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 December 31, 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 February 12, 2001 was 1,294,654.

There are a total of 14 pages filed in this document.
<PAGE>
                            HFB FINANCIAL CORPORATION

                                   I N D E X
                                   ---------

                                                                        PAGE NO
                                                                        -------

PART I - FINANCIAL INFORMATION

  ITEM  1.  FINANCIAL STATEMENTS

        Consolidated Balance Sheet                                            3

        Consolidated Statement of Income                                      4

        Consolidated Statement of Stockholders' Equity                        5

        Consolidated Statement of Cash Flows                                  6

        Notes to Consolidated Financial Statements                            7

  ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS                  8-12

PART II - OTHER INFORMATION                                                  13

SIGNATURES                                                                   14

                                       2
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                 DECEMBER 31,        JUNE 30,
                                                                    2000               2000
<S>                                                             <C>              <C>
ASSETS
     Cash and cash equivalents                                  $   3,914,860    $   3,171,389
     Trading securities                                               904,460          758,570
     Investment securities
         Available for sale                                        33,813,106       36,672,364
         Held to maturity                                          23,090,025       24,697,115
                                                                -------------    -------------
                Total investment securities                        56,903,131       61,369,479
     Loans                                                        139,321,951      132,038,855
         Allowance for loan losses                                   (680,789)        (645,107)
                                                                -------------    -------------
                Net loans                                         138,641,162      131,393,748
     Premises and equipment                                         4,519,639        3,871,340
     Federal Home Loan Bank stock                                   1,472,900        1,419,700
     Real Estate Owned                                                144,981          345,790
     Interest Receivable                                            1,827,826        1,908,022
     Goodwill                                                         310,790          366,769
     Other assets                                                     130,753          606,061
                                                                -------------    -------------
              Total assets                                      $ 208,770,502    $ 205,210,868
                                                                =============    =============
LIABILITIES
     Deposits
         Interest bearing                                       $ 173,180,901    $ 167,221,697
         Non-interest bearing                                       1,505,526        5,315,314
                                                                -------------    -------------
              Totals                                              174,686,427      172,537,011
     Short term borrowings                                                 --          400,000
     Long term debt                                                12,491,178       12,528,050
     Interest payable                                                 842,303          850,771
     Other liabilities                                              1,234,102          908,629
                                                                -------------    -------------
              Total liabilities                                   189,254,010      187,224,461
                                                                -------------    -------------
STOCKHOLDERS' EQUITY
     Issued and outstanding - 1,576,789 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, 282,228 and 278,935 shares           (2,478,330)      (2,438,366)
     Retained earnings                                             12,381,381       11,843,918
     Accumulated other comprehensive loss                            (178,008)      (1,186,594)
                                                                -------------    -------------
              Total stockholders' equity                           19,516,492       17,986,407
                                                                -------------    -------------
              Total liabilities and stockholders' equity        $ 208,770,502    $ 205,210,868
                                                                =============    =============
</TABLE>
See notes to consolidated financial statements.

                                       3
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                        THREE-MONTHS ENDED                  SIX-MONTHS ENDED
                                                           DECEMBER 31,                        DECEMBER 31,
                                                    2000               1999               2000               1999
INTEREST INCOME
<S>                                             <C>                <C>                <C>                <C>
   Loans receivable                             $ 3,022,776        $ 2,510,638        $ 5,780,987        $ 5,058,302
   Investment securities                            961,053          1,014,096          1,981,056          1,935,231
   Other dividend income                             35,450             32,218             70,522             66,985
   Deposits with financial institutions              25,584             39,086             39,613             41,496
                                                -----------        -----------        -----------        -----------
            Total interest income                 4,044,863          3,596,038          7,872,178          7,102,014
                                                -----------        -----------        -----------        -----------
INTEREST EXPENSE
   Deposits                                       2,214,452          1,878,221          4,377,771          3,645,903
   Short term borrowings                                 --             23,990                 --            104,614
   Long term debt                                   175,109            142,461            349,151            285,266
                                                -----------        -----------        -----------        -----------
            Total interest expense                2,389,561          2,044,672          4,726,922          4,035,783
                                                -----------        -----------        -----------        -----------
NET INTEREST INCOME                               1,655,302          1,551,366          3,145,256          3,066,231
   Provision for loan losses                         22,480                 (2)            44,980           (474,488)
                                                -----------        -----------        -----------        -----------
NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES                       1,632,822          1,551,368          3,100,276          3,540,719
                                                -----------        -----------        -----------        -----------
OTHER INCOME
   Service charges for deposit accounts             161,545             98,009            291,002            192,040
   Other customer fees                               16,556             23,716             33,298             37,636
   Net gain (loss) on trading securities             70,620            (18,532)           132,162            (74,039)
   Net realized gain (loss) on sales of
    available for sale securities                      (671)                --               (671)                --
   Other income                                       3,478              2,185             15,536              8,802
                                                -----------        -----------        -----------        -----------
            Total other income                      251,528            105,378            471,327            164,439
                                                -----------        -----------        -----------        -----------
OTHER EXPENSES
   Salaries and employee benefits                   531,195            530,138          1,048,943          1,021,659
   Net occupancy expenses                            81,356             74,085            169,530            128,514
   Equipment expenses                                98,768             63,839            190,507            114,775
   Data processing fees                              67,090             97,667            134,659            141,292
   Deposit insurance expense                          8,712             22,824             17,418             45,251
   Legal and professional fees                       48,323             43,467            116,054            104,264
   Advertising                                       42,583             69,226             84,236            123,741
   State franchise and deposit taxes                 42,431             35,710             88,317             74,290
   Other expenses                                   275,903            245,283            525,004            483,791
                                                -----------        -----------        -----------        -----------
            Total other expenses                  1,196,361          1,182,239          2,374,668          2,237,577
                                                -----------        -----------        -----------        -----------

INCOME BEFORE INCOME TAX                            687,989            474,507          1,196,935          1,467,581
   Income tax expense                               237,398            119,858            412,634            528,435
                                                -----------        -----------        -----------        -----------
NET INCOME                                      $   450,591        $   354,649        $   784,301        $   939,146
                                                ===========        ===========        ===========        ===========

BASIC EARNINGS PER SHARE                        $      0.35        $      0.32        $      0.61        $      0.85
DILUTED EARNINGS PER SHARE                      $      0.35        $      0.31        $      0.60        $      0.84
</TABLE>
See notes to consolidated financial statements.

                                       4
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                       SIX-MONTHS ENDED DECEMBER 31, 2000
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               ADDITIONAL
                                                     COMMON     PAID-IN       RABBI      TREASURY
                                                     STOCK      CAPITAL       TRUSTS      STOCK
                                                 ---------------------------------------------------
<S>                                               <C>         <C>           <C>        <C>
Balances, June 30, 2000                           $1,574,282  $8,708,790    ($515,623) ($2,438,366)
Net income
Other comprehensive income, net of tax
  Unrealized gain on securities

Comprehensive income

Cash dividend declared ($.19 per share)
Stock issued upon exercise of stock options            4,800      19,200
Purchase of treasury stock (3,293 shares)                                                  (39,964)
                                                 ---------------------------------------------------
BALANCES, DECEMBER 31, 2000                       $1,579,082  $8,727,990    ($515,623) ($2,478,330)
                                                 ===================================================
</TABLE>
<TABLE>
<CAPTION>
Table continued from above

                                                                              ACCUMULATED
                                                   COMPRE-                       OTHER            TOTAL
                                                  HENSIVE        RETAINED     COMPREHENSIVE    STOCKHOLDERS'
                                                  INCOME         EARNINGS     INCOME (LOSS)       EQUITY
                                                -----------------------------------------------------------
<S>                                              <C>            <C>          <C>               <C>
Balances, June 30, 2000                                         $11,843,918  ($1,186,594)      $17,986,407
Net income                                         $784,301         784,301                        784,301
Other comprehensive income, net of tax
  Unrealized gain on securities                   1,008,586                    1,008,586         1,008,586
                                                ------------
Comprehensive income                             $1,792,887
                                                ============

Cash dividend declared ($.19 per share)                            (246,838)                      (246,838)
Stock issued upon exercise of stock options                                                         24,000
Purchase of treasury stock (3,293 shares)                                                          (39,964)
                                                            -----------------------------------------------
BALANCES, DECEMBER 31, 2000                                     $12,381,381    ($178,008)      $19,516,492
                                                            ===============================================
</TABLE>
See notes to consolidated financial statements.

                                       5
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                     SIX-MONTHS ENDED
                                                                        DECEMBER 31,
                                                                    2000          1999
Operating Activities
<S>                                                             <C>            <C>
    Net cash provided by operating activities                   $ 1,257,711    $   810,825
                                                                -----------    -----------
INVESTING ACTIVITIES
    Purchases of securities available for sale                     (500,000)    (6,332,482)
    Proceeds from maturities of securities available for sale     1,340,949      7,451,963
    Purchases of securities held to maturity                             --     (7,874,038)
    Proceeds  from sales of securities available for sale         3,649,998             --
    Proceeds from maturities of securities held to maturity       1,643,580      3,862,471
    Net change in loans                                          (7,269,914)      (733,115)
    Purchases of premises and equipment                            (828,595)      (835,491)
    Acquisition of deposits (net of cash acquired)                       --       (459,423)
                                                                -----------    -----------
       Net cash used by investing activities                     (1,963,982)    (4,920,115)
                                                                -----------    -----------
FINANCING ACTIVITIES
    Net change in
      Non interest-bearing, interest-bearing and
       savings deposits                                           2,149,416      3,291,172
      Certificates of deposit                                            --      8,057,786
      Short term borrowings                                        (400,000)    (3,125,000)
    Repayment of long term debt                                     (36,872)       (34,029)
    Cash dividends                                                 (246,838)      (231,311)
    Proceeds from exercise of options on common stock                24,000         34,998
    Purchase of treasury stock                                      (39,964)            --
                                                                -----------    -----------
       Net cash provided by financing activities                  1,449,742      7,993,616
                                                                -----------    -----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                             743,471      3,884,326

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                    3,171,389      3,573,139
                                                                -----------    -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                        $ 3,914,860    $ 7,457,465
                                                                ===========    ===========

ADDITIONAL CASH FLOWS INFORMATION
    Interest paid                                               $ 4,735,390    $ 3,668,567
    Income tax paid                                                 261,812        600,505
</TABLE>
See notes to consolidated financial statements.

                                       6
<PAGE>
                           HFB FINANCIAL CORPORATION

             Notes to Consolidated Financial Statements (Unaudited)

1.   BASIS OF PRESENTATION

     The  unaudited   consolidated  financial  information  for  the  three  and
     six-month  periods ended December 31, 2000 and 1999 includes the results of
     operations of HFB Financial  Corporation (the "Corporation") 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-Q. It is
     suggested that these  statements and notes be read in conjunction  with the
     financial statements and notes thereto included in the Bank's annual report
     for the year ended June 30, 2000 on Form 10-K 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.   NON-PERFORMING LOANS AND PROBLEM ASSETS

     The  following  sets forth the  activity in the Bank's  allowance  for loan
     losses for the six-months ended December 31, 2000 and 1999:

                                                          (Dollars in thousands)

                                                               2000        1999
                                                               ----        ----

Balance July 1                                               $   645    $ 1,212
Charge offs                                                      (10)      (125)
Recoveries                                                         1          2
Provision for loan losses                                         45       (474)
                                                             -------    -------
Balance December 31                                          $   681    $   615

Information on impaired loans is summarized below

AT DECEMBER 31                                                 2000
                                                               ----

Impaired loans with an allowance                             $   275

Allowance for impaired loans (included in the Company's
    allowance for loan losses)                               $    99

SIX-MONTHS ENDED DECEMBER 31                                   2000
                                                               ----

Average balance of impaired loans                            $   626
Interest income recognized on impaired loans                     209
Cash-basis interest received                                     206

                                       7
<PAGE>
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-Q  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, a Tennessee Corporation, was formed in September 1992
at the direction of Home Federal Bank,  Federal  Savings Bank for the purpose of
becoming a holding company for the Bank as part of its conversion from mutual to
stock form. The Corporation's  primary operation is its investment in the common
stock of 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  regulatory
authorities  influence the Bank's  operations,  so are its liquidity  levels and
capital  resources.  As of December  31,  2000,  management  is not aware of any
current  recommendations  by the regulatory  authorities,  which if implemented,
would have a material effect on the Bank's  operations,  liquidity or resources.

FINANCIAL CONDITION

The  Corporation's  assets  increased by 1.75% to $208.8 million at December 31,
2000 compared to $205.2  million at June 30, 2000. The majority of this increase
is reflected in increases in cash and cash equivalents,  loans and fixed assets.
These  increases  were  financed  primarily  by an increase  in  deposits  and a
decrease in investment securities.

Cash and cash  equivalents  increased by $743,000 to $3.915  million at December
31, 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 Company  maintains  a  portfolio  of trading  account  securities,  which is
comprised of common stock of other  financial  institutions.  The  portfolio was
$904,000 at December  31, 2000  compared to $759,000 at June 30,  2000.  Most of
this  increase was  attributable  to an increase in the fair market value of the
portfolio.

Investment  securities,  available  for sale,  decreased  $2.9  million to $33.8
million at December  31, 2000 from $36.7  million at June 30, 2000 as the result
of the sale of $3.2 million in securities,  net of securities purchased and $1.3
million in securities matured offset by a $1.6 million increase in market value.
Investment securities, held to maturity, decreased $1.6 million to $23.1 million
at  December  31,  2000 from $24.7  million at June 30,  2000 due to

                                       8
<PAGE>
securities  maturing.  The  proceeds  from  sold  and  matured  securities  were
primarily used to fund an increase in the loan portfolio.

Loans,  net,  increased by $7.2  million to $138.6  million at December 31, 2000
from $131.4  million at June 30, 2000 as the result of continued  mortgage  loan
demand and an increase in  participation  loans.  The  Corporation  continues to
maintain a high percentage of its loan portfolio in adjustable-rate  residential
mortgages.

At December  31,  2000,  the  allowance  for loan losses was $681,000 or .49% of
loans  receivable  compared to $645,000 or .49% of loans  receivable at June 30,
2000.

Premises and equipment  increased by $645,000 to $4.520  million at December 31,
2000  from  $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,  purchases of office furniture for the main office,  computer software
and computer hardware.

Total deposits  increased by $2.2 million to $174.7 million at December 31, 2000
from $172.5 million at June 30, 2000.  During the six-months  ended December 31,
2000,  certificates  of deposit  increased $3.0 million,  while NOW accounts and
savings  deposits  decreased  $800,000.  Competition  for  deposits in the local
market  has  become  increasingly  fierce  from  other  banks  primarily  due to
increased loan demand.

Short-term  borrowings  were paid during the six-months  ended December 31, 2000
primarily  due to funds  provided from an increase in deposits and a decrease in
the investment portfolio.

The Bank's regulatory liquidity ratio was 38.6% at December 31, 2000 as compared
to 40.1% at June 30, 2000. At December 31, 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  8.7%,  8.7%  and  17.6%
respectively  at  December  31,  2000  as  compared  to  8.6%,  8.6%  and  18.3%
respectively, at June 30, 2000.

RESULTS OF OPERATIONS FOR THE THREE-MONTHS ENDED DECEMBER 31, 2000 AND 1999

Net income  increased  by $96,000 to $451,000 for the  three-month  period ended
December 31, 2000 from $355,000 for the  three-month  period ended  December 31,
1999.  The primary  reasons  for the  increase  were a $104,000  increase in net
interest  income and a $146,000  increase  in other  income  offset by a $22,000
increase in the provision for loan losses,  a $14,000  increase in other expense
and a $118,000 increase in income tax expense.

Net  interest  income  increased by $104,000  for the  three-month  period ended
December 31, 2000 as compared to the three-month period ended December 31, 1999,
primarily a result of a higher average balance of earning assets.

Interest on loans  increased by $512,000 to $3.023  million for the  three-month
period ended December 31, 2000 as compared to $2.511 million for the three-month
period ended December 31, 1999. This increase is mainly attributable to a higher
weighted-average  balance of loans  receivable  outstanding  and the  receipt of
$125,000 for payment of interest on a non-accruing loan.

Interest on investment securities and other dividend income decreased by $49,000
to $997,000  for the  three-month  period  ended  December  31, 2000 from $1.046
million for the  three-month  period ended  December 31, 1999.  This decrease is
primarily the result of a lower weighted-average balance during the period.

Interest on deposits with other financial  institutions  decreased by $13,000 to
$26,000 for the  three-month  period ended December 3, 2000 from $39,000 for the
three-month  period ended  December 31, 1999  primarily  due to a lower level of
interest-bearing  cash  balances.

Interest  expense on deposits  increased  by $336,000 to $2.214  million for the
three-month  period  ended  December  31,  2000  from  $1.878  million  for  the
three-month  period ended  December 31, 1999 as a result of higher  volume and a
higher cost of funds.

                                       9
<PAGE>
Interest expense on short-term borrowings and long-term debt increased by $9,000
to an aggregate of $175,000 for the  three-month  period ended December 31, 2000
from an  aggregate  of $166,000 for the  three-month  period ended  December 31,
1999, primarily due to a higher level of long-term debt.

The provision for loan losses increased $22,000 for the three-month period ended
December 31, 2000 as compared to the same period in 1999.  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 December 31, 2000 was 0.49%.

Non-interest income increased by $147,000 to $252,000 for the three-month period
ended December 31, 2000 as compared to $105,000 for the same period in 1999. The
increase was primarily attributable to a net increase in realized and unrealized
gains on trading  account  securities  and realized  gains on available for sale
securities of $88,000 and an increase of $64,000 in service charges on deposits.

Non-interest  expense  increased  slightly by $14,000 to $1.196  million for the
three-month period ended December 31, 2000 as compared to $1.182 million for the
same period in 1999.

Occupancy  expense  increased  by $7,000 to $81,000 for the  three-months  ended
December  31, 2000 from  $74,000 for the three  months-ended  December  31, 1999
primarily due to an increase in utilities expense.

Equipment  expense  increased by $35,000 to $99,000 for the  three-months  ended
December  31, 2000 from  $64,000 for the three  months-ended  December  31, 1999
primarily  due  to an  increase  in  depreciation  expense  attributable  to the
addition of fixed assets over the past 12 months.

Data processing fees decreased by $31,000 to $67,000 for the three-month  period
ended December 31, 2000 from $98,000 for the  three-month  period ended December
31, 1999 primarily due to one time costs  associated with the acquisition of the
branch office in Harlan  expensed  during the  three-months  ended  December 31,
1999.

Advertising  expense  decreased  by  $26,000 to $43,000  for the  quarter  ended
December 31, 2000  compared to $69,000 for the quarter  ended  December 31, 1999
primarily due to a lower level of advertising activity in the current period.

Other expenses increased by $31,000 to $276,000 for the three-month period ended
December 31, 2000 from $245,000 for the  three-month  period ended  December 31,
1999,  primarily  due to the  addition of core deposit  intangible  amortization
expense related to the Harlan branch purchase in 1999.

Income tax expense increased by $117,000 to $237,000 for the three-month  period
ended December 31, 2000 compared to $120,000 for the three-months ended December
31, 1999 due a higher level of income.

RESULTS OF OPERATIONS FOR THE SIX-MONTHS ENDED DECEMBER 31, 2000 AND 1999

Net income  decreased  by $155,000 to $784,000  for the  six-month  period ended
December 31, 2000 from  $939,000  for the  six-month  period ended  December 31,
1999. The primary reasons for the decrease were a $519,000 increase in provision
for loan losses and a $137,000  increase  in  non-interest  expense  offset by a
$79,000  increase in net interest  income,  a $307,000  increase in non-interest
income and a $115,000 decrease in income tax expense.

Net interest income increased by $79,000 for the six-month period ended December
31, 2000 as compared to the six-month period ended December 31, 1999,  primarily
as the result of a higher volumes in the period ended December 31, 2000.

Interest on loans  increased  by $723,000  to $5.781  million for the  six-month
period ended  December 31, 2000 as compared to $5.058  million for the six-month
period ended December 31, 1999.  This increase is mainly  attributable to higher
yields and higher volume.

                                       10
<PAGE>
Interest on investment securities and other dividend income increased by $50,000
to $2.052  million for the six-month  period ended December 31, 2000 from $2.002
million for the  six-month  period ended  December 31,  1999.  This  increase is
primarily the result of higher weighted-average balances during the period.

Interest  expense on deposits  increased  by $732,000 to $4.378  million for the
six-month  period ended  December 31, 2000 from $3.646 million for the six-month
period ended December 31, 1999 as a result of higher volume and a higher cost of
funds.

Interest  expense  on short  term  borrowings  and long term debt  decreased  by
$41,000 to an aggregate of $349,000 for the six-month  period ended December 31,
2000 from an aggregate of $390,000 for the six-month  period ended  December 31,
1999 due to lower levels of short-term borrowings.

The provision for loan losses increased  $519,000 for the six-month period ended
December 31, 2000 as compared to the same period in 1999.  This change  actually
reflects an unusual  one-time  recovery in the quarter ended  September 30, 2000
when 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,  net at December 31, 2000
was .49%.

The Bank's  non-interest  income  increased  by  $307,000  to  $471,000  for the
six-month  period  ended  December 31, 2000 as compared to $164,000 for the same
period in 1999.  The  increase  was mainly  attributable  to a net  increase  in
realized and unrealized  gains on trading  account  securities of $206,000 and a
$99,000  increase  in service  charges  for deposit  accounts.  The  increase in
realized and unrealized  gains on trading  account  securities was primarily the
result of an increase in the market value of equity  securities  included in the
trading account portfolio.  The trading account portfolio is comprised of common
stocks of other financial institutions.

Non-interest  expense  increased by $137,000 to $2.375 million for the six-month
period ended December 31, 2000 as compared to $2.238 million for the same period
in 1999.  Compensation  and benefits  increased by $27,000 to $1.049 million for
the six-month  period ended  December 31, 2000 as compared to $1.022 million for
the same period in 1999. This increase is primarily  attributable to annual wage
increases.

Occupancy  expense  increased  by $41,000 to $170,000 for the  six-month  period
ended December 31, 2000 compared to $129,000 for the same period in 1999. as the
Company  incurred  additional  expenses from its new Harlan branch office.  This
increase was primarily due to a $14,000  increase in  depreciation  expense,  an
$11,000  increase in repairs and  maintenance  expense,  an $11,000  increase in
property tax expense and an increase of $5,000 in utilities expense.

Equipment  expense  increased  by $76,000 to $191,000 for the  six-month  period
ended  December 31, 2000 compared to $115,000 for the same period in 1999.  This
increase  was  mainly  the  result of  higher  deprecation  associated  with the
purchase of new furniture and equipment over the past year.

Data  processing  fees decreased by $7,000 to $134,000 for the six-month  period
ended  December 31, 2000 from $141,000 for the six-month  period ended  December
31, 1999 primarily due to one time conversion  expenses  incurred for the Harlan
branch acquisition in the six-months ended December 31, 1999.

Deposit  insurance  expense  decreased  by $28,000 to $17,000 for the  six-month
period  ended  December  31, 2000 from  $45,000 for the  six-month  period ended
December 31, 1999 due to lower deposit premium rates.

Legal and  professional  fees increased by $12,000 to $116,000 for the six-month
period ended  December 31, 2000 from  $104,000  for the  six-month  period ended
December 31, 1999 primarily due to an increase in legal fees.

Advertising  expense  decreased by $40,000 to $84,000 for the  six-month  period
ended  December  31, 2000  compared to $124,000 for the  six-month  period ended
December 31, 1999 due to a lower level of advertising.

                                       11
<PAGE>

Other expenses  increased by $41,000 to $525,000 for the six-month  period ended
December 31, 2000 from $484,000 for the six-month period ended December 31, 1999
primarily as the result of the addition of core deposit intangible  amortization
expense related to the Harlan branch purchase in 1999.

Income tax expense  decreased by $115,000 to $413,000 for the  six-month  period
ended December 31, 2000 compared to $528,000 for the  six-months  ended December
31, 1999 due to a lower level of taxable income.

                                       12
<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

               a.   The  Corporation  held its annual meeting of Stockholders on
                    October 31, 2000.

               b.   Not Applicable

               c.   At the Annual Meeting,  shareholders  voted on the following
                    matters:

                    (1)  The  election of the  following  persons to  three-year
                         terms as directors of the Corporation:

                          Nominees             For              Withheld
                          --------             ---              --------

                          David B. Cook      912,211               999
                          Earl Burchfield    912,211               999

               As a result, all were elected as directors of the Corporation for
               terms to expire in 2003.

                    (2)  The approval of the HFB Financial Corporation Long-term
                         Incentive Compensation Plan:

                               For          Against           Abstain
                               ---          -------           -------
                             880,884        13,086             19,330

               As a result, the HFB Financial  Corporation  Long-term  Incentive
               Compensation  Plan was  Approved  with a total of 163,807  broker
               non-votes.

               d.   Not Applicable

ITEM 5.      OTHER INFORMATION

                 None

ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K

                 a.   Exhibits

                      None

b.          Reports on Form 8-K

                     None

                                       13
<PAGE>
                            HFB FINANCIAL CORPORATION

                                   Signatures

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  in 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: February 12, 2001

                                       14