UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
[Mark One]

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities  Exchange
    Act of 1934 For the quarterly period ended September 30, 2000.
                                       OR
[ ] 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. 0-19727

                          CUMBERLAND TECHNOLOGIES, INC.
             (Exact name of registrant as specified in its charter)

    Florida                                                59-3094503
    --------------------------------------------------     ---------------------
    (State  or other  jurisdiction  of incorporation)      (I.R.S. Employer
                                                             Identification No.)

    4311 West Waters Avenue, Suite 501
             Tampa, Florida                                 33614
    --------------------------------------------------      --------------------
    (Address of principal executive office)                 (Zip code)

                                 (813) 885-2112
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not applicable
--------------------------------------------------------------------------------
              (Former name, former address and formal fiscal year,
                          if changed since last report)

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 and (2) has been subject to such filing requirements for
the past 90 days.             Yes [x]       No [ ]

               Applicable Only to Insurers Involved in Bankruptcy
                   Proceedings During the Preceding Five Years

Indicate by a check mark  whether the  registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.         Yes [x]   No [ ]

                      Applicable Only to Corporate Issuers

The  number  of shares  of the  Registrant's  common  stock,  $.001  par  value,
outstanding as of September 30, 2000 was 5,553,244 shares.

<PAGE>


                          CUMBERLAND TECHNOLOGIES, INC.

                                    FORM 10-Q

                                      INDEX

PART I   FINANCIAL INFORMATION
------   ---------------------
                                                                            Page
                                                                            ----

         Item 1.   Condensed consolidated balance sheets at
                     September 30, 2000 (unaudited) and December 31, 1999....1-2

                   Condensed unaudited consolidated statements of operations
                     for the nine months ended September 30, 2000 and
                     September 30, 1999 .......................................3

                   Condensed unaudited consolidated statements of operations
                     for the three months ended September 30, 2000 and
                     September 30, 1999 .......................................4

                   Condensed consolidated statements of stockholders' equity for
                     the nine months ended September 30, 2000 (unaudited) and
                     for the year ended December 31, 1999 .....................5

                   Condensed unaudited consolidated statements of cash flows
                     for the nine months ended September 30, 2000 and
                     September 30, 1999 .......................................6

                   Notes to condensed unaudited consolidated financial
                     statements ............................................7-13

         Item 2.   Management's Discussion and Analysis of financial
                     condition and results of operations ..................14-16

PART II  OTHER INFORMATION
-------  -----------------

         Item 1.   Legal proceedings .........................................17

         Item 2.   Changes in securities .....................................17

         Item 3.   Defaults upon senior securities ...........................17

         Item 4.   Submission of matters to a vote of security holders .......17

         Item 5.   Other information .........................................17

         Item 6.   Exhibits and Reports of Form 8-K ..........................17

                   Signatures ................................................18


<PAGE>

           UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q
                         PART I - FINANCIAL INFORMATION
                         ------------------------------

Item 1.    FINANCIAL STATEMENTS

                          CUMBERLAND TECHNOLOGIES, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                     September 30,  December 31,
                                                         2000          1999
                                                      -----------   ------------
                                                      (unaudited)
 ASSETS
 ------

Investments:
    Securities available-for-sale at fair value:
       Fixed maturities ............................   $ 7,308,674   $ 3,698,506
       Equity securities ...........................        42,338       602,194
    Fixed maturity securities held-to-maturity at
       amortized cost ..............................     1,222,981     2,722,489
    Residential mortgage loan on real estate, at
       unpaid principal ............................       939,393       940,304
    Short-term investments .........................       433,993       430,239
                                                       -----------   -----------
       Total investments ...........................     9,947,379     8,393,732

Cash and cash equivalents ..........................     1,977,845     2,000,147
Accrued investment income ..........................       115,162        66,088

Reinsurance recoverable ............................     3,260,637     2,898,422

Accounts receivable:
    Trade ..........................................     4,045,444     2,896,358
    Affiliate ......................................       438,219       404,481
Deferred tax asset .................................       304,983       304,983
Deferred policy acquisition costs ..................     2,024,923     1,601,427
Intangibles, net ...................................     1,151,469     1,266,635
Other investment ...................................       580,675       559,418
Other assets .......................................       296,486       314,859
                                                       -----------   -----------
                                                       $24,143,222   $20,706,550
                                                       ===========   ===========







            See notes to condensed consolidated financial statements.


<PAGE>


                          CUMBERLAND TECHNOLOGIES, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                    September 30,   December 31,
                                                        2000            1999
                                                    ------------   -------------
                                                    (unaudited)

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Policy liabilities and accruals:
   Loss and loss adjustment expenses .............  $  5,063,153   $  4,576,539
   Unearned premiums .............................     5,903,905      4,843,606
Ceded reinsurance payable ........................       908,611        367,906
Accounts payable and other liabilities ...........     2,365,710      1,909,578
Income tax payable ...............................       228,523         35,132
Long-term debt:
   Nonaffiliate ..................................     1,116,523      1,281,429
   Affiliate .....................................     1,000,000      1,000,000
                                                    ------------   -------------
   Total liabilities .............................    16,586,425     14,014,190
Stockholders' equity:
   Common stock, $.001 par value; 10,000,000
     shares authorized; 5,553,244 and 5,497,244
     shares issued and outstanding, respectively .         5,872          5,816
   Capital in excess of par value ................     7,264,860      7,257,916
   Accumulated other comprehensive (loss) ........      (185,193)       (40,897)
   Retained earnings (deficit) ...................       734,977       (266,756)
                                                    -------------  -------------
                                                       7,820,516      6,956,079
   Less treasury stock, at cost, 318,612  shares .      (263,719)      (263,719)
                                                    -------------  -------------
   Total stockholders' equity ....................     7,556,797      6,692,360
                                                    -------------  -------------
                                                    $ 24,143,222   $ 20,706,550
                                                    =============  =============



           See notes to condensed consolidated financial statements.



<PAGE>

                          CUMBERLAND TECHNOLOGIES, INC.

            CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS


                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                      2000            1999
                                                 ------------      -------------

REVENUES:
---------

     Direct premiums earned ....................   $  9,122,315    $  7,359,043
     Reinsurance premiums assumed ..............      1,836,007       1,545,840
     Less reinsurance ceded ....................     (2,395,335)     (1,835,414)
                                                   ------------    ------------
     Net premium income ........................      8,562,987       7,069,469

     Net investment income .....................        429,777         251,783
     Net realized investment gains .............        270,067          15,918

     Other income ..............................      1,449,951       1,073,104
                                                   ------------    ------------
        Total revenues .........................     10,712,782       8,410,274

BENEFITS AND EXPENSES:

     Losses and loss adjustment expenses .......      2,391,073       1,672,561
     Amortization of deferred policy
        acquisition costs ......................      2,719,007       2,256,260
     Operating expenses ........................      3,919,119       3,321,865
     Interest expense ..........................        176,850         160,936
                                                   ------------    ------------
        Total expenses .........................      9,206,049       7,411,622
                                                   ------------    ------------

Income before income tax provision .............      1,506,733         998,652
Income tax provision ...........................        505,000         351,100
                                                   ------------    ------------
Net income .....................................   $  1,001,733    $    647,552
                                                   ============    ============
Weighted average number of shares - basic ......      5,520,888       5,468,239
                                                   ============    ============
Net income per share - basic ...................   $        .18    $        .12
                                                   ============    ============

Weighted average number of shares - diluted ....      5,602,688              --
                                                   ============    ============
Net income per share - diluted .................   $        .18    $         --
                                                   ============    ============





           See notes to condensed consolidated financial statements.

<PAGE>

                          CUMBERLAND TECHNOLOGIES, INC.

            CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS


                                               Three Months Ended September 30,
                                               ---------------------------------
                                                      2000              1999
                                               ----------------    -------------

REVENUES:
---------

     Direct premiums earned ....................    $ 3,304,403     $ 2,684,616
     Reinsurance premiums assumed ..............        621,951         563,098
     Less reinsurance ceded ....................       (871,732)       (607,502)
                                                    -----------     -----------
     Net premium income ........................      3,054,622       2,640,212

     Net investment income .....................        157,843          75,766
     Net realized investment gains .............           --             5,973

     Other income ..............................        545,921         367,467
                                                    -----------     -----------
        Total revenues .........................      3,758,386       3,089,418

BENEFITS AND EXPENSES:

     Losses and loss adjustment expenses .......        984,854         614,482
     Amortization of deferred policy
        acquisition costs ......................      1,029,749         669,423
     Operating expenses ........................      1,366,307       1,236,202
     Interest expense ..........................         73,239          53,372
                                                    -----------     -----------
        Total expenses .........................      3,454,149       2,573,479
                                                    -----------     -----------

Income before income tax provision .............        304,237         515,939
Income tax provision ...........................        102,909         231,100
                                                    -----------     -----------
Net income .....................................    $   201,328     $   284,839
                                                    ===========     ===========
Weighted average number of shares - basic ......      5,553,244       5,468,239
                                                    ===========     ===========
Net income per share - basic ...................    $       .04     $       .05
                                                    ===========     ===========

Weighted average number of shares - diluted ....      5,635,044            --
                                                    ===========     ===========
Net income per share - diluted .................    $       .04     $      --
                                                    ===========     ===========



           See notes to condensed consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

                          CUMBERLAND TECHNOLOGIES, INC.

            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



                                                                  Capital in  Other           Retained                   Total
                                                 Common Shares    Excess of   Comprehensive   Earnings       Treasury  Stockholders'
                                              Stock     Amount    Par Value   Income (Loss)   (Deficit)      Stock       Equity
                                             ---------------------------------------------------------------------------------------
<S>                                          <C>        <C>       <C>         <C>             <C>            <C>        <C>

Balance at January 1, 1999 ............      5,763,070  $5,763    $7,212,941  $ (190,929)     $(1,414,826)   $(263,719) $ 5,349,230

   Exercise of 52,286 shares
     under 1991 stock option
     plan .............................         52,286      53        44,975                                                 45,028

   Net increase in unrealized
     appreciation of
     available-for-sale securities ....                                         150,032                                     150,032

   Net income .........................                                                        1,148,070                  1,148,070
                                                                                                                       -------------
   Comprehensive income ...............                                                                                   1,298,102

                                             ---------  ------   ----------  ----------      -----------    ---------- -------------
Balance at December 31, 1999 ..........      5,815,356  $5,816   $7,257,916  $ (40,897)      $ (266,756)    $(263,719) $ 6,692,360

   Exercise of 56,000 shares
     under 1991 stock option
     plan .............................         56,000      56        6,944                                                  7,000

   Net (decrease) in unrealized
     depreciation of available-for-sale
     securities .......................                                        (144,296)                                   (144,296)

   Net income .........................                                                        1,001,733                  1,001,733
                                                                                                                         -----------
   Comprehensive income ...............                                                                                     864,437
                                             ---------  ------   ----------   ----------     -----------     ----------  -----------
Balance at September 30, 2000 .........      5,871,356  $5,872   $7,264,860   $(185,193)     $   734,977     $(263,719)  $7,556,797
                                             =========  ======   ==========   ==========     ===========     ==========  ===========

</TABLE>

           See notes to condensed consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>


                          CUMBERLAND TECHNOLOGIES, INC.

            CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                    Nine Months Ended September 30,
                                                                                               -------------------------------------
                                                                                                      2000                   1999
                                                                                               -------------            ------------
<S>                                                                                            <C>                      <C>

Cash flows from operating activities:
Net income .......................................................................             $ 1,001,733              $   647,552
Adjustments to reconcile net income to net cash
    provided by (used in)  operating activities:
         Amortization (accretion) of investment premiums
             and discounts .......................................................                 (12,367)                     234
         Policy acquisition costs amortized ......................................               2,719,007                2,256,260
         Policy acquisition costs deferred .......................................              (3,142,503)              (2,580,810)
         Depreciation and amortization ...........................................                 115,166                  147,913
         Net realized gain on sales of  investments ..............................                (270,067)                 (15,918)
(Increase) decrease in:
         Accrued investment income ...............................................                 (49,074)                    (247)
         Reinsurance recoverable .................................................                (362,215)              (1,397,409)
         Accounts receivable .....................................................              (1,149,086)              (1,075,852)
         Income tax recoverable ..................................................                    --                    351,100
         Other assets ............................................................                  18,373                 (108,367)
Decrease (increase) in:
         Policy liabilities and accruals .........................................               2,003,045                1,318,641
         Ceded reinsurance payable ...............................................                 540,705                 (502,977)
         Income tax payable ......................................................                 193,391                  653,299
                                                                                               -----------              -----------
Net cash provided by (used in) operating activities ..............................               1,606,108                 (306,581)
Cash flows from investing activities:
Securities available-for-sale:
         Purchases - fixed maturities ............................................              (6,595,488)                (358,700)
         Sales - fixed maturities ................................................               3,098,991                1,086,262
         Proceeds from investment settlement .....................................                 228,875                     --
         Sales - equities ........................................................                 354,956                  155,311
Securities held-to-maturity:
         Maturities ..............................................................               1,500,000                     --
Repayments on mortgage loan ......................................................                     911                     --
Purchase - short-term assets .....................................................                  (3,754)                  (6,246)
(Increase) decrease in other investment ..........................................                 (21,257)                     846
                                                                                               -----------              -----------
Net cash provided by (used in) investing activities ..............................              (1,436,766)                 877,473
Cash flows from financing activities:
Payments on long-term debt .......................................................                (164,906)                 (36,452)
Stock options exercised ..........................................................                   7,000                     --
Net advances from affiliates .....................................................                 (33,738)                 (85,901)
                                                                                               -----------              -----------
Net cash (used in) financing activities ..........................................                (191,644)                (122,353)
                                                                                               -----------              -----------
Increase (decrease) in cash and cash equivalents .................................                 (22,302)                 448,538
Cash and cash equivalents, beginning of period ...................................               2,000,147                4,202,351
                                                                                               -----------              -----------
Cash and cash equivalents, end of period .........................................             $ 1,977,845              $ 4,650,890
                                                                                               ===========              ===========

Supplemental cash flows disclosure:
Cash paid for interest ...........................................................             $    78,317              $    85,936
                                                                                               ===========              ===========

Cash paid for income taxes .......................................................             $   304,168              $      --
                                                                                               ===========              ===========
</TABLE>


           See notes to condensed consolidated financial statements.

<PAGE>

                          CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000

1.       Ownership and Organization
--       --------------------------

         Cumberland Technologies, Inc. ("CTI" or the "Company") f/k/a Cumberland
         Holdings, Inc., a Florida corporation, was formed on November 18, 1991,
         to be a Holding company and a wholly-owned  subsidiary of Kimmins Corp.
         ("KC").   Effective   October  1,  1992,  KC  contributed  all  of  the
         outstanding common stock of two of its other wholly-owned subsidiaries,
         Cumberland  Casualty & Surety Company  ("CCS") and Surety  Specialists,
         Inc.  ("SSI") to CTI. KC then  distributed  to its  stockholders  CTI's
         common  stock on the basis of one share of common stock of CTI for each
         five  shares of KC common  stock and Class B common  stock  owned  (the
         Distribution).  Effective January 30, 1997,  Cumberland Holdings,  Inc.
         changed its name to  Cumberland  Technologies,  Inc.  CTI  conducts its
         business through five subsidiaries.  CCS, a Florida  corporation formed
         in May 1988, provides underwriting for specialty surety and performance
         and payment bonds for contractors. The surety services provided include
         direct  surety  and to a lesser  extent,  assumed  reinsurance.  SSI, a
         Florida  corporation  formed in August 1988,  is a general lines agency
         which operates as an independent agent.  Surety Group ("SG"), a Georgia
         corporation,  and Associates  Acquisition Corp. d/b/a Surety Associates
         ("SA"),  a South Carolina  corporation,  purchased in February and July
         1995,  respectively,  are  general  lines  agencies  which  operate  as
         independent agencies. Official Notary Service of Texas, Inc. ("ONS"), a
         Texas corporation formed in February 1994, is an inactive  corporation.
         Qualex Consulting Group, Inc. ("Qualex"),  a Florida corporation formed
         in November 1994, provides claim and contracting  consulting  services.
         CTI and its subsidiaries are referred to herein as the "Company."

2.       Summary of Significant Accounting Policies
--       ------------------------------------------

         Principles of Consolidation

         The consolidated  financial  statements include the accounts of CTI and
         its wholly-owned  subsidiaries.  All material intercompany transactions
         and balances have been eliminated in consolidation.

         Basis of Presentation

         The accompanying  consolidated  financial statements have been prepared
         in accordance with generally accepted  accounting  principles which, as
         to the subsidiary  insurance company,  differ from statutory accounting
         practices prescribed or permitted by regulatory authorities.

         Reclassifications

         Certain amounts in the 1999 financial statements have been reclassified
         to conform to the 2000 financial statement presentation.


<PAGE>

                          CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


2.       Summary of Significant Accounting Policies (continued)
--       ------------------------------------------------------

         Use of Estimates

         The preparation of consolidated financial statements in conformity with
         generally accepted  accounting  principles  requires management to make
         estimates  and  assumptions  that  affect the  amounts  reported in the
         consolidated   financial   statements  and  accompanying   notes.  Such
         estimates  and   assumptions   could  change  in  the  future  as  more
         information  becomes known which would affect the amounts  reported and
         disclosed herein.

3.       Earnings Per Share
--       ------------------

         Earnings  per share for the nine months  ended  September  30, 2000 and
         1999 is based on the  weighted  average  number of shares  outstanding,
         adjusted for the dilutive  effect of stock options.  Earnings per share
         at  September  30, 2000 was the same on both a basic and fully  diluted
         basis.

4.       Investments
--       -----------

         Unrealized  appreciation  (depreciation):  The components of unrealized
         depreciation  of investments  recorded in  stockholders'  equity was as
         follows:

                                         Nine Months Ended   Twelve Months Ended
                                        September 30, 2000     December 31, 1999
                                        ------------------  --------------------
         Fixed maturities ..............         $  28,994            $ (72,803)
         Equities ......................          (214,187)              31,906
                                                  ---------           ---------
         Total unrealized
          (depreciation) ...............         $(185,193)          $ (40,897)
                                                  =========           =========

5.       Income Taxes
--       ------------

         The Company's provision for income taxes for the three months and nine
         months ended September 30, 2000 has been calculated using an effective
         rate of approximately 34%.

6.       Term Note Due Affiliate
--       -----------------------

         In  1988,  CCS  issued  a  surplus  debenture  to KC in  exchange  for
         $3,000,000 which bears interest at 10 percent per annum.  Interest and
         principal  payments are subject to approval by the Florida  Department
         of Insurance. On April 1, 1997, CTI forgave $375,000 of its $3,000,000
         surplus  debenture  due to CCS.  As a result,  CCS  increased  paid in
         capital by  $375,000.  On June 30, 1999,  CTI forgave  $576,266 of its
         $2,625,000  surplus debenture due from CCS. As a result, CCS increased
         paid-in  capital to  $1,000,000.  As of December 31, 1999, no payments
         could be made under the terms of the debenture.


<PAGE>



                          CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


7.       Notes Payable
--       -------------

         Affiliate

         Effective November 10, 1998, CTI entered into a $1,000,000  convertible
         term note agreement with TransCor Waste Services, Inc., a subsidiary of
         KC. The note is due  November  10, 2001 and bears  interest at 10%. The
         lender  may  convert  the  principal  amount  of the note or a  portion
         thereof  into a  common  stock  at  $3.00  per  share  subsequent  to a
         six-month anniversary and prior to the maturity date.

         Nonaffiliate

         In connection with the acquisition of certain agencies during 1995, the
         Company  entered  into two notes  payable with the  agencies'  previous
         owners.  One note is due March 1, 2002 and bears interest at 8% through
         February 28, 2001 and 10%  thereafter.  Principal  payments of $150,000
         are due annually beginning March 1, 2000. The other note payable is due
         June 30, 2010 and bears interest at 9%. Principal and interest payments
         of $11,104 are due monthly beginning April 1, 1997.

8.       Intangibles
--       -----------

         Intangible  assets  are  stated  at  cost  and  principally   represent
         purchased customer accounts, noncompete agreements,  purchased contract
         agreements, and the excess of costs over the fair value of identifiable
         net  assets   acquired   ("Goodwill").   Goodwill  is  amortized  on  a
         straight-line  basis over 15 years and all other intangible  assets are
         amortized on a straight-line basis over the related estimated lives and
         contract periods,  which range from 3 to 15 years.  Purchased  customer
         accounts are records and files obtained from acquired  businesses  that
         contain  information  on  insurance  policies  and the related  insured
         parties that is essential to policy renewals.

         The carrying value of Goodwill and other intangible assets are reviewed
         periodically  for  impairment.   If  this  review  indicates  that  the
         intangible  assets will not be recoverable,  as determined based on the
         undiscounted  cash  flows of the  entity  acquired  over the  remaining
         amortization  period,  the Company's carrying value of the Goodwill and
         other intangible  assets will be reduced by the estimated  shortfall of
         cash flows.


<PAGE>



                          CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


9.       Loss and Loss Adjustment Expenses
--       ---------------------------------

         The  liability for unpaid  claims  including  incurred but not reported
         losses is based on the  estimated  ultimate  cost of settling the claim
         (including  the effects of  inflation  and other  societal and economic
         factors),  using past  experience  adjusted for current  trends and any
         other factors that would modify past  experience.  These  estimates are
         subject  to the  effects  of trends  in loss  severity  and  frequency.
         Although  considerable  variability  is  inherent  in  such  estimates,
         management  believes  that the  reserves  for loss and loss  adjustment
         expenses are  adequate.  The  estimates  are  continually  reviewed and
         adjusted as necessary as experience develops or new information becomes
         known. Such adjustments are included in current operations. A liability
         for all costs expected to be incurred in connection with the settlement
         of unpaid claims (loss adjustment  expense) is accrued when the related
         liability for unpaid loss is accrued.  Loss adjustment expenses include
         costs  associated  directly with specific claims paid or in the process
         of  settlement,  such as legal and  adjusters'  fees.  Loss  adjustment
         expenses  also  include  other  costs that  cannot be  associated  with
         specific  claims but are  related to claims  paid or in the  process of
         settlement, such as internal costs of the claims function.

         The  Company  does  not  discount  its  reserves  for  losses  and loss
         adjustment  expenses.  The Company writes  primarily  surety  contracts
         which are of short duration.

         The Company does not consider  investment  income in  determining  if a
         premium deficiency relating to short duration contracts exists.

10.      Unearned Premiums
---      -----------------

         Unearned  premiums are calculated  using the monthly pro rata basis for
         miscellaneous   bonds  and  contract  completion  date  or  anticipated
         contract completion date for contract bonds.

11.      Reinsurance
---      -----------

         The Company assumes and cedes  reinsurance and  participates in various
         pools.  The  financial   statements  reflect  premiums,   benefits  and
         settlement  expenses,  and deferred policy  acquisition  costs,  net of
         reinsurance ceded. Amounts recoverable from reinsurers are estimated in
         a manner  consistent with the future policy benefit and claim liability
         associated with the reinsured policies.

         Accounts recoverable from reinsurers for unpaid losses are presented as
         an asset in the accompanying consolidated financial statements.


<PAGE>




                          CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


12.      Statutory Accounting Practices
---      ------------------------------

         CCS  is  domiciled   in  Florida  and  prepares  its   statutory-basis
         consolidated   financial  statements  in  accordance  with  accounting
         practices prescribed or permitted by the Florida Insurance Department.
         "Prescribed"   statutory  accounting  practices  include  state  laws,
         regulations, and general administrative rules, as well as a variety of
         publications  of the National  Association of Insurance  Commissioners
         ("NAIC").  "Permitted"  statutory  accounting  practices encompass all
         accounting  practices  that are not  prescribed;  such  practices  may
         differ from state to state,  may differ from company to company within
         a state,  and may  change in the  future.  On a  statutory  accounting
         basis, CCS's underwriting  operations  reported income net of taxes of
         $259,424 and $675,975 for the nine months ended September 30, 2000 and
         December  31, 1999,  respectively.  Statutory  surplus  (shareholders'
         equity)  of these  operations  was  $5,128,641  and  $5,106,241  as of
         September 30, 2000 and December 31, 1999, respectively.

13.      Comprehensive Income
---      --------------------

         The Company  adopted  the  provisions  of the SFAS No. 130,  "Reporting
         Comprehensive Income," in 1999.  Comprehensive income is defined as any
         change in equity from  transactions  and other events  originating from
         nonowner sources.  In the Company's case, those changes are principally
         comprised  of our  reported  net income and  changes in the  unrealized
         appreciation  and  depreciation  of  the  Company's  available-for-sale
         securities.   SFAS  No.  130  requires  that  the  Company  report  all
         components of comprehensive income. The following summaries present the
         components of our comprehensive  income, other than net income, for the
         nine  months  ended   September   30,  2000  and  September  30,  1999,
         respectively.

                                                   Consolidated Statements of
                                                      Comprehensive Income
                                                 -------------------------------
                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                        2000            1999
                                                 --------------     ------------
        Net income ..............................   $ 1,001,733     $   647,552
        Other comprehensive income:
         Unrealized depreciation of available-
          for-sale securities arising during
          period ................................      (144,296)       (186,710)
         Less: reclassification adjustment for
               gains included in net income .....         7,000            --
                                                    -----------     -----------
        Comprehensive income ....................   $   864,437     $   460,842
                                                    ===========     ===========


<PAGE>

                         CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


14.      Recently Issued Authoritative Guidance
---      --------------------------------------

         In December 1999, the Securities and Exchange Commission ("SEC") issued
         Staff  Accounting  Bulletin  101,  "Revenue  Recognition  in  Financial
         Statements" ("SAB 101"). SAB 101, as amended, provides guidance related
         to revenue  recognition issues based on  interpretations  and practices
         followed by the SEC. Management has determined that the adoption of SAB
         101 did not have a material impact on its September 30, 2000, condensed
         consolidated financial statements.

         In June 1998, the Financial Accounting Standards Board ("FASB") issued,
         SFAS  133,   "Accounting   for  Derivative   Instruments   and  Hedging
         Activities",  which will be effective for the Company on April 1, 2001.
         SFAS 133 establishes  accounting and reporting standards for derivative
         instruments  embedded in other contracts,  and for hedging  activities.
         SFAS 133 as amended by SFAS 137 and 138, requires,  among other things,
         that all derivatives be recognized in the  consolidated  balance sheets
         as  either  assets or  liabilities  and  measured  at fair  value.  The
         corresponding derivative gains and losses should be reported based upon
         the hedge relationship,  if such a relationship  exits.  Changes in the
         fair value of derivatives  that are not designated as hedges or that do
         not meet the hedge accounting  criteria in SFAS 133, are required to be
         reported in income.  The Company is in the process of  quantifying  the
         impact of SFAS 133 on its consolidated financial statements.

         In March 2000, the FASB issued FASB  Interpretation No. 44 ("FIN 44"),
         "Accounting for Certain  Transactions  Involving Stock  Compensation".
         FIN 44 clarifies the  application  of APB Opinion No. 25 regarding (a)
         the  definition  of employee  for purposes of applying APB Opinion No.
         25, (b) the  criteria  for  determining  whether a stock  option  plan
         qualifies as a noncompensatory plan, (c) the accounting consequence of
         various  modifications to the terms of a previously fixed stock option
         or award, and (d) the accounting for an exchange of stock compensation
         awards in a business  combination.  FIN 44 is effective  July 1, 2000,
         but certain  conclusions cover specific events that occur after either
         December 15, 1998, or January 12, 2000.  Management  believes that the
         adoption  of FIN 44 will not have a material  effect on the  financial
         position or results of operations of the Company.

<PAGE>


                         CUMBERLAND TECHNOLOGIES, INC.

         NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


Forward-looking Statement Disclosure
------------------------------------

         All statements,  other than statements of historical facts, included or
incorporated by reference in this Form 10-Q which address activities,  events or
developments  which the Company expects or anticipates  will or may occur in the
future,  including  statements  regarding  the Company's  competitive  position,
changes  in  business   strategy  or  plans,   the  availability  and  price  of
reinsurance,  the Company's ability to pass on price increases, plans to install
the  Bond-Pro(R)  program  in  independent  insurance  agencies,  the  impact of
insurance laws and regulation,  the  availability of financing,  reliance on-key
management  personnel,  ability to manage  growth,  the  Company's  expectations
regarding the adequacy of current  financing  arrangements,  product  demand and
market  growth,  and other  statements  regarding  future plans and  strategies,
anticipated events or trends similar expressions concerning matters that are not
historical facts are forward-looking  statements.  These statements are based on
certain  assumptions and analysis made by the Company in light of its experience
and its perception of historical trends,  current conditions and expected future
developments   as  well  as  factors  it  believes   are   appropriate   in  the
circumstances.  However,  whether actual results and  developments  will conform
with the Company's  expectations and predictions is subject to a number of risks
and uncertainties  which could cause actual results to differ  significantly and
materially  from past results and from the  Company's  expectations.  All of the
forward-looking  statements  made in this  Form  10-Q  are  qualified  by  these
cautionary  statements  and there can be no assurance that the actual results or
development   anticipated   by  the  Company   will  be  realized  or,  even  if
substantially  realized  that  they will have the  expected  consequences  to or
effects on the Company or its business or operations.


<PAGE>


Item 2.             MANAGEMENT'S  DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                         LIQUIDITY AND CAPITAL RESOURCES
                        -------------------------------


         The  capacity  of  a  surety   company  to  underwrite   insurance  and
reinsurance is based on maintaining  liquidity and capital resources  sufficient
to pay claims and expenses as they become due. Based on standards established by
the National  Association of Insurance  Commissioners  (NAIC) and promulgated by
the Florida  Department  of  Insurance,  the Company is  permitted  to write net
premiums  up to an  amount  equal to  three  times  its  statutory  surplus,  or
approximately  $15,400,000 at December 31, 2000.  Statutory guidelines impose an
additional  limitation on increasing net written premiums to no more than 33% of
prior year's net written  premiums.  Under these  guidelines,  the Company could
increase net written premiums by approximately $3,400,000 in the year 2000.

         At  September  30,  2000,  $24,143,222  of the  Company's  total assets
calculated based on generally accepted  accounting  principles were comprised as
follows:  50  percent  in cash and  investments  (including  accrued  investment
income), 32 percent in receivables and reinsurance  recoverables,  13 percent in
intangibles and deferred policy acquisition costs and 5 percent in other assets.

         The Company follows investment  guidelines that are intended to provide
an acceptable  return on investment while  maintaining  sufficient  liquidity to
meet its obligations.

         Net cash provided by (used in) operating  activities was $1,606,108 and
($306,581) for the nine months ended September 30, 2000 and 1999,  respectively.
Net cash provided by operating  activities is attributed to the combined  change
in  receivables,  policy  acquisition  costs and payables which is offset by net
income after taxes.

         Net cash (used in) provided by investing  activities  was  ($1,436,766)
and  $877,473  for  the  nine  months  ended   September  30,  2000,  and  1999,
respectively. Investing activities consist of purchases, sales and maturities of
investments.

         Net cash used in financing activities was $191,644 and $122,353 for the
nine months ended  September 30, 2000 and 1999,  respectively.  Net cash used in
the nine months ended September 30, 2000 is primarily  attributed to payments on
long-term  debt,  while net cash used  through  September  30, 1999 is primarily
attributed to cash advances to affiliates.

         As of September 30, 2000 the Company had sufficient  capital  resources
to fund foreseeable future requirements.


<PAGE>


Item 2.             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                              RESULTS OF OPERATIONS
                              ---------------------

           COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
           -----------------------------------------------------------


         During the nine months ended  September  30, 2000,  net premium  income
totaled  $8,562,987  representing  a net increase of 21 percent from that of the
same period in 1999  ($7,069,469).  The increase is  attributed to the marketing
direction  of the  Company,  which is to  penetrate  the small to medium  surety
direct  markets.  During the first nine  months of 2000 as  compared to the same
period in 1999,  direct  premiums earned  increased  $1,763,272  (24%);  assumed
premiums  increased  $290,167 (19%) and ceded premiums increased $559,921 (31%).
Ceded premiums  increase as the volume of direct and assumed premiums  increased
based on their relationship under the Company's reinsurance treaties.

         Net investment  income for the third quarter of 2000 as compared to the
same period in 1999  increased  by $177,994 or 71 percent.  The  increase in net
investment  income is attributed to a  reallocation  of  investments  from money
market funds in 2000 to the bond portfolio.  Net realized gains during 2000 were
$254,149  higher  than  realized  gains  for the same  period  of 1999.  The net
realized gain at September 30, 2000 is a result of the disposal of 27,000 shares
of common  stock that had been  written  down to a lower market value in a prior
period.  Other income increased by $376,847 during the first nine months of 2000
when compared to 1999.  The increase is  attributable  to  subsidiary  company's
earnings.

         During the nine months ended September 30, 2000 and 1999, loss and loss
adjustment  expenses  increased to  $2,391,073  from  $1,672,561,  respectively.
Incurred  losses  represent  the net reserve  increase  after  deduction of paid
claims and  fluctuates  based on  premiums  written and earned as well as claims
incurred and paid.  The increase of $718,512 is  attributable  to higher  claims
cost and reserve strengthening during the year 2000.

         During the nine months ended September 30, 2000 and 1999,  amortization
of deferred policy  acquisition  costs increased to $2,719,007 from  $2,256,260,
respectively.  The amortization of deferred policy acquisition costs increase is
attributed to the increased  commission  expense  associated with  miscellaneous
premiums  written  and  general   commission   expenses   attributed  to  agency
subsidiaries.

         Operating  expenses  increased  by  $597,254 or 18% for the nine months
ended  September 30, 2000 when compared to the same period in 1999. The increase
is attributed to salary,  consulting  fees and other  expenses  associated  with
growth.

         Interest  expense is  attributed  to the  interest on notes  payable to
affiliates.

         The increase in income taxes for the year 2000, as compared to the same
period in 1999, is attributed to the increase in earnings.



<PAGE>



Item 2.              MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                              RESULTS OF OPERATIONS
                              ---------------------

          COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
          ------------------------------------------------------------

         During the three months ended  September 30, 2000,  net premium  income
totaled $3,054,621  representing an increase of 16 percent from that of the same
period in 1999  ($2,640,212).  During the three months ending September 30, 2000
as compared to the same period during 1999, direct premiums  increased  $619,787
(23%);  assumed premiums  decreased  $58,853 (10%) and ceded premiums  increased
$264,230  (43%).  Ceded  premiums  increase  as the  volume of  direct  premiums
increase based on their relationship under the Company's reinsurance treaties.

         Net investment income for the three months ending September 30, 2000 as
compared to the same period during 1999 increased  $82,077 (108%).  The increase
is attributed to the increased  volume of investments in the bond market.  Other
income  increased for the three months ended September 30, 2000 by $178,454 when
compared  to the same period in 1999 and is directly  attributed  to  subsidiary
earnings.

         During the three months  ended  September  30, 2000 and 1999,  loss and
loss  adjustment  expenses  increased to $984,854 from  $614,482,  respectively.
Incurred  losses  represent  the net reserve  increase  after  deduction of paid
claims and  fluctuates  based on  premiums  written and earned as well as claims
incurred and paid.  The increase in the third  quarter is  attributed to reserve
strengthening.

         During the three months ended  September 30, 2000, the  amortization of
deferred  policy  acquisition  costs increase is consistent with the increase in
premiums written and earned.

         Operating  expenses  increased  by $130,105 or 11% for the three months
ended  September 30, 2000 when compared to the three months ended  September 30,
1999.  The  increase  is  attributed  to  company  growth and  expansion  and is
primarily related to salary and travel expenses.

         The increase in income tax  expenses is  attributed  to increased  gain
from operations.

<PAGE>

          PART II - OTHER INFORMATION
          ---------------------------


Item 1.   Legal proceedings
-------   -----------------

          None

Item 2.   Changed in securities
-------   ---------------------

          None

Item 3.   Defaults upon senior securities
-------   -------------------------------

          None

Item 4.   Submission of matters to a vote of security holders
-------   ---------------------------------------------------


          Cumberland Technologies, Inc. Annual Shareholders' Meeting was held on
          October 5, 2000.  The three  directors  nominated by  management  were
          named in proxies  for the  meeting  which were  solicited  pursuant to
          Regulation  14A of the Securities  Exchange Act of 1934.  There was no
          solicitation  in opposition to  management's  nominees.  The directors
          were elected by the following votes:

                                                In Favor    Withheld   Not Voted
                                                --------    --------   ---------

          Francis M. Williams                   5,662,378    1,460       207,518
          Andrew J. Cohen ................      5,662,378    1,460       207,518
          R. Donald Finn .................      5,662,113    1,725       207,518

Item 5.   Other Information
-------   -----------------

          None

Item 6.   Exhibits and reports on Form 8-K
-------   --------------------------------


          (a)     None

                  Exhibit 27 - Financial Data Schedule (for SEC use only)

          (b)     No  reports on Form 8-K were filed  during the  quarter  for
                  which this report is filed.


<PAGE>



                                   SIGNATURES
                                   ----------

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


                                           CUMBERLAND TECHNOLOGIES, INC.
                                           -------------------------------------


Date:    November 17, 2000                 By:  /s/  Joseph M. Williams
                                           -------------------------------------
                                           Joseph M. Williams
                                           President and Chief Executive Officer
                                           (Principle Executive Officer)

Date:    November 17, 2000                 By:  /s/  Carol S. Black
                                           -------------------------------------
                                           Carol S. Black
                                           Secretary and Chief Financial Officer
                                           (Principle Accounting and
                                              Financial Officer)