FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended June 30, 2000

                           Commission File No. 0-24793

                           CGB&L FINANCIAL GROUP, INC.
             (Exact name of registrant as specified in its charter)

                      Delaware                       37-1374123
            (State or other jurisdiction          (I.R.S. Employer
          of incorporation or organization)      Identification No.)

               229 East South Street, Cerro Gordo, Illinois 61818
              (Address of principal executive offices and Zip Code)

                                 (217) 763-2911
              (Registrant's telephone number, including area code)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes ___X___ No______

         As of August 14, 2000, the registrant had outstanding 92,573 shares of
its $.01 par value common stock.

         Transitional Small Business Disclosure Format (Check One):
                                                               Yes/__/    No_X_/






                               Page 1 of 12 pages


<PAGE>

<TABLE>
<CAPTION>
                                Table of Contents

Part I - FINANCIAL INFORMATION
                                                                                        Page
<S>                                                                                     <C>

         Item 1.  Financial Statements                                                  3-6

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

Part II - OTHER INFORMATION

         Item l.   Legal Proceedings                                                    10

         Item 2.  Change in Securities and Use of Proceeds                              10

         Item 3.  Defaults Upon Senior Securities                                       10

         Item 4.  Submission of Matters to a Vote of Security Holders                   10

         Item 5.  Other Information                                                     10

         Item 6.  Exhibits and Reports on Form 8-K                                      10

         Signatures                                                                     10

</TABLE>

Statements contained in the Form 10-QSB which are not historical facts are
forward-looking statements, as that term is described in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risk and uncertainties that could cause actual results to differ materially from
those projected. Such risks and uncertainties include potential changes in
interest rates, competitive factors in the financial services industry, general
economic conditions, the effect of new legislation and other risks detailed in
documents filed by the Company with the Securities and Exchange Commission from
time to time and in the Company's last filed Form 10KSB.






















                                        2

<PAGE>

                    CGB&L Financial Group, Inc.
                Condensed Consolidated Balance Sheet
                 As of June 30 and March 31, 2000


<TABLE>
<CAPTION>
                                                             June 30         March 31
                                                               2000            2000
                                                            -----------     -----------
                                                            (unaudited)
<S>                                                         <C>             <C>
Assets
  Cash and cash equivalents                                 $   211,051     $   512,729
  Interest-bearing time deposits                                590,000         590,000
  Investment securities available for sale                      149,688         163,317
  Loans                                                       6,832,424       6,624,200
  Allowance for Loan losses                                     (32,700)        (32,700)
                                                            -----------     -----------
     Net Loans                                                6,799,724       6,591,500
  Premises and equipment                                         16,190          16,526
  Federal Home Loan Bank stock                                   62,800          55,100
  Other assets                                                   53,523          52,512
                                                            -----------     -----------
      Total Assets                                          $ 7,882,976     $ 7,981,684
                                                            ===========     ===========

Liabilities
  Interest-bearing deposits                                 $ 5,177,111     $ 5,265,067
  Long-term debt                                              1,000,000       1,000,000
  Other liabilities                                              96,448         109,676
                                                            -----------     -----------
      Total liabilities                                       6,273,559       6,374,743
                                                            -----------     -----------
Equity Received from Contributions to the ESOP                   22,358          20,278
                                                            -----------     -----------
Stockholders' Equity
  Preferred stock,  $.01 par value
     Authorized and unissued -- 100,000 shares
  Common stock, $ .01 par value
      Authorized -- 900,000  shares
      Issued -- 99,000 shares, less ESOP shares of
         5,657 and 5,939 shares                                     911             911
  Paid in capital                                               619,044         618,747
  Retained earnings                                             928,795         921,780
  Accumulated other comprehensive income                         96,406         105,401
                                                            -----------     -----------
                                                              1,645,156       1,646,839
     Less: Unearned incentive plan shares,
         3,179 and 3,366 shares                                 (33,264)        (35,343)
     Less: Treasury stock at cost -2,365 shares                 (24,833)        (24,833)
                                                            -----------     -----------
Total stockholders' equity                                    1,587,059       1,586,663
                                                            -----------     -----------
Total liabilities and stockholders' equity                  $ 7,882,976     $ 7,981,684
                                                            ===========     ===========

</TABLE>

See note to condensed consolidated financial statements


                                       3

<PAGE>


                       CGB&L Financial Group, Inc.
                 Condensed Consolidated Income Statement
      For the three months ended June 30, 2000 and 1999 (Unaudited)

<TABLE>
<CAPTION>
                                                     For the 3 months ended June 30
                                                         2000         1999
                                                       ---------    ---------
<S>                                                    <C>          <C>
Interest Income
  Loans receivable                                     $ 146,791    $ 120,068
  Investment securities                                    1,736        1,447
  Interest-bearing deposits                               14,681       22,384
                                                       ---------    ---------
      Total interest income                              163,208      143,899

Interest Expense
  Deposits                                                70,179       67,190
  FHLB borrowings                                         15,895        9,646
                                                       ---------    ---------
     Total interest expense                               86,074       76,836
                                                       ---------    ---------

Net Interest Income                                       77,134       67,063
  Provision for Loan Loss                                      0            0
                                                       ---------    ---------
Net Interest Income After Provision for Loan Losses       77,134       67,063
                                                       ---------    ---------
Noninterest Income                                         1,293        1,025
                                                       ---------    ---------

Noninterest Expense
   Salaries and employee benefits                         37,796       45,340
   Net occupancy and equipment expenses                    2,123        1,531
   Deposit insurance  expense                                273          767
   Insurance expense                                       1,263        1,263
   Other expenses                                         14,673       22,255
                                                       ---------    ---------
     Total noninterest expense                            56,128       71,156
                                                       ---------    ---------

Income (Loss) Before Income Tax                           22,299       (3,068)
   Income tax expense (Benefit)                            5,400         (675)
                                                       ---------    ---------
Net Income (Loss)                                      $  16,899    ($  2,393)
                                                       =========    =========

Per share data:
  Basic Earnings Per Share                             $    0.19    ($   0.03)
                                                       =========    =========

  Diluted Earnings Per Share                           $    0.19    ($   0.03)
                                                       =========    =========
</TABLE>

See notes to condensed consolidated financial statements.






                                        4

<PAGE>



                           CGB&L Financial Group, Inc.
      Condensed Consolidated Statement of Comprehensive Income (Unaudited)


<TABLE>
<CAPTION>
                                                    For the 3 months ended June 30,
                                                         2000        1999
                                                       --------     --------

<S>                                                    <C>          <C>
Net Income (Loss)                                      $ 16,899     ($ 2,393)

Other comprehensive income,
  Net of tax
             Unrealized holding gain (loss) arising
             during the period                         ($ 8,995)    $  1,676
                                                       --------     --------

Comprehensive income (loss)                            $  7,904     ($   717)
                                                       ========     ========

</TABLE>


See notes to condensed consolidated financial statements.








                                       5

<PAGE>

                  CGB&L Financial Group, Inc.
        Condensed Consolidated Statement of Cash Flows
         Three Months Ended June 30, 2000 (Unaudited)

<TABLE>
<CAPTION>
                                                      2000          1999
                                                    ---------     ---------
<S>                                                 <C>           <C>
Operating Activities
  Net income                                        $  16,899     ($  2,393)
  Adjustments to reconcile net income to net
    cash provided by operating activities
    Depreciation                                          336           336
    Compensation expense related to employee
      stock ownership plan and incentive plan           3,861         4,023
    Net change in:
       Other liabilities                               (8,594)       (5,448)
       Other assets                                    (1,011)       15,528
                                                    ---------     ---------

       Net cash provided by operating activities       11,491        12,046
                                                    ---------     ---------

Investing Activities
  Net change in loans                                (208,224)     (144,588)
  Purchase of premises and equipment                        0          (902)
  Purchase of FHLB stock                               (7,700)            0
                                                    ---------     ---------

       Net cash used by investing activities         (215,924)     (145,490)
                                                    ---------     ---------

Financing Activities
  Net change in deposits                              (87,956)      179,596
  Cash dividend                                        (9,289)       (9,900)
                                                    ---------     ---------
       Net cash provided by financing activities      (97,245)      169,696
                                                    ---------     ---------

Net Change in Cash and Cash Equivalents              (301,678)       36,252
Cash and Cash Equivalents, Beginning of Period        512,729       775,314
                                                    ---------     ---------
Cash and Cash Equivalents, End of Period            $ 211,051     $ 811,566
                                                    =========     =========

Additional Cash Flows Information
   Interest paid                                    $  86,349     $  78,159
   Income tax paid                                          0             0

</TABLE>

See notes to condensed consolidated financial statements.








                                        6





<PAGE>

Notes to Condensed Consolidated Financial Statements

1.       BACKGROUND INFORMATION

         CGB&L Financial Group, Inc. (the "Company") was incorporated on May 21,
         1998 and on September 22, 1998 acquired all of the outstanding shares
         of common stock of Cerro Gordo Building and Loan, s.b. of Cerro Gordo,
         (the "Bank") upon the Bank's conversion from a state chartered mutual
         savings bank to a state chartered savings bank. The Company purchased
         100% of the outstanding capital stock of the Bank using 50% of the net
         proceeds from the Company's initial stock offering, which was completed
         on September 22, 1998. The Company sold 99,000 shares of common stock
         in the initial offering at $10 per share, including 7,919 shares
         purchased by the Bank's Employee Stock Ownership Plan ("ESOP"). The
         Bank acquired the ESOP shares with proceeds from a Company loan
         totaling $79,190. The net proceeds of the offering totaled $699,293:
         $990,000 less $290,707 in underwriting costs and other conversion
         expenses.

         The acquisition of the Bank by the Company was accounted for as a
         "pooling-of-interests" under generally accepted accounting principles.
         The application of the pooling-of-interests method records the assets
         and liabilities of the merged companies on a historical cost basis with
         no goodwill or other intangible assets being recorded.



2.       STATEMENT OF INFORMATION FURNISHED


         The accompanying unaudited consolidated financial statements have been
         prepared in accordance with Form 10-QSB instructions and item 310(b) of
         Regulations S-B. In the opinion of management these statements contain
         all adjustments necessary to present fairly the financial position as
         of June 2000 and March 2000, the results of operations for the three
         months ended June 2000 and June 1999, comprehensive income and the cash
         flows for the three months ended June 2000 and June 1999. All
         adjustments to the financial statements were normal and recurring in
         nature. These results have been determined on the basis of generally
         accepted accounting principles. The results of operations for the three
         months ended June 2000 are not necessarily indicative of the results to
         be expected for the entire fiscal year.

         The consolidated financial statements are those of the Company and the
         Bank. These consolidated financial statements should be read in
         conjunction with the audited financial statements and notes thereto
         included in the Company's Annual Report to shareholders dated July 10,
         2000.























                                        7
<PAGE>



      PART I. FINANCIAL INFORMATION

      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF FINANCIAL
              CONDITION AND RESULTS OF OPERATION

      CGB&L Financial Group, Inc. (the "Company") is the holding company for
      Cerro Gordo Building and Loan, s.b. (the "Bank"). Prior to the Company's
      acquisition of the Bank on September 22, 1998, the Company had no material
      assets or operations.

                               FINANCIAL CONDITION

      Total assets decreased $98,708 from March 31, 2000 to June 30, 2000 or
      1.24% for the first quarter. This decrease was attributable primarily to
      decreases in cash and cash equivalents and investment securities offset by
      increases in the loan portfolio and Federal Home Loan Bank ("FHLB") stock.
      Cash and cash equivalents decreased $301,678 and investment securities
      decreased $13,629. Net loans increased $208,224 and FHLB stock increased
      $7,700.

      The increase in net loans from March 31, 2000 to June 30, 2000 was the
      result of an increase in one-to-four family residential mortgage loans.
      This growth was the result of management's continued emphasis on the
      Bank's loan portfolio.

      The decrease in investment securities was the result of a decrease in the
      market value of the Federal Home Loan Mortgage Corporation ("FHLMC")
      stock. The FHLMC stock is the sole investment security held by the
      Building and Loan.

      The Company experienced a decrease in total deposits from March 31, 2000
      to June 30, 2000 of $87,956 or 1.67%.

      Total stockholders' equity increased $396 from March 31, 2000 to June 30,
      2000; the increase summarized as follows:

<TABLE>
<S>                                                                                        <C>
               Stockholders' equity, March 31, 2000 ..................................     $ 1,586,663
                        Net Income ...................................................          16,899
                        Decrease in unrealized gain on securities available for sale .          (8,995)
                        Cash dividends paid ..........................................          (9,289)
                        Incentive plan shares earned .................................           1,781
                                                                                           -----------
               Stockholders' equity, June 30, 2000 ...................................     $ 1,587,059
                                                                                           ===========
</TABLE>

                                    RESULTS OF OPERATIONS

 THREE MONTHS COMPARISON

      Net income was $19,292 more in the quarter ended June 30, 2000 compared to
      the same quarter in 1999, primarily due to an increase in net interest
      income and a decrease in employee compensation and other expenses.

      Net interest income was $10,071 higher in the three months ended June 30,
      2000 compared to the same period in 1999. Interest income was $19,309
      higher, primarily due to a higher average balance in the mortgage loan
      portfolio and FHLB stock offset by a decrease in the average balance in
      interest bearing deposit accounts for the same period. Interest expense
      increased by $9,238 in the quarter ended June 30, 2000 compared to the
      quarter ended June 30, 1999 due to an increase in FHLB borrowings used to
      fund mortgage loans.



                                        8

<PAGE>

      The provision for loan losses were $0 for the first three months in 2000
      and $0 for the same period in 1999. Management of the Bank believes that
      the allowance for loan losses is sufficient based on information currently
      available. No assurances can be made that future events or conditions or
      regulatory directives will not result in increased provisions for loan
      losses or additions to the Bank's allowance for loan losses which may
      adversely affect net income. Non-performing assets for the quarter ended
      June 30, 2000 decreased to $95,155 (3 loans) from $98,843 (3 loans) at
      June 20, 1999. These loans were each three payments delinquent when
      classified, all have sufficient collateral and the Building and Loan
      anticipates no collection problems.

      Noninterest expense was $15,028 lower in the quarter ended June 30, 2000
      compared to the same period in 1999. Employee compensation decreased a
      total of $7,544 for the period. The Simplified Employee Pension Plan that
      had been in effect was frozen July 1, 1999, for a decrease of $4,466,
      salaries decreased by $1,170 due to a change in personnel, and the
      Illinois unemployment contribution rate for the Building and Loan
      decreased from 5.4% in 1999 to .6% in 2000 for a savings of $1,338 for the
      quarter compared to the same period in 1999. Other expense decreased
      $7,582 as a result of a reduction in the initial expenses related to being
      a public company.

      Income tax expense was $6,075 more in the three months ended June 30, 2000
      compared to the three months ended the same period in 1999 due to the
      $22,298 income before taxes this period compared to a net loss for the
      same period in 1999. The effective tax rate was 24.2% in 2000 compared to
      22.0% in 1999.

      LIQUIDITY AND CAPITAL RESOURCES

      The Bank's primary sources of funds are deposits, principal and interest
      payments on loans and FHLB advances. While maturities and scheduled
      amortizations of loans are predictable sources of funds, deposit flows and
      mortgage prepayments are greatly influenced by general interest rates,
      economic conditions, and competition. The Federal Deposit Insurance
      Corporation ("FDIC"), the Company's and the Bank's primary regulator,
      requires the Bank to maintain minimum levels of liquid assets. Currently,
      the required ratio is 5%. The Bank's liquidity ratios were 13.23% and
      15.16 % at June 30, 2000 and March 31, 2000, respectively, well above the
      required minimum.

      A review of the Condensed Consolidated Statement of Cash Flows included in
      the accompanying financial statement shows that the Company's cash and
      cash equivalents ("cash") decreased $301,678 from March 31, 2000 to June
      30, 2000 compared to an increase of $36,252 from March 31, 1999 to June
      30, 1999. During the first three months of fiscal 2000, funds were used
      primarily to fund a $208,224 net increase in one- to four-family loans,
      purchase of $7,700 FHLB stock, a $87,956 net decrease in customer
      deposits, and a dividend payment of $9,289 offset by net cash of $9,710
      provided by operating activities and $1,781 unearned incentive shares.

      As of June 30, 2000, the Bank had outstanding commitments (including
      undisbursed loan proceeds) of $261,808. The bank anticipates that it will
      have sufficient funds available to meet its current loan origination
      commitments. Certificates of deposit, which are scheduled to mature in one
      year or less from June 30, 2000, total $1.5 million. Based upon the Bank's
      experience, management believes that a significant portion of such
      deposits will remain with the Bank.

      Federally insured state-chartered banks are required to maintain minimum
      levels of regulatory capital. Under current FDIC regulations, insured
      state-chartered banks generally must maintain (i) a ratio of Tier 1
      leverage capital to total assets of at least 3.0% (4.0% to 5.0% for all
      but the most highly rated banks) and (ii) ratio of Tier 1 capital to risk
      weighted assets of at least 4.0% and a ratio of total risk based capital
      to risk weighted assets of at least 8.0%. At June 30, 2000, the Bank was
      in compliance with applicable regulatory capital requirements as follows:

                Tier 1 Capital to Risk Weighted Assets               31.83%
                Tier 1 Capital to Total Assets                       15.39%
                Risk Based Capital to Risk Weighted Assets           32.73%




                                        9

<PAGE>

RECENT ACCOUNTING PRONOUNCEMENTS

      During 1998, the Financial Accounting Standards Board ("FASB") issued
      Statement No. 133, "Accounting for Derivative Instruments and Hedging
      Activities." This Statement requires companies to record derivatives on
      the balance sheet at their fair value. Statement No. 137 amended the
      effective date of Statement No. 133 to fiscal years beginning after June
      15, 2000. The new Statement applies to all entities. This Statement may
      not be applied retroactively to financial statements of prior periods. The
      adoption of the Statement will have no material impact on the
      Corporation's financial condition or result of operations.

Part II.  OTHER INFORMATION

      Item l.    Legal Proceedings
                    Not applicable
      Item 2.   Changes in Securities and Use of Proceeds
                    Not applicable
      Item 3.   Defaults Upon Senior Securities
                    Not applicable
      Item 4.   Submission of Matters to a Vote of Security Holders
                    Not applicable
      Item 5.   Other Information
                    Not applicable
      Item 6.   Exhibits and Reports on Form 8-K

      a.  Exhibits
           The following exhibits are filed as part of this report:
           11.0    Computation of earnings per share
           27.     Financial Data Schedule

      b. Report on Form 8-K
                   none

        ---------------------------------


Signatures

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned thereunto duly authorized.

      Dated:  August 14, 2000   By: /s/  Maralyn F. Heckman
                                         (Authorized Signor)
                                         President (Principal Executive Officer)
                                         and Treasurer (Chief Financial Officer)











                                       10