EXHIBIT 99.1
                                  ------------


SAFE  HARBOR  UNDER  THE  PRIVATE  SECURITIES  LITIGATION  REFORM  ACT  OF  1995
--------------------------------------------------------------------------------


The  Private  Securities  Litigation  Reform  Act of 1995 (the "Act") provides a
"safe  harbor"  for forward-looking statements to encourage companies to provide
prospective  information  about their companies, so long as those statements are
identified  as  forward-looking  and  are  accompanied  by meaningful cautionary
statements  identifying  important  factors  that  could cause actual results to
differ  materially  from  those  discussed in the statement. Home City Financial
Corporation  ("HCFC")  desires to take advantage of the "safe harbor" provisions
of  the  Act.  Certain  information,  particularly  information regarding future
economic  performance  and  finances  and  plans  and  objectives of management,
contained or incorporated by reference in HCFC's Quarterly Report on Form 10-QSB
for  the  three  months  and  nine  months  ended  September  30,  2002,  is
forward-looking.  In some cases, information regarding certain important factors
that  could  cause  actual  results of operations or outcomes of other events to
differ  materially  from any such forward-looking statement appear together with
such  statement.  In  addition,  forward-looking statements are subject to other
risks  and  uncertainties  affecting  the  financial  institutions  industry,
including,  but  not  limited  to,  the  following:

Interest  Rate  Risk
--------------------

HCFC's  operating  results  are  dependent  to  a  significant degree on its net
interest  income,  which  is  the difference between interest income from loans,
investments  and other interest-earning assets and interest expense on deposits,
borrowings  and  other  interest-bearing  liabilities.  The  interest income and
interest expense of HCFC change as the interest rates on interest-earning assets
and  interest-bearing  liabilities change.  Interest rates may change because of
general  economic conditions, the policies of various regulatory authorities and
other  factors  beyond  HCFC's  control.  In a rising interest rate environment,
loans tend to prepay slowly and new loans at higher rates increase slowly, while
interest  paid  on  deposits  increases rapidly because the terms to maturity of
deposits  tend  to be shorter than the terms to maturity or prepayment of loans.
Such  differences  in the adjustment of interest rates on assets and liabilities
may  negatively  affect  HCFC's  income.

Possible  Inadequacy  of  the  Allowance  for  Loan  Losses
-----------------------------------------------------------

HCFC  maintains  an  allowance  for  loan losses based upon a number of relevant
factors,  including,  but  not  limited to, trends in the level of nonperforming
assets  and classified loans, current and anticipated economic conditions in the
primary  lending  area,  past  loss  experience,  possible  losses  arising from
specific  problem  loans  and  changes in the composition of the loan portfolio.
While  the Board of Directors of HCFC believes that it uses the best information
available  to  determine  the  allowance  for  loan  losses,  unforeseen  market
conditions  could  result  in  material  adjustments,  and net earnings could be
significantly  adversely affected if circumstances differ substantially from the
assumptions  used  in  making  the  final  determination.

Loans  not  secured by one- to four-family residential real estate are generally
considered  to  involve  greater  risk  of  loss  than  loans secured by one- to
four-family  residential  real  estate  due,  in part, to the effects of general
economic  conditions.  The  repayment of multifamily residential, nonresidential
real estate loans and commercial loans generally depends upon the cash flow from
the  operation of the property, which may be negatively affected by national and
local  economic  conditions.  Construction loans may also be negatively affected
by  such  economic  conditions, particularly loans made to developers who do not
have  a  buyer  for  a property before the loan is made.  The risk of default on
consumer  loans  increases  during  periods  of recession, high unemployment and
other  adverse  economic  conditions.  When  consumers have trouble paying their
bills,  they  are  more  likely  to  pay mortgage loans than consumer loans.  In
addition, the collateral securing such loans, if any, may decrease in value more
rapidly  than  the  outstanding  balance  of  the  loan.

Competition
-----------

Home  City  Federal  Savings  Bank  of  Springfield  ("Home  City") competes for
deposits with other savings associations, commercial banks and credit unions and
issuers of commercial paper and other securities, such as shares in money market
mutual  funds.  The primary factors in competing for deposits are interest rates
and  convenience  of  office location.  In making loans, Home City competes with
other savings associations, commercial banks, consumer finance companies, credit
unions, leasing companies, mortgage companies and other lenders.  Competition is
affected  by,  among  other  things, the general availability of lendable funds,
general  and  local  economic conditions, current interest rate levels and other
factors  which  are not readily predictable.  The size of financial institutions
competing  with  Home  City  is  likely  to  increase  as a result of changes in
statutes  and  regulations  eliminating  various  restrictions on interstate and
inter-industry  branching and acquisitions.  Such increased competition may have
an  adverse  effect  upon  Home  City.

Legislation  and  Regulation  that  may  Adversely  Affect  HCFC's  Earnings
----------------------------------------------------------------------------

Home City is subject to extensive regulation by the Office of Thrift Supervision
(the  "OTS")  and  the Federal Deposit Insurance Corporation (the "FDIC") and is
periodically  examined  by  such  regulatory  agencies  to  test compliance with
various regulatory requirements.  As a savings and loan holding company, HCFC is
also  subject  to  regulation  and examination by the OTS.  Such supervision and
regulation  of  HCFC  and Home City are intended primarily for the protection of
depositors  and not for the maximization of shareholder value and may affect the
ability  of  the  company  to  engage  in  various  business  activities.  The
assessments,  filing  fees and other costs associated with reports, examinations
and  other  regulatory matters are significant and may have an adverse effect on
HCFC's  net  earnings.

The FDIC is authorized to establish separate annual assessment rates for deposit
insurance  of  members  of  the  Bank Insurance fund (the "BIF") and the Savings
Association  Insurance Fund (the "SAIF").  The FDIC has established a risk-based
assessment system for both SAIF and BIF members.  Under such system, assessments
may  vary  depending  on the risk the institution poses to its deposit insurance
fund.  Such  risk  level is determined by reference to the institution's capital
level  and  the  FDIC's  level  of  supervisory  concern  about the institution.