SFB Bancorp, Inc.
Ticker:SFBK 632 East Elk Avenue
Exchange:Over-the-Counter Market Elizabethton, TN 37643
Industry:Financial (SIC Code 6035) (423) 543-3518

Offering Information
Type of Shares:Common Shares Filing Date:3/18/97
U.S. Shares:767,000 Offer Date:5/30/97
Non-U.S. Shares:0 Filing Price:$10.00
Primary Shares:767,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:
Offering Amount: $7,670,000 Selling:
Expenses: - Reallowance:
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Trident Securities, Inc.Lead Manager (919) 781-8900

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Malizia, Spidi, Sloane & Fisch
Bank's Law Firm: Housley, Kantarian & Bronstein, P.C.
Auditor: Crisp Hughes & Co. LLP

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$3.63Assets:$46.58
Net Income:$0.26Curr Assets:
EPS:Liabilities:$41.90
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$0.34Equity:$4.68
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is not an operating company and has not engaged in any significant business to date. It was formed in March 1997, as a Tennessee Corporation to be the holding company for Security Federal Savings Bank. The holding company structure and retention of proceeds will facilitate: 1) diversification into non-banking activities; 2) acquisitions of other financial institutions, such as savings institutions; 3) expansion within existing and into new market areas and 4) stock repurchases without adverse tax consequences. There are no present plans regarding diversification, acquisitions or expansion. We have operated as an independent community oriented savings association since 1963. It is our intention to continue to operate as an independent community oriented savings association following the Conversion. Since Bancorp will own only one savings association, it generally will not be restricted in the types of business activities in which it may engage; provided, that we retain a specified amount of our assets in housing-related investments.

Use of Proceeds
The proceeds from the proposed offering will be used to purchase the common stock to be issued in the conversion and to make a loan to the employee stock ownership plan to fund its purchase of stock in the conversion.

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