6.6%, up $9,150 for the three months
ended September 30, 2003, over the same period in 2002. ATM fees decreased
$3,087, or 10.3%. Checking account fees increased $9,379, or 12.6%. Commission
income increased $1,531 or 14.5% from $10,546 for the three months ended
September 30, 2002 to $12,077 for the three months ended September 30, 2003.
Gain on sale of loans increased 100.0%, up $38,646 for the three months ended
September 30, 2003 as compared to the same period in 2002. Loss on sale of
investments increased $41,775, or 100% over the same period due to sale of
mutual funds to fund Loan Portfolio Growth. Other income decreased $13,845 or
56.0% from $24,709 for the three months ended September 30, 2002 to $10,865 for
the three months ended September 30, 2003.

         Non interest expense increased $246,809 or 28.2% for the three months
ended September 30, 2003, over the same period in 2002. Compensation and
benefits increased $193,015, or 42.0% for the three months ended September 30,
2003 over the same period in 2002 primarily due to an increase in staff.
Occupancy expense increased $18,809, or 33.6% from $55,901 for the three months
ended September 30, 2002 from $74,709 for the three months ended September 30,
2003 primarily due to the addition of Rising Sun Branch and The Loan Center
facility. Equipment and data processing expenses increased $24,666, or 21.5%
from $114,875 for the three months ended September 30, 2002 to $139,540 for the
three months ended September 30, 2003 primarily due to new computer technology
upgrade. The SAIF deposit premium decreased $10,070, or 71.5% from $14,078 for
the three months ended September 30, 2002 to $4,008 for the three months ended
September 30, 2003. Other expenses increased $20,371, or 8.8% from $230,660 for
the three months ended September 30, 2003 to $251,051 for the three months ended
September 30, 2003.

         Income tax expense for the three-month period ended September 30, 2003
and 2002 was $215,936 and $161,143, respectively, which equates to effective
rates of 38.5% and 39.1% respectively.

Nine Months Ended September 30, 2003: Net income for the nine month period ended
September 30, 2003 increased $227,109 or 29.6% to $993,732, compared to net
income of $766,623 for the same period in 2002. The annualized return on average
assets and annualized return on average equity were 1.00% and 8.51%
respectively, for the nine month period ended September 30, 2003. This compares
to an annualized return on average assets and annualized return on average
equity of 0.69% and 6.78% respectively, for the same period in 2002. The average
interest rate spread increased .29%, or 7.2%, from 4.02% for the quarter average
ended September 30, 2002 to 4.31% for the quarter average ended September 30,
2003. The average net interest margin increased .27%, or 6.2%, from 4.39% for
the quarter average ended September 30, 2002 to 4.66% for the quarter average
ended September 30, 2003.

         Net interest income, the Company's primary source of income, increased
12.7% up $488,880 for the nine months ended September 30, 2003, over the same
period in 2002. The weighted-average yield on interest earning assets decreased
from 7.21% for the nine months ended September 30, 2002 to 6.80% for the nine
months ended September 30, 2003. The weighted average rate paid on interest
bearing liabilities decreased from 3.19% for the nine months ended September 30,
2002 to 2.50% for the nine months ended September 30, 2003.

         Interest on loans receivable increased by $197,891 or 3.3%, from
$5,922,884 for the nine months ended September 30, 2002 to $6,120,775 for the
nine months ended September 30, 2003. The average balance outstanding increased
$8,678,092 from $100,302,486 for the nine months ended September 30, 2002 to
$108,980,578 for the nine months ended September 30, 2003. The weighted-average
yield decreased from 7.87% for the nine months ended September 30, 2002 to 7.49%
for the nine months ended September 30, 2003.

         Interest on investment securities decreased $173,405 or 48.5% from
$357,284 for the nine months ended September 30, 2002 to $183,879 for the nine
months ended September 30, 2003. The average outstanding balance decreased
$2,447,418 for the nine months ended September 30, 2003 from the nine months
ended September 30, 2002. The weighted-average yield decreased from 3.60% for
the nine months ended September 30, 2002 to 2.28% for the nine months ended
September 30, 2003.

         Interest on other interest earning assets decreased $6,954, or 16.9%,
from $41,085 for the nine months ended September 30, 2002 to $34,131 for the
same period in 2002. The weighted-average yield decreased from 1.25% for the
nine months ended September 30, 2002 to .71% for the nine months ended September
30, 2003. The average outstanding balance increased $1,071,377 from $2,949,858
for the nine months ended September 30, 2002 to $4,021,235 for the nine months
ended September 30, 2003.


                                    Page 12
<PAGE>

         Interest on savings deposits decreased $473,566 or 21.9% from
$2,159,661 for the nine months ended September 30, 2002 to $1,686,095 for the
nine months ended September 30, 2003. The average balance outstanding increased
$4,946,726, or 4.9%, from $100,695,065 for the nine months ended September 30,
2002 to $105,641,791 for the nine months ended September 30, 2003. The
weighted-average rate paid decreased from 3.04% for the nine months ended
September 30, 2002 to 2.29% for the nine months ended September 30, 2003.
Interest expense paid on borrowings decreased $3,819, or 1.2% from $325,132 for
the nine months ended September 30, 2002 to $321,313 for the nine months ended
September 30, 2003. The weighted average cost of funds increased from 4.67% for
the nine months ended September 30, 2002 to 4.70% for the nine months ended
September 30, 2003. The average balance outstanding decreased $164,835 or 1.8%
from $9,289,377 for the nine months ended September 30, 2002 to $9,124,542 for
the nine months ended September 30, 2003.

         Non interest income increased $8,122 or 1.6% from $498,835 for the nine
months ended September 30, 2002 to $506,957 for the same period in 2003. The
increase was primarily the result of an increase in gain on sale of loans by
$149,567. ATM fees increased $7,570, or 9.4% from $80,201 for the nine months
ended September 30, 2002 to $87,771 for the same period in 2003. Checking
account fees increased $22,751, or 10.6% for the nine months ended September 30,
2003 over the same period in 2002. Commission income decreased $11,865, or 30.8%
from $38,566 for the nine months ended September 30, 2002 to $26,701 for the
nine months ended September 30, 2003. The decline was the result of decreased
sales of insurance and investments products. Loss on sale of investments
increased $41,775, or 100%, primarily due to the sale of mutual funds used to
fund loan portfolio growth. Other income decreased $118,127 or 71.0% from
$166,431 for the nine months ended September 30, 2002 to $48,304 for the same
period in 2003. The decrease was attributable to a non-recurring gain on the
sale of real estate during the first quarter of 2002.

         Non interest expense increased $474,893 or 18.2% from $2,609,665 for
the nine month period ended September 30, 2002 to $3,084,558 for the nine months
ended September 30, 2003. Compensation and benefits increased $394,734, or 30.0%
from $1,313,597 to $1,708,331 for the nine months ended September 30, 2003 over
the same period in 2002 due to increase in staff. Occupancy expense increased
$54,152 or 32.7% from $165,792 for the nine months ended September 30, 2003 to
$219,944 for the nine months ended September 30, 2002. Equipment and data
processing expenses increased $56,406, or 16.6% from $340,787 to $397,190 for
the nine months ended September 30, 2003 over the same period in 2002. The SAIF
deposit premium decreased $30,993 or 71.9% for the nine months ended September
30, 2003 over the same period in 2002.

         Income tax expense for the nine month period ended September 30, 2003
and 2002 was $616,556 and $484,557, which equates to effective rates of 38.7%
and 37.9% respectively.


                                    Page 13
<PAGE>

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,
                                                                2003                           2002
                                                        --------------------           -------------------
                                                        Amount          %              Amount         %
                                                        ------        ------           ------       ------
                                                                          (Dollars in thousands)
Type of Loan
------------
<S>                                                    <C>             <C>            <C>             <C>
Real estate loans:
  Construction loans ............................      $  6,014          5.18%        $  5,871          5.75%
  One- to four-family residential
    and home equity .............................        57,599         49.65           61,026         59.72
  Multi-family residential ......................         2,689          2.32            2,559          2.50
  Land ..........................................         4,240          3.65            1,781          1.74
  Commercial ....................................        19,289         16.63           14,803         14.49

Commercial business loans .......................        18,010         15.53            9,783          9.57

Consumer loans:
  Automobile loans ..............................         1,087          0.94            1,528          1.50
  Education loans ...............................            20          0.02               18          0.02
  Savings account loans .........................         1,145          0.99              928          0.91
  Personal loans ................................         5,904          5.09            3,887          3.80
                                                       --------      --------         --------      --------
      Subtotal loans ............................       115,997        100.00%         102,184        100.00%
                                                                     ========                       ========
Less: Loan loss reserve .........................           762                            613
                                                       --------                       --------
     Total loans ................................      $115,235                       $101,571
                                                       ========                       ========
</TABLE>

Nonperforming Assets

Management reviews and identifies all loans and investments that require
designation as nonperforming assets. Nonperforming assets are: loans accounted
for on a non-accrual basis, loans past due by 90 days or more but still
accruing, troubled debt restructurings; and other real estate (assets acquired
in settlement of loans). The following tables set forth certain information with
respect to nonperforming assets at September 30:

                                     September 30,   December 31,
(Dollars in thousands)                    2003           2002
-----------------------------------------------------------------
Non-accrual loans                         $744           $578
Loans 90 days or more past due             188             35
Restructured loans                           0              0
                                          ----           ----
Total Nonperforming Loans                  932            613
Other real estate owned, net                 0              0
                                          ----           ----
Total Nonperforming Assets                $932           $613
                                          ====           ====
Nonperforming loans to total loans         .80%           .60%
Nonperforming assets to total assets       .68            .50


                                    Page 14
<PAGE>

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. The
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 allowance 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 allowance for loan losses, and may
require the Bank to recognize additions to the allowance based on their
judgments about information available to them at the time of their examination.
During the first nine months of 2003, 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, 2003 was $762,000, (0.66% of total loans), an increase of $149,000
(24.3%) from the $613,000 allowance (0.60% of loans) at December 31, 2002.
Annualized charge offs for the first nine months of 2003 were 0.08 % of average
loans, down from the 0.43% of average loans recorded for the year 2002. Total
nonperforming loans at September 30, 2003 were $932,000, up $319,000 (52.0%)
from year-end 2002. However, a significantly larger amount of nonperforming
loans at September 30, 2003 consisted of residential real estate loans, which
generally have the lowest loss rates. At September 30, 2003, nonperforming
consumer and other loans, which generally have higher loss rates than do
residential mortgage loans, were $142,000, up $107,000 (305.7%) from year-end
2002. The increases in the allowance and the percentage of allowance to loans
are due in part to the effects on the allowance calculations of an increase in
balance and the percentage of total loans comprised of loans other than
one-to-four family residential and home equity loans. At September 30, 2003,
one-to-four family residential and home equity loans, which generally are
assigned the lowest credit risk factors, comprise 49.65% of the portfolio,
compared to 59.72% at December 31, 2002. (Please see the above table of Loans
Receivable.)

         The provision for loans losses required for the first nine months of
2003 was $165,000, down $404,000, or 71.0%, from the first nine months of 2002.


                                    Page 15
<PAGE>

A summary of activity in the allowance is shown below.

<TABLE>
<CAPTION>
                                                            Nine Months Ended        12 Months Ended
                                                           September 30, 2003        December 31, 2002
                                                           ------------------        -----------------
                                                                                      (In thousands)
<S>                                                              <C>                      <C>
Balance at beginning of period .........................         $ 613                    $ 326
                                                                 -----                    -----
Loans charged-off:
  Residential real estate mortgage loans ...............            --
  Commercial ...........................................            --                       49
  Consumer .............................................            85                      271
                                                                 -----                    -----
Total charge-offs ......................................            85                      320
                                                                 -----                    -----
Recoveries:
  Residential real estate mortgage loans ...............            --                       --
  Commercial ...........................................            --                       --
  Consumer .............................................            69                       38
                                                                 -----                    -----
Total recoveries .......................................            69                       38
                                                                 -----                    -----
Net loans charged-off ..................................            16                      282
                                                                 -----                    -----
Provision for loan losses ..............................           165                      569
                                                                 -----                    -----
Balance at end of period ...............................         $ 762                    $ 613
                                                                 =====                    =====
Net charge-offs to average loans
  outstanding during the period (annualized) ...........          0.08%                    0.43%
Allowance for loan losses to loans .....................          0.66%                    0.60%
Allowance for loan losses to nonperforming loans........         81.76%                   99.82%

</TABLE>

                                    Page 16
<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,        %
                                         2003          Deposits      2002          Deposits
                                     -------------     --------   ------------     --------
                                                       (Dollars in thousands)
<S>                                     <C>             <C>          <C>             <C>
Regular checking ..............         $  7,313          6.58%      $  6,185          6.20%
NOW accounts ..................           10,723          9.66          9,815          9.84
Passbook ......................           11,814         10.64         11,327         11.36
Statement savings .............            6,351          5.72          4,511          4.53
Money market ..................            4,913          4.42          4,435          4.46
Christmas and Vacation club....              304           .27             89          0.02
Certificates of Deposit .......           50,228         45.24         46,223         46.30
IRA Certificates of Deposit....            9,233          8.32          8,907          8.93
Money Market Certificates .....           10,158          9.15          8,339          8.36
                                        --------        ------       --------        ------
                                        $111,037        100.00%      $ 99,831        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 Board of Governors of the
Federal Reserve System ("Federal Reserve"), 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, 2003, the Bank exceeded all
applicable capital requirements, having a total risk based capital ratio of
13.80%, a tier 1 risk-based capital ratio of 13.08%, and a tangible capital
ratio of 10.24%. As of September 30, 2003, 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 Bank's regulators.

Item 3. Controls and Procedures

         Cecil Bancorp's management, under the supervision and with the
participation of its President and Chief Executive Officer, evaluated as of the
last day of the period covered by this report, the effectiveness of the design
and operation of the Company's disclosure controls and procedures, as defined in
Rule 13a-15 under the Securities Exchange Act of 1934. Based on that evaluation,
the Chief Executive Officer concluded that the Company's disclosure controls and
procedures were adequate. There were no significant changes in the Company's
internal controls over financial reporting (as defined in Rule 13a-15 under the
Securities Act of 1934) during the quarter ended September 30, 2003, that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.


                                    Page 17
<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
             Exhibits

               Exhibit 31       Rule 131-14(a)/15d-14(a) Certification
               Exhibit 32       18 U.S.C. Section 1350 Certification

             Reports on Form 8-K
                     The Company did not file any report on Form 8-K for the
                     period ending September 30, 2003.

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 5, 2003          By: /s/  Mary Beyer Halsey
                                         ---------------------------------
                                         Mary Beyer Halsey
                                         President and Chief Executive Officer



                                    Page 18