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 September 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 October 31, 2000, the registrant had outstanding 96,313 shares of
its $.01 par value common stock.

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


                               Page 1 of 14 pages


<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>


Part I - FINANCIAL INFORMATION
------------------------------
                                                                                        Page
                                                                                        ----

<S>                                                                                     <C>
         Item 1.  Financial Statements                                                  3-7

         Item 2.  Management's Discussion and Analysis                                   8
                  Of Financial Condition and Results of Operations



Part II - OTHER INFORMATION
---------------------------

         Item l.   Legal Proceedings                                                    11

         Item 2.  Change in Securities and Use of Proceeds                              11

         Item 3.  Defaults Upon Senior Securities                                       11

         Item 4.  Submission of Matters to a Vote of Security Holders                   11

         Item 5.  Other Information                                                     11

         Item 6.  Exhibits and Reports on Form 8-K                                      11

         Signatures                                                                     12

</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 September 30 and March 31, 2000


<TABLE>
<CAPTION>
                                                            September 30      March 31
                                                                2000            2000
                                                             -----------     -----------
                                                             (unaudited)
<S>                                                          <C>             <C>
ASSETS
  Cash and cash equivalents                                  $   591,809     $   512,729
  Interest-bearing time deposits                                 491,000         590,000
  Investment securities available for sale                       199,815         163,317
  Loans                                                        6,837,087       6,624,200
  Allowance for loan losses                                      (32,700)        (32,700)
                                                             -----------     -----------
     Net Loans                                                 6,804,387       6,591,500
  Premises and equipment                                          15,854          16,526
  Federal Home Loan Bank stock                                    63,900          55,100
  Other assets                                                    58,463          52,512
                                                             -----------     -----------
      Total Assets                                           $ 8,225,228     $ 7,981,684
                                                             ===========     ===========

LIABILITIES
  Interest-bearing deposits                                  $ 5,459,294     $ 5,265,067
  Long-term debt                                               1,000,000       1,000,000
  Other liabilities                                              122,089         109,676
                                                             -----------     -----------
      Total liabilities                                        6,581,383       6,374,743
                                                             -----------     -----------
Equity Received from Contributions to the ESOP                    24,344          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
         5,374 and 5,939 shares                                      911             911
  Paid in capital                                                618,607         618,747
  Retained earnings                                              929,962         921,780
  Accumulated other comprehensive income                         129,490         105,401
                                                             -----------     -----------
                                                               1,678,970       1,646,839
     Less: Unearned incentive plan shares,
         2,992 and 3,366 shares                                  (31,416)        (35,343)
     Less: Treasury stock at cost -2,687 and 2,365 shares        (28,053)        (24,833)
                                                             -----------     -----------
Total stockholders' equity                                     1,619,501       1,586,663
                                                             -----------     -----------
Total liabilities and stockholders' equity                   $ 8,225,228     $ 7,981,684
                                                             ===========     ===========
</TABLE>

See notes to condensed consolidated financial statements.




                                        3


<PAGE>


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

                                                       For the 6 months ended
                                                            September 30
                                                         2000        1999
                                                       --------    --------
Interest Income
  Loans receivable                                     $289,667    $269,520
  Investment securities                                   3,589       2,904
  Interest -bearing deposits                             29,878      41,281
                                                       --------    --------
      Total interest income                             323,134     313,705

Interest Expense
  Deposits                                              144,372     135,859
  FHLB borrowings                                        31,964      20,865
                                                       --------    --------
     Total interest expense                             176,336     156,724
                                                       --------    --------

Net Interest Income                                     146,798     156,981
  Provision for Loan Loss                                     0           0
                                                       --------    --------
Net Interest Income After Provision for Loan Losses     146,798     156,981
                                                       --------    --------
Noninterest Income                                        2,778       1,903
                                                       --------    --------

Noninterest Expense
   Salaries and employee benefits                        76,128      81,153
   Net occupancy and equipment expenses                   4,463       3,979
   Deposit insurance  expense                               544       1,491
   Insurance expense                                      2,526       2,526
   Other expenses                                        42,329      45,709
                                                       --------    --------
     Total noninterest expense                          125,990     134,858
                                                       --------    --------

Income Before Income Tax                                 23,586      24,026
   Income tax expense                                     5,974       6,065
                                                       --------    --------
Net Income                                             $ 17,612    $ 17,961
                                                       ========    ========
Per share data:
  Basic Earnings Per Share                             $   0.20    $   0.20
                                                       ========    ========
  Diluted Earnings Per Share                           $   0.20    $   0.20
                                                       ========    ========

See notes to condensed consolidated financial statements.






                                        4


<PAGE>




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


                                                       For the 3 months ended
                                                            September 30
                                                         2000        1999
                                                       --------    --------
Interest Income
  Loans receivable                                     $142,876    $149,452
  Investment securities                                   1,853       1,457
  Interest -bearing deposits                             15,197      18,897
                                                       --------    --------
      Total interest income                             159,926     169,806

Interest Expense
  Deposits                                               74,193      68,669
  FHLB borrowings                                        16,069      11,219
                                                       --------    --------
     Total interest expense                              90,262      79,888
                                                       --------    --------

Net Interest Income                                      69,664      89,918
  Provision for Loan Loss                                     0           0
                                                       --------    --------
Net Interest Income After Provision for Loan Losses      69,664      89,918
                                                       --------    --------
Noninterest Income                                        1,485         878
                                                       --------    --------

Noninterest Expense
   Salaries and employee benefits                        38,332      35,813
   Net occupancy and equipment expenses                   2,340       2,448
   Deposit insurance  expense                               271         724
   Insurance expense                                      1,263       1,263
   Other expenses                                        27,656      23,454
                                                       --------    --------
     Total noninterest expense                           69,862      63,702
                                                       --------    --------

Income Before Income Tax                                  1,287      27,094
   Income tax expense                                       574       6,740
                                                       --------    --------
Net Income                                             $    713    $ 20,354
                                                       ========    ========
Per share data:
  Basic Earnings Per Share                             $   0.01    $   0.22
                                                       ========    ========

                                                       ========    ========
  Diluted Earnings Per Share                           $   0.01    $   0.22
                                                       ========    ========

See notes to condensed consolidated financial statements.






                                        5


<PAGE>


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

<TABLE>
<CAPTION>
                                                                      For the six months ended September 30,
                                                                        2000                         1999
                                                               ----------------------------------------------
<S>                                                                     <C>                          <C>
Net Income                                                              $17,612                      $17,961

Other comprehensive income,
  Net of tax
             Unrealized holding gain (loss) arising
             during the period                                          $24,089                     ($12,960)
                                                               -----------------            -----------------

Comprehensive income                                                    $41,701                       $5,001
                                                               =================            =================
</TABLE>

See notes to condensed consolidated financial statements.







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

<TABLE>
<CAPTION>
                                                                    For the 3 months ended September 30,
                                                                     2000                         1999
                                                               ----------------------------------------------
<S>                                                                     <C>                           <C>
Net Income                                                                 $713                      $20,354

Other comprehensive income,
  Net of tax
             Unrealized holding gain (loss) arising
             during the period                                          $33,084                     ($14,636)
                                                               -----------------            -----------------

Comprehensive income                                                    $33,797                       $5,718
                                                               =================            =================
</TABLE>

See notes to condensed consolidated financial statements.



                                        6


<PAGE>



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

                                                       2000          1999
                                                    ---------     ---------
Operating Activities
  Net income                                        $  17,612     $  17,961
  Adjustments to reconcile net income to net
    cash provided by operating activities
    Depreciation                                          672           672
    Compensation expense related to employee
      stock ownership plan and incentive plan           7,712         3,002
    Net change in :
       Other liabilities                                    4           (68)
       Other assets                                    (5,951)       13,712
                                                    ---------     ---------
       Net cash provided by operating activities       20,049        35,279
                                                    ---------     ---------

Investing Activities
  Net change in interest-bearing deposits              99,000        99,000
  Net change in loans                                (212,887)     (831,776)
  Purchase of premises and equipment                                 (1,678)
  Purchase of FHLB stock                                             (8,800)
                                                    ---------     ---------
       Net cash used by investing activities         (122,687)     (734,454)
                                                    ---------     ---------

Financing Activities
  Net change in deposits                              194,227       296,319
  Payment of dividend                                  (9,289)       (9,900)
  Purchase of treasury stock                           (3,220)
  Net change in borrowed money                                      300,000
                                                    ---------     ---------
       Net cash provided by financing activities      181,718       586,419
                                                    ---------     ---------

Net Change in Cash and Cash Equivalents                79,080      (112,756)
Cash and Cash Equivalents, Beginning of Period        512,729       775,314
                                                    ---------     ---------
Cash and Cash Equivalents, End of Period            $ 591,809     $ 662,558
                                                    =========     =========

Additional Cash Flows Information
   Interest paid                                    $ 176,612     $ 157,262
   Income tax paid                                                    4,304

See notes to condensed consolidated financial statements.




                                       7


<PAGE>



     Notes to 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 September 2000 and March 2000, the results of operations
         for the six months ended September 2000 and September 1999, the results
         of operations for the three months ended September 2000 and September
         1999, comprehensive income and the cash flows for the six and three
         months ended September 2000 and September 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 six months and three
         months ended September 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.



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 increased $243,544 from March 31, 2000 to September 30, 2000
      or 3.0% for the semi-annual period. This increase was attributable
      primarily to increases in the loan portfolio, cash and cash equivalents,
      investment securities, Federal Home Loan Bank (FHLB) Stock and other
      assets



                                        8



<PAGE>


      offset by a decrease in interest bearing time deposits. Net loans
      increased $212,887, cash and cash equivalents increased $79,080,
      investment securities increased $36,498, FHLB Stock increased $8,800,
      other assets increased $5,951 and interest-bearing deposits decreased
      $99,000.

      The increase in net loans from March 31, 2000 to September 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 $99,000 interest bearing time deposit
      matured and resulted in an increase in cash and cash equivalent. The
      increase in investment securities was the result of an increase in the
      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 an increase in total deposits from March 31, 2000
      to September 30, 2000 of $194,227 or 3.7%. The increase is primarily a
      result of estate taxes collected by the bank for the Piatt County
      Collector that are deposited into a passbook savings account. Other
      liabilities increased as a result of deferred income tax liability for the
      FHLMC stock.

      Total stockholders' equity increased $32,838 from March 31, 2000 to
      September 30, 2000; the increase summarized as follows:

<TABLE>

<S>                                                                           <C>
         Stockholders' equity, March 31, 2000..............................   $ 1,586,663
         Net Income........................................................        17,612
         Increase in unrealized gain on securities available for sale......        24,089
         Dividends Paid....................................................        (9,289)
         Incentive Plan Shares Earned......................................         3,646
         Purchase of Treasury Stock........................................        (3,220)
                                                                          -----------------
         Stockholders' equity, September 30, 2000......................   $     1,619,501
                                                                          =================
</TABLE>


                              RESULTS OF OPERATIONS

      SIX MONTHS COMPARISON

      Net income was $349 less in the six months ended September 30, 2000
      compared to the same period in 1999. Net interest income was $10,183 lower
      in the six months ended September 30, 2000 compared to the same period in
      1999. Interest income was $9,429 higher, primarily due to an increase in
      the average balance in the mortgage loan portfolio offset by a lower
      average balance of deposits with financial institutions. Interest expense
      increased by $19,612 in the period ended September 30, 2000 compared to
      the period ended September 30, 1999 due to an increase in the average
      balance in interest-bearing deposits and FHLB borrowings.

      The provision for loan losses was $0 for the first six 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.

      Noninterest expense was $8,868 lower in the six months ended September 30,
      2000 compared to the same period in 1999. This was attributable to a
      decrease in employee compensation due to retirement of a long-time
      employee, the Simplified Employee Pension Plan that had been effect was
      frozen July 1, 1999, the Illinois unemployment contribution rate for the
      Building and Loan decreased, and a reduction in cost of deposit insurance.




                                        9

<PAGE>


      Income tax expense was $91 less in the six months ended September 30, 2000
      compared to the same period in 1999 due to a slight decrease in net income
      for the six months ended September 30, 2000. The effective tax rate is
      estimated to be 25.3% in 2000 compared to 25.2% in 1999.

      THREE MONTHS COMPARISON

      Net income was $19,641 less in the three months ended September 30, 2000
      compared to the same period in 1999, due to a decrease of net interest
      income and an increase in noninterest expenses related to being a public
      company.

      Net interest income was $20,254 lower in the three months ended September
      30, 2000 compared to the same period in 1999. Interest income was $9,880
      lower due to a lower average balance of deposits with financial
      institutions and a reduction of loan fee income resulting from a policy
      change in loan fee structure. In 1999 the bank discontinued the policy of
      charging points to close mortgage loans. Interest expense increased
      $10,374 in the period ended September 30, 2000 compared to the period
      ended September 30, 1999 due to higher average balances on interest
      bearing deposits and FHLB borrowings.

      Noninterest expense was $6,160 higher in the three months ended
      September 30, 2000 compared to the same period in 1999 primarily due to
      additional expenses related to employee plans and being a public company.

      Income tax expense was $6,166 less in the three months ended September
      30, 2000 compared to the same period in 1999 due to a decrease in net
      income for the three month period ended September 30, 2000.

      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 17.22% and
      15.16% at September 30, 2000 and March 31, 2000, respectively, well above
      the required minimum.

      A review of the Consolidated Statement of Cash Flows included in the
      accompanying financial statement shows that the Company's cash and cash
      equivalents ("cash") increased $79,080 from March 31, 2000 to September
      30, 2000. Cash and cash equivalent decreased $112,756 from March 31, 1999
      to September 30, 1999. During the first six months of fiscal 2000, net
      income, maturing interest-bearing deposits, and increased deposits
      primarily provided cash. During the six months of fiscal 1999, net income,
      interest-bearing deposits, increased deposits and FHLB borrowings
      primarily provided cash. Cash was primarily used in 2000 to fund mortgage
      loans and purchase FHLB stock and in 1999 to fund mortgage loans.

      As of September 30, 2000, the Bank had outstanding commitments (including
      undisbursed loan proceeds) of approximately $61,000.00. 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 September 30, 2000, total
      $1.79 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




                                       10

<PAGE>


      (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 capital risk weighted assets of at least 8.0%. At September 30,
      2000, the Bank was in compliance with applicable regulatory capital
      requirements as follows:

              Tier 1 Capital to Risk Weighted Assets               31.61%
              Tier 1 Capital to Total Assets                       15.30%
              Risk Based Capital to Risk Weighted Assets           32.48%

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 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

                On August 9, 2000 the Company held its second Annual
                Meeting of Stockholders at which the following matters were
                voted on:

                Proposal I - Election of Directors

                Nominee              For             Against         Withheld
                -------              ----            -------         --------
                Buckley             66,395            N/A             1,000
                Gaitros             60,570                            6,825
                Sochor              66,395            N/A             1,000

                There were no abstentions or broker non-votes.

                The terms of office of Directors Crandall, Flaugher,
                Heckman and York continued after the Annual Meeting.

      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




                                       11

<PAGE>


      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:  November 10, 2000          By: /s/  Maralyn F. Heckman
                                         (Authorized Signor)
                                         President (Principal Executive Officer)
                                         and Treasurer (Chief Financial Officer)