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                                                                    EXHIBIT 10.5

                       AMENDMENT NUMBER 2 TO THE AGREEMENT
                                      AMONG
                        PITTSBURGH HOME FINANCIAL CORP.,
                          PITTSBURGH HOME SAVINGS BANK
                                       AND
                                 MICHAEL J. KIRK


         WHEREAS, Pittsburgh Home Financial Corp. (the "Corporation"), a
Pennsylvania corporation, Pittsburgh Home Savings Bank, a Pennsylvania-chartered
savings bank (the "Savings Bank") and Michael J. Kirk (the "Executive") entered
into an Agreement dated July 25, 1996 in connection with his employment with the
Corporation and the Savings Bank (together, the "Employers");

         WHEREAS, on April 23, 1998, the Employers and the Executive amended the
Agreement to extend the term of employment under the Agreement from two years to
three years;

         WHEREAS, the Employers desire to modify the termination provisions of
the Agreement to increase the cash severance amount in accordance with the
extension of the term of employment; and

         WHEREAS, Section 11 of the Agreement provides that no provisions of the
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing signed by the Executive and such officer or
officers as may be specifically designated by the Board of Directors of the
Employers to sign on their behalf.

         NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual
covenants herein set forth, the Employers and the Executive do hereby agree that
Section 5(c) of the Agreement is modified to read as set forth below:

                  (c) In the event that (i) Executive's employment is terminated
         by the Employers for other than Cause, Disability, Retirement or the
         Executive's death, or (ii) such employment is terminated by the
         Executive (a) due to a material breach of this Agreement by the
         Employers, which breach has not been cured within fifteen (15) days
         after a written notice of non-compliance has been given by the
         Executive to the Employers, or (b) for Good Reason, then the Employers
         shall:

                           (A) pay to the Executive, in thirty-six (36) equal
                  monthly installments beginning with the first business day of
                  the month following the Date of Termination, a cash severance
                  amount equal to three (3) times the Executive's Base Salary,
                  and

                           (B) maintain and provide for a period ending at the
                  earlier of (i) the expiration of the remaining term of
                  employment pursuant hereto prior to


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                  the Notice of Termination or (ii) the date of the Executive's
                  full-time employment by another employer (provided that the
                  Executive is entitled under the terms of such employment to
                  benefits substantially similar to those described in this
                  subparagraph (B)), at no additional cost to the Executive
                  beyond that which the Executive is responsible for prior to
                  the Date of Termination, the Executive's continued
                  participation in all group insurance, life insurance, health
                  and accident, disability and other employee benefit plans,
                  programs and arrangements in which the Executive was entitled
                  to participate immediately prior to the Date of Termination
                  (other than stock option and restricted stock plans of the
                  Employers), provided that in the event that the Executive's
                  participation in any plan, program or arrangement as provided
                  in this subparagraph (B) is barred, or during such period any
                  such plan, program or arrangement is discontinued or the
                  benefits thereunder are materially reduced, the Employers
                  shall arrange to provide the Executive with benefits
                  substantially similar to those which the Executive was
                  entitled to receive under such plans, programs and
                  arrangements immediately prior to the Date of Termination.

         IN WITNESS WHEREOF, the parties have duly executed this Amendment
Number 2 to the Agreement as of this 25th day of June 1998.

                                      PITTSBURGH HOME FINANCIAL CORP.
Attest:

                                      By:   /s/ J. Ardie Dillen
                                            -----------------------------------
/s/ Gregory G. Maxcy                        J. Ardie Dillen
-----------------------------------         Chairman, President and Chief
Gregory G. Maxcy, Secretary                 Executive Officer

Witness
                                      PITTSBURGH HOME SAVINGS BANK
Attest:

                                      By:   /s/ J. Ardie Dillen
                                            -----------------------------------
/s/ Jess B. Mellor                          J. Ardie Dillen
-----------------------------------
Jess B. Mellor, Secretary                   Chairman, President and Chief
                                            Executive Officer

                                      EXECUTIVE


                                      By:   /s/ Michael J. Kirk
                                            -----------------------------------
                                            Michael J. Kirk