<PAGE>
                     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, 2004

[ ]      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)

      2454 North Limestone Street
           Springfield, Ohio                               45503
           -----------------                               -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                 (ZIP CODE)

                                 (937) 390-0470
                                 --------------
                           (ISSUER'S TELEPHONE NUMBER)

                                       N/A
                                       ---
                          (FORMER ADDRESS LAST REPORT)

As of April 30, 2004, 824,316 common shares of the Registrant were outstanding.
There were no preferred shares outstanding.

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


<PAGE>


                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO

                                   FORM 10-QSB
                                      INDEX

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

        ITEM
          1.   Financial Statements (Unaudited)

               Condensed consolidated balance sheets --                               3
               March 31, 2004, and December 31, 2003

               Condensed  consolidated statements of income --                        4
               March 31, 2004, and December 31, 2003

               Condensed  consolidated statement of changes in                        5
               shareholders' equity --Three months ended March 31, 2004

               Condensed  consolidated statements of cash flows --                    6
               Three months ended March 31, 2004 and 2003

               Notes to condensed consolidated financial statements                   7
               March 31, 2004, and December 31, 2003

          2.   Management's Discussion and Analysis of Financial Condition
               and Results of Operations                                             11

          3.   Controls and Procedures                                               16

PART II OTHER INFORMATION

        ITEM
          1.   Legal Proceedings                                                     17

          2.   Changes in Securities and Small Business Issuer Purchaes of
               Equity Securities                                                     17

          3.   Defaults upon Senior Securities                                       17

          4.   Submission of Matters to a Vote of Security Holders                   17

          5.   Other Information                                                     17

          6.   Exhibits and Reports on Form 8-K                                      17

Signatures                                                                           18

Certifications                                                                  19 - 25
</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 March 31,  At December 31,
                                                                                  2004            2003
                                                                              -----------     -----------
<S>                                                                           <C>             <C>
ASSETS
Cash and cash equivalents
    Cash and due from banks                                                   $       999     $     1,035
    Interest-bearing demand deposits                                                2,348           1,876
    Federal funds sold                                                              9,071           7,562
                                                                              -----------     -----------
        Cash and cash equivalents                                                  12,418          10,473
Available-for-sale securities                                                       4,950           5,089
Loans, net of allowance for loan losses of $1,023 and $995
         at March 31, 2004 and December 31, 2003                                  126,611         126,512
Premises and equipment                                                              3,765           3,812
Federal Home Loan Bank stock                                                        2,288           2,265
Interest receivable                                                                   580             578
Cash surrender value of life insurance                                              2,980           2,952
Other                                                                                 409             103
                                                                              -----------     -----------
               TOTAL ASSETS                                                   $   154,001     $   151,784
                                                                              ===========     ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
       Demand                                                                 $     6,486     $     5,352
       Savings, NOW and money market                                               47,090          47,355
       Time                                                                        52,505          51,215
                                                                              -----------     -----------
               Total Deposits                                                     106,081         103,922
                                                                              -----------     -----------
Federal Home Loan Bank advances                                                    34,663          34,764

Interest payable and other liabilities                                                987           1,191
                                                                              -----------     -----------

               TOTAL LIABILITIES                                                  141,731         139,877

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 and 962,200 shares                                         0               0
Additional paid-in capital                                                          6,272           6,130
Retained earnings                                                                   8,627           8,549
Unearned Recognition and Retention Plan (RRP) shares                                 (179)           (185)
Unearned Employee Stock Ownership Plan (ESOP) shares                                 (192)           (229)
Accumulated other comprehensive loss                                                  (99)            (92)
Treasury shares, at cost; 157,597 shares and 167,800 shares                        (2,159)         (2,266)
                                                                              -----------     -----------
               TOTAL SHAREHOLDERS' EQUITY                                          12,270          11,907
                                                                              -----------     -----------
               TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                     $   154,001     $   151,784
                                                                              ===========     ===========
</TABLE>

See accompanying notes.


                                       3
<PAGE>


                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME



<TABLE>
<CAPTION>
                                                                    (Dollars in thousands)
                                                                 (Unaudited)       (Unaudited)
                                                               3 Months Ended     3 Months Ended
                                                                  March 31,         March 31,
                                                                  --------          ---------
                                                                    2004              2003
                                                                  --------          --------
<S>                                                            <C>                <C>
INTEREST INCOME
Loans                                                             $  2,114          $  2,296
Securities                                                              35                28
Federal funds sold                                                      19                 3
Dividends on Federal Home Loan Bank stock                               22                21
Deposits with financial institutions                                     0                 1
                                                                  --------          --------
    TOTAL INTEREST INCOME                                            2,190             2,349
INTEREST EXPENSE
Deposits                                                               610               749
Borrowings                                                             484               500
                                                                  --------          --------
    TOTAL INTEREST EXPENSE                                           1,094             1,249
                                                                  --------          --------
    NET INTEREST INCOME                                              1,096             1,100
Provision for loan losses                                               50                90
                                                                  --------          --------
    NET INTEREST INCOME AFTER PROVISION
        FOR LOAN LOSSES                                              1,046             1,010
NONINTEREST INCOME
Service charges on deposits                                              9                 9
Net realized gains on sales of available-for-sale securities             0                 6
Life insurance                                                          35                35
Other                                                                    8                39
                                                                  --------          --------
    TOTAL NONINTEREST INCOME                                            52                89
NONINTEREST EXPENSE
Salaries and employee benefits                                         469               405
Net occupancy expense                                                   71                84
Equipment expense                                                       57                56
Data processing fees                                                    58                59
Professional fees                                                       75                80
Franchise taxes                                                         38                38
Other                                                                   99               120
                                                                  --------          --------
    TOTAL NONINTEREST EXPENSE                                          867               842
                                                                  --------          --------
    NET INCOME BEFORE FEDERAL INCOME
        TAX EXPENSE                                                    231               257
Provision for income tax expense/(benefit)                              63                90
                                                                  --------          --------
    NET INCOME                                                    $    168          $    167
                                                                  ========          ========
Earnings per common share - basic                                 $   0.21          $   0.22
Earnings per common share - diluted                               $   0.21          $   0.22
</TABLE>


See accompanying notes.


                                       4
<PAGE>


                         HOME CITY FINANCIAL CORPORATION
       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    Income (Loss)    Shares      Total
                                  --------   ----------   --------   ------------   --------   -------------   --------   ---------
<S>                                <C>       <C>          <C>        <C>            <C>        <C>             <C>        <C>
Balance, January 1, 2004           962,200   $    6,130   $  8,549   $       (185)  $   (229)  $         (92)  $ (2,266)  $  11,907
   Comprehensive income
      Net income                                               168                                                              168
      Change in unrealized
         gain (loss) on
         securities
         available for
         sale, net of
         reclassification
         adjustment and
         tax effect                                                                                       (7)                    (7)
                                                                                                                          ---------
            Total comprehensive
               income                                                                                                           161
                                                                                                                          ---------
   Purchase of treasury
      shares (22,652)                                                                                              (384)       (384)
   Stock options exercised:
      From treasury (32,855)                       (107)                                                            491         384
      New issue                     19,713          231                                                                         231
   Amortization of unearned
      compensation expense                            2                         6                                                 8
   ESOP shares earned                                16                                   37                                     53
   Dividends on common
      shares, $.11 per share                                   (90)                                                             (90)
                                  --------   ----------   --------   ------------   --------   -------------   --------   ---------
Balance, March 31, 2004            981,913   $    6,272   $  8,627   $       (179)  $   (192)  $         (99)  $ (2,159)  $  12,270
                                  ========   ==========   ========   ============   ========   =============   ========   =========
</TABLE>


See accompanying notes.


                                       5
<PAGE>


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


<TABLE>
<CAPTION>
                                                                                         (Dollars in thousands)
                                                                                     (Unaudited)          (Unaudited)
                                                                                   3 Months ended        3 Months ended
                                                                                       March 31,            March 31,
                                                                                         2004                 2003
                                                                                      ----------           ----------
<S>                                                                                <C>                   <C>
OPERATING ACTIVITIES
Net income                                                                            $      168           $      167
    Items not requiring (providing) cash
         Depreciation and amortization                                                        57                   59
         Provision for loan losses                                                            50                   90
         Amortization of premiums and discounts on securities                                 23                   31
         Deferred income taxes                                                               (96)                  (9)
         Increase in cash surrender value of life insurance                                  (28)                 (31)
         Employees Stock Ownership Plan compensation expense                                  37                   21
         Recognition and Retention Plan compensations expense                                  6                    2
         Net realized gains on available-for-sale securities                                   0                   (6)
         FHLB stock dividends                                                                (23)                 (22)
         Changes in
             Interest receivable                                                              (2)                  36
             Other assets                                                                   (306)                 (20)
             Interest payable and other liabilities                                         (137)                 (11)
                                                                                      ----------           ----------
                           NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                 (251)                 307
                                                                                      ----------           ----------
INVESTING ACTIVITIES
         Purchase of available-for-sale securities                                          (750)              (1,157)
         Proceeds from payments and  maturities of securities available-for-sale             866                  581
         Proceeds from sales of available-for-sale securities                                  0                  819
         Net change in loans                                                                (149)                (584)
         Purchases of premises and equipment                                                 (10)                  (1)
                                                                                      ----------           ----------
                            NET CASH USED IN INVESTING ACTIVITIES                            (43)                (342)
                                                                                      ----------           ----------
FINANCING ACTIVITIES
        Net increase in demand deposits, money market, NOW and savings accounts              869               11,702
        Net increase (decrease) in certificates of deposit                                 1,290              (12,662)
        Proceeds from Federal Home Loan Bank advances                                          0                3,000
        Repayment of Federal Home Loan Bank advances                                        (101)                 (97)
        Dividends paid                                                                       (90)                 (84)
        Net increase in advances from borrowers for taxes and insurance                      (67)                 (59)
        Proceeds from stock options exercised - new                                          231                    0
        Proceeds from stock options exercised - from treasury                                491                    0
        Purchase of treasury shares                                                         (384)                   0
                                                                                      ----------           ----------
                            NET CASH PROVIDED IN FINANCING ACTIVITIES                      2,239                1,800
                                                                                      ----------           ----------
INCREASE IN CASH AND CASH EQUIVALENTS                                                      1,945                1,765
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                            10,473                6,061
                                                                                      ----------           ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                              $   12,418           $    7,826
                                                                                      ==========           ==========
</TABLE>


See accompanying notes.


                                       6
<PAGE>


                         HOME CITY FINANCIAL CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                      MARCH 31, 2004, AND DECEMBER 31, 2003

                                   (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 March 31, 2004, and December 31, 2003, and the consolidated results of
operations and the cash flows for the three months ended March 31, 2004 and
2003. Those adjustments consist only of normal recurring adjustments. 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 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 three months ended March 31, 2004, 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:


<TABLE>
<CAPTION>
                                   (Dollars in thousands)
                                    Three         Three
                                    Months        Months
                                     Ended         Ended
                                   March 31,     March 31,
                                     2004          2003
                                  ----------    ----------
<S>                               <C>           <C>
Balance, beginning of period      $      995    $      503
Provision for loan losses                 50            90
Charge-offs                              (24)           (3)
Recoveries                                 2            15
                                  ----------    ----------
Balance, end of period            $    1,023    $      605
                                  ==========    ==========
</TABLE>


NOTE 3. ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at March 31, 2004, consisted of three short-term advances totaling
$234,000 and seventeen long-term advances totaling $34.4 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.


                                       7
<PAGE>

Scheduled maturities of advances from the FHLB were as follows:

<TABLE>
<CAPTION>
                                               (Dollars in thousands)
                             At March 31, 2004                        At December 31, 2003
                 ---------------------------------------    ---------------------------------------
                             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        $   234    8.30%-8.35%           8.34%     $    60       8.35%             8.35%

After one but
 within five
 years           $ 7,960    3.05%-7.28%           5.22%     $ 5,730    3.05%-8.35%          5.48%

After five
 years           $26,469    3.30%-6.84%           5.70%     $28,974    3.30%-6.84%          5.63%
</TABLE>


NOTE 4. REGULATORY CAPITAL

The following table illustrates the compliance by the Bank with currently
applicable regulatory capital requirements at March 31, 2004.


<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)    $12,855    12.0%    $8,545    8.0%     $10,682     10.0%

  Tier I Capital
     (To Risk-Weighted Assets)    $11,832    11.1%       N/A     N/A     $ 6,409      6.0%

  Tier I Capital
       (To Total Assets)          $11,832     7.7%    $6,160    4.0%*    $ 7,699      5.0%

  Tangible Capital
       (To Total Assets)          $11,832     7.7%    $2,310    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"). For the three months ended March 31, 2004, stock options totaling 7,500
shares of common stock were not considered in computing EPS as they were
anti-dilutive. For the three months ended March 31, 2003, there were no
anti-dilutive stock options. Unearned ESOP shares and RRP shares which have not
vested have been excluded from the computation of average shares outstanding.
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, 2004
                                                --------------------------------------
                                                                 Weighted-
                                                                  average         Per
                                                  Income           Shares        Share
                                                (Numerator)    (Denominator)    Amount
                                                -----------    -------------    ------
<S>                                             <C>            <C>              <C>
Basic EPS
   Income available to common shareholders      $   167,983          781,770    $ 0.21
   Effective of dilutive securities
   Stock options                                          0           19,923
                                                -----------    -------------
Diluted EPS
   Income available to common shareholders +
   assumed conversions                          $   167,983          801,693    $ 0.21
</TABLE>


<TABLE>
<CAPTION>
                                                      For the Three Months Ended
                                                             March 31, 2003
                                                --------------------------------------
                                                                 Weighted-
                                                                  average         Per
                                                  Income           Shares        Share
                                                (Numerator)    (Denominator)    Amount
                                                -----------    -------------    ------
<S>                                             <C>            <C>              <C>
Basic EPS
   Income available to common shareholders      $   167,009          752,251    $ 0.22
   Effective of dilutive securities
   Stock options                                          0            6,308
                                                -----------    -------------
Diluted EPS
   Income available to common shareholders +
   assumed conversions                          $   167,009          758,559    $ 0.22
</TABLE>


                                       9
<PAGE>


NOTE 6. STOCK OPTIONS

The Company accounts for its stock option plan under the 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
                                                                March 31
                                                       --------------------------
                                                          2004             2003
                                                       ----------       ----------
<S>                                                    <C>              <C>
Net income, as reported                                $      168       $      167
Less:  Total stock-based employee compensation
       cost determined under the fair value based
       method, net of income taxes                             (2)              (0)
                                                       ----------       ----------

Pro forma net income                                   $      166       $      167
                                                       ==========       ==========

Earnings per share:
       Basic - as reported                             $     0.21       $     0.22
                                                       ==========       ==========
       Basic - pro forma                               $     0.21       $     0.22
                                                       ==========       ==========
       Diluted - as reported                           $     0.21       $     0.22
                                                       ==========       ==========
       Diluted - pro forma                             $     0.21       $     0.22
                                                       ==========       ==========
</TABLE>


NOTE 7. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2003, the FASB (Financial Accounting Standards Board) revised SFAS
No. 132, "Employers' Disclosures about Pensions and Other Postretirement
Benefits", which is an amendment of FASB Statements No. 87, 88 and 106. There
was no material impact of the adoption on the financial statements.


                                       10


<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 99.1 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

                                       11
<PAGE>
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 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, 2003. 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, for each homogeneous category or group of loans.
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.



                                       12
<PAGE>
CHANGES IN FINANCIAL CONDITION

      At March 31, 2004, the consolidated assets of the Company totaled $154.0
million, an increase of $2.2 million, or 1.46%, from $151.8 million at December
31, 2003. The increase in total assets was primarily the result of a $1.9
million increase in cash and cash equivalents and a $306,000 increase in other
assets, funded by a $2.2 million increase in deposits.

      Net loans receivable increased by $99,000, or 0.08%, to $126.6 million at
March 31, 2004, compared to $126.5 million at December 31, 2003, reflecting
diminished loan activity.

..
      Total cash and cash equivalents increased by $1.9 million during the first
quarter of 2004. This represented a temporary influx of undeployed liquidity.
Interest bearing demand deposits totaled $2.3 million, an increase of $472,000,
or 25.16%, from $1.9 million at December 31, 2003. Federal funds increased by
$1.5 million, or 19.96%, to $9.1 million from $7.6 million at December 31, 2003.

      Available-for-sale securities decreased $139,000, or 2.73%, from $5.1
million at December 31, 2003, to $5.0 million at March 31, 2004, with very
little activity in the portfolio for the quarter.

      Deposit balances increased $2.2 million, or 2.08%, from $103.9 million at
December 31, 2003, to $106.1 million at March 31, 2004. Demand deposits
increased $1.1 million and time deposits increased $1.3 million while savings,
NOW and money market deposits decreased $265,000.

      Advances from the FHLB decreased $101,000, or 0.29%, from $34.8 million at
December 31, 2003, to $34.7 million at March 31, 2004.

      Total shareholders' equity increased $363,000, or 3.05%, from December 31,
2003, to March 31, 2004. This increase was primarily the result of the $168,000
of first quarter 2004 income together with a $7,000 increase in accumulated
other comprehensive loss, and increases of $231,000 generated from the exercise
of stock options, $53,000 from ESOP shares earned and the $8,000 of amortization
from unearned compensation expense, partially offset by the $90,000 cash
dividend payment.

      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 March 31, 2004, the Bank's regulatory
liquidity ratio was 16.30%. At such date, the Bank had commitments to originate
loans totaling $13.0 million and no commitments to purchase or sell loans. The
Bank considers its liquidity and capital

                                       13
<PAGE>
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 4 - Regulatory Capital." The Bank exceeded all of
its capital requirements at March 31, 2004.

      On February 23, 2004, 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 8, 2004, which was paid on March 15, 2004.


RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED MARCH 31, 2004 AND 2003

      GENERAL. Net income increased $1,000, or 0.60%, from $167,000 for the
three months ended March 31, 2003, to $168,000 for the three months ended March
31, 2004. The increase was comprised of $4,000 less in net interest income, an
increase of $25,000 in noninterest expense, a decrease of $40,000 in the
provision for loan losses, a $37,000 decrease in noninterest income and a
decrease of $27,000 in the provision for federal income tax expense.

      INTEREST INCOME. The $5.7 million increase in average earning assets was
offset by a 70 basis point decrease in yields resulting in a decrease in
interest income of $159,000, or 6.77%, for the three months ended March 31,
2004, compared to the same period in 2003. The decrease in yields caused a
decline of $162,000 in interest income, which was slightly offset by the $3,000
which resulted from the increase in the amount of average interest-earning
assets.

      INTEREST EXPENSE. Interest expense on deposit liabilities decreased
$139,000, or 18.56%, for the three months ended March 31, 2004, as compared to
the same period in 2003. Total average deposits decreased by $7.2 million
comparing the quarters ended March 31, 2004 and 2003, and the average interest
rate paid on interest-bearing deposits decreased by 80 basis points from 3.27%
for the three months ended March 31, 2003, to 2.47% for the same period in 2004.
The average balance of FHLB advances decreased from $38.7 million for the
three-month period ended March 31, 2003, to $34.7 million for the same period in
2004 and, offset by a 42 basis point increase in rates paid, resulted in a
decrease in interest on FHLB advances of $16,000 for the three months ended
March 31, 2004, compared to the same period in 2003.

      PROVISION FOR LOAN LOSSES. The provision for loan losses was $50,000, and
there were $22,000 in net charge-offs during the three months ended March 31,
2004, compared to a $90,000 provision and $12,000 of net recoveries during the
three months ended March 31, 2003. The provision was decreased based upon the
results of the ongoing loan reviews, the composition of the loan portfolio and
management's analysis of economic conditions.

      NONINTEREST INCOME. Noninterest income decreased by $37,000 for the three
months ended March 31, 2004, compared to the same period in 2003. $31,000 of the
decrease was primarily the result of the reduction of income from other
miscellaneous income factors while a $6,000 decrease in net realized gains on
sales of available-for-sale securities, comprised the remainder of the decrease.

      NONINTEREST EXPENSE. Noninterest expense increased $25,000, or 2.97%, to
$867,000 for the three months ended March 31, 2004, from $842,000 in the
comparable period in 2003. Of this increase, $64,000 was attributable to an
increase in salaries and employee benefits expense in 2004, reflecting staff

                                       14
<PAGE>
additions in compliance and lending functions. Net occupancy expense decreased
$13,000 and other miscellaneous expense decreased $21,000 partially offsetting
the increased staffing expense. The annualized ratio of noninterest expense to
average total assets was 2.27% and 2.24% for the three months ended March 31,
2004 and 2003, respectively.

      INCOME TAXES. The provision for income taxes decreased $27,000 for the
three months ended March 31, 2004, compared to the same period in 2003,
primarily as a result of the $26,000 decrease in net income before federal
income tax expense and the composition of the taxable and non-taxable income for
the quarter.




                                       15
<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 March 31, 2004. There was no change in the
registrant's internal control over financial reporting during the quarter ended
March 31, 2004, that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting..




                                       16
<PAGE>
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                           PART II - OTHER INFORMATION


ITEM 1 - LEGAL PROCEEDINGS

      None

ITEM 2 - CHANGES IN SECURITIES AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY
         SECURITIES

      PURCHASES OF EQUITY SECURITIES
<Table>
<Caption>
                                                                       Total Number of           Maximum Number
                                  Total Number         Average         Shares Purchased        of Shares that May
                                   of Shares         Price Paid      as Part of Publicly        Yet Be Purchased
          Period                   Purchased         Per Share         Announced Plans           Under the Plans
         -------                   ---------         ----------        ---------------           ---------------
<S>                               <C>                 <C>                 <C>                       <C>
January 1-31, 2004                  22,652 (a)         $16.97                N/A                       N/A

February 1-29, 2004                      0                  0                N/A                       N/A

March 1-31, 2004                         0                  0                N/A                       N/A
                                   -------                                 -------                   -------

Total                               22,652                                   N/A                       N/A
                                   =======                                 =======                   =======
</Table>

(a)      Shares surrendered by Douglas L. Ulery, President of HCFC, in payment
         of the exercise  price of stock options.


ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

      Not Applicable

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      On April 28, 2004, the Corporation held its Annual Meeting of
Shareholders.

      Each of the five directors nominated were elected to terms expiring in
      2005 by the following votes:

<TABLE>
<S>                           <C>               <C>                     <C>
      Glenn W. Collier        For:  685,102     Withheld:    3,750      Broker Non-votes     0
      John D. Conroy          For:  681,030     Withheld:    7,822      Broker Non-votes     0
      James M. Foreman        For:  683,119     Withheld:    5,733      Broker Non-votes     0
      Terry A. Hoppes         For:  685,102     Withheld:    3,750      Broker Non-votes     0
      J. William Stapleton    For:  681,030     Withheld:    7,822      Broker Non-votes     0
</TABLE>


ITEM 5 - OTHER INFORMATION

      Not Applicable

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

      (a)   The following exhibits are attached:

            1.    Exhibit 31.1:     Rule 13a-14(a)/15d-14(a) Certification.

            2.    Exhibit 31.2:     Rule 13a-14(a)/15d-14(a) Certification.

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

            4.    Exhibit 99.1:     Safe Harbor Under the Private Securities
                                    Litigation Reform Act of 1995.

      (b)   A Form 8-K was filed for the event on February 2, 2004, regarding
            the issuance of a News Release announcing financial results for the
            fourth quarter and year 2003.



                                       17
<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 13, 2004            /s/ J. William Stapleton
                                    --------------------------------------
                                    J. William Stapleton
                                    President, Chief Executive Officer and
                                    Chief Operating Officer



Date:       May 13, 2004            /s/ Charles A. Mihal
                                    --------------------------------------
                                    Charles A. Mihal
                                    Treasurer and Chief Financial Officer




                                       18