<PAGE>
                                  UNITED STATES
                       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 September 30, 2005

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
         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)


              2454 North Limestone Street, Springfield, Ohio 45503
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (937) 390-0470
--------------------------------------------------------------------------------
                           (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 the filing requirements for the past 90 days.

      Yes   [X]       No   [ ]


Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

      Yes   [ ]       No   [X]


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

As of November 4, 2005, 835,690 common shares of the Registrant were
outstanding. There were no preferred shares outstanding.

Transitional Small Business Disclosure Format (Check one):
      Yes   [ ]       No   [X]


<PAGE>
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO

                                   FORM 10-QSB
                                      INDEX

                         ===============================
<TABLE>
<CAPTION>
                                                                                 Page Number
<S>                                                                              <C>
PART I  FINANCIAL INFORMATION

     ITEM

     1.   Financial Statements

          Condensed consolidated balance sheets -- September 30, 2005, and               3
          December 31, 2004

          Condensed consolidated statements of income -- Nine months and three           4
          months ended September 30, 2005 and 2004

          Condensed consolidated statement of changes in shareholders' equity --         5
          Nine months ended September 30, 2005

          Condensed consolidated statements of cash flows --                             6
          Nine months ended September 30, 2005 and 2004

          Notes to condensed consolidated financial statements                           7

     2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations                                                         12


     3.   Controls and Procedures                                                       18

PART II OTHER INFORMATION

     ITEM

     1.   Legal Proceedings                                                             19

     2.   Unregistered Sales of Equity Securities and Use of Proceeds                   19

     3.   Defaults upon Senior Securities                                               19

     4.   Submission of Matters to a Vote of Security Holders                           19

     5.   Other Information                                                             19

     6.   Exhibits and Reports on Form 8-K                                              19

Signatures                                                                              20

Index to Exhibits                                                                       21

Certifications                                                                        22 - 26

</TABLE>

                                       2
<PAGE>


                         PART I -- FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                      CONDENSED CONSOLIDATED BALANCE SHEETS

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                          (Dollars in thousands)
                                                                                       (Unaudited)
                                                                                       At September     At December
                                                                                         30, 2005        31, 2004
                                                                                       ------------     -----------
<S>                                                                                    <C>              <C>
ASSETS
Cash and cash equivalents
    Cash and due from banks                                                                $  2,716        $    859
    Interest-bearing demand deposits                                                          2,098           6,529
    Federal funds sold                                                                          863           2,207
                                                                                           --------        --------
        Cash and cash equivalents                                                             5,677           9,595

Available-for-sale securities                                                                 7,546           6,432
Loans held for sale                                                                             273             -0-
Loans, net of allowance for loan losses of $1,368 and $760
         at September 30, 2005 and December 31, 2004                                        127,295         130,067
Premises and equipment                                                                        3,451           3,602
Federal Home Loan Bank stock                                                                  2,445           2,360
Interest receivable                                                                             547             544
Cash surrender value of life insurance                                                        3,171           3,067
Other                                                                                           457             557
                                                                                           --------        --------
               TOTAL ASSETS                                                                $150,862        $156,224
                                                                                           ========        ========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
       Demand                                                                              $  7,043        $  5,235
       Savings, NOW and money market                                                         35,868          51,173
       Time                                                                                  56,171          50,796
                                                                                           --------        --------
               Total Deposits                                                                99,082         107,204
                                                                                           --------        --------

Federal Home Loan Bank advances                                                              37,305          35,120
Interest payable and other liabilities                                                        1,218           1,165
                                                                                           --------        --------

               TOTAL LIABILITIES                                                            137,605         143,489

COMMITMENTS AND CONTINGENT LIABILITIES

SHAREHOLDERS' EQUITY
Preferred shares, no par value: authorized 1,000,000 shares; none issued
                                                                                                -0-             -0-
Common shares, no par value: authorized 5,000,000 shares;
    shares issued - 981,913
                                                                                                -0-             -0-
Additional paid-in capital                                                                    6,355           6,325
Retained earnings                                                                             9,235           8,868
Unearned Recognition and Retention Plan (RRP) shares                                            (41)            (69)
Unearned Employee Stock Ownership Plan (ESOP) shares                                           (138)           (221)
Accumulated other comprehensive loss                                                           (164)           (178)
Treasury shares, at cost; 146,223 shares                                                     (1,990)         (1,990)
                                                                                           --------        --------
               TOTAL SHAREHOLDERS' EQUITY                                                    13,257          12,735
                                                                                           --------        --------
               TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                  $150,862        $156,224
                                                                                           ========        ========
</TABLE>

See notes to condensed consolidated financial statements.


                                       3
<PAGE>

                       HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                          (Dollars in thousands)                 (Dollars in thousands)
                                                      (Unaudited)         (Unaudited)        (Unaudited)        (Unaudited)
                                                     3 Months Ended      3 Months Ended    9 Months Ended      9 Months Ended
                                                     Sept. 30, 2005      Sept. 30, 2004    Sept. 30, 2005      Sept. 30, 2004
                                                     --------------      --------------    --------------      --------------
<S>                                                  <C>                 <C>               <C>                 <C>
INTEREST INCOME
Loans                                                   $2,196              $2,089             $6,530               $6,282
Securities                                                  22                  54                 81                  128
Federal funds sold                                           8                   4                 16                   41
Dividends on Federal Home Loan Bank stock                   30                  25                 85                   70
Deposits with financial institutions                        37                   7                 98                    7
                                                        ------              ------             ------               ------
    TOTAL INTEREST INCOME                                2,293               2,179              6,810                6,528

INTEREST EXPENSE
Deposits                                                   623                 605              1,826                1,817
Borrowings                                                 490                 485              1,439                1,451
                                                        ------              ------             ------               ------
    TOTAL INTEREST EXPENSE                               1,113               1,090              3,265                3,268
                                                        ------              ------             ------               ------

    NET INTEREST INCOME                                  1,180               1,089              3,545                3,260
Provision for loan losses                                   80                  42                635                  142
                                                        ------              ------             ------               ------

    NET INTEREST INCOME AFTER
     PROVISION  FOR LOAN LOSSES                          1,100               1,047              2,910                3,118

NONINTEREST INCOME
Service charges on deposits                                 11                  10                 31                   30
Net realized gains on sales of available-for-
     sale securities                                       -0-                   1                -0-                    6
Gain on redemption of Intrieve Incorporated
     stock                                                  16                 -0-                345                  -0-
Life insurance                                              57                  34                127                  103
Other                                                       32                  12                 68                   19
                                                        ------              ------             ------               ------
    TOTAL NONINTEREST INCOME                               116                 57                 571                  158

NONINTEREST EXPENSE
Salaries and employee benefits                             452                 489              1,350                1,383
Net occupancy expense                                       67                  71                201                  213
Equipment expense                                           52                  54                161                  166
Data processing fees                                        52                  60                181                  174
Professional fees                                           85                  56                231                  196
Franchise taxes                                             41                  38                122                  113
Other                                                      106                 113                291                  321
                                                        ------              ------             ------               ------

    TOTAL NONINTEREST EXPENSE                              855                 881              2,537                2,566
                                                        ------              ------             ------               ------

    NET INCOME BEFORE FEDERAL
      INCOME TAX EXPENSE                                   361                 223                944                  710

Provision for income tax expense                           115                  72                301                  210
                                                        ------              ------             ------               ------
    NET INCOME                                          $  246              $  151             $  643               $  500
                                                        ======              ======             ======               ======

Earnings per common share -- basic                      $ 0.30              $ 0.19             $ 0.79               $ 0.63
Earnings per common share -- diluted                    $ 0.30              $ 0.19             $ 0.78               $ 0.62
Dividends declared per share                            $ 0.11              $ 0.11             $ 0.33               $ 0.33

</TABLE>

See notes to condensed consolidated financial statements.


                                       4

<PAGE>

                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                           Accumulated
                                          Additional                           Unearned      Other
                                            Paid-in    Retained    Unearned      ESOP     Comprehensive Treasury
                                   Shares   Capital    Earnings  Compensation   Shares        Loss       Shares      Total
                                -------------------------------------------------------------------------------------------
<S>                                <C>      <C>          <C>        <C>        <C>        <C>          <C>          <C>
Balance, January 1, 2005           981,913  $6,325       $8,868     $(69)      $(221)     $(178)       $(1,990)     $12,735
      Comprehensive income
        Net income                                          643                                                         643
        Change in unrealized
          gain (loss) on
          securities
          available for
          sale, net of
          reclassification
          adjustment and
          tax  effect                                                                        14                          14
                                                                                                                    -------
         Total comprehensive
           income                                                                                                       657
                                                                                                                    -------
      Amortization of
        unearned
        compensation expense                                          28                                                 28

      ESOP shares earned                        30                                83                                    113


      Dividends on common
        shares, $.33 per share                             (276)                                                       (276)
                                   -------  ------       ------  -------       -----      -----        -------      -------
Balance, September 30, 2005        981,913  $6,355       $9,235     $(41)      $(138)     $(164)       $(1,990)     $13,257
                                   =======  ======       ======  =======       =====      =====        =======      =======
</TABLE>

See notes to condensed consolidated financial statements.


                                       5
<PAGE>




                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



<TABLE>
<CAPTION>
                                                                                                  (Dollars in thousands)
                                                                                            (Unaudited)            (Unaudited)
                                                                                           9 Months ended        9 Months ended
                                                                                         September 30, 2005    September 30, 2004
<S>                                                                                            <C>                     <C>
OPERATING ACTIVITIES
Net income                                                                                         $643                   $500
    Items not requiring (providing) cash
        Depreciation and amortization                                                               174                    175
        Provision for loan losses                                                                   635                    142
        Amortization of premiums and discounts on securities                                         21                     36
        Deferred income taxes                                                                      (419)                  (195)
        Increase in cash surrender value of life insurance                                         (104)                   (83)
        Employees Stock Ownership Plan compensation expense                                         113                    137
        Recognition and Retention Plan compensation expense                                          28                     27
        Net realized gains on available-for-sale securities                                          -0-                    (6)
        Gain on redemption of Intrieve Incorporated stock                                          (345)                    -0-
        Gain on sale of real estate owned                                                           (58)                    -0-
        FHLB stock dividends                                                                        (85)                   (70)
        Proceeds from sale of loans held for sale                                                 1,782                     -0-
        Originations of loans held for sale                                                      (2,019)                    -0-
        Gain on sale of loans                                                                       (36)                    -0-

    Changes in
               Interest receivable                                                                   (3)                    (9)
               Other assets                                                                         557                   (467)
               Interest payable and other liabilities                                               122                     27
                                                                                               --------                -------
                   NET CASH PROVIDED BY OPERATING ACTIVITIES                                      1,006                    214
                                                                                               --------                -------
INVESTING ACTIVITIES
        Purchase of available-for-sale securities                                               (14,986)                (9,970)
        Proceeds from payments and maturities of securities available-for-sale                   13,870                  3,754
        Proceeds from redemption of Intrieve Incorporated stock                                     360                    -0-
        Proceeds from sales of available-for-sale securities                                         -0-                   554
        Net change in loans                                                                       2,137                 (1,903)
        Purchases of premises and equipment                                                         (23)                   (23)
                                                                                               --------                -------
                   NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                            1,358                 (7,588)
                                                                                               --------                -------

FINANCING ACTIVITIES
        Net increase (decrease) in demand deposits, money market, NOW and
           savings accounts                                                                     (13,497)                 5,571
        Net increase (decrease) in certificates of deposit                                        5,375                 (1,462)
        Proceeds from Federal Home Loan Bank advances                                             8,000                  3,500
        Repayment of Federal Home Loan Bank advances                                             (5,815)                (1,542)
        Dividends paid                                                                             (276)                  (272)
        Net decrease in advances from borrowers for taxes and insurance                             (69)                   (56)
        Proceeds from stock options exercised -- new                                                 -0-                   231
        Proceeds from stock options exercised -- from treasury                                       -0-                   384
        Purchase of treasury shares                                                                  -0-                  (384)
                                                                                               --------                -------
                   NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                           (6,282)                 5,970
                                                                                               --------                -------
DECREASE IN CASH AND CASH EQUIVALENTS                                                            (3,918)                (1,404)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                    9,595                 10,473
                                                                                               --------                -------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                                        $ 5,677                $ 9,069
                                                                                               ========                =======
</TABLE>

See notes to condensed consolidated financial statements.

                                       6
<PAGE>


                         HOME CITY FINANCIAL CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                    SEPTEMBER 30, 2005 AND DECEMBER 31, 2004

                                   (UNAUDITED)

NOTE 1.  BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments necessary for a fair presentation
of Home City Financial Corporation's ("Company" or "HCFC") financial position as
of September 30, 2005, and December 31, 2004, and the consolidated results of
operations and the cash flows for the nine months ended September 30, 2005 and
2004. Those adjustments consist only of normal recurring adjustments. The
condensed consolidated balance sheet of the Company as of December 31, 2004, has
been derived from the audited consolidated balance sheet of the Company as of
that date. 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 although the Company believes that the
disclosures made are adequate to make the information not misleading. It is
suggested that these condensed 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 nine months ended September 30, 2005, are not necessarily
indicative of the results to be expected for the entire fiscal year.

NOTE 2.    ALLOWANCE FOR LOAN LOSSES

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

<TABLE>
<CAPTION>
                                      (Dollars in thousands)
                                      Three            Three                 Nine              Nine
                                      Months           Months                Months            Months
                                      Ended            Ended                 Ended             Ended
                                  September 30,     September 30,         September 30,     September 30,
                                      2005              2004                  2005              2004
                                  -------------     -------------         -------------     -------------

<S>                                   <C>                <C>                <C>               <C>
Balance, beginning of period          $1,286             $792               $  760            $ 995
Provision for loan losses                 80               42                  635              142
Charge-offs                              -0-              (13)                 (35)            (320)
Recoveries                                 2                1                    8                5
                                      ------             ----               ------            -----
Balance, end of period                $1,368             $822               $1,368            $ 822
                                      ======             ====               ======            =====

</TABLE>

NOTE 3.  ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at September 30, 2005, consisted of twenty advances for $37.3 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.

                                       7

<PAGE>

Scheduled maturities of advances from the FHLB were as follows:

<TABLE>
<CAPTION>
                                                           (Dollars in thousands)
                                   At September 30, 2005                             At December 31, 2004
                          -------------------------------------------     -------------------------------------------
                                         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                $ 3,630       3.30%-6.35%          3.93%        $ 1,249       2.38%-8.35%          3.22%

After one but
 within five
 years                   $19,540       3.05%-7.28%          5.90%        $14,719       3.05%-7.28%          5.60%

After five
 years                   $14,135       3.30%-5.80%          5.22%        $19,152       3.30%-6.84%          5.62%

</TABLE>

NOTE 4.       REGULATORY CAPITAL

The following table illustrates the compliance by the Bank with currently
applicable regulatory capital requirements at September 30, 2005.


<TABLE>
<CAPTION>
                                                                      (Dollars in thousands)
                                                                                                   To be
                                                                                           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)            $14,272     13.0%          $8,765           8.0%      $10,956      10.0%

Tier I Capital
   (To Risk-Weighted Assets)            $12,904     11.8%             N/A           N/A       $ 6,573       6.0%

Tier I Capital
   (To Total Assets)                    $12,904      8.6%          $6,029           4.0%*     $ 7,536       5.0%

Tangible Capital
   (To Total Assets)                    $12,904      8.6%          $2,261           1.5%          N/A       N/A


</TABLE>

*  Although the general required minimum is 4%, savings associations that meet
   certain requirements may be permitted to maintain minimum tier I capital to
   adjusted total assets of 3%.


                                       8

<PAGE>

NOTE 5.       EARNINGS PER SHARE

Earnings per share ("EPS") is computed in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share." Common stock
equivalents include shares held by the Company's Employee Stock Ownership Plan
("ESOP") that are committed for release and not subject to a loan pledge
agreement, shares awarded but not released under the Company's Recognition and
Retention Plan ("RRP") and stock options granted under the Stock Option Plan
("SOP"). Unearned ESOP and RRP shares which have not vested have been excluded
from the computation of average shares outstanding. For the three and nine
months ended September 30, 2005, stock options totaling 4,400 shares of common
stock were not considered in computing EPS as they were anti-dilutive (i.e., the
exercise price exceeded the market price at such date). For the three and nine
months ended September 30, 2004, stock options totaling 7,500 shares of common
stock were not considered in computing EPS as they were anti-dilutive. Following
is a reconciliation of the numerators and denominators of the basic and diluted
EPS calculations.

<TABLE>
<CAPTION>
                                                                            For the Three Months Ended
                                                                                September 30, 2005
                                                                                      Weighted-
                                                                                       average            Per
                                                                        Income          Shares           Share
                                                                     (Numerator)     (Denominator)       Amount
                                                                     -----------     -------------       ------
<S>                                                                     <C>               <C>            <C>
Basic EPS
   Income available to common shareholders                              $246,400           816,916       $0.30



   Effective of dilutive securities
   Stock options                                                               0            10,598
                                                                        --------           -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                                  $246,400           827,514       $0.30
                                                                        ========           =======

</TABLE>


<TABLE>
<CAPTION>
                                                                               For the Three Months Ended
                                                                                   September 30, 2004
                                                                                         Weighted-
                                                                                          average            Per
                                                                         Income            Shares           Share
                                                                      (Numerator)      (Denominator)       Amount
                                                                      -----------      -------------       ------
<S>                                                                      <C>               <C>           <C>
Basic EPS
   Income available to common shareholders                               $150,763          795,943          $0.19

   Effective of dilutive securities
   Stock options                                                                0           15,690
                                                                         --------          -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                                   $150,763          811,633          $0.19
                                                                         ========          =======

</TABLE>


                                        9
<PAGE>


<TABLE>
<CAPTION>
                                                                             For the Nine Months Ended
                                                                                  September 30, 2005
                                                                                        Weighted-
                                                                                         average             Per
                                                                        Income            Shares            Share
                                                                      (Numerator)      (Denominator)        Amount
                                                                      -----------      -------------       -------
<S>                                                                     <C>                <C>              <C>
Basic EPS
   Income available to common shareholders                              $643,175           816,304           $0.79

   Effective of dilutive securities
   Stock options                                                               0            10,086
                                                                        --------           -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                                  $643,175           826,390           $0.78
                                                                        ========           =======

</TABLE>




<TABLE>
<CAPTION>
                                                                          For the Nine Months Ended
                                                                               September 30, 2004
                                                                                     Weighted-
                                                                                      average            Per
                                                                     Income            Shares           Share
                                                                   (Numerator)     (Denominator)        Amount
                                                                   -----------     -------------        ------
<S>                                                                  <C>              <C>                <C>
Basic EPS
   Income available to common shareholders                           $499,524         791,090            $0.63

   Effective of dilutive securities
   Stock options                                                            0          17,294
                                                                     --------         -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                               $499,524         808,384            $0.62
                                                                     ========         =======

</TABLE>

                                       10
<PAGE>
NOTE 6.       STOCK OPTIONS

The Company accounts for its stock option plan under the recognition and
measurement principles of APB Opinion No. 25, Accounting for Stock Issued to
Employees, and related Interpretations. No stock-based employee compensation
cost is reflected in net income, as all options granted under those plans had an
exercise price equal to the market value of the underlying common stock on the
grant date. The following table illustrates the effect on net income and
earnings per share if the company had applied the fair value provisions of FASB
Statement No. 123, Accounting for Stock-Based Compensation, to stock based
employee compensation.

<TABLE>
<CAPTION>
                                                                (Dollars in thousands except per share amounts)
                                                 For the Three Months ended September 30   For the Nine Months ended September 30
                                                 ---------------------------------------   --------------------------------------
                                                         2005               2004                   2005              2004
                                                        -----              -----                  -----             -----
<S>                                                     <C>                <C>                    <C>               <C>
Net income, as reported                                  $246               $151                   $643              $500

Less:  Total stock-based employee compensation
       cost determined under the fair value
       based method net of income taxes                    (2)                (2)                    (7)               (7)
                                                        -----              -----                  -----             -----
Pro forma net income                                     $244               $149                   $636              $493
                                                        =====              =====                  =====             =====

Earnings per share:

       Basic -- as reported                             $0.30              $0.19                   $0.79            $0.63
                                                        =====              =====                   =====            =====
       Basic -- pro forma                               $0.30              $0.19                   $0.78            $0.62
                                                        =====              =====                   =====            =====
       Diluted -- as reported                           $0.30              $0.19                   $0.78            $0.62
                                                        =====              =====                   =====            =====
       Diluted -- pro forma                             $0.30              $0.18                   $0.77            $0.61
                                                        =====              =====                   =====            =====

</TABLE>


NOTE 7.       STATUS OF SUPERVISORY AGREEMENT

As of August 22, 2005, Home City Federal Savings Bank of Springfield entered
into a supervisory agreement with the OTS. Disclosure of the supervisory
agreement was filed in a Form 8-K. Management believes it is adhering
responsibly to the directives of this agreement and that Home City will have
enhanced its ability to provide excellent customer service to the community
while strengthening and maintaining its regulatory compliance and performance.


                                       11
<PAGE>
                                     ITEM 2.
           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 that 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 attached hereto, "Safe Harbor Under the 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. 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 secured by single-family residences, consumer loans and
loans secured by non-residential real estate. The Bank also originates loans for
the construction of residential real estate loans secured by multifamily real
estate (over four units), and commercial 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.

         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.

                                       12
<PAGE>

         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
two offices located in Springfield, Ohio. The primary market area of the Bank is
Clark County, Ohio, and contiguous counties.

CRITICAL ACCOUNTING POLICIES

         The accounting and reporting policies of Home City are in accordance
with accounting principles generally accepted in the United States and conform
to general practices within the banking industry. Home City's significant
accounting policies are described in detail in the notes to Home City's
consolidated financial statements for the year ended December 31, 2004. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions. The
financial position and results of operations can be affected by these estimates
and assumptions and are integral to the understanding of reported results.
Critical accounting policies are those policies that management believes are the
most important to the portrayal of Home City's financial condition and results,
and they require management to make estimates that are difficult, subjective, or
complex.

         The policy of management with respect to the amount of the allowance
for loan losses is a critical accounting policy for Home City. Management
evaluates the adequacy of the allowance for loan losses each quarter based on
management's regular review of the loan portfolio and consideration of such
factors as historical loss experience, generally prevailing economic conditions,
changes in the size and composition of the loan portfolio and considerations
relating to specific loans, including the ability of the borrower to repay the
loan and the estimated value of the underlying collateral.

         Some types of loans are inherently more risky than others. The
allowance for commercial loans, nonresidential real estate loans and multifamily
real estate loans, which generally carry more risk than single-family
residential real estate loans, is determined based upon the individual credit
relationships and national and local economic factors that could affect such
borrowers, as well as actual loss histories. The allowance recorded for
homogeneous consumer loans is based on an analysis of loan mix, risk
characteristics of the portfolio, fraud loss and bankruptcy experiences, and
historical losses, adjusted for current trends. The allowance for one- to
four-family residential real estate is based upon an analysis of national and
local economic conditions and loss histories. The allowance for impaired loans
is based on the collateral for collateral-dependent loans or the discounted cash
flows using the loan's effective interest rate.

         Although management utilizes its best judgment and information
available, the ultimate adequacy of the allowance is dependent upon a variety of
factors. Undetected losses are probable due to inherent delays in obtaining
information regarding a borrower's financial condition or changes in their
unique business conditions; the judgmental nature of individual loan
evaluations, collateral assessments and interpretations of economic trends; the
volatility of economic or customer-specific conditions affecting the
identification and estimation of losses for larger non-homogeneous credits; and
the sensitivity of assumptions utilized to establish allowances for homogeneous
groups of loans.


                         CHANGES IN FINANCIAL CONDITION

         At September 30, 2005, the consolidated assets of the Company totaled
$150.9 million, a decrease of $5.4 million, or 3.43%, from $156.2 million at
December 31, 2004. The decrease in total assets consisted primarily of the
decrease in cash and cash equivalents of $3.9 million and the decrease in net
loan balances of $2.8 million, both of which were offset by a $1.1 million
increase in available-for-sale securities.


                                       13

<PAGE>

         Net loans receivable decreased by $2.8 million, or 2.13%, to $127.3
million during the nine months ended at September 30, 2005, from $130.1 million
at December 31, 2004. The decrease reflected diminished loan origination
activity starting in the latter part of the first half of 2005 and on into the
third quarter.

         Total cash and cash equivalents decreased by $3.9 million, or 40.83%,
during the first nine months of 2005. This resulted primarily from funding $8.1
million of deposit outflows net of the $2.2 million increase in FHLB advances,
the $2.8 million decrease in net loan balances and the $1.1 million increase in
available-for-sale securities.

         Available-for-sale securities increased $1.1 million, or 17.32%, from
$6.4 million at December 31, 2004, to $7.5 million at September 30, 2005, mainly
as the result of net redistribution of a portion of federal funds into treasury
investments.

         Deposit balances decreased $8.1 million, or 7.58%, from $107.2 million
at December 31, 2004, to $99.1 million at September 30, 2005. While demand,
savings, NOW and money market deposits decreased by $13.5 million, or 23.93%,
time deposits increased by only $5.4 million, or 10.58%, reflecting the
diminished Prime Statement savings account balances as depositors moved into
short-term certificates with the Bank or investment opportunities elsewhere as
rates continued their measured rise.

         Advances from the FHLB increased $2.2 million, or 6.22%, from $35.1
million at December 31, 2004, to $37.3 million at September 30, 2005,
representing a source of additional liquidity.

         Total shareholders' equity increased $522,000, or 4.10%, from December
31, 2004, to September 30, 2005. This increase was primarily the result of the
$643,000 of first nine months 2005 income together with increases of $113,000
from ESOP shares earned, $28,000 amortization of unearned compensation expense
and the $14,000 decrease in accumulated other comprehensive loss, all of which
were partially offset by the $276,000 cash dividend payments.

         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 investment 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 sufficient 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. The liquidity ratio
is the percentage that this average daily balance of liquid assets bears to the
sum of the Bank's average daily balance of net withdrawable deposit accounts and
borrowings payable in one year or less. At September 30, 2005, the Bank's
regulatory liquidity ratio was 12.64%. At such date, the Bank had commitments to
originate loans totaling $12.9 million and commitments to sell loans of
$273,000. 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.

                                       14
<PAGE>

         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 4 - Regulatory Capital." The Bank exceeded all of
its capital requirements at September 30, 2005.

         On February 28, 2005, the Board of Directors of the Company declared a
quarterly cash dividend in the amount of $.11 per share to each shareholder of
record on March 10, 2005, which was paid on March 15, 2005. On May 23, 2005, the
Board of Directors of the Company declared a quarterly cash dividend in the
amount of $.11 per share to each shareholder of record on June 8, 2005, which
was paid on June 15, 2005. On August 22, 2005, the Board of Directors of the
Company declared a quarterly cash dividend in the amount of $.11 per share to
each shareholder of record on September 8, 2005, which was paid on September 15,
2005.

                              RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004

         GENERAL. Net income increased $95,000, or 62.91%, from $151,000 for the
three months ended September 30, 2004, to $246,000 for the three months ended
September 30, 2005. The increase was comprised of an increase of $91,000 in net
interest income, an increase of $59,000 in noninterest income and a $26,000
decrease in noninterest expense, all of which were partially offset by an
increase of $38,000 in the provision for loan losses and an increase of $43,000
in the provision for federal income tax expense.

         INTEREST INCOME. Average earning assets decreased $5.5 million, but a
56 basis point increase in yields resulted in an increase in interest income of
$114,000, or 5.23%, for the three months ended September 30, 2005, compared to
the same period in 2004. The increase in yields resulted mainly from the
repricing of variable rate loans as the Federal Reserve raised rates 25 basis
points eleven times since July 2004 through September 30, 2005.

         INTEREST EXPENSE. Interest expense on deposit liabilities increased
$18,000, or 2.98%, for the three months ended September 30, 2005, as compared to
the same period in 2004. Total average deposits decreased by $5.7 million
comparing the quarters ended September 30, 2005 and 2004, and the average
interest rate paid on interest-bearing deposits increased by 22 basis points
from 2.42% for the three months ended September 30, 2004, to 2.64% for the same
period in 2005. The average balance of FHLB advances increased from $34.6
million for the three-month period ended September 30, 2004, to $35.3 million
for the same period in 2005 and, offset by a 5 basis point decrease in rates
paid, resulted in an increase in interest on FHLB advances of $5,000 for the
three months ended September 30, 2005, compared to the same period in 2004.

         PROVISION FOR LOAN LOSSES. The provision for loan losses was $80,000,
and there were $2,000 in net recoveries during the three months ended September
30, 2005, compared to a $42,000 provision and $12,000 in net charge-offs during
the three months ended September 30, 2004. The provision was increased based
upon the results of management's ongoing loan reviews, analysis of loan
delinquencies, analysis of the economic factors specific to our local
demographic area, as well as national data, and in conjunction with historic
trends and portfolio composition.

         NONINTEREST INCOME. Noninterest income increased by $59,000 for the
three months ended September 30, 2005, compared to the same period in 2004. The
increase was mainly due to an additional gain of $16,000 on the redemption of
Intrieve Incorporated stock. Another $23,000 resulted from surrender fees
terminating on three life insurance policies held to their tenth anniversary
year.


                                       15

<PAGE>

         NONINTEREST EXPENSE. Noninterest expense decreased $26,000, or 2.95%,
to $855,000 for the three months ended September 30, 2005, from $881,000 in the
comparable period in 2004. This decrease was attributable to a $37,000 decrease
in salaries and employee benefits expense reflecting staffing decisions and was
offset partially by a net increase of $11,000 in other noninterest expenses. The
annualized ratio of noninterest expense to average total assets was 2.26% for
both the quarter ended September 30, 2005, and the quarter ended September 30,
2004.

         INCOME TAXES. The provision for income taxes increased $43,000 for the
three months ended September 30, 2005, compared with the same period in the
prior year, primarily as a result of the $138,000 increase in net income before
federal income tax expense and the composition of the taxable and non-taxable
income for the quarter. The effective tax rate for the three months ended
September 30, 2005, was 31.86% versus 32.29% for the same period in 2004.

COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004

         GENERAL. Net income increased $143,000, or 28.60%, from $500,000 for
the nine months ended September 30, 2004, to $643,000 for the nine months ended
September 30, 2005. This increase was primarily attributed to an increase of
$285,000 in net interest income, an increase of $413,000 in noninterest income
and a $29,000 decrease in noninterest expense, all of which were partially
offset by a $493,000 increase in the provision for loan losses and a $91,000
increase in federal income tax expense.

         INTEREST INCOME. The $1.3 million decrease in average earning assets
was more than offset by a 32 basis point increase in yields which resulted in an
increase in interest income of $282,000, or 4.32%, for the nine months ended
September 30, 2005, compared to the same period in 2004. The increase in yields
caused an increase of $194,000 in interest income, with the remaining $88,000
increase resulting from a shift into higher yielding loans from investment
securities and federal funds sold even though the total amount of average
interest earning assets decreased. The increase in yields resulted mainly from
the repricing of variable rate loans as the Federal Reserve raised rates 25
basis points eleven times since July 2004 through September 30, 2005.

         INTEREST EXPENSE. Interest expense on deposit liabilities increased
only $9,000, or 0.50%, for the nine months ended September 30, 2005, as compared
to the same period in 2004. Total average interest-bearing deposits decreased by
$1.8 million comparing the nine months ended September 30, 2005 to 2004, and the
average interest rate paid on interest-bearing deposits increased by only 6
basis points from 2.43% for the nine-month period ended September 30, 2004, to
2.49% for the same period ended September 30, 2005. The average balance of FHLB
advances was virtually the same at $34.6 million for the nine-month periods
ending September 30, 2004, and September 30, 2005. A decrease of 4 basis points
in cost resulted in a decrease in interest on FHLB advances of $12,000 for the
nine-month period ended September 30, 2005, compared to the same period ended
September 30, 2004. Of the overall decrease of $3,000 in interest expense,
$9,000 is attributable to rates paid, or yields, on interest costing
liabilities, and a $6,000 offsetting increase is attributed to a shift in mix of
interest-bearing liabilities even though total average balances decreased.

         PROVISION FOR LOAN LOSSES. The provision for loan losses was $635,000
and there were net charge-offs of $27,000 during the nine months ended September
30, 2005, compared to a $142,000 provision and net charge-offs of $315,000
during the nine months ended September 30, 2004. The provision was increased
significantly based upon the results of management's ongoing loan reviews,
analysis of loan delinquencies, analysis of the economic factors specific to our
local demographic area, as well as national data, and in conjunction with
historic trends and portfolio composition. The higher proportion of non-owner
occupied single family home loans and commercial nonresidential loans with their
inherently greater risk factors were key elements of the increased provision
although delinquencies still remain minimal.

         NONINTEREST INCOME. Noninterest income increased by $413,000 for the
nine months ended September 30, 2005, compared to the same period in 2004. The
increase was mainly due to a $345,000 net


                                       16



<PAGE>


gain on the redemption of Intrieve Incorporated stock. An additional $58,000
resulted from net gains on the sale of real estate owned.

         NONINTEREST EXPENSE. Noninterest expense decreased $29,000, or 1.13%,
to $2,537,000 for the nine months ended September 30, 2005, from $2,566,000 in
the comparable period in 2004. Decreases of $33,000 in salaries and employee
benefits, $12,000 in net occupancy expense and $30,000 in other noninterest
expense were partially offset by increases of $35,000 in professional fees and
$9,000 in franchise taxes. The annualized ratio of noninterest expense to
average total assets was 2.21% and 2.22% for the nine months ended September 30,
2005 and 2004, respectively.

         INCOME TAXES. The provision for income taxes increased $91,000 for the
nine months ended September 30, 2005, compared with the same period in the prior
year, primarily as a result of the $234,000 increase in net income before
federal income tax expense and the composition of the taxable and non-taxable
income for the nine-month period. The effective tax rate for the first nine
months of 2005 was 31.89% versus 29.58% for the same period in 2004 reflecting
the impact of the 34% tax rate on the $345,000 gain on the redemption of the
Intrieve Incorporated stock in 2005.


                                       17

<PAGE>

                                     ITEM 3.

                             CONTROLS AND PROCEDURES

The registrant's principal executive officer and principal financial officer
have concluded, based upon their evaluation of the registrant's disclosure
controls and procedures, that the registrant's disclosure controls and
procedures were effective as of September 30, 2005. There was no change in the
registrant's internal control over financial reporting during the quarter ended
September 30, 2005, that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.


                                       18

<PAGE>

                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

         None

ITEM 2 - UNREGISTERED SALES OF EQUITY  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

         Not Applicable


ITEM 5 - OTHER INFORMATION

         Not Applicable


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

         The following exhibits are included:


         1. Exhibit 3(i):    Articles of Incorporation

         2. Exhibit 3(ii):   Code of Regulations

         3. Exhibit 10:      Supervisory Agreement

         4. Exhibit 31.1:    Rule 13a-14(a)/15d-14(a) Certification of the
                             Chief Executive Officer.

         5. Exhibit 31.2:    Rule 13a-14(a)/15d-14(a) Certification of the
                             Chief Financial Officer.

         6. Exhibit 32:      Certification Pursuant to 18 U.S.C. Section
                             1350, as Adopted Pursuant to Section 906
                             of the Sarbanes-Oxley Act of 2002.

         7. Exhibit 99:      Safe Harbor Under the Private Securities
                             Litigation Reform Act of 1995.



                                       19

<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:       November 9, 2005                    /s/ J. William Stapleton
      -------------------------                 --------------------------------
                                                J. William Stapleton, President,
                                                Chief Executive Officer and
                                                Chief Operating Officer


Date:       November 9, 2005                    /s/ Charles A. Mihal
      -------------------------                 --------------------------------
                                                Charles A. Mihal
                                                Secretary, Treasurer and
                                                Chief Financial Officer



                                       20

<PAGE>

                                INDEX TO EXHIBITS


EXHIBIT NUMBER

3(i)  Articles of Incorporation (incorporated by reference to the registrant's
      Quarterly Report on Form 10-QSB for the Quarter Ended March 31, 1997,
      Ex. 3(i))

3(ii) Code of Regulations (incorporated by reference to the registrant's
      Definitive Proxy Statement filed on March 24, 2003, Exhibit A)

10    Supervisory Agreement (incorporated by reference to the registrant's
      Form 8-K filed on August 25, 2005, Exhibit 10)

31.1  Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer

31.2  Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer

32    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002

99    Safe Harbor Under the Private Securities Litigation Reform Act of 1995


                                       21