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

                                 FORM 10-QSB

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

                For the quarterly period ended September 30, 2000

                                       OR

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

                           Commission File No. 0-20956

                            HFB FINANCIAL CORPORATION

A Tennessee Corporation                                         I.R.S. Employer
                                                                Identification
                                                                No. 61-1228266

Address                                                        Telephone Number
-------                                                        ----------------

1602 Cumberland Avenue                                         (606) 248-1095
Middlesboro, Kentucky 40965

Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15(d) of the  Securities  and  Exchange  Act of 1934 during the
preceding  twelve  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 of the  registrant's $1 par value common stock  outstanding
at November 10, 2000 was 1,296,947.

There are a total of 13 pages filed in this document.
<PAGE>

                            HFB FINANCIAL CORPORATION

                                    I N D E X

                                                                        PAGE NO
PART 1 - FINANCIAL INFORMATION


     ITEM 1.    FINANCIAL STATEMENTS
                                                                              3
                Consolidated Balance sheet

                Consolidated Statement of Income                              4

                Consolidated Statement of Stockholders' Equity                5

                Consolidated Statement of Cash Flows                          6

                Notes to Consolidated Financial Statements                  7-8

       ITEM 2.  MANAGEMENT'S' DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS              9-11

PART 11 - OTHER INFORMATION                                                  12

SIGNATURES                                                                   13

                                       2
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                               SEPTEMBER 30,          JUNE 30,
                                                                    2000                2000
ASSETS
<S>                                                                 <C>                 <C>
     Cash and cash equivalents                                      $3,964,843          $3,171,389
     Trading securities                                                825,116             758,570
     Investment securities
        Available for sale                                          37,175,004          36,672,364
        Held to maturity                                            24,128,142          24,697,115
                                                              -----------------    ----------------
             Total investment securities                            61,303,146          61,369,479
     Loans                                                         134,417,249         132,038,855
        Allowance for loan losses                                    (662,903)           (645,107)
                                                              -----------------    ----------------
             Net loans                                             133,754,346         131,393,748
     Premises and equipment                                          4,395,250           3,871,340
     Federal Home Loan Bank stock                                    1,445,700           1,419,700
     Real estate owned                                                 209,149             345,790
     Interest receivable                                             1,587,832           1,908,022
     Goodwill                                                          338,200             366,769
     Other Assets                                                      185,523             606,061
                                                              -----------------    ----------------
             Total assets                                         $208,009,105        $205,210,868
                                                              =================    ================

LIABILITIES
     Deposits
        Interest bearing                                          $172,007,300        $167,221,697
        Non-interest bearing                                         1,576,648           5,315,314
                                                              -----------------    ----------------
     Totals                                                        173,583,948         172,537,011
     Short term borrowings                                             875,000             400,000
     Long term debt                                                 12,509,798          12,528,050
     Interest payable                                                1,754,983             850,771
     Other liabilities                                                 878,148             908,629
                                                              -----------------    ----------------
             Total liabilities                                     189,601,877         187,224,461
                                                              -----------------    ----------------

STOCKHOLDERS' EQUITY
     Issued and outstanding - 1,579,082 and 1,574,282 shares         1,579,082           1,574,282
     Additional paid-in capital                                      8,727,990           8,708,790
     Less: Common stock acquired by Rabbi trusts for deferred
                Compensation plans                                   (515,623)           (515,623)
     Treasury stock, at cost, 279,935 and 278,935 shares           (2,450,240)         (2,438,366)
     Retained earnings                                              11,930,790          11,843,918
     Accumulated other comprehensive loss                            (864,771)         (1,186,594)
                                                              -----------------    ----------------
          Total stockholders' equity                                18,407,228          17,986,407
                                                              -----------------    ----------------
          Total liabilities and stockholders' equity              $208,009,105        $205,210,868
                                                              =================    ================
</TABLE>
See notes to consolidated financial statements

                                       3
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                          THREE-MONTHS ENDED
                                                                                            SEPTEMBER 30,
                                                                                        2000             1999
INTEREST INCOME
<S>                                                                                    <C>               <C>
   Loans receivable                                                                    $2,758,211        $2,547,663
   Investment securities                                                                1,048,091           945,746
   Other dividend income                                                                    6,984            10,156
   Deposits with financial institutions                                                    14,029             2,411
                                                                                   ---------------  ---------------
            Total interest income                                                       3,827,315         3,505,976
                                                                                   ---------------  ----------------
INTEREST EXPENSE
   Deposits                                                                             2,163,320         1,767,682
   Short term borrowings                                                                    1,540            80,624
   Long term debt                                                                         172,501           142,805
                                                                                   ---------------  ----------------
            Total interest expense                                                      2,337,361         1,991,111
                                                                                   ---------------  ----------------

NET INTEREST INCOME                                                                     1,489,954         1,514,865
   Provision for loan losses                                                               22,500         (474,486)
                                                                                   ---------------  ----------------
NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES                                                             1,467,454         1,989,351
                                                                                   ---------------  ----------------
OTHER INCOME
   Service charges for deposit accounts                                                   129,457            94,031
   Other customer fees                                                                     16,742            13,919
   Net gain (loss) on trading securities                                                   61,543          (55,506)
   Other income                                                                            12,057             6,617
                                                                                   ---------------  ----------------
            Total other income                                                            219,799            59,061
                                                                                   ---------------  ----------------
OTHER EXPENSES
   Salaries and employee benefits                                                         517,748           491,522
   Net occupancy expenses                                                                  88,175            54,429
   Equipment expenses                                                                      91,738            50,936
   Data processing fees                                                                    67,569            43,625
   Deposit insurance expense                                                                8,705            22,427
   Legal and professional fees                                                             67,731            60,797
   Advertising                                                                             41,653            54,515
   State franchise and deposit taxes                                                       45,886            38,580
   Other expenses                                                                         249,102           238,507
                                                                                   ---------------  ----------------
            Total other expenses                                                        1,178,307         1,055,338
                                                                                   ---------------  ----------------
INCOME BEFORE INCOME TAX                                                                  508,946           993,074
   Income tax expense                                                                     175,236           408,577
                                                                                   ---------------  ----------------
NET INCOME                                                                               $333,710          $584,497
                                                                                   ===============  ================

BASIC EARNINGS PER SHARE                                                                    $0.26             $0.44
DILUTED EARNINGS PER SHARE                                                                  $0.26             $0.44
</TABLE>
See notes to consolidated financial statements.

                                       4
<PAGE>

                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                      THREE-MONTHS ENDED SEPTEMBER 30, 2000
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                                         ACCUMULATED
                                           ADDITIONAL                                                       OTHER         TOTAL
                                   COMMON   PAID-IN     RABBI      TREASURY   COMPREHENSIVE  RETAINED    COMPREHENSIVE STOCKHOLDERS'
                                   STOCK    CAPITAL     TRUSTS        STOCK       INCOME     EARNINGS    INCOME (LOSS)    EQUITY
                                ---------------------------------------------------------------------------------------------------
<S>                             <C>        <C>        <C>         <C>           <C>        <C>           <C>           <C>
BALANCES, JUNE 30, 2000         $1,574,282 $8,708,790 $(515,623)  $(2,438,366)             $11,843,918   $(1,186,594)  $17,986,407

Net income                                                                      $333,710       333,710                     333,710

Other Comprehensive income,
   net of tax

Unrealized gain on securities                                                    321,823                     321,823       321,823
                                                                                --------

Comprehensive Income                                                            $655,533
                                                                                ========

Cash dividends declared
    ($.19 per share)                                                                          (246,838)                   (246,838)

Stock issued upon exercise
   of stock options                 4,800      19,200                                                                       24,000

Purchase of treasury stock
   (1,000 shares)                                                     (11,874)                                             (11,874)
                                ----------------------------------------------             ----------------------------------------
BALANCES, SEPTEMBER 30, 2000    $1,579,082 $8,727,990 $(515,623)  $(2,450,240)             $11,930,790     $(864,771)  $18,407,228
                                ==============================================             ========================================
</TABLE>
                                       5
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                  THREE-MONTHS ENDED
                                                                     SEPTEMBER 30,
                                                                  2000          1999
OPERATING ACTIVITIES
<S>                                                           <C>            <C>
    Net cash provided by operating activities                 $ 1,899,953    $ 1,658,218
                                                              -----------    -----------
INVESTING ACTIVITIES
  Purchases of securities available for sale                     (500,000)    (1,433,217)
  Proceeds from maturities of securities available for sale       527,877      1,107,699
  Purchases of securities held to maturity                             --     (1,490,313)
  Proceeds from maturities of securities held to maturity         588,998      1,071,853
  Net change in loans                                          (2,383,098)     3,014,166
  Purchases of premises and equipment                            (609,249)      (527,127)
                                                              -----------    -----------
    Net cash used by investing activities                      (2,375,472)     1,743,061
                                                              -----------    -----------
FINANCING ACTIVITIES
  Net change in
    Non interest-bearing, interest-bearing and
      savings deposits                                           (879,180)       264,855
    Certificates of deposit                                     1,926,117     (1,919,404)
    Short term borrowings                                         475,000       (975,000)
  Repayment of long-term debt                                     (18,252)       (16,844)
  Proceeds from exercise of options on common stock                24,000             --
  Purchase of treasury stock                                      (11,874)            --
  Cash dividends                                                 (246,838)      (231,207)
                                                              -----------    -----------
    Net cash provided by financing activities                   1,268,973     (2,877,600)
                                                              -----------    -----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                           793,454        523,679

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                  3,171,389      3,573,139
                                                              -----------    -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                      $ 3,964,843    $ 4,096,818
                                                              ===========    ===========
ADDITIONAL CASH FLOWS INFORMATION
  Interest paid                                               $ 1,433,149    $ 1,141,498
  Income tax paid                                                   1,812        130,505
</TABLE>
See notes to consolidated financial statements.

                                       6
<PAGE>
                            HFB FINANCIAL CORPORATION

        Notes to Condensed Consolidated Financial Statements (Unaudited)

1.   BASIS OF PRESENTATION

         The unaudited  consolidated  financial  information for the three month
         periods  ended  September  30,  2000 and 1999  includes  the results of
         operations of HFB Financial  Corporation (the "Company") and its wholly
         owned  subsidiary  Home  Federal  Bank,  Federal  Savings  Bank  ("Home
         Federal"  or  the  "Bank").   The  accompanying   unaudited   financial
         statements  have been prepared in accordance  with  generally  accepted
         accounting  principles  for interim  financial  statements and with the
         instructions to Form 10-QSB.  These statements and notes should be read
         in conjunction with the financial statements and notes thereto included
         in the Company's annual report for the year ended June 30, 2000 on Form
         10-KSB filed with the Securities and Exchange Commission.

         In the opinion of management,  the financial  information  reflects all
         adjustments  (consisting only of normal recurring  adjustments),  which
         are necessary for a fair  presentation of the results of operations for
         such periods but should not be  considered as indicative of results for
         a full year.

2.   ACCOUNTING CHANGES

         In June 1998, the Financial Accounting Standards Board issued Statement
         No. 133, Accounting for Derivative  Instruments and Hedging Activities.
         This  statement  establishes  accounting  and  reporting  standards for
         derivative   instruments,   including  certain  derivative  instruments
         embedded in other contracts  (collectively  referred to as derivatives)
         and for hedging  activities.  It requires that an entity  recognize all
         derivatives  as either assets or  liabilities  in its balance sheet and
         measure  those  instruments  at fair value.  Under this  statement,  an
         entity that elects to apply hedge  accounting  is required to establish
         at the  inception of the hedge the method it will use for assessing the
         effectiveness  of the hedging  derivative and the measurement  approach
         for determining the ineffective aspect of the hedge. Those methods must
         be  consistent  with the  entity's  approach  to  managing  risk.  This
         statement is effective  for all fiscal years  beginning  after June 15,
         2000.  The Bank had no  derivatives  as of September 30, 2000, nor does
         the  Bank  engage  in any  hedging  activities.  The  Company  does not
         anticipate  that the  adoption  of SFAS No.  133 will  have a  material
         impact on the Company's financial position or results of operations

3.   NONPERFORMING ASSETS AND PROBLEM ASSETS

         The following sets forth the activity in the Bank's  allowance for loan
         losses for the three-months ended September 30, 2000 and 1999:

                                                  (Dollars in thousands)

                                                       2000            1999
                                                       ----            ----

           Balance July 1                              $645          $1,212
           Charge offs                                   (6)            (92)
           Recoveries                                     1               1
           Provision for loan losses                     23            (474)
                                                        ---           -----
           Balance September 30                        $663            $647

           Information on impaired loans is summarized below

                                       7
<PAGE>

           AT SEPTEMBER 30                                               2000
                                                                         ----
           Impaired loans with an allowance                            $1,507

           Allowance for impaired loans (included in the Company's       $302
               Allowance for loan losses)

           THREE-MONTHS ENDED SEPTEMBER                                  2000
                                                                         ----
           Average balance of impaired loans                           $1,507
           Interest income recognized on impaired loans                    $0
           Cash-basis interest received                                    $0

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain  matters   discussed  in  this  Quarterly  Report  on  Form  10-QSB  are
"forward-looking  statements"  intended  to qualify  for the safe  harbors  from
liability  established by the Private Securities  Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the  statement  will  include  words such as the Company  "believes",
"anticipates",  "expects",  "estimates" or words of similar  import.  Similarly,
statements  that  describe the Company's  future plans,  objectives or goals are
also forward-looking  statements. Such forward-looking statements are subject to
certain risks and  uncertainties  which are described in close proximity to such
statements and which could cause actual results to differ  materially from those
anticipated as of the date of this report. Shareholders, potential investors and
other  readers  are  urged  to  consider   these   factors  in  evaluating   the
forward-looking statements and are cautioned not to place undue reliance on such
forward-looking  statements.  The forward-looking statements included herein are
only made as of the date of this report and the Company undertakes no obligation
to publicly update such forward-looking  statements to reflect subsequent events
or circumstances.

GENERAL:

HFB Financial  Corporation is the holding company of Home Federal Bank,  Federal
Savings Bank a federal stock savings bank located in Middlesboro,  Kentucky. The
Corporation's  primary  operation is its'  investment in the common stock of the
Bank. All references to the Corporation include the Bank.

The Bank is principally  engaged in the business of accepting  deposits from the
general public and originating  permanent loans which are secured by one-to-four
family  residential  properties  located  in its  market  area.  The  Bank  also
originates  consumer  loans and  commercial  real estate loans,  and maintains a
substantial   investment  portfolio  of  mortgage-backed  and  other  investment
securities.

The  operations  of  Home  Federal,  and  savings  institutions  generally,  are
significantly  influenced by general  economic  conditions  and the monetary and
fiscal policies of government  regulatory  agencies.  Deposit flows and costs of
funds are influenced by interest rates on competing  investments  and prevailing
market  rates of  interest.  Lending  activities  are affected by the demand for
financing real estate and other types of loans,  which in turn are influenced by
the  interest  rates at which such  financing  may be offered and other  factors
related  to loan  demand  and the  availability  of  funds.  Just as the  Bank's
operations are influenced by regulatory authorities, so are its liquidity levels
and capital resources.

Home  Federal  Bank  has  branch  offices  in  Harlan,  Kentucky  and  Tazewell,
Tennessee.

                                       8
<PAGE>
FINANCIAL CONDITION

The  Corporation's  assets increased by 1.36% to $208.0 million at September 30,
2000 compared to $205.2 million at June 30, 2000.

Cash and cash  equivalents  increased by $793,000 to $3.964 million at September
30, 2000 from $3.171  million at June 30, 2000.  This increase was primarily due
to a larger  uncollected  balance at the Bank's clearing  account at the Federal
Reserve Bank.

The Corporation  maintains a portfolio of trading-account  securities,  which is
comprised of common stock of other  financial  institutions.  The balance of the
portfolio  was $825,000 at September  30, 2000  compared to $759,000 at June 30,
2000. Most of this increase was  attributable to an increase in the market value
of the underlying securities.

The Corporation's loan portfolio  increased by $2.4 million to $134.4 million at
September  30, 2000 from  $132.0  million at June 30, 2000 due to an increase in
loan demand. The Corporation continues to maintain a high percentage of its loan
portfolio in adjustable-rate residential mortgages.

At September  30, 2000,  the  allowance  for loan losses was $663,000 or .49% of
loans  receivable  compared to $645,000 or .49% of loans  receivable at June 30,
2000.

Premises and equipment  increased by $524,000 to $4.395 million at September 30,
2000 compared to $3.871 million at June 30, 2000,  primarily due to the $437,000
purchase of real estate  which  houses the  recently  acquired  branch in Harlan
Kentucky.

Total deposits increased by $1.0 million to $173.5 million at September 30, 2000
from $172.5 million at June 30, 2000.  During the  three-months  ended September
30, 2000, certificates of deposit increased $1.9 million, while NOW accounts and
savings  deposits  decreased  $900,000.  Competition  for  deposits in the local
market  has  become  increasingly  fierce  from  other  banks  primarily  due to
increased loan demand.

Short- term borrowings increased $475,000 to $875,000 at September 30, 2000 from
$400,000 at June 30, 2000 primarily due to a larger  uncollected  balance in the
Bank's account at the Federal Reserve Bank.

The  Bank's  regulatory  liquidity  ratio was  40.0% at  September  30,  2000 as
compared to 40.1% at June 30, 2000.  At September  30, 2000 the Bank met all the
regulatory  capital  requirements to be considered "well capitalized" under bank
regulations.  Tangible,  core and risk-based  capital ratios were 8.4%, 8.4% and
17.9%  respectively  at September  30, 2000 as compared to 8.6%,  8.6% and 18.3%
respectively, at June 30, 2000.

RESULTS OF OPERATIONS FOR THE THREE-MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

Net income  decreased by $250,000 to $334,000 for the  three-month  period ended
September 30, 2000 from $584,000 for the three-month  period ended September 30,
1999.  The  primary  reasons  for the  decrease  were a $25,000  decrease in net
interest income, a $497,000  increase in provision for loan losses,  an increase
of  $161,000 in  non-interest  income,  an increase of $123,000 in  non-interest
expense, and a $233,000 decrease in income tax expense.

Net  interest  income  decreased  by $25,000 for the  three-month  period  ended
September  30, 2000 as compared to the  three-month  period ended  September 30,
1999,  primarily as the result of higher  interest  paid on deposits  during the
quarter  ended  September  30, 2000 and the  recognition  of interest  income on
several non-accrual loans during the quarter ended September 30, 1999.

Interest on loans  increased by $210,000 to $2.758  million for the  three-month
period  ended  September  30,  2000  as  compared  to  $2.548  million  for  the
three-month   period  ended   September  30,  1999.   This  increase  is  mainly
attributable  to a higher volume of loans during the quarter ended September 30,
2000. The effect of the increase was mitigated by the collection and recognition
of $55,000 in interest  income on  non-accrual  loans  during the quarter  ended
September 30, 1999.

                                       9
<PAGE>

Interest on investment securities and other dividend income increased by $99,000
to $1.055  million for the  three-month  period  ended  September  30, 2000 from
$956,000 for the  three-month  period ended September 30, 1999. This increase is
primarily the result of higher average balances during the period.

Interest on deposits with other financial  institutions  increased by $12,000 to
$14,000 for the three-month  period ended September 30, 2000 from $2,000 for the
three-month  period ended  September 30, 1999 primarily due to a higher level of
interest-bearing cash balances.

Interest on deposits increased by $395,000 to $2.163 million for the three-month
period ended September 30, 2000 from $1.768 million for the  three-month  period
ended  September  30,  1999 as a result of higher  volumes  and a higher cost of
funds.

Interest on short term  borrowings  and long term debt  decreased  by $49,000 to
$174,000 for the  three-month  period ended September 30, 2000 from $223,000 for
the three-month period ended September 30, 1999 primarily due to lower levels of
short-term  borrowing.  Short-term  borrowings have decreased $4.6 million since
the quarter ended September 30, 1999.

The  provision for loan losses  increased  $497,000 for the  three-month  period
ended  September  30, 2000 as  compared  to the same period in 1999.  During the
quarter  ended  September  30, 1999, a total of $904,000 of impaired  loans were
paid off.  The amount  charged off for those loans was  significantly  less than
what was  specifically  reserved  for these  loans and  resulted  in a  $474,000
reduction in the overall allowance. The provision was the result of Management's
evaluation  of  the  adequacy  of  the  allowance  for  loan  losses   including
consideration of recoveries of loans previously  charged off, the perceived risk
exposure  among loan  types,  actual loss  experience,  delinquency  rates,  and
current economic  conditions.  The Bank's allowance for loan losses as a percent
of total loans at September 30, 2000 was .49%.

The Corporation's  non-interest income increased by $161,000 to $220,000 for the
three-month  period ended September 30, 2000 as compared to $59,000 for the same
period in 1999.  The  increase  was  primarily  attributable  to an  increase in
trading  account  realized and  unrealized  gains of $117,000 and an increase of
$35,000 in service charges on deposit accounts.  The Corporation has a portfolio
of approximately  $1.0 million in common stock of other financial  institutions.
The market value of these stocks has  fluctuated  substantially  during the past
year, due to market volatility.

Non-interest expense increased by $123,000 to $1.178 million for the three-month
period  ended  September  30, 2000 as  compared  to $1.055  million for the same
period in 1999.  Compensation and benefits  increased by $26,000 to $518,000 for
the three-month  period ended September 30, 2000 as compared to $492,000 for the
same  period in 1999.  This  increase  is  primarily  attributable  to a general
increase in salaries and wages.

Occupancy  expense  increased by $34,000 to $88,000 for the  three-month  period
ended  September  30,  2000  compared  to $54,000  for the same  period in 1999,
primarily due to the increased  costs related to the new branch office in Harlan
and the new operations center in Middlesboro.

Equipment  expense  increased by $41,000 to $92,000 for the  three-month  period
ended  September  30,  2000  compared  to $51,000  for the same  period in 1999,
primarily due to the increased  depreciation  expense related to the purchase of
new  computer   equipment  and  equipment  for  the  new  operations  center  in
Middlesboro.

Data processing fees increased by $24,000 to $68,000 for the three-month  period
ended September 30, 2000 from $44,000 for the three-month period ended September
30,  1999,  primarily  due to increased  costs for the new Harlan  office and an
increased level of service provided.

Deposit  insurance  premiums  decreased  $14,000 to $8,000  for the  three-month
period ended  September 30, 2000 from $22,000 for the  three-month  period ended
September 30, 1999 as the result of a premium reduction in deposit insurance.

                                       10
<PAGE>

Legal and  professional  fees increased by $7,000 to $68,000 for the three-month
period ended  September 30, 2000 from $61,000 for the  three-month  period ended
September 30, 1999,  primarily due to legal  assistance in the Company's  recent
listing on the Nasdaq SmallCap Market.

Advertising  expense decreased by $13,000 to $42,000 for the three-month  period
ended  September  30, 2000 as compared  to $55,000  for the  three-months  ended
September  30, 1999,  primarily due to a lower level of  advertising  during the
period.

State franchise and deposit taxes increased by $7,000 to $46,000 for the quarter
ended September 30, 2000 compared to $39,000 for the quarter ended September 30,
1999 primarily due to a higher level of deposits.

Other expenses increased by $10,000 to $249,000 for the three-month period ended
September 30, 2000 from $239,000 for the three-month  period ended September 30,
1999 with no major change in any specific category.

Income tax expense decreased by $233,000 to $175,000 for the three-month  period
ended  September  30,  2000  compared  to $408,000  for the  three-months  ended
September 30, 1999 due to lower earnings.

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<PAGE>
                            HFB FINANCIAL CORPORATION

                                     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

             a. Exhibits

                Thefollowing  exhibit  is  filed  as part of  this  Form  10-QSB
                   Exhibit 27 - Financial Data Schedule

             b. Reports on Form 8-K

                None

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<PAGE>
                            HFB FINANCIAL CORPORATION

                                   Signatures

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



                                     HFB FINANCIAL CORPORATION

                                    By: /s/ David B. Cook
                                        -----------------
                                        David B. Cook
                                        President and
                                        Chief Executive Officer



                                    By: /s/ Stanley Alexander, Jr.
                                        -------------------------
                                        Stanley Alexander, Jr.
                                        Chief Financial Officer


Dated: November 10, 2000

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