U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 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 March 31, 1997

[ ] 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  333-23505
                                                   -----------

                                SFB BANCORP, INC
             ------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)


                      Tennessee                           Applied for
--------------------------------------------     -------------------------------
State or other jurisdiction of incorporation     (I.R.S. Employer Identification
                or organization)                            Number)



    632 East Elk Avenue  Elizabethton, Tennessee                     37643
--------------------------------------------------                 ----------
     (Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code: (423) 543-3518
                                                    --------------

         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.

                                   X  Yes      No
                                  ---      ---

         As of May 20,  1997,  there were no shares of the  Registrant's  common
stock,  par value  $0.10 per share,  outstanding.  The  Registrant  has no other
classes of common equity outstanding.

         Transitional small business disclosure format:

                                      Yes   X  No
                                  ---      ---


                                       1
<PAGE>








                                SFB BANCORP, INC.
                                 AND SUBSIDIARY

                             Elizabethton, Tennessee

                                      Index

PART I.                                                              Page(s)
-------                                                              -------

FINANCIAL INFORMATION

Item 1.

Financial Statements....................................................3

PART II.
--------

OTHER INFORMATION

Item 1.  Legal Proceedings..............................................4

Item 2.  Changes in Securities..........................................4

Item 3.  Defaults Upon Senior Securities................................4

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

Item 5.  Other Information..............................................4

Item 6.  Exhibits and Reports on Form 8-K...............................4

Signatures..............................................................5

                                       2
<PAGE>






                             PART I - NOT APPLICABLE

The  information  as  required  by Part 1 of the Form  10-QSB  has been  omitted
because  the  conversion  from  the  mutual  to  stock  form of  ownership  (the
"Conversion"),  as described in the Form SB -2 (file no. 333-23505), has not yet
occurred.  It is anticipated  that the Conversion  will be completed on or about
June 1, 1997.

                                       3
<PAGE>






Part II.                       OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

            None

Item 2.  Changes in Securities
         ---------------------

            None

Item 3.  Defaults Upon Senior Securities
         -------------------------------

            None

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

           None

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

            None

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

             99     Financial Statements of Security Federal Savings Bank

            No reports on Form 8-K were filed during the quarter ended March 31,
            1997.

                                       4
<PAGE>






                                   SIGNATURES

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

                                         SFB Bancorp, Inc.

Date:           May 20, 1997             By /s/ Peter W. Hampton
          --------------------------        --------------------
                                                Peter W. Hampton
                                                (President)

Date:           May 20, 1997             By /s/ Bobby Hyatt
          --------------------------        ---------------
                                                Bobby Hyatt
                                                (Principal Accounting Officer)

                                       5