UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

                For the quarterly period ended September 30, 1998

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

                       For the transition period from to

                       Commission File Number 000-24907

                                IBL BANCORP, INC.
        (Exact name of small business issuer as specified in its charter)

         LOUISIANA                                      72 - 1421499
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                       Identification No.)

                  23910 RAILROAD AVENUE, PLAQUEMINE, LOUISIANA
                 70764 (Address of principal executive offices)

         Issuer's telephone number, including area code: (225) 687-6337

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the issuer was required to file such  reports),  and (2) has
been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

     Shares of common stock, par value $.01 per share, outstanding as of October
30, 1998: 210,870

     Transitional Small Business  Disclosure Format (check one): 
                                   Yes [  ]  No [ X ]
<PAGE>
                                IBL Bancorp, Inc.

                                   Form 10-QSB

                        Quarter Ended September 30, 1998

                         PART I - FINANCIAL INFORMATION

Interim Financial  Information required by Rule 10-01 of Regulation S-X and Item
303 of Regulation S-B is included in this Form 10-QSB as referenced below:

Item 1 - Financial Statements

Consolidated  Statements  Of  Financial  Condition  At  September  30, 1998
(Unaudited) and December 31, 1997 .........................................   3 

Consolidated  Statements Of Income and Comprehensive Income (Unaudited) For
the Three and Nine Months Ended September 30, 1998 and September 30, 1997..   4

Consolidated  Statements  Of  Changes  in Equity  (Unaudited)  For The Nine
Months Ended September 30, 1998 and 1997 ..................................   6

Consolidated Statements Of Cash Flows (Unaudited) For the Nine Months Ended
September 30, 1998 and 1997 ...............................................   7

Notes to Consolidated Financial Statements ................................   9

Item 2 - Management's Discussion and Analysis of Financial
                   Condition and Results of Operations  ...................  11

                           PART II - OTHER INFORMATION
Item 1     - Legal Proceedings ............................................  17
Item 2     - Changes in Securities and Use of Proceeds ....................  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 on Form 8-K .............................  18

Signatures ................................................................  19
                                                       

                                     2 
<PAGE>
<TABLE>
<CAPTION>
                              IBL BANCORP, INC. AND SUBSIDIARY
                       CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                          September 30, 1998 and December 31, 1997


                                                            September 30,      December 31,
                                                                 1998              1997
                                                            ------------       ------------
                                                             (Unaudited)
<S>                                                         <C>                <C>         
ASSETS
Cash and amounts due from depository institutions ....      $    185,652       $    142,714
Interest-bearing deposits in other institutions ......         3,104,375            967,494
                                                            ------------       ------------
  Total cash .........................................         3,290,027          1,110,208
                                                            ------------       ------------
Investment securities held-to-maturity (estimated
 market value $15,085) ...............................              --               15,152
Mortgage-backed securities held-to-maturity (esti-
 mated market value $1,891,748 and $2,374,282) .......         1,887,451          2,385,948
Mortgage-backed securities available-for-sale (amor-
 tized cost $1,609,071 and $1,943,217) ...............         1,618,534          1,947,685
                                                            ------------       ------------
  Total investment securities ........................         3,505,985          4,348,785
                                                            ------------       ------------
Loans receivable .....................................        16,919,704         16,722,127
Less allowance for loan losses .......................           408,621            403,768
                                                            ------------       ------------
  Loans receivable, net ..............................        16,511,083         16,318,359
                                                            ------------       ------------
Premises and equipment, net ..........................           160,629            163,330
Federal Home Loan Bank stock, at cost ................           168,400            363,100
Accrued interest receivable ..........................            79,047             80,394
Other assets .........................................            37,295             10,822
                                                            ------------       ------------
  Total assets .......................................      $ 23,752,466       $ 22,394,998
                                                            ============       ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits .............................................      $ 20,219,635       $ 20,026,417
Advances from Federal Home Loan Bank .................              --              610,000
Advances by borrowers for taxes and insurance ........            11,459             15,004
Federal income taxes payable .........................            37,981             47,657
Other liabilities and deferrals ......................           143,371             73,960
                                                            ------------       ------------
  Total liabilities ..................................        20,412,446         20,773,038
                                                            ------------       ------------
Commitments and contingencies ........................              --                 --
                                                            ------------       ------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                              IBL BANCORP, INC. AND SUBSIDIARY
                       CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                          September 30, 1998 and December 31, 1997
                                        (continued)


                                                            September 30,      December 31,
                                                                 1998              1997
                                                            ------------       ------------
                                                             (Unaudited)
<S>                                                         <C>                <C>         
Preferred stock $.01 par, 2,000,000 shares authorized               --                 --
Common stock - $.01 par, 5,000,000 shares authorized,
 210,870 shares issued and outstanding ...............             2,109               --
Additional paid-in capital ...........................         1,744,811               --
Unearned ESOP shares .................................          (168,690)              --
Retained earnings - substantially restricted .........         1,755,544          1,619,011

Accumulated other comprehensive income................             6,246              2,949
                                                              ----------         ----------
      Total equity....................................         3,340,020          1,621,960
                                                             -----------        -----------
      Total liabilities and equity....................       $23,752,466        $22,394,998
                                                             ===========        ===========
</TABLE>
   The accompanying notes are an integral part of these financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                           IBL BANCORP, INC. AND SUBSIDIARY
                          CONSOLIDATED STATEMENTS OF INCOME
                               AND COMPREHENSIVE INCOME
                    Three Months Ended September 30, 1998 and 1997
                    Nine Months Ended September 30, 1998 and 1997



                                 --Three months ended---       ---Nine months ended---        
                                September 30, September 30,    September 30, September 30     
                                     1998         1997            1998          1997          
                                 (Unaudited)  (Unaudited)     (Unaudited)    (Unaudited)        
                                  ----------   ----------      ----------     ----------        
<S>                              <C>          <C>             <C>            <C>                
    INTEREST INCOME                                                                           
    Loans....................... $   348,942  $   352,860     $ 1,082,912    $ 1,028,674      
    Mortgage-backed securities..      52,585       64,093         171,274        189,726      
    FHLB stock and other                                                                      
     securities.................       2,639        5,542          10,911         15,275      
    Deposits....................      22,594       14,916          52,228         53,314      
                                  ----------   ----------      ----------     ----------      
      Total interest income.....     426,760      437,411       1,317,325      1,286,989      
                                  ----------   ----------      ----------     ----------      
    INTEREST EXPENSE                                                                          
    Deposits                                                                                  
     Interest-bearing demand                                                                  
      deposit accounts..........      22,026       17,661          70,171         52,512      
     Passbook savings accounts..      29,416       27,797          79,580         72,016      
     Certificate of deposit                                                                   
      accounts..................     182,504      185,395         533,492        559,444      
                                  ----------   ----------      ----------     ----------      
      Total interest on deposits     233,946      230,853         683,243        683,972      
    Advances from Federal Home                                                                
     Loan Bank..................           -            -          11,284              -      
                                  ----------   ----------      ----------     ----------      
      Total interest expense....     233,946      230,853         694,527        683,972      
                                  ----------   ----------      ----------     ----------      
      Net interest income.......     192,814      206,558         622,798        603,017      
    Provision for losses on                                                                   
     loans......................       3,000       12,000          17,960         35,000      
                                  ----------   ----------      ----------     ----------      
    NET INTEREST INCOME AFTER                                                                 
     PROVISION FOR LOSSES ON                                                                  
     LOANS......................     189,814      194,558         604,838        568,017      
                                  ----------   ----------      ----------     ----------      
    NON-INTEREST INCOME                                                                       
    Service charges on deposit                                                                
     accounts...................      23,936       17,676          64,871         53,688      
    Other.......................       3,389        8,273          10,318         23,120      
                                  ----------   ----------      ----------     ----------      
      Total non-interest income.      27,325       25,949          75,189         76,808      
                                  ----------   ----------      ----------     ----------       
</TABLE>

                                       4
<PAGE>
<TABLE>
<CAPTION>
                           IBL BANCORP, INC. AND SUBSIDIARY
                          CONSOLIDATED STATEMENTS OF INCOME
                               AND COMPREHENSIVE INCOME
                    Three Months Ended September 30, 1998 and 1997
                    Nine Months Ended September 30, 1998 and 1997
                                     (continued)


                                  --Three months ended---       ---Nine months ended---    
                                September 30, September 30,     September 30, September 30 
                                     1998         1997             1998          1997      
                                 (Unaudited)  (Unaudited)      (Unaudited)    (Unaudited)  
                                  ----------   ----------       ----------     ----------  
<S>                              <C>          <C>              <C>           <C>           
    NON-INTEREST EXPENSES                                                                  
    Salaries, other compensation                                                           
     and related benefits....... $    89,215  $    82,570      $   253,461   $   250,102   
    Occupancy expense...........       6,446        6,712           19,198        23,128   
    Furniture and equipment                                                                
     expense....................       6,167        6,191           18,275        21,849   
    Deposit insurance premium...       3,092        3,184            9,301         7,163   
    Data processing.............      15,721       12,980           55,307        40,498   
    Legal and other professional       7,200        7,200           21,600        18,905   
    Advertising.................       4,052        3,531           12,789        11,145   
    Office supplies and postage.       8,907        5,276           24,571        20,502   
    Other general and                                                                      
     administrative expenses....      13,946       11,702           43,149        41,080   
                                  ----------   ----------       ----------    ----------   
      Total non-interest                                                                   
       expenses.................     154,746      139,346          457,651       434,372   
                                  ----------   ----------       ----------    ----------   
    INCOME BEFORE PROVISION FOR                                                            
     FEDERAL INCOME TAXES.......      62,393       81,161          222,376       210,453   
                                                                                           
    PROVISION FOR FEDERAL INCOME                                                           
     TAXES......................      25,274       26,682           85,843        76,070   
                                  ----------   ----------       ----------    ----------   
    NET INCOME..................      37,119       54,479          136,533       134,383   
                                  ----------   ----------       ----------    ----------   
    Other comprehensive income, before tax:                                                
      Unrealized holding gains                                                             
       (losses) on securites                                                               
       arising during the period       9,267        7,908            4,995         6,898   
      Income tax expense (benefit)                                                         
       related to unrealized                                                               
       holding gains (losses)...       3,150        2,689            1,698         2,515   
                                  ----------   ----------       ----------    ----------   
    Other comprehensive income                                                             
     (loss), net of tax effects.       6,117        5,219            3,297         4,383   
                                  ----------   ----------       ----------    ----------   
    Comprehensive income........ $    43,236  $    59,698      $   139,830   $   138,766   
                                  ==========   ==========       ==========    ==========   
</TABLE>
The accompanying notes are an integral part of these financial statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                                    IBL BANCORP, INC. AND SUBSIDIARY
                                              CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                                             Nine Months Ended September 30, 1998 and 1997


                                                                                              Retained Accumulated
                                                                                              Earnings -     Other
                                                                   Additional    Unearned     Substan-      Compre-
                                                       Common       Paid-In       ESOP         tially       hensive      Total
                                                       Stock        Capital       Shares     Restricted     Income      Equity
                                                     ----------   ----------   ----------    ----------  ----------  ----------  
<S>                                                  <C>          <C>          <C>           <C>         <C>         <C>         
      BALANCE, DECEMBER 31, 1996, AS PREVIOUSL
       REPORTED.................................     $         -  $         -  $         -   $ 1,477,100 $    (1,333)$ 1,475,767 
      Prior period adjustment...................               -            -            -       (21,833)          -     (21,833)
                                                      ----------   ----------   ----------    ----------  ----------  ---------- 
      BALANCE, DECEMBER 31, 1996, AS RESTATED...               0            0            0     1,455,267      (1,333)  1,453,934 
                                                                                                                                 
      COMPREHENSIVE INCOME                                                                                                       
      Net income................................               -            -            -       134,383           -     134,383 
      Other comprehensive income, net of tax                                                                                     
        Unrealized losses on securities.........               -            -            -             -       4,383       4,383 
                                                      ----------   ----------   ----------    ----------  ----------  ---------- 
      BALANCE, SEPTEMBER 30, 1997 (Unaudited)...     $         0  $         0  $         0   $ 1,589,650 $     3,050 $ 1,592,700 
                                                      ==========   ==========   ==========    ==========  ==========  ========== 
                                                                                                                                 
      BALANCE, DECEMBER 31, 1997, AS PREVIOUSLY                                                                                  
       REPORTED.................................     $         -  $         -  $         -   $ 1,638,709 $     2,949 $ 1,641,658 
      Prior period adjustment...................               -            -            -       (19,698)          -     (19,698)
                                                      ----------   ----------   ----------    ----------  ----------  ---------- 
      BALANCE, DECEMBER 31, 1997, AS RESTATED...               0            0            0     1,619,011       2,949   1,621,960 
      COMPREHENSIVE INCOME                                                                                                       
      Net income...............................                -            -            -       136,533           -     136,533 
      Other comprehensive income, net of tax                                                                                     
        Unrealized losses on securities.........               -            -            -             -       3,297       3,297 
                                                      ----------   ----------   ----------    ----------  ----------  ---------- 
                                                               0            0            0     1,755,544       6,246   1,761,790 
      Proceeds from issuance of common stock....           2,109    1,744,811            -             -           -   1,746,920 
      Acquisition of unearned ESOP shares.......               -            -     (168,690)            -           -    (168,690)
                                                      ----------   ----------   ----------    ----------  ----------  ---------- 
      BALANCE, SEPTEMBER 30, 1998 (Unaudited)...     $     2,109  $ 1,744,811  $  (168,690)  $ 1,755,544 $     6,246 $ 3,340,020 
                                                      ==========   ==========   ==========    ==========  ==========  ========== 
</TABLE>
        Accompanying notes are an integral part of these financial statements.


                                        6
<PAGE>
<TABLE>
<CAPTION>
                           IBL BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                    Nine Months Ended September 30, 1998 and 1997




                                                            ---Nine months ended---
                                                           September 30,September 30
                                                               1998         1997
                                                           (Unaudited)  (Unaudited)
                                                            ----------   ----------
<S>                                                        <C>          <C>        
    CASH FLOWS FROM OPERATING ACTIVITIES
    Net income............................................ $   136,533  $   134,383
                                                            ----------   ----------
    Adjustments  to  reconcile  net  income to net cash
     provided  by  operating activities:
      Depreciation........................................      15,944       19,350
      Provision for loan losses...........................      18,000       36,000
      Provision for deferred federal income tax credit....     (26,107)      (4,481)
      Amortization of net premium on investment and
       mortgage-backed securities.........................      22,567       13,339
      Net discount charged on installment loans...........      35,379       34,043
      Net loan fees deferred (recognized).................      (1,539)         838
      Stock dividends from Federal Home Loan Bank.........     (10,300)     (15,300)
      Net decrease in interest receivable.................       1,347        4,855
      Net decrease (increase) in other assets.............     (18,444)      12,229
      Net decrease in interest payable....................        (453)     (14,252)
      Net increase (decrease) in federal income taxes
       payable............................................      (9,676)      42,377
      Net increase in other liabilities...................      85,791       28,595
                                                            ----------   ----------
        Total adjustments.................................     112,509      157,593
                                                            ----------   ----------
    Net cash provided by operating activities.............     249,042      291,976
                                                            ----------   ----------

    CASH FLOWS FROM INVESTING ACTIVITIES
    Net increase in loans receivable......................    (244,564)    (946,891)
    Purchases of securities available-for-sale............    (119,776)    (270,227)
    Principal payments received on mortgage-backed
     securities available-for-sale........................     442,431      181,336
    Purchase of securities held-to-maturity...............           -     (154,850)
    Principal payments received on mortgage-backed
     securities held-to-maturity..........................     487,421      396,685
    Maturity of U.S. government obligation................      15,152           -
    Purchases of office property and equipment............     (13,243)      (8,382)
    Proceeds from sale of Federal Home Loan Bank stock....     205,000            -
                                                            ----------   ----------
    Net cash provided by (used in) investing activities..      772,421     (802,329)
                                                            ----------   ----------

</TABLE>
                                          7
<PAGE>
<TABLE>
<CAPTION>
                           IBL BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                    Nine Months Ended September 30, 1998 and 1997
                                     (continued)




                                                            ---Nine months ended---
                                                           September 30,September 30
                                                               1998         1997
                                                           (Unaudited)  (Unaudited)
                                                            ----------   ----------
<S>                                                        <C>          <C>        
    CASH FLOWS FROM FINANCING ACTIVITIES
    Net increase (decrease) in deposit accounts........... $   193,671     (182,389)
    Net increase (decrease) in advances by borrowers for
     taxes and insurance..................................      (3,545)       1,581
    Repayment of advances from Federal Home Loan Bank.....    (610,000)           -
    Net proceeds from sale of common stock................   1,746,920            -
    Unearned ESOP shares acquired.........................    (168,690)           -
                                                            ----------   ----------
    Net cash provided by (used in) financing activities...   1,158,356     (180,808)
                                                            ----------   ----------
    NET INCREASE (DECREASE) IN CASH.......................   2,179,819     (691,161)
      Cash - beginning of period..........................   1,110,208    1,808,500
                                                            ----------   ----------
      Cash - end of period................................ $ 3,290,027  $ 1,117,339
                                                            ==========   ==========


</TABLE>

    The accompanying notes are an integral part of these financial statements.




                                          8
<PAGE>
                                IBL Bancorp, Inc.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

                               September 30, 1998
Note 1 - Basis of Presentation -

         The accompanying consolidated financial statements for the period ended
September 30, 1998 include the accounts of IBL Bancorp, Inc. (the "Company") and
its  wholly  owned  subsidiary,  Iberville  Building  &  Loan  Association  (the
"Association").  Currently,  the business and management of IBL Bancorp, Inc. is
primarily  the business  and  management  of the  Association.  All  significant
intercompany   transactions   and   balances   have  been   eliminated   in  the
consolidation.

         On June 16, 1998, the  Association  incorporated  IBL Bancorp,  Inc. to
facilitate  the  conversion  of the  Association  from mutual to stock form (the
"Conversion"). In connection with the Conversion, the Company offered its common
stock to the depositors and borrowers of the Association as of specified  dates,
to an employee stock ownership plan and to members of the general  public.  Upon
consummation  of the Conversion on September 30, 1998, all of the  Association's
outstanding  common  stock was issued to the  Company,  the  Company  became the
holding  company for the  Association  and the Company  issued 210,870 shares of
common stock.

         The  Company  filed  a Form  SB-2  with  the  Securities  and  Exchange
Commission  ("SEC") on June 24, 1998, which as amended was declared effective by
the SEC on August 12, 1998. The  Association  filed a Form AC with the Office of
Thrift Supervision ("0TS") and the Office of Financial  Institutions  ("OFI") on
or about June 24, 1998. The Form AC and related offering and proxy materials, as
amended,  were  conditionally  approved by the OTS by letters dated August 5 and
August 12, 1998 and OFI by letter dated August 14, 1998.  The Company also filed
an  Application  H-(e) 1-S with the Midwest  Regional  Office of the OTS and the
Louisiana  Office of Financial  Institutions on or about July 1, 1998, which was
conditionally  approved by the OTS by letter dated August 5, 1998 and the OFI by
letter dated August 14, 1998.

         The members of the  Association  approved the Plan at a special meeting
held on September 22, 1998, and the subscription  and community  offering closed
on September 16, 1998.

         The Conversion is accounted for under the pooling of interest method of
accounting. In the Conversion the Company issued 210,870 shares of common stock,
16,869 shares of which were acquired by its Employee Stock  Ownership  Plan, and
the  Association  issued  1,000  shares  of $.01 par value  common  stock to the
Company.

         The  accompanying  consolidated  unaudited  financial  statements  were
prepared in accordance with instructions for Form 10-QSB and, therefore,  do not
include information or

                                        9
<PAGE>
footnotes necessary for a complete  presentation of financial position,  results
of operations and cash flows in conformity  with generally  accepted  accounting
principles.  However,  all  adjustments  (consisting  only of  normal  recurring
accruals)  which,  in  the  opinion  of  management,  are  necessary  for a fair
presentation of the consolidated  financial  statements have been included.  The
results of operations for the three and nine months ended September 30, 1998 are
not  necessarily  indicative  of the results to be expected  for the year ending
December 31, 1998.


Note 2 - Employee Stock Ownership Plan-


         The Company  sponsors a leveraged  employee stock ownership plan (ESOP)
that  covers  all  employees  who have at least  one  year of  service  with the
Company.  The ESOP shares initially were pledged as collateral for its debt. The
debt is being repaid based on a ten-year  amortization  and the shares are being
released for allocation to active  employees  annually over the ten-year period.
The shares  pledged as  collateral  are deducted  from  stockholders'  equity as
unearned ESOP shares in the accompanying balance sheets.

         As  shares  are  released   from   collateral,   the  Company   reports
compensation expense equal to the current market price of the shares.  Dividends
on  allocated  ESOP shares are  recorded as a  reduction  of retained  earnings;
dividends  on  unallocated  ESOP shares are  recorded as a reduction of unearned
ESOP shares.


Note 3 - Earnings Per Share -

         Earnings  per share for  periods  prior to  September  30, 1998 are not
considered  meaningful as the Conversion was not completed  until  September 30,
1998, and the 100 shares of the Company  previously held by the Association were
canceled upon consummation of the Conversion as of September 30, 1998.

      IBL Bancorp, Inc. is a Louisiana corporation organized in June 1998 by the
Association  for the  purpose  of  becoming  a unitary  holding  company  of the
Association.  The Company  purchased all of the capital stock of the Association
issued in the Conversion in exchange for 50% of the net conversion  proceeds and
retained  the  remaining  50% of the  net  conversion  proceeds  as its  initial
capitalization.  Immediately  following  the  Conversion,  the only  significant
assets of the Company are the capital  stock of the  Association,  the Company's
loan to the ESOP, and the remainder of the net Conversion  proceeds  retained by
the  Company.  Initially,  the  business  and  management  of the  Company  will
primarily consist of the business and management of the Association.  Initially,
the Company  will neither own nor lease any  property,  but will instead use the
premises,  equipment and furniture of the Association.  At the present time, the
Company  does not  intend to employ  any  persons  other  than  officers  of the
Association,  and the Company will utilize the support staff of the  Association
from time to time.  Additional  employees  will be hired as  appropriate  to the
extent the Company expands or changes its business in the future.

                                       10
<PAGE>
                        IBL BANCORP, INC. AND SUBSIDIARY

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

         The following discussion compares the consolidated  financial condition
of IBL Bancorp,  Inc. and  Subsidiary at September 30, 1998 to December 31, 1997
and the results of operations for the three and nine months ended  September 30,
1998 with the same periods in 1997.  Currently,  the business and  management of
IBL Bancorp,  Inc. is primarily the business and management of the  Association.
This  discussion  should be read in  conjunction  with the interim  consolidated
financial statements and footnotes included herein.

          This  quarterly  report on Form 10-QSB  includes  statements  that may
constitute forward-looking  statements,  usually containing the words "believe",
"estimate," "expect", "intend" or similar expressions. These statements are made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform Act of 1995.  Forward-looking  statements  inherently  involve  risks and
uncertainties  that could cause actual results to differ  materially  from those
reflected  in the  forward-looking  statements.  Factors that could cause future
results to vary from current  expectations  include, but are not limited to, the
following:  changes in economic conditions (both generally and more specifically
in the  markets  in which the  Company  operates);  changes in  interest  rates,
deposit  flows,  loan demand,  real estate  values and  competition;  changes in
accounting principals,  policies or guidelines and in government legislation and
regulation  (which  change  from time to time and over which the  Company has no
control);  and other risks detailed in this quarterly  report on Form 10-QSB and
the Company's  other  Securities and Exchange  Commission  filings.  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect management's analysis only as of the date hereof. The Company undertakes
no obligation  to publicly  revise these  forward-looking  statements to reflect
events or circumstances that arise after the date hereof.

          IBL  Bancorp,  Inc.  is  the  holding  company  for  the  Association.
Substantially  all of the  Company's  assets  are  currently  held  in,  and its
operations  are conducted  through,  its sole  subsidiary the  Association.  The
Company's  business consists  primarily of attracting  deposits from the general
public and using such  deposits to make loans for the purchase and  construction
of residential  properties.  The Company also originates  commercial real estate
loans and various types of consumer loans.

Changes in Financial Condition

         The Association's total assets increased  $1,358,000 or 6.1% from $22.4
million at December  31,  1997 to $23.8  million at  September  30,  1998.  This
increase was primarily due to increases of $192,724 in net loan  receivables and
$2,179,819  in  cash  and  cash  equivalents.  The  increase  in cash  and  cash
equivalents  was due to  consummation  of the  conversion on September 30, 1998.
These increases were partially offset by an aggregate decrease of $842,800 in

                                       11
<PAGE>
securities  and a redemption  of Federal  Home Loan Bank Stock of $194,700.  The
Association continues to emphasize the origination of higher yielding loans over
the purchase of lower yielding mortgage-backed securities.

         The Association's  total classified  assets for regulatory  purposes at
September 30 1998 (excluding loss assets specifically  reserved for) amounted to
$550,000,  all of which was classified as  substandard.  The largest  classified
asset at September 30, 1998 consisted of a $114,000 adjustable-rate  residential
loan.  The  remaining  $436,000  of  substandard  assets at  September  30, 1998
consisted of 12 residential  mortgage  loans totaling  $375,000 and ten consumer
loans totaling $61,000.

          Interest-bearing   deposits  in  other   institutions   increased   by
$2,137,000  or 22.1%  from  $967,000  at  December  31,  1997 to  $3,104,000  at
September  30, 1998.  This increase was primarily due to the sale of IBL Bancorp
Inc. stock.

         The mortgage-backed securities portfolio decreased by $842,800 or 19.4%
from  $4,349,000  at December 31, 1997 to  $3,505,985  at September 30, 1998, as
purchases of these  securities  declined and  repayments  increased in the first
nine months of 1998.

         The  demand  for  mortgage  loans  in  the  Association's  market  area
increased during the past nine months. The net loan portfolio increased $192,724
or 1.2% from  $16,318,000  at December  31,  1997 to  $16,511,000  at  September
30,1998.

         Deposits  increased  by $193,000 or 1.0% from  $20,026,000  at December
31,1997 to $20,220,000 at September 30, 1998. This increase  consisted mainly of
single family residential mortgage loans.

          Total  stockholders'  equity increased by $1.7 million during the past
nine months.  Net income of $137,000 and the $1.7 million net proceeds  from the
sale of common stock increased equity during the period. Stockholders' equity at
September  30, 1998 totaled  $3.3 million  compared to equity of $1.6 million at
December 31, 1997.


                                       12
<PAGE>
Regulatory Capital

         As of  September  30,  1998,  the  Association's  unaudited  regulatory
capital requirements are as indicated in the following table:
<TABLE>
<CAPTION>


                                                       (In Thousands)
                                           TANGIBLE        CORE        RISK-BASED
                                           CAPITAL         CAPITAL       CAPITAL
                                           -------         -------       -------
<S>                                           <C>           <C>           <C>  
GAAP Capital .........................       $3,340        $3,334        $3,334

Additional Capital Items:
    General Valuation Allowances .....         --            --             152
                                             ------        ------        ------

Regulatory Capital Computed ..........        3,340         3,334         3,486

Minimum Capital Requirement ..........          355           717           961
                                             ------        ------        ------

Regulatory Capital Excess ............        2,985        $2,617        $2,525
                                             ======        ======        ======

Regulatory Capital as a
     Percentage ......................        14.08%        14.08%        27.76%

Minimum Capital Required
     as a Percentage .................         1.50%         3.00%         8.00%
                                             ------        ------        ------

Regulatory Capital as a
  Percentage in Excess
    of Requirements ..................        12.58%        11.08%        19.76%
                                             ======        ======        ======
</TABLE>
         Based on the above capital ratios,  the Association  meets the criteria
for a "well  capitalized"  institution at September 30, 1998. The  Association's
management  believes that under the current  regulations,  the Association  will
continue to meet its minimum capital  requirements  in the  foreseeable  future.
However,  events  beyond  the  control  of the  Association,  such as  increased
interest  rates or a downturn in the economy of the  Association's  area,  could
adversely  affect  future  earnings  and   consequently,   the  ability  of  the
Association to continue to exceed its future minimum capital requirements.

Results of Operations

         The  profitability of the Company depends primarily on its net interest
income,  which  is the  difference  between  interest  and  dividend  income  on
interest-earning  assets,  principally loans,  mortgage-backed  securities,  and
investment  securities,  and interest expense on interest-bearing  deposits. Net
interest  income is dependent upon the level of interest rates and the extent to
which such rates are changing. The Company's profitability also is dependent, to
a lesser

                                       13
<PAGE>
extent,  on the level of its  non-interest  income,  provision  for loan losses,
non-interest  expense  and income  taxes.  In each of the three and nine  months
ended September 30, 1998, net interest  income before  provision for loan losses
exceeded total  non-interest  expense.  Total  non-interest  expense consists of
general,  administrative and other expenses,  such as compensation and benefits,
furniture and equipment expense,  federal insurance premiums,  and miscellaneous
other expenses.

         Net income decreased by $17,000 or 31.5% in the quarter ended September
30, 1998 and increased by $2,000 or 1.6% in the nine months ended  September 30,
1998 compared to the respective 1997 periods.  The decrease in the September 30,
1998 quarter was due to a decrease in interest income of $11,000, an increase in
deposit interest expense of $3,000,  and an increase in non-interest  expense of
$15,000.  These factors were primarily  offset by a decline in the provision for
loan  losses of $9,000,  an  increase in  non-interest  income of $1,000,  and a
decrease in  provision  of federal  income taxes of $2,000.  The  increased  net
income for the first nine months of 1998 was primarily due to a $20,000 increase
in net  interest  income  and a  decline  in the  provision  for loan  losses of
$17,000.  These  factors were  partially  offset by an increase in  non-interest
expense of $24,000,  an increase in the  provision  for federal  income taxes of
$10,00, and a decrease in non-interest income of $2,000.

         The $14,000  decrease in net interest  income in the third  quarter was
due to a decrease in the average  interest rate spread from 3.39% in the quarter
of September 30, 1997,  to 2.90% in the September 30, 1998 quarter.  The average
rate on deposits  decreased  from 4.57% in the third quarter of 1997 to 4.42% in
the third quarter of 1998,  while the average yield on  interest-earning  assets
decreased  from  7.96% to 7.32% over the same  period.  The  decreased  yield on
assets was  primarily due to lower yields on the  Association's  adjustable-rate
mortgage loans and adjustable-rate mortgage-backed securities.

         Total interest income decreased by $11,000 or 2.4% in the quarter ended
September  30, 1998 and  increased  by $30,000 or 2.3% for the nine months ended
September 30,1998 over the comparable 1997 periods.

          Total interest expense increased by $3,000 or 1.3% for the quarter and
increased  $11,000 or 1.6% for the nine months ended September 30, 1998 over the
comparable 1997 periods. The increase in the nine month period was primarily due
to $11,284 interest paid on Federal Home Loan Bank advances.

          The  provision  for losses  decreased  by $9,000 for the  quarter  and
$17,000 for the nine month period ended  September 30, 1998 over the  comparable
1997 periods.  At September 30, 1998, the Association's total non-accruing loans
amounted to  $259,720.  The  allowance  for loan losses  amounted to $408,000 at
September 30, 1998,  representing  2.4% of the total loans held in portfolio and
155.94% of total non-accruing loans at such date.


                                       14
<PAGE>
          Non-interest  income  increased  by $1,000 or 5.3% in the three months
ended September 30, 1998 and declined by $2,000 or 2.1% in the nine months ended
September 30, 1998 from the  comparable  1997  periods.  The decline in the nine
months was  primarily  due to lower  commissions  from the sale of annuities and
credit life insurance.

          Non-interest  expenses  increased in the quarter  ended  September 30,
1998 by $15,000  or 11.1% and  increased  by $23,300 or 5.4% in the nine  months
ended September 30, 1998 over the comparable  1997 periods.  The increase in the
quarter was due to an increase of $7,000 in  compensation  and benefits,  $3,000
data processing,  $3,000 supplies and $2,000 general  expenses.  The increase in
the  nine-month  period  was  primarily  due to  increases  of $ 15,000  in data
processing,   $3,000  in  compensation   and  benefits,   $3,000  in  legal  and
professional and $3,000 general and advertising.

Liquidity and Capital Resources

         The  Association is required under  applicable  federal  regulations to
maintain  specified  levels of "liquid"  investments in qualifying types of U.S.
Government, federal agency and other investments having maturities of up to five
years.  Current OTS  regulations  require  that a savings  institution  maintain
liquid  assets  of  not  less  than  4% of  its  average  daily  balance  of net
withdrawable  deposit  accounts and borrowings  payable in one year or less, see
section 5566.2. At September 30, 1998, the Association's  liquidity was 16.2% or
$2.3 million in excess of the minimum OTS requirement.

The Association is required to maintain  regulatory  capital  sufficient to meet
tangible,   core  and  risk-based   capital  ratios  of  1.5%,  3.0%,  and  8.0%
respectively. At September 30, 1998, the Association's tangible and core capital
both  amounted  to $3.3  million  or 14.08% of  adjusted  total  assets of $23.7
million,  and the Association's  risk-based  capital amounted to $3.3 million or
29.03% of adjusted risk-weighted assets of $12.0 million.

The Year 2000
         The association  has reviewed its computer and data  processing  issues
relating to the Year 2000 and has  developed a written  Year 2000 Policy as well
as written Year 2000 Contingency and Test Plans.  Management  believes that most
of the  Association's  hardware and  terminals  will not need to be replaced but
that certain non-critical  software will need to be upgraded.  The Association's
data  processing  is handled by an  independent  third  party data  center,  and
management is monitoring  the data center's  progress and timetable to resolving
issues related to the Year 2000.  Initial  testing with the data center occurred
in September  1998 and went well. If the data center is able to become Year 2000
compliant in a timely manner,  then management  believes that issues relating to
the  Year  2000  will  not  have a  material  adverse  effect  on the  Company's
liquidity,   capital  resources  or  consolidated  results  of  operations.  The
Association  currently  estimates the total cost of becoming year 2000 compliant
to be approximately $15,000(of which $5,000 has been incurred) and expects to be
Year 2000 compliant by the end of 1998.

                                       15
<PAGE>
         In the event the third  party data center is unable to become Year 2000
Compliant in a timely manner, the Association has established a contingency plan
to switch to another data center. The Association is in the process of receiving
an estimate  from another data center as to the cost of conversion to their data
center.  While the cost of  switching  to another  data center have not yet been
quantified,  management  currently does not believe that such costs would have a
material  adverse  effect  on the  Company's  liquidity,  capital  resources  or
consolidated results of operations.







                                       16
<PAGE>
                                IBL Bancorp, Inc.
Form 10-QSB
Quarter Ended September 30, 1998

PART II - OTHER INORMATION

Item 1 - Legal Proceedings:
                  There are no matters required to be reported under this item.

Item 2 - Changes in Securities and Use of Proceeds:
                  There are no matters  required to be reported  under  sections
                  (a) through  (c) of this item.  On  September  30,  1998,  the
                  Company sold 210,870  shares of its common stock at $10.00 per
                  share in connection  with the  conversion  of the  Association
                  from a mutual to a stock form,  resulting in gross proceeds of
                  $2,108,700.  Net proceed amounted to $1,746,920,  of which 50%
                  was used by the Company to purchase  all of the  Association's
                  common  stock  issued  in  the  conversion.  Of  the  proceeds
                  retained by the  Company,  $168,690 was used to make a loan to
                  the Company's  Employee Stock Ownership Plan ("ESOP") in order
                  to fund  the  purchase  of  16,869  shares  by the ESOP in the
                  conversion. The remaining net proceeds retained by the Company
                  are being used as the  Company's  working  capital and will be
                  invested in investment securities.

Item 3 - Defaults Upon Senior Securities:
                  There are no matters required to be reported under this item.

Item 4 -Submission of Matters to a Vote of Security Holders:

                   On September  22, 1998,  in  conjunction  with the  Company's
                   first annual meeting of stockholders,  the Association as the
                   sole  stockholder  of the  Company  at the  time  executed  a
                   Consent of Sole Stockholder approving the following:  (1) the
                   division  of the  directors  of the  Corporation  into  three
                   classes, as follows:  the first class,  consisting of Messes.
                   Delahaye and Strickland, has a term of office expiring at the
                   Corporation's  first  annual  meeting  of  stockholders;  the
                   second,  class consisting of Messrs.  Bouchereau and Stanley,
                   has a term of office  expiring  at the  Corporation's  second
                   annual  meeting  of   stockholders;   and  the  third  class,
                   consisting  of Messrs.  Pruitt and  Steinmetz,  has a term of
                   office expiring at the Corporation's  third annual meeting of
                   stockholders;  (2)  the  election  of  Messrs.  Delahaye  and
                   Strickland  for a three-year  term expiring in 2001, or until
                   their  successors  are  elected  and  appointed;  and (3) the
                   ratification  of the  appointment  of  L.A.  Champagne  & Co,
                   L.L.P. as the Corporation's  independent  public  accountants
                   for the fiscal year ending December 31, 1998.

Item 5 - Other Information:
                   There are no matters required to be reported under this item.

                                       17
<PAGE>

Item 6 - Exhibits and Reports on Form 8-K:
                   (a) The following exhibit is filed herewith:
                           EXHIBIT NO.                       DESCRIPTION
                           -----------                       -----------
                              27.1                    Financial Data Schedule


                   (b) Reports on Form 8-K:
                             No reports on Form 8-K were filed by the Registrant
                             during the quarter ended September 30, 1998.





                                       18
<PAGE>





                                   SIGNATURES

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

                                                 IBL  BANCORP, INC.
                                                 Registrant

Date:      November 10, 1998                 By  /s/G. Lloyd Bouchereau, Jr.
                                                 ------------------------------
                                                 G. Lloyd   Bouchereau,   Jr.,
                                                 President and
                                                 Chief Executive Officer

Date:      November 10, 1998                 By: /s/Gary K.Pruitt 
                                                 ----------------
                                                 Gary K. Pruitt
                                                 Secretary



                                       19