<PAGE>   1

                                   FORM 10-QSB

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

   /X/             QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 1999

   / /             TRANSITION REPORT UNDER SECTION 13 OR 15(d)
                         OF THE SECURITIES EXCHANGE ACT

For the transition period from __________ to ____________.

Commission File Number:  000-23927
                         ---------

                         HOME LOAN FINANCIAL CORPORATION
                         -------------------------------
        (Exact name of small business issuer as specified in its charter)

               Ohio                                       31-1578552
               ----                                       ----------
(State or other jurisdiction of                          (IRS Employer
  incorporation or organization)                          Identification No.)

                     401 Main Street, Coshocton, Ohio 43812
                     ---------------------------------------
                    (Address of principal executive offices)

                                 (740) 622-0444
                                 --------------
                           (Issuer's telephone number)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities 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 February 10, 2000 the latest practical date, 1,939,245 of the issuer's
common shares, no par value, were issued and outstanding.

Transitional Small Business Disclosure Format (check one):

Yes ___    No _X_


--------------------------------------------------------------------------------


                                                                              1.
<PAGE>   2



                         HOME LOAN FINANCIAL CORPORATION

                                      INDEX







<TABLE>
<CAPTION>
                                                                                                           Page
                                                                                                           ----


<S>                                                                                                        <C>
PART I -FINANCIAL INFORMATION

         Item 1.   Condensed Financial Statements (Unaudited)

              Consolidated Balance Sheets.............................................................      3

              Consolidated Statements of Income and Comprehensive Income..............................      4

              Consolidated Statements of Changes in Shareholders' Equity..............................      5

              Consolidated Statements of Cash Flows...................................................      7

              Notes to Consolidated Financial Statements .............................................      8


         Item 2.   Management's Discussion and Analysis...............................................     16


PART II - OTHER INFORMATION

         Item 1.   Legal Proceedings..................................................................     24

         Item 2.   Changes in Securities and Use of Proceeds..........................................     24

         Item 3.   Defaults Upon Senior Securities....................................................     24

         Item 4.   Submission of Matters to a Vote of Security Holders................................     24

         Item 5.   Other Information..................................................................     24

         Item 6.   Exhibits and Reports on Form 8-K...................................................     24

SIGNATURES ...........................................................................................     25
</TABLE>



--------------------------------------------------------------------------------


                                                                              2.
<PAGE>   3


                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                        December 31,              June 30,
                                                                            1999                    1999
                                                                            ----                    ----
<S>                                                                    <C>                     <C>
ASSETS
Cash and due from banks                                                $   3,570,132           $   1,824,130
Interest-bearing deposits in other banks                                      32,600                  39,818
Overnight deposits                                                                --               3,500,000
Federal funds sold                                                                --               3,200,000
                                                                       -------------           -------------
     Total cash and cash equivalents                                       3,602,732               8,563,948
Interest-bearing time deposits                                                36,112                  35,152
Securities available for sale                                              3,170,950               2,969,723
Mortgage-backed securities available for sale                             19,072,465              20,248,220
Federal Home Loan Bank stock                                               1,482,300               1,430,500
Loans, net                                                                79,533,960              73,068,853
Premises and equipment, net                                                1,156,326                 742,062
Accrued interest receivable                                                  504,877                 468,664
Other assets                                                                 607,606                 328,051
                                                                       -------------           -------------

         Total assets                                                  $ 109,167,328           $ 107,855,173
                                                                       =============           =============


LIABILITIES
Deposits                                                               $  57,724,806           $  56,494,543
Federal Home Loan Bank advances                                           28,300,000              28,200,000
Other borrowings                                                           2,875,000               2,350,000
Accrued interest payable                                                     475,150                 526,693
Accrued expenses and other liabilities                                       346,715                 384,941
                                                                       -------------           -------------
     Total liabilities                                                    89,721,671              87,956,177

SHAREHOLDERS' EQUITY
Preferred stock, no par value, 500,000 shares authorized,
  none outstanding                                                                --                      --
Common stock, no par value, 9,500,000 shares authorized,
  2,248,250 shares issued                                                         --                      --
Additional paid-in capital                                                14,125,553              14,060,770
Retained earnings - substantially restricted                              12,442,757              12,154,493
Unearned employee stock ownership plan shares                             (2,025,818)             (2,109,864)
Unearned recognition and retention plan shares                              (929,469)             (1,024,269)
Treasury stock, at cost - 287,005 shares at December 31, 1999
  and 219,205 shares at June 30, 1999                                     (3,498,173)             (2,852,948)
Accumulated other comprehensive income                                      (649,193)               (329,186)
                                                                       -------------           -------------
     Total shareholders' equity                                           19,445,657              19,898,996
                                                                       -------------           -------------

         Total liabilities and shareholders' equity                    $ 109,167,328           $ 107,855,173
                                                                       =============           =============
</TABLE>


--------------------------------------------------------------------------------

          See accompanying notes to consolidated financial statements.

                                                                              3.
<PAGE>   4


                        HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                        CONSOLIDATED STATEMENTS OF INCOME
                            AND COMPREHENSIVE INCOME
                                   (Unaudited)

--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                           Three Months Ended                           Six Months Ended
                                                               December 31,                                December 31,
                                                               ------------                                ------------
                                                        1999                  1998                  1999                  1998
                                                        ----                  ----                  ----                  ----
<S>                                                 <C>                   <C>                     <C>                 <C>
INTEREST AND DIVIDEND INCOME
    Loans, including fees                           $ 1,614,367           $ 1,374,021             3,176,110           $ 2,690,525
    Securities                                          373,389               178,744               765,714               387,189
    Dividends on FHLB stock                              37,700                 7,059                63,841                14,241
    Interest-bearing deposits and federal
      funds sold                                          2,071                97,595                21,912               189,480
                                                    -----------           -----------           -----------           -----------
     Total interest income                            2,027,527             1,657,419             4,027,577             3,281,435

INTEREST EXPENSE
    Deposits                                            590,600               534,862             1,169,375             1,060,001
    FHLB advances                                       359,060                40,318               678,577                60,032
    Other borrowings                                     54,231                    --               103,038                    --
                                                    -----------           -----------           -----------           -----------
     Total interest expense                           1,003,891               575,180             1,950,990             1,120,033
                                                    -----------           -----------           -----------           -----------

NET INTEREST INCOME                                   1,023,636             1,082,239             2,076,587             2,161,402
Provision for loan losses                                30,000                30,000                60,000                60,000
                                                    -----------           -----------           -----------           -----------

NET INTEREST INCOME AFTER PROVISION FOR
  LOAN  LOSSES                                          993,636             1,052,239             2,016,587             2,101,402

NONINTEREST INCOME
    Service charges and other fees                       43,113                33,386                83,468                71,687
    Other income                                         29,657                14,566                46,687                26,922
                                                    -----------           -----------           -----------           -----------
     Total noninterest income                            72,770                47,952               130,155                98,609

NONINTEREST EXPENSE
    Salaries and employee benefits                      383,291               317,736               753,834               591,257
    Occupancy and equipment                              53,700                36,567                95,383                71,552
    State franchise taxes                                58,500                38,100               135,000                76,200
    Computer processing                                  27,767                34,738                56,052                65,451
    SAIF deposit insurance premiums                       8,374                 8,412                16,690                16,825
    Legal, audit and supervisory exam fees               35,484                22,500                74,729                45,000
    Director fees                                        20,800                20,800                41,600                42,425
    Other expense                                        88,887                65,803               161,619               123,648
                                                    -----------           -----------           -----------           -----------
     Total noninterest expense                          676,803               544,656             1,334,907             1,032,358
                                                    -----------           -----------           -----------           -----------

INCOME BEFORE INCOME TAXES                              389,603               555,535               811,835             1,167,653
Income tax expense                                      140,500               199,800               306,800               419,400
                                                    -----------           -----------           -----------           -----------

NET INCOME                                              249,103               355,735               505,035               748,253
Other comprehensive income, net of tax                 (291,932)              (15,770)             (320,007)               27,369
                                                    -----------           -----------           -----------           -----------

COMPREHENSIVE INCOME                                $   (42,829)          $   339,965           $   185,028           $   775,622
                                                    ===========           ===========           ===========           ===========

BASIC EARNINGS PER COMMON SHARE                     $       .15           $       .18           $       .29           $       .36
                                                    ===========           ===========           ===========           ===========

DILUTED EARNINGS PER COMMON SHARE                   $       .14           $       .17           $       .29           $       .36
                                                    ===========           ===========           ===========           ===========
</TABLE>


--------------------------------------------------------------------------------

          See accompanying notes to consolidated financial statements.

                                                                              4.
<PAGE>   5


                        HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                   Six Months Ended December 31, 1999 and 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------

                                             Additional                                 Unearned            Unearned
                                               Paid-In            Retained                ESOP                RRP
                                               Capital            Earnings               Shares              Shares
                                               -------            --------               ------              ------

<S>                                         <C>                 <C>                  <C>                  <C>
Balance at July 1, 1998                     $ 21,948,437        $ 11,285,160         $ (1,678,690)        $         --

Net income for the period                             --             748,253                   --                   --

Cash dividend - $.10 per share                        --            (207,954)                  --                   --

Commitment to release 5,994
  ESOP shares                                     25,475                  --               59,940                   --

Purchase of 89,930 shares for
  recognition and retention plan                      --                  --                   --           (1,157,069)

Compensation expense with respect to
  recognition and retention plan                      --                  --                   --               38,600

Purchase of 23,070 treasury shares                    --                  --                   --                   --

Change in fair value of securities
  available for sale                                  --                  --                   --                   --
                                            ------------        ------------         ------------         ------------

Balance at December 31, 1998                $ 21,973,912        $ 11,825,459         $ (1,618,750)        $ (1,118,469)
                                            ============        ============         ============         ============
</TABLE>


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                                  Unrealized
                                                                   Gain on
                                                                  Securities
                                              Treasury            Available
                                               Shares              for Sale              Total
                                               ------              --------              -----

<S>                                         <C>                  <C>                 <C>
Balance at July 1, 1998                     $         --         $      9,727        $ 31,564,634

Net income for the period                             --                   --             748,253

Cash dividend - $.10 per share                        --                   --            (207,954)

Commitment to release 5,994
  ESOP shares                                         --                   --              85,415

Purchase of 89,930 shares for
  recognition and retention plan                      --                   --          (1,157,069)

Compensation expense with respect to
  recognition and retention plan                      --                   --              38,600

Purchase of 23,070 treasury shares              (329,181)                  --            (329,181)

Change in fair value of securities
  available for sale                                  --               27,369              27,369
                                            ------------         ------------        ------------

Balance at December 31, 1998                $   (329,181)        $     37,096        $ 30,770,067
                                            ============         ============        ============
</TABLE>


--------------------------------------------------------------------------------
                                  (Continued)


                                                                              5.
<PAGE>   6


                        HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
     CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Continued)
                   Six Months Ended December 31, 1999 and 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------

                                              Additional                                  Unearned             Unearned
                                                Paid-In             Retained                ESOP                 RRP
                                                Capital             Earnings               Shares               Shares
                                                -------             --------               ------               ------

<S>                                          <C>                  <C>                  <C>                  <C>
Balance at July 1, 1999                      $ 14,060,770         $ 12,154,493         $ (2,109,864)        $ (1,024,269)

Net income for the period                              --              505,035                   --                   --

Cash dividend - $.13 per share                         --             (236,771)                  --                   --

Contribution of accumulated
   dividends on unawarded recognition
   and retention plan shares                       72,840                   --                   --                   --

Commitment to release 7,950
  ESOP shares                                      (8,057)                  --               84,046                   --

Compensation expense with respect to
  recognition and retention plan                       --                   --                   --               94,800

Purchase of 67,800 treasury shares                     --                   --                   --                   --

Change in fair value of securities
  available for sale                                   --                   --                   --                   --
                                             ------------         ------------         ------------         ------------

Balance at December 31, 1999                 $ 14,125,553         $ 12,422,757         $ (2,025,818)        $   (929,469)
                                             ============         ============         ============         ============
</TABLE>


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------

                                                                   Unrealized
                                                                     Loss on
                                                                   Securities
                                                Treasury            Available
                                                 Shares             for Sale               Total
                                                 ------             --------               -----

<S>                                          <C>                  <C>                  <C>
Balance at July 1, 1999                      $ (2,852,948)        $   (329,186)        $ 19,898,996

Net income for the period                              --                   --              505,035

Cash dividend - $.13 per share                         --                   --             (236,771)

Contribution of accumulated
   dividends on unawarded recognition
   and retention plan shares                           --                   --               72,840

Commitment to release 7,950
  ESOP shares                                          --                   --               75,989

Compensation expense with respect to
  recognition and retention plan                       --                   --               94,800

Purchase of 67,800 treasury shares               (645,225)                  --             (645,225)

Change in fair value of securities
  available for sale                                   --             (320,007)            (320,007)
                                             ------------         ------------         ------------

Balance at December 31, 1999                 $ (3,498,173)        $   (649,193)        $ 19,445,657
                                             ============         ============         ============
</TABLE>


--------------------------------------------------------------------------------

          See accompanying notes to consolidated financial statements.

                                                                              6.
<PAGE>   7



                        HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                                       Six Months Ended
                                                                                         December 31,
                                                                                 1999                   1998
                                                                                 ----                   ----
<S>                                                                          <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                                               $   505,035           $   748,253
    Adjustments to reconcile net income to net cash from
      operating activities:
       Depreciation                                                               47,400                39,000
       Securities amortization and accretion                                          53                 6,847
       Provision for loan losses                                                  60,000                60,000
       FHLB stock dividends                                                      (51,800)              (14,100)
       Compensation expense for ESOP shares                                       75,989                85,415
       Compensation expense for RRP shares                                        94,800                38,600
       Net change in accrued interest receivable and other assets               (150,916)              (71,087)
       Net change in accrued expenses and other liabilities                      (89,769)              (24,577)
       Net change in deferred loan fees                                            6,689                18,950
                                                                             -----------           -----------
          Net cash from operating activities                                     497,481               887,301

CASH FLOWS FROM INVESTING ACTIVITIES
    Securities available for sale:
       Purchases                                                                (484,946)             (748,906)
       Proceeds from maturities                                                  250,000             4,250,000
    Mortgage-backed securities available for sale:
       Purchases                                                                      --            (1,170,340)
       Proceeds from maturities and principal paydowns                           724,562               120,795
    Net change in interest-bearing time deposits                                    (960)                 (960)
    Net change in loans                                                       (6,531,796)           (8,379,197)
    Premises and equipment expenditures                                         (461,664)              (28,212)
                                                                             -----------           -----------
       Net cash from investing activities                                     (6,504,804)           (5,956,820)

CASH FLOWS FROM FINANCING ACTIVITIES
    Net change in deposits                                                     1,230,263             3,339,482
    Net change in short-term FHLB advances                                       100,000                    --
    Net change in other short-term borrowings                                    525,000                    --
    Proceeds from long-term FHLB advances                                             --             2,000,000
    Cash dividends paid                                                         (236,771)             (207,954)
    Contribution of accumulated dividends on unawarded
       recognition and retention plan shares                                      72,840                    --
    Purchases of recognition and retention plan shares                                --            (1,157,069)
    Purchases of treasury shares                                                (645,225)             (329,181)
                                                                             -----------           -----------
       Net cash from financing activities                                      1,046,107             3,645,278
                                                                             -----------           -----------

Net change in cash and cash equivalents                                       (4,961,216)           (1,424,241)
Cash and cash equivalents at beginning of period                               8,563,948             7,657,148
                                                                             -----------           -----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                   $ 3,602,732           $ 6,232,907
                                                                             ===========           ===========

Supplemental disclosures of cash flow information
    Cash paid during the period for:
       Interest                                                              $ 2,002,533           $ 1,081,090
       Income taxes                                                              475,000               492,000
</TABLE>


--------------------------------------------------------------------------------

          See accompanying notes to consolidated financial statements.

                                                                              7.
<PAGE>   8



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These interim consolidated financial statements are prepared without audit and
reflect all adjustments which, in the opinion of management, are necessary to
present fairly the financial position of Home Loan Financial Corporation at
December 31, 1999, and its results of operations and cash flows for the periods
presented. All such adjustments are normal and recurring in nature. The
accompanying consolidated financial statements have been prepared in accordance
with the instructions for Form 10-QSB and, therefore, do not purport to contain
all the necessary financial disclosures required by generally accepted
accounting principles that might otherwise be necessary in the circumstances,
and should be read in conjunction with the consolidated financial statements and
notes thereto of the Home Loan Financial Corporation for the fiscal year ended
June 30, 1999. The accounting policies of the Home Loan Financial Corporation
described in the notes to the consolidated financial statements contained in the
Home Loan Financial Corporation's June 30, 1999, annual report, have been
consistently followed in preparing this Form 10-QSB.

The consolidated financial statements include the accounts of Home Loan
Financial Corporation ("HLFC") and its wholly owned subsidiary, The Home Loan
Savings Bank ("Bank"), together referred to as the Corporation. All significant
intercompany transactions and balances have been eliminated.

To prepare financial statements in conformity with generally accepted accounting
principles, management makes estimates and assumptions based on available
information. These estimates and assumptions affect the amounts reported in the
financial statements and disclosures provided, and future results could differ.
The allowance for loan losses, fair values of financial instruments and status
of contingencies are particularly subject to change.

Income tax expense is the total of current year income tax due or refundable and
the change in deferred tax assets and liabilities. Deferred tax assets and
liabilities are the expected future tax consequences for the temporary
differences between the carrying amounts and tax bases of assets and
liabilities, computed using enacted tax rates. A valuation allowance, if needed,
reduces deferred tax assets to the amount expected to be realized. Income tax
expense is based on the effective rate expected to be applicable for the entire
year.

Basic earnings per common share is net income divided by the weighted average
number of common shares outstanding during the period. Employee Stock Ownership
Plan ("ESOP") shares are considered outstanding for this calculation unless
unearned. Recognition and Retention Plan ("RRP") shares are considered
outstanding as they become vested. Diluted earnings per common share include the
dilutive effect of RRP shares and the additional potential common shares
issuable under stock options.



--------------------------------------------------------------------------------

                                  (Continued)

                                                                              8.
<PAGE>   9



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activities" requires companies to record
derivatives on the balance sheet as assets or liabilities, measured at fair
value. Gains or losses resulting from changes in the values of those derivatives
would be accounted for depending on the use of the derivative and whether it
qualifies for hedge accounting. The key criterion for hedge accounting is that
the hedging relationship must be highly effective in achieving offsetting
changes in fair value or cash flows. SFAS No. 133 does not allow hedging of a
security which is classified as held to maturity. Upon adoption of SFAS No. 133,
companies may reclassify any security from held to maturity to available for
sale if they wish to be able to hedge the security in the future. SFAS No. 133,
as amended by SFAS No. 137, is effective for fiscal years beginning after June
15, 2000 with early adoption encouraged for any fiscal quarter beginning July 1,
1998 or later, with no retroactive application. Management does not expect the
adoption of SFAS No. 133 to have a significant impact on the Corporation's
financial statements.


NOTE 2 - SECURITIES

Securities at December 31, 1999 and June 30, 1999 were as follows:

<TABLE>
<CAPTION>
                                                                         Gross          Gross           Estimated
                                                       Amortized       Unrealized     Unrealized          Fair
                                                         Cost            Gains          Losses            Value
                                                         ----            -----          ------            -----
<S>                                                 <C>                <C>           <C>            <C>
DECEMBER 31, 1999
Securities available for sale
     U.S. Government agencies                       $    3,234,700     $       --    $   (63,750)   $     3,170,950
                                                    ==============     ==========    ===========    ===============

Mortgage-backed securities
  available for sale
     U.S. Government agencies                       $   19,992,341     $       --    $  (919,876)   $    19,072,465
                                                    ==============     ==========    ===========    ===============

JUNE 30, 1999
Securities available for sale
     U.S. Treasury notes                            $      249,703     $    1,195    $        --    $       250,898
     U.S. Government agencies                            2,749,060             --        (30,235)         2,718,825
                                                    --------------     ----------    -----------    ---------------
                                                    $    2,998,763     $    1,195    $   (30,235)   $     2,969,723
                                                    ==============     ==========    ===========    ===============
Mortgage-backed securities
  available for sale
     U.S. Government agencies                       $   20,717,947     $    1,617    $  (471,344)   $    20,248,220
                                                    ==============     ==========    ===========    ===============
</TABLE>


--------------------------------------------------------------------------------

                                  (Continued)

                                                                              9.
<PAGE>   10



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 2 - SECURITIES (Continued)

Contractual maturities of securities were as follows. Actual maturities may
differ from contractual maturities because borrowers may have the right to call
or prepay obligations with or without call or prepayment penalties. Securities
not due at a single maturity, primarily mortgage-backed securities, are shown
separately.

<TABLE>
<CAPTION>
                                                                                             Estimated
                                                                          Amortized            Fair
                                                                            Cost               Value
                                                                            ----               -----

<S>                                                                    <C>               <C>
           Due after one year through five years                       $    3,234,700    $     3,170,950
           Mortgage-backed securities                                      19,992,341         19,072,465
                                                                       --------------    ---------------
                                                                       $   23,227,041    $    22,413,415
                                                                       ==============    ===============
</TABLE>


No securities were sold during the three or six months ended December 31, 1999
or 1998.


NOTE 3 - LOANS

Loans at December 31, 1999 and June 30, 1999 were as follows:

<TABLE>
<CAPTION>
                                              December 31,              June 30,
                                                  1999                    1999
                                                  ----                    ----
<S>                                           <C>                    <C>
Residential real estate loans:
    1 - 4 family                              $ 52,575,436           $ 50,059,806
    Home equity                                  2,524,519              1,812,681
Nonresidential real estate                       9,053,406              5,444,843
Real estate construction                         2,031,367              2,791,291
Land                                               635,262              1,148,472
                                              ------------           ------------
    Total real estate loans                     66,819,990             61,257,093
Commercial loans                                 3,053,268              2,876,994
Consumer loans:
    Home improvement                             4,430,559              4,477,735
    Automobile                                   3,721,990              3,408,549
    Deposit                                        474,842                412,602
    Credit card                                    513,523                435,749
    Other                                        1,787,983              2,157,295
                                              ------------           ------------
         Total consumer loans                   10,928,897             10,891,930
                                              ------------           ------------
Total loans                                     80,802,155             75,026,017
Less:
    Allowance for loan losses                     (383,085)              (322,700)
    Loans in process                              (729,779)            (1,485,822)
    Net deferred loan fees and costs              (155,331)              (148,642)
                                              ------------           ------------

                                              $ 79,533,960           $ 73,068,853
                                              ============           ============
</TABLE>


--------------------------------------------------------------------------------

                                  (Continued)

                                                                             10.
<PAGE>   11



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 3 - LOANS (Continued)

Activity in the allowance for loan losses was as follows:

<TABLE>
<CAPTION>
                                      Three Months                           Six Months
                                   Ended December 31,                     Ended December 31,
                                   ------------------                     ------------------
                                 1999               1998                1999               1998
                                 ----               ----                ----               ----
<S>                           <C>                <C>                 <C>                <C>
Beginning balance             $ 352,940          $ 253,606           $ 322,700          $ 223,237
Provision for losses             30,000             30,000              60,000             60,000
Loans charged-off                    --             (7,193)                 --             (7,193)
Recoveries                          145                350                 385                719
                              ---------          ---------           ---------          ---------

Ending balance                $ 383,085          $ 276,763           $ 383,085          $ 276,763
                              =========          =========           =========          =========
</TABLE>


As of December 31, 1999 and June 30, 1999 and for the three and six months ended
December 31, 1999 and 1998, impaired loans were immaterial. No loans were on
nonaccrual status at December 31, 1999 and June 30, 1999.


NOTE 4 - COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES

Various contingent liabilities are not reflected in the consolidated financial
statements, including claims and legal actions arising in the ordinary course of
business. In the opinion of management, after consultation with legal counsel,
the ultimate disposition of such legal actions is not expected to have a
material effect on the Corporation's financial condition or results of
operations.

Some financial instruments are used in the normal course of business to meet the
financing needs of customers and to reduce exposure to interest rate changes.
These financial instruments include commitments to extend credit, standby
letters of credit and financial guarantees. These involve, to varying degrees,
credit and interest-rate risk more than the amounts reported in the financial
statements.

Exposure to credit loss if the other party does not perform is represented by
the contractual amount for commitments to extend credit, standby letters of
credit and financial guarantees written. The same credit policies are used for
commitments and conditional obligations as are used for loans. The amount of
collateral obtained, if deemed necessary, on extension of credit is based on
management's credit evaluation and generally consists of residential or
commercial real estate.

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the commitment.
Commitments generally have fixed expiration dates or other termination clauses
and may require payment of a fee. Since many of the commitments are expected to
expire without being used, the total commitments do not necessarily represent
future cash requirements. Standby letters of credit and financial guarantees
written are conditional commitments to guarantee a customer's performance to a
third party.


--------------------------------------------------------------------------------

                                  (Continued)

                                                                             11.
<PAGE>   12



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 4 - COMMITMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES (Continued)

A summary of the notional or contractual amounts of financial instruments with
off-balance sheet risk at December 31, 1999 and June 30, 1999 follows:

<TABLE>
<CAPTION>
                                                          December 31,           June 30,
                                                              1999                 1999
                                                              ----                 ----

<S>                                                        <C>                 <C>
Lines of credit--variable rate                             $2,715,000          $2,268,000
1-4 family residential real estate--variable rate             280,000             523,000
1-4 family residential real estate--fixed rate                211,000             545,000
Commercial real estate--variable rate                         369,000             735,000
Credit card arrangements--fixed rate                        1,123,000           1,119,000
</TABLE>


The interest rates on fixed-rate commitments ranged from 8.375% to 13.90% at
December 31, 1999 and 6.75% to 13.90% at June 30, 1999. The interest rates on
variable rate commitments ranged from 7.25% to 9.50% at December 31, 1999 and
6.625% to 8.25% at June 30, 1999.


NOTE 5 - EMPLOYEE STOCK OWNERSHIP PLAN

The Corporation offers an employee stock ownership plan ("ESOP") for the benefit
of substantially all employees of the Corporation. The ESOP borrowed funds from
HLFC in order to acquire 179,860 common shares of HLFC at $10.00 per share. The
loan is secured by the shares purchased with the loan proceeds and will be
repaid by the ESOP with funds from the Bank's discretionary contributions to the
ESOP and earnings on ESOP assets. The shares purchased with the loan proceeds
are held in a suspense account for allocation among participants as the loan is
repaid. When loan payments are made, ESOP shares are allocated to participants
based on relative compensation.

In May 1999, the Corporation declared and paid a $4.00 per share return of
capital distribution. The ESOP received $674,812 from the return of capital
distribution on 168,703 unallocated shares. The ESOP purchased an additional
54,757 shares with the proceeds from the return of capital distribution. The
additional shares purchased will be held in suspense and allocated to
participants in a manner similar to the original ESOP shares.



--------------------------------------------------------------------------------

                                  (Continued)

                                                                             12.
<PAGE>   13



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 5 - EMPLOYEE STOCK OWNERSHIP PLAN (Continued)

ESOP compensation expense was $35,529 and $75,989 for the three and six months
ended December 31, 1999 and $40,460 and $85,415 for the three and six months
ended December 31, 1998. The ESOP shares at December 31, 1999 and June 30, 1999
were as follows:

<TABLE>
<CAPTION>
                                                                 December 31,         June 30,
                                                                    1999                1999
                                                                    ----                ----

<S>                                                              <C>                 <C>
         Allocated shares                                            35,041              11,157
         Shares committed to be released for allocation               7,950              23,884
         Unreleased shares                                          191,626             199,576
                                                                 ----------          ----------
         Total ESOP shares                                          234,617             234,617
                                                                 ==========          ==========

         Fair value of unreleased shares                         $1,437,195          $1,871,025
                                                                 ==========          ==========
</TABLE>


NOTE 6 - STOCK OPTION AND INCENTIVE PLAN

The Home Loan Financial Corporation 1998 Stock Option and Incentive Plan
("Plan") was approved by shareholders on October 13, 1998. A total of 224,825
common shares are available for granting stock options pursuant to the Plan. In
October 1998, the Board of Directors granted options to purchase 180,170 common
shares at an exercise price of $7.69, after adjustment for the return of capital
distribution, to certain officers and directors of the Corporation. One-fifth of
the options awarded become first exercisable on each of the first five
anniversaries of the date of grant. The option period expires 10 years from the
date of grant. 36,034 options are vested at December 31, 1999. 480 options were
forfeited during the three and six months ended December 31, 1999 and no options
were exercised leaving 179,690 options outstanding at December 31, 1999. There
are 44,655 shares of authorized but unissued common stock reserved for which no
options have been granted. Employee compensation expense under stock option
plans is reported only if options are granted below market price at the grant
date.


NOTE 7 - RECOGNITION AND RETENTION PLAN

A Recognition and Retention Plan ("RRP") was adopted by the Board of Directors
and approved by the shareholders of the Corporation on October 13, 1998 to
purchase 89,930 common shares, which is equal to 4% of the common shares sold in
connection with the mutual to stock conversion. The RRP will be used to provide
such individuals ownership interest in the Corporation in a manner designed to
compensate such directors and key employees for services to the Corporation.

In conjunction with the adoption of the RRP on October 13, 1998, the Board of
Directors awarded 72,866 shares to certain directors and officers of the
Corporation. One-fifth of such shares will be earned and nonforfeitable on each
of the first five anniversaries of the date of the awards. However, in case of
the death or disability of a participant, the participant's shares will be
deemed earned and nonforfeitable upon such date. At December 31, 1999, 14,573
shares have vested. There were 17,064 shares reserved for future awards.
Compensation expense related to RRP shares is based upon the cost of the shares,
which approximates fair value at the date of grant. Compensation expense was
$47,400 and $94,800 for the three and six months ended December 31, 1999 and
$38,600 for the three and six months ended December 31, 1998.


--------------------------------------------------------------------------------

                                  (Continued)

                                                                             13.
<PAGE>   14



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 8 - EARNINGS PER SHARE

The factors used in the earnings per share computation are as follows.

<TABLE>
<CAPTION>
                                                            Three Months Ended               Six Months Ended
                                                               December 31,                    December 31,
                                                               ------------                    ------------
                                                           1999            1998             1999            1998
                                                           ----            ----             ----            ----
<S>                                                  <C>              <C>             <C>              <C>
Basic
     Net income                                      $    249,103     $    355,735    $    505,035     $    748,253
                                                     ============     ============    ============     ============

     Weighted average common
       shares outstanding                               1,978,270        2,241,946       1,997,333        2,245,098
     Less:  Average unallocated ESOP shares              (193,613)        (163,373)       (195,601)        (164,872)
     Less:  Average nonvested RRP shares                  (74,142)         (56,203)        (75,964)         (28,102)
                                                     ------------     ------------    ------------     ------------

     Average shares                                     1,710,515        2,022,370       1,725,768        2,052,124
                                                     ============     ============    ============     ============

     Basic earnings per common share                 $        .15     $        .18    $        .29     $        .36
                                                     ============     ============    ============     ============


Diluted
     Net income                                      $    249,103     $    355,735    $    505,035     $    748,253
                                                     ============     ============    ============     ============

     Weighted average common
       shares outstanding for basic
       earnings per common share                        1,710,515        2,022,370       1,725,768        2,052,124
     Add:  Dilutive effects of average
              nonvested RRP shares                             --            1,711              --              532
     Add:  Dilutive effects of assumed
              exercises of stock options                   21,244           17,454          27,035           10,671
                                                     ------------     ------------    ------------     ------------

     Average shares and dilutive potential
       common shares                                    1,731,759        2,041,535       1,752,803        2,063,327
                                                     ============     ============    ============     ============

     Diluted earnings per common share               $        .14     $       .17     $        .29     $       .36
                                                     ============     ===========     ============     ===========
</TABLE>


Unearned RRP shares did not have a dilutive effect on earnings per share for the
three and six months ended December 31, 1999, as the fair value of the RRP
shares on the date of grant was greater than the average market price for the
periods.




--------------------------------------------------------------------------------

                                  (Continued)

                                                                             14.
<PAGE>   15



                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


NOTE 9 - OTHER COMPREHENSIVE INCOME

Other comprehensive income components and related taxes were as follows.

<TABLE>
<CAPTION>
                                                      Three Months Ended                      Six Months Ended
                                                         December 31,                            December 31,
                                                         ------------                            ------------
                                                   1999                1998                1999                1998
                                                   ----                ----                ----                ----

<S>                                             <C>                 <C>                 <C>                 <C>
Unrealized holding gains and losses on
  available-for-sale securities                 $(442,233)          $ (23,894)          $(484,769)          $  41,468
Tax effect                                        150,301               8,124             164,762             (14,099)
                                                ---------           ---------           ---------           ---------

Other comprehensive income                      $(291,932)          $ (15,770)          $(320,007)          $  27,369
                                                =========           =========           =========           =========
</TABLE>



--------------------------------------------------------------------------------


                                                                             15.
<PAGE>   16



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


INTRODUCTION

In the following pages, management presents an analysis of the consolidated
financial condition of the Corporation as of December 31, 1999 compared to June
30, 1999, and the consolidated results of operations for the three and six
months ended December 31, 1999 compared with the same periods in 1998. This
discussion is designed to provide a more comprehensive review of the operating
results and financial position than what could be obtained from an examination
of the consolidated financial statements alone. This analysis should be read in
conjunction with the interim consolidated financial statements and related
footnotes included herein.


FORWARD LOOKING STATEMENTS

When used in this discussion or future filings by the Corporation with the
Securities and Exchange Commission, or other public or shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result," "are expected to,"
"will continue," "is anticipated," "estimate," "project," "believe" or similar
expressions are intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The Corporation
wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made, and to advise
readers that various factors, including regional and national economic
conditions, changes in levels of market interest rates, credit risks of lending
activities and competitive and regulatory factors, could affect the
Corporation's financial performance and could cause the Corporation's actual
results for future periods to differ materially from those anticipated or
projected.

The Corporation is not aware of any trends, events or uncertainties that will
have or are reasonably likely to have a material effect on its liquidity,
capital resources or operations except as discussed herein. The Corporation is
not aware of any current recommendations by regulatory authorities that would
have such effect if implemented.

The Corporation does not undertake, and specifically disclaims, any obligation
to publicly release any revisions that may be made to any forward-looking
statements to reflect occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.

FINANCIAL CONDITION

Total assets at December 31, 1999 were $109.2 million compared to $107.9 million
at June 30, 1999, an increase of $1.3 million, or 1.2%. The increase in total
assets was primarily in loans, which increased $6.5 million partially offset by
a decrease in cash and cash equivalents of $5.0 million. Loan growth, which was
predominantly funded by the use of cash and cash equivalents, consisted
primarily of nonresidential real estate loans, which increased $3.6 million and
1-4 family residential real estate loans which increased $2.5 million. The
growth in residential and nonresidential real estate loans was due to
competitive pricing. Changes in other loan and asset categories were not
considered significant.

Total deposits increased $1.2 million, from $56.5 million at June 30, 1999, to
$57.7 million at December 31, 1999. The increase in deposits was primarily in
certificate of deposits, which increased $1.9 million due to the Bank being more
competitive on rates paid compared to the market in order to attract funds for
loan growth. This increase was partially offset by decreases in NOW and money
market accounts and savings accounts. The certificates of deposit portfolio as a
percent of total deposits increased from 48.8% at June 30,



--------------------------------------------------------------------------------

                                  (Continued)
                                                                             16.
<PAGE>   17



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


1999 to 51.1% at December 31, 1999. Almost all certificates of deposit mature in
less than three years with the majority maturing in the next year.

Federal Home Loan Bank ("FHLB") advances totaled $28.3 million at December 31,
1999, compared to $28.2 million at June 30, 1999, an increase of $100,000 in the
cash-management line of credit. The Corporation had no changes in its long-term
advances from the FHLB. The interest rates on the long-term borrowings are fixed
for a specified number of years, then convertible to variable rates at the
option of the FHLB. Interest is due monthly and principal is due upon maturity.
If the convertible option is exercised, the advance may be prepaid without
penalty. The Corporation also increased its borrowings under the lines of credit
with another financial institution to provide added liquidity for the Year 2000.


COMPARISON OF RESULTS OF OPERATIONS FOR THREE MONTHS
  ENDED DECEMBER 31, 1999 AND DECEMBER 31, 1998

General economic conditions, the monetary and fiscal policies of federal
agencies and the regulatory policies of agencies that regulate financial
institutions affect the operating results of the Corporation. Interest rates on
competing investments and general market rates of interest influence the
Corporation's cost of funds. The demand for real estate loans and other types of
loans influence lending activities, which in turn is affected by the interest
rates at which such loans are made, general economic conditions and the
availability of funds for lending activities.

The Corporation's net income primarily depends on its net interest income, which
is the difference between the interest income earned on interest-earning assets,
such as loans and securities, and interest expense incurred on interest-bearing
liabilities, such as deposits and borrowings. The level of net interest income
is dependent on the interest rate environment and the volume and composition of
interest-earning assets and interest-bearing liabilities. Provisions for loan
losses, service charges, gains on the sale of assets, other income, noninterest
expense and income taxes also affect net income.

Net income was $249,103 for the three months ended December 31, 1999, compared
to $355,735 for the three months ended December 31, 1998. The decrease in net
income for the three months ended December 31, 1999 was the result of an
increase in noninterest expense and a slight decrease in net interest income.

Net interest income totaled $1,023,636 for the three months ended December 31,
1999, compared to $1,082,239 for the three months ended December 31, 1998,
representing a decrease of $58,603, or 5.4%. The change in net interest income
is attributable to a larger increase in interest-bearing liabilities compared to
interest-earning assets due to a special capital distribution of $4.00 per
share, or $8.5 million, paid to shareholders in May 1999, which was funded with
borrowings.

Interest and fees on loans increased $240,346, or 17.5%, from $1,374,021 for the
three months ended December 31, 1998 to $1,614,367 for the three months ended
December 31, 1999. The increase was due to higher average balances of loans.

Interest earned on securities totaled $373,389 for the three months ended
December 31, 1999, compared to $178,744 for the three months ended December 31,
1998. The increase was a result of a higher average balance of securities
partially offset by a decrease in the yield earned. The higher average balance
of securities was due to the purchase of $20.0 million of mortgage-backed
securities in March 1999 as part of the Corporation's capital leveraging
strategy.


--------------------------------------------------------------------------------

                                  (Continued)
                                                                             17.
<PAGE>   18



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


Interest on interest-bearing deposits and federal funds sold decreased $95,524
from $97,595 for the three months ended December 31, 1998, to $2,071 for the
three months ended December 31, 1999. The decrease was the result of lower
average balances of interest bearing deposits and federal funds sold primarily
due to using these funds for loan growth.

Dividends on FHLB stock increased for the three months ended December 31, 1999,
compared to the three months ended December 31, 1998, primarily due to a
substantial increase in the number of shares of FHLB stock owned. The increase
in FHLB stock was required to obtain the current level of advances.

Interest paid on deposits increased $55,738 from $534,862 for the three months
ended December 31, 1998, to $590,600 for the three months ended December 31,
1999. The increase in interest expense was the result of an increase in the cost
of funds and an increase in the average balance of deposits. The increase in the
cost of funds was primarily due to general market conditions and aggressively
pricing deposit products to attract funds for loan growth.

Interest on FHLB advances and other borrowings totaled $413,291 for the three
months ended December 31, 1999, compared to $40,318 for the three months ended
December 31, 1998. The increase in interest expense was the result of an
increase in the average balance of borrowed funds. The additional borrowings
were used to provide funding for fixed-rate loan demand and investment in
mortgage-backed securities to better leverage the Corporation's capital
position.

The Corporation maintains an allowance for loan losses in an amount that, in
management's judgment, is adequate to absorb probable losses in the loan
portfolio. While management utilizes its best judgment and information
available, the ultimate adequacy of the allowance is dependent on a variety of
factors, including the performance of the loan portfolio, the economy, changes
in real estate values and interest rates and the view of the regulatory
authorities toward loan classifications. The provision for loan losses is
determined by management as the amount to be added to the allowance for loan
losses after net charge-offs have been deducted to bring the allowance to a
level which is considered adequate to absorb probable losses inherent in the
loan portfolio. The amount of the provision is based on management's monthly
review of the loan portfolio and consideration of such factors as historical
loss experience, known and inherent risks in the nature and volume of the
portfolio, general prevailing economic conditions, changes in the size and
composition of the loan portfolio and specific borrower considerations,
including the ability of the borrower to repay the loan and the estimated value
of the underlying collateral.

The provision for loan losses totaled $30,000 for the three months ended
December 31, 1999 and 1998. The Corporation has not experienced significant net
charge-offs in any of the periods presented. The Corporation's low charge-off
history is the product of a variety of factors, including the Corporation's
underwriting guidelines, which generally require a loan-to-value or projected
completed value ratio of 80% for the purchase or construction of one- to
four-family residential properties and 75% for commercial real estate and land
loans, established income information and defined ratios of debt to income. The
allowance for loan losses totaled $383,000, or 0.48% of total loans, net of
loans in process and net deferred loan fees and costs at December 31, 1999,
compared with $323,000, or 0.44%, at June 30, 1999.

Noninterest income includes service fees and other miscellaneous income. For the
three months ended December 31, 1999, noninterest income totaled $72,770
compared to $47,952 for the three months ended December 31, 1998. During the
1999 period, the Corporation experienced an increase in service charges and fees
and miscellaneous operating income.

Noninterest expense totaled $676,803 for the three months ended December 31,
1999, compared to $544,656 for the same period in 1998. This increase was due
primarily to increase in salaries and employee benefits;



--------------------------------------------------------------------------------

                                  (Continued)
                                                                             18.
<PAGE>   19



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


occupancy and equipment expense; state franchise taxes; legal, audit and
supervisory exam fees; and, other expense. The increase in salaries and employee
benefits was the result of normal, annual merit increases, additional staffing
hired for the new branch in West Lafayette, Ohio, which opened in October 1999,
and the RRP which was implemented in October 1998 following its approval by
shareholders. The occupancy and equipment expense increase was due to increased
depreciation on furniture, fixtures and equipment and other costs related to the
new branch. The increase in state franchise taxes was due to higher capital
levels from the stock conversion. Legal, audit and supervisory exam fees and
other expense increases were primarily due to the change in the Corporation's
structure as a result of the stock conversion.

The volatility of income tax expense is primarily attributable to the change in
net income before income taxes. The provision for income taxes totaled $140,500,
for a 36.1% effective tax rate for the three months ended December 31, 1999
compared to $199,800, for a 36.0% effective tax rate for the three months ended
December 31, 1998.


COMPARISON OF RESULTS OF OPERATIONS FOR SIX MONTHS
  ENDED DECEMBER 31, 1999 AND DECEMBER 31, 1998

Net income was $505,035 for the six months ended December 31, 1999, compared to
$748,253 for the six months ended December 31, 1998. The decrease in net income
for the six months ended December 31, 1999 was the result of an increase in
noninterest expense and a slight decrease in net interest income.

Net interest income was $2,076,587 for the six months ended December 31, 1999,
compared to $2,161,402 for the six months ended December 31, 1998, representing
a decrease of $84,815, or 3.9%. The change in net interest income is
attributable to a larger increase in interest-bearing liabilities compared to
interest-earning assets due to a special capital distribution of $4.00 per
share, or $8.5 million, paid to shareholders in May 1999, which was funded with
borrowings.

Interest and fees on loans increased $485,585, or 18.0%, from $2,690,525 for the
six months ended December 31, 1998 to $3,176,110 for the six months ended
December 31, 1999. The increase was due to higher average balances of loans.

Interest earned on securities totaled $765,714 for the six months ended December
31, 1999, compared to $387,189 for the six months ended December 31, 1998. The
increase was a result of a higher average balance of securities partially offset
by a decrease in the yield earned. The higher average balance of securities was
due to the purchase of $20.0 million of mortgage-backed securities in March 1999
as part of the Corporation's capital leveraging strategy.

Interest on interest-bearing deposits and federal funds sold decreased $167,568
from $189,480 for the six months ended December 31, 1998, to $21,912 for the six
months ended December 31, 1999. The decrease was the result of lower average
balances of interest-bearing deposits and federal funds sold primarily due to
using those funds for loan growth.

Dividends on FHLB stock increased for the six months ended December 31, 1999,
compared to the six months ended December 31, 1998, primarily due to an increase
in the number of shares of FHLB stock owned. The increase in FHLB stock was
required to obtain the volume of advances.

Interest paid on deposits increased $109,374 from $1,060,001 for the six months
ended December 31, 1998, to $1,169,375 for the six months ended December 31,
1999. The increase in interest expense was the result of an increase in the cost
of funds and an increase in the average balance of deposits. The increase in the



--------------------------------------------------------------------------------

                                  (Continued)
                                                                             19.
<PAGE>   20



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


cost of funds was primarily due to general market conditions and aggressively
pricing deposit products to attract funds for loan growth.

Interest on FHLB advances and other borrowings totaled $781,615 for the six
months ended December 31, 1999, compared to $60,032 for the six months ended
December 31, 1998. The increase in interest expense was the result of an
increase in the average balance of borrowed funds. The additional borrowings
were used to provide funding for fixed-rate loan demand and investment in
mortgage-backed securities to better leverage the Corporation's capital
position.

The provision for loan losses totaled $60,000 for the six months ended December
31, 1999 and 1998.

For the six months ended December 31, 1999, noninterest income totaled $130,155
compared to $98,609 for the six months ended December 31, 1998. During the 1999
period, the Corporation experienced an increase in service charges and fees and
miscellaneous operating income.

Noninterest expense totaled $1,334,907 for the six months ended December 31,
1999, compared to $1,032,358 for the same period in 1998. This increase was due
primarily to increase in salaries and employee benefits; occupancy and equipment
expense; state franchise taxes; legal, audit and supervisory exam fees; and,
other expense. The increase in salaries and employee benefits was the result of
normal, annual merit increases, additional staffing hired for the new branch in
West Lafayette, Ohio, which opened in October 1999, and the RRP which began
October 1998 following its approval by shareholders. The occupancy and equipment
expense increase was due to increased depreciation on furniture, fixtures and
equipment and other costs related to the new branch. The increase in state
franchise taxes was due to higher capital levels from the stock conversion.
Legal, audit and supervisory exam fees and other expense increases were
primarily due to the change in the Corporation's structure as a result of the
stock conversion.

The volatility of income tax expense is primarily attributable to the change in
net income before income taxes. The provision for income taxes totaled $306,800
for the six months ended December 31, 1999 compared to $419,400 for the six
months ended December 31, 1998.




--------------------------------------------------------------------------------

                                  (Continued)
                                                                             20.
<PAGE>   21



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


LIQUIDITY AND CAPITAL RESOURCES

The Corporation's liquidity, primarily represented by cash and cash equivalents,
is a result of its operating, investing and financing activities. These
activities are summarized below for the six months ended December 31, 1999 and
1998.

<TABLE>
<CAPTION>
                                                                              Six Months
                                                                          Ended December 31,
                                                                     1999                   1998
                                                                     ----                   ----
                                                                       (Dollars in thousands)

<S>                                                                <C>                    <C>
Net income                                                         $   505                $   748
Adjustments to reconcile net income to net cash from
  operating activities                                                  (7)                   139
                                                                   -------                -------
Net cash from operating activities                                     498                    887
Net cash from investing activities                                  (6,505)                (5,956)
Net cash from financing activities                                   1,046                  3,645
                                                                   -------                -------
Net change in cash and cash equivalents                             (4,961)                (1,424)
Cash and cash equivalents at beginning of period                     8,564                  7,657
                                                                   -------                -------
Cash and cash equivalents at end of period                         $ 3,603                $ 6,233
                                                                   =======                =======
</TABLE>


The Corporation's principal sources of funds are deposits, loan repayments,
maturities of securities, and other funds provided by operations. The
Corporation also has the ability to borrow from the FHLB and other sources.
While scheduled loan repayments and maturing securities are relatively
predictable, interest rates, general economic conditions, and competition
influence early loan prepayments, mortgage-backed security prepayments and
deposit flows. The Corporation maintains investments in liquid assets based on
management's assessment of (1) need for funds, (2) expected deposit flows, (3)
yields available on short-term liquid assets and (4) objectives of the
asset/liability management program.

Office of Thrift Supervision ("OTS") regulations presently require the Bank to
maintain an average daily balance of investments in United States Treasury,
federal agency obligations and other investments having maturities of five years
or less in an amount equal to 4% of the sum of the Bank's average daily balance
of net withdrawable deposit accounts and borrowings payable in one year or less.
The liquidity requirement, which may be changed from time to time by the OTS to
reflect changing economic conditions, is intended to provide a source of
relatively liquid funds on which the Bank may rely, if necessary, to fund
deposit withdrawals or other short-term funding needs. At December 31, 1999, the
Bank's regulatory liquidity was 8.59%. At such date, the Corporation had
commitments to originate variable rate residential and commercial real estate
mortgage loans totaling $649,000 and fixed rate residential real estate mortgage
loans totaling $211,000. Loan commitments are generally for 30 days. The
Corporation considers its liquidity and capital reserves sufficient to meet its
outstanding short- and long-term needs. See Note 4 of the Notes to Consolidated
Financial Statements.

The Bank is required by regulations to meet certain minimum capital
requirements. Failure to meet minimum capital requirements can initiate certain
mandatory actions that, if undertaken, could have a direct material affect on
the Bank's financial statements. Current capital requirements call for tangible
capital of 1.5% of adjusted total assets, core capital (which, for the Bank,
consists solely of tangible capital) of 4.0% of adjusted total assets, except
for institutions with the highest examination rating and acceptable levels of
risk, and risk-based capital (which, for the Bank, consists of core capital and
general valuation allowances) of 8.0% of risk-weighted assets (assets are
weighted at percentage levels ranging from 0% to 100% depending on their
relative risk). At December 31, 1999, and June 30, 1999, the Bank complies with
all regulatory capital requirements. Based on the Bank's computed regulatory
capital ratios, the Bank is


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                                  (Continued)
                                                                             21.
<PAGE>   22



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

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considered well capitalized under the applicable requirements at December 31,
1999 and June 30, 1999. Management is not aware of any matter after the latest
regulatory exam that would cause the Bank's capital category to change.

At December 31, 1999 and June 30, 1999, the Bank's actual capital levels and
minimum required levels were as follows:

<TABLE>
<CAPTION>
                                                                    Minimum                      Minimum
                                                                Required To Be               Required To Be
                                                            Adequately Capitalized          Well Capitalized
                                                            Under Prompt Corrective      Under Prompt Corrective
                                        Actual                Action Regulations           Action Regulations
                                 Amount        Ratio         Amount         Ratio          Amount         Ratio
                                 ------        -----         ------         -----          ------         -----
                                                             (Dollars in thousands)
DECEMBER 31, 1999

<S>                            <C>             <C>          <C>              <C>        <C>               <C>
Total capital (to risk-
  weighted assets)             $  21,738       35.7%        $   4,878        8.0%       $    6,097        10.0%
Tier 1 (core) capital (to
  risk-weighted assets)           21,355       35.0             2,439        4.0             3,658         6.0
Tier 1 (core) capital (to
  adjusted total assets)          21,355       19.4             4,404        4.0             5,505         5.0
Tangible capital (to
  adjusted total assets)          21,355       19.4             1,651        1.5               N/A

JUNE 30, 1999

Total capital (to risk-
  weighted assets)             $  21,200       37.5%        $   4,520        8.0%       $    5,649        10.0%
Tier 1 (core) capital (to
  risk-weighted assets)           20,878       37.0             2,260        4.0             3,390         6.0
Tier 1 (core) capital (to
  adjusted total assets)          20,878       19.3             4,334        4.0             5,418         5.0
Tangible capital (to
  adjusted total assets)          20,878       19.3             1,625        1.5               N/A
</TABLE>


In addition to certain federal income tax considerations, OTS regulations impose
limitations on the payment of dividends and other capital distributions by
savings associations. Under OTS regulations applicable to converted savings
associations, the Bank is not permitted to pay a cash dividend on its common
shares if its regulatory capital would, as a result of payment of such
dividends, be reduced below the amount required for the liquidation account
established in connection with the Conversion, or below applicable regulatory
capital requirements prescribed by the OTS.


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                                  (Continued)
                                                                             22.
<PAGE>   23



                         HOME LOAN FINANCIAL CORPORATION
                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

--------------------------------------------------------------------------------


An application must be submitted and approval from the OTS must be obtained by a
subsidiary of a savings and loan holding company (1) if the proposed
distribution would cause total distributions for that year to exceed net income
for that calendar year to date plus the savings association's retained net
income for the preceding two years; (2) if the savings association will not be
at least adequately capitalized following the capital distribution; (3) if the
proposed distribution would violate a prohibition contained in any applicable
statute, regulation or agreement between the savings association and the OTS (or
the FDIC), or a condition imposed on the savings association in an OTS approved
application or notice; or, (4) if the savings association has not received
certain examination ratings from the OTS. If a savings association subsidiary of
a holding company is not required to file an application, it must file a notice
with the OTS.

In August 1999, the Board of Directors of the Corporation authorized the
purchase of up to 5% of the Corporation's outstanding common shares over a
one-year period. As of December 31, 1999, 67,800 shares had been purchased under
the 5% repurchase.


YEAR 2000

The Corporation did not experience any Year 2000 related computer system
problems, nor is the Corporation aware of any Year 2000 related problems with
any of its loan customers which would impact their ability to meet their debt
service requirements. The Corporation did not experience any significant unusual
deposit activity from its customers.


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                                  (Continued)
                                                                             23.
<PAGE>   24


                         HOME LOAN FINANCIAL CORPORATION
                           PART II - OTHER INFORMATION

--------------------------------------------------------------------------------

Item 1.    Legal Proceedings
           None

Item 2.    Changes in Securities and Use of Proceeds
           None

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)     Exhibit No. 27: Financial Data Schedule
           (b)     No current reports on Form 8-K were filed by the small
                   business issuer during the quarter ended December 31, 1999.


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                                                                             24.
<PAGE>   25


                        HOME LOAN FINANCIAL CORPORATION
                                   SIGNATURES

--------------------------------------------------------------------------------


Pursuant to the requirement of the Securities Exchange Act of 1934, the small
business issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




Date: February 10, 2000                  /s/ Robert C. Hamilton
-----------------------                  ----------------------
                                         Robert C. Hamilton
                                         President and Chief Executive Officer





Date: February 10, 2000                  /s/ Preston W. Bair
-----------------------                  -------------------
                                         Preston W. Bair
                                         Secretary, Treasurer and Chief
                                         Financial Officer





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                                                                             25.
<PAGE>   26


                                INDEX TO EXHIBITS
EXHIBIT
NUMBER          DESCRIPTION                                 PAGE NUMBER
------          -----------                                 -----------

   27           Financial Data Schedule                          27

















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                                                                             26.