<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, 2005

[ ]   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, 2005, 835,690 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>
PART I  FINANCIAL INFORMATION

   ITEM
     1. Financial Statements

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

        Condensed consolidated statements of income -- Three months ended March 31, 2005 and 2004                             4

        Condensed  consolidated statement of changes in shareholders' equity -- Three months ended March 31, 2005             5

        Condensed  consolidated statements of cash flows -- Three months ended March 31, 2005 and 2004                        6

        Notes to condensed consolidated financial statements                                                                  7

     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. Unregistered Sales of Equity Securities and Use of Proceeds                                                          17

     3. Defaults upon Senior Securities                                                                                      17

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

     5. Other Information                                                                                                    17

     6. Exhibits                                                                                                             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       At December
                                                                                              31,            31,
                                                                                          ---------      -----------
                                                                                             2005           2004
                                                                                          ---------      -----------
<S>                                                                                       <C>            <C>
ASSETS
Cash and cash equivalents
    Cash and due from banks                                                               $   1,029      $      859
    Interest-bearing demand deposits                                                          1,734           6,529
    Federal funds sold                                                                          100           2,207
                                                                                          ---------      ----------
        Cash and cash equivalents                                                             2,863           9,595

Available-for-sale securities                                                                 9,980           6,432
Loans, net of allowance for loan losses of $844 and $760
    at March 31, 2005 and December 31, 2004                                                 131,140         130,067
Premises and equipment                                                                        3,545           3,602
Federal Home Loan Bank stock                                                                  2,386           2,360
Interest receivable                                                                             564             544
Cash surrender value of life insurance                                                        3,094           3,067
Other                                                                                           401             557
                                                                                          ---------      ----------
               TOTAL ASSETS                                                               $ 153,973      $  156,224
                                                                                          =========      ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
     Demand                                                                               $   5,639      $    5,235
     Savings, NOW and money market                                                           47,427          51,173
     Time                                                                                    53,018          50,796
                                                                                          ---------      ----------
               Total Deposits                                                               106,084         107,204
                                                                                          ---------      ----------

Federal Home Loan Bank advances                                                              33,936          35,120
Interest payable and other liabilities                                                        1,067           1,165
                                                                                          ---------      ----------

               TOTAL LIABILITIES                                                            141,087         143,489

COMMITMENTS

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 981,913 shares                                                   0               0
Additional paid-in capital                                                                    6,334           6,325
Retained earnings                                                                             8,969           8,868
Unearned Recognition and Retention Plan (RRP) shares                                            (60)            (69)
Unearned Employee Stock Ownership Plan (ESOP) shares                                           (194)           (221)
Accumulated other comprehensive loss                                                           (173)           (178)
Treasury shares, at cost; 146,223 shares and 146,223 shares                                  (1,990)         (1,990)
                                                                                          ---------      ----------

               TOTAL SHAREHOLDERS' EQUITY                                                    12,886          12,735
                                                                                          ---------      ----------
               TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                 $ 153,973      $  156,224
                                                                                          =========      ==========
</TABLE>

See notes to condensed consolidated financial statements.

                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                                   (Dollars in thousands)
                                                                 (Unaudited)   (Unaudited)
                                                                  3 Months      3 Months
                                                                   Ended         Ended
                                                                  March 31,     March 31,
                                                                  ---------     ---------
                                                                    2005          2004
                                                                  ---------     ---------
<S>                                                               <C>           <C>
INTEREST INCOME
Loans                                                             $ 2,132        $2,114
Securities                                                             32            35
Federal funds sold                                                      6            19
Dividends on Federal Home Loan Bank stock                              26            22
Deposits with financial institutions                                   31             0
                                                                  -------        ------

    TOTAL INTEREST INCOME                                           2,227         2,190

INTEREST EXPENSE
Deposits                                                              598           610
Borrowings                                                            471           484
                                                                  -------        ------

    TOTAL INTEREST EXPENSE                                          1,069         1,094
                                                                  -------        ------

    NET INTEREST INCOME                                             1,158         1,096
Provision for loan losses                                              80            50
                                                                  -------        ------
    NET INTEREST INCOME AFTER PROVISION
        FOR LOAN LOSSES                                             1,078         1,046

NONINTEREST INCOME
Service charges on deposits                                            10             9
Life insurance                                                         35            35
Other                                                                  (9)            8
                                                                  -------        ------

    TOTAL NONINTEREST INCOME                                           36            52

NONINTEREST EXPENSE
Salaries and employee benefits                                        427           469
Net occupancy expense                                                  66            71
Equipment expense                                                      54            57
Data processing fees                                                   70            58
Professional fees                                                      76            75
Franchise taxes                                                        41            38
Other                                                                  95            99
                                                                  -------        ------

    TOTAL NONINTEREST EXPENSE                                         829           867
                                                                  -------        ------
    NET INCOME BEFORE FEDERAL INCOME
        TAX EXPENSE                                                   285           231
Provision for income tax expense                                       92            63
                                                                  -------        ------

    NET INCOME                                                    $   193        $  168
                                                                  =======        ======

Earnings per common share - basic                                 $  0.24        $ 0.21
Earnings per common share - diluted                               $  0.23        $ 0.21
Dividends declared per share                                      $  0.11        $ 0.11
</TABLE>

See notes to condensed consolidated financial statements.

                                       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, 2005       981,913    $ 6,325      $ 8,868        $  (69)      $ (221)      $  (178)      $  (1,990)   $ 12,735

 Comprehensive income

    Net income                                             193                                                                  193

    Change in unrealized
     gain (loss) on
     securities available
     for sale, net of
     reclassification
     adjustment and tax
     effect                                                                                           5                           5
                                                                                                                           --------
        Total comprehensive
         income                                                                                                                 198
                                                                                                                           --------
 Amortization of unearned
   compensation expense                                                    9                                                      9

 ESOP shares earned                             9                                      27                                        36
 Dividends on common shares,
   $.11 per share                                          (92)                                                                 (92)
                               -------   --------      -------        ------       ------       -------       ---------    --------

Balance, March 31, 2005        981,913   $  6,334      $ 8,969        $  (60)      $ (194)      $ ( 173)      $  (1,990)   $ 12,886
                               =======   ========      =======        ======       ======       =======       =========    ========
</TABLE>

See notes to condensed consolidated financial statements.

                                       5
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                  (Dollars in thousands)
                                                                                                (Unaudited)     (Unaudited)
                                                                                                ------------   --------------
                                                                                              3 Months ended   3 Months ended
                                                                                              --------------   --------------
                                                                                                  March 31,       March 31,
                                                                                                  ---------       ---------
                                                                                                   2005             2004
                                                                                                   -----            ----
<S>                                                                                           <C>              <C>
OPERATING ACTIVITIES
Net income                                                                                        $   193       $    168
  Items not requiring (providing) cash
          Depreciation and amortization                                                                57             57
          Provision for loan losses                                                                    80             50
          Amortization of premiums and discounts on securities                                         10             23
          Deferred income taxes                                                                       (95)           (96)
          Increase in cash surrender value of life insurance                                          (27)           (28)
          Employees Stock Ownership Plan compensation expense                                          36             37
          Recognition and Retention Plan compensation expense                                           9              6
          FHLB stock dividends                                                                        (26)           (23)

         Changes in
                Interest receivable                                                                   (20)            (2)
                Other assets                                                                          251           (306)
                Interest payable and other liabilities                                                111           (137)
                                                                                                  -------       --------

                     NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                                 579           (251)
                                                                                                  -------       --------

INVESTING ACTIVITIES
       Purchase of available-for-sale securities                                                   (5,994)          (750)
       Proceeds from payments and maturities of securities available-for-sale                       2,441            866
       Net change in loans                                                                         (1,153)          (149)
       Purchases of premises and equipment                                                              0            (10)
                                                                                                  -------       --------

                      NET CASH USED IN INVESTING ACTIVITIES                                        (4,706)           (43)
                                                                                                  -------       --------

FINANCING ACTIVITIES
       Net increase (decrease) in demand deposits, money market, NOW and savings accounts          (3,342)           869
       Net increase in certificates of deposit                                                      2,222          1,290
       Repayment of Federal Home Loan Bank advances                                                (1,184)          (101)
       Dividends paid                                                                                 (92)           (90)
       Net increase in advances from borrowers for taxes and insurance                               (209)           (67)
       Proceeds from stock options exercised - new                                                      0            231
       Proceeds from stock options exercised - from treasury                                            0            491
       Purchase of treasury shares                                                                      0           (384)
                                                                                                  -------       --------

                      NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES                             (2,605)         2,239
                                                                                                  -------       --------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                   (6,732)         1,945

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                      9,595         10,473
                                                                                                  -------       --------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                                          $ 2,863       $ 12,418
                                                                                                  =======       ========
</TABLE>

See notes to condensed consolidated financial statements.

                                       6
<PAGE>

                         HOME CITY FINANCIAL CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (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, 2005, and December 31, 2004, and the consolidated results of
operations and the cash flows for the three months ended March 31, 2005 and
2004. Those adjustments consist only of normal recurring adjustments. The
condensed consolidated balance sheet of the Company as of December 31, 2004, has
been derived from the audited consolidated balance sheet of the Company as of
that date. Certain information and note disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles ("GAAP") have been omitted pursuant to the rules and regulations of
the Securities and Exchange Commission. 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,
2005, 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 Ended      Months Ended
                                              March 31,         March 31,
                                                 2005              2004
                                             ------------      ------------
<S>                                          <C>               <C>
Balance, beginning of period                  $   760            $    995
Provision for loan losses                          80                  50
Charge-offs                                         0                 (24)
Recoveries                                          4                   2
                                              -------            --------

Balance, end of period                        $   844            $  1,023
                                              =======            ========
</TABLE>

NOTE 3.  ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at March 31, 2005, consisted of seventeen advances totaling $33.9
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, 2005                                 At December 31, 2004
                        ----------------------------------------------     --------------------------------------------
                                        Range of           Weighted-                       Range of         Weighted-
                                        interest            average                        interest          average
                          Amount          rates          interest rate     Amount           rates         interest rate
                        ---------      ----------        -------------    ---------      -----------      -------------
<S>                     <C>            <C>               <C>              <C>            <C>              <C>
Due within
 one year               $     130      3.30%-6.35%            4.94%        $  1,249      2.38%-8.35%            3.22%

After one but
 within five
 years                  $  14,660      3.05%-7.28%            5.60%        $ 14,719      3.05%-7.28%            5.60%

After five
 years                  $  19,146      3.30%-6.84%            5.62%        $ 19,152      3.30%-6.84%            5.62%
</TABLE>

NOTE 4.  REGULATORY CAPITAL

The following table illustrates the compliance by the Bank with currently
applicable regulatory capital requirements at March 31, 2005.

<TABLE>
<CAPTION>
                                                               (Dollars in thousands)
                                                                                                 To be
                                                                                          Categorized as "Well
                                                                                           Capitalized" Under
                                                                    For Capital            Prompt Corrective
                                            Actual               Adequacy Purposes         Action Provisions
                                            ------               -----------------        --------------------
                                     Amount        Ratio        Amount        Ratio       Amount         Ratio
                                     -------       -----        ------        -----       ------         -----
<S>                                  <C>           <C>          <C>           <C>         <C>            <C>
Total Risk-Based Capital
   (To Risk-Weighted Assets)         $13,263        12.1%        $8,784         8.0%      $10,980         10.0%

Tier I Capital
   (To Risk-Weighted Assets)         $12,419        11.3%           N/A         N/A       $ 6,588          6.0%

Tier I Capital
     (To Total Assets)               $12,419         8.1%        $6,158         4.0% *    $ 7,697          5.0%

Tangible Capital
     (To Total Assets)               $12,419         8.1%        $2,309         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, 2005, stock options totaling 4,400
shares of common stock were not considered in computing EPS as they were
anti-dilutive. 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. 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, 2005
                                                                                  --------------
                                                                                     Weighted-
                                                                                      average           Per
                                                                     Income            Shares          Share
                                                                   (Numerator)     (Denominator)       Amount
                                                                   -----------     -------------      --------
<S>                                                                <C>             <C>                <C>
Basic EPS
   Income available to common shareholders                          $  192,776        815,535         $  0.24
   Effective of dilutive securities
   Stock options                                                             0          9,938
                                                                    ----------        -------
Diluted EPS
   Income available to common shareholders +
   assumed conversions                                              $  192,776        825,473         $  0.23
</TABLE>

<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>

                                       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
                                                            -----------------------------------
                                                                  2005             2004
                                                               ----------       ----------
<S>                                                            <C>              <C>
Net income, as reported                                        $      193       $      168
Less:  Total stock-based employee compensation
       cost determined under the fair value based
       method, net of income taxes                                     (2)              (2)
                                                               ----------       ----------
Pro forma net income                                           $      191       $      166
                                                               ==========       ==========
Earnings per share:
       Basic - as reported                                     $     0.24       $     0.21
                                                               ==========       ==========
       Basic - pro forma                                       $     0.23       $     0.21
                                                               ==========       ==========
       Diluted - as reported                                   $     0.23       $     0.21
                                                               ==========       ==========
       Diluted - pro forma                                     $     0.23       $     0.21
                                                               ==========       ==========
</TABLE>

NOTE 7. SUBSEQUENT EVENTS

The shareholders of Intrieve, Incorporated ("Intrieve"), which is the data
processor for Home City Federal Savings Bank ("HCFSB"), approved their sale and
merger into Harland Financial Solutions, Inc. on March 21, 2005, with closing
set for April 2005. Homciti Service Corp. ("Homciti"), a subsidiary of HCFSB
which is wholly-owned by HCFC, is a shareholder of Intrieve and will realize a
gain on the redemption of its common stock held as a result of the merger
transaction. Homciti's gross proceeds from the redemption will be approximately
$344,000 with a net gain before income tax of approximately $329,000. It is
anticipated that HCFC will recognize this transaction in the second quarter of
2005.

NOTE 8. FUTURE CHANGE IN ACCOUNTING PRINCIPLE

The Financial Accounting Standards Board issued EITF Issue 03-1 "The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments" in
2004 but has delayed its effective date until further guidance as to its
application is approved. As a result, two proposed FASB Staff Positions have
been issued: Proposed FSP EITF Issue 03-1-a, which provides guidance for the
recognition of impairment due to interest rate and/or sector spread increases,
and Proposed FSP Issue 03-1-b, which delays the effective date of EITF Issue
03-1. Until further guidance is provided, the Company is uncertain as to the
impact these issuances will have on its financial statements.

The Financial Accounting Standards Board issued Standard 123R "Share Based
Payments" in 2004, which becomes effective for fiscal years beginning after June
15, 2005. This standard impacts the accounting for and disclosure of stock-based
compensation plans. As disclosed in Note 1 "Stock Options" to the financial
statements included in Item 8, this standard will increase the Company's
compensation expense related to stock options.

                                       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, 2004. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions. The
financial position and results of operations can be affected by these estimates
and assumptions and are integral to the understanding of reported results.
Critical accounting policies are those policies that management believes are the
most important to the portrayal of Home City's financial condition and results,
and they require management to make estimates that are difficult, subjective, or
complex.

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

      Some types of loans are inherently more risky than others. The allowance
for commercial loans, nonresidential real estate loans and multifamily real
estate loans, which generally carry more risk than single-family residential
real estate loans, is determined based upon the individual credit relationships
and national and local economic factors that could affect such borrowers, as
well as actual loss histories. The allowance recorded for homogeneous consumer
loans is based on an analysis of loan mix, risk characteristics of the
portfolio, fraud loss and bankruptcy experiences, and historical losses,
adjusted for current trends, 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, 2005, the consolidated assets of the Company totaled $154.0
million, a decrease of $2.2 million, or 1.44%, from $156.2 million at December
31, 2004. The decrease in total assets showed as a reduction in cash and cash
equivalents and was primarily due to a $1.2 million decrease in Federal Home
Loan Bank advances and a $1.1 million decrease in deposits.

      Net loans receivable increased by $1.0 million, or 0.82%, to $131.1
million at March 31, 2005, compared to $130.1 million at December 31, 2004,
reflecting an upswing in loan activity.

      Total cash and cash equivalents decreased by $6.7 million, or 70.16%,
during the first quarter of 2005. This reflected a shift of interest-bearing
demand deposits to a position in short-term treasury bills at quarter end as
well as paydown of the Federal Home Loan Bank advances.

      Available-for-sale securities increased $3.5 million, or 55.16%, from $6.4
million at December 31, 2004, to $9.9 million at March 31, 2005, mainly due to
the investment in the short-term treasury bills.

      Deposit balances decreased $1.1 million, or 1.04%, from $107.2 million at
December 31, 2004, to $106.1 million at March 31, 2005. Savings, NOW and money
market deposits decreased $3.7 million and time deposits increased $2.2 million
reflecting mainly a shift from our Prime Statement savings accounts to short
range certificates of deposit..

      Advances from the FHLB decreased $1.2 million, or 3.37%, from $35.1
million at December 31, 2004, to $33.9 million at March 31, 2005, as a result of
the paydowns.

      Total shareholders' equity increased $151,000, or 1.19%, from December 31,
2004, to March 31, 2005. This increase was primarily the result of the $193,000
of first quarter 2005 income together with a $5,000 increase from accumulated
other comprehensive loss, and increases of $36,000 from ESOP shares earned and
the $9,000 of amortization from unearned compensation expense all partially
offset by the $92,000 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, 2005, the Bank's regulatory
liquidity ratio was 15.13%. At such date, the Bank had commitments to originate
loans totaling $11.8 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, 2005.

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

RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED MARCH 31, 2005 AND 2004

      GENERAL. Net income increased $25,000, or 14.88%, from $168,000 for the
three months ended March 31, 2004, to $193,000 for the three months ended March
31, 2005. The increase was comprised of $62,000 more in net interest income and
a decrease of $38,000 in noninterest expense, partially offset by an increase of
$30,000 in the provision for loan losses, a $16,000 decrease in noninterest
income and an increase of $29,000 in the provision for federal income tax
expense.

      INTEREST INCOME. The $1.5 million increase in average earning assets in
addition to a 4 basis point increase in yields resulted in an increase in
interest income of $37,000, or 1.69%, for the three months ended March 31, 2005,
compared to the same period in 2004. The increase in the amount of average
interest-earning assets resulted in $22,000 of the increased interest income
while the increase in yields accounted for the remaining $15,000.

      INTEREST EXPENSE. Interest expense on deposit liabilities decreased
$25,000, or 2.29%, for the three months ended March 31, 2005, as compared to the
same period in 2004. Total average deposits increased by $2.4 million comparing
the quarters ended March 31, 2005 and 2004, and the average interest rate paid
on interest-bearing deposits decreased by 10 basis points from 2.47% for the
three months ended March 31, 2004, to 2.37% for the same period in 2005. The
average balance of FHLB advances decreased from $34.7 million for the
three-month period ended March 31, 2004, to $34.1 million for the same period in
2005 and, aided by a 12 basis point decrease in rates paid, resulted in a
decrease in interest on FHLB advances of $13,000 for the three months ended
March 31, 2005, compared to the same period in 2004.

      PROVISION FOR LOAN LOSSES. The provision for loan losses was $80,000, and
there were $4,000 in net recoveries during the three months ended March 31,
2005, compared to a $50,000 provision and $22,000 of net charge-offs during the
three months ended March 31, 2004. The provision was increased 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 $16,000 for the three
months ended March 31, 2005, compared to the same period in 2004. The decrease
was primarily the result of other miscellaneous income factors which included a
net loss on the sale of real estate owned of $19,000.

      NONINTEREST EXPENSE. Noninterest expense decreased $38,000, or 4.38%, to
$829,000 for the three months ended March 31, 2005, from $867,000 in the
comparable period in 2004. Of this decrease, $42,000 was attributable to a
decrease in salaries and employee benefits expense in 2005, reflecting staff
composition changes and net occupancy expense decreased $5,000. These decreases
were partially offset

                                       14
<PAGE>

by the $12,000 increase in data processing fees. The annualized ratio of
noninterest expense to average total assets was 2.14% and 2.27% for the three
months ended March 31, 2005 and 2004, respectively.

      INCOME TAXES. The provision for income taxes increased $29,000 for the
three months ended March 31, 2005, compared to the same period in 2004,
primarily as a result of the $54,000 increase 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, 2005. There was no change in the
registrant's internal control over financial reporting during the quarter ended
March 31, 2005, 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 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

      Not Applicable

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

      Not Applicable

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

      On April 27, 2005, the Corporation held its Annual Meeting of
      Shareholders.

      Each of the five directors nominated were elected to terms expiring in
      2006 by the following votes:

<TABLE>
<S>                    <C>             <C>                 <C>                  <C>
Glenn W. Collier       For:  701,420   Withheld: 19,987    Broker Non-votes     0
John D. Conroy         For:  702,220   Withheld: 19,187    Broker Non-votes     0
James M. Foreman       For:  702,720   Withheld: 18,687    Broker Non-votes     0
Terry A. Hoppes        For:  702,720   Withheld: 18,687    Broker Non-votes     0
J. William Stapleton   For:  694,255   Withheld: 27,152    Broker Non-votes     0
</TABLE>

ITEM 5 - OTHER INFORMATION

      Not Applicable

ITEM 6 - EXHIBITS

      (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.

                                       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 12, 2005               /s/ J. William Stapleton
                                ------------------------------------------------
                                J. William Stapleton
                                President, Chief Executive Officer and
                                Chief Operating Officer

Date: May 12, 2005               /s/ Charles A. Mihal
                                ------------------------------------------------
                                Charles A. Mihal
                                Secretary, Treasurer and Chief Financial Officer

                                       18