UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K
                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): January 7, 2010
                                                          ---------------

                           JEFFERSON BANCSHARES, INC.
                           --------------------------
             (Exact name of registrant as specified in its charter)

           Tennessee                   0-50347               45-0508261
           ---------                   ---------             ----------
(State or other jurisdiction of       (Commission          (IRS Employer
         incorporation)               File Number)         Identification No.)

         120 Evans Avenue, Morristown, Tennessee                37814
         ---------------------------------------                -----
         (Address of principal executive offices)             (Zip Code)

       Registrant's telephone number, including area code: (423) 586-8421
                                                           --------------

                                 Not Applicable
                                 --------------
          (Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))





ITEM 5.02     DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
              ------------------------------------------------------------------
              APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF
              -------------------------------------------------------------
              CERTAIN OFFICERS.
              ----------------

         (b)  On January 7, 2010, John F. McCrary, Jr. retired from the Board of
Directors of Jefferson Bancshares, Inc. (the "Company") and its wholly owned
subsidiary, Jefferson Federal Bank (the "Bank"). Mr. McCrary is 84 years old and
has served as a director of the Bank since 1963. Mr. McCrary's retirement is not
due to any disagreement with the Company or the Bank or any concerns relating to
the operations, policies or practices of either the Company or the Bank.









                                   SIGNATURES

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

                                       JEFFERSON BANCSHARES, INC.




Dated:  January 7, 2010                By: /s/ Anderson L. Smith
                                           -------------------------------------
                                           Anderson L. Smith
                                           PRESIDENT AND CHIEF EXECUTIVE OFFICER