Exhibit 99.1

                     [HFB FINANCIAL CORPORATION LETTERHEAD]


DATE:  August 22, 2001
FOR IMMEDIATE RELEASE

CONTACT: HFB Financial Corporation, Middlesboro, Kentucky
         David B. Cook, President, (505) 248-1098

            HOME FEDERAL BANK, FSB TO CONVERT TO A KENTUCKY-CHARTERED
                                 COMMERCIAL BANK


     MIDDLESBORO,   Ky.,  August  22,  2001  (BUSINESS  WIRE)  -  HFB  Financial
Corporation  (Nasdaq:  HFBA), the parent company of Home Federal Bank, a Federal
Savings Bank,  announced  today that its Board of Directors has authorized  Home
Federal  Bank  to  convert  from  a   federally-chartered   savings  bank  to  a
Kentucky-chartered  commercial  bank.  The  conversion  is subject to regulatory
approval by federal and Kentucky banking regulators.

     The purpose of the conversion is to allow Home Federal Bank to operate more
competitively  and  efficiently  as a community  bank.  As a  Kentucky-chartered
commercial  bank,  Home  Federal  Bank will  continue  to offer its  traditional
products  and  services  to  residents  of the  community  and will also have an
enhanced ability to offer its products and services to local businesses as well.
All of the  Bank's  current  branches  will  continue  to  operate as before the
conversion,  and all current  deposits and loans will remain  unaffected  by the
conversion. The Bank will also retain its current name, "Home Federal Bank."

     "The charter  conversion  will permit us to offer a wider range of products
and services to better serve the community as a whole.  We are excited about the
opportunities  as we embark on a new stage in the growth of Home Federal  Bank,"
said David B. Cook, President and Chief Executive Officer of Home Federal Bank.

     At  June  30,  2001,  HFB  Financial   Corporation   had  total  assets  of
$217,404,589  with three  community  banking  offices in Bell  County and Harlan
County,   Kentucky  and  one  community  banking  office  in  Claiborne  County,
Tennessee.

     This  news  release  contains  forward-looking   statements  regarding  HFB
Financial   Corporation.   All  forward-looking   statements  involve  risk  and
uncertainty  and actual  results could differ  materially  from the  anticipated
results or other expectations  expressed in the  forward-looking  statements.  A
discussion of factors that could cause actual results to differ  materially from
those  expressed  in the  forward-looking  statements  is  included  in the  HFB
Financial Corporation's filings with the Securities and Exchange Commission.