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 March 31, 2001OR

              [ ] 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 May 14, 2001 was 1,296,854.

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>
                                                                   MARCH 31,         JUNE 30,
                                                                     2001              2000
ASSETS
<S>                                                             <C>              <C>
     Cash and cash equivalents                                  $   8,680,174    $   3,171,389
     Trading securities                                               932,601          758,570
     Investment securities
         Available for sale                                        33,434,569       36,672,364
         Held to maturity                                          21,206,819       24,697,115
                                                                -------------    -------------
                Total investment securities                        54,641,388       61,369,479
     Loans                                                        140,704,924      132,038,855
         Allowance for loan losses                                   (699,352)        (645,107)
                                                                -------------    -------------
                Net loans                                         140,005,572      131,393,748
     Premises and equipment                                         4,577,449        3,871,340
     Federal Home Loan Bank stock                                   1,500,600        1,419,700
     Real Estate Owned                                                 25,627          345,790
     Interest Receivable                                            1,901,649        1,908,022
     Goodwill                                                         284,538          366,769
     Other assets                                                     192,108          606,061
                                                                -------------    -------------
              Total assets                                      $ 212,741,706    $ 205,210,868
                                                                =============    =============

LIABILITIES
     Deposits
         Interest bearing                                       $ 175,525,196    $ 167,221,697
         Non-interest bearing                                       1,809,231        5,315,314
                                                                -------------    -------------
              Totals                                              177,334,427      172,537,011
     Short term borrowings                                                  0          400,000
     Long term debt                                                12,472,180       12,528,050
     Interest payable                                               1,636,548          850,771
     Other liabilities                                              1,428,874          908,629
                                                                -------------    -------------
              Total liabilities                                   192,872,029      187,224,461
                                                                -------------    -------------

STOCKHOLDERS' EQUITY
     Issued and outstanding - 1,579,582 and 1,574,282 shares        1,579,582        1,574,282
     Additional paid-in-capital                                     8,729,990        8,708,790
     Less: Common stock acquired by Rabbi trusts for deferred
                 compensation plans                                  (515,623)        (515,623)
     Treasury stock, at cost, 282,728 and 278,935 shares           (2,484,267)      (2,438,366)
     Retained earnings                                             12,461,082       11,843,918
     Accumulated other comprehensive loss                              98,913       (1,186,594)
                                                                -------------    -------------
              Total stockholders' equity                           19,869,677       17,986,407
                                                                -------------    -------------
              Total liabilities and stockholders' equity        $ 212,741,706    $ 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                   NINE-MONTHS ENDED
                                                                 MARCH 31,                             MARCH 31,
                                                           2001              2000                2001            2000
INTEREST INCOME
<S>                                                      <C>              <C>                <C>              <C>
   Loans receivable                                      $2,971,662       $ 2,594,545        $ 8,752,650      $ 7,652,846
   Investment securities                                    890,081         1,007,135          2,871,137        2,942,367
   Other dividend income                                     34,744            30,928            105,266           97,913
   Deposits with financial institutions                      41,923            24,982             81,536           66,478
                                                     ---------------  ----------------    --------------- ----------------
            Total interest income                         3,938,410         3,657,590         11,810,589       10,759,604
                                                     ---------------  ----------------    --------------- ----------------
INTEREST EXPENSE
   Deposits                                               2,230,252         1,898,386          6,608,024        5,544,290
   Short term borrowings                                        225             5,462              4,746          110,764
   Long term debt                                           168,660           146,494            513,290          431,071
                                                     ---------------  ----------------    --------------- ----------------
            Total interest expense                        2,399,137         2,050,342          7,126,060        6,086,125
                                                     ---------------  ----------------    --------------- ----------------

NET INTEREST INCOME                                       1,539,273         1,607,248          4,684,529        4,673,479
   PROVISION FOR LOAN LOSSES                                 30,000            15,000             74,980         (459,488)
                                                     ---------------  ----------------    --------------- ----------------
NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES                               1,509,273         1,592,248          4,609,549        5,132,967
                                                     ---------------  ----------------    --------------- ----------------
OTHER INCOME
   Service charges for deposit accounts                     163,315            94,773            454,317          286,814
   Other customer fees                                       26,548            10,617             59,846           48,252
   Net gain (loss) on trading securities                     22,656          (112,660)           154,818         (186,699)
   Net realized loss on sales of
    available for sale securities                                 -                 -               (670)               -
   Other income                                               3,212             1,821             18,748           10,623
                                                     ---------------  ----------------    --------------- ----------------
            Total other income                              215,731            (5,449)           687,059          158,990
                                                     ---------------  ----------------    --------------- ----------------
OTHER EXPENSES
   Salaries and employee benefits                           576,377           546,490          1,625,320        1,568,149
   Net occupancy expenses                                    78,455            81,961            247,985          210,475
   Equipment expenses                                       104,768            68,793            295,275          183,568
   Data processing fees                                      60,747            64,803            195,406          206,095
   Deposit insurance expense                                  8,520             8,136             25,938           53,386
   Legal and professional fees                               53,124            74,158            169,178          178,422
   Advertising                                               58,588            49,951            142,823          173,692
   State franchise and deposit taxes                         40,885            19,818            129,202           94,108
   Other expenses                                           251,793           202,788            776,798          686,579
                                                     ---------------  ----------------    --------------- ----------------
            Total other expenses                          1,233,257         1,116,898          3,607,925        3,354,474
                                                     ---------------  ----------------    --------------- ----------------

INCOME BEFORE INCOME TAX                                    491,747           469,901          1,688,683        1,937,483
   Income tax expense                                       165,645           134,984            578,279          663,419
                                                     ---------------  ----------------    --------------- ----------------
NET INCOME                                                $ 326,102         $ 334,917        $ 1,110,404      $ 1,274,064
                                                     ===============  ================    =============== ================

BASIC EARNINGS PER SHARE                                     $ 0.25            $ 0.25             $ 0.86           $ 0.96
DILUTED EARNINGS PER SHARE                                   $ 0.25            $ 0.25             $ 0.85           $ 0.96
</TABLE>
See notes to consolidated financial statements.

                                       4

<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                        NINE-MONTHS ENDED MARCH 31, 2001
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                                         ACCUMULATED
                                             ADDITIONAL                           COMPRE-                   OTHER          TOTAL
                                   COMMON     PAID-IN     RABBI      TREASURY     HENSIVE   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                                                                       $1,110,404   1,110,404                  1,110,404

Other comprehensive income,
   net of tax

  Unrealized gain on securities                                                   1,285,507                1,285,507     1,285,507
                                                                                 -----------

Comprehensive income                                                             $2,395,911
                                                                                 ===========

Cash dividend declared
   ($.38 per share)                                                                            (493,240)                  (493,240)

Stock issued upon exercise of
   stock options                       5,300      21,200                                                                    26,500

Purchase of treasury stock
   (3,793 shares)                                                        (45,901)                                          (45,901)
                                -------------------------------------------------           ---------------------------------------

BALANCES, MARCH 31, 2001          $1,579,582  $8,729,990  ($515,623) ($2,484,267)           $12,461,082      $98,913   $19,869,677
                                =================================================           =======================================
</TABLE>
See notes to consolidated financial statements.

                                       5
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                               NINE-MONTHS ENDED
                                                                                   MARCH 31,
                                                                               2001              2000
OPERATING ACTIVITIES
<S>                                                                        <C>                <C>
    Net cash provided by operating activities                              $ 2,485,672        $ 2,188,372
                                                                        ---------------  -----------------

INVESTING ACTIVITIES
    Purchases of securities available for sale                              (5,719,570)        (8,346,396)
    Proceeds from maturities of securities available for sale                7,387,287          7,871,376
    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                  3,547,264          4,370,423
    Net change in loans                                                     (8,686,804)        (5,221,870)
    Purchases of premises and equipment                                       (983,967)        (1,160,797)
    Acquisition of deposits (net of cash acquired)                                   -           (459,423)
                                                                        ---------------  -----------------
       Net cash used by investing activities                                  (805,792)       (10,820,725)
                                                                        ---------------  -----------------

FINANCING ACTIVITIES
    Net change in
      Non interest-bearing, interest-bearing and
       savings deposits                                                        137,835          3,574,604
      Certificates of deposit                                                4,659,581         11,433,622
      Short term borrowings                                                   (400,000)        (6,500,000)
    Proceeds of long-term debt                                                       -          2,000,000
    Repayment of long term debt                                                (55,870)           (51,563)
    Cash dividends                                                            (493,240)          (475,503)
    Proceeds from exercise of options on common stock                           26,500             53,832
    Purchase of treasury stock                                                  (45,901)                -
                                                                        ---------------  -----------------
       Net cash provided by financing activities                             3,828,905         10,034,992
                                                                        ---------------  -----------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                      5,508,785          1,402,639

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               3,171,389          3,573,139
                                                                        ---------------  -----------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                   $ 8,680,174        $ 4,975,778
                                                                        ===============  =================

ADDITIONAL CASH FLOWS INFORMATION
    Interest paid                                                          $ 6,340,283        $ 5,471,178
    Income tax paid                                                            496,826            624,105
</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
          nine-month  periods ended March 31, 2001 and 2000 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-Q. It is suggested that these  statements and
          notes 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-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 Company's  allowance for
          loan losses for the nine-months ended March 31, 2001 and 2000:
<TABLE>
<CAPTION>
                                                                       (Dollars in thousands)

                                                                         2001            2000
                                                                         ----            ----
           <S>                                                           <C>           <C>
           Balance July 1                                                $645          $1,212
           Charge offs                                                   (22)           (130)
           Recoveries                                                       1               2
           Provision for loan losses                                       75           (459)
                                                                           --           -----
           Balance March 31                                              $699            $625

           Information on impaired loans is summarized below

           AT MARCH 31                                                   2001
                                                                         ----

           Impaired loans with an allowance                              $162

           Allowance for impaired loans (included in the Company's
               allowance for loan losses)                                 $96

           NINE-MONTHS ENDED MARCH 31                                    2001
                                                                         ----

           Average balance of impaired loans                             $471
           Interest income recognized on impaired loans                   209
           Cash-basis interest received                                   206
</TABLE>
                                       7
<PAGE>

3.        EARNINGS PER SHARE

          Earnings per share have been computed based upon the weighted  average
          common shares (including ESOP shares)  outstanding during each period.
          All share and per share amounts in previous periods have been adjusted
          to reflect the effect of a 20% stock dividend paid during 2000.

4.        RECLASSIFICATIONS

          Reclassifications   of  certain   amounts   in  the  March  31,   2000
          consolidated  statement have been made to conform to the March 31,2000
          presentation.

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  Company'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.

FINANCIAL CONDITION

The Corporation's  assets increased by 3.65% to $212.7 million at March 31, 2001
compared to $205.2  million at June 30, 2000.  The majority of this  increase is
reflected in increases in cash and cash  equivalents and loans.  These increases
were financed  primarily by an increase in deposits and a decrease in investment
securities.

Cash and cash equivalents increased by $5.509 million to $8.680 million at March
31, 2001 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 and a higher level of federal funds sold at March 31, 2001.

                                       8
<PAGE>

The Company  maintains  a  portfolio  of trading  account  securities,  which is
comprised of common stock of other  financial  institutions.  The  portfolio was
$933,000 at March 31, 2001  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  $3.3  million to $33.4
million at March 31,  2001 from $36.7  million at June 30, 2000 as the result of
$7.3 million in securities  matured offset by a $2.0 million  increase in market
value and the purchase of $2.1 million in  securities,  net of securities  sold.
Investment securities, held to maturity, decreased $3.5 million to $21.2 million
at  March  31,  2001  from  $24.7  million  at June 30,  2000 due to  securities
maturing.  The proceeds from sold and matured  securities were primarily used to
fund an increase in the loan portfolio.

Loans,  net,  increased by $8.6 million to $140.0 million at March 31, 2001 from
$131.4 million at June 30, 2000 as the result of continued  mortgage loan demand
and an increase in participation loans. The Company continues to maintain a high
percentage of its loan portfolio in adjustable-rate residential mortgages.

At March 31, 2001,  the  allowance for loan losses was $699,000 or .50% of loans
receivable compared to $645,000 or .49% of loans receivable at June 30, 2000.

Premises and equipment increased by $706,000 to $4.577 million at March 31, 2001
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 $4.8  million to $177.3  million at March 31, 2001
from $172.5  million at June 30, 2000.  During the  nine-months  ended March 31,
2001,  certificates  of deposit  increased $4.7 million,  while NOW accounts and
savings  deposits  increased  $100,000.  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  nine-months  ended March 31, 2001
primarily  due to funds  provided from an increase in deposits and a decrease in
the investment portfolio.

The Bank's regulatory liquidity ratio was 45.6% at March 31, 2001 as compared to
40.1%  at June  30,  2001.  At March  31,  2001 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 March 31, 2001 as compared to 8.6%, 8.6% and 18.3% respectively,
at June 30, 2000.

RESULTS OF OPERATIONS FOR THE THREE-MONTHS ENDED MARCH 31, 2001 AND 2000

Net income  decreased  by $9,000 to $326,000  for the  three-month  period ended
March 31, 2001 from  $335,000 for the  three-month  period ended March 31, 2000.
The primary  reasons for the  decrease  were a $68,000  decrease in net interest
income, a $15,000 increase in the provision for loan losses, a $116,000 increase
in other  expense  and a $31,000  increase  in income  tax  expense  offset by a
$221,000 increase in other income.

Interest income increased by $281,000 for the three-month period ended March 31,
2001 as compared to the  three-month  period ended March 31,  2000,  primarily a
result of a higher average balance of earning assets.

Interest on loans  increased by $377,000 to $2.972  million for the  three-month
period  ended March 31, 2001 as compared to $2.595  million for the  three-month
period ended March 31, 2000.  This increase is mainly  attributable  to a higher
weighted-average balance of loans receivable outstanding.

Interest  on  investment  securities  and other  dividend  income  decreased  by
$113,000 to $925,000 for the three-month period ended March 31, 2001 from $1.038
million for the  three-month  period  ended  March 31,  2000.  This  decrease is
primarily the result of a lower weighted-average balance during the period and a
lower reinvestment rate on maturing investments.

                                       9
<PAGE>

Interest on deposits with other financial  institutions  increased by $17,000 to
$42,000 for the  three-month  period  ended March 31, 2001 from  $25,000 for the
three-month  period  ended March 31,  2000  primarily  due to a higher  level of
interest-bearing cash balances.

Interest  expense on deposits  increased  by $332,000 to $2.230  million for the
three-month  period ended March 31, 2001 from $1.898 million for the three-month
period  ended March 31,  2000 as a result of higher  volume and a higher cost of
funds.

Interest  expense on  short-term  borrowings  and  long-term  debt  increased by
$17,000  to  $169,000  for the  three-month  period  ended  March 31,  2001 from
$152,000 for the  three-month  period ended March 31, 2000,  primarily  due to a
higher level of long-term debt.

The provision for loan losses increased $15,000 for the three-month period ended
March 31, 2001 as compared to the same  period in 2000.  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 March 31, 2001 was 0.5%.

Non-interest income increased by $221,000 to $216,000 for the three-month period
ended  March 31,  2001 as  compared  to a loss of $5,000 for the same  period in
2000. 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 $135,000,  an increase of $69,000 in service  charges on
deposits and an increase of $17,000 in other fees and other income.

Non-interest expense increased by $116,000 to $1.233 million for the three-month
period ended March 31, 2001 as compared to $1.117 million for the same period in
2000.

Compensation  and benefits  increased by $30,000 to $576,000 for the three-month
period ended March 31, 2001 as compared to $546,000 for the  three-months  ended
March  31,  2000  primarily  as the  result  of a  reduction  in the  amount  of
compensation  expense  being  deferred on new loan  originations  in the current
period.

Equipment  expense  increased by $36,000 to $105,000 for the three-months  ended
March 31, 2001 from $69,000 for the three  months-ended March 31, 2000 primarily
due to an increase in depreciation expense attributable to the addition of fixed
assets over the past 12 months.

Legal and professional  fees decreased by $21,000 to $53,000 for the three-month
period ended March 31, 2001 from $74,000 for the three-month  period ended March
31, 2000 primarily due to a lower level of consulting  services  utilized in the
three-months ended March 31, 2001.

Advertising  expense  increased by $9,000 to $59,000 for the quarter ended March
31, 2001 compared to $50,000 for the quarter ended March 31, 2000  primarily due
to a higher level of advertising activity in the current period.

State  deposit  and  franchise  taxes  increased  by $21,000 to $41,000  for the
quarter ended March 31, 2001 compared to $20,000 for the quarter ended March 31,
2000 primarily due to a higher level of deposits in the current period

Other expenses increased by $49,000 to $252,000 for the three-month period ended
March 31, 2001 from  $203,000 for the  three-month  period ended March 31, 2000,
primarily due to the addition of core deposit  intangible  amortization  expense
related to the Harlan branch purchase in 2000.

Income tax expense  increased by $31,000 to $166,000 for the three-month  period
ended March 31, 2001 compared to $135,000 for the  three-months  ended March 31,
2000 due a higher level of taxable income.

                                       10
<PAGE>

RESULTS OF OPERATIONS FOR THE NINE-MONTHS ENDED MARCH 31, 2001 AND 2000

Net income  decreased by $164,000 to $1.110  million for the  nine-month  period
ended March 31, 2001 from $1.274 million for the  nine-month  period ended March
31,  2000.  The primary  reasons for the  decrease  were a $534,000  increase in
provision for loan losses and a $254,000 increase in non-interest expense offset
by  a  $11,000  increase  in  net  interest  income,  a  $528,000   increase  in
non-interest income and a $85,000 decrease in income tax expense.

Net interest income  increased by $11,000 for the nine-month  period ended March
31, 2001 as compared to the nine-month period ended March 31, 2000, primarily as
the result of a higher volumes in the period ended March 31, 2001.

Interest  on loans  increased  by  $1.100  million  to  $8.753  million  for the
nine-month  period  ended March 31,  2001 as compared to $7.653  million for the
nine-month period ended March 31, 2000. This increase is mainly  attributable to
higher yields and higher volume.

Interest on investment securities and other dividend income decreased by $64,000
to $2.976  million for the  nine-month  period  ended March 31, 2001 from $3.040
million  for the  nine-month  period  ended  March 31,  2000.  This  decrease is
primarily the result of lower  weighted-average  balances  during the period and
lower reinvestment rates on maturing securities.

Interest  expense on deposits  increased by $1.064 million to $6.608 million for
the  nine-month  period  ended  March  31,  2001  from  $5.544  million  for the
nine-month period ended March 31, 2000 as a result of higher volume and a higher
cost of funds.

Interest  expense  on short  term  borrowings  and long term debt  increased  by
$24,000 to an aggregate of $518,000  for the  nine-month  period ended March 31,
2001 from an  aggregate of $542,000  for the  nine-month  period ended March 31,
2000 primarily due to lower levels of short-term borrowings.

The provision for loan losses increased $534,000 for the nine-month period ended
March 31, 2001 as compared  to the same period in 2000.  This change  reflects a
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 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 March 31, 2001 was 0.5%.

The Bank's  non-interest  income  increased  by  $528,000  to  $687,000  for the
nine-month  period  ended March 31,  2001 as  compared to $159,000  for the same
period in 2000.  The  increase  was mainly  attributable  to a net  increase  in
realized and unrealized  gains on trading  account  securities of $341,000 and a
$168,000  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.  The  increase  in service  charges on
deposits reflects income derived from a new overdraft  checking  product,  which
was introduced during the nine-months ended March 31, 2001.

Non-interest  expense increased by $254,000 to $3.608 million for the nine-month
period ended March 31, 2001 as compared to $3.354 million for the same period in
2000.  Compensation and benefits  increased by $57,000 to $1.625 million for the
nine-month  period  ended March 31,  2001 as compared to $1.568  million for the
same period in 2000.  This  increase is  primarily  attributable  to annual wage
increases  and the result of a reduction in the amount of  compensation  expense
being deferred on new loan originations in the current period.

Occupancy  expense  increased by $38,000 to $248,000 for the  nine-month  period
ended March 31, 2001  compared to $210,000  for the same period in 2000,  as the
Company  incurred  additional  expenses from its new Harlan branch office.  This
increase was primarily due to a $35,000  increase in  depreciation  expense,  an
$22,000  decrease in repairs and  maintenance  expense,  an $18,000  increase in
property tax expense and an increase of $7,000 in utilities expense.

                                       11
<PAGE>

Equipment  expense  increased by $111,000 to $295,000 for the nine-month  period
ended March 31, 2001  compared  to  $184,000  for the same period in 2000.  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 $11,000 to $195,000 for the nine-month  period
ended March 31, 2001 from  $206,000  for the  nine-month  period ended March 31,
2000  primarily  due to one time  conversion  expenses  incurred  for the Harlan
branch acquisition in the nine-months ended March 31, 2000.

Deposit  insurance  expense  decreased by $27,000 to $26,000 for the  nine-month
period ended March 31, 2001 from $53,000 for the  nine-month  period ended March
31, 2000 due to lower deposit premium rates.

Legal and  professional  fees decreased by $9,000 to $169,000 for the nine-month
period ended March 31, 2001 from $178,000 for the nine-month  period ended March
31, 2000 primarily due to a decrease in consulting fees.

Advertising  expense  decreased by $31,000 to $143,000 for the nine-month period
ended March 31, 2001 compared to $174,000 for the nine-month  period ended March
31, 2000 due to a lower level of advertising.

Other expenses  increased by $90,000 to $777,000 for the nine-month period ended
March 31, 2001 from  $687,000  for the  nine-month  period  ended March 31, 2000
primarily as the result of the addition of core deposit intangible  amortization
expense of $20,000 related to the Harlan branch purchase in 2000, an increase of
$32,000 in  telephone  expense  and an  increase  of  $20,000 in ATM  processing
charges and other services.

Income tax expense  decreased by $85,000 to $578,000 for the  nine-month  period
ended March 31, 2001  compared to $663,000 for the  nine-months  ended March 31,
2000 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

          No matters  were  submitted to a vote of Security  Holders  during the
          quarter ended March 31, 2001.

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: May 14, 2001

                                       14