Jefferson Bancshares, Inc. (Jefferson Bancshares) is the holding company for Jefferson Federal Bank (the Bank). The Bank operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its market area. It attracts deposits from the general public and uses those funds to originate loans, most of which it holds for investment. Its market areas consist of Hamblen County, Tennessee, and its contiguous counties; Knoxville, Tennessee, and its surrounding areas, and the greater Johnson City, Tennessee, Kingsport, Tennessee, and Virginia region. As of June 30, 2012, it operated two full-service branch offices and two limited-service drive-through facilities in Hamblen County, Tennessee. As of June 30, 2012, it also operated two full-service branch offices in Knoxville, Tennessee. As of June 30, 2012, it operated six full-service branch offices in the Tri-Cities region.