U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-QSB

(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997

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

                       Commission file number - 333-12501

                         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)

         63 West Main Street
          Springfield, Ohio                                45502
________________________________________                 __________
(Address of principal executive offices)                 (Zip Code)

                                 (513) 324-5736
                          _____________________________
                           (Issuer's telephone number)

                                       N/A
              ____________________________________________________
              (Former name, former address and former fiscal year,
                          if changed since last report)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes __X*__     No_____

As of April 30,  1997,  876,024  shares of common stock of the  Registrant  were
outstanding. There were no preferred shares outstanding.

*The Registrant's  Registration  Statement on Form S-1 was declared effective on
November 12,  1996.  Prior to December 30,  1996,  the  Registrant  conducted no
business  except the offering of its shares and preparation to acquire Home City
Federal Savings Bank of Springfield. The financial information contained in this
Form 10-QSB for periods prior to December 30, 1996 is,  therefore,  that of Home
City Federal Savings Bank of Springfield.


<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
           March 31, 1997 and June 30, 1996

           Condensed consolidated statements of income --              4
           Three months and nine months ended
           March 31, 1997 and 1996

           Condensed consolidated statements of cash flows --          5
           Nine months ended March 31, 1997 and 1996

           Notes to condensed consolidated financial                   6
           statements -- March 31, 1997 and June 30, 1996

Item 2.    Management's Discussion and Analysis of Financial           7
           Condition and Results of Operations

PART II    OTHER INFORMATION

Item 1.    Legal Proceedings                                          10

Item 2.    Changes in Securities                                      10

Item 3.    Defaults upon Senior Securities                            10

Item 4.    Submission of Matters to a Vote of Security Holders        10

Item 5.    Other Information                                          10

Item 6.    Exhibits and Reports on Form 8-K                           10

Signatures                                                            11

                                      -2-
<PAGE>
<TABLE>

                         HOME CITY FINANCIAL CORPORATION
                                Springfield, Ohio
                           CONSOLIDATED BALANCE SHEETS


                                                                          Dollars in thousands
                                                                       __________________________
                                                                       (Unaudited)    (Unaudited)
                                                                        March 31,      June 30,
                                                                          1997           1996
<S>                                                                      <C>            <C>    
Assets
        Cash and cash equivalents
        Cash and due from banks                                          $  1,136       $   855
        Interest-bearing time deposits                                        730           588
        Federal funds sold                                                    200           400
                                                                         --------       -------
               Total cash and cash equivalents                              2,066         1,843
Time deposits with original maturities 90 days or more                        361         1,061
Investment securities available-for-sale, at fair value                     9,188         2,188
Mortgage-backed securities available-for-sale, at fair value                  768         2,975
Loans, net                                                                 53,431        45,225
Accrued interest receivable                                                   355           273
Properties and equipment                                                      479           488
Investments required by law - stock in Federal Home Loan Bank                 415           394
Cash surrender value of life insurance                                      1,083         1,044
Other assets                                                                   89           237
                                                                         --------       -------
               Total assets                                              $ 68,235       $55,728
                                                                         ========       =======
Liabilities and Shareholders' Equity
Deposits
        Demand accounts                                                  $    971       $   302
        NOW accounts                                                          485           395
        Savings accounts                                                    7,729         9,561
       Time deposits, $100,000 or more                                      5,651         7,216
        Other time deposits                                                34,959        29,700
                                                                         --------       -------

               Total deposits                                              49,795        47,174

Advances from Federal Home Loan Bank                                        4,005         2,903
Accrued interest payable                                                       53            49
Advance payments by borrowers for taxes and insurance                          47            20
Deferred income taxes                                                          63            68
Other liabilities                                                             211           116
                                                                         --------       -------

               Total liabilities                                           54,174        50,330
                                                                         --------       -------
Shareholders' Equity
Common shares, 5,000,000 authorized w/o par value;
    952,200 shares issued                                                       0             0
Additional paid-in capital                                                  9,085             0
Retained earnings, substantially restricted                                 5,558         5,271
Unrealized gain on securities available-for-sale, net of applicable
        deferred income taxes                                                 180           127
Common shares acquired by Employee Stock Ownership Plan                      (762)            0
                                                                         --------       -------
               Total shareholders' equity                                  14,061         5,398
                                                                         --------       -------

               Total liabilities and shareholders' equity                $ 68,235       $55,728
                                                                         ========       =======

</TABLE>

The accompanying notes are an integral part of these financial statements.


                                      -3-
<PAGE>
<TABLE>

                         HOME CITY FINANCIAL CORPORATION
                                Springfield, Ohio
                        CONSOLIDATED STATEMENTS OF INCOME


                                                                  Dollars in thousands, except per share amounts
                                                                  ______________________________________________
                                                                   (Unaudited)                   (Unaudited)
                                                                  3 Months Ended                9 Months Ended
                                                                     March 31,                     March 31,
                                                                1997          1996             1997         1996
                                                              --------      --------         --------     --------

<S>                                                            <C>           <C>             <C>           <C>   
Interest income
Interest and fees on loans                                     $ 1,203       $1,048          $ 3,470       $3,021
Interest on investment securities                                   92           33              173          106
Interest on mortgage-backed securities                              25           56              123          157
Interest on deposits in banks and federal funds sold                68           14              130           38
                                                               -------       ------          -------       ------
               Total interest income                             1,388        1,151            3,896        3,322
                                                               -------       ------          -------       ------
                                                                                        
Interest expense                                                                        
Interest on interest-bearing checking accounts                       3            1                8            2
Interest on savings deposits                                        48           59              169          192
Interest on certificates of deposit                                616          552            1,825        1,560
Interest on advances from Federal Home Loan Bank                    66           41              167          132
                                                               -------       ------          -------       ------
        Total interest expense                                     733          653            2,169        1,886
                                                               -------       ------          -------       ------
                                                                                        
        Net interest income                                        655          498            1,727        1,436
                                                                                        
Provision for loan losses                                           20            0               57            0
                                                               -------       ------          -------       ------
        Net interest income after provision for loan loss          635          498            1,670        1,436
                                                                                        
Noninterest income                                                                      
Service charges on deposit accounts                                  2            1                5            2
Life insurance                                                      15           15               45           30
Loss on sale of mortgage-backed securities                         (19)           0              (19)           0
Other income                                                         5            1                7            3
                                                               -------       ------          -------       ------
        Total noninterest  income                                    3           17               38           35
                                                               -------       ------          -------       ------
                                                                                        
Noninterest expense                                                                     
Salaries and employee benefits                                     156          133              402          389
Supplies, telephone and postage                                     15            8               37           31
Occupancy and equipment                                             25           27               75           74
FDIC deposit insurance                                               8           24              319           70
Data processing                                                     15           14               49           39
Legal, accounting and examination                                   53           26              104           88
Franchise tax                                                       45           19               83           53
Other expense                                                       54           45              136          157
                                                               -------       ------          -------       ------
        Total noninterest expense                                  371          296            1,205          901
                                                               -------       ------          -------       ------
                                                                                        
Income before income taxes                                         267          219              503          570
                                                                                        
Federal income tax expense                                          89           70              141          184
                                                               -------       ------          -------       ------
               Net income                                      $   178       $  149          $   362       $  386
                                                               =======       ======          =======       ======
_____________________________________________________________________________________________________________________
Per share data:                                                                         
        Net income per share of common stock                   $  0.20          N/A          $  0.41          N/A
_____________________________________________________________________________________________________________________

The accompanying notes are an integral part of these financial statements.
</TABLE>

                                      -4-
<PAGE>
<TABLE>

                         HOME CITY FINANCIAL CORPORATION
                                Springfield, Ohio
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                        Dollars in thousands
                                                                        ____________________
                                                                            (Unaudited)
                                                                           9 Months Ended
                                                                              March 31,
                                                                         1997          1996
                                                                       --------      --------
<S>                                                                       <C>           <C>
Cash flows from operating activities:
        Net income                                                        362           386
        Adjustments to reconcile net income to net cash
           provided by operating activities:
               Premium amortization, net of discount accretion             18            29
               Provision for loan losses                                   57             0
               Depreciation                                                30            28
               Deferred income taxes                                       (5)           49
               Life insurance income, net of expense                      (39)          (11)
               Changes in operating assets and liabilities:
               Increase in accrued income receivable                      (82)          (92)
               (Increase) decrease in other assets                        148           (45)
               Increase (decrease) in accrued interest payable              4            (1)
               Increase in other liabilities                              100            18
                                                                     --------       -------

        Net cash provided by operating activities                         593           361
                                                                     --------       -------

Cash flows from investing activities:
        Net increase (decrease) in time deposits                          700            (1)
        Proceeds from maturities of held-to-maturity securities             0           500
        Purchase of available-for-sale securities                      (6,969)         (255)
        Proceeds from sale of mortgage-backed securities                1,891             0
        Payments on mortgage-backed securities                            253           427
        Purchase of loans                                                (375)            0
        Net change in loans                                            (7,891)       (6,810)
        Purchases of premises and equipment                               (21)          (51)
        Purchase of Federal Home Loan Bank stock                          (21)          (16)
        Purchase of life insurance contracts                                0        (1,020)
                                                                     --------       -------

        Net cash used in investing activities                         (12,433)       (7,226)
                                                                     --------       -------

Cash flows from financing activities:
        Net increase in deposits                                        2,621         6,195
        Proceeds from advances from Federal Home Loan Bank              1,825           900
        Payments on advances from Federal Home Loan Bank                 (723)       (1,061)
        Proceeds from sale of Common Stock                              8,313             0
        Net increase in advance payments by borrowers for
            taxes and insurance                                            27             7
                                                                     --------       -------

        Net cash provided by financing activities                      12,063         6,041
                                                                     --------       -------

        Net increase (decrease) in cash and cash equivalents              223          (824)
        Cash and cash equivalents at beginning of period                1,843         2,377
                                                                     --------       -------

        Cash and cash equivalents at end of period                   $  2,066       $ 1,553
                                                                     ========       =======


The accompanying notes are an integral part of these financial statements.
</TABLE>

                                      -5-
<PAGE>


                         HOME CITY FINANCIAL CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        March 31, 1997, and June 30, 1996




NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In September  1996, the Board of Directors of Home City Federal  Savings Bank of
Springfield  (the  "Company")  adopted a Plan of Conversion (the "Plan") whereby
the  Company  would  convert to the stock  form of  ownership,  followed  by the
issuance  of all the  Company's  outstanding  stock  to a newly  formed  holding
company,  Home City Financial  Corporation (the "Corporation").  Pursuant to the
Plan, the  Corporation  offered common shares for sale to certain  depositors of
the  Company 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
Corporation   which,   after   consideration  of  offering   expenses   totaling
approximately  $447,000  and  $762,000  in  shares  purchased  by the ESOP  (the
"Employee  Stock  Ownership  Plan"),  resulted in net  capital  proceeds of $8.3
million. Condensed financial statements of the Corporation are presented herein.
Future  references  are  made  either  to  the  Corporation  or the  Company  as
applicable.

The  Corporation  is a savings and loan holding  company  whose  activities  are
primarily  limited to holding the stock of the Company.  The Company  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 for  residential,  consumer and non- residential  purposes.  The Company'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 Company can be  significantly  influenced
by a number of environmental factors, such as governmental monetary policy, that
are outside of management control.

Earnings per common  share were  computed by dividing net income by the weighted
average number of shares  outstanding for both the three- and nine-month periods
ended March 31, 1997. The weighted average number of shares outstanding for both
the three- and nine-month periods ended March 31, 1997, were 876,024. Unreleased
ESOP  shares are not  considered  to be  outstanding  shares for the  purpose of
determining  the  weighted  average  number of shares used in the  earnings  per
common share calculation.

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.

NOTE B - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with  instructions  to Form 10-QSB and Article 10 of
Regulation S-X and Rule 310 of Regulation SB.  Accordingly,  they do not include
all  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments  considered  necessary for a fair  presentation  have been included.
Operating  results are not  necessarily  indicative  of the results  that may be
expected for the year ended June 30, 1997.


                                      -6-
<PAGE>


                         HOME CITY FINANCIAL CORPORATION

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

                            AND RESULTS OF OPERATIONS



        The following  focuses on the  consolidated  financial  condition of the
Corporation  at March 31, 1997,  compared to June 30,  1996,  and the results of
operations for the three- and nine-month periods ended March 31, 1997,  compared
to the same  periods in 1996.  The  purpose of this  discussion  is to provide a
better  understanding  of the  consolidated  financial  statements and footnotes
included  in the Form  10-QSB.  The  Corporation  is not aware of any  market or
institutional  trend,  events or uncertainties  that will have or are reasonably
likely to have a material effect on liquidity,  capital  resources or operations
except as discussed herein.  Other than as discussed herein,  the Corporation is
not aware of any current  recommendations by regulatory  authorities which would
have such effect if implemented.


                    Note Regarding Forward-Looking Statements

        In addition to historical  information  contained herein,  the following
discussion   contains   forward-looking   statements   that  involve  risks  and
uncertainties.  Economic  circumstances,  the  Corporation's  operations and the
Corporation's  actual results could differ significantly from those discussed in
the  forward-looking  statements.  Some  of the  factors  that  could  cause  or
contribute to such  differences are discussed herein but also include changes in
the economy and interest rates in the nation and the  Corporation's  market area
generally.  Some  of the  forward-looking  statements  included  herein  are the
statements regarding the allowance for loan losses.


                               Financial Condition

Liquidity

        Liquidity  relates to the Company's  ability to meet cash demands of its
customers and their credit needs. Liquidity is provided by the Company's ability
to readily  convert assets to cash and readily  marketable,  short-term  assets,
such as federal funds sold and deposits in other banks.

        Cash and cash equivalents,  time deposits with original maturities of 90
days or more,  investment  securities  available-for-sale,  and  mortgage-backed
securities available-for-sale were $12.38 million at March 31, 1997, an increase
of $4.32 million from the June 30, 1996 total. Such increase was attributable to
the net inflow of funds from the  conversion  and related  stock  offering.  The
Company's  liquidity  ratio  was 15.8% at March 31,  1997,  which  exceeded  the
regulatory requirement of 5%.

        Liability  liquidity relates to the Company's ability to retain existing
deposits,  obtain new deposits  and borrow in the  marketplace.  Total  deposits
increased  $2.62  million for the nine months ended March 31, 1997,  compared to
June 30, 1996.  During the first nine months of fiscal 1997, a decrease of $1.83
million in  savings  accounts  and $1.57  million  in Jumbo or  negotiable  rate
certificates  (i.e.,  time  deposits  of $100  thousand  or more) were offset by
increases in transaction  accounts (i.e., demand deposit and negotiable order of
withdrawal,  or "NOW," accounts)  of $0.76  million  and other time  certificate
increases of $5.26 million.

        Access to funds from the Federal Home Loan Bank (the "FHLB") in the form
of  short-  and  long-term  advances  is a  supplemental  source of cash to meet
liquidity needs.

Capital Resources

        Shareholders'  equity totaled $14.06 million at March 31, 1997, compared
to $5.40  million at June 30,  1996.  This  increase  was  primarily  due to the
additional  paid-in  capital as a result of the  aforementioned  conversion  and

                                      -7-
<PAGE>


related  public   offering.   A  net  unrealized   holding  gain  on  securities
available-for-sale  of $53,000 also contributed to the increase. As of March 31,
1997,  the  Corporation's  ratio of  shareholders'  equity to assets was 20.61%,
compared to 9.69% at June 30, 1996.

Regulatory Capital Requirements

        The Company is required by applicable law and regulation to meet certain
minimum capital  requirements.  These  requirements call for tangible capital of
1.5% of adjusted  total assets,  core capital (which for the Company is equal to
tangible capital) of 3% of adjusted total assets,  and risk-based capital (which
for the Company consists of core capital and general valuation allowances) equal
to 8% of risk-weighted  assets. Assets and certain  off-balance-sheet  items are
weighted  at  percentage  levels  ranging  from 0% to 100%  depending  on  their
relative risk.

        The  following  table  summarizes  the  Company's   regulatory   capital
requirements and actual capital at March 31, 1997:

<TABLE>
                                                               Excess of actual capital
                   Actual Capital       Current requirements  over current requirements    Applicable
                 Amount     Percent      Amount     Percent       Amount     Percent      asset total
                 ------     -------      ------     -------       ------     -------      -----------
                                                   (Dollars in thousands)

<S>             <C>          <C>         <C>          <C>         <C>         <C>           <C>    
Tangible
   Capital      $10,147      15.59%      $  976       1.50%       $9,171      14.09%        $65,098

Core
   Capital       10,147      15.59        1,953       3.00         8,194      12.59          65,098

Risk-based
   Capital       10,568      29.31        2,885       8.00         7,683      21.31          36,060

</TABLE>

Changes in Financial Condition

        General. The Corporation's consolidated total assets were $68.24 million
at March 31, 1997, reflecting an increase of $12.51 million, or 22.44%, over the
$55.73 million at June 30, 1996.  This growth was primarily  attributable  to an
increase in loans outstanding, funded primarily by the proceeds from the capital
stock  offering and  secondarily by increases in total deposits of $2.62 million
and Federal Home Loan Bank advances of $1.10 million.

        Cash  and  Cash  Equivalents,   Time  Deposits,  Investment  Securities,
Mortgage-Backed  Securities  and FHLB  Stock.  Cash and cash  equivalents,  time
deposits with original  maturities  of 90 days or more,  investment  securities,
mortgage-backed  securities  and FHLB stock  increased by $4.34 million  between
June 30, 1996, and March 31, 1997. The primary  changes were an increase in cash
and cash  equivalents  from $1.84  million at June 30, 1996, to $2.07 million at
March 31, 1997,  and a decrease in time deposits with original  maturities of 90
days or more from $1.06 million at June 30, 1996, to $361,000 at March 31, 1997.
The additional funds derived from the conversion and related stock offering were
utilized to purchase short-term liquid investment securities.

         Loans Receivable.  Net loans receivable equaled $53.43 million at March
31, 1997,  compared to $45.23  million at June 30, 1996,  an increase of 18.13%,
attributable to the continued  demand for mortgage loans coupled with the growth
of the consumer  loan product  line,  which was  introduced  in January of 1996.
Average total loans  outstanding for the nine-month period ended March 31, 1997,
equaled  $50.05  million,  compared to $43.28  million  for the same  nine-month
period ended March 31, 1996, which  represents an increase of $6.77 million,  or
15.6%.  Approximately  35.9% of this increase was experienced in the installment
loan portfolio  (i.e.,  consumer  loans).  Management is continuing to emphasize
single-family residential lending.

        Deposits.  Total deposits increased by $2.62 million,  or 5.56%,  during
the first nine  months of fiscal year 1997.  Total time  deposits  increased  by
$3.69  million,  or 10.01%,  while demand and savings  deposits  decreased a net
amount of $1.07 million, or 11.68%, during the nine-month period ended March 31,
1997.

                                      -8-
<PAGE>

          Advances from the FHLB increased $1.10 million, or 37.96%,  during the
first  three  quarters  of fiscal  year  1997,  due to  sustained  loan  demand.
Liabilities  other  than  deposits  and  advances  from  the FHLB  increased  by
$121,000.  Such increase was primarily attributed to the recording of $95,000 in
accounts payable related to operating expenses and income taxes. Minor increases
were also reported in accrued interest payable and other miscellaneous liability
accounts.



                              Results of Operations

        General.  The Corporation recorded a consolidated net income of $178,000
for the three  months  ended March 31,  1997,  compared to $149,000 for the same
quarter in 1996, and $362,000 for the nine months ended March 31, 1997, compared
to $386,000 for the nine months ended March 31, 1996.

Three Months Ended March 31, 1997, Compared to Three Months Ended March 31, 1996

        Net Interest Income. The Corporation's net interest income for the three
months ended March 31, 1997,  increased by 31.53%,  from $498,000,  to $655,000,
compared to the same period in 1996. The net interest margin,  which consists of
net  interest  income  as  a  percentage  of  average  interest-earning  assets,
increased  slightly,  from 3.82% for the three months  ended March 31, 1996,  to
4.00%  for the same  period  in 1997,  primarily  as a result  of the  growth in
earning assets.  During the same period, the net interest spread, which reflects
average yield on interest-earning  assets less average costs of interest-bearing
liabilities,  decreased 51 basis points,  to 2.87%.  Average  loans  outstanding
increased by $7.5 million as compared to 1996, which  contributed  approximately
$158,000 to the net interest income, while the change in average  yield on loans
outstanding decreased the net interest income by approximately $3,000.

        Provision for Loan Losses. The allowance for loan losses was established
and is  maintained  by  periodic  charges to the  provision  for loan  loss,  an
operating  expense,  in order to provide  for the risk of loss  inherent  in the
Company's  loan  portfolio.  Loan losses and recoveries are charged or credited,
respectively, to the allowance for loan losses as they occur.

        The  allowance and provision for loan losses is determined by management
upon  consideration  of such  factors  as the  size  and  character  of the loan
portfolio,  loan loss experience,  problem loans and economic  conditions in the
Company's market area.  Management attempts to minimize the risk associated with
each loan by  evaluating  each loan  independently  based  upon  criteria  which
include,  but are not limited  to, (a) the  purpose of the loan,  (b) the credit
history of the borrower,  (c) the borrower's  financial standing and trends, (d)
the market value of the collateral involved,  and (e) the down payment received.
Quarterly  reviews of the loan portfolio are conducted to identify problem loans
and to determine  appropriate  courses of action on a loan-by-loan  basis. While
management believes that it uses the best information available to determine the
allowance for loan losses, unforeseen market conditions could result in material
adjustments,  and net earnings could be  significantly  adversely  affected,  if
circumstances differ substantially from the assumptions used in making the final
determination.  Increases in the loan portfolio, increases in the types of loans
carrying greater risk of loss,  increases in non-performing loans and changes in
the local and national  economy all could cause the allowance for loan losses to
be insufficient.

        The Company  added  $20,000 to the  allowance for loan losses during the
quarter ended March 31, 1997,  due to the increase in loans  receivable  and the
increase in consumer  loans,  which are  generally  considered to have a greater
risk of loss than one- to four-family mortgage loans. The Company also recovered
$48,000 from loans previously charged-off.

         Noninterest  Income and Expense.  Noninterest income was $3,000 for the
three months ended March 31, 1997,  compared to $17,000,  for the same period in
1996. This decrease was a result of the $19,000 loss recognized from the sale of
mortgage-backed  securities,  the proceeds of which were utilized to fund higher
yielding loans.  Noninterest  expense  increased by $75,000 for the three months
ended March 31,  1997,  compared to the same period in 1996.  The  increase  was
attributed  to the  increased  costs of employee  salaries  and  benefit  plans,
professional fees (legal and accounting) due to the Corporation's public company
reporting   requirements,   corporate  franchise  tax  and  other  miscellaneous
operating expenses.

                                      -9-
<PAGE>


Nine Months Ended March 31, 1997, Compared to Nine Months Ended March 31, 1996

        Net Interest Income.  The Corporation's net interest income for the nine
months ended March 31, 1997, increased by 20.26%, from $1,436,000 to $1,727,000,
compared to the same period in 1996. The net interest margin,  which consists of
net  interest  income  as  a  percentage  of  average  interest-earning  assets,
increased slightly from 3.84% for the nine-month period ended March 31, 1996, to
3.89% for the same period in 1997,  primarily  as a result of the  Corporation's
ability to increase  interest-earning  assets more rapidly than interest-costing
liabilities.  The shifting of deposits  from lower  yielding  accounts to longer
termed  deposits,  which generally have a higher rate of interest,  did slow the
growth of the net  interest  margin.  During the same  period,  the net interest
spread,  which reflects average yield on  interest-earnings  assets less average
costs of  interest-bearing  liabilities,  decreased  20 basis  points  to 3.19%.
Average loans  outstanding  increased by $6.7 million as compared to 1996, which
contributed  approximately  $453,000 to the net interest income while the change
in average  yield on loans  outstanding  decreased  the net  interest  income by
approximately $4,000.

        Noninterest  Income and Expense.  Noninterest income was $38,000 for the
nine months  ended March 31, 1997,  compared to $35,000 for the same  nine-month
period  in  1996.  This  increase  is  attributed  to the  increase  in the cash
surrender value of the key-man life insurance policy, which was partially offset
by the  recognition  of the  loss of  $19,000  on the  sale  of  mortgage-backed
securities.  Noninterest  expense  increased  by  $304,000,  or  33.74%, in 1997
compared to 1996  primarily as a result of a one-time deposit insurance  special
assessment  of  $263,000,  which  was  levied  on  September  30,  1996,  on all
institutions with deposits insured by the Savings Association  Insurance Fund of
the Federal  Deposit  Insurance  Corporation.  Significant  increases  were also
experienced  in corporate  franchise  taxes,  ($30,000)  and  professional  fees
($16,000).

                                      -10-
<PAGE>


                         HOME CITY FINANCIAL CORPORATION

                           PART II - OTHER INFORMATION



        ITEM 1 - LEGAL PROCEEDINGS

                      None


        ITEM 2 - CHANGES IN SECURITIES

                      Not Applicable


        ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

                      Not Applicable


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

                      None


        ITEM 5 - OTHER INFORMATION

                      None


        ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

                      a.  1. Exhibit 3 (i): Articles of Incorporation

                          2. Exhibit 3 (ii): Code of Regulations

                          3. Exhibit 27: Financial Data Schedule

                       b. No reports on Form 8-K were filed during the quarter
                          ended March 31, 1997.


                                      -11-
<PAGE>



SIGNATURES


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





                                            HOME CITY FINANCIAL CORPORATION


Date: May 12, 1997                          /s/ Douglas L. Ulery
                                            ____________________________
                                            Douglas L. Ulery
                                            President



Date: May 12, 1997                          /s/ Gary E. Brown
                                            ____________________________
                                            Gary E. Brown
                                            Treasurer