U.S. SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
                                 Form 10-QSB

(Mark One)
[ X ]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE           
       SECURITIES  EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
       ENDED MARCH 31, 1999  
[    ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD 
       FROM _________ TO __________

                      Commission file number  - 0-21809

                       HOME CITY FINANCIAL CORPORATION       
                       -------------------------------
   (Exact name of small business issuer as specified in its charter)

              OHIO                                      34-1839475
              ------                                    ----------
  (State or other jurisdiction of         (I.R.S. Employer Identification No.)
   incorporation or organization)                         

         63 West Main Street                                             
         Springfield, Ohio                                        45502   
         ------------------                                       ------
  (Address of principal executive offices)                      (Zip Code)

                               (937) 324-5736
                                --------------
                        (Issuer's telephone number)

                                     N/A  
                                     ---
(Former name, former address and former fiscal year, if changed since last 
report)

Check whether the issuer (1) filed all reports required to be filed by Section 
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter 
period that the registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days
Yes    X     No
      ____         _____

As of April 30, 1999, 859,390 shares of common stock of the Registrant were 
outstanding.  There were no preferred shares outstanding.

<PAGE>
                      HOME CITY FINANCIAL CORPORATION 
                             SPRINGFIELD, OHIO

                               FORM 10-QSB

                                  INDEX
                                                                                
                                                                        
                                                                  Page Number

PART I        FINANCIAL INFORMATION  

Item. 1.      Financial Statements (Unaudited)

              Condensed consolidated balance sheets --                      3
              March 31, 1999, and December 31, 1998

              Condensed consolidated statements of income --                4
              Three months ended March 31, 1999 and 1998
          
              Condensed consolidated statements of changes in               5
              shareholders' equity --Three months ended March 31,
              1999
           
              Condensed consolidated statements of cash flows --            6
              Three months ended March 31, 1999 and 1998
          
              Notes to condensed consolidated financial                     7
              statements -- March 31,1999, and December 31, 1998

Item 2.       Management's Discussion and Analysis of Financial
              Condition and Results of Operations                          10


PART II       OTHER INFORMATION

Item 1.       Legal Proceedings                                            14

Item 2.       Changes in Securities and Use of Proceeds                    14

Item 3.       Defaults upon Senior Securities                              14

Item 4.       Submission of Matters to a Vote of Security Holders          14

Item 5.       Other Information                                            14

Item 6.       Exhibits and Reports on Form 8-K                             14

Signatures                                                                 15

<PAGE>



                        HOME CITY FINANCIAL CORPORATION
                               SPRINGFIELD, OHIO
                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                       (Dollars in thousands)
                                                                   (Unaudited)     
                                                                   At March 31,      At December 31,
                                                                   ------------      ---------------
                                                                        1999              1998
                                                                        ----              ----
<S>                                                                  <C>               <C>
ASSETS          
Cash and cash equivalents           
     Cash and due from banks                                           $   1,147        $   1,147
     Interest-bearing demand deposits in other banks                         547              763
     Federal funds sold                                                        0                0
                                                                       ---------        ---------
          Total cash and cash equivalents                                  1,694            1,910
          
Time deposits with original maturities of 90 days or more                     24               24
Investment securities available-for-sale, at fair value                    2,467            3,091
Mortgage-backed securities available-for-sale, at fair value                 536              559
Loans, net                                                                81,029           76,986
Stock in Federal Home Loan Bank                                              788              601
Accrued interest receivable                                                  457              440
Properties and equipment                                                     584              584
Cash surrender value of life insurance                                     1,136            1,129
Other assets                                                                  99               31
                                                                        --------         --------

          TOTAL ASSETS                                                  $ 88,814         $ 85,355
                                                                        ========         ========
          
LIABILITIES AND SHAREHOLDERS' EQUITY          
Liabilities          
Deposits                                                                $ 62,085         $ 60,499
Federal Home Loan Bank Advances                                           15,021           11,571
Notes payable                                                                300            1,800
Accrued interest payable                                                     147              115
Advance payments by borrowers for taxes and insurance                         53               74
Deferred income                                                               75              112
Other liabilities                                                            219              314
                                                                        --------          -------

          TOTAL LIABILITIES                                             $ 77,900          $ 74,485
          
Shareholders' equity          
Preferred shares, no par value; 1,000,000 shares          
     authorized; none issued                                                   0                 0
Common shares, no par value; 5,000,000 shares          
     authorized; 952,200 shares issued                                         0                 0
Additional paid-in capital                                                 6,028             6,013
Retained earnings, substantially restricted                                6,791             6,658
Treasury shares, at cost                                                  (1,304)           (1,304)
Accumulated other comprehensive income                                       455               517
Common shares purchased by:          
     Employee Stock Ownership Plan                                          (609)             (609)
     Recognition and Retention Plan                                         (447)             (405)
                                                                         -------          --------
          TOTAL SHAREHOLDERS' EQUITY                                      10,914            10,870
                                                                         -------          --------

     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                         $ 88,814           $ 85,355
                                                                         =======           ========
</TABLE>

See accompanying notes

<PAGE>

                        HOME CITY FINANCIAL CORPORATION
                              SPRINGFIELD, OHIO
                       CONSOLIDATED STATEMENTS OF INCOME 

<TABLE>
<CAPTION>
                                                                      (Dollars in thousands)
                                                                       (Unaudited)        (Unaudited)
                                                                     3 Months Ended     3 Months Ended
                                                                        March 31,          March 31,
                                                                        ---------          ---------
                                                                          1999               1998
                                                                          ----               ----
<S>                                                                    <C>                <C>        

INTEREST INCOME          
Loans                                                                   $  1,773           $  1,502
Mortgage-backed securities                                                     8                 10
Federal funds sold                                                             0                  1
Investment securities                                                         45                 60
Interest-bearing deposits                                                      0                  7
                                                                        --------           --------

     TOTAL INTEREST INCOME                                                 1,826              1,580
          
INTEREST EXPENSE          
Deposits                                                                     769                697
Borrowed funds                                                               199                 95
                                                                        --------           --------       
     TOTAL INTEREST EXPENSE                                                  968                792
                                                                        --------           --------
          
     NET INTEREST INCOME                                                     858                788
Provision for loan losses                                                     17                 12
                                                                        --------           --------

     NET INTEREST INCOME AFTER PROVISION          
          FOR LOAN LOSSES                                                    841                776
          
NONINTEREST INCOME          
Service charges on deposits                                                    3                  3
Life insurance                                                                13                 13
Other income                                                                   5                  2
                                                                        --------           --------

     TOTAL NONINTEREST INCOME                                                 21                 18
                                                                        --------           --------
          
NONINTEREST EXPENSE          
Salaries and employee benefits                                               286                251
Supplies, telephone and postage                                               18                 11
Occupancy and equipment                                                       43                 25
FDIC deposit insurance                                                         9                  8
Data processing                                                               36                 23
Legal, accounting and examination                                             54                 71
Franchise taxes                                                               45                 45
Other expenses                                                                48                 48
                                                                        --------           --------

     TOTAL NONINTEREST EXPENSE                                               539                482
                                                                        --------           --------

     NET INCOME BEFORE FEDERAL INCOME          
          TAX EXPENSE                                                        323                312
          
Federal income tax expense                                                   104                100
                                                                        --------           --------
          
     NET INCOME                                                         $    219           $    212
                                                                        ========           ======== 
          
Earnings per common share - basic                                            $0.28            $0.26
Earnings per common share - diluted                                          $0.25            $0.23
</TABLE>

See accompanying notes

<PAGE>

                        HOME CITY FINANCIAL CORPORATION
                               SPRINGFIELD, OHIO                         
             CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                    (Dollars in thousands)
                                     Number of shares                                                 Amounts
                                     ----------------                                                 -------
      
                                                                                                
                                                                                               
                                                              Common        Commmon                      
                                                              shares        shares      Additional                   
                                      Common     Treasury     purchased     purchased   paid-in    Retained
                                      Stock      Stock        by ESOP       by RRP      capital    earnings  
                                      -----      -----        ------        ------      -------    --------
<S>                                 <C>          <C>          <C>          <C>         <C>         <C>      
December 31, 1997                    952,200     (47,610)     (68,558)     (6,800)      $9,150       $6,037 
Net income                                                                                              951      
Other comprehensive income                                                                                       
 Change in                                                                                                  
 unrealized                                                                                                        
 gain (loss) on                                                                                                          
 securities                                                                                                                    
 available-for-sale, net of                                                                   
 deferred income                                                                                           
 tax of $97                                                                                                     
Comprehensive income                                                                                               
Purchase of treasury stock                       (45,200)                                                 
Purchase of common shares                                                                                    
 by recognition and                                                                                            
 retention plan                                                           (17,002)                               
Shares earned under                                                                                               
 employee stock                                                                                                  
 ownership plan                                                 7,618                       36                     
Shares earned on recognition                                                                                              
 and retention plan                                                         4,761           (7)         
Return of capital                                                                                             
 ($3.50 per share)                                                                      (3,166)           
Dividends declared                                                                                       
 ($.37 per share)                                                                                    (330)
                                     -------      -------      -------    -------        ------     ----- 
December 31, 1998                    952,200     (92,810)     (60,940)    (19,041)       6,013      6,658    
                                                                                                         
                                                  Accumu-                                                  
                                                  ulated                                                 
                                                  other        Common       Common                                     
                                                  compre-      shares       shares        Compre-            
                                      Treasury    hensive      purchased    purchased     hensive                 
                                      stock       income       by ESOP      by RRP        income            
                                      -----       ------       -------      ------        ------
December 31, 1997                      ($711)        $332        ($686)      ($118)            
Net income                                                                               $ 951
Other                                                                                         
 Change in unrealized                                                                          
 gain (loss) on securities                                                                             
 available-for-sale, net of                                                                      
 deferred income                                                                             
 tax of $97                                                                                                 
Comprehensive income                                  185                                 185
                                                                                        ------
                                                                                        $1,136
                                                                                        ======
Purchase of tresury stock                593                                                  
Purchse of common shares                                                                      
 by recognition and                                                                           
 retention plan                                                               (370)           
Shares earned under                                                                           
 employee stock                                                                               
 ownership plan                                                     77                          
Shares earned on recognition                                                                  
 and retention plan                                                             83                
Return of capital                                                                              
 ($3.50 per share)                                                                                      
Dividends declared                                                                              
 ($.37 per share)                                                                                    
                                      ------          ---         -----       -----           
December 31, 1998                     (1,304)         517         (609)       (405)                                    
                                                                                                    
                                                               Common       Common                              
                                                               shares       shares        Additional     
                                      Common      Treasury     purchased    purchase      paid-in       Retained
                                      stock       stock        by ESOP      by RRP        capital       earnings
                                      -----       -----        -------      ------        -------       --------
Net income                                                                                                       
Other comrpehensive income                                                                                  219
 Change in unrealized                                                                                        
 gain (loss) on securities                                                                                   
 available-for-sale, net of                                                                                  
 deferred income                                                                                              
 tax of $33                                                                                                   
Comprehensive income                                                                                          
Purchase of common shares                                                                                    
 by recognition and                                                                                              
 retention plan                                                              2,500           15                                 
Shares earned under                                                                                              
 employee stock                                                                                                 
 ownership plan                                                                                                
Dividends declared                                                                                              
 ($.10 per share)                                                                                            86      
                                     -------      --------     -------     --------     --------         ------
March 31, 1999                       952,200      (92,810)     (60,940)    (21,541)     ($6,028)         $6,791           
                                     =======      ========     ========    ========     ========         ======
                                                                                                                
                                                  Accum-                                           
                                                  ulated                                             
                                                  other      Common         Common               
                                                  compre-    shares         shares        Compre-      
                                      Treasury    hensive    purchased      purchased     hensive
                                      Stock       income     by ESOP        by RRP        income               
                                      -----       ------     -------        ------        ------
                                                                                                            
Net income                            (1,304)         517         (609)         (405)                   
Other comprehensive income                                                                  $219                            
 Change inunrealized                                                                                          
 gain (loss) on securities                                                                                         
 available-for-sale, net of                                                                               
 deferred income                                                                                              
 tax of $33                                           (62)                                   62
                                                                                            ----
Comprehensive income                                                                        $157
                                                                                            ====
Purchase of common shares                                                                       
 by recognition and                                                                             
 retention plan                                                                  (42)           
Shares earned under                                                                          
 employee stock                                                                                
 ownership plan                                                                                                  
Dividends declared                                                                                               
 ($.10 per share)                                                                                                
                                     -------         ----        -----         -----            
March 31, 1999                       ($1,304)        $455        ($609)        ($447)          
                                     =======         ====        =====         ======          

</TABLE>
<PAGE>


                        HOME CITY FINANCIAL CORPORATION
                              SPRINGFIELD, OHIO
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                         (Dollars in thousands)
                                                                        (Unaudited)        (Unaudited)
                                                                       3 Months Ended     3 Months Ended
                                                                          March 31,          March 31,
                                                                          ---------          ---------
                                                                            1999              1998
                                                                            ----              ----
<S>                                                                       <C>               <C>
          
CASH FLOWS FROM OPERATING ACTIVITIES           
Net income                                                                 $      219        $     212
Adjustments to reconcile net income to net cash          
     provided by operating activities:          
          Premium amortization, net of discount accretion                            1               3
          Provision for loan losses                                                 17              12
          Depreciation                                                              16              14
          Deferred income taxes                                                      7               1
          Life insurance income, net of expenses                                    (7)             (7)
          Employee Stock Ownership Plan compensation expense                        15              15
          Recognition and Retention Plan compensation expense                       18              30
          FHLB stock dividends                                                     (12)             (8)
          Net change in:          
               Accrued interest receivable                                         (17)              4
               Accrued interest payable                                             32              21
               Other assets                                                        (68)            (38)
               Other liabilities                                                   (95)            (25)
                                                                              --------        --------   
     Net cash provided by operating activities                                     126             234
                                                                              --------        --------
          
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of securities available-for-sale                                            0             (70)
Proceeds from maturities of securities available-for-sale                          500           1,000
Collections on mortgage-backed securities available-for-sale                        22              41
Net increase in loans                                                           (4,060)         (5,199)
Purchases of properties and equipment                                              (16)             (8)
Purchase of FHLB stock                                                            (175)              0
                                                                             ---------       ---------
     Net cash used in investing activities                                      (3,729)         (4,236)
          
CASH FLOWS FROM FINANCING ACTIVITIES          
Net increase in deposits                                                         1,586           3,856
Net increase (decrease) in short-term FHLB advances                               (400)            200
Proceeds from new long-term FHLB advances                                        4,000             375
Payments on long-term FHLB advances                                               (150)            (99)
Net decrease in advance payments by borrowers          
     for taxes and insurance                                                       (21)            (20)
Payments on notes payable                                                       (1,500)              0
Purchase of common shares by Recognition and Retention Plan                        (42)              0
Cash dividends paid                                                                (86)            (81)
                                                                              --------        --------
     Net cash provided by financing activities                                   3,387           4,231
          
     Net increase (decrease) in cash and cash equivalents                         (216)            229
          
CASH AND CASH EQUIVALENTS AT BEGINNING           
     OF PERIOD                                                                   1,910           1,518
                                                                              --------        --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                    $  1,694        $  1,747
                                                                              ========        ========
</TABLE>

See accompanying notes

<PAGE>



                      HOME CITY FINANCIAL CORPORATION

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     MARCH 31, 1999 AND DECEMBER 31, 1998

                                (Unaudited)




NOTE 1.  BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited consolidated 
financial statements contain all adjustments necessary for a fair presentation 
of Home City Financial Corporation's ("Company" or "HCFC") financial position  
as of March 31, 1999 and 1998, and the consolidated results of operations and 
the cash flows for the three months ended March 31, 1999 and 1998.  Certain 
information and note disclosures normally included in financial statements 
prepared in accordance with generally accepted accounting principles ("GAAP") 
have been omitted pursuant to the rules and regulations of the Securities and 
Exchange Commission.  It is suggested that these consolidated financial 
statements be read in conjunction with the consolidated financial statements 
and notes thereto included in the Company's Annual Report on Form 10-KSB.  The 
results of operations for the three months ended March 31, 1999, are not 
necessarily indicative of the results which may be expected for the entire 
fiscal year.

NOTE 2.  ALLOWANCE FOR LOAN LOSSES

Activity in the allowance for loan losses is summarized as follows:

                                                  (Dollars in thousands)
                                                   Three     
                                                months ended    Year ended
                                                  March 31,     December 31,
                                                  ---------     ------------
                                                    1999           1998
                                                    ----           ----
          
Balance, beginning of period                       $  486        $   452
Provision for loan losses                              17             61
Charge-offs                                           (10)           (40)
Recoveries                                              0             13
                                                   ------         ------
Balance, end of period                             $  493         $  486
                                                   ======         ======

NOTE 3.  ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at March 31, 1999, consisted of five short-term advances totaling 
$2.6 million and fourteen long-term advances totaling $12.4 million from the 
Federal Home Loan Bank of Cincinnati ("FHLB").  The advances are 
collateralized by all shares of FHLB stock owned by the Home City Federal 
Savings Bank of Springfield ("Bank") and by the Bank's qualified mortgage loan 
portfolio.

<PAGE>

Scheduled maturities of advances from the FHLB were as follows:
<TABLE>
<CAPTION>
                                                    (Dollars in thousands)
                                 At March 31, 1999                         At December 31, 1998                      
                              
                                   Range of     Weighted-                    Range of         Weighted-
                                   interest     average                      interest         average
                        Amount     rates        interest rate     Amount     rates            interest rate
                        ------     -----        -------------     ------     -----            --------
<S>                    <C>        <C>            <C>             <C>        <C>              <C>           
                              
Due within                              
     one year           $2,626     4.99%           4.99%            $1,526     5.02%            5.02%
                              
After one but                              
     within five                              
     years              $2,433     4.64% - 8.35%    5.47%           $2,524     4.64% - 8.35%     5.49%
                              
After five                               
     years              $9,961     3.30% - 8.35%    5.40%           $7,521     3.30% - 8.35%     5.58%
                              
</TABLE>

NOTE 4.  NOTES PAYABLE

Notes payable at March 31, 1999, consisted of a short-term variable rate 
commercial note which HCFC obtained from a local bank.  The interest rate is 
indexed to prime and interest payments are made monthly.  The principal 
balance is due at maturity.

NOTE 5.  REGULATORY CAPITAL

The following table illustrates the compliance by the Bank with currently 
applicable regulatory capital requirements at March 31, 1999.

<TABLE>
<CAPTION>
                                                      (Dollars in thousands)
                                                                          Categorized as "Well
                                                                           Capitalized" Under
                                                       For Capital         Prompt Corrective
                                      Actual         Adequacy Purposes     Action Provisions
                                Amount     Ratio     Amount     Ratio      Amount     Ratio
                                ------     -----     ------     -----      ------     -----
<S>                            <C>        <C>       <C>        <C>        <C>       <C>
Total Risk-Based Capital                              
  (To Risk-Weighted Assets)     $10,805     17.8%     $4,850     8.0%      $6,063     10.0%
                              
Tier I Capital                              
  (To Risk-Weighted Assets)      10,312     17.0%       N/A       N/A       3,638      6.0%
                              
Tier I Capital                              
          (To Total Assets)      10,312     11.6%      2,670      4.0%      4,451      5.0%
                              
Tangible Capital                              
          (To Total Assets)      10,312     11.6%      1,335      1.5%       N/A        N/A
</TABLE>

<PAGE>


NOTE 6.EARNINGS PER SHARE

Earnings per share ("EPS") is computed in accordance with Statement of 
Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share," which 
was adopted by HCFC as of December 31, 1997.  Common stock equivalents include 
shares held by the Company's Employee Stock Ownership Plan ("ESOP") that are 
committed for release, shares awarded but not released under the Company's 
Recognition and Retention Plan ("RRP"), and stock options granted under the 
Stock Option Plan ("SOP").  Following is a reconciliation of the numerators 
and denominators of the basic and diluted EPS calculations.
<TABLE>
<CAPTION>
                                                               For the Three Months Ended
                                                               --------------------------
                                                                     March 31, 1999
                                                                     --------------
                                                                                        Per
                                                      Income           Shares           Share
                                                      (Numerator)     (Denominator)     Amount
                                                      ----------      -------------     ------
<S>                                                  <C>             <C>               <C>
Basic EPS                                                                                       
Income available to common shareholders               $219,344        778,465           $0.28
                                                                                                                  
Effective of dilutive securities                                                               
RRP shares                                                   0         19,985                      
ESOP shares                                                  0         60,940                 
Stock options                                                0         24,164                       
                                                       -------        -------                   
                                                                                               
Diluted EPS                                                                                  
Income available to common shareholders +                                                    
     assumed conversions                              $219,344        883,554           $0.25
                                                      ========        =======           =====
</TABLE>
<TABLE>                                                                                        
<CAPTION>                                                                                     
                                                                                                
                                                               For the Three Months Ended      
                                                               --------------------------      
                                                                    March 31, 1998            
                                                                    --------------            
                                                                                             
                                                                                        Per     
                                                      Income           Shares           Share   
                                                     (Numerator)     (Denominator)      Amount   
                                                     ----------      ------------       ------ 
<S>                                                 <C>             <C>                <C>
Basic EPS                                                                                                    
Income available to common shareholders               $211,864        829,232           $0.26
                                                                                              
Effective of dilutive securities                                                             
RRP shares                                                    0        23,802                  
ESOP shares                                                   0        68,558                     
Stock options                                                 0         9,586                 
                                                        -------       -------
               
Diluted EPS               
Income available to common shareholders +                
     assumed conversions                               $211,864       931,178           $0.23
                                                       ========       =======           =====
</TABLE>
               
<PAGE>


                          HOME CITY FINANCIAL CORPORATION 

              MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS



Safe Harbor Clause 

     This report contains certain "forward-looking statements."  The Company 
desires to take advantage of the "safe harbor" provisions of the Private 
Securities Litigation Reform Act of 1995 and is including this statement for 
the express purpose of availing itself of the protection of such safe harbor 
with respect to all such forward-looking statements.  These forward-looking 
statements, which are included in Management's Discussion and Analysis, 
describe future plans or strategies and include the Company's expectations of 
future financial results.  The words "believe," "expect," "anticipate," 
"estimate," "project," and similar expressions identify forward-looking 
statements.  The Company's ability to predict results or the effect of future 
plans or strategies is inherently uncertain.  Factors which could affect 
actual results include interest rate trends, the general economic climate in 
the Company's market area and the country as a whole, loan delinquency rates, 
and changes in federal and state regulations.  These factors should be 
considered in evaluating the forward-looking statements, and undue reliance 
should not be placed on such statements.  See Exhibit 99.2 attached hereto,
"Safe Harbor Under Private Securities Litigation Reform Act of 1995," which is
incorporated by reference.

General

     In September 1996, the Board of Directors of  Home City Federal Savings 
Bank of Springfield ("Bank") adopted a Plan of Conversion ("Plan") whereby the 
Bank would convert to the stock form of ownership, followed by the issuance of 
all the Bank's outstanding stock to a newly formed holding company, Home City 
Financial Corporation ("Company").  Pursuant to the Plan, the Company offered 
common shares for sale to certain depositors of the Bank and members of the 
community.  The conversion was completed on December 30, 1996, and resulted in 
the issuance of 952,200 common shares of the Company which, after 
consideration of offering expenses totaling approximately $447,000 and 
$762,000 in shares purchased by the ESOP ("Employee Stock Ownership Plan"), 
resulted in net capital proceeds of $8.3 million.  Condensed consolidated 
financial statements of the Company are presented herein.  Future references 
are made either to the Company or the Bank as applicable.

     The Company is a unitary savings and loan holding company whose 
activities are primarily limited to holding the stock of the Bank.  The Bank 
conducts a general banking business in west central Ohio which consists of 
attracting deposits from the general public and applying those funds to the 
origination of loans for residential, consumer and non- residential purposes. 
The Bank also originates loans for the construction of residential real estate 
and loans secured by multifamily real estate (over four units), commercial 
loans and consumer loans.  The Bank's profitability is significantly dependent 
on net interest income which is the difference between interest income 
generated from interest-earning assets (i.e., loans and investments) and the 
interest expense paid on interest-bearing liabilities (i.e., customer deposits 
and borrowed funds).  Net interest income is affected by the relative amount 
of interest-earning assets and interest-bearing liabilities and interest 
received or paid on these balances.  The level of interest rates paid or 
received by the Bank can be significantly influenced by a number of 
environmental factors, such as governmental monetary policy, that are outside 
of management control.

     Earnings per common share were computed by dividing net income by the 
weighted-average number of shares outstanding for the three--month periods 
ended March 31,1999 and 1998.  ESOP shares subject to a loan pledge agreement
are not considered to be outstanding shares for the purpose of determining 
the weighted-average number of shares used in the earnings per common share 
calculation.

     The consolidated financial information presented herein has been prepared 
in accordance with generally accepted accounting principles ("GAAP") and 
general accounting practices within the financial services industry.  In 
preparing consolidated financial statements in accordance with GAAP, 
management is required to make estimates and assumptions that affect the 
reported amounts of assets and liabilities and the disclosure of contingent 
assets and liabilities at the date of the financial statements and revenues 
and expenses during the reporting period.  Actual results could differ from 
such estimates.

     The Bank is regulated by the Office of Thrift Supervision ("OTS") and its 
deposits are insured up to applicable limits under the Savings Association 
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").

     The Bank is a member of the FHLB, conducting its business through its 
office located in Springfield, Ohio.  The primary market area of the Bank is 
Clark County, Ohio, and contiguous counties.
<PAGE>

Year 2000 Readiness

     Because the Bank's operations rely extensively on computer systems, the 
Bank is addressing problems associated with the possibility that computer 
systems will not recognize the year 2000 ("Y2K") correctly.  The Bank  has 
developed an Action Plan Year 2000, which was presented to the Board of 
Directors in the middle of 1997.  The Board of Directors appointed a Year 2000 
Committee, which reports to the Board of Directors monthly.

     The Bank relies primarily on third-party vendors for its computer output 
and processing, as well as other significant functions and services, such as 
securities safekeeping services, securities pricing information and wire 
transfers.  The Year 2000 Committee is working with the vendors to assess 
their Y2K readiness.  Based upon its assessment, the Board of Directors 
believes that with planned modifications to existing software and hardware and 
planned conversions to new software and hardware, the third-party vendors are 
taking the appropriate steps to ensure that critical systems will function 
properly.  The planned modifications and conversions have been substantially  
completed and tested.

     All personal computers ("PCs") and related software throughout the Bank 
have been inventoried and tested for Y2K capabilities.  Those PCs identified 
as not being Y2K  compatible have been replaced.  The Bank has estimated that 
the total cost for new hardware, software and related expenses will be 
approximately $50,000.  As of March 31, 1999, $42,000 of expenses has been 
incurred. 

     If the modifications and conversions by both third-party vendors and the 
Bank are not completed on a timely basis or if they fail to function properly, 
the operations and financial condition of the Company could be materially 
adversely affected.  The Bank has been developing contingency plans for 
continued operations in the event of system failure. The final review of 
contingency plan(s) is scheduled to occur in late May, 1999.
 

     In addition, financial institutions may experience increases in problem 
loans and credit losses in the event that borrowers fail to prepare properly 
for Y2K, and higher funding costs could result if consumers react to publicity 
about the issue by withdrawing deposits.  The Bank is assessing such risks 
among its customers.  The Company could also be materially adversely affected 
if other third parties, such as governmental agencies, clearing houses, 
telephone companies, utilities and other service providers fail to prepare 
properly.  The Bank is therefore attempting to assess these risks and take 
action to minimize their effect.

     The Bank has joined a nationwide "Ask Us About Y2K" program aimed at 
repairing a component of the nation's Year 2000 computer problem that 
programmers alone can't fix -- consumer confidence.  The program is part of an 
ongoing educational effort launched by America's Community Bankers ("ACB"), a 
national trade association, to help explain the Y2K date change problem and 
steps the thrift industry is taking to cure it.  The "Ask Us About Y2K" 
program is to encourage Bank customers to bring their Year 2000 financial 
questions and concerns into the Bank.


                       Changes in Financial Condition

     At March 31, 1999, the consolidated assets of the Company totaled $88.8 
million, an increase of $3.5 million, or 4.05%, from $85.3 million at December 
31, 1998.  The increase in total assets was primarily the result of a $4.0 
million increase in loans receivable funded primarily by a $3.5 million 
increase in advances from the FHLB and a $1.6 million increase in deposits.

     Net loans receivable increased by $4.0 million, or 5.25%, to $81.0 
million at March 31,1999, compared to $77.0 million at December 31, 1998.  The 
increase was primarily in the non-residential real estate and commercial loan 
portfolio. 

     Investment securities decreased $624,000, or 20.19%, from $3.1 million at 
December 31, 1998, to $2.5 million at March 31,1999.  The decrease was 
primarily the result of scheduled maturities of short-term investments being 
rolled into higher earning non-residential real estate and commercial loan 
production.

     During the three months ended March 31,1999, $22,000 of principal 
payments were received on mortgage- backed and related securities ("MBS").  No 
other transactions, purchases or sales, occurred during the period.

     Deposit liabilities increased $1.6 million, or 2.62%, from $60.5 million 
at December 31, 1998, to $62.1 million at March 31,1999.  Management 
attributes the increase to the maintenance of competitive rates in the Bank's 
market area.  Interest credited on accounts also contributed to the 
increase.  

<PAGE>

     Advances from the FHLB increased $3.5 million, or 29.82%, from $11.6 
million at December 31, 1998, to $15.0 million at March 31,1999.  The funds 
obtained were utilized to support the increased loan demand.

     Notes payable of $1.5 million were repaid.  These had been initiated to 
assist in funding of the special cash distribution to shareholders in June 
1998.

     Total shareholders' equity remained relatively constant increasing 
$44,000, or 0.40%, from December 31, 1998, to March 31,1999.  This increase 
was primarily the result of $219,000 in earnings for the first three months of 
fiscal year 1999 and a $15,000 increase in additional paid-in capital offset 
by the $86,000 cash dividend payment together with the unrealized losses on 
securities available-for-sale, $62,000, and the $42,000 purchase of common 
shares by the RRP Trust during the three months ended March 31,1999.

     The Bank's liquidity, primarily represented by cash and cash equivalents, 
is a result of its operating, investing and financing activities.  Principal 
sources of funds are deposits, loan and mortgage-backed securities repayments, 
maturities of securities and other funds provided by operations.  The Bank 
also has the ability to borrow from the FHLB and other local financial 
institutions.  While scheduled loan repayments and maturing investments are 
relatively predictable, deposit flows and early loan and mortgage-backed 
security prepayments are more influenced by interest rates, general economic 
conditions and competition.  The Bank maintains investments in liquid assets 
based upon management's assessment of (i) the need for funds, (ii) expected 
deposit flows, (iii) the yields available on short-term liquid assets and (iv) 
the objectives of the asset/liability  management program.  In the ordinary 
course of business,  part of such liquid investments portfolio is composed of 
deposits at correspondent banks.  Although the amount on deposit at such banks 
often exceeds the $100,000 limit covered by FDIC insurance, the Bank monitors 
the capital of such institutions to ensure that such deposits do not expose 
the Bank to undue risk of loss.

     OTS regulations presently require the Bank to maintain an average daily 
balance of liquid assets, which may include, but are not limited to, 
investments in United States Treasury, federal agency obligations and other 
investments having maturities of five years or less in an amount equal to 4% 
of the sum of the Bank's average daily balance of net withdrawable deposit 
accounts and borrowings payable in one year or less.  The liquidity 
requirement, which may be changed from time to time by the OTS to reflect 
changing economic conditions, is intended to provide a source of relatively 
liquid funds upon which the Bank may rely if necessary to fund deposit 
withdrawals or other short-term funding needs.  At March 31, 1999, the Bank's 
regulatory liquidity ratio was 4.99%.  At such date, the Bank had commitments 
to originate loans totaling $5.3 million and no commitments to purchase or 
sell loans.  The Bank  considers its liquidity and capital reserves sufficient 
to meet its outstanding short- and long-term needs.  Adjustments to liquidity 
and capital reserves may be necessary, however, if loan demand increases more 
than expected or if deposits decrease substantially.

     The Bank is required by applicable law and regulation to meet certain 
minimum capital standards.  Such capital standards include a tangible capital 
requirement, a core capital requirement or leverage ratio and a risk-based 
capital requirement.  See "Note 5 - Regulatory Capital."  The Bank exceeded 
all of its capital requirements at March 31,1999.

     Savings associations are required to maintain "tangible capital" of not 
less than 1.5% of the association's adjusted total assets.  Tangible capital 
is defined in OTS regulations as core capital less intangible assets.

     Core capital is comprised of common stockholders' equity (including 
retained earnings), noncumulative preferred stock and related surplus, 
minority interests in consolidated subsidiaries, certain nonwithdrawable 
accounts and pledged deposits of mutual associations.  OTS regulations 
require savings associations, except for associations that meet certain
requirements, to maintain core capital of at least 4% of the association's
adjusted total assets. 

     OTS regulations require that savings associations maintain "risk-based 
capital" in an amount not less than 8% of risk-weighted assets.  Assets are 
weighted at percentage levels ranging from 0% to 100% depending on their 
relative risk.  Risk-based capital is defined as core capital plus certain 
additional items of capital, which in the case of the Bank includes a general 
loan loss allowance of $493,000 at March 31, 1999.

     At March 31,1999, the Bank had no material commitments for capital 
expenditures.

     On February 18, 1999, the Board of Directors of the Company declared a 
quarterly cash dividend in the amount of $0.10 per share to each shareholder 
of record on March 1, 1999, paid on March 15, 1999. 
<PAGE>

Results of Operations

Comparison of Three Months Ended March 31, 1999 and 1998

     General.  Net income increased $7,000, or 3.30%, from $212,000 for the 
three months ended March 31,1998, to $219,000 for the three months ended March 
31,1999.  This increase was primarily attributed to an increase in net 
interest income and partially offset by increases in non-interest expense.

     Interest Income.  The $12.5 million increase in average earning assets 
contributed to an increase in interest income of $246,000, or 15.57%, for the 
three months ended March 31,1999 compared to 1998.  The increase was 
attributed to the additional loan income of $271,000 resulting from an 
increase in loans receivable, which was partially offset by a decrease of 
$25,000 in interest income on other earning assets.  Of the overall increase 
in interest income, $298,000 is attributable to earning asset volume increases 
offset by a decrease of $52,000 attributable to rate or yield. 

     Interest Expense.  Interest expense on deposit liabilities increased 
$72,000, or 10.33%,  for the three months ended March 31,1999, as compared to 
the same period in 1998.  Although total average deposits increased by $7.4 
million comparing the quarter ended March 31, 1999 to 1998, the average 
interest rate paid on interest-bearing deposits decreased by 18 basis points 
from 5.35% for the three months ended March 31,1998, to 5.17% for the same 
period ended March 31,1999.  The average balance of FHLB advances increased 
from $6.3 million for the three-month period ended March 31,1998, to $13.5 
million for the same period ended March 31,1999, resulting in an increase in
interest on FHLB advances of $84,000 for the three months ended March 31,
1999, compared to the same period ended March 31,1998.  Notes payable 
accounted for a $20,000 increase in interest expense for the three months
ended March 31, 1999.  Of the overall increase in interest expense, $202,000 
is attributable to interest costing liability volume increases offset by a 
decrease of $26,000 attributable to rates paid.

     Provision for Loan Losses.  The provision for loan losses was $17,000 and 
there were net charge-offs of $10,000 during the three months ended March 
31,1999, compared to a $12,000 provision and net charge-offs of $9,000  during 
the three months ended March 31, 1998.  The provision was increased based upon 
the results of the ongoing loan reviews and composition of the loan portfolio.

     Non-Interest Income.  Non-interest income increased by $3,000 for the 
three months ended March 31,1999, compared to the same period in 1998.  The 
increase was related to income from miscellaneous fees and charges. 

     Non-Interest Expense.  Non-interest expense increased $57,000, or 11.83%, 
to $539,000 for the three months ended March 31,1999, from $482,000 in the 
comparable period in 1998.  Of this increase, $35,000 was attributable to an 
increase in compensation and benefit expense in 1999, reflecting the addition 
of staff related to the non-residential real estate and commercial lending 
function and an increase in compensation expense for the RRP and the ESOP due 
to increases in the average stock price.  The annualized ratio of non-interest 
expense to average total assets was 2.47% and 2.61% for the three months ended 
March 31,1999 and 1998, respectively.

     Income Taxes.  The provision for income taxes increased $4,000 for the 
three months ended March 31,1999, compared with the prior year, primarily as a 
result of composition of the taxable and non-taxable income for the quarter.

<PAGE>

                      HOME CITY FINANCIAL CORPORATION
 
                        PART II - OTHER INFORMATION


    ITEM 1 - LEGAL PROCEEDINGS
     
             None 
          
         
    ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
           
             Not Applicable
                               
              
    ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
                 
             Not Applicable
              
               
    ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
             
             On April 28, 1999, the Corporation held its Annual 
             Meeting of Shareholders.
             
             Each of the five directors nominated were elected to terms 
             expiring in 2000 by the following votes:
             
               John D. Conroy              For: 668,732     Withheld:    255
                                                -------                -----
               P. Clark Engelmeier         For: 668,732     Withheld:    255
                                                -------                -----
               James Foreman               For: 663,732     Withheld:  5,255
                                                -------                -----
               Terry A. Hoppes             For: 665,032     Withheld:  3,955
                                                -------                -----
               Douglas L. Ulery            For: 668,732     Withheld:    255
                                                -------                -----
               
            One other matter was submitted to the shareholders, for which the 
            following votes were cast:
                    
            Ratification of the selection of Robb, Dixon, Francis, Davis, 
            Oneson & Company as the auditors of Home City Financial Corporation
            for the current year:
                 
            For: 666,212     Against:   1,000    Abstain:   1,775   
                 -------                -----               -----
            Broker Non-votes:   0
                             -----
                         
         
    ITEM 5 - OTHER INFORMATION
      
             Not Applicable
           
             
    ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
            
             a.  Exhibit 27: Financial Data Schedule, March 31,1999

             b.  No report on Form 8-K was filed during the quarter ended 
                 March 31, 1999. 

             c.  Exhibit 99.2, Safe Harbor Under the Private Litigation
                               ----------------------------------------
                 Reform Act of 1995
                 ------------------

    <PAGE>

SIGNATURES


     In accordance with the requirements of the Securities Exchange Act of 
1933, the registrant has duly caused this report to be signed on its behalf by 
the undersigned, thereunto duly authorized.





                                   HOME CITY FINANCIAL CORPORATION

Date:  May 14, 1999               /s/ Douglas L. Ulery
_________________________          _________________________________
                                   Douglas L. Ulery
                                   President 


Date:  May 14, 1999                /s/ Charles A. Mihal
-------------------------          --------------------------------- 
                                   Charles A. Mihal
                                   Treasurer and Chief Financial Officer


<PAGE>