(to Prospectus dated June 11, 1990)
JEFFERSON BANKSHARES, INC.
DIVIDEND REINVESTMENT PLAN
On March 23, 1993, Jefferson Bankshares, Inc. ("Jefferson")
declared a two for one stock split to holders of record of its
Common Stock as of April 2, 1993. As a result of this split, each
participant in the Dividend Reinvestment Plan received one additional
share of Common Stock for each share already held in his
Participant's Plan account as of the record date of the stock split.
Pursuant to Rule 416(b) under the Securities Act of 1933, such
shares are deemed to be registered. As a result, Jefferson has hereby
supplemented its Prospectus, effective January 3, 1994, to
reflect that 500,000 shares of Common Stock have been registered
pursuant to the Dividend Reinvestment Plan.
