<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 SEPTEMBER 30, 2003

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
     _________ TO __________

                        COMMISSION FILE NUMBER - 0-21809
                         HOME CITY FINANCIAL CORPORATION
        (EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

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

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


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

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

As of November 5, 2003, 784,400 common shares of the Registrant were
outstanding. There were no preferred shares outstanding.

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

<PAGE>

                         HOME CITY FINANCIAL CORPORATION
                                SPRINGFIELD, OHIO

                                   FORM 10-QSB
                                      INDEX


            =======================================================

                                                                     Page Number

PART I FINANCIAL INFORMATION

     ITEM

      1.  Financial Statements (Unaudited)

          Condensed consolidated balance sheets --                             3
          September 30, 2003, and December 31, 2002

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

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

          Condensed consolidated statements of cash flows --                   6
          Nine months ended September 30, 2003 and 2002

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

      2.  Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                           13

      3.  Controls and Procedures                                             19

PART II OTHER INFORMATION

     ITEM

      1.  Legal Proceedings                                                   20

      2.  Changes in Securities and Use of Proceeds                           20

      3.  Defaults upon Senior Securities                                     20

      4.  Submission of Matters to a Vote of Security Holders                 20

      5.  Other Information                                                   20

      6.  Exhibits and Reports on Form 8-K                                    20

Signatures                                                                    21

Certifications                                                           22 & 23


                                       2
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                                                                   (Dollars in thousands)
                                                               (Unaudited)
                                                               At September      At December
                                                                30, 2003          31, 2002
                                                               ------------      -----------
<S>                                                             <C>               <C>
ASSETS
Cash and cash equivalents
   Cash and due from banks                                      $     946         $   1,158
   Interest-bearing demand deposits                                 2,214             3,289
   Federal funds sold                                               5,101             1,614
                                                                ---------         ---------
      Cash and cash equivalents                                     8,261             6,061

Interest bearing deposits                                             -0-                24
Available-for-sale securities                                       4,969             6,363
Loans, net of allowance for loan losses of $912 and $503
   at September 30, 2003 and December 31, 2002                    127,090           127,415
Premises and equipment                                              3,762             3,935
Federal Home Loan Bank stock                                        2,243             2,177
Interest receivable                                                   599               600
Cash surrender value of life insurance                              2,922             2,829
Other                                                                 180               331
                                                                ---------         ---------
      TOTAL ASSETS                                              $ 150,026         $ 149,735
                                                                =========         =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits

  Demand                                                        $   5,523         $   5,468
  Savings, NOW and money market                                    47,650            29,626
  Time                                                             48,657            64,025
                                                                ---------         ---------
      Total Deposits                                              101,830            99,119
                                                                ---------         ---------

Federal Home Loan Bank advances                                    35,428            38,199

Interest payable and other liabilities                              1,077               858
                                                                ---------         ---------

      TOTAL LIABILITIES                                           138,335           138,176

SHAREHOLDERS' EQUITY
Preferred shares, no par value:
   authorized 1,000,000 shares; none issued                           -0-               -0-

Common shares, no par value:
   authorized 5,000,000 shares;
   shares issued 952,200                                              -0-               -0-
Additional paid-in capital                                          6,013             6,013
Retained earnings                                                   8,246             8,488
Unearned Recognition and Retention
   Plan (RRP) shares                                                 (186)             (111)
Unearned Employee Stock Ownership
   Plan (ESOP) shares                                                (305)             (305)
Accumulated other comprehensive income (loss)                         (53)              (18)
Treasury shares, at cost; 167,800 shares                           (2,266)           (2,266)
                                                                ---------         ---------
      TOTAL SHAREHOLDERS' EQUITY                                   11,691            11,559
                                                                ---------         ---------
      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                $ 150,026         $ 149,735
                                                                =========         =========
</TABLE>


See accompanying notes.


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                        (Dollars in thousands)                    (Dollars in thousands)
                                                   (Unaudited)          (Unaudited)          (Unaudited)          (Unaudited)
                                                 3 Months Ended       3 Months Ended        9 Months Ended       9 Months Ended
                                               September 30, 2003   September 30, 2002    September 30, 2003   September 30, 2002
                                               ------------------   ------------------    ------------------   ------------------
<S>                                                 <C>                   <C>                  <C>                  <C>
INTEREST INCOME
Loans                                               $2,229                 $2,298               $6,766               $6,785
Securities                                              39                     49                  104                  473
Federal funds sold                                       9                      7                   13                   17
Dividends on Federal Home Loan Bank stock               23                     25                   66                   73
Deposits with financial institutions                     1                      7                    3                   10
                                                    ------                 ------               ------               ------

   TOTAL INTEREST INCOME                             2,301                  2,386                6,952                7,358

INTEREST EXPENSE
Deposits                                               631                    981                2,041                3,075
Borrowings                                             502                    506                1,497                1,510
                                                    ------                 ------               ------               ------

   TOTAL INTEREST EXPENSE                            1,133                  1,487                3,538                4,585
                                                    ------                 ------               ------               ------

   NET INTEREST INCOME                               1,168                    899                3,414                2,773
Provision for loan losses                              200                     52                  400                  301
                                                    ------                 ------               ------               ------

   NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                           968                    847                3,014                2,472

NONINTEREST INCOME
Service charges on deposits                              9                      9                   28                   27
Net realized gains on sales of
   available-for-sale securities                         0                     61                   17                  319
Life insurance                                          34                     41                  104                  118
Other                                                    3                    125                   53                  376
                                                    ------                 ------               ------               ------

    TOTAL NONINTEREST INCOME                            46                    236                  202                  840

NONINTEREST EXPENSE
Salaries and employee benefits                         411                    476                1,215                1,461
Net occupancy expense                                   81                     93                  274                  277
Equipment expense                                       60                     60                  165                  189
Data processing fees                                    62                     61                  174                  183
Professional fees                                       58                     78                  256                  270
Franchise taxes                                         35                     36                  110                  108
Other                                                   91                    151                  313                  472
                                                    ------                 ------               ------               ------

   TOTAL NONINTEREST EXPENSE                           798                    955                2,507                2,960
                                                    ------                 ------               ------               ------

   NET INCOME BEFORE FEDERAL
   INCOME TAX EXPENSE                                  216                    128                  709                  352
Provision for income tax expense                        66                      1                  211                   21
                                                    ------                 ------               ------               ------

   NET INCOME                                       $  150                 $  127               $  498               $  331
                                                    ======                 ======               ======               ======

Earnings per common share -- basic                  $ 0.20                 $ 0.17               $ 0.66               $ 0.45
Earnings per common share -- diluted                $ 0.20                 $ 0.17               $ 0.65               $ 0.45
</TABLE>


See accompanying notes

                                       4
<PAGE>
                         HOME CITY FINANCIAL CORPORATION
      CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                             (DOLLARS IN THOUSANDS)
                              (UNAUDITED FOR 2003)

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

<S>                             <C>       <C>        <C>         <C>          <C>         <C>         <C>         <C>
Balance, January 1, 2003        952,200   $ 6,013    $  8,246    $   (111)    $ (305)     $ (18)      $ (2,266)   $11,559

Comprehensive income

   Net income                                             498                                                         498
   Change in unrealized
      gain (loss) on
      securities
      available for
      sale, net of
      reclassification
      adjustment and tax
      effect                                                                                 (35)                     (35)
                                                                                                                  -------
      Total comprehensive
        income                                                                                                        463
                                                                                                                  -------
Dividends on common
   stock, $.33 per share                                 (256)                                                       (256)
Purchase of shares for RRP                                            (84)                                            (84)
Amortization of unearned
  compensation expense                                                  9                                               9
                                -------   -------    --------    --------     ------      -----       --------    -------

Balance, September 30, 2003     952,200   $ 6,013    $  8,488    $   (186)    $ (305)     $ (53)      $ (2,266)   $11,691
                                =======   =======    ========    ========     ======      =====       ========    =======
</TABLE>


See accompanying notes.

                                       5
<PAGE>

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

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                         (Dollars in thousands)
                                                                                    (Unaudited)           (Unaudited)
                                                                                  9 Months ended        9 Months ended
                                                                                   September 30,         September 30,
                                                                                        2003                 2002
                                                                                  --------------        --------------
<S>                                                                               <C>                  <C>
OPERATING ACTIVITIES
Net income                                                                            $    498             $    331
   Items not requiring (providing) cash
      Depreciation and amortization                                                        178                  181
      Provision for loan losses                                                            400                  301
      Amortization of premiums and discounts on securities                                  14                   76
      Deferred income taxes                                                                (86)                (294)
      Increase in cash surrender value of life insurance                                   (93)                (100)
      Employees Stock Ownership Plan compensation expense                                   63                   72
      Recognition and Retention Plan compensation expense                                    5                   48
      Net realized gains on available-for-sale securities                                  (17)                (319)
      FHLB stock dividends                                                                 (66)                 (74)

   Changes in
      Interest receivable                                                                    1                   86
      Other assets                                                                         151                  (11)
      Interest payable and other liabilities                                               280                   57
                                                                                      --------             --------

         NET CASH PROVIDED BY OPERATING ACTIVITIES                                       1,328                  354
                                                                                      --------             --------

INVESTING ACTIVITIES
   Purchase of available-for-sale securities                                            (2,609)             (18,909)
   Proceeds from payments and maturities of securities available-for-sale                2,225                2,006
   Proceeds from sales of available-for-sale securities                                  1,788               19,296
   Net change in loans                                                                     (75)              (6,379)
   Purchases of premises and equipment                                                      (5)                  (8)
                                                                                      --------             --------

         NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES                                1,324               (3,994)
                                                                                      --------             --------

FINANCING ACTIVITIES
   Net increase in demand deposits, money market, NOW and savings accounts              18,079                9,120
   Net decrease in certificates of deposit                                             (15,368)              (5,728)
   Proceeds from Federal Home Loan Bank advances                                         5,750                1,000
   Repayment of Federal Home Loan Bank advances                                         (8,521)                (290)
   Repayment of long-term debt                                                             -0-                   (4)
   Net activity RRP common shares                                                          (75)                  10
   Dividends paid                                                                         (256)                (257)
   Net decrease in advances from borrowers for taxes and insurance                         (61)                 (34)
                                                                                      --------             --------

         NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES                                 (452)               3,817
                                                                                      --------             --------

INCREASE IN CASH AND CASH EQUIVALENTS                                                    2,200                  177

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                                              $  8,261             $  5,187
                                                                                      ========             ========
</TABLE>


See accompanying notes.

                                       6
<PAGE>

                         HOME CITY FINANCIAL CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    SEPTEMBER 30, 2003, AND DECEMBER 31, 2002

                                   (UNAUDITED)


================================================================================

NOTE 1.   BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited consolidated financial
statements contain all adjustments necessary for a fair presentation of Home
City Financial Corporation's ("Company" or "HCFC") financial position as of
September 30, 2003, and December 31, 2002, and the consolidated results of
operations and the cash flows for the nine months ended September 30, 2003 and
2002. Those adjustments consist only of normal recurring adjustments. Certain
information and note disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles ("GAAP")
have been omitted pursuant to the rules and regulations of the Securities and
Exchange Commission. It is suggested that these consolidated financial
statements be read in conjunction with the consolidated financial statements and
notes thereto included in the Company's Annual Report on Form 10-KSB. The
results of operations for the nine months ended September 30, 2003, are not
necessarily indicative of the results, which may be expected for the entire
fiscal year.

NOTE 2.   ALLOWANCE FOR LOAN LOSSES

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

<TABLE>
<CAPTION>
                                                   (Dollars in thousands)
                                                  Nine               Nine
                                               Months Ended      Months Ended
                                              September 30,      September 30,
                                                  2003               2002
                                              -------------      -------------

<S>                                               <C>               <C>
          Balance, beginning of period            $ 503             $ 517
          Provision for loan losses                 400               301
          Charge-offs                              (398)               (6)
          Recoveries                                 15                23
                                                  -----             -----

          Balance, end of period                  $ 912             $ 443
                                                  =====             =====
</TABLE>


NOTE 3.   ADVANCES FROM FEDERAL HOME LOAN BANK

Borrowings at September 30, 2003, consisted of one short-term advance for
$562,000 and twenty long-term advances totaling $34.9 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 September 30, 2003                   At December 31, 2002
                        ------------------------------------------   ---------------------------------------
                                      Range of        Weighted-                  Range of         Weighted-
                                      interest         average                   interest          average
                        Amount         rates        interest rate    Amount        rates        interest rate
                        -------       --------      -------------    -------    -------------   -------------
<S>                     <C>            <C>              <C>          <C>        <C>     <C>           <C>
Due within
 one year               $   562        6.51%            6.51%        $ 4,914    1.44% - 6.05%         1.46%

After one but
 within five
 years                  $ 4,886      3.05%-8.35%        5.63%        $ 3,401     6.35%-8.35%          6.74%

After five
 years                  $29,980      3.30%-6.84%        5.61%        $29,884     3.30%-6.84%          5.61%
</TABLE>


NOTE 4.   REGULATORY CAPITAL

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


<TABLE>
<CAPTION>
                                                     (Dollars in thousands)
                                                                                     To be
                                                                               Categorized as "Well
                                                                                Capitalized" Under
                                                         For Capital            Prompt Corrective
                                        Actual         Adequacy Purposes        Action Provisions
                                 Amount     Ratio      Amount      Ratio       Amount        Ratio
                                -------     -----      ------      -----      -------        -----

<S>                             <C>         <C>        <C>          <C>       <C>            <C>
Total Risk-Based Capital
  (To Risk-Weighted Assets)     $12,386     11.6%      $8,524       8.0%      $10,656        10.0%

Tier I Capital
  (To Risk-Weighted Assets)     $11,474     10.8%         N/A       N/A       $ 6,393         6.0%

Tier I Capital
  (To Total Assets)             $11,474      7.6%      $6,004       4.0%      $ 7,505         5.0%
                                                                      *

Tangible Capital
  (To Total Assets)             $11,474      7.6%      $2,252       1.5%          N/A         N/A

</TABLE>

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


                                       8
<PAGE>

NOTE 5.   EARNINGS PER SHARE

Earnings per share ("EPS") is computed in accordance with Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share." Common stock
equivalents include shares held by the Company's Employee Stock Ownership Plan
("ESOP") that are committed for release and not subject to a loan pledge
agreement, shares awarded but not released under the Company's Recognition and
Retention Plan ("RRP") and stock options granted under the Stock Option Plan
("SOP"). Unearned ESOP and RRP shares which have not vested have been excluded
from the computation of average shares outstanding. Following is a
reconciliation of the numerators and denominators of the basic and diluted EPS
calculations.

<TABLE>
<CAPTION>
                                                        For the Three Months Ended
                                                            September 30, 2003
                                                 -------------------------------------
                                                                 Weighted-
                                                                  average       Per
                                                   Income         Shares       Share
                                                 (Numerator)   (Denominator)   Amount
                                                 -----------   -------------   ------
<S>                                               <C>             <C>         <C>
Basic EPS
   Income available to common shareholders        $150,215        747,960      $0.20

   Effective of dilutive securities
   Stock options                                         0         17,705
                                                  --------        -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                            $150,215        765,665      $0.20
</TABLE>


<TABLE>
<CAPTION>
                                                        For the Three Months Ended
                                                            September 30, 2002
                                                 -------------------------------------
                                                                 Weighted-
                                                                  average       Per
                                                   Income         Shares       Share
                                                 (Numerator)   (Denominator)   Amount
                                                 -----------   -------------   ------
<S>                                               <C>             <C>           <C>
Basic EPS
   Income available to common shareholders        $127,588        740,936       $0.17

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

Diluted EPS
   Income available to common shareholders +
   assumed conversions                            $127,588        740,936       $0.17
</TABLE>


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

                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                       For the Nine Months Ended
                                                           September 30, 2003
                                                 --------------------------------------
                                                                 Weighted-
                                                                  average         Per
                                                    Income         Shares        Share
                                                 (Numerator)    (Denominator)    Amount
                                                 -----------    -------------    ------
<S>                                               <C>              <C>           <C>
Basic EPS
   Income available to common shareholders        $498,654         750,665       $0.66

   Effective of dilutive securities
   Stock options                                         0          11,608
                                                  --------         -------

Diluted EPS
   Income available to common shareholders +
   assumed conversions                            $498,654         762,273       $0.65
</TABLE>


<TABLE>
<CAPTION>
                                                       For the Nine Months Ended
                                                           September 30, 2002
                                                 --------------------------------------
                                                                 Weighted-
                                                                  average         Per
                                                    Income         Shares        Share
                                                 (Numerator)    (Denominator)    Amount
                                                 -----------    -------------    ------
<S>                                                <C>             <C>           <C>
Basic EPS
   Income available to common shareholders         $331,895        740,843       $0.45

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

Diluted EPS
   Income available to common shareholders +
   assumed conversions                             $331,895        740,843       $0.45
</TABLE>


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


                                       10
<PAGE>

NOTE 6.   STOCK OPTIONS

The Company accounts for its stock option plan under the 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 Nine Months
                                                     ended September 30         ended September 30
                                                    --------------------        ------------------
                                                     2003         2002           2003        2002
                                                    ------       ------         ------      ------
<S>                                                 <C>          <C>            <C>         <C>
Net income, as reported                             $  150       $  127         $  498      $  331
Less: Total stock-based employee compensation
      cost determined under the fair value based
      method, net of income taxes                       (2)         (17)            (4)        (52)
                                                    ------       ------         ------      ------

Pro forma net income                                $  148       $  110         $  494      $  279
                                                    ======       ======         ======      ======

Earnings per share:
      Basic -- as reported                          $ 0.20       $ 0.17         $ 0.66      $ 0.45
                                                    ======       ======         ======      ======
      Basic -- pro forma                            $ 0.20       $ 0.15         $ 0.66      $ 0.38
                                                    ======       ======         ======      ======
      Diluted -- as reported                        $ 0.20       $ 0.17         $ 0.65      $ 0.45
                                                    ======       ======         ======      ======
      Diluted -- pro forma                          $ 0.19       $ 0.15         $ 0.65      $ 0.38
                                                    ======       ======         ======      ======
</TABLE>


NOTE 7.   RECENT ACCOUNTING PRONOUNCEMENTS

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

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

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


                                       11
<PAGE>

In January 2003, the FASB issued FIN 46, "Consolidation of Variable Interest
Entities". FIN 46 requires a variable interest entity to be consolidated by a
company if that company is subject to a majority of the risk of loss from the
variable interest entity's activities or entitled to receive majority of the
entity's residual returns, or both. FIN 46 also requires disclosures about
variable interest entities that a company is not required to consolidate, but in
which it has a significant variable interest. The consolidation requirements of
FIN 46 apply immediately to variable interest entities created after January 31,
2003. The consolidation requirements apply to existing entities in the first
fiscal year or interim period beginning after June 15, 2003. Certain of the
disclosure requirements apply in all financial statements issued after January
31, 2003, regardless of when the variable interest entity was established. FIN
46 is not expected to have a material effect on the Company's consolidated
financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities". This Statement amends and
clarifies financial accounting and reporting for derivative instruments,
including certain embedded derivative, and for hedging activities under SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities". This
Statement amends SFAS No. 133 to reflect the decisions made as part of the
Derivatives Implementation Group (DIG) and in other FASB projects or
deliberations. SFAS No. 149 is effective for contracts entered into or modified
after June 30, 2003, and for hedging relationships designated after June 30,
2003. Adoption of this standard is not expected to have a material effect on the
Company's consolidated financial statements.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity". This Statement
establishes standards for how an entity classifies and measures certain
financial instruments with characteristics of both liabilities and equity. This
Statement is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective at the beginning of the first interim
period beginning after June 15, 2003. Adoption of this standard did not have a
material effect on the Company's consolidated financial statements.


                                       12
<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


                                       13
<PAGE>

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

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

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

CRITICAL ACCOUNTING POLICIES

     The accounting and reporting policies of Home City are in accordance with
accounting principles generally accepted in the United States and conform to
general practices within the banking industry. Home City's significant
accounting policies are described in detail in the notes to Home City's
consolidated financial statements for the year ended December 31, 2002. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions. The
financial position and results of operations can be affected by these estimates
and assumptions and are integral to the understanding of reported results.
Critical accounting policies are those policies that management believes are the
most important to the portrayal of Home City's financial condition and results,
and they require management to make estimates that are difficult, subjective, or
complex.

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

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

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

                         CHANGES IN FINANCIAL CONDITION

     At September 30, 2003, the consolidated assets of the Company totaled
$150.0 million, an increase of $291,000, or 0.19%, from $149.7 million at
December 31, 2002. The increase in total assets


                                       14
<PAGE>

was primarily the result of an increase in cash and cash equivalents of $2.2
million which was partially offset by a decrease in available-for-sale
securities of $1.4 million and a decrease of $325,000 in net loans receivable.

     Net loans receivable decreased by $1.5 million, or 1.13%, to $127.1 million
during the three months ended at September 30, 2003, slightly offsetting the
$1.1 million increase in the first half of 2003. The net decrease in loans
outstanding since December 31, 2002, was $325,000, or 0.26%. The decrease was
attributed to a decrease in mortgage loan volume.

     Total cash and cash equivalents increased by $3.4 million during the third
quarter of 2003, more than offsetting the $1.2 million decrease experienced in
the first half of 2003. Interest bearing demand deposits totaled $2.2 million, a
decrease of $1.1 million, or 32.68%, from $3.3 million at December 31, 2002.
Federal funds sold increased by $3.5 million, or 216.05%, from $1.6 million at
December 31, 2002, with a management focus on liquidity. Total cash and balances
due from banks decreased by $212,000 from the December 31, 2002, balances.

     Available-for-sale securities decreased $1.4 million, or 21.91%, from $6.4
million at December 31, 2002, to $5.0 million at September 30, 2003, with
proceeds of the net sales positioned short in federal funds sold.

     Deposit balances remained flat during the third quarter of 2003, but had
grown $2.7 million, or 2.74%, since December 31, 2002. While savings, NOW and
money market deposits increased by $18.0 million, or 60.84%, time deposits
decreased by $15.4 million, or 24.00%, representing some of the shift to the
tiered Prime Statement savings product.

     Advances from the FHLB decreased $2.7 million, or 7.25%, from $38.2 million
at December 31, 2002, to $35.4 million at September 30, 2003. Funds obtained
from additional deposits and sales of securities were used for repayment of
advances.

     Total shareholders' equity increased $132,000, or 1.14%, from December 31,
2002, to September 30, 2003. This increase was primarily the result of the
$498,000 of the first three quarters of 2003 income together with the $9,000
amortization of unearned compensation expense and partially offset by the
$35,000 decrease in accumulated other comprehensive income, the $84,000 purchase
of shares for the RRP and the $256,000 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


                                       15
<PAGE>

withdrawals or other short-term funding needs. The liquidity ratio is the
percentage that this average daily balance of liquid assets bears to the sum of
the Bank's average daily balance of net withdrawable deposit accounts and
borrowings payable in one year or less. At September 30, 2003, the Bank's
regulatory liquidity ratio was 11.40%. At such date, the Bank had commitments to
originate loans totaling $13.7 million and no commitments to purchase or sell
loans. The Bank considers its liquidity and capital reserves sufficient to meet
its outstanding short- and long-term needs. Adjustments to liquidity and capital
reserves may be necessary, however, if loan demand increases more than expected
or if deposits decrease substantially.

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

     On February 24, 2003, the Board of Directors of the Company declared a
quarterly cash dividend in the amount of $.11 per share to each shareholder of
record on March 7, 2003, which was paid on March 17, 2003. On May 27, 2003, the
Board of Directors of the Company declared a quarterly cash dividend in the
amount of $.11 per share to each shareholder of record on June 9, 2003, which
was paid on June 16, 2003. On August 25, 2003, the Board of Directors of the
Company declared a quarterly cash dividend in the amount of $.11 per share to
each shareholder of record on September 8, 2003, which was paid on September 15,
2003.

                              RESULTS OF OPERATIONS

COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

     GENERAL. Net income increased $23,000, or 18.11%, from $127,000 for the
three months ended September 30, 2002, to $150,000 for the three months ended
September 30, 2003. The increase was primarily attributed to $269,000 more in
net interest income and a decrease of $157,000 in noninterest expense, all of
which were partially offset by an increase of $148,000 in the provision for loan
losses, a $190,000 decrease in noninterest income and an increase of $65,000 in
the provision for federal income tax expense.

     INTEREST INCOME. The $5.0 million increase in average earning assets offset
by a 49 basis point decrease in yields resulted in a decrease in interest income
of $85,000, or 3.56%, for the three months ended September 30, 2003, compared to
the same period in 2002. The decrease in yields caused a decline of $218,000 in
interest income, which was partially offset by $133,000 which was due to the
increase in the amount of average interest-earning assets.

     INTEREST EXPENSE. Interest expense on deposit liabilities decreased
$350,000, or 35.68%, for the three months ended September 30, 2003, as compared
to the same period in 2002. Total average deposits increased by $1.4 million
comparing the quarters ended September 30, 2003 and 2002, and the average
interest rate paid on interest-bearing deposits decreased by 151 basis points
from 4.14% for the three months ended September 30, 2002, to 2.63% for the same
period in 2003. The average balance of FHLB advances decreased slightly from
$35.4 million for the three-month period ended September 30, 2002, to $35.3
million for the same period in 2003 and, coupled with a four basis point
decrease in rates paid, resulted in a decrease in interest on FHLB advances of
$4,000 for the three months ended September 30, 2003, compared to the same
period in 2002.

     PROVISION FOR LOAN LOSSES. The provision for loan losses was $200,000, and
there was $3,000 in net charge-offs during the three months ended September 30,
2003, compared to a $52,000 provision and $55,000 of net charge-offs during the
three months ended September 30, 2002. The provision was


                                       16
<PAGE>

increased based upon the results of the ongoing loan reviews and the composition
of the loan portfolio with deteriorating economic factors playing a major part
in the increased provision.

     NONINTEREST INCOME. Noninterest income decreased by $190,000 for the three
months ended September 30, 2003, compared to the same period in 2002. Last year
was inclusive of $61,000 in net gains on sales of securities as well as income
from the discontinued operations of Home City Insurance Agency Inc. Additionally
a $7,000 decrease in income from life insurance contracts, comprised the
remainder of the decrease.

     NONINTEREST EXPENSE. Noninterest expense decreased $157,000, or 16.44%, to
$798,000 for the three months ended September 30, 2003, from $955,000 in the
comparable period in 2002. Of this decrease, $65,000 was attributable to a
decrease in salaries and employee benefits expense reflecting staffing cost
reductions with most of the remaining decrease resulting from the elimination of
operating costs relative to the insurance agency. The annualized ratio of
noninterest expense to average total assets was 2.14% and 2.59% for the three
months ended September 30, 2003 and 2002, respectively.

     INCOME TAXES. The provision for income taxes increased $65,000 for the
three months ended September 30, 2003, compared with the prior year, primarily
as a result of the $88,000 increase in net income before federal income tax
expense and the composition of the taxable and non-taxable income for the
quarter.

COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002

     GENERAL. Net income increased $167,000, or 50.45%, from $331,000 for the
nine months ended September 30, 2002, to $498,000 for the nine months ended
September 30, 2003. This increase was primarily attributed to an increase of
$641,000 in net interest income and a decrease of $453,000 in noninterest
expense which were partially offset by an increase in provision for loan losses
of $99,000 and the decrease of $638,000 in noninterest income and the $190,000
increase in federal income tax expense.

     INTEREST INCOME. The increase in interest income generated by the $3.5
million increase in average earning assets was more than offset by the decrease
in interest income caused by the 56 basis point decrease in yield on earning
assets. Interest income decreased by a net of $406,000, or 5.52%, for the nine
months ended September 30, 2003, as compared to the same nine-month period in
2002. A decrease of $702,000 in interest income is attributable to the yield
decreases on earning assets, which more than offset the $296,000 increase in
interest income attributed to increases in the volume of earning assets for the
nine-month period. The decrease is mainly attributed to the 328 basis point
decline in mortgage-backed securities yields resulting in an $84,000 decrease in
the income on mortgage-backed securities together with a decrease of $220,000 in
interest income as a result of decreased volume of mortgage-backed securities.

     INTEREST EXPENSE. Interest expense on deposit liabilities decreased $1.0
million, or 33.63%, for the nine months ended September 30, 2003, as compared to
the same period in 2002. Total average interest-bearing deposits increased by
$454,000 comparing the nine months ended September 30, 2003 to 2002, but the
average interest rate paid on interest-bearing deposits decreased by 149 basis
points from 4.40% for the nine-month period ended September 30, 2002, to 2.91%
for the same period ended September 30, 2003. The average balance of FHLB
advances increased from $36.2 million for the nine-month period ending September
30, 2002, to $36.7 million for the same period ended September 30, 2003, but the
13 basis point reduction in average cost from 5.56% down to 5.43% resulted in a
decrease in interest on FHLB advances $13,000 for the nine-month period ended
September 30, 2003, compared to the same period ended September 30, 2002. Of the
overall decrease of $1.0 million in interest expense, $726,000 is attributable
to rates paid, or yields, on interest costing liabilities, and $321,000 is
attributed to volume decreases.


                                       17
<PAGE>

     PROVISION FOR LOAN LOSSES. The provision for loan losses was $400,000 and
there were net recoveries of $9,000 during the nine months ended September 30,
2003, compared to a $301,000 provision and net charge-offs of $375,000 during
the nine months ended September 30, 2002. The provision was increased based upon
the results of the ongoing loan reviews and in light of economic conditions in
our demographic area.

     NONINTEREST INCOME. Noninterest income decreased by $638,000 for the nine
months ended September 30, 2003, compared to the same period in 2002. The
decrease was due to last year's noninterest income including $319,000 in net
gains on the sale of securities versus this year's comparable period only having
$17,000 of such net gains. Last year's nine months of other income had the
income from the operations of Home City Insurance Agency, Inc., which operations
have been discontinued.

     NONINTEREST EXPENSE. Noninterest expense decreased $453,000, or 15.30%, to
$2.5 million for the nine months ended September 30, 2003, from $3.0 million in
the comparable period in 2002. Of this decrease, $246,000 was attributable to a
decrease in compensation and benefit expense in 2003, reflecting reduced
staffing and related costs. Other expense decreased $159,000, or 33.69%, as a
result of elimination of operating costs relative to the insurance agency. The
annualized ratio of noninterest expense to average total assets was 2.23% and
2.70% for the nine months ended September 30, 2003 and 2002, respectively.

     INCOME TAXES. The provision for income taxes increased $190,000 for the
nine months ended September 30, 2003, compared with the same period in the prior
year, primarily as a result of the $357,000 increase in net income before
federal income tax expense and the composition of the taxable and non-taxable
income for the nine-month period.


                                       18
<PAGE>

                                     ITEM 3.

                             CONTROLS AND PROCEDURES


================================================================================

The registrant's principal executive officer and principal financial officer
have concluded, based upon their evaluation of the registrant's disclosure
controls and procedures, that the registrant's disclosure controls and
procedures were effective as of September 30, 2003. There was no change in the
registrant's internal control over financial reporting during the quarter ended
September 30, 2003, that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.


                                       19
<PAGE>

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



ITEM 1 - LEGAL PROCEEDINGS

     None

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

     Not Applicable

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

     Not Applicable

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

     Not Applicable

ITEM 5 - OTHER INFORMATION

     Not Applicable

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

     (a)  The following exhibits are attached:

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

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

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

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

     (b)  A Form 8-K was filed for the event on July 31, 2003, regarding the
          issuance of a News Release announcing financial results for the second
          quarter of 2003.


                                       20
<PAGE>

SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 1933,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                          HOME CITY FINANCIAL CORPORATION


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

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



                                       21