CERTIFICATE OF INCORPORATION
 
                                       OF
 
                          FIDELITY BANKSHARES II, INC.
 
         FIRST:  The name of the  Corporation  is Fidelity  Bankshares  II, Inc.
(hereinafter referred to as the "Corporation").
 
         SECOND:  The address of the registered office of the Corporation in the
State of Delaware is Corporation  Trust Center,  1209 Orange Street, in the City
of Wilmington,  County of New Castle.  The name of the registered  agent at that
address is The Corporation Trust Company.
 
         THIRD: The purpose of the Corporation is to engage in any lawful act or
activity for which a corporation may be organized under the General  Corporation
Law of Delaware.
 
         FOURTH:
 
         A. The  total  number  of  shares  of all  classes  of stock  which the
Corporation  shall have  authority to issue is thirty-two  million  (32,000,000)
consisting of:
 
               1. two million  (2,000,000)  shares of Preferred Stock, par value
          ten cents ($.10) per share (the "Preferred Stock"); and
 
               2. thirty million  (30,000,000) shares of Common Stock, par value
          ten cents ($.10) per share (the "Common Stock").
 
         B. The Board of Directors  is  authorized,  subject to any  limitations
prescribed by law, to provide for the issuance of the shares of Preferred  Stock
in series,  and by filing a certificate  pursuant to the  applicable  law of the
State  of  Delaware  (such  certificate  being  hereinafter  referred  to  as  a
"Preferred  Stock  Designation"),  to establish  from time to time the number of
shares to be included in each such series,  and to fix the designation,  powers,
preferences,   and   rights  of  the   shares  of  each  such   series  and  any
qualifications,  limitations or restrictions  thereof.  The number of authorized
shares of  Preferred  Stock may be  increased  or  decreased  (but not below the
number  of shares  thereof  then  outstanding)  by the  affirmative  vote of the
holders of a majority of the Common Stock,  without a vote of the holders of the
Preferred Stock, or of any series thereof,  unless a vote of any such holders is
required pursuant to the terms of any Preferred Stock Designation.
 
         C. 1.  Notwithstanding  any  other  provision  of this  Certificate  of
Incorporation,  in no event  shall any record  owner of any  outstanding  Common
Stock which is beneficially owned,  directly or indirectly,  by a person who, as
of any record date for the determination of stockholders entitled to vote on any
matter,  beneficially  owns in excess of 10% of the  then-outstanding  shares of
Common Stock (the "Limit"),  be entitled, or permitted to any vote in respect of
the shares held in excess of the Limit. The number of votes which may be cast by
any record owner by virtue of the  provisions  hereof in respect of Common Stock
beneficially  owned by such person owning shares in excess of the Limit shall be
a number equal to the total  number of votes which a single  record owner of all
Common  Stock owned by such person  would be entitled to cast,  multiplied  by a
fraction, the numerator of which is the number of shares of such class or series
which are both  beneficially  owned by such  person  and owned of record by such
record  owner  and the  denominator  of which is the  total  number of shares of
Common Stock  beneficially  owned by such person  owning shares in excess of the
Limit.
 
               2. The  following  definitions  shall apply to this  Section C of
          this Article FOURTH:
 
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               (a)  "Affiliate"  shall have the  meaning  ascribed to it in Rule
                    12b-2  of  the  General  Rules  and  Regulations  under  the
                    Securities  Act of 1934,  as in effect on the date of filing
                    of this Certificate of Incorporation.
 
               (b)  "Beneficial  ownership" shall be determined pursuant to Rule
                    13d-3  of  the  General  Rules  and  Regulations  under  the
                    Securities  Exchange Act of 1934 (or any  successor  rule or
                    statutory  provision),  or,  if said  Rule  13d-3  shall  be
                    rescinded and there shall be no successor  rule or statutory
                    provision thereto,  pursuant to said Rule 13d-3 as in effect
                    on the date of filing of this Certificate of  Incorporation;
                    provided,  however,  that a person shall, in any event, also
                    be deemed the "beneficial owner" of any Common Stock:
 
                    (1)  which such person or any of its affiliates beneficially
                         owns, directly or indirectly; or
 
                    (2)  which such person or any of its  affiliates has (i) the
                         right to acquire  (whether  such  right is  exercisable
                         immediately   or  only  after  the  passage  of  time),
                         pursuant to any agreement, arrangement or understanding
                         (but shall not be deemed to be the beneficial  owner of
                         any  voting  shares  solely by reason of an  agreement,
                         contract, or other arrangement with this Corporation to
                         effect any transaction which is described in any one or
                         more of clauses of Section A of Article EIGHTH) or upon
                         the exercise of  conversion  rights,  exchange  rights,
                         warrants,  or  options  or  otherwise,  or (ii) sole or
                         shared voting or investment  power with respect thereto
                         pursuant to any agreement, arrangement,  understanding,
                         relationship  or otherwise  (but shall not be deemed to
                         be the beneficial  owner of any voting shares solely by
                         reason of a revocable  proxy  granted for a  particular
                         meeting   of   stockholders,   pursuant   to  a  public
                         solicitation of proxies for such meeting,  with respect
                         to shares of which  neither  such  person  nor any such
                         affiliate is otherwise deemed the beneficial owner); or
 
                    (3)  which are beneficially  owned,  directly or indirectly,
                         by any other  person  with which  such first  mentioned
                         person or any of its affiliates  acts as a partnership,
                         limited partnership,  syndicate or other group pursuant
                         to any agreement,  arrangement or understanding for the
                         purpose of acquiring,  holding,  voting or disposing of
                         any shares of capital stock of this Corporation;
 
                    and  provided  further,  however,  that (1) no  Director  or
                    Officer of this  Corporation  (or any  affiliate of any such
                    Director or Officer)  shall,  solely by reason of any or all
                    of such Directors or Officers acting in their  capacities as
                    such, be deemed,  for any purposes  hereof,  to beneficially
                    own any Common  Stock  beneficially  owned by  another  such
                    Director  or Officer  (or any  affiliate  thereof),  and (2)
                    neither any employee stock ownership plan or similar plan of
                    this Corporation or any subsidiary of this Corporation,  nor
                    any trustee  with respect  thereto or any  affiliate of such
                    trustee (solely by reason of such capacity of such trustee),
                    shall be deemed,  for any purposes  hereof,  to beneficially
                    own any Common Stock held under any such plan.  For purposes
                    of computing the percentage  beneficial  ownership of Common
                    Stock of a person the outstanding Common Stock shall include
                    shares deemed owned by such person  through  application  of
                    this subsection but shall not include any other Common Stock
                    which may be  issuable by this  Corporation  pursuant to any
                    agreement,  or upon exercise of conversion rights,  warrants
                    or  options,  or  otherwise.  For all  other  purposes,  the
                    outstanding  Common  Stock shall  include  only Common Stock
                    then  outstanding  and shall not  include  any Common  Stock
                    which may be  issuable by this  Corporation  pursuant to any
                    agreement,  or  upon  the  exercise  of  conversion  rights,
                    warrants or options, or otherwise.
 
               (c)  A "person" shall mean any individual,  firm, corporation, or
                    other entity.
 
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                  3. The Board of Directors shall have the power to construe and
apply the provisions of this section and to make all determinations necessary or
desirable to implement  such  provisions,  including  but not limited to matters
with respect to (i) the number of shares of Common Stock  beneficially  owned by
any person,  (ii) whether a person is an affiliate of another,  (iii)  whether a
person has an agreement,  arrangement,  or understanding  with another as to the
matters  referred  to in  the  definition  of  beneficial  ownership,  (iv)  the
application of any other definition or operative provision of the section to the
given facts, or (v) any other matter relating to the  applicability or effect of
this section.
 
                  4. The Board of Directors  shall have the right to demand that
any person who is reasonably believed to beneficially own Common Stock in excess
of the Limit (or holds of record Common Stock  beneficially  owned by any person
in excess of the Limit) supply the Corporation  with complete  information as to
(i) the record owner(s) of all shares  beneficially  owned by such person who is
reasonably believed to own shares in excess of the Limit, (ii) any other factual
matter relating to the applicability or effect of this section as may reasonably
be requested of such person.
 
                  5. Except as otherwise  provided by law or expressly  provided
in this section,  the presence,  in person or by proxy, of the holders of record
of shares of capital stock of the  Corporation  entitling the holders thereof to
cast a  majority  of  the  votes  (after  giving  effect,  if  required,  to the
provisions  of this  section)  entitled  to be cast by the  holders of shares of
capital stock of the Corporation  entitled to vote shall  constitute a quorum at
all meetings of the  stockholders,  and every  reference in this  Certificate of
Incorporation to a majority or other proportion of capital stock (or the holders
thereof) for purposes of determining  any quorum  requirement or any requirement
for stockholder consent or approval shall be deemed to refer to such majority or
other  proportion of the votes (or the holders thereof) then entitled to be cast
in respect of such capital stock.
 
                  6. Any constructions,  applications, or determinations made by
the Board of  Directors  pursuant to this section in good faith and on the basis
of such  information  and assistance as was then  reasonably  available for such
purpose  shall  be  conclusive  and  binding  upon  the   Corporation   and  its
stockholders.
 
                  7. In the event any  provision  (or  portion  thereof) of this
section  shall be found  to be  invalid,  prohibited  or  unenforceable  for any
reason,  the remaining  provisions  (or portions  thereof) of this section shall
remain in full force and  effect,  and shall be  construed  as if such  invalid,
prohibited or  unenforceable  provision had been stricken  herefrom or otherwise
rendered  inapplicable,  it  being  the  intent  of  this  Corporation  and  its
stockholders that such remaining  provision (or portion thereof) of this section
remain, to the fullest extent permitted by law, applicable and enforceable as to
all  stockholders,  including  stockholders  owning an amount of stock  over the
Limit, notwithstanding any such finding.
 
         FIFTH: The following  provisions are inserted for the management of the
business  and the  conduct of the  affairs of the  Corporation,  and for further
definition,  limitation and regulation of the powers of the  Corporation  and of
its Directors and stockholders:
 
               A. The business and affairs of the  Corporation  shall be managed
          by or under the  direction of the Board of  Directors.  In addition to
          the powers and authority  expressly  conferred upon them by statute or
          by this Certificate of Incorporation or the Bylaws of the Corporation,
          the Directors are hereby  empowered to exercise all such powers and do
          all  such  acts  and  things  as  may  be  exercised  or  done  by the
          Corporation.
 
               B.  The  Directors  of the  Corporation  need not be  elected  by
          written ballot unless the Bylaws so provide.
 
               C.  Any  action   required  or  permitted  to  be  taken  by  the
          stockholders  of the  Corporation  must be  effected  at a duly called
          annual or special  meeting of  stockholders of the Corporation and may
          not be effected by any consent in writing by such stockholders.
 
               D. Special  meetings of  stockholders  of the  Corporation may be
          called only by the Board of Directors pursuant to a resolution adopted
          by a majority of the total number of authorized directorships (whether
          or  not  there   exist  any   vacancies   in   previously   authorized
          directorships  at the time any such  resolution  is  presented  to the
          Board for adoption)  (the "Whole  Board") or as otherwise  provided in
          the Bylaws.
 
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         SIXTH:
 
         A. The number of Directors shall be fixed from time to time exclusively
by the Board of Directors  pursuant to a resolution adopted by a majority of the
Whole Board. The Directors shall be divided into three classes,  as nearly equal
in number as reasonably possible,  with the term of office of the first class to
expire at the first annual  meeting of  stockholders,  the term of office of the
second class to expire at the annual meeting of stockholders one year thereafter
and the term of office of the third  class to expire at the  annual  meeting  of
stockholders  two years  thereafter.  At each  annual  meeting  of  stockholders
following such initial classification and election, Directors elected to succeed
those  Directors  whose  terms  expire  shall be elected for a term of office to
expire at the third  succeeding  annual  meeting  of  stockholders  after  their
election.
 
         B.  Subject  to the rights of the  holders  of any series of  Preferred
Stock then outstanding,  newly created directorships resulting from any increase
in the authorized number of Directors or any vacancies in the Board of Directors
resulting from death, resignation,  retirement,  disqualification,  removal from
office or other  cause may be filled  only by a majority  vote of the  Directors
then in office,  though less than a quorum,  and  Directors so chosen shall hold
office for a term expiring at the annual  meeting of  stockholders  at which the
term of office of the class to which they have been chosen expires.  No decrease
in the number of Directors constituting the Board of Directors shall shorten the
term of any incumbent Director.
 
         C.  Advance  notice of  stockholder  nominations  for the  election  of
Directors  and of business to be brought by  stockholders  before any meeting of
the stockholders of the Corporation shall be given in the manner provided in the
Bylaws of the Corporation.
 
         D.  Subject  to the rights of the  holders  of any series of  Preferred
Stock then outstanding,  any Director, or the entire Board of Directors,  may be
removed from office at any time, but only for cause and only by the  affirmative
vote of the  holders of at least 80  percent  of the voting  power of all of the
then-outstanding  shares of capital  stock of the  Corporation  entitled to vote
generally in the election of Directors (after giving effect to the provisions of
Article FOURTH of this Certificate of Incorporation ("Article FOURTH")),  voting
together as a single class.
 
         SEVENTH:  The Board of Directors is expressly empowered to adopt, amend
or repeal the Bylaws of the  Corporation.  Any adoption,  amendment or repeal of
the  Bylaws of the  Corporation  by the Board of  Directors  shall  require  the
approval of  two-thirds  of the Whole Board.  The  stockholders  shall also have
power to  adopt,  amend or  repeal  the  Bylaws  of the  Corporation;  provided,
however,  that, in addition to any vote of the holders of any class or series of
stock  of  the   Corporation   required  by  law  or  by  this   Certificate  of
Incorporation, the affirmative vote of the holders of at least 80 percent of the
voting power of all of the  then-outstanding  shares of the capital stock of the
Corporation  entitled to vote  generally  in the  election of  Directors  (after
giving effect to the provisions of Article FOURTH),  voting together as a single
class,  shall be required to adopt, amend or repeal any provisions of the Bylaws
of the Corporation.
 
         EIGHTH:
 
         A.  In  addition  to any  affirmative  vote  required  by  law or  this
Certificate of Incorporation, and except as otherwise expressly provided in this
section:
 
               1.  any  merger  or  consolidation  of  the  Corporation  or  any
          Subsidiary   (as   hereinafter   defined)  with  (i)  any   Interested
          Stockholder  (as  hereinafter  defined) or (ii) any other  corporation
          (whether or not itself an Interested  Stockholder)  which is, or after
          such merger or  consolidation  would be, an Affiliate (as  hereinafter
          defined) of an Interested Stockholder; or
 
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               2. any sale, lease, exchange, mortgage, pledge, transfer or other
          disposition  (in one  transaction or a series of  transactions)  to or
          with any  Interested  Stockholder,  or any Affiliate of any Interested
          Stockholder, of any assets of the Corporation or any Subsidiary having
          an aggregate Fair Market Value (as  hereinafter  defined)  equaling or
          exceeding 25% or more of the combined  assets of the  Corporation  and
          its Subsidiaries; or
 
               3. the issuance or transfer by the  Corporation or any Subsidiary
          (in one transaction or a series of  transactions) of any securities of
          the Corporation or any Subsidiary to any Interested Stockholder or any
          Affiliate  of  any  Interested   Stockholder  in  exchange  for  cash,
          securities  or other  property (or a  combination  thereof)  having an
          aggregate  Fair  Market  Value (as  hereinafter  defined)  equaling or
          exceeding   25%  of   the   combined   Fair   Market   Value   of  the
          then-outstanding common stock of the Corporation and its Subsidiaries,
          except pursuant to an employee  benefit plan of the Corporation or any
          Subsidiary thereof; or
 
               4. the  adoption of any plan or proposal for the  liquidation  or
          dissolution  of  the  Corporation  proposed  by  or  on  behalf  of an
          Interested Stockholder or any Affiliate of an Interested  Stockholder;
          or
 
               5. any  reclassification  of  securities  (including  any reverse
          stock split), or recapitalization of the Corporation, or any merger or
          consolidation  of the Corporation  with any of its Subsidiaries or any
          other transaction  (whether or not with or into or otherwise involving
          an  Interested   Stockholder)  which  has  the  effect,   directly  or
          indirectly,  of increasing the  proportional  share of the outstanding
          shares  of any  class  of  equity  or  convertible  securities  of the
          Corporation or any Subsidiary which is directly or indirectly owned by
          an   Interested   Stockholder   or  any  Affiliate  of  an  Interested
          Stockholder;
 
shall require the affirmative  vote of the holders of at least 80% of the voting
power of the  then-outstanding  shares of stock of the  Corporation  entitled to
vote in the election of Directors  (the "Voting  Stock") (after giving effect to
the  provision  of Article  FOURTH),  voting  together as a single  class.  Such
affirmative vote shall be required  notwithstanding the fact that no vote may be
required,  or that a lesser percentage may be specified,  by law or by any other
provisions  of  this   Certificate  of  Incorporation  or  any  Preferred  Stock
Designation  or in any  agreement  with  any  national  securities  exchange  or
otherwise.
 
         The term  "Business  Combination"  as used in this Article EIGHTH shall
mean any  transaction  which is referred to in any one or more of  paragraphs  1
through 5 of Section A of this Article EIGHTH.
 
         B. The  provisions  of Section A of this  Article  EIGHTH  shall not be
applicable to any particular Business Combination, and such Business Combination
shall  require  only the  affirmative  vote of the  majority of the  outstanding
shares of capital stock  entitled to vote, or such vote as is required by law or
by  this  Certificate  of  Incorporation,  if,  in  the  case  of  any  Business
Combination that does not involve any cash or other consideration being received
by the stockholders of the Corporation  solely in their capacity as stockholders
of the Corporation,  the condition specified in the following paragraph 1 is met
or,  in the  case  of any  other  Business  Combination,  all of the  conditions
specified in either of the following paragraphs 1 or 2 are met:
 
               1.  The  Business   Combination   shall  have  been  approved  by
          two-thirds of the Disinterested Directors (as hereinafter defined).
 
               2. All of the following conditions shall have been met:
 
               (a)  The  aggregate  amount of the cash and the Fair Market Value
                    as  of  the  date  of  the   consummation  of  the  Business
                    Combination of consideration  other than cash to be received
                    per share by the  holders of Common  Stock in such  Business
                    Combination  shall at least  be equal to the  higher  of the
                    following:
 
                    (1)  (if   applicable)  the  Highest  Per  Share  Price  (as
                         hereinafter    defined),    including   any   brokerage
                         commissions,  transfer  taxes and  soliciting  dealers'
                         fees, paid by the Interested  Stockholder or any of its
                         Affiliates  for any shares of Common Stock  acquired by
                         it (i) within the two-year period  immediately prior to
                         the first  public  announcement  of the proposal of the
                         Business Combination (the "Announcement Date"), or (ii)
                         in the  transaction  in which it became  an  Interested
                         Stockholder, whichever is higher.
 
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                    (2)  the Fair Market  Value per share of Common Stock on the
                         Announcement   Date  or  on  the  date  on  which   the
                         Interested Stockholder became an Interested Stockholder
                         (such latter date is referred to in this Article EIGHTH
                         as the "Determination Date"), whichever is higher.
 
               (b)  The  aggregate  amount of the cash and the Fair Market Value
                    as  of  the  date  of  the   consummation  of  the  Business
                    Combination of consideration  other than cash to be received
                    per share by holders  of shares of any class of  outstanding
                    Voting Stock other than Common Stock shall be at least equal
                    to the highest of the following (it being  intended that the
                    requirements of this  subparagraph  (b) shall be required to
                    be met with  respect  to  every  such  class of  outstanding
                    Voting Stock, whether or not the Interested  Stockholder has
                    previously  acquired  any  shares of a  particular  class of
                    Voting Stock):
 
                    (1)  (if   applicable)  the  Highest  Per  Share  Price  (as
                         hereinafter    defined),    including   any   brokerage
                         commissions,  transfer  taxes and  soliciting  dealers'
                         fees, paid by the Interested Stockholder for any shares
                         of such class of Voting Stock acquired by it (i) within
                         the   two-year   period   immediately   prior   to  the
                         Announcement  Date, or (ii) in the transaction in which
                         it  became  an  Interested  Stockholder,  whichever  is
                         higher;
 
                    (2)  (if  applicable)  the highest  preferential  amount per
                         share to which the  holders  of shares of such class of
                         Voting Stock are entitled in the event of any voluntary
                         or involuntary  liquidation,  dissolution or winding up
                         of the Corporation; and
 
                    (3)  the Fair Market Value per share of such class of Voting
                         Stock on the Announcement  Date or on the Determination
                         Date, whichever is higher.
 
               (c)  The  consideration to be received by holders of a particular
                    class of outstanding  Voting Stock (including  Common Stock)
                    shall  be in cash  or in the  same  form  as the  Interested
                    Stockholder  has paid for  shares  of such  class of  Voting
                    Stock. If the Interested Stockholder has previously paid for
                    shares of any class of Voting  Stock with  varying  forms of
                    consideration,  the form of consideration to be received per
                    share by  holders  of shares of such  class of Voting  Stock
                    shall be either cash or the form used to acquire the largest
                    number of shares of such  class of Voting  Stock  previously
                    acquired by the Interested Stockholder. The price determined
                    in accordance with  subparagraph  B.2 of this Article EIGHTH
                    shall be subject to  appropriate  adjustment in the event of
                    any stock  dividend,  stock split,  combination of shares or
                    similar event.
 
               (d)  After such  Interested  Stockholder has become an Interested
                    Stockholder  and prior to the  consummation of such Business
                    Combination:  (1) except as  approved  by a majority  of the
                    Disinterested Directors, there shall have been no failure to
                    declare  and  pay at the  regular  date  therefor  any  full
                    quarterly  dividends  (whether  or  not  cumulative)  on any
                    outstanding stock having preference over the Common Stock as
                    to dividends or  liquidation;  (2) there shall have been (i)
                    no  reduction  in the annual rate of  dividends  paid on the
                    Common Stock (except as necessary to reflect any subdivision
                    of the Common  Stock),  except as  approved by a majority of
                    the  Disinterested  Directors,  and (ii) an increase in such
                    annual  rate  of  dividends  as  necessary  to  reflect  any
                    reclassification   (including   any  reverse  stock  split),
                    recapitalization,  reorganization or any similar transaction
                    which has the effect of reducing  the number of  outstanding
                    shares  of  the  Common  Stock,  unless  the  failure  to so
                    increase  such  annual rate is approved by a majority of the
                    Disinterested  Directors;  and (3) neither  such  Interested
                    Stockholder or any of its  Affiliates  shall have become the
                    beneficial  owner of any  additional  shares of Voting Stock
                    except  as part of the  transaction  which  results  in such
                    Interested Stockholder becoming an Interested Stockholder.
 
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               (e)  After such  Interested  Stockholder has become an Interested
                    Stockholder,  such  Interested  Stockholder  shall  not have
                    received  the  benefit,   directly  or  indirectly   (except
                    proportionately as a stockholder),  of any loans,  advances,
                    guarantees, pledges or other financial assistance or any tax
                    credits or other tax advantages provided by the Corporation,
                    whether  in  anticipation  of or  in  connection  with  such
                    Business Combination or otherwise.
 
               (f)  A proxy or  information  statement  describing  the proposed
                    Business  Combination and complying with the requirements of
                    the  Securities  Exchange  Act of  1934  and the  rules  and
                    regulations   thereunder  (or  any   subsequent   provisions
                    replacing such Act, rules or regulations) shall be mailed to
                    stockholders  of the  Corporation  at least 30 days prior to
                    the  consummation of such Business  Combination  (whether or
                    not such proxy or  information  statement  is required to be
                    mailed pursuant to such Act or subsequent provisions).
 
         C. For the purposes of this Article EIGHTH:
 
               1. A "Person"  shall  include an  individual,  a group  acting in
          concert,  a  corporation,  a  partnership,  an  association,  a  joint
          venture,  a pool, a joint stock company,  a trust,  an  unincorporated
          organization or similar company, a syndicate or any other group formed
          for the purpose of acquiring, holding or disposing of securities.
 
               2. "Interested Stockholder" shall mean any person (other than the
          Corporation  or any  holding  company or  Subsidiary  thereof)  who or
          which:
 
                    (a) is the beneficial owner, directly or indirectly, of more
               than 10% of the voting power of the outstanding Voting Stock; or
 
                    (b) is an  Affiliate  of  the  Corporation  and at any  time
               within  the  two-year  period  immediately  prior  to the date in
               question was the beneficial owner, directly or indirectly, of 10%
               or more of the voting power of the then-outstanding Voting Stock;
               or
 
                    (c) is an  assignee  of or has  otherwise  succeeded  to any
               shares of Voting Stock which were at any time within the two-year
               period  immediately  prior to the date in  question  beneficially
               owned  by  an  Interested  Stockholder,  if  such  assignment  or
               succession  shall have occurred in the course of a transaction or
               series of transactions not involving a public offering within the
               meaning of the Securities Act of 1933.
 
               3. For purposes of this Article  EIGHTH,  "beneficial  ownership"
          shall be  determined  in the manner  provided  in Section C of Article
          FOURTH hereof.
 
               4. "Affiliate" and "Associate" shall have the respective meanings
          ascribed  to such  terms  in  Rule  12b-2  of the  General  Rules  and
          Regulations under the Securities Exchange Act of 1934, as in effect on
          the date of filing of this Certificate of Incorporation.
 
               5. "Subsidiary"  means any corporation of which a majority of any
          class of equity  security  is owned,  directly or  indirectly,  by the
          Corporation;   provided,   however,  that  for  the  purposes  of  the
          definition of Interested  Stockholder set forth in paragraph 2 of this
          section,  the term "Subsidiary" shall mean only a corporation of which
          a majority  of each class of equity  security  is owned,  directly  or
          indirectly, by the Corporation.
 
                                      E-7
<PAGE>
 
               6.  "Disinterested  Director"  means  any  member of the Board of
          Directors who is unaffiliated with the Interested  Stockholder and was
          a  member  of the  Board  of  Directors  prior  to the  time  that the
          Interested  Stockholder  became  an  Interested  Stockholder,  and any
          Director who is thereafter  chosen to fill any vacancy of the Board of
          Directors or who is elected and who, in either event,  is unaffiliated
          with the  Interested  Stockholder  and in  connection  with his or her
          initial  assumption  of  office  is  recommended  for  appointment  or
          election by a majority of Disinterested Directors then on the Board of
          Directors.
 
               7.  "Fair  Market  Value"  means:  (a) in the case of stock,  the
          highest  closing  sales  price of the stock  during the 30-day  period
          immediately preceding the date in question of a share of such stock on
          the National  Association of Securities  Dealers  Automated  Quotation
          System or any system  then in use,  or, if such stock is  admitted  to
          trading on a principal United States  securities  exchange  registered
          under the Securities  Exchange Act of 1934, Fair Market Value shall be
          the highest sales price  reported  during the 30-day period  preceding
          the date in question,  or, if no such  quotations are  available,  the
          Fair Market  Value on the date in question of a share of such stock as
          determined by the Board of Directors in good faith,  in each case with
          respect to any class of stock, appropriately adjusted for any dividend
          or  distribution  in  shares  of such  stock  or any  stock  split  or
          reclassification  of  outstanding  shares of such stock into a greater
          number of shares of such stock or any combination or  reclassification
          of outstanding shares of such stock into a smaller number of shares of
          such stock,  and (b) in the case of property other than cash or stock,
          the Fair  Market  Value of such  property  on the date in  question as
          determined by the Board of Directors in good faith.
 
               8. Reference to "Highest Per Share Price" shall in each case with
          respect to any class of stock reflect an  appropriate  adjustment  for
          any  dividend  or  distribution  in shares of such  stock or any stock
          split or  reclassification  of outstanding shares of such stock into a
          greater  number  of  shares  of  such  stock  or  any  combination  or
          reclassification  of  outstanding  shares of such stock into a smaller
          number of shares of such stock.
 
               9.  In the  event  of  any  Business  Combination  in  which  the
          Corporation survives,  the phrase "consideration other than cash to be
          received"  as used in  subparagraphs  (a)  and (b) of  paragraph  2 of
          Section B of this Article  EIGHTH  shall  include the shares of Common
          Stock and/or the shares of any other class of outstanding Voting Stock
          retained by the holders of such shares.
 
         D. A majority of the Directors of the Corporation  shall have the power
and duty to determine for the purposes of this Article  EIGHTH,  on the basis of
information  known to them after  reasonable  inquiry (a) whether a person is an
Interested  Stockholder;  (b) the number of shares of Voting Stock  beneficially
owned by any  person;  (c)  whether a person is an  Affiliate  or  Associate  of
another;  and (d)  whether  the assets  which are the  subject  of any  Business
Combination  have,  or the  consideration  to be  received  for the  issuance or
transfer of  securities  by the  Corporation  or any  Subsidiary in any Business
Combination  has an aggregate Fair Market Value equaling or exceeding 25% of the
combined  Fair  Market  Value of the  common  stock of the  Corporation  and its
Subsidiaries.  A  majority  of the  Directors  shall have the  further  power to
interpret all of the terms and provisions of this Article EIGHTH.
 
         E.  Nothing  contained  in this  Article  EIGHTH  shall be construed to
relieve any Interested Stockholder from any fiduciary obligation imposed by law.
 
         F.   Notwithstanding  any  other  provisions  of  this  Certificate  of
Incorporation or any provision of law which might otherwise permit a lesser vote
or no vote,  but in  addition  to any  affirmative  vote of the  holders  of any
particular class or series of the Voting Stock required by law, this Certificate
of Incorporation or any Preferred Stock Designation, the affirmative vote of the
holders  of  at  least  80   percent   of  the  voting   power  of  all  of  the
then-outstanding  shares of the Voting Stock, voting together as a single class,
shall be required to alter, amend or repeal this Article EIGHTH.
 
         NINTH: The Board of Directors of the  Corporation,  when evaluating any
offer of another  Person (as  defined  in Article  EIGHTH  hereof) to (A) make a
tender or exchange offer for any equity security of the  Corporation,  (B) merge
or  consolidate  the  Corporation  with  another  corporation  or  entity or (C)
purchase or otherwise  acquire all or  substantially  all of the  properties and
assets of the Corporation,  may, in connection with the exercise of its judgment
in  determining  what  is in the  best  interest  of  the  Corporation  and  its
stockholders, give due consideration to all relevant factors, including, without
limitation,  the social and economic  effect of  acceptance of such offer on the
Corporation's  present  and  future  customers  and  employees  and those of its
Subsidiaries (as defined in Article EIGHTH hereof);  on the communities in which
the Corporation and its Subsidiaries  operate or are located;  on the ability of
the  Corporation  to fulfill its corporate  objectives as a savings bank holding
company  and on the  ability  of its  subsidiary  savings  bank to  fulfill  the
objectives of a stock savings bank under applicable statutes and regulations.
 
                                      E-8
<PAGE>
 
         TENTH:
 
         A. Each person who was or is made a party or is threatened to be made a
party to or is otherwise  involved in any action,  suit or  proceeding,  whether
civil, criminal,  administrative or investigative  (hereinafter a "proceeding"),
by reason of the fact that he or she is or was a  Director  or an Officer of the
Corporation  or is or  was  serving  at the  request  of  the  Corporation  as a
Director, Officer, employee or agent of another corporation or of a partnership,
joint venture,  trust or other enterprise,  including service with respect to an
employee benefit plan (hereinafter an  "indemnitee"),  whether the basis of such
proceeding  is alleged  action in an official  capacity as a Director,  Officer,
employee or agent or in any other capacity while serving as a Director, Officer,
employee or agent,  shall be indemnified and held harmless by the Corporation to
the fullest extent  authorized by the Delaware  General  Corporation Law, as the
same exists or may hereafter be amended (but, in the case of any such amendment,
only to the  extent  that such  amendment  permits  the  Corporation  to provide
broader  indemnification  rights  than such law  permitted  the  Corporation  to
provide  prior to such  amendment),  against  all  expense,  liability  and loss
(including  attorneys' fees,  judgments,  fines, ERISA excise taxes or penalties
and  amounts  paid  in  settlement)  reasonably  incurred  or  suffered  by such
indemnitee in connection therewith;  provided, however, that, except as provided
in  Section  C  hereof  with  respect  to   proceedings  to  enforce  rights  to
indemnification,   the  Corporation  shall  indemnify  any  such  indemnitee  in
connection with a proceeding (or part thereof) initiated by such indemnitee only
if such proceeding (or part thereof) was authorized by the Board of Directors of
the Corporation.
 
         B. The right to indemnification  conferred in Section A of this Article
TENTH  shall  include  the  right  to be paid by the  Corporation  the  expenses
incurred in defending any such  proceeding  in advance of its final  disposition
(hereinafter  an  "advancement of expenses");  provided,  however,  that, if the
Delaware General  Corporation Law requires,  an advancement of expenses incurred
by an indemnitee in his or her capacity as a Director of Officer (and not in any
other  capacity  in  which  service  was  or is  rendered  by  such  indemnitee,
including,  without  limitation,  service to an employee  benefit plan) shall be
made only upon delivery to the  Corporation  of an undertaking  (hereinafter  an
"undertaking"),  by or on behalf of such  indemnitee,  to repay all  amounts  so
advanced if it shall  ultimately be determined by final  judicial  decision from
which there is no further right to appeal  (hereinafter a "final  adjudication")
that such  indemnitee is not entitled to be indemnified  for such expenses under
this Section or otherwise.  The rights to indemnification and to the advancement
of  expenses  conferred  in  Sections  A and B of this  Article  TENTH  shall be
contract  rights and such  rights  shall  continue as to an  indemnitee  who has
ceased to be a  Director,  Officer,  employee  or agent  and shall  inure to the
benefit of the indemnitee's heirs, executors and administrators.
 
         C. If a claim under Section A or B of this Article TENTH is not paid in
full by the  Corporation  within  sixty  days  after a  written  claim  has been
received by the Corporation, except in the case of a claim for an advancement of
expenses,  in which  case  the  applicable  period  shall be  twenty  days,  the
indemnitee  may at any time  thereafter  bring suit against the  Corporation  to
recover the unpaid amount of the claim. If successful in whole or in part in any
such suit, or in a suit brought by the  Corporation to recover an advancement of
expenses  pursuant  to the  terms of an  undertaking,  the  indemnitee  shall be
entitled to be paid also the expense of  prosecuting  or defending such suit. In
(i) any suit  brought by the  indemnitee  to enforce a right to  indemnification
hereunder  (but not in a suit brought by the indemnitee to enforce a right to an
advancement of expenses) it shall be a defense that, and (ii) in any suit by the
Corporation to recover an  advancement  of expenses  pursuant to the terms of an
undertaking  the  Corporation  shall be entitled to recover such expenses upon a
final adjudication that, the indemnitee has not met any applicable  standard for
indemnification  set forth in the Delaware General  Corporation Law. Neither the
failure of the Corporation (including its Board of Directors,  independent legal
counsel,  or its  stockholders)  to  have  made  a  determination  prior  to the
commencement  of such suit that  indemnification  of the indemnitee is proper in
the  circumstances  because the indemnitee  has met the  applicable  standard of
conduct  set  forth in the  Delaware  General  Corporation  Law,  nor an  actual
 
                                      E-9
<PAGE>
 
 
determination by the Corporation (including its Board of Directors,  independent
legal  counsel,  or its  stockholders)  that  the  indemnitee  has not met  such
applicable  standard of conduct,  shall create a presumption that the indemnitee
has not met the  applicable  standard  of conduct or, in the case of such a suit
brought by the indemnitee, be a defense to such suit. In any suit brought by the
indemnitee  to  enforce  a right  to  indemnification  or to an  advancement  of
expenses hereunder,  or by the Corporation to recover an advancement of expenses
pursuant  to the  terms  of an  undertaking,  the  burden  of  proving  that the
indemnitee  is  not  entitled  to be  indemnified,  or to  such  advancement  of
expenses, under this Article TENTH or otherwise shall be on the Corporation.
 
         D. The rights to  indemnification  and to the  advancement  of expenses
conferred in this Article  TENTH shall not be exclusive of any other right which
any person may have or hereafter  acquire under any statute,  the  Corporation's
Certificate  of  Incorporation,  Bylaws,  agreement,  vote  of  stockholders  or
disinterested Directors or otherwise.
 
         E. The Corporation may maintain  insurance,  at its expense, to protect
itself  and any  Director,  Officer,  employee  or agent of the  Corporation  or
another  corporation,  partnership,  joint  venture,  trust or other  enterprise
against any expense,  liability or loss,  whether or not the  Corporation  would
have the power to indemnify such person against such expense,  liability or loss
under the Delaware General Corporation Law.
 
         F. The Corporation  may, to the extent  authorized from time to time by
the Board of Directors,  grant rights to indemnification  and to the advancement
of expenses to any employee or agent of the Corporation to the fullest extent of
the  provisions  of this Article TENTH with respect to the  indemnification  and
advancement of expenses of Directors and Officers of the Corporation.
 
         ELEVENTH: A Director of this Corporation shall not be personally liable
to the  Corporation  or its  stockholders  for  monetary  damages  for breach of
fiduciary  duty as a Director,  except for  liability  (i) for any breach of the
Director's duty of loyalty to the Corporation or its stockholders, (ii) for acts
or omissions  not in good faith or which  involve  intentional  misconduct  or a
knowing  violation  of law,  (iii)  under  Section 174 of the  Delaware  General
Corporation  Law, or (iv) for any transaction from which the Director derived an
improper personal benefit. If the Delaware General Corporation Law is amended to
authorize   corporate  action  further  eliminating  or  limiting  the  personal
liability of  Directors,  then the  liability  of a Director of the  Corporation
shall be eliminated or limited to the fullest  extent  permitted by the Delaware
General Corporation Law, as so amended.
 
         Any  repeal  or  modification   of  the  foregoing   paragraph  by  the
stockholders  of the  Corporation  shall  not  adversely  affect  any  right  or
protection of a Director of the Corporation  existing at the time of such repeal
or modification.
 
         TWELFTH:  The  Corporation  reserves  the right to amend or repeal  any
provision   contained  in  this  Certificate  of  Incorporation  in  the  manner
prescribed  by the laws of the State of Delaware and all rights  conferred  upon
stockholders are granted subject to this reservation;  provided,  however, that,
notwithstanding  any other provision of this Certificate of Incorporation or any
provision of law which might  otherwise  permit a lesser vote or no vote, but in
addition  to any vote of the  holders of any class or series of the stock of the
Corporation  required  by law  or by  this  Certificate  of  Incorporation,  the
affirmative  vote of the  holders of at least 80 percent of the voting  power of
all of the  then-outstanding  shares  of the  capital  stock of the  Corporation
entitled to vote generally in the election of Directors  (after giving effect to
the provisions of Article FOURTH),  voting together as a single class,  shall be
required to amend or repeal this Article  TWELFTH,  Section C of Article FOURTH,
Sections C or D of Article FIFTH, Article SIXTH, Article SEVENTH, Article EIGHTH
or Article TENTH.
 
                                      E-10
 
<PAGE>
 
 
 
         THIRTEENTH:  The name and mailing address of the sole  incorporator are
as follows:
 
        Name                                         Mailing Address
        ----                                         ---------------
 
        Alan Schick                                  5335 Wisconsin Avenue, N.W.
                                                     Suite 400
                                                     Washington, D.C.  20015
 
 
        I, THE UNDERSIGNED, being the incorporator, for the purpose of forming a
corporation  under the laws of the State of Delaware,  do make,  file and record
this Certificate of  Incorporation,  do certify that the facts herein stated are
true, and accordingly, have hereto set my hand this 22 day of December, 2000.
 
 
 
 
                                   /s/ Alan Schick
                                   ________________________
                                   Alan Schick
                                   Incorporator