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, 2001

                                       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 13, 2002 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
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                 DECEMBER 31,       JUNE 30,
                                                                    2001              2001
ASSETS
<S>                                                             <C>              <C>
     Cash and cash equivalents                                  $  13,594,073    $  13,887,788
     Trading securities                                                    --        1,049,327
     Investment securities, available for sale                     62,255,664       57,109,780
     Loans                                                        141,628,404      137,581,692
         Allowance for loan losses                                   (779,543)        (718,267)
                                                                -------------    -------------
                Net loans                                         140,848,861      136,863,425
     Premises and equipment                                         4,542,876        4,642,655
     Federal Home Loan Bank stock                                   1,582,400        1,527,400
     Interest Receivable                                            1,660,392        1,790,607
     Other assets                                                     553,780          533,607
                                                                -------------    -------------
              Total assets                                      $ 225,038,046    $ 217,404,589
                                                                =============    =============
LIABILITIES
     Deposits
         Interest bearing                                       $ 186,540,007    $ 177,316,986
         Non-interest bearing                                       2,565,697        4,631,492
                                                                -------------    -------------
              Totals                                              189,105,704      181,948,478
     Long term debt                                                12,412,844       12,452,796
     Interest payable                                                 919,833          962,143
     Other liabilities                                              1,622,278        1,572,344
                                                                -------------    -------------
              Total liabilities                                   204,060,659      196,935,761
                                                                -------------    -------------

STOCKHOLDERS' EQUITY
     Issued and outstanding - 1,579,582 shares, respectively        1,579,582        1,579,582
     Additional paid-in-capital                                     8,729,990        8,729,990
     Less: Common stock acquired by Rabbi trusts for deferred
                 compensation plans                                  (488,102)        (488,102)
     Treasury stock, at cost, 282,728 shares, respectively         (2,484,267)      (2,484,267)
     Retained earnings                                             13,335,998       12,839,997
     Accumulated other comprehensive loss                             304,186          291,628
                                                                -------------    -------------
              Total stockholders' equity                           20,977,387       20,468,828
                                                                -------------    -------------

              Total liabilities and stockholders' equity        $ 225,038,046    $ 217,404,589
                                                                =============    =============
</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,
                                           -------------------------    -------------------------
                                                2001         2000           2001          2000
INTEREST INCOME
<S>                                        <C>           <C>            <C>           <C>
   Loans receivable                        $ 2,957,886   $ 3,022,776    $ 5,884,567   $ 5,780,987
   Investment securities                       837,076       961,053      1,693,935     1,981,056
   Other dividend income                        41,749        35,450         84,336        70,522
   Deposits with financial institutions         40,423        25,584        126,018        39,613
                                           -----------   -----------    -----------   -----------
            Total interest income            3,877,134     4,044,863      7,788,856     7,872,178
                                           -----------   -----------    -----------   -----------

INTEREST EXPENSE
   Deposits                                  1,938,881     2,214,452      4,118,448     4,377,771
   Short term borrowings                            --            --             --            --
   Long term debt                              171,007       175,109        342,418       349,151
                                           -----------   -----------    -----------   -----------
            Total interest expense           2,109,888     2,389,561      4,460,866     4,726,922
                                           -----------   -----------    -----------   -----------

NET INTEREST INCOME                          1,767,246     1,655,302      3,327,990     3,145,256
   Provision for loan losses                    47,500        22,480         85,000        44,980
                                           -----------   -----------    -----------   -----------

NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES                  1,719,746     1,632,822      3,242,990     3,100,276
                                           -----------   -----------    -----------   -----------

OTHER INCOME
   Service charges for deposit accounts        197,082       146,879        361,985       273,807
   Other customer fees                          34,239        19,527         57,080        33,298
   Net gain (loss) on trading securities        11,977        70,619         21,426       132,162
   Net realized gain (loss) on sales of
    available for sale securities                   --          (670)         6,053          (670)
   Other income                                 19,503         3,479         42,178        15,536
                                           -----------   -----------    -----------   -----------
            Total other income                 262,801       239,834        488,722       454,133
                                           -----------   -----------    -----------   -----------

OTHER EXPENSES
   Salaries and employee benefits              650,245       531,195      1,264,125     1,048,943
   Net occupancy expenses                       94,327        81,356        189,718       169,530
   Equipment expenses                          129,919        98,768        245,374       190,507
   Data processing fees                         57,984        67,090        117,398       134,659
   Deposit insurance expense                     8,319         8,712         16,640        17,418
   Legal and professional fees                  90,096        48,323        149,533       116,054
   Advertising                                  60,514        49,358        120,514        98,527
   State franchise and deposit taxes            44,300        42,431         88,176        88,317
   Other expenses                              222,346       257,434        441,941       493,519
                                           -----------   -----------    -----------   -----------
            Total other expenses             1,358,050     1,184,667      2,633,419     2,357,474
                                           -----------   -----------    -----------   -----------

INCOME BEFORE INCOME TAX                       624,497       687,989      1,098,293     1,196,935
   Income tax expense                          206,225       237,398        355,890       412,634
                                           -----------   -----------    -----------   -----------

NET INCOME                                 $   418,272   $   450,591    $   742,403   $   784,301
                                           ===========   ===========    ===========   ===========

BASIC EARNINGS PER SHARE                        $ 0.32        $ 0.35         $ 0.57        $ 0.61
DILUTED EARNINGS PER SHARE                      $ 0.32        $ 0.35         $ 0.57        $ 0.60
</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, 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, 2001          $1,579,582  $8,729,990 ($488,102) ($2,484,267)             $12,839,997    $291,628     $20,468,828

Net income                                                                       $742,404       742,403                     742,403

Other comprehensive
  income, net of tax

  Unrealized gain on securities                                                    12,558                    12,558          12,558
                                                                                ----------

Comprehensive income                                                             $754,962
                                                                                ==========

Cash dividend declared
  ($.19 per share)                                                                             (246,402)                   (246,402)
                                 -----------------------------------------------           -----------------------------------------

BALANCES, DECEMBER 31, 2001      $1,579,582  $8,729,990 ($488,102) ($2,484,267)             $13,335,998    $304,186     $20,977,387
                                 ===============================================           =========================================
</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,
                                                                ----------------------------
                                                                    2001            2000
                                                                    ----            ----
OPERATING ACTIVITIES
<S>                                                             <C>             <C>
    Net cash provided by operating activities                   $  2,336,759    $  1,257,711
                                                                ------------    ------------

INVESTING ACTIVITIES
    Purchases of securities available for sale                   (40,374,291)       (500,000)
    Proceeds from maturities of securities available for sale     25,997,383       1,340,949
    Proceeds  from sales of securities available for sale          9,128,907       3,649,998
    Proceeds from maturities of securities held to maturity               --       1,643,580
    Net change in loans                                           (4,135,770)     (7,269,914)
    Purchases of premises and equipment                             (117,575)       (828,595)
                                                                ------------    ------------
       Net cash used by investing activities                      (9,501,346)     (1,963,982)
                                                                ------------    ------------

FINANCING ACTIVITIES
    Net change in
      Non interest-bearing, interest-bearing and
       savings deposits                                            1,258,206         223,600
      Certificates of deposit                                      5,899,020       1,926,116
      Short term borrowings                                               --        (400,000)
    Repayment of long term debt                                      (39,952)        (36,872)
    Cash dividends                                                  (246,402)       (246,838)
    Proceeds from exercise of options on common stock                     --          24,000
    Purchase of treasury stock                                            --         (39,964)
                                                                ------------    ------------
       Net cash provided by financing activities                   6,870,872       1,450,042
                                                                ------------    ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                             (293,715)        743,771

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                    13,887,788       3,171,389
                                                                ------------    ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                        $ 13,594,073    $  3,915,160
                                                                ============    ============

ADDITIONAL CASH FLOWS INFORMATION
    Interest paid                                               $  4,160,758    $  4,735,390
    Income tax paid                                                  307,432         261,812
</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, 2001 and 2000 includes the results of
     operations  of HFB Financial  Corporation  (the  "Company")  and its wholly
     owned  subsidiary  Home Federal  Bank  Corporation  ("Home  Federal" or the
     "Bank"). The accompanying unaudited financial statements have been prepared
     in accordance with accounting  principles accepted in the United States for
     interim  financial  statements and with the instructions to Form 10-QSB. 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,  2001 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.   NON-PERFORMING LOANS AND PROBLEM ASSETS

     The following  sets forth the activity in the Company's  allowance for loan
     losses for the six-months ended December 31, 2001 and 2000:

                                                      (Dollars in thousands)

                                                        2001            2000
                                                        ----  -         ----

           Balance July 1                               $718            $645
           Charge offs                                  (23)            (10)
           Recoveries                                      -               1
           Provision for loan losses                      85              45
                                                          --              --
           Balance December 31                          $780            $681
                                                 ============    ============

           Information on impaired loans is summarized below

           AT DECEMBER 31                                                  2001
                                                                           ----

           Impaired loans with an allowance                              $2,198

           Allowance for impaired loans (included in the Company's
               allowance for loan losses)                                  $224

           SIX-MONTHS ENDED DECEMBER 31                                    2001
                                                                           ----

           Average balance of impaired loans                             $1,826
           Interest income recognized on impaired loans                      $0
           Cash-basis interest received                                      $0

3.   RECLASSIFICATIONS

     Reclassifications  of certain amounts in the December 31, 2000 consolidated
     statement have been made to conform to the December 31, 2001 presentation.

                                       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-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, 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.  During the quarter ended December 31, 2001, the Bank converted from
a federal thrift  charter to a state  chartered  commercial  bank as a means for
management to focus more on commercial lending and other activities  permissible
for commercial banks.

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 3.50% to $225.0 million at December 31,
2001 compared to $217.4  million at June 30, 2001. The majority of this increase
is  reflected  in  increases  in loans and  investments.  These  increases  were
financed  primarily by an increase in deposits and a decrease in trading account
securities.

In the  past,  the  Company  has  maintained  a  portfolio  of  trading  account
securities, which was comprised of common stock of other financial institutions.
The portfolio was totally  liquidated during the quarter ended December 31, 2001
compared to $1.049 million at June 30, 2001.

Investment  securities,  available  for sale,  increased  $5.2  million to $62.3
million at December  31, 2001 from $57.1  million at June 30, 2001  primarily as
the result of  liquidity  from an increase in deposits  and the  liquidation  of
trading account securities.

                                       8
<PAGE>

Loans,  net,  increased by $3.9  million to $140.8  million at December 31, 2001
from $136.9  million at June 30, 2001 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 December  31,  2001,  the  allowance  for loan losses was $780,000 or .55% of
loans  receivable  compared to $718,000 or .52 of loans  receivable  at June 30,
2001.

Total deposits  increased by $7.2 million to $189.1 million at December 31, 2001
from $181.9 million at June 30, 2001.  During the six-months  ended December 31,
2001,  certificates  of deposit  increased  $5.9  million and NOW  accounts  and
savings deposits  increased $1.3 million.  Competition for deposits in the local
market has eased considerably over last quarter due to decreased loan demand and
increased liquidity in the market.

The Bank's regulatory liquidity ratio was 34.4% at December 31, 2001 as compared
to 36.2% at June 30, 2001. At December 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  8.5%,  8.5%  and  15.7%
respectively  at  December  31,  2001  as  compared  to  8.7%,  8.7%  and  15.7%
respectively, at June 30, 2001.

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

Net income  decreased  by $33,000 to $418,000 for the  three-month  period ended
December 31, 2001 from $451,000 for the  three-month  period ended  December 31,
2000.  The primary  reasons for the decrease  were a $174,000  increase in other
expense and a $25,000  increase  in the  provision  for loan losses  offset by a
$112,000 increase in net interest income, a $23,000 increase in other income and
a $31,000 decrease in income tax expense.

Interest income decreased by $168,000 for the three-month  period ended December
31,  2001 as  compared  to the  three-month  period  ended  December  31,  2000,
primarily  a result of a lower  weighted-average  yield on earning  assets.  The
lower average  yields were the result of sharp  declines in interest  rates over
the past 12 months.

Interest on loans  decreased  by $65,000 to $2.958  million for the  three-month
period ended December 31, 2001 as compared to $3.023 million for the three-month
period ended December 31, 2000. This decrease is mainly  attributable to a lower
weighted-average yield on loans during the quarter ended December 31, 2001.

Interest  on  investment  securities  and other  dividend  income  decreased  by
$118,000 to $879,000 for the  three-month  period  ended  December 31, 2001 from
$997,000  million for the  three-month  period ended  December  31,  2000.  This
decrease  is  primarily  the  result of a lower  reinvestment  rate on  maturing
investments.

Interest on deposits with other financial  institutions  increased by $15,000 to
$40,000 for the three-month  period ended December 31, 2001 from $25,000 for the
three-month  period ended  December 31, 2000  primarily due to a higher level of
interest-bearing deposits with financial institutions.

Similarly,  interest expense on deposits decreased by $275,000 to $1.939 million
for the  three-month  period ended December 31, 2001 from $2.214 million for the
three-month  period ended December 31, 2000 as a result of a significant drop in
rates paid on deposit accounts.

Interest  expense on  long-term  debt  decreased  by $4,000 to $171,000  for the
three-month  period ended  December 31, 2001 from  $175,000 for the  three-month
period  ended  December  31, 2000,  primarily  due to a slightly  lower level of
long-term debt.

The provision for loan losses increased $25,000 for the three-month period ended
December 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 December 31, 2001 was 0.55%.

                                       9
<PAGE>

Non-interest  income increased by $23,000 to $263,000 for the three-month period
ended December 31, 2001 as compared to $240,000 for the same period in 2000. The
increase was primarily attributable to an increase of $50,000 in service charges
on deposits and an increase of $31,000 in other  customer  fees and other income
offset by a net decrease of $58,000 in gains on trading  account  securities and
realized gains and losses on available for sale securities.

Non-interest expense increased by $173,000 to $1.358 million for the three-month
period ended December 31, 2001 as compared to $1.185 million for the same period
in 2000.

Compensation and benefits  increased by $119,000 to $650,000 for the three-month
period  ended  December  31, 2001 as compared to $531,000  for the  three-months
ended  December  31,  2000  primarily  as the  result of a $75,000  increase  in
salaries,  wages and  commissions  and an  increase  of  $44,000  in the cost of
funding the Banks retirement plan.

Occupancy  expense  increased by $13,000 to $94,000 for the  three-months  ended
December  31, 2001  compared  to $81,000  for the same period in 2000.  This was
primarily due to an increase of $10,000 in depreciation  expense attributable to
the addition of fixed assets over the past 12 months.

Equipment  expense  increased by $31,000 to $130,000 for the three-months  ended
December  31, 2001 from  $99,000 for the three  months-ended  December  31, 2000
primarily due to an increase in depreciation  expense of $15,000 and an increase
of $17,000 in maintenance and repairs.

Data  processing fees decreased by $9,000 to $58,000 for the three- months ended
December  31, 2001 from $67,000 for the same period in 2000 as the result a more
favorable contract negotiated with the Banks data processor.

Legal and professional  fees increased by $42,000 to $90,000 for the three-month
period ended  December 31, 2001 from  $48,000 for the  three-month  period ended
December  31,  2000  primarily  due to a higher  level of  consulting  and legal
services utilized in the three-months ended December 31, 2001.

Advertising  expense  increased  by  $12000 to  $61,000  for the  quarter  ended
December 31, 2001  compared to $49,000 for the quarter  ended  December 31, 2000
primarily due to a higher level of advertising activity in the current period.

State deposit and franchise taxes increased by $2,000 to $44,000 for the quarter
ended  December 31, 2001 compared to $42,000 for the quarter ended  December 31,
2000 primarily due to a higher level of deposits in the current period

Other expenses decreased by $35,000 to $222,000 for the three-month period ended
December 31, 2001 from $257,000 for the  three-month  period ended  December 31,
2000, primarily due to decreases in telephone,  postage, intangible amortization
and other miscellaneous expenses.

Income tax expense  decreased by $31,000 to $206,000 for the three-month  period
ended December 31, 2001 compared to $237,000 for the three-months ended December
31, 2000 due a lower level of taxable income.

RESULTS OF OPERATIONS FOR THE SIX-MONTHS ENDED DECEMBER 31, 2001 AND 2000

Net income  decreased  by $42,000 to $742,000  for the  six-month  period  ended
December 31, 2001 from  $784,000  for the  six-month  period ended  December 31,
2000. The primary reasons for the decrease were a $40,000  increase in provision
for loan losses and a $276,000  increase  in  non-interest  expense  offset by a
$183,000  increase in net interest  income,  a $35,000  increase in non-interest
income and a $57,000 decrease in income tax expense.

Net  interest  income  increased  by $183,000  for the  six-month  period  ended
December 31, 2001 as compared to the six-month  period ended  December 31, 2000,
primarily  as the result of a higher  volumes in the period  ended  December 31,
2001.

                                       10
<PAGE>

Interest on loans  increased  by $104,000  to $5.885  million for the  six-month
period ended  December 31, 2001 as compared to $5.781  million for the six-month
period ended December 31, 2000.  This increase is mainly  attributable to higher
volume.

Interest  on  investment  securities  and other  dividend  income  decreased  by
$274,000 to $1.778 million for the six-month period ended December 31, 2001 from
$2.052 million for the six-month  period ended December 31, 2000.  This decrease
is primarily the result of lower reinvestment rates on maturing securities.

Interest on deposits with other financial  institutions  increased by $86,000 to
$126,000 for the six-months  ended December 31, 2001 compared to $40,000 for the
six-months  ended December 31, 2000  primarily due to a higher  average  balance
during the period ended December 31, 2001.

Interest  expense on deposits  decreased by $260,000 to $4.118 for the six-month
period ended  December  31, 2001 from $4.378  million for the  six-month  period
ended December 31, 2000 as a result of a significantly lower cost of funds.

Interest expense on short term borrowings and long term debt decreased by $7,000
to an  aggregate of $342,000 for the  six-month  period ended  December 31, 2001
from an aggregate of $349,000 for the six-month  period ended  December 31, 2000
primarily due to lower levels of short-term borrowings.

The provision for loan losses  increased by $40,000 to $85,000 for the six-month
period  ended  December 31, 2001 as compared to $45,000 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,  net at December 31, 2001
was 0.55%.

The  Bank's  non-interest  income  increased  by  $35,000  to  $489,000  for the
six-month  period  ended  December 31, 2001 as compared to $454,000 for the same
period in 2000. The increase was mainly  attributable  to a decrease in gains on
trading account  securities and net gains on the sale of investment  securities,
available for sale of $104,000 offset by an $88,000  increase in service charges
for deposit accounts and an increase of $50,000 in other customer fees and other
income.

Non-interest  expense  increased by $276,000 to $2.633 million for the six-month
period ended December 31, 2001 as compared to $2.357 million for the same period
in 2000.  Compensation and benefits  increased by $215,000 to $1.264 million for
the six-month  period ended  December 31, 2001 as compared to $1.049 million for
the same period in 2000. This increase is primarily  attributable to annual wage
increases and an increase in the cost of funding the Banks retirement plan.

Occupancy  expense  increased  by $20,000 to $190,000 for the  six-month  period
ended  December 31, 2001 compared to $170,000 for the same period in 2000.  This
increase was primarily due to a $17,000 increase in depreciation expense.

Equipment  expense  increased  by $54,000 to $245,000 for the  six-month  period
ended  December 31, 2001 compared to $191,000 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 $18,000 to $117,000 for the six-month  period
ended  December 31, 2001 from $135,000 for the six-month  period ended  December
31, 2000 as the result a more favorable contract  negotiated with the Banks data
processor.

Legal and  professional  fees increased by $34,000 to $150,000 for the six-month
period ended  December 31, 2001 from  $116,000  for the  six-month  period ended
December 31, 2000 primarily due to a increase in consulting fees.

Advertising  expense  increased by $22,000 to $121,000 for the six-month  period
ended  December  31, 2001  compared to $99,000 for the  six-month  period  ended
December 31, 2000 due to a higher level of advertising.

                                       11
<PAGE>

Other expenses  decreased by $52,000 to $442,000 for the six-month  period ended
December 31, 2001 from $494,000 for the six-month period ended December 31, 2000
primarily as the result of  decreases in  telephone,  postage,  REO,  intangible
amortization and other miscellaneous expenses.

Income tax expense  decreased  by $57,000 to $356,000 for the  six-month  period
ended December 31, 2001 compared to $413,000 for the  six-months  ended December
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 December 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: February 13, 2002

                                       14