<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 JUNE 30, 2003

[   ]    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 August 4, 2003, 784,400 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
           June 30, 2003, and December 31, 2002

           Condensed consolidated statements of income --                           4
           June 30, 2003, and December 31, 2002

           Condensed consolidated statements of changes in                          5
           shareholders' equity --Six months ended June 30, 2003

           Condensed consolidated statements of cash flows --                       6
           Six months ended June 30, 2003 and 2002

           Notes to condensed consolidated financial statements                     7
           June 30, 2003, and December 31, 2002

       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.  Changes in 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

Certifications                                                                21 & 22

</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 June      At December
                                                                                               30,            31,
                                                                                              2003           2002
                                                                                            ---------    -----------
<S>                                                                                         <C>            <C>
ASSETS
Cash and cash equivalents
    Cash and due from banks                                                                 $   1,088      $   1,158
    Interest-bearing demand deposits                                                            2,150          3,289
    Federal funds sold                                                                          1,665          1,614
                                                                                            ---------      ---------
        Cash and cash equivalents                                                               4,903          6,061

Interest bearing deposits                                                                         -0-             24
Available-for-sale securities                                                                   5,184          6,363
Loans, net of allowance for loan losses of $715 and $503
         at June 30, 2003 and December 31, 2002                                               128,541        127,415
Premises and equipment                                                                          3,826          3,935
Federal Home Loan Bank stock                                                                    2,220          2,177
Interest receivable                                                                               607            600
Cash surrender value of life insurance                                                          2,892          2,829
Other                                                                                             264            331
                                                                                            ---------      ---------
               TOTAL ASSETS                                                                 $ 148,437      $ 149,735
                                                                                            =========      =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
    Demand                                                                                  $   5,963      $   5,468
    Savings, NOW and money market                                                              45,352         29,626
    Time                                                                                       50,517         64,025
                                                                                            ---------      ---------
               Total Deposits                                                                 101,832         99,119
                                                                                            ---------      ---------

Federal Home Loan Bank advances                                                                34,018         38,199
Interest payable and other liabilities                                                            893            858
                                                                                            ---------      ---------
               TOTAL LIABILITIES                                                              136,743        138,176

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 952,200
                                                                                                  -0-            -0-
Additional paid-in capital                                                                      6,013          6,013

Retained earnings                                                                               8,424          8,246

Unearned Recognition and Retention Plan (RRP) shares                                             (125)          (111)
Unearned Employee Stock Ownership Plan (ESOP) shares                                             (305)          (305)
Accumulated other comprehensive income (loss)                                                     (47)           (18)
Treasury shares, at cost; 167,800 shares                                                       (2,266)        (2,266)
                                                                                            ---------      ---------
               TOTAL SHAREHOLDERS' EQUITY                                                      11,694         11,559
                                                                                            ---------      ---------
               TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                   $ 148,437      $ 149,735
                                                                                            =========      =========
See accompanying notes.
</TABLE>


                                       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       3 Months      6 Months         6 Months
                                                      Ended          Ended         Ended            Ended
                                                  June 30, 2003  June 30, 2002  June 30, 2003  June 30, 2002
                                                  -------------  -------------  -------------  -------------
<S>                                                   <C>            <C>            <C>            <C>
INTEREST INCOME
Loans                                                 $2,241         $2,246         $4,537         $4,487
Securities                                                37            228             65            424
Federal funds sold                                         1              6              4             10
Dividends on Federal Home Loan Bank stock                 22             25             43             48
Deposits with financial institutions                       1              2              2              3
                                                      ------         ------         ------         ------

    TOTAL INTEREST INCOME                              2,302          2,507          4,651          4,972

INTEREST EXPENSE
Deposits                                                 661          1,022          1,410          2,094
Borrowings                                               495            506            995          1,004
                                                      ------         ------         ------         ------

    TOTAL INTEREST EXPENSE                             1,156          1,528          2,405          3,098
                                                      ------         ------         ------         ------

    NET INTEREST INCOME                                1,146            979          2,246          1,874
Provision for loan losses                                110            236            200            249
                                                      ------         ------         ------         ------

    NET INTEREST INCOME AFTER
    PROVISION  FOR LOAN LOSSES                         1,036            743          2,046          1,625

NONINTEREST INCOME
Service charges on deposits                               10              8             19             18
Net realized gains on sales of available-for-
    sale securities                                       11            256             17            258
Life insurance                                            35             38             70             77
Other                                                     11            133             50            251
                                                      ------         ------         ------         ------

    TOTAL NONINTEREST INCOME                              67            435            156            604

NONINTEREST EXPENSE
Salaries and employee benefits                           399            488            804            985
Net occupancy expense                                    109             94            193            184
Equipment expense                                         49             60            105            129
Data processing fees                                      53             60            112            122
Professional fees                                        118            103            198            192
Franchise taxes                                           37             36             75             72
Other                                                    102            165            222            321
                                                      ------         ------         ------         ------

    TOTAL NONINTEREST EXPENSE                            867          1,006          1,709          2,005
                                                      ------         ------         ------         ------

    NET INCOME BEFORE FEDERAL
    INCOME TAX EXPENSE                                   236            172            493            224

Provision for income tax expense                          55             33            145             20
                                                      ------         ------         ------         ------

    NET INCOME                                        $  181         $  139         $  348         $  204
                                                      ======         ======         ======         ======

Earnings per common share - basic                     $ 0.24         $ 0.19         $ 0.46         $ 0.28
Earnings per common share - diluted                   $ 0.24         $ 0.19         $ 0.46         $ 0.28

See accompanying notes.

</TABLE>




                                       4

<PAGE>

                         HOME CITY FINANCIAL CORPORATION
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                              (UNAUDITED FOR 2003)

<TABLE>
<CAPTION>
                                                                                                 Accumulated
                                                Additional                           Unearned       Other
                                                 Paid-in    Retained     Unearned      ESOP     Comprehensive   Treasury
                                        Shares   Capital    Earnings   Compensation   Shares    Income (Loss)    Stock      Total
                                       ---------------------------------------------------------------------------------------------



<S>                                    <C>      <C>        <C>          <C>          <C>         <C>           <C>         <C>
Balance, December 31,2001              952,200  $  6,023   $  8,134     $   (178)    $   (381)   $    112      $ (2,266)   $ 11,444


      Comprehensive income
        Net income                                              457                                                             457
        Change in unrealized
          gain (loss) on
          securities
          available for
          sale, net of
          reclassification
          adjustment and tax
          effect                                                                                     (130)                     (130)
                                                                                                                           --------
           Total comprehensive
              income                                                                                                            327
                                                                                                                           --------
      Dividends on common
        stock, $.44 per share                                  (345)                                                           (345)
      Amortization of unearned
        compensation expense                                                  67                                                 67
      ESOP shares earned                             (10)                                  76                                    66


                                       -------  --------   --------     --------     --------    --------      --------    --------
 Balance, December 31, 2002            952,200  $  6,013   $  8,246     $   (111)    $   (305)   $    (18)     $ (2,266)   $ 11,559


      Comprehensive income
        Net income                                              348                                                             348
        Change in unrealized
          gain (loss) on
          securities
          available for
          sale, net of
          reclassification
          adjustment and tax
          effect                                                                                      (29)                      (29)
                                                                                                                           --------
           Total comprehensive
              income                                                                                                            319
                                                                                                                           --------
      Dividends on common
        stock, $.22 per share                                  (170)                                                           (170)
      Purchase of shares for
        RRP                                                                  (23)                                               (23)
      Amortization of
        unearned
        compensation expense                                                   9                                                  9
                                       -------  --------   --------     --------     --------    --------      --------    --------

Balance, June 30, 2003                 952,200  $  6,013   $  8,424     $   (125)    $   (305)   $    (47)     $ (2,266)   $ 11,694
                                      ========  ========   ========     ========     ========    ========      ========    ========

See accompanying notes.
</TABLE>

                                       5
<PAGE>

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

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                                    (Dollars in thousands)
                                                                -------------------------------
                                                                  (Unaudited)     (Unaudited)
                                                                6 Months ended  6 Months ended
                                                                    June 30,       June 30,
                                                                     2003           2002
                                                                --------------  ---------------

<S>                                                                <C>             <C>
OPERATING ACTIVITIES
Net income                                                         $    348        $    204
   Items not requiring (providing) cash
      Depreciation and amortization                                     114             121
      Provision for loan losses                                         200             249
      Amortization of premiums and discounts on securities                9              40
      Deferred income taxes                                             (58)           (369)
      Increase in cash surrender value of life insurance                (63)            (66)
      Employees Stock Ownership Plan compensation expense                42              48
      Recognition and Retention Plan compensation expense                 4              45
      Net realized gains on available-for-sale securities               (17)           (258)
      FHLB stock dividends                                              (43)            (48)

   Changes in
         Interest receivable                                             (7)             70
         Other assets                                                    67            (691)
         Interest payable and other liabilities                         169             (49)
                                                                   --------        --------

            NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES            765            (606)
                                                                   --------        --------

INVESTING ACTIVITIES

      Purchase of available-for-sale securities                      (2,153)         (9,965)
      Proceeds from payments and maturities of securities
         available-for-sale                                           1,559           1,636
      Proceeds from sales of available-for-sale securities
                                                                      1,788          12,728
      Net change in loans
                                                                     (1,326)         (3,703)
      Purchases of premises and equipment
                                                                         (5)             (8)
                                                                   --------        --------

            NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES           (137)            688
                                                                   --------        --------

FINANCING ACTIVITIES
      Net increase in demand deposits, money market,
         NOW and savings accounts                                    16,221           6,496
      Net decrease in certificates of deposit                       (13,508)         (4,534)
      Proceeds from Federal Home Loan Bank advances                   4,250             -0-
      Repayment of Federal Home Loan Bank advances                   (8,431)           (192)
      Repayment of long-term debt                                       -0-              (3)
      Net activity RRP common shares                                    (14)             10
      Dividends paid                                                   (170)           (171)
      Net decrease in advances from borrowers for taxes
         and insurance                                                 (134)           (113)
                                                                   --------        --------

            NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES         (1,786)          1,493
                                                                   --------        --------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                     (1,158)          1,575

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                        6,061           5,010
                                                                   --------        --------

CASH AND CASH EQUIVALENTS, END OF PERIOD                           $  4,903        $  6,585
                                                                   ========        ========
See accompanying notes.
</TABLE>



                                       6

<PAGE>

                         HOME CITY FINANCIAL CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                      JUNE 30, 2003, AND DECEMBER 31, 2002

                                   (UNAUDITED)




NOTE 1.  BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited consolidated financial
statements contain all adjustments necessary for a fair presentation of Home
City Financial Corporation's ("Company" or "HCFC") financial position as of June
30, 2003, and December 31, 2002, and the consolidated results of operations and
the cash flows for the six months ended June 30, 2003 and 2002. 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 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 six months ended June 30, 2003, 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)
                                                 Six               Six
                                                Months            Months
                                                Ended             Ended
                                               June 30,          June 30,
                                                 2003              2002
                                                 ----              ----

<S>                                              <C>             <C>
      Balance, beginning of period               $ 503           $ 517
      Provision for loan losses                    200             249
      Charge-offs                                   (3)           (336)
      Recoveries                                    15              16
                                                 -----           -----
      Balance, end of period                     $ 715           $ 446
                                                 =====           =====
</TABLE>


NOTE 3.  ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at June 30, 2003, consisted of one short-term advance for $562,000
and eighteen long-term advances totaling $33.5 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 June 30, 2003                                At December 31, 2002
                       ----------------------------------------------    ---------------------------------------------

                                          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>            <C>
Due within
 one year                $   562            6.51%           6.51%        $ 4,914      1.44% - 6.05%           1.46%


After one but
 within five
 years                   $ 3,470         6.35%-8.35%        6.75%        $ 3,401       6.35%-8.35%            6.74%

After five
 years                   $29,986         3.30%-6.84%        5.61%        $29,884       3.30%-6.84%            5.61%

</TABLE>



NOTE 4.  REGULATORY CAPITAL

The following table illustrates the compliance by the Bank with currently
applicable regulatory capital requirements at June 30, 2003.


<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)         $12,211       11.3%         $8,643         8.0%      $10,804        10.0%

  Tier I Capital
     (To Risk-Weighted Assets)         $11,496       10.6%            N/A          N/A      $ 6,482         6.0%

  Tier I Capital
     (To Total Assets)                 $11,496        7.7%         $5,940         4.0%*     $ 7,425         5.0%


  Tangible Capital
     (To Total Assets)                 $11,496        7.7%         $2,227         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. Following is a
reconciliation of the numerators and denominators of the basic and diluted EPS
calculations.

<TABLE>
<CAPTION>
                                                                             For the Three Months Ended
                                                                             --------------------------
                                                                                   June 30, 2003
                                                                                   -------------
                                                                                     Weighted-
                                                                                      average            Per
                                                                     Income            Shares           Share
                                                                   (Numerator)     (Denominator)        Amount
                                                                   -----------     -------------        ------

<S>                                                                  <C>               <C>               <C>
Basic EPS
   Income available to common shareholders                           $181,430          751,832           $0.24

   Effective of dilutive securities
   Stock options                                                            0           13,035
                                                                     --------          -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                               $181,430          764,867           $0.24

</TABLE>


<TABLE>
<CAPTION>
                                                                             For the Three Months Ended
                                                                             --------------------------
                                                                                   June 30, 2002
                                                                                   -------------
                                                                                     Weighted-
                                                                                      average             Per
                                                                     Income            Shares            Share
                                                                   (Numerator)     (Denominator)        Amount
                                                                   -----------     -------------        ------

<S>                                                                  <C>               <C>               <C>
Basic EPS
   Income available to common shareholders                           $138,961          740,936           $0.19

   Effective of dilutive securities
   Stock options*                                                           0                0
                                                                     --------          -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                               $138,961          740,936           $0.19
</TABLE>


*Because the exercise prices of the options exceeded the average fair market
value for the quarter, the shares subject to options are not included in
calculating diluted earnings per share.

                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                                              For the Six Months Ended
                                                                              ------------------------
                                                                                   June 30, 2003
                                                                                   -------------
                                                                                     Weighted-
                                                                                      average            Per
                                                                     Income            Shares            Share
                                                                   (Numerator)     (Denominator)        Amount
                                                                   -----------     -------------        ------

<S>                                                                  <C>               <C>              <C>
Basic EPS
   Income available to common shareholders                           $348,439          752,042          $0.46

   Effective of dilutive securities
   Stock options                                                            0            9,671
                                                                     --------          -------


Diluted EPS
   Income available to common shareholders +
   assumed conversions                                               $348,439          761,713          $0.46
</TABLE>


<TABLE>
<CAPTION>


                                                                              For the Six Months Ended
                                                                              ------------------------
                                                                                   June 30, 2002
                                                                                   -------------
                                                                                     Weighted-
                                                                                      average             Per
                                                                     Income            Shares            Share
                                                                   (Numerator)     (Denominator)        Amount
                                                                   -----------     -------------        ------
<S>                                                                  <C>               <C>              <C>
Basic EPS
   Income available to common shareholders                           $204,307          740,797          $0.28

   Effective of dilutive securities
   Stock options*                                                           0                0
                                                                     --------          -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                                               $204,307          740,797          $0.28
</TABLE>


*Because  the  exercise  prices of the options  exceeded the average fair market
value for the  period,  the  shares  subject  to  options  are not  included  in
calculating diluted earnings per share.


                                       10


<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 June 30   For the Six Months ended June 30
                                                     -----------------------------------   --------------------------------
                                                            2003             2002               2003             2002
                                                            ----             ----               ----             ----


<S>                                                        <C>             <C>                 <C>              <C>
Net income, as reported                                    $  181          $    139            $   348          $   204

Less:  Total stock-based employee compensation
       cost determined under the fair value based
       interest payable and other liabilities                  (1)              (14)                (1)             (29)
                                                           ------          --------            -------          -------

Pro forma net income                                       $  180          $    125            $   347          $   175
                                                           ======          ========            =======          =======

Earnings per share:
       Basic - as reported                                 $ 0.24          $   0.19            $  0.46          $  0.28
                                                           ======          ========            =======          =======
       Basic - pro forma                                   $ 0.24          $   0.17            $  0.46          $  0.24
                                                           ======          ========            =======          =======
       Diluted - as reported                               $ 0.24          $   0.19            $  0.46          $  0.28
                                                           ======          ========            =======          =======
       Diluted - pro forma                                 $ 0.24          $   0.17            $  0.46          $  0.24
                                                           ======          ========            =======          =======
</TABLE>






NOTE 7.  RECENT ACCOUNTING PRONOUNCEMENTS

On November 25, 2002, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of Others (FIN No. 45)
which expands on the accounting guidance of Statements No. 5, 57 and 107 and
incorporates without change the provisions of FASB Interpretation No. 34, which
is being superseded.

FIN No. 45, which is applicable to public and non-public entities, will
significantly change current practice in the accounting for, and disclosure of,
guarantees. Each guarantee meeting the characteristics described in FIN No. 45
is to be recognized and initially measured at fair value, which will be a change
from current practice for most entities. In addition, guarantors will be
required to make significant new disclosures, even if the likelihood of the
guarantor making payments under the guarantee is remote, which represents
another change from current general practice.

FIN No. 45's disclosure requirements are effective for financial statements of
interim or annual periods ending after December 15, 2002, while the initial
recognition and initial measurement provisions are applicable on a prospective
basis to guarantees issued or modified after December 31, 2002. The Company has
changed its method of accounting and financial reporting for standby letters of
credit by adopting the provisions of FIN No. 45 effective January 1, 2003. There
was no material impact of the adoption on the financial statements.


                                       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 99.1 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
is required to make estimates and assumptions that affect the reported amounts
of assets and liabilities

                                       12
<PAGE>

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, 2002. 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 June 30, 2003, the consolidated assets of the Company totaled $148.4
million, a decrease of $1.3 million, or 0.87%, from $149.7 million at December
31, 2002. The decrease in total assets was primarily the result of a decrease in
available-for-sale securities of $1.2 million and a decrease in cash

                                       13
<PAGE>

and cash equivalents of $1.2 million which were partially offset by a $1.1
million increase in loans receivable.

         Net loans receivable increased by $632,000, or 0.49%, to $128.5 million
during the three months ended at June 30, 2003, in addition to the $494,000
increase in the first quarter of 2003. The increase was again primarily in the
non-residential real estate and commercial loan portfolio.

         Total cash and cash equivalents decreased by $2.9 million during the
second quarter of 2003, more than offsetting the $1.8 million increase
experienced in the first quarter of 2003. Interest bearing demand deposits
totaled $2.2 million, a decrease of $1.1 million, or 34.63%, from $3.3 million
at December 31, 2002. Federal funds sold increased by $51,000, or 3.16%, from
$1.6 million at December 31, 2002. Total cash and balances due from banks
decreased by $70,000 from the December 31, 2002, balances.

         Available-for-sale securities decreased $1.2 million, or 18.53%, from
$6.4 million at December 31, 2002, to $5.2 million at June 30, 2003, with much
less activity in the portfolio for the period than the repositioning of last
year.

         Deposit balances increased $3.7 million, or 3.74%, from $98.2 million
at March 31, 2003, to $101.8 million at June 30, 2003. While demand, savings,
NOW and money market deposits increased by $5.6 million, or 14.01%, time
deposits decreased by $846,000, or 1.65%, representing some of the shift to the
tiered Prime Statement savings product.

         Advances from the FHLB decreased $7.1 million, or 17.24%, from $41.1
million at March 31, 2003, to $34.0 million at June 30, 2003. Funds obtained
from additional deposits and sales of securities were used for repayment of
advances.

         Total shareholders' equity increased $135,000, or 1.17%, from December
31, 2002, to June 30, 2003. This increase was primarily the result of the
$348,000 of first half 2003 income together with a $29,000 decrease in
accumulated other comprehensive income, the $9,000 amortization of unearned
compensation expense and the $23,000 purchase of shares for the RRP, partially
offset by the $170,000 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 June 30, 2003, the Bank's regulatory

                                       14
<PAGE>

liquidity ratio was 6.30%. At such date, the Bank had commitments to originate
loans totaling $13.5 million and no commitments to purchase or sell loans. The
Bank considers its liquidity and capital reserves sufficient to meet its
outstanding short- and long-term needs. Adjustments to liquidity and capital
reserves may be necessary, however, if loan demand increases more than expected
or if deposits decrease substantially.

         The Bank is required by applicable law and regulation to meet certain
minimum capital standards. Such capital standards include a tangible capital
requirement, a core capital requirement or leverage ratio and a risk-based
capital requirement. See "Note 4 - Regulatory Capital." The Bank exceeded all of
its capital requirements at June 30, 2003.

         On February 24, 2003, 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 7, 2003, which was paid on March 17, 2003. On May 27, 2003, 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 9, 2003, which
was paid on June 16, 2003.


                              RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED JUNE 30, 2003 AND 2002

         GENERAL. Net income increased $42,000, or 30.22%, from $139,000 for the
three months ended June 30, 2002, to $181,000 for the three months ended June
30, 2003. The increase was primarily attributed to $167,000 more in net interest
income, a decrease of $139,000 in noninterest expense and a decrease of $126,000
in the provision for loan losses, all of which were partially offset by a
$368,000 decrease in noninterest income and an increase of $22,000 in the
provision for federal income tax expense.

         INTEREST INCOME. The $1.9 million increase in average earning assets
offset by a decrease in yields resulted in a decrease in interest income of
$205,000, or 8.18%, for the three months ended June 30, 2003, compared to the
same period in 2002. The decrease in yields caused a decline of $252,000 in
interest income, which was partially offset to the extent of $47,000 due to an
increase in the amount of average interest-earning assets.

         INTEREST EXPENSE. Interest expense on deposit liabilities decreased
$361,000, or 35.32%, for the three months ended June 30, 2003, as compared to
the same period in 2002. Total average deposits increased by $674,000 comparing
the quarters ended June 30, 2003 and 2002, and the average interest rate paid on
interest-bearing deposits decreased by 159 basis points from 4.42% for the three
months ended June 30, 2002, to 2.83% for the same period in 2003. The average
balance of FHLB advances decreased from $36.5 million for the three-month period
ended June 30, 2002, to $36.2 million for the same period in 2003 and, coupled
with a one basis point decrease in rates paid, resulted in a decrease in
interest on FHLB advances of $5,000 for the three months ended June 30, 2003,
compared to the same period in 2002.

         PROVISION FOR LOAN LOSSES. The provision for loan losses was $110,000,
and there were $ 0 in net recoveries during the three months ended June 30,
2003, compared to a $236,000 provision and $322,000 of net charge-offs during
the three months ended June 30, 2002. The provision was decreased based upon the
results of the ongoing loan reviews and the composition of the loan portfolio.

         NONINTEREST INCOME. Noninterest income decreased by $368,000 for the
three months ended June 30, 2003, compared to the same period in 2002. Last year
was inclusive of $256,000 in net gains on sales of securities as well as income
from the discontinued operations of Home City Insurance Agency


                                       15
<PAGE>

Inc. Additionally, an increase of $2,000 in service charges and a $3,000
decrease in income from life insurance contracts, comprised the remainder of the
decrease.

         NONINTEREST EXPENSE. Noninterest expense decreased $139,000, or 13.82%,
to $867,000 for the three months ended June 30, 2003, from $1.0 million in the
comparable period in 2002. Of this decrease, $89,000 was attributable to a
decrease in salaries and employee benefits expense reflecting staffing cost
reductions with most of the remaining decrease resulting from the elimination of
operating costs relative to the insurance agency. The annualized ratio of
noninterest expense to average total assets was 2.31% and 2.76% for the three
months ended June 30, 2003 and 2002, respectively.

         INCOME TAXES. The provision for income taxes increased $22,000 for the
three months ended June 30, 2003, compared with the prior year, primarily as a
result of the $64,000 increase in net income before federal income tax expense
and the composition of the taxable and non-taxable income for the quarter.


COMPARISON OF SIX MONTHS ENDED JUNE 30, 2003 AND 2002

         GENERAL. Net income increased $144,000, or 70.59%, from $204,000 for
the six months ended June 30, 2002, to $348,000 for the six months ended June
30, 2003. This increase was primarily attributed to an increase of $372,000 in
net interest income, a decrease of $296,000 in noninterest expense and a
decrease in provision for loan losses of $49,000 which were partially offset by
the decrease of $448,000 in noninterest income and the $125,000 increase in
federal income tax expense.

         INTEREST INCOME. The increase in interest income generated by the $2.7
million increase in average earning assets was more than offset by the decrease
in interest income caused by the 60 basis point decrease in yield on earning
assets. Interest income decreased by a net of $321,000, or 6.46% for the six
months ended June 30, 2003, as compared to the same six-month period in 2002. A
decrease of $471,000 in interest income is attributable to the yield decreases
on earning assets, which partially offset the $150,000 increase in interest
income attributed to increases in the volume of earning assets for the six-month
period. The decrease is mainly attributed to the decline in mortgage-backed
securities income of $77,000 resulting from a decrease in the average yield on
mortgage-backed securities together with a decrease of $236,000 in interest
income as a result of decreased volume.

         INTEREST EXPENSE. Interest expense on deposit liabilities decreased
$684,000, or 32.66%, for the six months ended June 30, 2003, as compared to the
same period in 2002. Total average interest-bearing deposits decreased by only
$13,000 comparing the six months ended June 30, 2003 to 2002, but the average
interest rate paid on interest-bearing deposits decreased by 148 basis points
from 4.53% for the six-month period ended June 30, 2002, to 3.05% for the same
period ended June 30, 2003. The average balance of FHLB advances increased from
$36.3 million for the six-month period ending June 30, 2002, to $37.5 million
for the same period ended June 30, 2003, resulting in an increase in interest on
FHLB advances of just $1,000 for the six-month period ended June 30, 2003,
compared to the same period ended June 30, 2002. Of the overall decrease of
$693,000 in interest expense, $482,000 is attributable to rates paid, or yields,
on interest costing liabilities, and $211,000 is attributed to volume decreases.

         PROVISION FOR LOAN LOSSES. The provision for loan losses was $200,000
and there were net recoveries of $12,000 during the six months ended June 30,
2003, compared to a $249,000 provision and net charge-offs of $320,000 during
the six months ended June 30, 2002. The provision was decreased based upon the
results of the ongoing loan reviews and in light of last year's additional need
for a significant provision.

         NONINTEREST INCOME. Noninterest income decreased by $448,000 for the
six months ended June 30, 2003, compared to the same period in 2002. The
decrease was due to last year's noninterest income


                                       16
<PAGE>

including $258,000 in net gains on the sale of securities as well as income from
the operations of Home City Insurance Agency, Inc., which operations have been
discontinued.

         NONINTEREST EXPENSE. Noninterest expense decreased $296,000, or 14.76%,
to $1.7 million for the six months ended June 30, 2003, from $2.0 million in the
comparable period in 2002. Of this decrease, $181,000 was attributable to a
decrease in compensation and benefit expense in 2003, reflecting reduced
staffing and related costs. Other expense decreased $99,000, or 30.84% as a
result of elimination of operating costs relative to the insurance agency. The
annualized ratio of noninterest expense to average total assets was 2.27% and
2.75% for the six months ended June 30, 2003 and 2002, respectively.

         INCOME TAXES. The provision for income taxes increased $125,000 for the
six months ended June 30, 2003, compared with the same period in the prior year,
primarily as a result of the $269,000 increase in net income before federal
income tax expense and the composition of the taxable and non-taxable income for
the six-month period.















                                       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 June 30, 2003. There was no change in the
registrant's internal control over financial reporting during the quarter ended
June 30, 2003, 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 - CHANGES IN SECURITIES AND USE OF PROCEEDS

            Not Applicable


ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

            Not Applicable


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

            Not Applicable


ITEM 5 - OTHER INFORMATION

            Not Applicable


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

          a.   Exhibit 31: Rule 13a-14(a)/15d-14(a) Certifications.

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

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

          d.   Exhibit 99.2: A Form 8-K was filed for the event on April 23,
               2003, regarding the issuance of a News Release announcing
               financial results for the first quarter of 2003.





                                       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:     August  7, 2003             /s/J. William Stapleton
    ---------------------------       ------------------------------------------
                                      J. William Stapleton
                                      Chief Executive Officer and
                                      Chief Operating Officer



Date:     August 7, 2003             /s/Charles A. Mihal
     --------------------------      -------------------------------------------
                                     Charles A. Mihal
                                     Treasurer and Chief Financial Officer







                                       20