<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, 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)

<TABLE>
<S>                                                          <C>
                   OHIO                                           34-1839475
     (STATE OR OTHER JURISDICTION OF                           (I.R.S. EMPLOYER
      INCORPORATION OR ORGANIZATION)                         IDENTIFICATION NO.)
</TABLE>

<TABLE>
<S>                                                               <C>
       2454 North Limestone Street
            Springfield, Ohio                                       45503
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                          (ZIP CODE)
</TABLE>

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

                                       N/A
                          (FORMER ADDRESS LAST REPORT)

As of August 3, 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
                                                    -----    -----


                                       1
<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 -- June 30, 2005, and
           December 31, 2004                                                   3

           Condensed consolidated statements of income -- Six months
           and three months ended June 30, 2005 and 2004                       4

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

           Condensed consolidated statements of cash flows --
           Six months ended June 30, 2005 and 2004                             6

           Notes to condensed consolidated financial statements                7

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

      3.   Controls and Procedures                                            18

PART II OTHER INFORMATION

   ITEM

      1.   Legal Proceedings                                                  19

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

      3.   Defaults upon Senior Securities                                    19

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

      5.   Other Information                                                  19

      6.   Exhibits                                                           19

Signatures                                                                    20

Certifications                                                           21 - 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 June     At December
                                                                30, 2005      31, 2004
                                                              -----------   -----------
<S>                                                           <C>           <C>
ASSETS
Cash and cash equivalents
   Cash and due from banks                                      $  2,512     $     859
   Interest-bearing demand deposits                                  111         6,529
   Federal funds sold                                                824         2,207
                                                                --------     ---------
      Cash and cash equivalents                                    3,447         9,595

Available-for-sale securities                                      6,750         6,432
Loans held for sale                                                  353           -0-
Loans, net of allowance for loan losses of $1,286 and $760
   at June 30, 2005 and December 31, 2004                        130,219       130,067
Premises and equipment                                             3,493         3,602
Federal Home Loan Bank stock                                       2,415         2,360
Interest receivable                                                  546           544
Cash surrender value of life insurance                             3,120         3,067
Other                                                                504           557
                                                                --------     ---------
      TOTAL ASSETS                                              $150,847     $ 156,224
                                                                ========     =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
   Demand                                                       $  7,110     $   5,235
   Savings, NOW and money market                                  38,883        51,173
   Time                                                           56,351        50,796
                                                                --------     ---------
      Total Deposits                                             102,344       107,204
                                                                --------     ---------
Federal Home Loan Bank advances                                   34,371        35,120
Interest payable and other liabilities                             1,094         1,165
                                                                --------     ---------
      TOTAL LIABILITIES                                          137,809       143,489

COMMITMENTS AND CONTINGENT LIABILITIES

SHAREHOLDERS' EQUITY
Preferred shares, no par value: authorized
   1,000,000 shares; none issued                                     -0-           -0-
Common shares, no par value: authorized 5,000,000 shares;
   shares issued - 981,913 and 981,913                               -0-           -0-
Additional paid-in capital                                         6,343         6,325
Retained earnings                                                  9,081         8,868
Unearned Recognition and Retention Plan (RRP) shares                 (51)          (69)
Unearned Employee Stock Ownership Plan (ESOP) shares                (166)         (221)
Accumulated other comprehensive loss                                (179)         (178)
Treasury shares, at cost; 146,223 shares and 146,223 shares       (1,990)       (1,990)
                                                                --------     ---------
      TOTAL SHAREHOLDERS' EQUITY                                  13,038        12,735
                                                                --------     ---------
      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                $150,847     $ 156,224
                                                                ========     =========
</TABLE>

See notes to condensed consolidated financial statements.


                                       3
<PAGE>
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                    (Dollars in thousands)             (Dollars in thousands)
                                                               -------------------------------   -------------------------------
                                                                 (Unaudited)      (Unaudited)      (Unaudited)      (Unaudited)
                                                               3 Months Ended   3 Months Ended   6 Months Ended   6 Months Ended
                                                                June 30, 2005    June 30, 2004    June 30, 2005    June 30, 2004
                                                               --------------   --------------   --------------   --------------
<S>                                                            <C>              <C>              <C>              <C>
INTEREST INCOME
Loans                                                              $2,202           $2,079           $4,334           $4,193
Securities                                                             27               39               59               74
Federal funds sold                                                      2               18                8               37
Dividends on Federal Home Loan Bank stock                              29               23               55               45
Deposits with financial institutions                                   30                0               61                0
                                                                   ------           ------           ------           ------
   TOTAL INTEREST INCOME                                            2,290            2,159            4,517            4,349

INTEREST EXPENSE
Deposits                                                              605              602            1,203            1,212
Borrowings                                                            478              482              949              966
                                                                   ------           ------           ------           ------
   TOTAL INTEREST EXPENSE                                           1,083            1,084            2,152            2,178
                                                                   ------           ------           ------           ------
   NET INTEREST INCOME                                              1,207            1,075            2,365            2,171
Provision for loan losses                                             475               50              555              100
                                                                   ------           ------           ------           ------
   NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                                          732            1,025            1,810            2,071
NONINTEREST INCOME
Service charges on deposits                                            10               10               20               20
Net realized gains on sales of available-for-sale securities            0                5                0                5
Gain on redemption of Intrieve Incorporated stock                     329                0              329                0
Life insurance                                                         35               34               70               69
Other                                                                  45                0               36                7
                                                                   ------           ------           ------           ------
   TOTAL NONINTEREST INCOME                                           419               49              455              101

NONINTEREST EXPENSE
Salaries and employee benefits                                        471              425              898              894
Net occupancy expense                                                  68               71              134              142
Equipment expense                                                      55               55              109              112
Data processing fees                                                   59               56              129              114
Professional fees                                                      70               65              146              140
Franchise taxes                                                        40               37               81               75
Other                                                                  90              109              185              208
                                                                   ------           ------           ------           ------
   TOTAL NONINTEREST EXPENSE                                          853              818            1,682            1,685
                                                                   ------           ------           ------           ------
   NET INCOME BEFORE FEDERAL
   INCOME TAX EXPENSE                                                 298              256              583              487
Provision for income tax expense                                       94               75              186              138
                                                                   ------           ------           ------           ------
   NET INCOME                                                      $  204           $  181           $  397           $  349
                                                                   ======           ======           ======           ======
Earnings per common share - basic                                  $ 0.25           $ 0.23           $ 0.49           $ 0.44
Earnings per common share - diluted                                $ 0.25           $ 0.22           $ 0.48           $ 0.43
Dividends declared per share                                       $ 0.11           $ 0.11           $ 0.22           $ 0.22
</TABLE>

See notes to condensed consolidated financial statements.


                                       4
<PAGE>
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                             (DOLLARS IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                    Accumulated
                                                     Additional                          Unearned      Other
                                                       Paid-in   Retained    Unearned      ESOP    Comprehensive  Treasury
                                             Shares    Capital   Earnings  Compensation   Shares        Loss       Shares    Total
                                            -------  ----------  --------  ------------  --------  -------------  --------  -------
<S>                                         <C>      <C>         <C>       <C>           <C>       <C>            <C>       <C>
Balance, January 1, 2005                    981,913    $6,325     $8,868       $(69)      $(221)       $(178)     $(1,990)  $12,735
Comprehensive income
   Net income                                                        397                                                        397
Change in unrealized gain (loss) on
   securities available for sale, net
   of reclassification adjustment and
   tax effect                                                                                             (1)                    (1)
                                                                                                                            -------
Total comprehensive income                                                                                                      396
                                                                                                                            -------
Amortization of unearned compensation
   expense                                                                       18                                              18
ESOP shares earned                                         18                                55                                  73
Dividends on common shares, $.22 per share                          (184)                                                      (184)
                                            -------    ------     ------       ----       -----        -----      -------   -------
Balance, June 30, 2005                      981,913    $6,343     $9,081       $(51)      $(166)       $(179)     $(1,990)  $13,038
                                            =======    ======     ======       ====       =====        =====      =======   =======
</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)
                                                               6 Months ended   6 Months ended
                                                                June 30, 2005    June 30, 2004
                                                               --------------   --------------
<S>                                                            <C>              <C>
OPERATING ACTIVITIES
Net income                                                        $    397         $   349
   Items not requiring (providing) cash
      Depreciation and amortization                                    117             116
      Provision for loan losses                                        555             100
      Amortization of premiums and discounts on securities              17              43
      Deferred income taxes                                           (418)           (114)
      Increase in cash surrender value of life insurance               (53)            (56)
      Employees Stock Ownership Plan compensation expense               73              78
      Recognition and Retention Plan compensation expense               18              13
      Net realized gains on available-for-sale securities                0              (5)
      Gain on redemption of Intrieve Incorporated stock               (329)              0
      Gain on sale of real estate owned                                (13)              0
      FHLB stock dividends                                             (55)            (46)
      Proceeds from sale of loans held for sale                        816               0
      Originations of loans held for sale                           (1,152)              0
      Gain on sale of loans                                            (17)              0

   Changes in
      Interest receivable                                               (2)             19
      Other assets                                                     469            (628)
      Interest payable and other liabilities                           139             (78)
                                                                  --------         -------
         NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES           562            (209)
                                                                  --------         -------

INVESTING ACTIVITIES
   Purchase of available-for-sale securities                        (9,989)         (6,720)
   Proceeds from payments and maturities of securities
      available-for-sale                                             9,653           1,285
   Proceeds from redemption of Intrieve Incorporated stock             344               0
   Proceeds from sales of available-for-sale securities                  0             192
   Net change in loans                                                (707)            769
   Purchases of premises and equipment                                  (8)            (11)
                                                                  --------         -------
         NET CASH USED IN INVESTING ACTIVITIES                        (707)         (4,485)
                                                                  --------         -------

FINANCING ACTIVITIES
   Net increase (decrease) in demand deposits,
      money market, NOW and savings accounts                       (10,417)          1,318
   Net increase in certificates of deposit                           5,555              97
   Proceeds from Federal Home Loan Bank advances                     2,500               0
   Repayment of Federal Home Loan Bank advances                     (3,249)           (204)
   Dividends paid                                                     (184)           (181)
   Net decrease in advances from borrowers for
      taxes and insurance                                             (208)           (136)
   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 BY (USED IN) FINANCING ACTIVITIES        (6,003)          1,232
                                                                  --------         -------
DECREASE IN CASH AND CASH EQUIVALENTS                               (6,148)         (3,462)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       9,595          10,473
                                                                  --------         -------
CASH AND CASH EQUIVALENTS, END OF PERIOD                          $  3,447         $ 7,011
                                                                  ========         =======
</TABLE>

See notes to condensed consolidated financial statements.


                                       6
<PAGE>
                         HOME CITY FINANCIAL CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                       JUNE 30, 2005 AND DECEMBER 31, 2004

                                   (UNAUDITED)

NOTE 1. BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments necessary for a fair presentation
of Home City Financial Corporation's ("Company" or "HCFC") financial position as
of June 30, 2005, and December 31, 2004, and the consolidated results of
operations and the cash flows for the six months ended June 30, 2005 and 2004.
Those adjustments consist only of normal recurring adjustments. The condensed
consolidated balance sheet of the Company as of December 31, 2004, has been
derived from the audited consolidated balance sheet of the Company as of that
date. Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
("GAAP") have been omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. 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 six months ended June 30,
2005, are not necessarily indicative of the results to be expected for the
entire fiscal year.

NOTE 2. ALLOWANCE FOR LOAN LOSSES

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

<TABLE>
<CAPTION>
                                  (Dollars in thousands)
                               ---------------------------
                                    Six            Six
                               Months Ended   Months Ended
                                 June 30,       June 30,
                                   2005           2004
                               ------------   ------------
<S>                            <C>            <C>
Balance, beginning of period      $  760         $ 995
Provision for loan losses            555           100
Charge-offs                          (35)         (307)
Recoveries                             6             4
                                  ------         -----
Balance, end of period            $1,286         $ 792
                                  ======         =====
</TABLE>

NOTE 3. ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at June 30, 2005, consisted of eighteen advances for $34.4 million
from the Federal Home Loan Bank of Cincinnati ("FHLB"). The advances are
collateralized by all shares of FHLB stock owned by the Home City Federal
Savings Bank of Springfield ("Bank") and by the Bank's qualified mortgage loan
portfolio.


                                       7
<PAGE>
Scheduled maturities of advances from the FHLB were as follows:

<TABLE>
<CAPTION>
                                                             (Dollars in thousands)
                                  ---------------------------------------------------------------------------
                                            At June 30, 2005                     At December 31, 2004
                                  ------------------------------------   ------------------------------------
                                             Range of      Weighted-                Range of      Weighted-
                                             interest       average                 interest       average
                                   Amount      rates     interest rate    Amount      rates     interest rate
                                  -------   ----------   -------------   -------   ----------   -------------
<S>                               <C>       <C>          <C>             <C>       <C>          <C>
Due within one year               $   630   3.30%-6.35%      3.72%       $ 1,249   2.38%-8.35%      3.22%
After one but within five years   $19,601   3.05%-7.28%      5.90%       $14,719   3.05%-7.28%      5.60%
After five years                  $14,140   3.30%-5.80%      5.21%       $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 June 30, 2005.

<TABLE>
<CAPTION>
                                                 (Dollars in thousands)
                               ----------------------------------------------------------
                                                                             To be
                                                                     Categorized as "Well
                                                                      Capitalized" Under
                                                    For Capital        Prompt Corrective
                                     Actual      Adequacy Purposes     Action Provisions
                               ---------------   -----------------   --------------------
                                Amount   Ratio     Amount   Ratio       Amount   Ratio
                               -------   -----     ------   -----      -------   -----
<S>                            <C>       <C>     <C>        <C>      <C>         <C>
Total Risk-Based Capital
   (To Risk-Weighted Assets)   $13,908   12.5%     $8,921   8.0%       $11,152   10.0%
Tier I Capital
   (To Risk-Weighted Assets)   $12,622   11.3%        N/A   N/A        $ 6,691    6.0%
Tier I Capital
   (To Total Assets)           $12,622    8.4%     $6,042   4.0%*      $ 7,552    5.0%
Tangible Capital
   (To Total Assets)           $12,622    8.4%     $2,266   1.5%           N/A    N/A
</TABLE>

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


                                        8
<PAGE>
NOTE 5. EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                                         For the Three Months Ended
                                                                June 30, 2005
                                                    ------------------------------------
                                                                    Weighted-
                                                                     average        Per
                                                       Income         Shares       Share
                                                    (Numerator)   (Denominator)   Amount
                                                    -----------   -------------   ------
<S>                                                 <C>           <C>             <C>
Basic EPS
   Income available to common shareholders            $203,999       816,461       $0.25

   Effective of dilutive securities
   Stock options                                             0         9,721
                                                      --------       -------
Diluted EPS
   Income available to common shareholders +
      assumed conversions                             $203,999       826,182       $0.25
                                                      ========       =======
</TABLE>

<TABLE>
<CAPTION>
                                                         For the Three Months Ended
                                                                June 30, 2004
                                                    ------------------------------------
                                                                    Weighted-
                                                                     average        Per
                                                       Income         Shares       Share
                                                    (Numerator)   (Denominator)   Amount
                                                    -----------   -------------   ------
<S>                                                 <C>           <C>             <C>
Basic EPS
   Income available to common shareholders            $180,778       795,503       $0.23

   Effective of dilutive securities
   Stock options                                             0        16,289
                                                      --------       -------
Diluted EPS
   Income available to common shareholders +
      assumed conversions                             $180,778       811,792       $0.22
                                                      ========       =======
</TABLE>


                                       9
<PAGE>
<TABLE>
<CAPTION>
                                                          For the Six Months Ended
                                                                June 30, 2005
                                                    ------------------------------------
                                                                    Weighted-
                                                                     average        Per
                                                       Income         Shares       Share
                                                    (Numerator)   (Denominator)   Amount
                                                    -----------   -------------   ------
<S>                                                 <C>           <C>             <C>
Basic EPS
   Income available to common shareholders            $396,775       815,998       $0.49

   Effective of dilutive securities
   Stock Options                                             0         9,829
                                                      --------       -------

Diluted EPS
   Income available to common shareholders +
      assumed conversions                             $396,775       825,827       $0.48
                                                      ========       =======
</TABLE>

<TABLE>
<CAPTION>
                                                          For the Six Months Ended
                                                                June 30, 2004
                                                    ------------------------------------
                                                                    Weighted-
                                                                     average        Per
                                                       Income         Shares       Share
                                                    (Numerator)   (Denominator)   Amount
                                                    -----------   -------------   ------
<S>                                                 <C>           <C>             <C>
Basic EPS
   Income available to common shareholders            $348,761       788,636       $0.44

   Effective of dilutive securities
   Stock options                                             0        18,106
                                                      --------       -------

Diluted EPS
   Income available to common shareholders +
      assumed conversions                             $348,761       806,742       $0.43
                                                      ========       =======
</TABLE>


                                       10
<PAGE>
NOTE 6. STOCK OPTIONS

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

<TABLE>
<CAPTION>
                                                   (Dollars in thousands except per share amounts)
                                                   -----------------------------------------------
                                                      For the Three Months   For the Six Months
                                                          ended June 30         ended June 30
                                                      --------------------   ------------------
                                                          2005    2004          2005    2004
                                                         -----   -----         -----   -----
<S>                                                <C>           <C>         <C>       <C>
Net income, as reported                                  $ 204   $ 181         $ 397   $ 349
Less: Total stock-based employee compensation
      cost determined under the fair value based
      method net of income taxes                            (2)     (3)           (4)     (5)
                                                         -----   -----         -----   -----
Pro forma net income                                     $ 202   $ 178         $ 393   $ 344
                                                         =====   =====         =====   =====
Earnings per share:
      Basic - as reported                                $0.25   $0.23         $0.49   $0.44
                                                         =====   =====         =====   =====
      Basic - pro forma                                  $0.25   $0.22         $0.48   $0.44
                                                         =====   =====         =====   =====
      Diluted - as reported                              $0.25   $0.22         $0.49   $0.43
                                                         =====   =====         =====   =====
      Diluted - pro forma                                $0.25   $0.22         $0.48   $0.43
                                                         =====   =====         =====   =====
</TABLE>

NOTE 7. 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.


                                       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 and the disclosure of contingent assets and liabilities
at the date of the financial statements and revenues and expenses during the
reporting period. Actual results could differ from such estimates.


                                       12
<PAGE>
     The Bank is regulated by the Office of Thrift Supervision ("OTS") and its
deposits are insured up to applicable limits under the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").

     The Bank is a member of the FHLB, conducting its business through its two
offices located in Springfield, Ohio. The primary market area of the Bank is
Clark County, Ohio, and contiguous counties.

CRITICAL ACCOUNTING POLICIES

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

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

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

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

                         CHANGES IN FINANCIAL CONDITION

     At June 30, 2005, the consolidated assets of the Company totaled $150.8
million, a decrease of $5.4 million, or 3.44%, from $156.2 million at December
31, 2004. The decrease in total assets was primarily the result of the reduction
in cash and cash equivalents used to cover deposit net outflows of $4.9 million
and $749,000 of paydowns of FHLB advances.


                                       13
<PAGE>
     Net loans receivable increased by $152,000, or 0.12%, to $130.2 million
during the six months ended at June 30, 2005, from $130.1 million at December
31, 2004. The slight increase reflected diminished loan activity in the latter
part of the first half of 2005.

     Total cash and cash equivalents decreased by $6.1 million, or 64.08%,
during the first half of 2005. This resulted primarily from funding $4.9 million
of deposit net outflows and $749,000 of paydowns of FHLB advances.

     Available-for-sale securities increased $318,000, or 4.94%, from $6.4
million at December 31, 2004, to $6.7 million at June 30, 2005, mainly as the
result of net redistribution of a portion of interest bearing demand deposits as
well as federal funds into treasury investments.

     Deposit balances decreased $4.9 million, or 4.53%, from $107.2 million at
December 31, 2004, to $102.3 million at June 30, 2005. While demand, savings,
NOW and money market deposits decreased by $10.4 million, or 18.46%, time
deposits increased by only $5.6 million, or 10.94%, reflecting the diminished
Prime Statement savings account balances as depositors moved into short-term
certificates within or investment opportunities elsewhere as rates continued to
rise.

     Advances from the FHLB decreased $749,000, or 2.13%, from $35.1 million at
December 31, 2004, to $34.4 million at June 30, 2005, representing a net paydown
of principal on the advances.

     Total shareholders' equity increased $303,000, or 2.38%, from December 31,
2004, to June 30, 2005. This increase was primarily the result of the $397,000
of first half 2005 income together with increases of $73,000 from ESOP shares
earned and $18,000 amortization of unearned compensation expense, all of which
were partially offset by the $184,000 cash dividend payment and the $1,000
increase in accumulated other comprehensive loss.

     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, 2005, the Bank's regulatory
liquidity ratio was 12.89%. At such date, the Bank had commitments to originate
loans totaling $11.9 million and commitments to sell loans of $537,100. The Bank
considers its liquidity and capital reserves sufficient to meet its outstanding
short- and long-term needs. Adjustments to liquidity and capital reserves may be
necessary, however, if loan demand increases more than expected or if deposits
decrease substantially.


                                       14
<PAGE>
     The Bank is required by applicable law and regulation to meet certain
minimum capital standards. Such capital standards include a tangible capital
requirement, a core capital requirement or leverage ratio and a risk-based
capital requirement. See "Note 4 - Regulatory Capital." The Bank exceeded all of
its capital requirements at June 30, 2005.

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

                              RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED JUNE 30, 2005 AND 2004

     GENERAL. Net income increased $23,000, or 12.71%, from $181,000 for the
three months ended June 30, 2004, to $204,000 for the three months ended June
30, 2005. The increase was comprised of an increase of $132,000 in net interest
income and an increase of $370,000 in noninterest income both of which were
partially offset by an increase of $425,000 in the provision for loan losses, a
$35,000 increase in noninterest expense and an increase of $19,000 in the
provision for federal income tax expense.

     INTEREST INCOME. Average earning assets remained virtually the same at
$145.1 million, but a 36 basis point increase in yields resulted in an increase
in interest income of $131,000, or 6.07%, for the three months ended June 30,
2005, compared to the same period in 2004. The increase in yields resulted
mainly from the repricing of variable rate loans as the Federal Reserve raised
rates 25 basis points nine times since July 2004 through June 30, 2005.

     INTEREST EXPENSE. Interest expense on deposit liabilities increased $3,000,
or 0.50%, for the three months ended June 30, 2005, as compared to the same
period in 2004. Total average deposits decreased by $2.0 million comparing the
quarters ended June 30, 2005 and 2004, and the average interest rate paid on
interest-bearing deposits increased by 7 basis points from 2.41% for the three
months ended June 30, 2004, to 2.48% for the same period in 2005. The average
balance of FHLB advances decreased from $34.6 million for the three-month period
ended June 30, 2004, to $34.4 million for the same period in 2005 and, coupled
with a 2 basis point decrease in rates paid, resulted in a decrease in interest
on FHLB advances of $4,000 for the three months ended June 30, 2005, compared to
the same period in 2004.

     PROVISION FOR LOAN LOSSES. The provision for loan losses was $475,000, and
there were $33,000 in net charge-offs during the three months ended June 30,
2005, compared to a $50,000 provision and $280,000 in net charge-offs during the
three months ended June 30, 2004. The provision was increased based upon the
results of management's ongoing loan reviews, analysis of loan delinquencies,
analysis of the economic factors specific to our local demographic area, as well
as national data, and in conjunction with historic trends and portfolio
composition.

     NONINTEREST INCOME. Noninterest income increased by $370,000 for the three
months ended June 30, 2005, compared to the same period in 2004. The increase
was mainly due to a $329,000 net gain on the redemption of Intrieve Incorporated
stock. Another $32,000 resulted from net gains on the sale of real estate owned.

     NONINTEREST EXPENSE. Noninterest expense increased $35,000, or 4.28%, to
$853,000 for the three months ended June 30, 2005, from $818,000 in the
comparable period in 2004. This increase was attributable to a $46,000 increase
in salaries and employee benefits expense reflecting staffing decisions and was
offset partially by a decrease of $19,000 in other noninterest expenses. The
annualized ratio of noninterest expense to average total assets was 2.24% and
2.13% for the three months ended June 30, 2005 and 2004, respectively.


                                       15
<PAGE>
     INCOME TAXES. The provision for income taxes increased $19,000 for the
three months ended June 30, 2005, compared with the same period in the prior
year, primarily as a result of the $42,000 increase in net income before federal
income tax expense and the composition of the taxable and non-taxable income for
the quarter. The effective tax rate for the three months ended June 30, 2005,
was 31.54% versus 29.30% for the same period in 2004 reflecting the impact of
the 34% tax rate on the $329,000 gain on the redemption of the Intrieve
Incorporated stock.

COMPARISON OF SIX MONTHS ENDED JUNE 30, 2005 AND 2004

     GENERAL. Net income increased $48,000, or 13.75%, from $349,000 for the six
months ended June 30, 2004, to $397,000 for the six months ended June 30, 2005.
This increase was primarily attributed to an increase of $194,000 in net
interest income, an increase of $354,000 in noninterest income and a $3,000
decrease in noninterest expense all of which were partially offset by a $455,000
increase in the provision for loan losses and a $48,000 increase in federal
income tax expense.

     INTEREST INCOME. The $690,000 increase in average earning assets in
conjunction with a 20 basis point increase in yields resulted in an increase in
interest income of $168,000, or 3.86%, for the six months ended June 30, 2005,
compared to the same period in 2004. The increase in yields caused an increase
of $147,000 in interest income, with the remaining $21,000 increase resulting
from the slight increase in the amount of average interest earning assets. The
increase in yields resulted mainly from the repricing of variable rate loans as
the Federal Reserve raised rates 25 basis points nine times since July 2004
through June 30, 2005.

     INTEREST EXPENSE. Interest expense on deposit liabilities decreased only
$9,000, or 0.74%, for the six months ended June 30, 2005, as compared to the
same period in 2004. Total average interest-bearing deposits increased by only
$186,000 comparing the six months ended June 30, 2005 to 2004, and the average
interest rate paid on interest-bearing deposits decreased by only 2 basis points
from 2.44% for the six-month period ended June 30, 2004, to 2.42% for the same
period ended June 30, 2005. The average balance of FHLB advances decreased from
$34.6 million for the six-month period ending June 30, 2004, to $34.2 million
for the same period ended June 30, 2005, which combined with a decrease of 4
basis points in cost resulted in a decrease in interest on FHLB advances of
$17,000 for the six-month period ended June 30, 2005, compared to the same
period ended June 30, 2004. Of the overall decrease of $26,000 in interest
expense, $25,000 is attributable to rates paid, or yields, on interest costing
liabilities, and $1,000 is attributed to volume decreases.

     PROVISION FOR LOAN LOSSES. The provision for loan losses was $555,000 and
there were net charge-offs of $29,000 during the six months ended June 30, 2005,
compared to a $100,000 provision and net charge-offs of $303,000 during the six
months ended June 30, 2004. The provision was increased significantly based upon
the results of management's ongoing analyses of the adequacy of the allowance
for loan losses.

     NONINTEREST INCOME. Noninterest income increased by $354,000 for the six
months ended June 30, 2005, compared to the same period in 2004. The increase
was mainly due to a $329,000 net gain on the redemption of Intrieve Incorporated
stock. An additional $13,000 resulted from net gains on the sale of real estate
owned.

     NONINTEREST EXPENSE. Noninterest expense decreased $3,000, or 0.18%, to
$1,682,000 for the six months ended June 30, 2005, from $1,685,000 in the
comparable period in 2004. Decreases in net occupancy expense of $8,000 and
other noninterest expenses of $23,000 were almost fully offset by an increase of
$15,000 in data processing fees and increases of $6,000 each in professional
fees and franchise taxes. The annualized ratio of noninterest expense to average
total assets was 2.19% and 2.20% for the six months ended June 30, 2005 and
2004, respectively.


                                       16
<PAGE>
     INCOME TAXES. The provision for income taxes increased $48,000 for the six
months ended June 30, 2005, compared with the same period in the prior year,
primarily as a result of the $96,000 increase in net income before federal
income tax expense and the composition of the taxable and non-taxable income for
the six-month period. The effective tax rate for the first half of 2005 was
31.90% versus 28.34% for the same period in 2004 reflecting the impact of the
34% tax rate on the $329,000 gain on the redemption of the Intrieve Incorporated
stock.


                                       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, 2005. There was no change in the
registrant's internal control over financial reporting during the quarter ended
June 30, 2005, that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.


                                       18
<PAGE>
                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO
                           PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

     None

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     Not Applicable

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

     Not Applicable

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

     Not Applicable

ITEM 5 - OTHER INFORMATION

     Not Applicable

ITEM 6 - EXHIBITS

     (a)  The following exhibits are attached:

<TABLE>
<S>  <C>             <C>
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.
</TABLE>


                                       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 15, 2005                   /s/ J. William Stapleton
                                        ----------------------------------------
                                        J. William Stapleton, President,
                                        Chief Executive Officer and
                                        Chief Operating Officer


Date: August 15, 2005                   /s/ Charles A. Mihal
                                        ----------------------------------------
                                        Charles A. Mihal
                                        Secretary, Treasurer and
                                        Chief Financial Officer


                                       20