Exhibit 99

                    Press Release, dated October 21, 1996

             
             
             [LETTERHEAD OF ISB FINANCIAL CORPORATION]


                       FOR IMMEDIATE RELEASE


                         October 21, 1996


For further information contact:
Larrey G. Mouton
President & Chief Financial Officer
(318) 365-2361


       ISB Financial Completes Jefferson Bancorp Acquisition
                        NASDAQ/NMS: "ISBF"


    New Iberia, Louisiana--ISB Financial Corporation ("ISBF), the holding
company for Iberia Savings Bank, announced today that, subsequent to the
close of business on October 18, 1996, it completed the acquisition of
Jefferson Bancorp Inc ("JEBC"), the holding company for Jefferson Federal
Savings Bank.

    Under the terms of the acquisition agreement, overwhelmingly approved
by JEBC's stockholders, each shareholder of JEBC will receive a cash
payment of $23.00 for each share surrendered.  JEBC shareholders will
receive correspondence from Register & Transfer Company, ISBF's exchange
agent, containing complete instructions on how to surrender JEBC stock
certificates.

    Larrey G. Mouton, ISBF's president and chief executive officer
remarked, "We look forward to providing Jefferson customers with the same
high level of service they have enjoyed in the past.  Additionally,
customers will benefit from new services including debit cards, over-draft
protection services, expanded ATM services and a broad range of mortgage,
consumer and commercial services."

    At September 30, 1996, Iberia Savings Bank's assets totaled $685.8
million and JEBC's assets totalled $263.9 million.

    Upon consummation of the sale, Jefferson Federal Savings bank converted
to a Louisiana savings bank under the name  "Jefferson Bank"  and will
operate as a separate subsidiary of ISBF.  Boyd R. Boudreaux, former Senior
Vice President at Iberia Savings Bank, has been named president and chief
executive officer at Jefferson Bank.  Former Jefferson President and Chief
Executive Officer Karen L. Knight will continue as a director of Jefferson
Bank and has been added to the board of directors of ISBF.


                               MORE



                                                ISBF Completes JEBC Acquisiton
                                                October 21, 1996
                                                Page 2 of 2




    Iberia Savings Bank, in its 109th year of service, is a community-
oriented bank which presently operates a network of 18 full-service offices
located in New Iberia, Lafayette, Jeanerette, Franklin, Morgan City, St.
Martinville, Abbeville, Kaplan, Crowley and Rayne.

    Established in 1954, Jefferson Bank operates seven full-service offices
located in Gretna, Metairie, River Ridge, Algiers, Terrytown and Marrero.

    Iberia Savings Bank and Jefferson Bank are member FDIC institutions.
                               ####