EXHIBIT 99.1
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SAFE  HARBOR  UNDER  THE  PRIVATE  SECURITIES  LITIGATION  REFORM  ACT  OF  1995
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     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  quarter  ended  June  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  appears  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
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     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
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     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
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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
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     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.