SELECTED CONSOLIDATED FINANCIAL INFORMATION

(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
                                                                AT DECEMBER 31,                   CHANGE
                                                          --------------------------       --------------------
                                                             2000             1999         AMOUNT      PERCENT
                                                          ---------        ---------       ------      -------
<S>                                                       <C>              <C>             <C>           <C>
YEAR-END BALANCES
  Total Assets ........................................   $  121,961       $ 114,924       $  7,037      6.12%
  Total Deposits  .....................................       95,913         101,218         -5,305     -5.24%
  Total Loans (Net)  ..................................      102,582          92,099         10,483     11.38%
  Investment Securities ...............................        7,948           9,733         -1,785    -18.34%
  Stockholders' Equity  ...............................       11,416          10,706            710      6.63%

INCOME STATEMENT
 Operating Income  ....................................        9,936           8,192          1,744     21.29%
 Operating Expense  ...................................        9,217           7,522          1,695     22.53%
 Net Income  ..........................................          719             670             49      7.31%

PER SHARE DATA
 Shares Outstanding....................................      621,488         615,742          5,746       .93%
 Net Income Per Common Share - Basic...................   $     1.20       $    1.14       $   0.06      5.26%
 Cash Dividends Declared...............................   $      .40       $     .40       $   0.00       .00%
 Stockholders' Equity..................................   $    18.37       $   17.39       $    .98      5.64%

RATIOS
 Return on Average Assets..............................          .59%            .63%
 Return on Average Equity..............................         6.48%           6.40%
 Loans/Total Assets....................................        84.11%          80.14%
 Stockholders' Equity/Total Assets.....................         9.36%           9.32%
 Allowance for Loan Losses/Loans.......................          .41%            .47%
 Net Interest Margin...................................         3.89%           3.66%

</TABLE>

                   [FOUR HORIZONTAL BAR GRAPHS APPEAR BELOW]


TOTAL ASSETS (IN MILLIONS)                   TOTAL NET LOANS (IN MILLIONS)

2000       $122.0                             2000          $102.6
1999       $115.0                             1999          $ 92.2
1998       $101.2                             1998          $ 77.2
1997       $ 63.7                             1997          $ 54.7
1996       $ 60.2                             1996          $ 51.5
1995       $ 54.0                             1995          $ 47.2


RETURN ON AVERAGE EQUITY                     EARNINGS PER SHARE

2000         6.48%                            2000          $ 1.20
1999         6.40%                            1999          $ 1.14
1998         6.00%                            1998          $ 1.03
1997         7.88%                            1997          $ 1.29
1996         4.50%                            1996          $ 0.72
1995         4.53%                            1995          $ 0.72

<PAGE>



[PICTURES OMITTED]                    (Left to right)

                                      BRIAN J. HALE
                                      Sr. Vice President and C.O.O.
                                      Cecil Federal Savings Bank

                                      MARY B. HALSEY
                                      President and C.E.O
                                      Cecil Bancorp, Inc.

                                      TAYLOR F. CAMERON
                                      Vice President
                                      Cecil Bancorp, Inc.


(Left to right)                       [PICTURES OMITTED]

         CHARLES F. SPOSATO
                   Chairman
        Cecil Bancorp, Inc.

                JOSEPH PIRI
Local Real Estate Developer




[PICTURES OMITTED]                    (Left to right)

                                      THOMAS W. LOFLAND
                                      President and C.E.O.
                                      Columbian Bank

                                      DONALD F. ANGERT
                                      Chairman
                                      Columbian Bank



<PAGE>

To Our Stockholders:

     On behalf of the directors,  officers and employees of Cecil Bancorp, Inc.,
and its  wholly-owned  subsidiaries,  Cecil  Federal  Savings Bank and Columbian
Bank, A Federal  Savings  Bank, we are pleased to deliver to you our 2000 annual
report. We welcome this opportunity to report on our financial results and other
achievements for the past year, as well as share our plans for the current year.

     Let us  first  celebrate  the  outstanding  achievements  of two  important
members of our family,  and offer them our best wishes in their retirement.  Mr.
Bernard L. Siegel,  founding  director and past chairman of the board,  and Mrs.
Edith L.  Racine,  Assistant  Vice  President  with 40 years of  service  to the
company.

     On March 13,  2001,  the Company  announced  that it would merge  Columbian
Bank, A Federal  Savings Bank into Cecil Federal Savings Bank. The two Columbian
branches will operate as a separate  division of Cecil Federal Savings Bank, and
Columbian  customers  will thereby gain the  convenience  of banking at all five
branches of the "new" merged Cecil Federal.  Columbian customers will also see a
significant  increase in the banking  services  and  products  available to them
including voice banking and internet  banking.  Cecil  Federal's  customers will
benefit  from the use of  Columbian's  two  branches in Havre de Grace.  For our
Company, the merger is expected to result in increased  efficiencies and reduced
expenses and provide  marketing  advantages  which are not attainable  under the
current  structure.  This  merger  represents  a  continuation  of our effort to
improve the services offered to our customers by integrating our existing branch
network,  and is also expected to benefit our net income in future  periods.  We
are looking  forward to offering the services of Cecil  Federal to our long-time
Columbian Bank customers.

     We always  strive to  consider  opportunities  that  will  enhance  growth,
earnings and long term  shareholder  value. In terms of product  expansion,  our
retail  marketing  efforts will be  principally  devoted to increasing  our core
relationship accounts. We plan to introduce online banking later this year.

     The  management and Board of Directors wish to thank you for your business,
support and confidence in Cecil Bancorp, Inc. We are working hard to continually
improve  our  organization  and  to  offer  the  best  possible  return  to  our
shareholders.  We encourage you to recommend Cecil Federal and Columbian Bank to
your friends, neighbors and associates. We pledge our continuing time and energy
toward future growth, success and profitability. We are there when you need us.





Sincerely,

/s/ Charles F. Sposato

Charles F. Sposato
Chairman of the Board

/s/ Mary Beyer Halsey

Mary Beyer Halsey
President and Chief Executive Officer


<PAGE>


                                [PICTURE OMITTED]





         Cecil  Federal  Savings  Bank opened its doors in October of 1959.  Mr.
  Bernard Siegel and a group of local business leaders felt there was a need for
  a local  community  bank, a financial  organization  that is responsive to the
  needs of the community,  where the directors and employees live, work and make
  decisions locally.

         Cecil Federal Savings Bank has continued to grow and change. Throughout
  the past 42 years it has remained a locally  owned and  independent  financial
  institution.  Even  though Mr.  Siegel  resigned  as  Chairman of the Board of
  Directors in August of 2000, he remains an active and very important component
  of our family.  It is a distinct honor for our Cecil Bancorp family to express
  our gratitude and respect to Mr.  Siegel for his 42 years of  stewardship  and
  dedication. We wish him well in his future endeavors.


<PAGE>
NATURE OF THE BUSINESS

         Cecil Bancorp,  Inc. (the "Company") is a Maryland business corporation
that is a two-bank holding company with headquarters in Elkton,  Maryland. Cecil
Federal  Savings Bank and  Columbian  Bank,  F.S.B.  are the  corporation's  two
wholly-owned  subsidiaries.  Cecil  Federal  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,  converted from
mutual to stock form.  Columbian Bank,  F.S.B.  was originally  chartered by the
State of Maryland in 1893. In January 1989,  Columbian  converted to a federally
insured,  state chartered stock  institution.  On September 26, 1990,  Columbian
became a federally  chartered  stock savings bank.  Together,  Cecil Federal and
Columbian are referred to herein as the "Banks".

         The Company's full service banking  services are conducted  through its
two  subsidiaries,  which  together  operate  five full service  branch  offices
throughout  Cecil and  Harford  Counties.  Cecil  Federal  has two  wholly-owned
subsidiaries,   Cecil   Financial   Services   Corporation   and  Cecil  Service
Corporation.  Cecil Service  Corporation's primary business is acting as leasing
agent for the Company's leased space, 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.  To a lesser
extent,  Cecil Financial Services offers Nationwide  property -casualty and auto
insurance through a partnership with The Winstead Agency. Cecil Bancorp,  Inc.'s
income is derived primarily from the operations of the subsidiary banks.

         On March 13, 2001 the Company  announced that an  application  has been
filed  with the Office of Thrift  Supervision,  the  Bank's  primary  regulatory
agency,  to merge its Columbian Bank subsidiary into Cecil Federal Savings Bank.
The two Columbian  branches will operate as "Columbian Bank, a division of Cecil
Federal  Savings Bank.  The merger  represents a  continuation  of our effort to
improve the services offered to our customers by integrating our existing branch
network.  The merger is expected to result in increased  efficiency  and reduced
expenses and provide certain marketing advantages which are not attainable under
the current structure.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

GENERAL

         Cecil Bancorp,  Inc.  conducts no business other than holding the stock
of Cecil Federal Savings Bank and Columbian Bank, F.S.B. As community banks, the
Banks' profitability depends primarily upon their levels of net interest income,
which is the difference between interest income from interest-earning assets and
interest expense on interest-bearing liabilities. The Banks' operations are also
affected  by  their  provision  for  loan  losses,   non-interest   income,  and
non-interest expenses.

         The  following  discussion  and  analysis is  intended to provide  more
comprehensive information about the major components of the Company's results of
operations and financial  condition,  liquidity and capital resources than could
be obtained from reading the financial statements alone.

RESULTS OF OPERATIONS

NET INCOME. Net income increased $49,075, or 7.3% to $719,313 for the year ended
December 31, 2000 from  $670,238  for the same period in 1999.  The increase was
primarily  driven by continued growth in total revenues,  combining  traditional
balance sheet growth with an expanding base of fee revenue  generating  products
and services.  The annualized  return on average assets and annualized return on
average  equity were 0.59% and 6.48%  respectively,  for the year ended December
31,  2000.  This  compares  to an  annualized  return on average  assets and the
annualized  return on average  equity of 0.63% and 6.40%,  respectively  for the
same period in 1999.

NET INTEREST  INCOME.  Net interest  income,  the  Company's  primary  source of
income,  is the  difference  between total  interest  income and total  interest
expense.  The  amount of net  interest  income is  determined  by the  volume of
interest-earning  assets,  the level of rates  earned on those  assets,  and the
volume and cost of funding  mechanisms.  Net interest income increased $707,013,
or 18.7% to $4,487,745 for the year ended December 31, 2000 from  $3,780,732 for
the year ended December 31, 1999. This increase is

<PAGE>

primarily due to a significant increase in the volume of interest-bearing assets
and liabilities  between the two years.  The difference  between rates earned on
interest-earning  assets and the cost of supporting funds is measured by the net
interest margin.  Average earning assets were  $115,400,961 and $100,457,039 for
2000 and 1999, respectively.  The net interest margin increased to 3.89% for the
year ended  December 31, 2000,  from 3.66% for the year ended December 31, 1999.
The increase in the net interest  margin is primarily  due to changes in the mix
of interest-earning assets as the Company was able to deploy some lower yielding
funds to fund higher yielding loan demand.

Interest income increased 20.4% in 2000 to $9,363,055, from $7,775,225 earned in
1999.  This  increase is primarily due to the  significant  increase in the loan
portfolio.  The weighted  average yield on all interest earning assets increased
from  7.64% for the year  ended  December  31,  1999 to 8.11% for the year ended
December 31, 2000.

Interest expense increased 22.1% in 2000 to $4,875,310,  from $3,994,493 paid in
1999.  This  increase  is  primarily  due to an  increase  in  interest  bearing
liabilities.  The  weighted  average rate paid on interest  bearing  liabilities
increased  from 4.25% for the year ended December 31, 1999 to 4.42% for the year
ended December 31, 2000. The average balance of deposits  outstanding  increased
in volume and had a slight increase in the weighted  average yield.  The average
balance of Federal Home Loan Bank Advances increased significantly, although the
average cost decreased slightly.



<PAGE>

AVERAGE BALANCES, INTEREST AND AVERAGE YIELDS

         The  following  table sets forth  certain  information  relating to the
Company's  average  balance  sheet and reflects the average  yield on assets and
average cost of liabilities for the periods indicated. Such yields and costs are
derived by dividing  income or expense by the average  monthly balance of assets
or liabilities,  respectively,  for the periods presented.  Average balances are
derived from  month-end  balances.  Management  does not believe that the use of
month-end balances instead of daily balances has caused any material  difference
in the information presented.
<TABLE>
<CAPTION>
                                                              YEAR ENDED DECEMBER 31,
                                       ----------------------------------------------------------------------
                                                    2000                                  1999
                                       -------------------------------       --------------------------------
                                                               AVERAGE                                AVERAGE
                                       AVERAGE                 YIELD/        AVERAGE                  YIELD/
                                       BALANCE    INTEREST      COST         BALANCE    INTEREST       COST
                                       -------    --------     -------       -------    --------      -------
                                                                 (DOLLARS IN THOUSANDS)
<S>                                   <C>          <C>          <C>        <C>            <C>          <C>
  Interest-earning assets:
     Loans receivables ............   $ 101,570    $  8,528     8.40%      $  84,003      6,716        7.99%
     Investment securities.........       9,258         515     5.56          10,374        532        5.13
     Federal Home Loan Bank Stock..         827          63     7.62             654         49        7.49
     Other interest-earning assets.       3,746         257     6.86           5,426        375        6.91
                                      ---------    --------                 --------    -------
       Total interest-earning assets    115,401       9,363     8.11         100,457      7,672        7.64
                                                   --------                             -------
  Noninterest-earning assets.......       6,746                                6,080
                                      ---------                             --------
       Total assets................   $ 122,147                            $ 106,537
                                      =========                            =========

  Interest-bearing liabilities:
    Advances from FHLB.............   $  12,244         705     5.76           2,715        166        6.11
    Deposits.......................      97,149       4,162     4.28          90,329      3,820        4.23
    Advances from borrowers for
      taxes and insurance..........         886           8      .90             885          9        1.02
                                      ---------    --------                ---------    -------
       Total interest-bearing
         liabilities...............     110,279       4,875     4.42          93,929      3,995        4.25
                                                   --------                             -------
  Non-interest-bearing liabilities.         762                                2,137
                                      ---------                            ---------
       Total liabilities...........     111,041                               96,066
  Retained earnings................      11,106                               10,471
                                      ---------                            ---------
       Total liabilities and
         retained earnings.........   $ 122,147                            $ 106,537
                                      =========                            =========
  Net interest income..............                $  4,488                             $ 3,677
                                                   ========                             =======
  Interest rate spread.............                             3.69%                                  3.39%
                                                              ======                                 ======
  Net yield on interest-earning
    assets.........................                             3.89%                                  3.66%
                                                              ======                                 ======
  Ratio of average interest-earning
    assets to average interest-
    bearing liabilities............                           104.64%                                106.95%
                                                              ======                                 ======

</TABLE>
<PAGE>

  RATE/VOLUME ANALYSIS

         The table below sets forth  certain  information  regarding  changes in
  interest income and interest  expense of the Banks for the periods  indicated.
  For each category of interest-earning  asset and  interest-bearing  liability,
  information  is  provided  on changes  attributable  to: (i) changes in volume
  (changes in volume  multiplied by old rate);  (ii) changes in rates (change in
  rate  multiplied  by old  volume)  and (iii)  changes  in both rate and volume
  (changes  in  rate  multiplied  by the  changes  in  volume).  Dollars  are in
  thousands.
<TABLE>
<CAPTION>
                                                                  YEAR ENDED DECEMBER 31,
                                                 -----------------------------------------------------------
                                                       2000                  VS.                 1999
                                                 -----------------------------------------------------------
                                                                    INCREASE (DECREASE)
                                                 -----------------------------------------------------------
                                                                                     RATE/
                                                   VOLUME            RATE            VOLUME           TOTAL
                                                 ----------        -------          ---------      ---------
                                                                       (IN THOUSANDS)
<S>                                              <C>               <C>              <C>              <C>
  Interest income:
    Loans receivable........................     $    1,404        $   337          $      71        $ 1,812
    Investment securities...................            -57             45                 -5            -17
    Mortgage-backed securities..............             13              1                  0             14
    Other interest-earning assets...........           -116             -3                  1           -118
                                                 ----------        -------          ---------      ---------
       Total interest-earning assets........          1,244            380                 67          1,691

  Interest expense:
    Advances from FHLB......................            583            -10                -34            539

  Deposits..................................            288             50                  4            342
    Advances from borrowers for
      taxes and insurance...................              0             -1                  0             -1
                                                 ----------        -------          ---------      ---------
       Total interest-bearing liabilities...            871             39                -30            880
                                                 ----------        -------          ---------      ---------
  Change in net interest income.............     $      373        $   341          $      97      $     811
                                                 ==========        =======          =========      =========
</TABLE>

  PROVISION FOR LOAN LOSSES.  Provisions for loan losses increased $180,000,  or
  144.0% to $305,000 for the year ended  December 31, 2000 from $125,000 for the
  year ended December 31, 1999.  The provision was increased in connection  with
  the large volume increase in the loan portfolio.  Loan loss reserves are based
  upon management's consideration of current and anticipated economic conditions
  which may affect the ability of  borrowers  to repay  loans.  Management  also
  reviews  individual  loans  for  which  the  ability  to  collect  may  not be
  reasonably  assured and considers,  among other matters,  the risk inherent in
  the Banks'  loan  portfolios,  and the  estimated  net  realized  value of the
  underlying  collateral.  The  evaluation  process  is ongoing  and  results in
  variations in the Banks' provisions for loan losses in various periods.

  NON-INTEREST  INCOME.  Non-interest  income  increased  $156,047,  or 37.4% to
  $573,489 for the year ended December 31, 2000 from $417,442 for the year ended
  December 31, 1999. Gains on sale of loans decreased  $23,971,  or 100.0% to $0
  for the year ended  December 31, 2000 from $23,971 for the year ended December
  31,  1999.  The  decrease  was  attributable  to the bank holding all loans in
  portfolio  and not selling loans in the secondary  mortgage  market.  Checking
  account fees  increased  $$79,890,  or 39.6% from  $201,898 for the year ended
  December 31, 1999 to $281,788 for the year ended December 31, 2000. Commission
  income on  alternative  investment  products  increased  $38,446,  or 50.1% to
  $115,233 for the year ended  December 31, 2000 from $76,787 for the year ended
  December 31, 1999.  Other fees  increased  $34,624 or 60.0% to $92,319 for the
  year ended  December  31, 2000 from  $57,695 for the year ended  December  31,
  1999.

  NON-INTEREST  EXPENSE.  Non-interest  expense increased $641,470,  or 21.9% to
  $3,569,568 for the year ended  December 31, 2000 from  $2,928,098 for the year
  ended December 31, 1999. The Company  experienced an increase in  compensation
  and benefits of $234,580,  or 15.6% to $1,739,472  for the year ended December
  31, 2000 from  $1,504,892  for the year ended  December 31, 1999. The increase
  can be  attributable  to increased  personnel to staff new branches and annual
  merit increases. Occupancy expense increased $58,661, or 40.8% to $202,505 for
  the year

<PAGE>

ended December 31, 2000 from $143,844 for the year ended December 31, 1999. This
was primarily  attributable  to the new branches.  Equipment and data processing
expense increased $111,555, or 33.1% to $448,349 for the year ended December 31,
2000 from  $336,794 for the year ended  December  31, 1999.  The increase can be
attributed  to expenses  related to system  updates and the  equipment  expenses
related to the building of our new Route 40 Havre de Grace branch. The Company's
SAIF premium decreased $14,705,  or 17.2% to $70,633 for the year ended December
31,  2000 as  compared  to  $85,338  for  the  year  ended  December  31,  1999.
Non-interest  expense  was  also  increased  by  the  amortization  of  goodwill
associated with the purchase of the two Susquehanna  Bancshares  branches in the
amount of $281,567 for the year ended December 31, 2000 in comparison to $70,391
for the year ended  December  31,  1999.  The increase is due to one full year's
amortization  of goodwill for the year ended  December 31, 2000 compared to only
three  month's  amortization  of goodwill for the year ended  December 31, 1999.
Other  expenses  increased  $134,763,  or 19.5% to  $827,042  for the year ended
December  31, 2000 from  $692,279  for the year ended  December  31,  1999.  The
increase  is  attributable  to a increase  in legal  fees,  stationery  & office
supplies, postage, ATM expense and organizational dues and subscriptions

INCOME  TAXES.  Income tax  expense  for the year ended  December  31,  2000 and
December 31, 1999 was  $467,353 and  $474,838,  respectively,  which  equates to
effective rates of 39.4% and 41.5%, respectively.

FINANCIAL CONDITION

     The  Company's  financial  condition is measured in terms of its assets and
liability  composition,  asset quality,  capital resources,  and liquidity.  The
growth and composition of assets and liabilities  during 2000 and 1999 reflected
generally stable economic conditions and the Company's overall business strategy
to deploy funds acquired from the purchase of two Susquehanna Bank branches.

     Total assets were  $121,960,700  and  $114,923,855 at December 31, 2000 and
1999,  respectively.  The  increase in total assets of  $7,036,845,  or 6.1% was
primarily  attributable  to  an  increase  in  loans.  While  loans  outstanding
increased at a fast pace, savings deposits decreased  $5,304,157,  or 5.2%. As a
result,  alternative  funding  methods were put into place,  borrowing  from the
Federal Home Loan Bank of Atlanta. Stockholder's equity increased by $709,826 or
6.6%. This was solely attributable to an increase in retained earnings.


ASSETS

CASH AND  INTEREST  BEARING  CASH.  Cash and  interest  earning  cash  decreased
$2,101,474  or 35.1% to  $3,880,606  at  December  31, 2000 from  $5,982,081  at
December 31, 1999. This was the direct result of funding lending  activity and a
decrease in savings deposits.

LOAN PORTFOLIO. Total net loans were $102,581,572 and $92,098,839 as of December
31, 2000 and 1999.  Strong housing starts and development  loans led the way for
our record origination year. The Company's business development  activities were
key factors in the growth of the loan portfolio during those periods.  Virtually
all the Company's  business  activity is with customers located in the Cecil and
Harford County areas.  Management  allocated  $305,000 for the provision of loan
losses for the year ended December 31, 2000 as compared to $125,000 for the year
ended  December 31, 1999.  The  increase  was  necessary  due to the increase in
balances outstanding in the net loan portfolio.

INVESTMENT  SECURITIES.  Investment  securities  represent  the  second  largest
component of earning assets.  On December 31, 2000 and 1999  investments held to
maturity totaled $5,335,289 and $6,550,880,  respectively. The decrease reflects
the Banks' cash requirements needed to fund new loans during the year.

PROPERTY AND EQUIPMENT.  Property and Equipment increased $493,140,  or 24.5% to
$2,501,931  at December  31, 2000 from  $2,008,791  at December  31,  1999.  The
increase  is a result of the  opening  of  Columbian  Bank's new Route 40 branch
location in Havre de Grace, Maryland.

<PAGE>

LIABILITIES

     During 2000 and 1999, the Company relied on deposits,  FHLB  borrowings and
excess liquidity to fund its earning assets.

DEPOSITS. Total deposits decreased $5,304,157 or 5.2% to $95,913,387 at December
31 2000 from  $101,217,544  at December  31,  1999.  The outflow of deposits was
primarily  a result of  conservative  pricing  policies  during a rate  climbing
cycle, in order to minimize an increase in cost of funds.

DEBT. At December 31, 2000 and 1999, the Company had  outstanding  advances with
the  Federal  Home  Loan  Bank  of  Atlanta  for   $13,250,000  and  $1,500,000,
respectively. The increase was a result of increased loan activity and decreased
savings deposits.

CAPITAL RESOURCES

     Total  stockholders'   equity  for  2000  and  1999,  was  $11,416,286  and
$10,706,460.  At December 31, 2000,  both banks had capital ratios that exceeded
the federal regulatory minimum requirements for "well capitalized" banks.

ASSET AND LIABILITY MANAGEMENT

     Asset/liability  management  functions  to  maximize  profitability  within
established guidelines for interest rate risk, liquidity,  and capital adequacy.
Measurement  and  monitoring  of  liquidity,  interest  rate risk,  and  capital
adequacy  are  performed  centrally  through  the   Asset/Liability   Management
Committee, and reported under guidelines established by management, the Board of
Directors and regulators.  Oversight of this process is provided by the Board of
Directors.

     The  Company's   principal  sources  of  funds  are  deposits,   short-term
borrowings  and capital.  Core  deposits  less  certificates  of deposits in the
amount of  $100,000  or more are one of the  Company's  most  stable  sources of
liquidity.  In  addition,  the Banks have a line of credit with the Federal Home
Loan Bank of Atlanta and have the ability to take  advantage of various  funding
programs available from that resource.

ECONOMIC AND MARKET CONDITIONS.  The Banks' results of operations are influenced
by the changes in the economic conditions  prevailing in the market area and the
general economy.  The Banks  concentrate on the traditional  thrift  activities,
continuing to emphasize one-to-four family residential lending within its market
area.  The Banks'  philosophy  for funding loans is to rely on deposits from its
local market area rather than borrowing from outside sources, although the Banks
do borrow funds as required to fund lending needs.

During 2000,  stable economic  conditions  prevailed in the Banks' market areas.
Federal Reserve fiscal policy was volatile during the year, allowing an increase
in short term interest  rates.  Demand for  fixed-rate  mortgages were constant,
although  refinances  were down. As the Banks expanded  their outreach  program,
demand for small business and home equity loans increased.

IMPACT OF INFLATION

The  consolidated  financial  statements and related data presented  herein have
been prepared in accordance with generally accepted accounting  principles which
require the measurement of financial  position and operating results in terms of
historical dollars without  considering changes in the relative purchasing power
of money over time due to  inflation.  The primary  impact of  inflation  on the
operations of the Banks are reflected in increased  operating costs. Unlike most
industrial companies, virtually all of the assets and liabilities of a financial
institution are monetary in nature. As a result, interest rates, generally, have
a more  significant  impact on a financial  institution's  performance than does
inflation.  Interest rates do not  necessarily  move in the same direction or to
the same extent as the prices of goods and  services.  In the  current  interest
rate environment,  liquidity and the maturity structure of the Banks' assets and
liabilities are critical to the maintenance of acceptable performance levels.


<PAGE>

IMPACT OF ACCOUNTING PRONOUNCEMENTS

Accounting for Derivative Instruments and Hedging Activities
------------------------------------------------------------

Statement of Financial  Accounting Standard ("SFAS"),  Accounting for Derivative
Instruments and Hedging  Activities,  as amended by SFAS No. 137, Accounting for
Derivative  Instruments and Hedging  Activities - Deferral of the Effective Date
of FAS Statement No. 133,  requires  derivative  instruments  be carried at fair
value  on the  balance  sheet.  The  statement  continues  to  allow  derivative
instruments to be used to hedge various risks and sets forth  specific  criteria
to be used to determine  when hedge  accounting  can be used. The statement also
provides  for  offsetting  changes  in fair  value  or cash  flows  of both  the
derivative and the hedged asset or liability to be recognized in earnings in the
same period;  however, any changes in fair value or cash flow that represent the
ineffective  portion of a hedge are  required to be  recognized  in earnings and
cannot be deferred.  For  derivative  instruments  not  accounted for as hedges,
changes in fair value are required to be recognized in earnings.

The Company plans to adopt the provisions of this statement, as amended, for its
quarterly  and annual  reporting  beginning  January 1,  2001,  the  statement's
effective  date.  These  statements  should  not have a  material  impact on the
Company's results of operations.


Accounting for Transfers and Servicing of Financial  Assets and  Extinguishments
--------------------------------------------------------------------------------
of Liabilities
--------------

SFAS No. 140,  Accounting  for Transfers  and Servicing of Financial  Assets and
Extinguishments  of Liabilities,  was issued in September 2000 and replaces SFAS
No. 125. The guidance in SFAS No. 140,  while not changing  most of the guidance
originally  issued in SFAS No. 125,  revises the  standards for  accounting  for
securitizations  and other  transfers of  financial  assets and  collateral  and
requires certain additional disclosures related to transferred assets.

Certain provisions of the statement related to the recognition, reclassification
and  disclosure  of  collateral,  as well as the  disclosure  of  securitization
transactions,  became  effective  for the Company for 2000  year-end  reporting.
Other  provisions  related to the transfer and servicing of financial assets and
extinguishments  of liabilities are effective for  transactions  occurring after
March 31, 2001.

Based on current  circumstances and after  consideration of planned revisions to
existing  securitization  agreements to conform them to the requirements of SFAS
No. 140,  management  believes the  application of the new rules will not have a
material impact on the Company's  results of operations,  financial  position or
liquidity.


<PAGE>

CECIL BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2000 AND 1999

<TABLE>
<CAPTION>
  ASSETS                                                                   2000                 1999
                                                                           ----                 ----

<S>                                                                   <C>                   <C>
   Cash and due from banks                                            $   1,530,547         $  2,328,170
   Interest bearing deposits with banks                                   2,350,059            3,653,911
   Federal funds sold                                                            --               50,000
   Investment securities:
     Securities held-to-maturity (fair value of $5,295,467
     in 2000 and $6,252,081 in 1999)                                      5,335,289            6,550,880
   Securities available-for-sale at fair value                            2,612,882            3,181,992

   Loans receivable, net                                                102,581,572           92,098,839
   Property and equipment - net                                           2,501,931            2,008,791
   Real estate owned                                                        254,994              371,178
   Stock in Federal Home Loan Bank of Atlanta - at cost                     905,000              657,800
   Accrued interest receivable                                              824,683              618,702
   Goodwill, net                                                          2,463,711            2,745,278
   Other assets                                                             600,032              658,314
                                                                       ------------         ------------
       TOTAL ASSETS                                                    $121,960,700         $114,923,855
                                                                       ============         ============

  LIABILITIES AND STOCKHOLDERS' EQUITY
  LIABILITIES:
   Savings deposits                                                    $ 95,913,387         $101,217,544
   Advance payments by borrowers for property
     taxes and insurance                                                    681,853              777,509
   Employee stock ownership plan debt                                       154,032              192,540
   Other liabilities                                                        545,142              529,802
   Advances from Federal Home Loan Bank of Atlanta                       13,250,000            1,500,000
                                                                       ------------         ------------

       Total liabilities                                                110,544,414          104,217,395
                                                                       ------------         ------------

  STOCKHOLDERS' EQUITY:
   Common  stock,  $.01 par  value;  authorized  4,000,000
     shares,  issued  and outstanding 621,488 shares in
     2000 and 615,742 shares in 1999                                          6,215                6,158
   Additional paid in capital                                             5,046,082            4,898,025
   Employee stock ownership plan debt                                      (154,032)            (192,540)
   Deferred compensation - Management Recognition Plan                      (22,565)             (45,383)
   Retained earnings                                                      6,543,202            6,063,589
   Accumulated other comprehensive loss, net                                 (2,616)             (23,389)
                                                                       ------------         -------------

       Total stockholders' equity                                        11,416,286           10,706,460
                                                                       ------------         ------------

       TOTAL LIABILITIES AND STOCKHOLDERS'
         EQUITY                                                        $121,960,700         $114,923,855
                                                                       ============         ============
</TABLE>

Refer to the Cecil Bancorp, Inc. audited consolidated financial statements for a
complete set of consolidated financial statements and related footnotes.

<PAGE>
CECIL BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
<TABLE>
<CAPTION>
                                                                           2000                 1999
                                                                           ----                 ----
<S>                                                                      <C>                  <C>
  INTEREST INCOME:
   Interest and fees on loans                                            $8,528,703           $6,769,717
   Interest on investment securities                                        515,080              532,116
   Dividends on Federal Home Loan Bank stock                                 62,526               49,604
   Other interest-earning assets                                            256,746              423,788
                                                                         ----------           ----------

         Total interest income                                            9,363,055            7,775,225
                                                                         ----------           ----------

  INTEREST EXPENSE:
   Interest expense on deposits                                           4,170,035            3,828,321
   Interest expense on FHLB advances                                        705,275              166,172
                                                                         ----------           ----------

         Total interest expense                                           4,875,310            3,994,493
                                                                         ----------           ----------

  NET INTEREST INCOME                                                     4,487,745            3,780,732

  PROVISION FOR LOAN LOSSES                                                 305,000              125,000
                                                                         ----------           ----------

  NET INTEREST INCOME AFTER PROVISION
   FOR LOAN LOSSES                                                        4,182,745            3,655,732
                                                                         ----------           ----------

  NONINTEREST INCOME:
   Checking account fees                                                    281,788              201,898
   ATM fees                                                                  84,149               57,091
   Gain on sale of loans                                                         --               23,971
   Commission income                                                        115,233               76,787
   Other                                                                     92,319               57,695
                                                                         ----------           ----------

         Total noninterest income                                           573,489              417,442
                                                                         ----------           ----------

  NONINTEREST EXPENSE:
   Salaries and employee benefits                                         1,739,472            1,504,892
   Occupancy expense                                                        202,505              143,844
   Equipment and data processing expense                                    448,349              336,794
   SAIF deposit insurance premium                                            70,633               85,338
   Branch acquisition expense                                                    --               94,560
   Goodwill amortization                                                    281,567               70,391
   Other                                                                    827,042              692,279
                                                                         ----------           ----------

         Total noninterest expense                                        3,569,568            2,928,098
                                                                         ----------           ----------

  INCOME BEFORE INCOME TAXES                                              1,186,666            1,145,076

  INCOME TAX EXPENSE                                                        467,353              474,838
                                                                         ----------           ----------

  NET INCOME                                                             $  719,313           $  670,238
                                                                         ==========           ==========

  Basic net income per common share                                           $1.20                $1.14
                                                                              =====                =====

  Diluted net income per common share                                         $1.18                $1.12
                                                                              =====                =====
</TABLE>

Refer to the Cecil Bancorp, Inc. audited consolidated financial statements for a
complete set of consolidated financial statements and related footnotes.

<PAGE>


CECIL BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED  STATEMENTS OF CHANGES IN STOCKHOLDERS'  EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
<TABLE>
<CAPTION>
                                                                                 Deferred
                                                                     Employee   Compensation-             Accumulated
                                                       Additional      Stock     Management                 Other         Total
                                            Common      Paid-in      Ownership  Recognition   Retained  Comprehensive  Stockholders'
                                            Stock       Capital        Plan        Plan       Earnings   Income (Loss)   Equity
                                            ------     ----------    ---------  -----------   --------  -------------- ------------
<S>                                         <C>       <C>           <C>         <C>          <C>           <C>         <C>
  BALANCES AT JANUARY 1, 1999               $6,065    $4,735,470    $(231,048)  $(80,676)    $5,628,467    $ 15,924    $10,074,202

   Comprehensive income:
     Net income                               -             -            -          -           670,238        -           670,238
     Other comprehensive loss, net of
       related income tax effect              -             -            -          -              -        (39,313)       (39,313)
                                                                                                                       -----------
         Total comprehensive income           -             -            -          -              -           -           630,925
   Cash dividends paid                        -             -            -          -          (235,116)       -          (235,116)
   Repayment of ESOP debt                     -             -          38,508       -              -           -            38,508
   Release of ESOP shares                     -           38,508         -          -              -           -            38,508
   Deferred compensation amortization         -             -            -        35,293           -           -            35,293
   Stock options exercised                      93        99,099         -          -              -           -            99,192
   Release of vested MRP shares               -           24,948         -          -              -           -            24,948
                                            ------    ----------    ---------   --------     ----------    --------    -----------

  BALANCES AT DECEMBER 31, 1999              6,158     4,898,025     (192,540)   (45,383)     6,063,589     (23,389)    10,706,460

   Comprehensive income:
     Net income                               -            -             -          -           719,313        -           719,313
     Other comprehensive income, net of
       related income tax effect              -            -             -          -              -         20,773         20,773
                                                                                                                       -----------
         Total comprehensive income           -            -             -          -              -           -           740,086
   Cash dividends paid                        -            -             -          -          (239,700)       -          (239,700)
   Repayment of ESOP debt                     -            -           38,508       -              -           -            38,508
   Release of ESOP shares                     -           38,508         -          -              -           -            38,508
   Deferred compensation amortization         -            -             -        37,352           -           -            37,352
   Funding of Management Recognition Plan     -            -             -       (14,534)          -           -           (14,534)
   Stock purchased by dividend
     reinvestment plan                          37        71,133         -          -              -           -            71,170
   Stock options exercised                      20        21,980         -          -              -           -            22,000
   Release of vested MRP shares               -           16,436         -          -              -           -            16,436
                                            ------    ----------    ---------   --------     ----------    --------    -----------

  BALANCES AT DECEMBER 31, 2000             $6,215    $5,046,082    $(154,032)  $(22,565)    $6,543,202    $ (2,616)   $11,416,286
                                            ======    ==========    =========   ========     ==========    ========    ===========
</TABLE>

Refer to the Cecil Bancorp, Inc. audited consolidated financial statements for a
complete set of consolidated financial statements and related footnotes.

<PAGE>



CECIL BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED  STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
<TABLE>
<CAPTION>
                                                                           2000                 1999
                                                                           ----                 ----
<S>                                                                     <C>                  <C>
  OPERATING ACTIVITIES:
    Adjustments  to  reconcile  net  income to net cash
    provided  by  operating activities:
      Net income                                                       $    719,313         $    670,238
      Depreciation and amortization                                         472,006              231,042
      Provision for loan losses                                             305,000              125,000
      Gain on sale of loans                                                      --              (23,971)
      Deferred income taxes                                                 (43,404)            (117,711)
      Stock dividends received                                              (85,591)            (151,787)
      Distribution from management recognition plan trust                    53,788               60,241
      Origination of loans held for sale                                         --           (3,220,300)
      Proceeds from sales of loans held for sale                                 --            1,149,335
      Net change in:
        Accrued interest receivable and other assets                       (214,409)            (472,207)
        Other liabilities                                                    15,340             (142,936)
                                                                       ------------         ------------

             Net cash provided (used) by operating activities             1,308,851           (1,657,634)
                                                                       ------------         ------------

  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of investment securities available for sale                         --           (8,086,172)
    Proceeds from maturities, calls and principal payments
      of investment securities held-to-maturity                           1,240,556            8,363,438
    Proceeds from maturities, calls and principal payments
      of investment securities available-for-sale                           675,474            1,287,175
    Proceeds from sale of stock in Federal Home Loan Bank                        --               27,700
    Purchase of stock in Federal Home Loan Bank                            (247,200)             (13,200)
    Net increase in loans                                               (10,887,450)         (12,996,150)
    Proceeds from sales of foreclosed real estate                           214,242               23,425
    Purchase of real estate owned                                                --             (206,861)
    Purchases of property and equipment - net                              (683,579)            (164,568)
                                                                       ------------         ------------

              Net cash used by investing activities                      (9,687,957)         (11,765,213)
                                                                       ------------         ------------

  CASH FLOWS FROM FINANCING ACTIVITIES:
    Net decrease in deposits                                             (5,304,157)          (8,633,350)
    Branch acquisition                                                           --           18,417,620
    Decrease in advance payments by borrowers
      for property taxes and insurance                                      (95,656)             (44,116)
    Proceeds from issuance of common stock                                   93,170               99,192
    Net increase (decrease) in advances from
      Federal Home Loan Bank                                             11,750,000             (250,000)
    Unearned ESOP compensation decrease                                      38,508               38,508
    Funding of management recognition plan                                  (14,534)                  --
    Payments of cash dividends                                             (239,700)            (235,116)
                                                                       ------------         ------------

              Net cash provided by financing activities                   6,227,631            9,392,738
                                                                       ------------         ------------
</TABLE>


Refer to the Cecil Bancorp, Inc. audited consolidated financial statements for a
complete set of consolidated financial statements and related footnotes.

<PAGE>


CECIL BANCORP, INC. AND SUBSIDIARIES

Consolidated  Statements of Cash Flows  (Continued)
For the Years Ended December 31, 2000 and 1999
<TABLE>
<CAPTION>
                                                                           2000                 1999
                                                                           ----                 ----
<S>                                                                     <C>                  <C>
  DECREASE IN CASH AND CASH EQUIVALENTS                                 $(2,151,475)         $(4,030,109)

  CASH AND CASH EQUIVALENTS
   AT BEGINNING OF YEAR                                                   6,032,081           10,062,190
                                                                        -----------          -----------

  CASH AND CASH EQUIVALENTS
   AT END OF YEAR                                                       $ 3,880,606          $ 6,032,081
                                                                        ===========          ===========


  Supplemental disclosure of cash flows information:
   Cash paid for income taxes                                           $   594,396          $   644,929
   Cash paid for interest                                                 4,875,214            3,994,493

  Supplemental disclosure of noncash investing and financing
     activities:
   Conversion of loans receivable to real estate owned                      $99,717              $   -
                                                                            =======              =======

  Cash received in branch acquisition:
   Assumption of savings deposits liabilities                             $   -              $22,176,092
   Loans receivable obtained                                                  -                  (71,690)
   Office properties, equipment and leasehold
     improvements obtained                                                    -                 (871,113)
   Goodwill obtained                                                          -               (2,815,669)
                                                                          ---------          -----------

  Net cash received in branch acquisition                                 $   -              $18,417,620
                                                                          =========          ===========

</TABLE>

Refer to the Cecil Bancorp, Inc. audited consolidated financial statements for a
complete set of consolidated financial statements and related footnotes.

<PAGE>

MARKET AND DIVIDEND INFORMATION

TRADING IN THE COMMON STOCK

The  Company's  common  stock is  listed  over-the-counter  through  the  NASDAQ
Bulletin Board, under the symbol "CECB". There were 624,020 shares of the common
stock  outstanding and  approximately  665 holders of record of the common stock
(not including shares held in "street name") as of March 19, 2001.

The  following  table sets forth  certain  information  for the most  recent two
fiscal  years,  and through  March 19, 2001, as to the range of the high and low
bid prices for the Company's common stock for the calendar quarters indicated.
<TABLE>
<CAPTION>

                                   High Bid (1)      Low Bid (1)       Dividends Paid
                                   --------------------------------------------------
<S>                                    <C>              <C>                <C>
  Fiscal 1999:
  First Quarter                        25.75            25.75              .10
  Second Quarter                       25.25            24.75              .10
  Third Quarter                        24.63            24.63              .10
  Fourth Quarter                       25.25            25.25              .10

  Fiscal 2000:
  First Quarter                        25.25            25.75              .10
  Second Quarter                       22.00            20.00              .10
  Third Quarter                        20.50            17.00              .10
  Fourth Quarter                       19.63            16.63              .10

  Fiscal 2001:
  First Quarter                        20.00            17.00              .10
     (through March 19, 2001)
<FN>
___________
(1) Quotations reflect inter-dealer price, without retail mark-up,  mark-down or
commissions, and may not represent actual transactions.
</FN>
</TABLE>


DIVIDEND RESTRICTIONS


Under  regulations  of the OTS, the Banks are not  permitted to pay dividends on
its capital  stock if its  regulatory  capital  would  thereby be reduced  below
regulatory capital requirements, or the amount then required for the liquidation
account  established  for the benefit of certain  depositors of the Banks at the
time  of  its  conversion  to  stock  form.  In  addition,  savings  institution
subsidiaries  of savings  and loan  holding  companies  such as the  Company are
required to give the OTS 30 days' prior  notice of any proposed  declaration  of
dividends to the holding company.


Federal  regulations  impose additional  limitations on the payment of dividends
and other capital  distributions  (including stock repurchases and cash mergers)
by the Banks.  Under these regulations,  savings  institutions such as the Banks
are not  permitted to pay  dividends  on their common stock if their  regulatory
capital is reduced below the amount  required for the  "liquidation  account" or
the capital requirements imposed by FIRREA and the OTS. Since the banks meet the
fully phased in capital  requirements under FIRREA, they may pay a cash dividend
on their  capital  stock as long as the  proposed  dividend  does not exceed the
Bank's  aggregate net income,  less dividends  paid, for the two preceding years
and the current year-to-date.

<PAGE>




                                [PICTURE OMITTED]





<TABLE>
<CAPTION>
                               BOARD OF DIRECTORS

  CECIL BANCORP, INC.

  <S>                                     <C>                                   <C>
  CHARLES F. SPOSATO                      MARY B. HALSEY                        THOMAS L. FOARD
  Chairman of the Board                   President, C.E.O. and                 Secretary and Director
                                          Director

  DONALD F. ANGERT                        MATTHEW G. BATHON                     ROBERT L. JOHNSON
  Treasurer and Director                  Director                              Director

  HOWARD J. NEFF                          DORIS P. SCOTT                        HOWARD B. TOME
  Director                                Director                              Director


<CAPTION>

  CECIL FEDERAL SAVINGS BANK                                 COLUMBIAN BANK, FSB
  BOARD OF DIRECTORS                                         BOARD OF DIRECTORS
  ---------------------------                                ----------------------

  <S>                         <C>                            <C>                        <C>
  CHARLES F. SPOSATO          DONALD F. ANGERT               DONALD F. ANGERT           ARTHUR L. GILBERT
  Chairman                    Treasurer                      Chairman

  MARY B. HALSEY              THOMAS L. FOARD                THOMAS W. LOFLAND          MARY B. HALSEY
  President & C.E.O.          Secretary                      President & C.E.O.

  HOWARD J. NEFF              DORIS P. SCOTT                 ROBERT L. JOHNSON          WILBUR B. PEARCE
  Vice President                                             Secretary-Treasurer

  MATTHEW G. BATHON           HOWARD B. TOME                 WILLIAM K. BRENDLE         CHARLES F. SPOSATO

                                                             LAURIE O. THONER



  CECIL FEDERAL SAVINGS BANK
  ADVISORY BOARD
  ----------------------------

  Brian M. Lockhart           Jeffery A. Williams
  Willard L. Pinder           Peter J. Wood
  Nancy R. Simpers            Thomas L. Vaughn, Sr.
</TABLE>
<PAGE>

                                    OFFICERS

  CECIL BANCORP, INC.
--------------------------------------------------------------------------------
  Charles F. Sposato                                   Thomas L. Foard
  Chairman of the Board of Directors                   Secretary

  MARY B. HALSEY                                       DONALD F. ANGERT
  President and C.E.O.                                 Treasurer

  TAYLOR F. CAMERON
  Vice President



  CECIL FEDERAL SAVINGS BANK
--------------------------------------------------------------------------------

  CHARLES F. SPOSATO                                   THOMAS L. FOARD
  Chairman of the Board                                Secretary

  MARY B. HALSEY                                       DONALD F. ANGERT
  President and C.E.O.                                 Treasurer

  BRIAN J. HALE                                        JEAN L. MAUCHER
  Senior Vice President and C.O.O.                     Assistant Secretary

  SANDRA D. FELTMAN                                    BARBARA M. HOWARD
  Vice President, Director of Lending                  Assistant Treasurer


  COLUMBIAN BANK, FSB
--------------------------------------------------------------------------------

  DONALD F. ANGERT                                     ROBERT L. JOHNSON
  Chairman of the Board                                Secretary and Treasurer

  THOMAS W. LOFLAND
  President and C.E.O.


<PAGE>


[PICTURE OMITTED]



                                 Sandra D. Feltman
                                 Vice President, Director of Lending
                                 Cecil Federal Savings Bank




                                         [PICTURE OMITTED]


Roger L. Owens
Vice President, Investment Consultant
Cecil Financial Services



[PICTURE OMITTED]

                                 Barbara M. Howard
                                 Assistant Treasurer, Main Office Branch Manager
                                 Cecil Federal Savings Bank

<PAGE>
<TABLE>
<CAPTION>
                                OFFICE LOCATIONS

  CECIL FEDERAL SAVINGS BANK                                 COLUMBIAN BANK, FSB
  --------------------------                                 -------------------

  <S>                         <C>                            <C>
  Main Office                 Loan Center                    Main Office
  127 North Street            135 North Street               303-307 St. John Street
  Elkton, MD 21921            Elkton, MD 21921               Havre de Grace, MD 21078
  410-398-1650                410-392-LEND                   410-939-2313

  North East                  Big Elk Mall                   Pulaski Highway
  108 North East Plaza        108 Big Elk Mall               1609 Pulaski Highway
  North East, MD 21901        Elkton, MD 21921               Havre de Grace, MD 21078
  410-287-2443                410-398-2966                   410-942-1100
</TABLE>

                               GENERAL INFORMATION

  INDEPENDENT PUBLIC ACCOUNTANTS
  ------------------------------
  Stegman & Company
  Suite 200
  405 East Joppa Road
  Baltimore, MD 21286

  SPECIAL COUNSEL
  ---------------
  Stradley Ronon Housley
  Kantarian & Bronstein, LLC
  Suite 700
  1220 19th Street, N.W.
  Washington, DC 20036

  DIVIDEND CALENDAR
  -----------------
  Dividends on the common stock of Cecil Bancorp, Inc. are ordinarily paid on
  the 30th of March, June, August, December.

  ANNUAL REPORT ON FORM 10-KSB
  ----------------------------
  A copy of the Annual Report on Form 10-KSB for the fiscal year ended  December
  31,  2000,  as filed  with the  Securities  and  Exchange  Commission  will be
  furnished  without charge to  stockholders  as of the record date for the 2001
  Annual Meeting upon written request to Taylor F. Cameron, 127 North Street, P.
  O. Box 568, Elkton, MD 21922-0568.

  ANNUAL MEETING
  --------------
  The 2001 Annual Meeting of Stockholders  will be held at Bentleys  Restaurant,
  902 Pulaski Highway, Elkton, MD on Wednesday, May 2, 2001 at 9:00 a.m.

  GENERAL COUNSEL
  ---------------
  William B. Calvert, Esq.
  101 Courthouse Plaza
  Elkton, MD 21921

  TRANSFER AGENT & REGISTRAR
  --------------------------
  Registrar and Transfer Company
  10 Commerce Drive
  Cranford, NJ 07016

  STOCK LISTING INFORMATION
  -------------------------
  The common shares of Cecil Bancorp, Inc. are traded in the over-the-counter
  market under the symbol "CECB".

  DIVIDEND REINVESTMENT PLAN
  --------------------------
  Cecil  Bancorp  offers  its  stockholders  the  convenience  and  benefit of a
  Dividend Reinvestment Plan ("DRP") with optional direct cash purchases.

  Shareholders  of  record  of at  least 50  shares  may  have  their  quarterly
  dividends  automatically invested in additional shares of the Company's common
  stock. Participants of the DRP may also make voluntary cash purchases,  within
  certain  limits,  of the  Company's  common  stock  without  paying  brokerage
  commissions.

  For more information, send a request to:

         Taylor F. Cameron
         c/o Cecil Bancorp, Inc.
         P.O. Box 568
         Elkton, MD 21922-0568

  Or call Mr. Cameron at 410-398-1650.