Contact:  David B. Cook, President          FOR IMMEDIATE RELEASE
          (606) 248-1095





                   HFB FINANCIAL CORPORATION
             DECLARES FIVE FOR THREE STOCK SPLIT
            IN THE FORM OF 66 2/3% STOCK DIVIDEND


     The Board of Directors of HFB Financial Corporation on May
20, 1997 declared a five for three stock split in the form of a
66 2/3% stock dividend on the Company's outstanding Common Stock. 
The stock dividend is payable on June 30, 1997 to stockholders of
record as of June 15, 1997.

     Stockholders will receive five shares of Common Stock for
each three shares they hold on the record date.  Stockholders
entitled to receive fractional shares will receive cash based on
the stock's market price on June 15, 1997.  Management antici
pates the Corporation's next regular semi-annual cash dividend
will be paid on September 30, 1997, and expects the current
dividend rate per share will be reduced proportionately for both
the current and new shares.

     David B. Cook, President of the Company, stated that the
Board of Directors determined that the payment of the stock
dividend was appropriate in light of the Company's capital
position, market price of the Common Stock and recent operating
results.  He noted that any further dividends will depend upon
the Company's financial condition, earnings, equity structure,
capital needs, regulatory requirements and economic conditions.

     HFB Financial Corporation is the holding company for Home
Federal Bank which specializes in residential mortgage lending
and banking services.  The Bank serves Eastern Kentucky and
Northeastern Tennessee from its main office in Middlesboro,
Kentucky and branch offices in Harlan, Kentucky and New Tazewell,
Tennessee.  Total assets of HFB Financial Corporation at March
31, 1997 were $155.5 million and stockholders' equity was $15.8
million.