Jefferson Bancshares 8-K/A Financial Statements and Exhibits

Exhibit 99.2

Jefferson Bancshares, Inc.

Consolidated Proforma Statements of Condition

	Jefferson Bancshares 9/30/2008		+	State of Franklin Bancshares 9/30/2008		+	Market Value Adjustments		+		Pro Forma Co.		+	Merger Adjustments		=		9/30/2008 Pro Forma
Assets
Cash and Securities	17,135			77,599			(7,500	)	(1	)	70,099			(12,913	)	(7	)	74,321
Gross Loans	288,762			224,113			844		(2	)	224,957							513,719
Loan Loss Reserves	(1,958	)		(1,579	)						(1,579	)		(1,000	)	(8	)	(4,537	)
Net Loans	286,804			222,534			844				223,378							510,182
Premises and Equipment	15,138			10,839			(939	)	(3	)	9,900							25,038
Goodwill	—			—			—				—			27,795		(9	)	27,795
Core Deposit Intangibles	—			—			—				—			3,421		(10	)	3,421
Other Assets	11,269			10,439							10,439			3,679		(11	)	25,387
Total Assets	330,346			321,411			(7,595	)			313,816			20,982				666,144
Liabilities
Deposits	217,897			259,970			1,225		(4	)	261,195							479,092
Borrowings	38,000			56,063			—				56,063			—				94,063
Other Liabilities	1,353			4,184			—				4,184			—				5,537
Trust Preferred	—			10,000			(3,165	)	(5	)	6,835							6,835
Total Liabilities	257,250			330,217			(1,940	)			328,277			—				585,527
Total Equity	73,096			(8,806	)		(5,655	)	(6	)	(14,461	)		20,982		(12	)	79,617
Total Liability and Stockholders Equity	330,346			321,411			(7,595	)			313,816			20,982				665,144

(1) Mark-to-market of securities portfolio

(2) Fair value adjustment to loans

(3) Fair value adjustment to property

(4) Fair value adjustment to deposits

(5) Fair value adjustment to TRUP

(6) Fair value adjustment to equity

(7) Cash portion of deal value, expenses and further adjustments to the investment portfolio

(8) Additional provision to ALLL

(9) Tax effect of net fair value adjustments

(10) Goodwill created in the transaction

(11) CDI created in transaction

(12) Issuance of stock and elimination of target equity

JEFFERSON BANCSHARES, INC.

Consolidated Proforma Statements of Earnings

(Dollars in Thousands)

	Jefferson Bancshares Fiscal Year Ended 6/30/2008		State of Franklin Bancshares 12 Months Ended 6/30/2008			Total 12 Months Ended 6/30/2008
Interest income:
Interest on loans receivable	$	19,782	$	15,999		$	35,781
Interest on investment securities		733		6,826		$	7,559
Other interest		331		673		$	1,004
Total interest income		20,846		23,498			44,344
Interest expense:
Deposits		7,665		9,363		$	17,028
Agreements to repurchase		—		50		$	50
Advances from FHLB		1,583		2,021		$	3,604
Trust preferred securities		—		613		$	613
Total interest expense		9,248		12,047			20,682
Net interest income		11,598		11,451		$	23,049
Provision for loan losses		451		55		$	506
Net interest income after provision for loan losses		11,147		11,396			22,543
Noninterest income:
Dividends		36		—		$	36
Mortgage origination income		338		334		$	672
Service charges and fees		768		758		$	1,526
Gain on sale of fixed assets		1		—		$	1
Gain (loss) on sale of investment securities, net		—		541		$	541
Real estate sales commission		—		784		$	784
Gain on sale of foreclosed real estate, net		51		—		$	51
BOLI increase in cash value		224		—		$	224
Other		102		37		$	139
Total noninterest income		1,520		2,454			3,974
Noninterest expense:
Compensation and benefits		5,518		5,171		$	10,689
Occupancy expense		702		737		$	1,439
Equipment and data processing expense		1,458		1,327		$	2,785
Advertising		246		569		$	815
Other		1,965		1,906		$	3,871
Total noninterest expense		9,889		9,710			19,599
Earnings before income taxes		2,778		4,140	(1)		6,918
Income taxes:
Current		911		1,035		$	1,946
Deferred		620		21		$	641
Total income taxes		1,531		1,056			2,587
Net earnings	$	1,247	$	3,084		$	4,331
(1) Excludes:
Increase in Loan FV - FASB 159				124
Decrease in Trading Sec FV - FASB 159				(7,460	)

JEFFERSON BANCSHARES, INC. AND STATE OF FRANKLIN

Consolidated Proforma Statements of Earnings

(Dollars in Thousands, Except Per Share Amounts)

	JFBI Three Months Ended 9/30/2008		SOFB Three Months Ended 9/30/2008			Total Three Months Ended 9/30/2008
Interest income:
Interest on loans receivable	$	4,597	$	3,624		$	8,221
Interest on investment securities		29		859		$	888
Other interest		42		57		$	99
Total interest income		4,668		4,540			9,208
Interest expense:
Deposits		1,325		1,588		$	2,913
Agreements to repurchase		—		12		$	12
Advances from FHLB		356		586		$	942
Trust preferred securities		—		115		$	115
Total interest expense		1,681		2,301			3,867
Net interest income		2,987		2,239		$	5,226
Provision for loan losses		160		4		$	164
Net interest income after provision for loan losses		2,827		2,235			5,062
Noninterest income:
Dividends		11		—		$	11
Mortgage origination income		54		46		$	100
Service charges and fees		245		232		$	477
Gain on sale of fixed assets		—		—		$	0
Gain (loss) on sale of investment securities, net		—		(16,856	)		($16,856	)
Real estate sales commission		—		161		$	161
Gain on sale of foreclosed real estate, net		—		—		$	0
BOLI increase in cash value		60		—		$	60
Other		24		3		$	27
Total noninterest income		394		(16,414	)		(16,020	)
Noninterest expense:
Compensation and benefits		1,318		1,111		$	2,429
Occupancy expense		183		161		$	344
Equipment and data processing expense		358		326		$	684
Advertising		3		138		$	141
Other		477		536		$	1,013
Total noninterest expense		2,339		2,272			4,611
Earnings before income taxes		882		(16,451	)(1)		(15,569	)
Income taxes:
Current		332		—		$	332
Deferred		17		(2,858	)		($2,841	)
Total income taxes		349		(2,858	)		(2,509	)
Net earnings	$	533		($13,593	)		($13,060	)
(1) Excludes:
Increase in Loan FV - FASB 159				—
Decrease in Trading Sec FV - FASB 159				(6,529	)