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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

        [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                       For the Quarter Ended June 30, 2000

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

                  For the transition period from______to_____ .

Commission File No. 0-16880

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



                            BNL FINANCIAL CORPORATION

             (Exact name of Registrant as specified in its charter)

         IOWA                                               42-1239454
(State of incorporation)                    (I.R.S. Employer Identification No.)

2100 W. William Cannon, Suite L
        Austin, Texas                                             78745
(Address of principal executive offices)                        (Zip Code)



Registrant's telephone number, including area code:  (512) 327-3065

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


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 June 30, 2000, the Registrant  had 23,311,944  shares of Common Stock,  no
par value, outstanding.

Transitional Small Business Disclosure Format  (check one)  Yes___ No__X__


<PAGE>

<TABLE>
<CAPTION>
                                                    Part I. Financial Information

Item 1.  Financial Statements

                                              BNL FINANCIAL CORPORATION AND SUBSIDIARIES
                                                      CONSOLIDATED BALANCE SHEET
<S>                                                                          <C>                              <C>


                                                                                                                   December 31,
                            ASSETS                                                June 30, 2000                       1999
                                                                                    (Unaudited)                     (Audited)
                                                                              ------------------------         ---------------------
Investments:
   Investments available for sale, at fair value                                          $11,405,157                   $10,344,845
   Equity securities, common stock                                                              1,193                         3,313
   Cash and cash equivalents                                                                1,142,966                     1,419,618
                                                                              ------------------------         ---------------------

                 Total Investments                                                         12,549,316                    11,767,776
Accrued investment income                                                                     215,983                       193,337
Furniture and equipment                                                                       410,223                       438,147
Deferred policy acquisition costs                                                             328,677                       352,186
Receivable from reinsurer                                                                      40,051                        40,051
Premiums due and unpaid                                                                       686,307                       760,941
Other assets                                                                                  370,587                       396,962
                                                                              ------------------------         ---------------------

                      TOTAL ASSETS                                                        $14,601,144                   $13,949,400
                                                                              ========================         =====================

           LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
   Liability for future policy benefits                                                    $1,392,405                    $1,488,857
   Policy claims payable                                                                    2,303,175                     2,729,175
   Premium deposit fund                                                                       110,018                       118,703
   Annuity deposits                                                                         2,836,123                     2,982,839
   Deferred annuity profits                                                                   496,417                       500,000
   Supplementary contracts without
       life contingencies                                                                      92,876                       105,120
   Advanced and unallocated premium                                                           802,074                       714,482
   Commissions payable                                                                        504,104                       410,903
   Other liabilities                                                                          433,556                       594,187
                                                                              ------------------------         ---------------------

                 Total liabilities                                                          8,970,748                     9,644,266
                                                                              ------------------------         ---------------------

SHAREHOLDERS' EQUITY:
   Common stock, $.02 stated value, 45,000,000 shares
      Authorized; 23,311,944 shares issued and outstanding                                    466,239                       466,239
   Additional paid-in capital                                                              14,308,230                    14,308,230
   Accumulated other comprehensive income (loss)                                             (737,622)                     (897,523)
   Treasury stock, at cost, 138,795 shares                                                    (64,105)                      (64,105)
   Accumulated deficit                                                                     (8,342,346)                   (9,507,707)
                                                                              ------------------------         ---------------------

           Total shareholders' equity                                                       5,630,396                     4,305,134
                                                                              ------------------------         ---------------------

           TOTAL LIABILITIES & SHAREHOLDER'S EQUITY                                       $14,601,144                   $13,949,400
                                                                              ========================         =====================

                                           (See Accompanying Notes and Accountants' Report)


</TABLE>

                                                                  2


<PAGE>

<TABLE>
<CAPTION>


                                           BNL FINANCIAL CORPORATION AND SUBSIDIARIES
                                              CONSOLIDATED STATEMENT OF INCOME AND
                                                      COMPREHENSIVE INCOME



                                                       Three Months Ended                   Six Months Ended
                                                              June 30,                             June 30,
                                                    ---------------------------        -----------------------------
                                                         2000           1999                2000            1999
                                                     (Unaudited)    (Unaudited)         (Unaudited)      (Unaudited)
                                                    -------------   -----------        -------------     -----------
<S>                                                   <C>            <C>               <C>              <C>

REVENUES:
   Premium income ..................................  $8,770,015     $7,378,050        $ 17,471,595    $ 14,116,212
   Investment income ...............................     202,685        204,753             404,741         379,806
   Realized gains on investments ...................         800          5,404               2,020           5,483
                                                    -------------   ------------        -----------     -----------
    Total income ...................................   8,973,500      7,588,207          17,878,356      14,501,501
                                                    -------------   ------------        -----------     -----------

EXPENSES:
   Policy benefits and other insurance costs .......   6,579,710      6,173,121          13,454,594      11,991,078
   Increase in liability for future policy benefits.     (58,324)        (5,433)            (96,452)        (22,267)
   Amortization of deferred policy acquisition costs       4,265          6,340              23,509          15,317
   Operating expenses ..............................   1,383,121      1,107,238           2,782,427       2,033,160
   Taxes, other than on income .....................     270,018        229,748             548,917         443,769
                                                    -------------   ------------        -----------     -----------

    Total expenses .................................   8,178,790      7,511,014          16,712,995      14,461,057
                                                    -------------   ------------        -----------     -----------

    OPERATING INCOME ...............................    $794,710       $ 77,193          $1,165,361        $ 40,444

Provision for income taxes .........................           0              0                   0               0
                                                    -------------   ------------        -----------     -----------
    NET INCOME .....................................    $794,710       $ 77,193          $1,165,361        $ 40,444
                                                    =============   ============        ===========     ===========

  Net income per share ...........................      $0.03           $0.00               $0.05           $0.00
                                                    =============   ============        ===========     ===========

    Weighted average number
    of shares ......................................   23,311,944     23,311,944         23,311,944      23,311,944
                                                    =============   ============        ===========     ===========

Other comprehensive income, net of tax:
   Unrealized gains on securities:
      Unrealized holding gains (loss) arising during
         period.....................................   ($ 35,464)     ($569,290)           $161,922       ($662,282
      Reclassification adjustment for gains
         included in net income.....................        (801)        (5,404)             (2,021)         (5,483)
                                                    -------------   ------------        -----------     -----------
Other comprehensive income (loss)...................     (36,265)      (574,694)            159,901        (667,765)
                                                    -------------   ------------        -----------     -----------

     COMPREHENSIVE INCOME (LOSS)....................    $758,445      ($497,501)         $1,325,262       ($627,321)
                                                    =============   ============        ===========     ===========

<FN>
                               (See Accompanying Notes and Accountants' Reports)

</FN>

</TABLE>

                                                                3
<PAGE>



<TABLE>
<CAPTION>

                                            BNL FINANCIAL CORPORATION AND SUBSIDIARIES
                                               CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                                     Six Months                    Six Months
                                                                                        Ended                         Ended
                                                                                      06/30/2000                    06/30/1999
Cash flows from operating activities:                                                (Unaudited)                   (Unaudited)
                                                                                 ---------------------         ---------------------
<S>                                                                              <C>                           <C>

Net income (loss)                                                                          $1,165,361                       $40,444
Adjustments to reconcile net income to net cash                                  ---------------------         ---------------------
   provided by operating activities:
 Realized loss on investments                                                                  (1,220)                       (6,137)
 Realized (gain) loss on sale of furniture and equipment                                         (800)                          654
 Depreciation                                                                                  60,937                        70,527
 Amortization of deferred acquisition
    costs and state licenses acquired                                                          25,063                        16,871
 Accretion of bond discount                                                                       887                          (180)

Change in assets and liabilities:
 (Increase)in accrued investment income                                                       (22,646)                      (16,674)
 Increase in premiums due and unpaid                                                           74,634                        26,949
 Increase (decrease) in premium deposit fund                                                   (8,685)                        9,025
 Decrease in annuity deposits and deferred profits                                           (150,299)                     (125,535)
 Decrease in liability for future policy benefits                                             (96,452)                      (22,267)
 Decrease in policy claims payable                                                           (426,000)                      (70,000)
 Increase in advanced and unallocated premium                                                  87,592                       345,458
 Increase in commissions payable                                                               93,201                       105,032
 Other net                                                                                   (135,823)                      (87,408)
                                                                                 ---------------------         ---------------------

     Total adjustments                                                                       (499,611)                      246,315
                                                                                 ---------------------         ---------------------


     Total cash provided by operating activities                                              665,750                       286,759
                                                                                 ---------------------         --------------------
Cash flows from investing activities:
  Sales of debt securities                                                                    152,058                     2,207,179
  Sales of furniture and equipment                                                                800                         4,000
  Purchase of furniture and equipment                                                         (33,015)                     (196,083)
  Purchase of fixed maturity securities                                                    (1,050,000)                   (4,250,000)
                                                                                 ---------------------         ---------------------

      Net cash provided by (used in) investing activities                                    (930,157)                   (2,234,904)
                                                                                 ---------------------         ---------------------

Cash flows from financing activities:
  Net payments on supplementary contracts                                                     (12,245)                      (12,920)
                                                                                 ---------------------         ---------------------

      Net cash (used in) financing activities                                                 (12,245)                      (12,920)
                                                                                 ---------------------         ---------------------

Net increase (decrease) in cash and cash equivalents                                         (276,652)                   (1,961,065)

Cash and cash equivalents, beginning of year                                                1,419,618                     2,426,963
                                                                                 ---------------------         ---------------------

Cash and cash equivalents, end of period                                                   $1,142,966                    $  465,898
                                                                                 =====================         =====================

                                         (See Accompanying Notes and Accountants' Report)

</TABLE>

                                                                 4

<PAGE>


================================================================================


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1.

The accompanying  Consolidated  Financial Statements  (unaudited) as of June 30,
2000 and for the quarter ended June 30, 2000 have been  reviewed by  independent
certified public accountants. The accompanying Consolidated Financial Statements
(unaudited)  for the  period  ended  June 30,  1999  have not been  reviewed  by
independent  certified  public  accountants.  In the opinion of management,  the
aforementioned financial statements contain all adjustments necessary to present
fairly the financial position as of June 30, 2000, and the results of operations
for the periods  ended June 30, 2000 and June 30,  1999,  and the cash flows for
the periods ended June 30, 2000 and June 30, 1999.

The statements have been prepared to conform to the  requirements of Form 10-QSB
and do not necessarily  include all disclosures  required by generally  accepted
accounting  principles  (GAAP).  The reader should refer to the Company's Annual
Report on Form 10-KSB for the year ended  December  31, 1999,  previously  filed
with the  Commission,  for financial  statements for the year ended December 31,
1999,  prepared in accordance  with GAAP.  Net income per share of common
stock is based on the weighted average number of outstanding common shares.

Note 2.

The  dental  claims  loss  ratio was 65.8%  during  the first six months of 2000
compared to 72.2% for the same  period in 1999.  Part of the decline in the loss
ratio is due to an approximate  $580,000 over estimation of the claims liability
at December 31, 1999,  which had the effect of reducing  claims expense in 2000.
Additionally, second quarter results may be effected by a possible overstatement
of the claims  liability at March 31, 2000.  Due to the monthly  fluctuation  in
claims  received  and the lag time in  receiving  the  claims,  this  accrual is
difficult to estimate.

Note 3.

The  Company,  BNL Equity  Corporation  and several  officers in the Company are
defendants in a pending class action lawsuit alleging  violation of the Arkansas
Securities  Act.  Subsequent  to year-end the Arkansas  Supreme  Court  affirmed
certification  of the class.  The Company is appealing that ruling to the United
States Supreme Court. The Company expects to obtain a favorable  judgment in the
case and believes the action is frivolous and that  substantial  evidence exists
which directly  refutes the allegations.  However,  the ultimate outcome of this
litigation is unknown at the present time.  Accordingly,  no provisions  for any
liability  that might  result have been made in the  financial  statements.  The
Company has  expended a  substantial  amount to date in legal  expenses.  Future
costs are not estimable at this time. In the opinion of management, the existing
litigation is without merit and the Company  intends to seek  sanctions  against
appropriate parties to the extent permitted by law.

                                      -5-
<PAGE>






                         INDEPENDENT ACCOUNTANTS' REPORT

To The Board of Directors
BNL Financial Corporation

We have reviewed the  accompanying  Consolidated  Balance Sheet of BNL Financial
Corporation and  Subsidiaries  as of June 30, 2000 and the related  Consolidated
Statements of Income and Comprehensive Income and Cash Flows for the three-month
and six-month  period ended June 30, 2000.  These  financial  statements are the
responsibility of the Corporation's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to such consolidated  financial  statements for them to be in conformity
with generally accepted accounting principles.

We have  previously  audited,  in accordance  with generally  accepted  auditing
standards,  the  Consolidated  Balance  Sheet of BNL Financial  Corporation  and
Subsidiaries as of December 31, 1999 and the related Consolidated  Statements of
Income and Comprehensive  Income,  Stockholders'  Equity, and Cash Flows for the
year then ended (not  presented  herein);  and in our report dated  February 12,
2000,  we  expressed  an  unqualified  opinion on those  consolidated  financial
statements.  In our  opinion,  the  information  set  forth in the  accompanying
Consolidated  Balance  Sheet as of December  31, 1999 is fairly  stated,  in all
material respects,  in relation to the Consolidated  Balance Sheet from which it
has been derived.

Oklahoma City, Oklahoma                                SMITH, CARNEY & CO., p.c.
August 9, 2000




                                      -6-
<PAGE>

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

Liquidity and Capital Resources

At June 30, 2000,  the Company had liquid assets of  $1,142,966  in cash,  money
market savings accounts and short-term certificates of deposit, all of which can
readily be converted to cash.

The major  components of operating cash flows are premium,  annuity deposits and
investment income. In the first six months of 2000, BNLAC collected  $17,784,992
of premiums and annuity deposits (gross before  reinsurance) and the Company had
consolidated investment income of $404,741.

The  Company's  investments  are  primarily in U.S.  Government  and  Government
Agencies and other  investment  grade bonds which have been marked to market and
classified  as available  for sale.  The Company  does not hedge its  investment
income through the use of derivatives.

The  Company's  insurance  operations  are  conducted  through its wholly  owned
subsidiary,  Brokers National Life Assurance Company (BNLAC).  At June 30, 2000,
BNLAC had  statutory  capital  and surplus of  $4,838,733.  BNLAC is required to
maintain  minimum  levels of statutory  capital and  surplus,  which differ from
state to state,  as a condition to conducting  business in those states in which
it is  licensed.  The State of Arkansas,  which is the legal  domicile of BNLAC,
requires a minimum of $2,300,000 in capital and surplus. The highest requirement
in any state in which  BNLAC is  licensed  is  $3,000,000.  Some states in which
BNLAC is licensed have increased  these  requirements  to as much as $5,000,000;
but,  in  general,  BNLAC may  continue  to  operate  under  the  lower  minimum
requirements  in effect when it first became  licensed in the applicable  state.
Management   monitors  these  developments  to  maintain   compliance  with  the
requirements of each state.

Results of Operations

Premium  income for the first six  months of 2000 was  $17,471,595  compared  to
$14,116,212 for the same period in 1999. The increase of $3,355,383, or 24%, was
due  to an  increase  in  insurance  premiums  written  and  group  dental  rate
increases.

Net  investment  income was $404,741 for the period ended June 30, 2000 compared
to $379,806 for the same period in 1999.  The increase was  primarily  due to an
increase in the size and yield of the bond  portfolio  in the first half of 2000
compared to the same period in 1999.

Realized  gains on  investments  were $2,020 in the first  three  months of 2000
compared to $5,483 for the same period in 1999.

In the first six months of 2000,  policy benefits and other insurance costs were
$13,454,594  compared to  $11,991,078  for the same period in 1999. The increase
was due to an increase in claims and commissions  resulting from the increase in
insurance  business in force.  The dental claims loss ratio was 65.8% during the
first six months of 2000 compared to 72.2% for the same period in 1999.  Part of
the decline in the loss ratio is due to an approximate  $580,000 over estimation
of the claims  payable at December  31,  1999,  which had the effect of reducing
claims  expense in 2000. Due to the monthly  fluctuation in claims  received and
the lag time in receiving the claims, this accrual is difficult to estimate.

For the period ended June 30, 2000,  the decrease in liability for future policy
benefits was  ($96,452)  compared to ($22,267) in 1999.  The larger  decrease in
2000 was due to a decrease in life reserves from surrendered policies.

                                      -7-
<PAGE>

Amortization  of deferred policy  acquisition  costs was $23,509 and $15,317 for
the first six months of 2000 and 1999,  respectively.  Amortization  of deferred
policy  acquisition  costs  may  vary in the  future  in  relation  to new  life
insurance sales and lapses or surrenders of existing policies.

Operating  expenses  increased  to  $2,782,427  in the first six  months of 2000
compared to  $2,033,160  for the same period in 1999.  The increase in operating
expenses was primarily  due to an increase in payroll and claims  administrative
expense - which are all  attributable  to the  increased  volume of insurance in
force.

Taxes,  other than on income,  fees and assessments  were $548,917 for the first
six  months of 2000  compared  to  $443,769  for the same  period  in 1999.  The
increase  was  primarily  due to an increase in premium  taxes on the  increased
premiums collected.

The  income  from  operations  for the first six  months of 2000 was  $1,165,361
compared  to  $40,444  for the same  period in 1999.  Based on claim  experience
during the first half of 2000, the estimate of claims  liability at December 31,
1999 appears to be overstated by approximately  $580,000.  The over estimate for
this  liability has  contributed a  corresponding  increase in income during the
first half. The remaining increase in income was primarily due to an increase in
premium income and a lower dental insurance claims ratio.

Forward-Looking Statements

All statement, trend analyses and other information contained in this report and
elsewhere (such as in filings by us with the Securities and Exchange Commission,
press  releases,  presentations  by us or our  management  or  oral  statements)
relative to markets for our products and trends in our  operations  or financial
results,  as well as other  statements  including  words  such as  "anticipate,"
"believe,"   "plan,"   "estimate,"   "expect,"   "intend,"   and  other  similar
expressions,  constitute forward-looking statements under the Private Securities
Litigation  Reform Act of 1995. These forward-looking  statements are subject to
known and unknown risks,  uncertainties and other factors which may cause actual
results   to  be   materially   different   from  those   contemplated   by  the
forward-looking statements. Such factors include, among other things:

o    general  economic  conditions  and  other  factors,   including  prevailing
     interest  rate  levels and stock and credit  market  performance  which may
     affect (among other  things) our ability to sell our products,  our ability
     to access capital resources and the costs associated therewith,  the market
     value of our investments and the lapse rate and profitability of policies

o    customer response to new products and marketing initiatives

o    mortality  and other  factors  which may  affect the  profitability  of our
     products

o    changes in the federal income tax laws and regulations which may affect the
     relative income tax advantages of our products

o    regulatory  changes or actions,  including  those relating to regulation of
     financial   services   affecting   (among  other  things)  bank  sales  and
     underwriting of insurance products and regulation of the sale, underwriting
     and pricing of products

o    the risk factors or  uncertainties  listed from time to time in our filings
     with the Securities and Exchange Commission

                                      -8-
<PAGE>


                          PART II -- OTHER INFORMATION

Item 1.  Legal Proceedings.

On April  30,  1996,  Myra Jo  Pearson  and Paul  Pearson  filed a class  action
complaint in the Circuit Court of Pulaski County, Arkansas (3rd Division) naming
the Company,  BNL Equity  Corporation  and several  officers of the Company,  as
defendants.  The  plaintiffs  have  alleged  that the  defendants  violated  the
Arkansas  Securities  Act in  several  respects  in  connection  with the public
offerings of securities made by United Arkansas  Corporation  ("UAC") (now known
as BNL Equity Corporation) during the period from January 1989 until May 1992.

The  Company  retained  the  firm of  Friday,  Eldredge  & Clark,  Little  Rock,
Arkansas,  to handle the defense of the action on behalf of all  defendants.  On
March 3, 1998, the plaintiffs filed a Second Amended Class Action Complaint,  in
which they dropped  certain claims,  including  allegations of common law fraud,
fraudulent concealment,  tolling of the statute of limitations,  and the request
for punitive damages.

The first issue determined in the case concerned the procedural issue of whether
the lawsuit would be certified as a class  action,  with the class of plaintiffs
including all Arkansas  purchasers who  participated in the public  offerings of
securities by UAC during the stated time frame.  A hearing was held on the issue
of whether the class would be certified on June 8, 1998,  and on August 27, 1998
the Court  entered a ruling  certifying  the class.  On  February  10,  2000 the
Arkansas Supreme Court affirmed the class  certification and held that the trial
court had subject matter  jurisdiction of this case. The Arkansas  Supreme Court
granted the Company's  motion to stay the mandate.  The Company has appealed the
class certification to the United States Supreme Court.

The  certification  of the class  does not have any  impact  on the  substantive
issues to be litigated, including whether or not any material misrepresentations
or omissions  were made in the  offerings  in  question,  whether the claims are
barred by the applicable statute of limitations, and other issues. If the effort
to overturn the action is successful, the Company's potential liability, if any,
would be limited to the named  plaintiffs,  Myra Jo  Pearson,  Paul  Pearson and
James  Stillwell.  The Company  continues to believe  strongly  that the case is
without merit.

Item 2.  Changes in Securities.

None of the  rights  of the  holders  of any of the  Company's  securities  were
materially  modified during the period covered by this report.  In addition,  no
class of  securities  of the  Company was issued or  modified  which  materially
limited or qualified any class of its registered securities.

Item 3. Defaults Upon Senior Securities.

During the period  covered by this report  there was no material  default in the
payment of any principal, interest, sinking or purchase fund installment, or any
other material default not cured within 30 days with respect to any indebtedness
of the Company.

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

The Company's  Annual Meeting of Shareholders was held on May 16, 2000 in Little
Rock, Arkansas. At the annual meeting, the following individuals were elected to
the Company's  Board of Directors.  The number of shares voted for each director
is set forth next to his name.

<TABLE>
<CAPTION>
<S>                      <C>              <C>                    <C>               <C>                         <C>

Wayne E. Ahart           (12,281,300)     Eugene A. Cernan       (12,275,498)      James A. Mullins            (12,282,500)
C. Donald Byrd           (12,282,500)     Hayden Fry             (12,272,916)      C. James McCormick          (12,275,498)
Kenneth Tobey            (12,282,500)     John Greig             (12,282,500)      Robert R. Rigler            (12,273,998)
Barry N. Shamas          (12,282,500)     Roy Keppy              (12,273,998)      Chris Schenkel              (12,275,498)
Cecil Alexander          (12,275,498)     Roy Ledbetter          (12,282,500)      L.Stanley Schoelerman       (12,282,500)
Richard Barclay          (12,275,498)     John E. Miller         (12,282,500)      Orville Sweet               (12,282,500)

</TABLE>
                                      -9-
<PAGE>

A total of 45,777  shares were voted  against all  directors.  The  shareholders
ratified the selection of Smith, Carney & Co., as the Corporation's  independent
auditors for the fiscal year 2000. 12,266,582 shares were voted in favor; 14,802
were voted against; and 46,893 shares abstained.

Item 5.  Other Information.

None

Item 6.  Exhibits  and  Reports on Form  10-QSB No exhibits or reports are being
filed with this 10-QSB.

(b) Reports on Form 8-K

No reports were filed for the period covered by this report.

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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.

                                                   BNL FINANCIAL CORPORATION
                                                         (Registrant)



Date: August 10, 2000                      /S/ Wayne E. Ahart
                                           _____________________________________
                                      By: Wayne E. Ahart, Chairman of the Board
                                           (Chief Executive Officer)


Date: August 10, 2000                      /S/ Barry N. Shamas
                                           _____________________________________
                                       By: Barry N. Shamas, Executive V.P.
                                            (Chief Financial Officer)





<PAGE>