8-K

 1


                                  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) December 8, 2005
                                                         ----------------


                           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))




 2



ITEM 8.01   OTHER EVENTS.
            ------------

      On December 8, 2005, Jefferson Bancshares, Inc., the holding company for
Jefferson Federal Bank (the "Bank"), issued a press release providing the
experience and background of Janet Ketner, who was recently named Executive Vice
President in charge of Retail Banking. The press release dated December 8, 2005
is included as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01   FINANCIAL STATEMENTS AND EXHIBITS.
            ---------------------------------

      (a)   Financial Statements of Businesses Acquired: Not applicable

      (b)   Pro Forma Financial Information: Not applicable

      (c)   Exhibits

            Number            Description
            ------            -----------

            99.1              Press Release Dated December 8, 2005






                                        2

 3


                                   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: December 8, 2005                 By: /s/ Anderson L. Smith
                                            ------------------------------------
                                            Anderson L. Smith
                                            PRESIDENT AND
                                              CHIEF EXECUTIVE OFFICER


                                        3

EX-99.1

PRESS RELEASE



                           JEFFERSON BANCSHARES, INC.
             KETNER TO OVERSEE RETAIL BANKING FOR JEFFERSON FEDERAL

         December 8, 2005, Morristown, TN. Jefferson Bancshares, Inc. (Nasdaq:
JFBI) Janet Ketner, a long time banking executive, has recently joined Jefferson
Federal Bank to assume the duties as Executive Vice President in charge of
Retail Banking.

         "Janet and I worked together before I joined Jefferson Federal," said
Jefferson Federal Bank's President and CEO, Anderson L. Smith. Smith went on to
say, "Janet has over thirty-five years of banking experience and brings
tremendous insight, vision and energy to the position. Although Janet is highly
skilled, she also has the warmth and personality necessary to forge strong
customer relationships. We're fortunate to have her, and so are our customers."

         As the Executive Vice President of Retail Banking with Jefferson
Federal, Ketner is responsible for developing and guiding Jefferson Federal's
retail strategy. This involves analyzing the potential to add ancillary products
and services, supervision and implementation of long range planning issues,
customer development and insuring that the bank's customer service commitment is
followed throughout Jefferson Federal's branch system.

         Originally from Morristown, Ketner is the daughter of Mr. and Mrs.
James W. Johnson, and a graduate of Morristown Hamblen High School East. After
high school, Ketner attended Vanderbilt University where she graduated from the
Tennessee School of Banking, the Tennessee Consumer Credit School and
Vanderbilt's Southeastern School of Sales Leadership. Ketner also attended and
graduated from LSU's Graduate School of Banking.

         Active in the community, Ketner has been an avid supporter of the
United Way, where she served on the Leadership Committee, and a Board member for
the Youth Emergency Shelter. She is also a member of Manley Baptist Church, The
Country Club, Inc. and the Morristown Area Chamber of Commerce.

         Ketner and her husband, Mike, have two daughters, Ashley and Stacie,
along with granddaughter, Caitlyn, age eight.

Contact:
Anderson L. Smith, 423-586-8421
Jane P. Hutton, 423-586-8421