<PAGE>   1
                       Securities and Exchange Commission
                             WASHINGTON, D. C. 20549



                                    FORM 10-Q



[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 Number: 0-23101

                           LAUREL CAPITAL GROUP, INC.
                    -----------------------------------------
             (Exact name of registrant as specified in its charter)

        Pennsylvania                                          25-1717451
-------------------------------                          ---------------
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                           Identification No.)

     2724 Harts Run Road
  Allison Park, Pennsylvania                                    15101
-------------------------------                               --------
(Address of principal executive office)                      (Zip Code)

Registrant's telephone number including area code:  (412) 487-7404


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. YES X NO

The number of shares outstanding for each of the issuer's classes of common
stock, as of the latest practicable date is:

                           Class:  Common stock, par value $.01 per share
                           Outstanding at November 1, 2000: 1,957,292 shares



<PAGE>   2



                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                                      INDEX



<TABLE>
<CAPTION>
                                                                                                   PAGE
                                                                                                   ----

<S>                                                                                                <C>
Part I - Financial Information

Item 1.           Financial Statements (Unaudited)

                  Consolidated Statements of Financial Condition as of                   .....      1
                  September 30, 2000 and June 30, 2000

                  Consolidated Statements of Operations for the Three                    .....      2
                  Months Ended September 30, 2000 and 1999

                  Consolidated Statement of Stockholders' Equity for the                 .....      3
                  Three Months Ended September 30, 2000

                  Consolidated Statements of Cash Flows for the Three                    .....      4
                  Months Ended September 30, 2000 and 1999

                  Notes to Unaudited Consolidated Financial Statements                   .....    5-9

Item 2.           Management's Discussion and Analysis of Financial                      .....  10-15
                  Condition and Results of Operations

Item 3.           Quantitative and Qualitative Disclosures about Market Risk             .....     15

Part II - Other Information

                  Item 1.  Legal Proceedings                                             .....     16

                  Item 2.  Changes in Securities and Use of Proceeds                     .....     16

                  Item 3.  Defaults Upon Senior Securities                               .....     16
                  Item 4.  Submission of Matters to a Vote of
                           Security Holders                                              .....     16

                  Item 5.  Other Information                                             .....     16

                  Item 6.  Exhibits and Reports on Form 8-K                              .....     16


Signatures                                                                               .....     17
</TABLE>


<PAGE>   3


                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                 Consolidated Statements of Financial Condition
                                 (In thousands)


<TABLE>
<CAPTION>
                                                                             September 30,                   June 30,
                                                                                      2000                       2000
---------------------------------------------------------------------------------------------------------------------
                                                                               (unaudited)
<S>                                                                            <C>                        <C>
     ASSETS


Cash                                                                           $       893                $       822
Interest-earning deposits with other institutions                                    3,517                      4,096
Investment securities available for sale                                            39,244                     38,665
Investment securities held to maturity
    (market value of $21,350 and $21,144                                            21,932                     21,931
Mortgage-backed securities available for sale                                       10,867                     10,947
Mortgage-backed securities held to maturity
    (market value of $332 and $396)                                                    332                        397
Loans receivable, held for sale                                                      1,621                      1,514

Loans receivable                                                                   174,144                    171,319
Allowance for loan losses                                                           (1,764)                    (1,798)
---------------------------------------------------------------------------------------------------------------------

     Loans receivable, net                                                         172,380                    169,521

Federal Home Loan Bank stock                                                         2,046                      1,671
Real estate owned                                                                      142                         --
Accrued interest receivable:
     Loans                                                                             921                        874
     Interest-earning deposits and investments                                         576                        790
     Mortgage-backed securities                                                         67                         67

Office properties and equipment, net of accumulated depreciation                     1,366                      1,413
Prepaid expenses and sundry assets                                                   1,200                      1,365
---------------------------------------------------------------------------------------------------------------------

               Total Assets                                                    $   257,104                $   254,073
---------------------------------------------------------------------------------------------------------------------


     LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

     Savings deposits                                                          $   188,166                $   192,663
     FHLB advances                                                                  40,923                     33,424
     Advance deposits by borrowers for taxes and insurance                           1,084                      3,092
     Accrued interest payable                                                        1,620                        404
     Accrued income taxes                                                              563                        239
     Other accrued expenses and sundry liabilities                                   1,021                      1,005
---------------------------------------------------------------------------------------------------------------------

               Total Liabilities                                                   233,377                    230,827
---------------------------------------------------------------------------------------------------------------------

Stockholders' Equity

     Common stock,  $.01 par value;
        5,000,000 shares authorized;  2,332,251 and 2,329,272 shares
        issued, respectively                                                            23                         23
     Additional paid-in capital                                                      5,237                      5,224
     Treasury stock, at cost (369,370 and 328,670 shares)                           (5,257)                    (4,711)
     Retained earnings                                                              24,627                     24,120
     Accumulated other comprehensive loss, net of tax                                 (500)                    (1,007)
     Stock held in deferred compensation trust                                        (403)                      (403)
---------------------------------------------------------------------------------------------------------------------

               Total Stockholders' Equity                                           23,727                     23,246
---------------------------------------------------------------------------------------------------------------------

               Total Liabilities and Stockholders' Equity                      $   257,104                $   254,073
---------------------------------------------------------------------------------------------------------------------
</TABLE>



SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS



                                      -1-
<PAGE>   4


                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                      Consolidated Statements of Operations
                                   (Unaudited)

             For the Three Months Ended September 30, 2000 and 1999
                      (In thousands, except per share data)


<TABLE>
<CAPTION>
                                                                          Three months ended
                                                                             September 30,
                                                                     ---------------------------
                                                                       2000                 1999
                                                                     ------               ------
<S>                                                                  <C>                  <C>
Interest income:
    Loans                                                            $3,348               $2,908
    Mortgage-backed securities                                          204                  217
    Investments                                                       1,014                  869
    Interest-earning deposits                                            24                   25
                                                                     ------               ------

         Total interest income                                        4,590                4,019

Interest expense:
    Savings deposits                                                  1,989                1,767
    Borrowings                                                          564                  272
                                                                     ------               ------

         Total interest expense                                       2,553                2,039
                                                                     ------               ------

Net interest income before provision
    for loan losses                                                   2,037                1,980
Provision for loan losses                                                 5                    5
                                                                     ------               ------

Net interest income after provision
    for loan losses                                                   2,032                1,975
                                                                     ------               ------

Other income:
    Service charges                                                     180                  181
    Net gain on sale of investments and
         mortgage-backed securities available for sale                    5                   --
    Gain on the sale of loans held for sale                               5                    7
    Other operating income                                               16                   15
                                                                     ------               ------

         Total other income                                             206                  203
                                                                     ------               ------

Operating expenses:
    Compensation, payroll taxes and
         fringe benefits                                                500                  464
    Premises and occupancy costs                                        135                  151
    Federal insurance premiums                                           10                   26
    Net loss on real estate owned                                         1                   40
    Data processing expense                                              55                   52
    Professional fees                                                    49                   40
    Other operating expenses                                            273                  227
                                                                     ------               ------

         Total operating expenses                                     1,023                1,000
                                                                     ------               ------

Income before income taxes                                            1,215                1,178
                                                                     ------               ------


Provision for income taxes:
    Federal                                                             314                  304
    State                                                                58                   59
                                                                     ------               ------

         Total income taxes                                             372                  363
                                                                     ------               ------


         Net income                                                  $  843               $  815
                                                                     ======               ======

Earnings per share
         Basic                                                       $ 0.43               $ 0.38
                                                                     ======               ======

         Diluted                                                     $ 0.41               $ 0.36
                                                                     ======               ======

Dividends per share                                                  $ 0.17               $ 0.16
                                                                     ======               ======
</TABLE>

      SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS



                                      -2-
<PAGE>   5


                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                 Consolidated Statement of Stockholders' Equity
                                   (Unaudited)

                  For the Three Months Ended September 30, 2000
                                 (In thousands)


<TABLE>
<CAPTION>
                                                              Additional
                                               Common            Paid-in            Treasury           Retained
                                                Stock            Capital               Stock           Earnings
                                                -----            -------               -----           --------

<S>                                          <C>                <C>                <C>                 <C>
Balance, June 30, 2000                       $     23           $  5,224           ($ 4,711)           $ 24,120

Comprehensive income:
       Net income                                  --                 --                 --                 843
       Other comprehensive income,
            net of tax $235                        --                 --                 --                  --
       Reclassification adjustment
            net of tax $25
                                             --------           --------           --------            --------

Total comprehensive income                         --                 --                 --                 843

Stock options exercised
     (2,979 shares)                                --                 13                 --                  --

Dividends on common stock
     at $0.17 per share                            --                 --                 --                (336)

Treasury stock purchased                           --                 --               (546)                 --

Net purchase of stock in
     deferred compensation trust                   --                 --                 --                  --
                                             --------           --------           --------            --------

Balance, September 30, 2000                  $     23           $  5,237           ($ 5,257)           $ 24,627
                                             ========           ========           ========            ========
</TABLE>



<TABLE>
<CAPTION>
                                           Accumulated
                                                 Other       Stock Held in
                                         Comprehensive            Deferred              Total
                                                Income        Compensation      Stockholders'
                                            Net of Tax               Trust             Equity
                                            ----------               -----             ------

<S>                                      <C>                 <C>                <C>
Balance, June 30, 2000                       ($ 1,007)           ($   403)           $ 23,246

Comprehensive income:
       Net income                                  --                  --                 843
       Other comprehensive income,
            net of tax $235                       460                  --                 460
       Reclassification adjustment
            net of tax $25                         47
                                             --------            --------            --------

Total comprehensive income                        507                  --               1,350

Stock options exercised
     (2,979 shares)                                --                  --                  13

Dividends on common stock
     at $0.17 per share                            --                  --                (336)

Treasury stock purchased                           --                  --                (546)

Net purchase of stock in
     deferred compensation trust                   --                  --                   0
                                             --------            --------            --------

Balance, September 30, 2000                  ($   500)           ($   403)           $ 23,727
                                             ========            ========            ========
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS




                                      -3-
<PAGE>   6


                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                      Consolidated Statements of Cash Flows
                                   (Unaudited)

             For the Three Months Ended September 30, 2000 and 1999
                                 (In thousands)


<TABLE>
<CAPTION>
                                                                                      2000                1999
---------------------------------------------------------------------------------------------------------------

<S>                                                                               <C>                 <C>
Net income:                                                                       $    843            $    815
      Adjustments to reconcile net income to net
         cash provided by operating activities:
           Depreciation                                                                 49                  47
           Provision for loan losses                                                     5                   5
           Net loss on sale of real estate owned                                        --                  29
           Net gain on sale of investment securities available for sale                 (5)                 --
           Gain on the sale of loans held for sale                                      (5)                 (7)
           Amortization of deferred loan fees                                          (20)                (35)
           Origination of loans held for sale                                         (357)               (297)
           Proceeds from sale of loans held for sale                                   255                 433
           (Decrease) increase in accrued interest receivable                          167                 (33)
           Increase in accrued interest payable                                      1,216                 935
           Other - net                                                                 267                 194
---------------------------------------------------------------------------------------------------------------

                     Net cash provided by operating activities                       2,415               2,086
---------------------------------------------------------------------------------------------------------------

Investing activities:
      Purchase of investment securities held to maturity                                --              (8,494)
      Purchase of investment securities available for sale                            (268)             (1,793)
      Purchase of mortgage-backed securities held to maturity                           --                  --
      Purchase of mortgage-backed securities available for sale                         --              (1,000)
      Purchase of FHLB stock                                                          (375)                 --
      Proceeds from sale of investment securities available for sale                   333                  --
      Principal repayments of investment and
         mortgage-backed securities available for sale                                 185                 807
      Principal repayments of investment and
         mortgage-backed securities held to maturity                                    65                 355
      Increase in loans                                                             (2,986)               (955)
      Proceeds from sale of real estate owned                                           --                  13
      Net additions to office properties and equipment                                  (2)                (65)
---------------------------------------------------------------------------------------------------------------

                     Net cash used by investing activities                          (3,048)            (11,132)
---------------------------------------------------------------------------------------------------------------

Financing activities:
      Net decrease in demand and club accounts                                      (2,397)               (468)
      Net (decrease) increase in time deposit accounts                              (2,100)                154
      Net increase in FHLB advances                                                  7,499               3,099
      Decrease in advance deposits by borrowers
         for taxes and insurance                                                    (2,008)             (2,007)
      Stock options exercised                                                           13                   2
      Acquisition of treasury stock                                                   (546)               (476)
      Dividends paid                                                                  (336)               (347)
---------------------------------------------------------------------------------------------------------------

                     Net cash provided by financing activities                         125                 (43)
---------------------------------------------------------------------------------------------------------------

Net change in cash and cash equivalents                                               (508)             (9,089)
Cash and cash equivalents at beginning of period                                     4,918              12,111
---------------------------------------------------------------------------------------------------------------

Cash and cash equivalents at end of period                                        $  4,410            $  3,022
---------------------------------------------------------------------------------------------------------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
---------------------------------------------------------------------------------------------------------------

      Cash paid during the period for:
           Interest on savings deposits                                           $    773            $    832
           Interest on FHLB advances                                                   507                 286
           Income taxes                                                                110                  76
      Transfer of loans to real estate owned                                           142                  --

      Cash paid during the period for interest includes interest credited on deposits of $552 and $627
      for the three months ended September 30, 2000 and 1999, respectively.
---------------------------------------------------------------------------------------------------------------
</TABLE>


SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS



                                      -4-
<PAGE>   7



                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                      SEPTEMBER 30, 2000 AND JUNE 30, 2000


(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions for Form 10-Q and, therefore, do not include
all the information or footnotes necessary for a complete presentation of
financial condition, results of operation and cash flows in conformity with
generally accepted accounting principles. However, all adjustments, consisting
only of normal recurring adjustments which, in the opinion of management, are
necessary for a fair presentation, have been included. Significant accounting
policies have not changed since June 30, 2000. The results of operations for the
three months ended September 30, 2000 are not necessarily indicative of the
results which may be expected for the entire fiscal year. The unaudited
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and the notes thereto included in Laurel
Capital Group, Inc.'s (the "Company") 2000 Annual Report to Stockholders for the
year ended June 30, 2000. All amounts presented in the Notes to Unaudited
Consolidated Financial Statements are presented in thousands except share and
per share data.

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                           September 30,
                                                    2000                 1999
                                                 -------------------------------
<S>                                              <C>                  <C>
Basic earnings per share:
   Net income                                          $843                 $815
   Weighted average shares outstanding            1,978,530            2,158,628
   Earnings per share                                 $0.43                $0.38

Diluted earnings per share:
   Net income                                          $843                 $815
   Weighted average shares outstanding            1,978,530            2,158,628
   Dilutive effect of employee
      stock options                                  67,771               88,691
                                                 ----------           ----------

   Diluted weighted shares outstanding            2,046,301            2,247,319
   Earnings per share                                 $0.41                $0.36
</TABLE>


Options to purchase 72,596 shares of common stock at prices ranging from $14.69
to $19.00 per share were outstanding during the three months ended September 30,
2000 but were not included in the computation of diluted earnings per share
because the option exercise price was greater than the average market price of
the common shares, and therefore, the effect would be antidilutive.



                                      -5-
<PAGE>   8

For the three months ending September 30, 1999, options to purchase 69,360
shares of common stock at prices ranging from $15.75 to $19.50 per share were
not included in the computation of diluted earnings per share due to their
antidilutive effect.


SECURITIES

The Company accounts for investments in debt and equity securities in accordance
with the Financial Accounting Standards Board's ("FASB") Statement No. 115
("SFAS 115"). SFAS 115 requires that investments be classified as either: (1)
Securities Held to Maturity- reported at amortized cost, (2) Trading Securities-
reported at fair value, or (3) Securities Available for Sale- reported at fair
value. Unrealized gains and losses for trading securities are reported in
earnings while unrealized gains and losses for securities available for sale are
reported as other comprehensive income in stockholders' equity.


COMPREHENSIVE INCOME

The Company reports Comprehensive Income in accordance with SFAS No. 130 which
establishes standards for reporting and display of comprehensive income and its
components (revenues, expenses, gains, and losses) in a full set of general
purpose financial statements. SFAS No. 130 requires that all items that are
required to be recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is displayed with
the same prominence as other financial statements. SFAS No. 130 requires that an
enterprise (a) classify items of other comprehensive income by their nature in a
financial statement and (b) display the accumulated balance of other
comprehensive income separately from retained earnings and additional paid-in
capital in the equity section of a statement of financial position. For the
three months ended September 30, 2000 and 1999, the Company's total
comprehensive income was $1,350 and $338, respectively. Total comprehensive
income is comprised of net income of $843 and $815, respectively, and other
comprehensive income (loss) of $507 and $(477), net of tax, respectively. Other
comprehensive income consists of unrealized gains and losses on investment
securities and mortgage-backed securities available for sale, net of tax.


LOANS RECEIVABLE

Loans receivable are stated at unpaid principal balances net of the allowance
for possible loan losses, net deferred loan fees and discounts. The Company
accounts for impaired loans in accordance with SFAS 114, "Accounting by
Creditors for Impairment of a Loan" and SFAS 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures", an amendment of SFAS
114. These statements address the accounting by creditors for impairment of
certain loans. They apply to all creditors and to all loans, uncollateralized as
well as collateralized, except for large groups of smaller-balance homogeneous
loans that are collectively evaluated for impairment. The Bank considers all
one-to-four family residential mortgage loans and all consumer loans (as
presented in Note 4) to be smaller-balance homogeneous loans. Loans within the
scope of these statements are considered impaired when, based on current
information and events, it is probable that all principal and interest will not
be collected in accordance with the contractual terms of the loans. Management
determines the



                                      -6-
<PAGE>   9

impairment of loans based on knowledge of the borrower's ability to repay the
loan according to the contractual agreement, the borrower's repayment history
and the fair value of collateral for certain collateral dependent loans.
Pursuant to SFAS 114 paragraph 8, management does not consider an insignificant
delay or insignificant shortfall to impair a loan. Management has determined
that a delay less than 90 days will be considered an insignificant delay and
that an amount less than $5,000 will be considered an insignificant shortfall.
The Bank does not apply SFAS 114 using major risk characteristics for groups of
loans, but on a loan by loan basis. All loans are charged off when management
determines that principal and interest are not collectible.

The accrual of interest on all loans is discontinued when, in management's
opinion, the borrower may be unable to meet payments as they become due or when
the loan becomes 90 days past due, whichever occurs first. When interest accrual
is discontinued, all unpaid accrued interest is reserved. Such interest
ultimately collected is credited to income in the period of recovery or applied
to reduce principal if there is sufficient doubt about the collectability of
principal. Consumer loans more than 120 days or 180 days delinquent (depending
on the nature of the loan) are generally required to be written off.

Any excess of the Bank's recorded investment in the loans over the measured
value of the loans in accordance with FAS 114 is provided for in the allowance
for loan losses. The Bank reviews its loans for impairment on a quarterly basis.

Loans receivable classified as held for sale are recorded in the financial
statements in the aggregate at the lower of cost or market.


(2) CONTINGENT LIABILITIES

The Company is subject to a number of asserted and unasserted potential claims
encountered in the normal course of business. In the opinion of management and
legal counsel, the resolution of these claims is not expected to have a material
adverse effect on the Company's financial position, liquidity or results of
operations.




                                      -7-
<PAGE>   10


(3)   INVESTMENT AND MORTGAGE-BACKED SECURITIES

      Investment securities and mortgage-backed securities available for sale
are comprised of the following:


<TABLE>
<CAPTION>
                                                                   Amortized            Gross Unrealized            Fair
                                                                        Cost        Gains             Losses       Value
                                                               -----------------------------------------------------------

<S>                                                                <C>              <C>               <C>        <C>
      AT SEPTEMBER 30, 2000:
           Municipal obligations                                     $21,520         $130               $900     $20,750
           FNMA preferred stock                                          250           --                  3         247
           FHLMC preferred stock                                         250           --                 12         238
           FNMA common stock                                             390          146                 --         536
           FHLMC  common stock                                           590           97                 12         675
           SLMA Student Loan Trust                                       567           18                 --         585
           Standard Insurance Company stock                                4            3                 --           7
           Shay Financial Services
               ARMs Fund                                              16,405           --                199      16,206
                                                               -----------------------------------------------------------

                                                                      39,976          394              1,126      39,244

           Mortgage-backed securities available for sale              10,893           70                 96      10,867
                                                               -----------------------------------------------------------

                   Total                                             $50,869         $464             $1,222     $50,111
                                                               -----------------------------------------------------------
</TABLE>



<TABLE>
<CAPTION>
      At September 30, 2000, the contractual maturities of the debt securities   Amortized          Fair
           available for sale are:                                                    Cost         Value
                                                                              ---------------------------

<S>                                                                              <C>             <C>
           Due after five years through ten years                                     $752          $774
           Due after ten years                                                      21,335        20,561
                                                                              ---------------------------

                   Total                                                           $22,087       $21,335
                                                                              ===========================
</TABLE>



           Mortgage-backed securities have various contractual maturity dates.
           Actual repayments may be different due to prepayments on the loans
           underlying the securities. The FNMA stock, FHLMC stock, Standard
           Insurance Company stock and the Shay Financial Services ARMs Fund
           have no stated maturity.

      Note:     Gross realized gains of $5 were recorded during the three months
                ended September 30, 2000 on the sale of investment securities
                available for sale. There were no sales of such securities
                during the three months ended September 30, 1999. Proceeds from
                the sale of investments available for sale during the three
                months ended September 30, 2000 were $333.



      Investment and mortgage-backed securities held to maturity are comprised
of the following:

<TABLE>
<CAPTION>
                                                       Amortized         Gross Unrealized           Fair
                                                            Cost        Gains       Losses         Value
                                                   ------------------------------------------------------

<S>                                                    <C>              <C>         <C>          <C>
      AT SEPTEMBER 30, 2000
           Corporate notes and commercial paper          $21,932           $6         $588       $21,350
            Mortgage-backed securities                       332            2            2           332
                                                   ------------------------------------------------------

                   Total                                 $22,264           $8         $590       $21,682
                                                   ------------------------------------------------------
</TABLE>



<TABLE>
<CAPTION>
      At September 30, 2000, the contractual maturities of the debt securities   Amortized          Fair
           held to maturity are:                                                      Cost         Value
                                                                              ---------------------------

<S>                                                                              <C>             <C>
           Due after one year through five years                                    $2,499        $2,444
           Due after five years through ten years                                    7,498         7,380
           Due after ten years                                                      11,935        11,526
                                                                              ---------------------------

                   Total                                                           $21,932       $21,350
                                                                              ===========================
</TABLE>


           Mortgage-backed securities have various contractual maturity dates.
           Actual repayments may be different due to prepayments on the loans
           underlying the securities.



                                      -8-
<PAGE>   11


(4)    LOANS RECEIVABLE

            Loans receivable are comprised of the following:


<TABLE>
<CAPTION>
                                                  September 30,             June 30,
                                                           2000                 2000
------------------------------------------------------------------------------------
<S>                                               <C>                      <C>
     First mortgage loans:
           1 to 4 family dwellings                    $ 125,711            $ 125,242
           Multi-family dwellings                         2,595                2,476
           Commercial                                     4,740                5,391
           Guaranteed or insured                             33                   34
           Construction and development loans            11,185               10,167
------------------------------------------------------------------------------------

                                                        144,264              143,310

     Commercial loans                                     1,163                  919
     Consumer loans:
           Loans secured by savings accounts                211                  211
           Installment loans                             35,196               34,899
------------------------------------------------------------------------------------

                                                         36,570               36,029
------------------------------------------------------------------------------------

     Loans receivable, net of unearned discounts        180,834              179,339
     Less: Allowance for loan losses                     (1,764)              (1,798)
           Loans in process                              (6,485)              (7,796)
           Deferred loan fees                              (205)                (224)
------------------------------------------------------------------------------------

     Loans receivable, net                            $ 172,380            $ 169,521
------------------------------------------------------------------------------------
</TABLE>


       Changes in the allowance for loan losses for the three months ended
       September 30, 2000 and 1999 are as follows:

<TABLE>
<CAPTION>
                                                      Fiscal                 Fiscal
                                                        2001                   2000
       -----------------------------------------------------------------------------

<S>                                                   <C>                    <C>
       Balance at beginning of the fiscal year        $1,798                 $1,866
       Provision for losses                                5                      5
       Charge-offs                                       (42)                   (13)
       Recoveries                                          3                      2
       -----------------------------------------------------------------------------

       Balance at September 30, 2000 and 1999         $1,764                 $1,860
       -----------------------------------------------------------------------------
</TABLE>



       At September 30, 2000, the recorded investment in loans that are
       considered to be impaired under SFAS 114 was $325. Included in this
       amount is $49 of impaired loans for which the related allowance for loan
       losses is $12, and $276 of impaired loans that as a result of write-downs
       do not have an allowance for loan losses. The average recorded investment
       in impaired loans during the three months ended September 30, 2000 was
       approximately $329. For the three months ended September 30, 2000, the
       Company recognized interest income on those impaired loans of $0.2 which
       was recognized using the cash basis method of income recognition.

<TABLE>
<CAPTION>
                                                                    September 30,
                                                               2000               1999
                                                              --------------------------

<S>                                                            <C>                <C>
       Non-accrual loans                                       $354               $566
       Non-accrual loans as a percent of total loans, net      0.21 %             0.37 %
</TABLE>


       --------------------------------
       All loans 90 days or more past due are reported as non-accrual.




                                      -9-
<PAGE>   12


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


BALANCE SHEET DATA
<TABLE>
<CAPTION>
                                                                         At September 30,
                                                                       2000             1999
                                                                       -----            ----
                                                             (In thousands except per share data)
                                                             ------------------------------------
                                                                          (Unaudited)
<S>                                                                 <C>              <C>
Total assets                                                        $257,104         $232,873
Money market investments                                                  --               --
Interest-earning deposits with other institutions                      3,517            1,752
Investment securities available for sale                              39,244           36,615
Investment securities held to maturity                                21,932           20,937
Mortgage-backed securities available for sale                         10,867           12,023
Mortgage-backed securities held to maturity                              332              717
Loans receivable held for sale                                         1,621            1,433
Loans receivable, net                                                172,380          152,375
Savings deposits                                                     188,166          181,804
FHLB advances                                                         40,923           23,128
Retained earnings                                                     24,627           22,538
Stockholders' equity                                                  23,727           24,025
Stockholders' equity per share                                        $12.09           $11.22
</TABLE>



STATISTICAL PROFILE
<TABLE>
<CAPTION>
                                                                        Three months ended
                                                                           September 30,
                                                                ---------------------------------

                                                                       2000             1999
                                                                       -----            ----
<S>                                                                   <C>              <C>
Average yield earned on all interest-earning assets                     7.40 %           7.11 %
Average rate paid on all interest-bearing liabilities                   4.68             4.16
Average interest rate spread                                            2.72             2.95
Net yield on average interest-earning assets                            3.28             3.50
Average interest-earning assets as a percentage of
      average interest-bearing liabilities                            114.71           116.19
Return on average assets (1)                                            1.32             1.41
Return on average equity  (1)                                          14.38            13.41
Average equity to average assets                                        9.19            10.48
</TABLE>


-------------------------------------------------
(1) Amounts are annualized .



                                      -10-
<PAGE>   13



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


GENERAL. Laurel Capital Group, Inc.'s (the "Company") only significant asset is
the stock it owns of its wholly-owned subsidiary, Laurel Savings Bank (the
"Bank"). The Company's net income for the three months ended September 30, 2000
was $843,000 compared to $815,000 for the same period in the prior year. The
increase of $28,000 or 3.4% was primarily the result of a $57,000 or 2.9%
increase in net interest income and a $3,000 or 1.5% increase in other income
partially offset by a $23,000 or 2.3% increase in other operating expenses and a
$9,000 or 2.5% increase in income tax expense. These and other significant
fluctuations are discussed below.

NET INTEREST INCOME. The Company's operating results depend substantially on the
Bank's net interest income, which is determined by the average interest rate
spread between the Bank's interest-earning assets and interest-bearing
liabilities and the relative amounts of such assets and liabilities. Net
interest income increased by $57,000 or 2.9% during the three months ended
September 30, 2000 as compared to the same period of the prior year. The
increase was primarily due to a $22.2 million or 9.8% increase in average net
earning assets for the quarter ended September 30, 2000 as compared to the
quarter ended September 30, 1999. This increase was partially offset by a
decrease in the average interest rate spread from 2.95% for the quarter ended
September 30, 1999 to 2.72% for the quarter ended September 30, 2000.

Interest income on loans receivable and loans held for sale increased by
$440,000 or 15.1% during the three months ended September 30, 2000 as compared
to the same period in the prior year. This increase was primarily due to a $19.5
million or 12.8% increase in the average outstanding balance of loans receivable
for the quarter ended September 30, 2000 as compared to the same period in the
prior year. In addition, the average yield on loans receivable increased from
7.66% for the quarter ended September 30, 1999 to 7.81% for the quarter ended
September 30, 2000. The increase in the average outstanding balance of loans
receivable was due to a $16.7 million or 14.1% increase in the average
outstanding balance of mortgage loans and a $2.8 million or 8.1% increase in the
average outstanding balance of consumer and other loans. The increase in the
average yield was primarily due to generally higher market interest rates. The
Bank continues to emphasize the origination of consumer loan products as part of
its Asset/Liability management due to their generally shorter terms.

Interest on mortgage-backed securities held to maturity and mortgage-backed
securities available for sale decreased by $13,000 or 6.0% during the quarter
ended September 30, 2000 as compared to the September 30, 1999 quarter. This
decrease was primarily due to a $1.8 million or 13.4% decrease in the average
outstanding balance of mortgage-backed securities during the quarter ended
September 30, 2000 as compared to the September 30, 1999 quarter. This decrease
was partially offset by an increase in the average yield on mortgage-backed
securities from 6.61% for the quarter ended September 30, 1999 to 7.18% for the
quarter ended September 30, 2000. At September 30, 2000, the Bank's portfolio of
mortgage-backed securities available for sale had net unrealized losses of
$26,000. This portfolio consists of fixed and adjustable rate securities with an
average yield of 7.26% at September 30, 2000. Rising interest rates would
increase the unrealized losses in this portfolio if the fixed rate securities
are not sold. The mortgage-backed securities held to maturity portfolio consists
of two adjustable-rate and one fixed-rate collateralized mortgage




                                      -11-
<PAGE>   14

obligations (CMO's) with an average yield of 6.49% at September 30, 2000. At
September 30, 2000, the Bank's portfolio of mortgage-backed securities held to
maturity had an amortized cost and fair market value of $332,000. In periods of
rising interest rates, unrealized losses could occur due to the timing
difference of when the securities reprice. See Note 3 of "Notes to Unaudited
Consolidated Financial Statements."

Interest income on investments held to maturity and investments available for
sale increased during the three months ended September 30, 2000 by $145,000 or
16.7% from the comparable period in 1999, primarily due to a $5.0 million or
8.7% increase in the average outstanding balance of such securities for the
quarter ended September 30, 2000 as compared to the quarter ended September 30,
1999. In addition, the average yield on investment securities increased from
5.94% for the quarter ended September 30, 1999 to 6.38% for the quarter ended
September 30, 2000. The increase in the average outstanding balance was
primarily due to the investment of increased savings deposits and funds borrowed
from the Federal Home Loan Bank ("FHLB") of Pittsburgh. At September 30, 2000,
the Bank's portfolio of investment securities available for sale and investment
securities held to maturity had net unrealized losses of $733,000 and $582,000,
respectively. See Note 3 of "Notes to Unaudited Consolidated Financial
Statements."

Interest income on interest-earning deposits decreased during the three months
ended September 30, 2000 by $1,000 or 4.0% from the comparable period in 1999.
This decrease was primarily due to a decrease of $547,000 or 26.9% in the
average outstanding balance of interest-earning deposits for the quarter ended
September 30, 2000 as compared to the September 30, 1999 quarter. This decrease
was partially offset by an increase in the average yield on interest-earning
deposits increased from 4.88% for the quarter ended September 30, 1999 to 6.40%
for the quarter ended September 30, 2000.

Interest expense on interest-bearing deposits increased by $222,000 or 12.6% for
the quarter ended September 30, 2000, compared to the same period in 1999. The
increase was primarily due to an increase in the average interest rate paid on
savings deposits from 4.02% for the three months ended September 30, 1999 to
4.36% for the three months ended September 30, 2000. Also contributing to the
increase was a $6.6 million or 3.8% increase in the average outstanding balance
of such deposits during the three months ended September 30, 2000 as compared to
the same period of the prior year.

Interest expense on borrowings increased $292,000 or 107.4% for the quarter
ended September 30, 2000 compared to the quarter ended September 30, 1999 due to
a $15.3 million or 76.0% increase in the average outstanding balance of FHLB
advances. The average rate paid on borrowings increased from 5.35% for the
quarter ended September 30, 1999 to 6.31% for the quarter ended September 30,
2000.

PROVISION FOR LOAN LOSSES. The Bank provided $5,000 to its allowance for loan
losses for both the quarters ended September 30, 2000 and 1999. Such provisions
were the result of an analysis of the allowance for loan losses in connection
with a review of the Bank's loan portfolio.

At September 30, 2000 and 1999, the Bank's allowance for loan losses amounted to
$1.8 million and $1.9 million or 1.0% and 1.2%, respectively, of the total loan
portfolio.



                                      -12-
<PAGE>   15

A review of the loan portfolio is conducted at least quarterly by management to
determine that the allowance for loan losses is appropriate to absorb estimated
loan losses. In determining the appropriate level of the allowance for loan
losses, consideration is given to general economic conditions, diversification
of loan portfolios, historic loss experience, identified credit problems,
delinquency levels and adequacy of collateral. In consideration of the above,
management has assessed the risks in the loan portfolio and has determined that
no significant changes have occurred during the three months ended September 30,
2000. Thus, the level of the allowance for loan losses is substantially
unchanged from June 30, 2000. Although management believes that the current
allowance for loan losses is appropriate, future additions to the reserve may be
necessary due to changes in economic conditions and other factors. In addition,
as an integral part of their periodic examination, certain regulatory agencies
review the adequacy of the Bank's allowance for loan losses and may direct the
Bank to make additions to the allowance based on their judgement. No such
additions were required to be made during the Company's most recent examination.

OTHER INCOME. Total other income increased by $3,000 or 1.5% to $206,000 for the
quarter ended September 30, 2000 as compared to the same period in 1999. This
was primarily due to a $5,000 increase in gains on the sale of investment
securities held for sale. There were no such gains recorded during the quarter
ended September 30, 1999.

OPERATING EXPENSES. Total operating expenses increased by $23,000 or 2.3% during
the quarter ended September 30, 2000 as compared to the comparable quarter in
1999. This increase was primarily due to a $46,000 increase in other operating
expenses, a $36,000 increase in compensation and benefits expense, a $9,000
increase in professional fees and a $3,000 increase in data processing fees.
These increases were partially offset by a decrease of $39,000 in real estate
owned expense, a $16,000 decrease in federal insurance premiums and a $16,000
decrease in premises and occupancy costs.

INCOME TAX EXPENSE. Income tax expense increased by $9,000 for the quarter ended
September 30, 2000 as compared to the quarter ended September 30, 1999 primarily
as a result of higher pre-tax income partially offset by a decrease in the
effective tax rate from 30.8% for the 1999 quarter to 30.6% for the 2000
quarter. This decrease was primarily due to increased purchases of non-taxable
municipal obligations by the Company during the past year.

FINANCIAL CONDITION AND CAPITAL RESOURCES

Total assets increased by $3.0 million or 1.2% from June 30, 2000 to September
30, 2000. The largest increases were a $2.8 million increase in loans
receivable, net, a $579,000 increase in investment securities available for sale
and a $375,000 increase in FHLB stock. These increases were partially offset by
a $579,000 decrease in interest-earning deposits in other institutions and a
$167,000 decrease in accrued interest receivable. The largest components of
change in liabilities were a $7.5 million increase in FHLB advances and a $1.2
million increase in accrued interest payable partially offset by a $4.5 million
decrease in savings deposits and a $2.0 million decrease in advance deposits by
borrowers for taxes and insurance.



                                      -13-
<PAGE>   16


Under regulations adopted by the Federal Deposit Insurance Corporation ("FDIC"),
the Bank is required to maintain Tier I (Core) capital equal to at least 4% of
the Bank's adjusted total assets, and Tier II (Supplementary) risk-based capital
equal to at least 8% of the risk-weighted assets. At September 30, 2000, the
Bank exceeded all of these requirements, with Tier I and Tier II ratios of 9.28%
and 17.63%, respectively.

The following table sets forth certain information concerning the Bank's
regulatory capital at September 30, 2000.

<TABLE>
<CAPTION>
                                         Tier I        Tier I      Tier II
                                           Core    Risk-Based   Risk-Based
                                        Capital       Capital      Capital
                                        -------       -------      -------
                                           (Dollar amounts in thousands)


<S>                                     <C>           <C>          <C>
Equity capital (1)                      $23,692       $23,692      $23,692
Plus general valuation allowances (2)         -             -        1,764
                                        -------       -------       ------
   Total regulatory capital              23,692        23,692       25,456
Minimum required capital                 10,212         5,776       11,552
                                        -------       -------       ------
   Excess regulatory capital            $13,480       $17,916      $13,904
                                        =======       =======      =======

Minimum required capital to be well
   capitalized under Prompt Corrective
   Action Provisions                    $12,765       $ 8,664      $14,440
                                        =======       =======      =======

Regulatory capital as a percentage (3)     9.28%        16.41%       17.63%
Minimum required capital percentage        4.00          4.00         8.00
                                           ----         -----         ----
   Excess regulatory capital percentage    5.28%        12.41%        9.63%
                                           ====         =====        =====

Minimum required capital percentage
   to be well capitalized under Prompt
   Corrective Action Provisions            5.00%         6.00%       10.00%
                                           ====         =====        =====
</TABLE>


------------------------------
(1)      Represents equity capital of the Bank as reported to the FDIC and the
         Pennsylvania Department of Banking on Form 033 for the three months
         ended September 30, 2000.

(2)      Limited to 1.25% of risk adjusted assets.

(3)      Tier I capital is calculated as a percentage of adjusted total assets
         of $255,304. Tier I and Tier II risk-based capital are calculated as a
         percentage of adjusted risk-weighted assets of $144,397.


IMPACT OF INFLATION AND CHANGING PRICES

The financial statements and related data presented herein have been prepared in
accordance with generally accepted accounting principles, which require the
measurement of financial position and operating results in terms of historical
dollars without considering changes in the relative purchasing power of money
over time due to inflation. Unlike most industrial companies, substantially all
of the assets and liabilities of a financial institution are monetary in nature.
As a result, interest rates have a more significant impact on a financial
institution's performance than the effects of general levels of inflation.
Interest rates do not




                                      -14-
<PAGE>   17

necessarily move in the same direction or in the same magnitude as the prices of
goods and services as measured by the consumer price index.

ACCOUNTING DEVELOPMENTS

SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as
amended by SFAS No. 137, "Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Statement No. 133," and SFAS
No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging
Activities - An Amendment of FASB Statement No. 133," requires that derivative
instruments be carried at fair value on the balance sheet. The statement
continues to allow derivative instruments to be used to hedge various risks and
sets forth specific criteria to be used to determine when hedge accounting can
be used. The statements also provide for offsetting changes in fair value or
cash flows of both the derivative and the hedged asset or liability to be
recognized in earnings in the same period; however, any changes in fair value or
cash flow that represent the ineffective portion of a hedge are required to be
recognized in earnings and cannot be deferred. For derivative instruments not
accounted for as hedges, changes in fair value are required to be recognized in
earnings.

The Company adopted the provisions of this statement as amended as of July 1,
2000. As of September 30, 2000, no such instruments were used by the Company.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the Company's asset and liability management policies as
well as the potential impact of interest rate changes upon the market value of
the Bank's portfolio equity, see "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the 2000 Annual Report to
Stockholders. There has been no material change in the Company's asset and
liability position or market value of portfolio equity since June 30, 2000.

FORWARD LOOKING STATEMENTS

This Form 10-Q contains certain forward-looking statements and information
relating to the Company that are based on the beliefs of management as well as
assumptions made by and information currently available to management. In
addition, in those and other portions of this document, the words "anticipate,"
"believe," "estimate," "except," "intend," "should" and similar expressions, or
the negative thereof, as they relate to the Company or the Company's management,
are intended to identify forward-looking statements. Such statements reflect the
current views of the Company with respect to future looking events and are
subject to certain risks, uncertainties and assumptions. Should one or more of
these risks or uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary from those described herein as anticipated,
believed, estimated, expected or intended. The Company does not intend to update
these forward-looking statements.




                                      -15-
<PAGE>   18



                    LAUREL CAPITAL GROUP, INC. AND SUBSIDIARY

                                     PART II


Item 1.  Legal Proceedings

         The Company is not engaged in any legal proceedings at the present time
         other than those generally associated with the normal course of
         business. In the opinion of management and legal counsel, the
         resolution of these claims are not expected to have a material adverse
         effect on the Company's financial position, liquidity or results of
         operations.

Item 2.  Changes in Securities and Use of Proceeds

         None

Item 3.  Defaults Upon Senior Securities

         None

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

         None

Item 5.  Other Information

         On July 20, 2000, the Company announced its intent to repurchase up to
         100,000 shares or approximately 5.00% of the Company's common stock
         over the next twelve months. As of November 6, 2000, the Company had
         repurchased 48,400 shares.

Item 6.  Exhibits and Reports on Form 8-K

         None





                                      -16-
<PAGE>   19


                                   SIGNATURES

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

LAUREL CAPITAL GROUP, INC.



/s/ Edwin R. Maus
------------------------------------------
Edwin R. Maus
President and Chief Executive Officer



/s/ John A. Howard, Jr.
------------------------------------------
John A. Howard, Jr.
Senior Vice President and
Chief Financial Officer


Date: November 14, 2000






                                                   17