UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                 FORM 10-QSB[X]

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



                For the quarterly period ended September 30, 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 November 13, 2001 was 1,296,854.


There are a total of 12 pages filed in this document.

<PAGE>
                            HFB FINANCIAL CORPORATION

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

                                                                         PAGE NO
                                                                         -------
PART 1 - FINANCIAL INFORMATION


     ITEM 1.    FINANCIAL STATEMENTS
                                                                            3
                Consolidated Balance sheet

                Consolidated Statement of Income                            4

                Consolidated Statement of Stockholders' Equity              5

                Consolidated Statement of Cash Flows                        6

                Notes to Consolidated Financial Statements                7-8

       ITEM 2.  MANAGEMENT'S' DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS            9-10

PART 11 - OTHER INFORMATION                                                11

SIGNATURES                                                                 12

                                       2
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                              SEPTEMBER 30,           JUNE 30,
                                                                                   2001                 2001
<S>                                                                           <C>                 <C>
ASSETS
     Cash and cash equivalents                                                  $ 9,567,171         $ 13,887,788
     Trading securities                                                             562,448            1,049,327

     Investment securities available for sale                                    65,845,975           57,109,780
     Loans                                                                      139,892,381          137,581,692
         Allowance for loan losses                                                 (735,523)            (718,267)
                                                                          ------------------   ------------------
                Net loans                                                       139,156,858          136,863,425
     Premises and equipment                                                       4,642,164            4,642,655
     Federal Home Loan Bank stock                                                 1,555,000            1,527,400
     Interest Receivable                                                          1,685,317            1,790,607
     Other assets                                                                   595,947              533,607
                                                                          ------------------   ------------------

              Total assets                                                    $ 223,610,880        $ 217,404,589
                                                                          ==================   ==================

LIABILITIES
     Deposits
         Interest bearing                                                     $ 184,247,212        $ 177,316,986
         Non-interest bearing                                                     2,168,100            4,631,492
                                                                          ------------------   ------------------
              Totals                                                            186,415,312          181,948,478
     Short term borrowings                                                                -                    -
     Long term debt                                                              12,433,021           12,452,796
     Interest payable                                                             1,754,696              962,143
     Other liabilities                                                            1,985,987            1,572,344
                                                                          ------------------   ------------------
              Total liabilities                                                 202,589,016          196,935,761
                                                                          ------------------   ------------------

STOCKHOLDERS' EQUITY
     Issued and outstanding - 1,579,582, 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                                                           12,917,726           12,839,997
     Accumulated other comprehensive income                                         766,935              291,628
                                                                          ------------------   ------------------
              Total stockholders' equity                                         21,021,864           20,468,828
                                                                          ------------------   ------------------

              Total liabilities and stockholders' equity                      $ 223,610,880        $ 217,404,589
                                                                          ==================   ==================
</TABLE>
See notes to condensed consolidated financial statements.

                                       3
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
                        CONSOLIDATED STATEMENT OF INCOME
                                   (Unaudited)
                                                       THREE-MONTHS ENDED
                                                           SEPTEMBER 30,
                                                      2001            2000
Interest Income
   Loans receivable                                $2,926,681      $2,758,211
   Investment securities                              895,982       1,048,091
   Other dividend income                                3,464           6,984
   Deposits with financial institutions                85,595          14,029
                                                   ----------      ----------
            Total interest income                   3,911,722       3,827,315
                                                   ----------      ----------

INTEREST EXPENSE
   Deposits                                         2,179,567       2,163,320
   Short term borrowings                                   --           1,540
   Long term debt                                     171,411         172,501
                                                   ----------      ----------
            Total interest expense                  2,350,978       2,337,361
                                                   ----------      ----------

NET INTEREST INCOME                                 1,560,744       1,489,954
   Provision for loan losses                           37,500          22,500
                                                   ----------      ----------

NET INTEREST INCOME AFTER
  PROVISION FOR LOAN LOSSES                         1,523,244       1,467,454
                                                   ----------      ----------

OTHER INCOME
   Service charges for deposit accounts               164,902         129,457
   Other customer fees                                 22,841          16,742
   Net gain on trading securities                       9,450          61,543
   Net realized gain on sales of
    available for sale securities                       6,053              --
   Other income                                        22,674          12,057
                                                   ----------      ----------
            Total other income                        225,920         219,799
                                                   ----------      ----------

OTHER EXPENSES
   Salaries and employee benefits                     613,880         517,748
   Net occupancy expenses                              95,391          88,175
   Equipment expenses                                 115,455          91,738
   Data processing fees                                59,414          67,569
   Deposit insurance expense                            8,321           8,705
   Legal and professional fees                         59,437          67,731
   Advertising                                         60,000          41,653
   State franchise and deposit taxes                   43,875          45,886
   Other expenses                                     219,595         249,102
                                                   ----------      ----------
            Total other expenses                    1,275,368       1,178,307
                                                   ----------      ----------

INCOME BEFORE INCOME TAX                              473,796         508,946
   Income tax expense                                 149,665         175,236
                                                   ----------      ----------

NET INCOME                                         $  324,131      $  333,710
                                                   ==========      ==========

BASIC EARNINGS PER SHARE                               $ 0.25          $ 0.26
DILUTED EARNINGS PER SHARE                             $ 0.25          $ 0.26

See notes to condensed consolidated financial statements.

                                       4
<PAGE>
                    HFB FINANCIAL CORPORATION AND SUBSIDIARY
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                      THREE-MONTHS ENDED SEPTEMBER 30, 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           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                                                                  $324,131      324,131                        324,131

Other comprehensive
 income, net of tax

  Unrealized gain
    on securities                                                            475,307                    475,307          475,307
                                                                            --------

Comprehensive income                                                        $799,438
                                                                            ========

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

BALANCES, SEPTMBER 30, 2001 $1,579,582  $8,729,990 ($488,102) ($2,484,267)            $12,917,726      $766,935      $21,021,864
                            ==============================================            ============================================
</TABLE>
See notes to condensed consolidated financial statements.

                                       5
<PAGE>
            HFB FINANCIAL CORPORATION AND SUBSIDIARY
         CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                    THREE-MONTHS ENDED
                                                                       SEPTMBER 30,
                                                                     2001            2000
Operating Activities
<S>                                                             <C>             <C>
    Net cash provided by operating activities                   $  2,012,148    $  1,899,953
                                                                ------------    ------------

INVESTING ACTIVITIES
    Purchases of securities available for sale                   (31,946,008)       (500,000)
    Proceeds from maturities of securities available for sale     14,788,132         527,877
    Proceeds  from sales of securities available for sale          9,128,907              --
    Proceeds from maturities of securities held to maturity               --         588,998
    Net change in loans                                           (2,396,267)     (2,383,098)
    Purchases of premises and equipment                             (108,186)       (609,249)
                                                                ------------    ------------
       Net cash used by investing activities                     (10,533,422)     (2,375,472)
                                                                ------------    ------------

FINANCING ACTIVITIES
    Net change in
      Non interest-bearing, interest-bearing and
       savings deposits                                              707,218        (879,180)
      Certificates of deposit                                      3,759,616       1,926,117
      Short term borrowings                                               --         475,000
    Repayment of long term debt                                      (19,775)        (18,252)
    Cash dividends                                                  (246,402)       (246,838)
    Proceeds from exercise of options on common stock                     --          24,000
    Purchase of treasury stock                                            --         (11,874)
                                                                ------------    ------------
       Net cash provided by financing activities                   4,200,657       1,268,973
                                                                ------------    ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                           (4,320,617)        793,454

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                        $  9,567,171    $  3,964,843
                                                                ============    ============

ADDITIONAL CASH FLOWS INFORMATION
    Interest paid                                               $  1,558,425    $  1,433,149
    Income tax paid                                                   29,420           1,812
</TABLE>
See notes to condensed consolidated financial statements.

                                       6
<PAGE>

                            HFB FINANCIAL CORPORATION

        Notes to Condensed Consolidated Financial Statements (Unaudited)

1.   BASIS OF PRESENTATION

          The unaudited  condensed  consolidated  financial  information for the
          three month  periods  ended  September  30, 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 accounting principles
          generally  accepted  in the  United  States  of  America  for  interim
          financial  statements and with the instructions to Form 10-QSB.  These
          statements and notes should be read in conjunction  with the financial
          statements and notes thereto  included in the Company's  annual report
          for the  year  ended  June  30,  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.   NONPERFORMING ASSETS AND PROBLEM ASSETS

          The following sets forth the activity in the Bank's allowance for loan
          losses for the three-months ended September 30, 2001 and 2000:

                                                          (Dollars in thousands)

                                                                  2001    2000
                                                                  ----    ----

  Balance July 1                                                  $718    $645
  Charge offs                                                     (20)      (6)
  Recoveries                                                         -       1
  Provision for loan losses                                         38      23
                                                                    --      --
  Balance September 30                                            $736    $663

  Information on impaired loans is summarized below

  AT SEPTEMBER 30                                                 2001
                                                                  ----

  Impaired loans with an allowance                              $1,521

  Allowance for impaired loans (included in the Company's         $152
      Allowance for loan losses)



  THREE-MONTHS ENDED SEPTEMBER                                    2001
                                                                  ----

  Average balance of impaired loans                             $1,454
  Interest income recognized on impaired loans                      $0
  Cash-basis interest received                                      $0

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

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

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

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


FINANCIAL CONDITION

The  Corporation's  assets increased by 2.85% to $223.6 million at September 30,
2001 compared to $217.4 million at June 30, 2001.

Cash and cash equivalents decreased by $4.3 million to $9.6 million at September
30, 2001 from $13.9 million at June 30, 2001. This decrease was primarily due to
increases in the Banks investment portfolio.

The Corporation  maintains a portfolio of trading-account  securities,  which is
comprised of common stock of other  financial  institutions.  The balance of the
portfolio  was $562,000 at September  30, 2001  compared to $1.0 million at June
30, 2001. This decrease was primarily attributable to the sale of securities.

                                       8
<PAGE>

The Corporation's loan portfolio  increased by $2.3 million to $139.2 million at
September  30,  2001 from $136.9  million at June 30,  2001 due to an  increased
effort to market loans. The Corporation  continues to maintain a high percentage
of its loan portfolio in 1-4 family residential mortgage loans.

At September  30, 2001,  the  allowance  for loan losses was $736,000 or .53% of
loans  receivable  compared to $718,000 or .52% of loans  receivable at June 30,
2001.

Total deposits increased by $4.5 million to $186.4 million at September 30, 2001
from $181.9 million at June 30, 2001.  During the  three-months  ended September
30, 2001, certificates of deposit increased $3.7 million, while NOW accounts and
savings deposits increased $800,000.

The  Bank's  regulatory  liquidity  ratio was  35.1% at  September  30,  2001 as
compared to 36.2% at June 30, 2001.  At September  30, 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 8.4%, 8.4% and
15.2%  respectively  at September  30, 2001 as compared to 8.7%,  8.7% and 15.7%
respectively, at June 30, 2001.


RESULTS OF OPERATIONS FOR THE THREE-MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

Net income  decreased  by $10,000 to $324,000 for the  three-month  period ended
September 30, 2001 from $334,000 for the three-month  period ended September 30,
2000.  The  primary  reasons  for the  decrease  were a $71,000  increase in net
interest income, a $15,000 increase in provision for loan losses, an increase of
$9,000 in non-interest income, an increase of $100,000 in non-interest  expense,
and a $25,000 decrease in income tax expense.

Net  interest  income  increased  by $71,000 for the  three-month  period  ended
September  30, 2001 as compared to the  three-month  period ended  September 30,
2000,  primarily  as the result of higher loan volume  during the quarter  ended
September 30, 2001.

Interest on loans  increased by $169,000 to $2.927  million for the  three-month
period  ended  September  30,  2001  as  compared  to  $2.758  million  for  the
three-month   period  ended   September  30,  2000.   This  increase  is  mainly
attributable  to a higher volume of loans during the quarter ended September 30,
2001.

Interest  on  investment  securities  and other  dividend  income  decreased  by
$156,000 to $899,000 for the  three-month  period ended  September 30, 2001 from
$1.055  million for the  three-month  period  ended  September  30,  2000.  This
decrease is primarily the result of the current low interest rate environment.

Interest on deposits with other financial  institutions  increased by $72,000 to
$86,000 for the three-month period ended September 30, 2001 from $14,000 for the
three-month  period ended  September 30, 2000 primarily due to a higher level of
interest-bearing cash balances.

Interest on deposits  increased by $17,000 to $2.180 million for the three-month
period ended September 30, 2001 from $2.163 million for the  three-month  period
ended  September 30, 2000 as a result of higher  volumes.  A lower cost of funds
helped mitigate the impact of increased interest expense.

Interest  on long term debt and  short-term  borrowings  decreased  by $3,000 to
$171,000 for the  three-month  period ended September 30, 2001 from $174,000 for
the  three-month  period ended September 30, 2000 primarily due to a lower level
of debt during the period ended September 30, 2001.

The provision for loan losses increased $15,000 for the three-month period ended
September 30, 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 September 30, 2001 was .53%.

                                       9
<PAGE>

The  Corporation's  non-interest  income increased by $6,000 to $226,000 for the
three-month period ended September 30, 2001 as compared to $220,000 for the same
period in 2000. The increase was primarily attributable to a decrease in trading
account  realized  and  unrealized  gains  and  gains on the sale of  securities
available  for sale of $46,000,  an  increase  of $35,000 in service  charges on
deposit accounts and a $17,000 increase in other customer fees and other income.
The  Corporation  has a portfolio of  approximately  $562,000 in common stock of
other  financial  institutions.  The market value of these stocks has fluctuated
substantially during the past year, due to market volatility.

Non-interest  expense increased by $97,000 to $1.275 million for the three-month
period  ended  September  30, 2001 as  compared  to $1.178  million for the same
period in 2000.  Compensation and benefits  increased by $96,000 to $614,000 for
the three-month  period ended September 30, 2001 as compared to $518,000 for the
same  period in 2000.  This  increase  is  primarily  attributable  to a general
increase in salaries and wages of $58,000 and an increase of $38,000 in the cost
of funding the Banks' retirement plan.

Occupancy  expense  increased  by $7,000 to $95,000 for the  three-month  period
ended September 30, 2001 compared to $88,000 for the same period in 2000.

Equipment  expense  increased by $23,000 to $115,000 for the three-month  period
ended  September  30,  2001  compared  to $92,000  for the same  period in 2000,
primarily due to the increased  depreciation  expense related to the purchase of
new computer and communications equipment.

Data processing  fees decreased by $9,000 to $59,000 for the three-month  period
ended September 30, 2001 from $68,000 for the three-month period ended September
30, 2000,  primarily due to a greater level of  efficiency  achieved  during the
period ended September 30, 2001.

Legal and  professional  fees decreased by $9,000 to $59,000 for the three-month
period ended  September 30, 2001 from $68,000 for the  three-month  period ended
September 30, 2000,  primarily due to legal  expenses  incurred in the Company's
listing on the Nasdaq  SmallCap  Market during the quarter  ended  September 30,
2000.

Advertising  expense increased by $18,000 to $60,000 for the three-month  period
ended  September  30, 2001 as compared  to $42,000  for the  three-months  ended
September 30, 2000,  primarily due to a higher level of  advertising  during the
period.

Other expenses decreased by $29,000 to $220,000 for the three-month period ended
September 30, 2001 from $249,000 for the three-month  period ended September 30,
2000, primarily as the result of a $13,000 decrease in REO expense.

Income tax expense  decreased by $25,000 to $150,000 for the three-month  period
ended  September  30,  2001  compared  to $175,000  for the  three-months  ended
September 30, 2000 due to lower earnings.

                                       10

<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 17, 2001.

          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
                        --------                     ---            --------

                       Robert V. Costanzo         999,387            94,000
                       Kenneth V. Jones           999,387            94,000

               As a result, all were elected as directors of the Corporation for
               terms to expire in 2004

ITEM 5.   OTHER INFORMATION

             None

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

             a. Exhibits

                None

             b. Reports on Form 8-K

                None

                                       11
<PAGE>
                            HFB FINANCIAL CORPORATION

                                   Signatures

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



                                  HFB FINANCIAL CORPORATION

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



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


Dated: November 13, 2001

                                       12