<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

For the quarterly period ended December 31, 2002

         TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE 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)

As of February 7, 2003 the latest practical date, 1,642,745 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>

                         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

        Item 3. Controls and Procedures.............................................    23


Part II - Other Information

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

        Item 2. Changes in Securities...............................................    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

CERTIFICATIONS......................................................................    26
</TABLE>

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

                                                                              2.

<PAGE>


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

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

<TABLE>
<CAPTION>
                                                                   (Unaudited)
                                                                  December 31,       June 30,
                                                                      2002             2002
                                                                      ----             ----
<S>                                                           <C>               <C>
ASSETS
Cash and due from financial institutions                       $    2,421,540    $   2,716,138
Interest-bearing deposits in other financial institutions             110,774          215,647
                                                               --------------    -------------
    Total cash and cash equivalents                                 2,532,314        2,931,785
Securities available for sale                                       7,287,489        4,413,516
Mortgage-backed securities available for sale                       7,593,497        9,738,990
Federal Home Loan Bank stock                                        2,120,700        1,927,100
Loans, net                                                        118,218,166      111,017,080
Premises and equipment, net                                         1,209,404        1,278,592
Accrued interest receivable                                           682,769          651,707
Other assets                                                          359,998          322,366
                                                               --------------    -------------

        Total assets                                           $  140,004,337    $ 132,281,136
                                                               ==============    =============


LIABILITIES
Deposits                                                       $   80,699,491    $  79,773,087
Federal Home Loan Bank advances                                    37,409,874       28,802,335
Due to broker on security purchases                                        --        2,392,006
Accrued interest payable                                              632,685          590,581
Accrued expenses and other liabilities                                604,618          578,626
                                                               --------------    -------------
    Total liabilities                                             119,346,668      112,136,635

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                                         14,133,466       14,100,870
Retained earnings                                                  14,277,780       13,831,012
Unearned employee stock ownership plan shares                      (1,219,229)      (1,354,006)
Unearned recognition and retention plan shares                       (345,452)        (434,692)
Treasury stock, at cost - 629,805 shares at December 31, 2002
  and 599,188 shares at June 30, 2002                              (6,575,526)      (6,186,296)
Accumulated other comprehensive income                                386,630          187,613
                                                               --------------    -------------
    Total shareholders' equity                                     20,657,669       20,144,501
                                                               --------------    -------------

        Total liabilities and shareholders' equity             $  140,004,337    $ 132,281,136
                                                               ==============    =============
</TABLE>

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

          See accompanying notes to consolidated financial statements.
                                                                              3.

<PAGE>


                         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,                 December,
                                            ---------------------   -----------------------
                                               2002         2001        2002         2001
                                               ----         ----        ----         ----
<S>                                        <C>         <C>          <C>         <C>
Interest income
    Loans, including fees                   $2,266,619  $2,173,254   $4,482,062  $4,343,506
    Securities                                 195,256     218,628      393,068     448,587
    Dividends on FHLB stock and other           24,150      28,578       47,595      55,651
                                            ----------  ----------   ----------  ----------
        Total interest income                2,486,025   2,420,460    4,922,725   4,847,744

Interest expense
    Deposits                                   544,381     685,019    1,125,934   1,444,026
    FHLB advances                              465,346     394,848      921,179     822,533
                                            ----------  ----------   ----------  ----------
        Total interest expense               1,009,727   1,079,867    2,047,113   2,266,559
                                            ----------  ----------   ----------  ----------

Net interest income                          1,476,298   1,340,593    2,875,612   2,581,185
Provision for loan losses                       65,000      50,000       95,000      65,000
                                            ----------  ----------   ----------  ----------

Net interest income after provision for
    loan losses                              1,411,298   1,290,593    2,780,612   2,516,185

Noninterest income
    Service charges and other fees              71,438      83,928      146,728     158,674
    Net gains on sales of loans                 14,952       5,328       14,952      17,598
    Earnings from Coshocton County
      Title Agency                              69,235          --       99,886          --
    Other                                       44,025      34,464       70,663      63,204
                                            ----------  ----------   ----------  ----------
        Total noninterest income               199,650     123,720      332,229     239,476

Noninterest expense
    Salaries and employee benefits             537,022     480,343    1,052,091     949,917
    Occupancy and equipment                     78,242      66,414      156,158     123,791
    State franchise taxes                       43,500      36,000       87,000      72,200
    Computer processing                         51,096      36,410       97,869      72,379
    Legal, audit and supervisory exam fees      45,225      47,275       95,869      96,238
    Director fees                               22,060      22,040       44,120      42,840
    Other                                      104,118     140,789      207,328     256,244
                                            ----------  ----------   ----------  ----------
        Total noninterest expense              881,263     829,271    1,740,435   1,613,609
                                            ----------  ----------   ----------  ----------

Income before income taxes                     729,685     585,042    1,372,406   1,142,052
Income tax expense                             245,300     200,500      462,200     392,400
                                            ----------  ----------   ----------  ----------

Net income                                     484,385     384,542      910,206     749,652

Other comprehensive income (loss), net of tax  (58,424)   (137,398)   199,017       100,307
                                            ----------  ----------   ----------  ----------

Comprehensive income                        $  425,961  $  247,144   $1,109,223  $  849,959
                                            ==========  ==========   ==========  ==========

Basic earnings per common share             $     0.33  $     0.26   $     0.62  $     0.51
                                            ==========  ==========   ==========  ==========

Diluted earnings per common share           $     0.32  $     0.25   $     0.59  $     0.49
                                            ==========  ==========   ==========  ==========
</TABLE>

--------------------------------------------------------------------------------
          See accompanying notes to consolidated financial statements.

                                                                              4.

<PAGE>


                         HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
          CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                 Six Months Ended December 31, 2002 and 2001
                                 (Unaudited)

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


<TABLE>
<CAPTION>
                                                                                                         Accumulated
                                       Additional                  Unearned     Unearned                    Other
                                         Paid-In    Retained         ESOP          RRP       Treasury   Comprehensive
                                         Capital    Earnings        Shares       Shares       Shares    Income (Loss)       Total
                                         -------    --------        ------       ------       ------    -------------       -----
<S>                                  <C>          <C>           <C>            <C>           <C>           <C>          <C>
Balance at July 1, 2001              $ 14,083,151 $ 13,314,599  $ (1,619,532)  $ (616,545)   (5,841,263)   $   11,905   $19,332,315

Net income for the period                      --      749,652            --           --            --            --       749,652

Cash dividend - $.23 per share                 --     (350,857)           --           --            --            --      (350,857)

Commitment to release 12,540 ESOP
  shares                                       --         (882)      132,552           --            --            --       131,670

Compensation expense with respect to
  recognition and retention plan               --       (1,848)           --       95,034            --            --        93,186

Purchase of 39,330 treasury shares             --           --            --           --      (418,868)           --      (418,868)

Exercise of 5,000 stock options                        (32,488)                                  70,938                      38,450

Change in fair value of securities
  available for sale, net
  of tax effects                               --           --            --           --            --       100,307       100,307
                                     ------------ ------------  -------------  -----------  ------------   ----------   -----------
Balance at December 31, 2001         $ 14,083,151 $ 13,678,176  $ (1,486,980)  $ (521,511)  $(6,189,193)   $  112,212   $19,675,855
                                     ============ ============  =============  ===========  ============   ==========   ===========

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

                                                                              5.


</TABLE>


<PAGE>

                        HOME LOAN FINANCIAL CORPORATION
                     ITEM 1. CONDENSED FINANCIAL STATEMENTS
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
            (Continued) Six Months Ended December 31, 2002 and 2001
                                  (Unaudited)

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


<TABLE>
<CAPTION>
                                                                                                            Accumulated
                                       Additional                  Unearned     Unearned                     Other
                                         Paid-In      Retained       ESOP          RRP        Treasury   Comprehensive
                                         Capital      Earnings      Shares       Shares        Shares        Income         Total
                                         -------      --------      ------       ------        ------        ------         -----
<S>                                  <C>           <C>           <C>          <C>          <C>            <C>         <C>
Balance at July 1, 2002              $ 14,100,870   $13,831,012  $(1,354,006) $ (434,692)   $(6,186,296)  $ 187,613    $ 20,144,501

Net income for the period                      --       910,206           --          --             --          --         910,206

Cash dividend - $.285 per share                --      (432,160)          --          --             --          --        (432,160)

Commitment to release 12,750 ESOP
  shares                                       --        32,173      134,777          --             --          --         166,950

Compensation expense with respect to
  recognition and retention plan           28,014        (1,846)          --      89,240             --          --         115,408

Purchase of 39,697 treasury shares             --            --           --          --       (520,660)         --        (520,660)

Exercise of 9,080 stocks options            4,582       (61,605)          --          --        131,430          --          74,407

Change in fair value of securities
  available for sale, net of tax
  effects                                      --            --           --          --             --     199,017         199,017
                                     ------------   ------------ ------------ -----------   ------------  ---------    -------------
Balance at December 31, 2002         $ 14,133,466   $14,277,780  $(1,219,229) $ (345,452)   $(6,575,526)  $ 386,630    $ 20,657,669
                                     ============   ============ ============ ===========   ============  =========    =============
</TABLE>

--------------------------------------------------------------------------------
          See accompanying notes to consolidated financial statements.

                                                                              6.
<PAGE>


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

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


<TABLE>
<CAPTION>
                                                                          Six Months Ended
                                                                            December 31,
                                                                         2002           2001
                                                                         ----           ----
<S>                                                              <C>             <C>
Cash flows from operating activities
    Net income                                                    $     910,206   $    749,652
    Adjustments to reconcile net income to net cash
      from operating activities:
        Depreciation                                                     80,400         61,000
        Securities amortization and accretion                             4,954         (1,509)
        Provision for loan losses                                        95,000         65,000
        FHLB stock dividends                                            (46,900)       (57,900)
        Loss on disposal of premises and equipment                       16,523             --
        Gain on sale of other real estate owned                          (5,303)            --
        Compensation expense on ESOP shares                             166,950        131,670
        Compensation expense on RRP shares                               87,394         93,186
        Net change in accrued interest receivable and other
           assets                                                       (48,210)       (19,461)
        Net change in accrued expenses and other liabilities            (34,427)       166,752
        Net change in deferred loan fees                                    341          6,521
                                                                  -------------   ------------
           Net cash from operating activities                         1,226,928      1,194,911

Cash flows from investing activities
    Purchases of securities available for sale                       (5,095,801)            --
    Proceeds from maturities and principal paydowns of
        mortgage-backed securities available for sale                 2,271,900      1,352,568
    Net change in loans                                              (7,358,411)    (5,676,736)
    Purchase of FHLB Stock                                             (146,700)            --
    Premises and equipment expenditures                                 (61,922)      (103,798)
    Proceeds from disposition of premises and equipment                  34,187             --
    Proceeds from sale of other real estate owned                        79,400             --
                                                                  -------------   ------------
        Net cash from investing activities                          (10,277,347)    (4,427,966)

Cash flows from financing activities
    Net change in deposits                                              926,404      4,463,954
    Net change in short-term FHLB advances                            1,450,000       (750,000)
    Proceeds from long-term FHLB advances                            11,300,000      3,000,000
    Repayments of long-term FHLB advances                            (4,142,461)    (2,000,000)
    Cash dividends paid                                                (432,160)      (350,857)
    Purchase of treasury stock                                         (520,660)      (418,868)
    Proceeds from exercise of stock options                              69,825         38,450
                                                                  -------------   ------------
        Net cash from financing activities                            8,650,948      3,982,679
                                                                  -------------   ------------

Net change in cash and cash equivalents                                (399,471)       749,624
    Cash and cash equivalents at beginning of period                  2,931,785      2,598,068
                                                                  -------------   ------------

Cash and cash equivalents at end of period                        $   2,532,314   $  3,347,692
                                                                  =============   ============

Supplemental disclosures of cash flow information
    Interest                                                      $   2,005,009   $  2,255,711
    Income taxes                                                        475,000        295,978

Supplemental noncash disclosure
    Transfer from loans to other real estate owned                       61,984             --
</TABLE>

--------------------------------------------------------------------------------
          See accompanying notes to consolidated financial statements.

                                                                              7.

<PAGE>


                         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
("HLFC") at December 31, 2002, 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 accounting
principles generally accepted in the United States of America that might
otherwise be necessary in the circumstances, and should be read in conjunction
with the consolidated financial statements and notes thereto of HLFC for the
fiscal year ended June 30, 2002. The accounting policies of HLFC described in
the notes to the consolidated financial statements contained in HLFC's June 30,
2002, consolidated financial statements have been consistently followed in
preparing this Form 10-QSB.

The consolidated financial statements include the accounts of HLFC and its
wholly owned subsidiaries, The Home Loan Savings Bank ("Bank"), a
state-chartered stock savings and loan association, and Home Loan Financial
Services, Inc., an Ohio corporation providing insurance and investment services.
HLFC also acquired a 33% ownership interest in Coshocton County Title Agency,
which is accounted for under the equity method of accounting. These entities are
together referred to as the Corporation. All significant intercompany
transactions and balances have been eliminated.

The Bank provides financial services through its main and branch offices in
Coshocton, Ohio and a branch office in West Lafayette, Ohio. The Bank's primary
deposit products are checking, savings and term certificate accounts, and its
primary lending products are residential mortgage, nonresidential real estate
and consumer loans. Substantially all loans are secured by specific items of
collateral including business assets, consumer assets and real estate.
Commercial loans are expected to be repaid from cash flow from operations of
businesses. Real estate loans are secured by both residential and commercial
real estate. Substantially all revenues are derived from financial institution
products and services in Coshocton County and its contiguous areas. Management
considers the Corporation to operate in one segment, banking. Other financial
instruments which potentially represent concentrations of credit risk include
deposit accounts in other financial institutions.

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

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

                                                                              8.

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

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


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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.

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other
Intangible Assets," which addresses the accounting for such assets arising from
prior and future business combinations. Upon the adoption of this Statement,
goodwill arising from business combinations will no longer be amortized, but
rather will be assessed regularly for impairment, with any such impairment
recognized as a reduction to earnings in the period identified. Other identified
intangible assets, such as core deposit intangible assets, will continue to be
amortized over their estimated useful lives. The Corporation was required to
adopt this Statement on July 1, 2002. The adoption of this Statement did not
have an impact on the Corporation's financial statements, because the
Corporation does not have any intangible assets.

The FASB issued SFAS No. 143, "Asset Retirement Obligations." The provisions of
this standard apply to asset retirements beginning July 1, 2002. The adoption of
this standard did not have an impact on the Corporation's financial position or
results of operations.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," which amends SFAS No. 121 by addressing business
segments accounted for as discontinued operations under Accounting Principles
Board Opinion No. 30. This Statement was effective July 1, 2002 and did not have
an impact on the Corporation's financial position or results of operations.

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities". This Statement addresses the timing of
recognition of a liability for exit and disposal costs at the time a liability
is incurred, rather than at a plan commitment date, as previously required. Exit
or disposal costs will be measured at fair value, and the recorded liability
will be subsequently adjusted for changes in estimated cash flows. This
Statement is required to be effective for exit or disposal activities entered
after December 31, 2002, and early adoption is encouraged. The Corporation does
not believe this statement will have a material effect on its financial position
or results of operations.

SFAS No. 147, "Acquisitions of Certain Financial Institutions" became effective
October 1, 2002. This standard requires any unidentifiable intangible asset
previously recorded as the result of a business combination to be reclassified
as goodwill and the amortization of this asset will cease. The adoption of this
Statement did not have an impact on the Corporation's financial position or
results of operations.

SFAS No. 148, "Accounting for Stock Based Compensation - Transition and
Disclosure," was issued in December 2002. SFAS No. 148 amends SFAS No. 123 to
provide alternative methods of a voluntary change to the fair value based method
of accounting for stock-based employee compensation. It also amends the
disclosure requirements of SFAS No. 123 to require prominent disclosures in both
annual and interim financial statements about the method of accounting for
stock-based employee compensation and the offset of the method used on reported
results. The provisions of this statement are effective for annual financial
statements for fiscal years ending and interim periods beginning after December
15, 2002. The adoption of this statement will result in more prominent
disclosure of the Corporation's stock option plan.

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

                                                                              9.

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

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

NOTE 2 - SECURITIES

Securities at December 31, 2002 and June 30, 2002 were as follows.

<TABLE>
<CAPTION>
                                         Estimated        Gross         Gross
                                           Fair        Unrealized    Unrealized
                                           Value          Gains        Losses
                                       ------------   -----------   ------------
<S>                                   <C>            <C>           <C>
December 31, 2002
Securities available for sale
    U.S. Government agencies           $  2,044,740   $    43,373   $         --
    Obligations of state and
      political subdivisions              5,242,749       152,233             --
                                       ------------   -----------   ------------

                                       $  7,287,489   $   195,606   $         --
                                       ============   ===========   ============
Mortgage-backed securities
  available for sale
    U.S. Government agencies           $  7,593,497   $   390,083   $         --
                                       ============   ===========   ============

June 30, 2002
Securities available for sale
    U.S. Government agencies           $  2,022,390   $    20,582   $         --
    Obligations of state and
      political subdivisions              2,391,126            --             --
                                       ------------   -----------   ------------

                                       $  4,413,516   $    20,582   $         --
                                       ============   ===========   ============
Mortgage-backed securities
  available for sale
    U.S. Government agencies           $  9,738,990   $   263,680   $         --
                                       ============   ===========   ============
</TABLE>


Contractual maturities of securities at December 31, 2002, 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
                                                              Fair
                                                             Value
                                                          ------------
<S>                                                      <C>
         Due in one year or less                          $  1,015,870
         Due after one year through five years               1,028,870
         Due after five years through ten years              1,671,421
         Due after ten years                                 3,571,328
         Mortgage-backed securities                          7,593,497
                                                          ------------

                                                          $ 14,880,986
                                                          ============
</TABLE>

No securities were sold during the three or six months ended December 31, 2002
or 2001. At December 31, 2002 and June 30, 2002, securities with a carrying
value of $1,015,870 and $1,008,050 were pledged to secure public funds.

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

                                                                             10.

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

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



NOTE 3 - LOANS

Loans at December 31, 2002 and June 30, 2002 were as follows.

<TABLE>
<CAPTION>
                                                                    December 31,      June 30,
                                                                        2002            2002
                                                                        ----            ----
<S>                                                                <C>           <C>
    Residential real estate loans:
        1 - 4 family                                                $ 79,084,038  $ 74,941,984
        Multi-family                                                     336,626       346,933
        Home equity                                                    4,114,574     4,005,457
    Nonresidential real estate                                        11,134,685    10,549,897
    Real estate construction                                           2,914,933     3,096,990
    Land                                                               2,281,060     1,357,999
                                                                    ------------  ------------
        Total real estate loans                                       99,865,916    94,299,260
    Commercial loans                                                   5,062,336     4,005,222
    Consumer and other loans:
        Home improvement                                               4,155,279     4,320,019
        Automobile                                                     4,321,689     5,127,570
        Deposit                                                          224,608       312,097
        Credit card                                                      526,037       543,006
        Other                                                          6,117,078     4,574,437
                                                                    ------------  ------------
           Total consumer and other loans                             15,344,691    14,877,129
                                                                    ------------  ------------
    Total loans                                                      120,272,943   113,181,611
    Less:
        Allowance for loan losses                                       (507,360)     (499,467)
        Loans in process                                              (1,377,770)   (1,495,758)
        Net deferred loan fees and costs                                (169,647)     (169,306)
                                                                    ------------  ------------

                                                                    $118,218,166  $111,017,080
                                                                    ============  ============
</TABLE>

Activity in the allowance for loan losses was as follows.

<TABLE>
<CAPTION>
                                         Three Months Ended              Six Months Ended
                                            December 31,                   December 31,
                                            ------------                   ------------
                                        2002            2001              2002          2001
                                        ----            ----              ----          ----
<S>                                  <C>             <C>               <C>           <C>
    Balance at beginning of period   $ 501,144       $ 468,695         $ 499,467     $ 462,292
    Provision for losses                65,000          50,000            95,000        65,000
    Charge-offs                        (60,828)        (43,707)          (89,211)      (61,294)
    Recoveries                           2,044           1,379             2,104        10,369
                                     ---------       ---------         ---------     ---------

    Balance at end of period         $ 507,360       $ 476,367         $ 507,360     $ 476,367
                                     =========       =========         =========     =========
</TABLE>


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

                                                                             11.

<PAGE>

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

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


NOTE 3 - LOANS (Continued)

Nonperforming loans consisted of loans past due over 90 days still accruing
interest totaling approximately $276,000 and $1,311,000 at December 31, 2002 and
June 30, 2002, respectively. The Corporation had no nonaccrual loans at December
31, 2002 or June 30, 2002. Nonperforming loans include smaller balance
homogeneous loans, such as residential mortgage and consumer loans, which are
collectively evaluated for impairment.

As of December 31, 2002 and June 30, 2002 and for the three and six months ended
December 31, 2002 and 2001, loans required to be evaluated for impairment on an
individual loan basis within the scope of SFAS No. 114 were not material.


NOTE 4 - FHLB ADVANCES

At December 31, 2002, the Bank had a cash management line of credit enabling it
to borrow up to $10,000,000 from the Federal Home Loan Bank of Cincinnati
("FHLB"). The line of credit must be renewed on an annual basis. Borrowings
outstanding on this line of credit included in the table below totaled
$1,450,000 at December 31, 2002. No borrowings were outstanding on this line of
credit at June 30, 2002. The Bank also had fixed-rate term advances, convertible
fixed-rate advances and select pay mortgage-matched advances at December 31,
2002. As a member of the FHLB system and based upon the Bank's current FHLB
stock ownership, the Bank has the ability to obtain borrowings up to a total of
$42,414,000, including the cash management line of credit. Advances under the
borrowing agreements are collateralized by the Bank's FHLB stock and $46,762,342
of qualifying mortgage loans. The interest rates on the convertible fixed-rate
advances are fixed for a specified number of years, then are convertible at the
option of the FHLB. If the convertible option is exercised, the advance may be
prepaid without penalty. The select pay mortgage-matched advances require
monthly principal and interest payments and annual additional principal
payments.


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

                                                                             12.

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

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



NOTE 4 - FHLB ADVANCES (Continued)

At period-end, advances from the FHLB were as follows.

<TABLE>
<CAPTION>
                                                             December 31,    June 30,
                                                                 2002          2002
                                                                 ----          ----
<S>                                                         <C>           <C>
        Cash management line of credit, 2.03% at
          December 31, 2002                                  $ 1,450,000   $         --
        Fixed-rate advance, 6.77%, due September 2002                 --      2,000,000
        Fixed-rate advance, 3.64%, due September 2002                 --      2,000,000
        Fixed-rate advance, 3.62%, due March 2007              2,000,000             --
        Convertible, fixed-rate advance until September
          2001, 5.37%, due March 2004                         10,000,000     10,000,000
        Convertible, fixed-rate advance until June 2003,
          5.66%, due June 2008                                 1,000,000      1,000,000
        Convertible, fixed-rate advance until September 2003,
          5.18%, due September 2008                            2,000,000      2,000,000
        Convertible, fixed-rate advance until March 2004,
          5.66%, due March 2009                                4,000,000      4,000,000
        Convertible, fixed-rate advance until September 2001,
          6.23%, due March 2010                                1,000,000      1,000,000
        Convertible, fixed-rate advance until September 2001,
          6.11%, due March 2010                                4,000,000      4,000,000
        Convertible, fixed-rate advance until July 2004,
          4.39%, due July 2012                                 5,000,000             --
        Select payment mortgage matched advance 3.89%
          due October 2012                                     1,479,475             --
        Select payment mortgage matched advance, 10% annual
          prepayment, 3.78%, due October 2017                  1,487,569             --
        Select payment mortgage matched advance, 10% annual
          prepayment, 4.63%, due January 2012                    463,169        483,452
        Select payment mortgage matched advance, 5% annual
          prepayment, 4.90%, due January 2012                    463,655        483,681
        Select payment mortgage matched advance, 5% annual
          prepayment, 4.99%, due February 2012                   467,174        487,033
        Select payment mortgage matched advance, 10% annual
          prepayment, 4.72%, due February 2012                   466,731        486,849
        Select payment mortgage matched advance, 15% annual
          prepayment, 4.72%, due May 2012                        309,952        322,876
        Select payment mortgage matched advance, 10% annual
          prepayment, 5.50%, due May 2022                        304,950        309,288
        Select payment mortgage matched advance, 10% annual
          prepayment, 4.85%, due May 2012                        124,020        129,156
        Select payment mortgage matched advance, 5% annual
          prepayment, 5.32%, due July 2022                        98,817        100,000
        Select payment mortgage matched advance, 5% annual
         prepayment, 3.99% due November 2012                     198,641             --
        Select payment mortgage matched advance, 5% annual
         prepayment, 4.53%, due November 2017                  1,095,721             --
                                                             -----------   ------------

                                                             $37,409,874   $ 28,802,335
                                                             ===========   ============
</TABLE>

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

                                                                             13.

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

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

NOTE 4 - FHLB ADVANCES (Continued)

At year-end, the scheduled maturities of advances from the FHLB were as follows.

<TABLE>
<S>                                                         <C>
    Period ended December 31, 2003                           $ 2,355,020
                           2004                               10,828,991
                           2005                                  762,077
                           2006                                  703,253
                           2007                                2,651,619
                           Thereafter                         20,108,914
                                                             -----------

                                                             $37,409,874
                                                             ===========
</TABLE>


NOTE 5 - OFF-BALANCE SHEET ACTIVITIES

Loss contingencies, including claims and legal actions arising in the ordinary
course of business, are recorded as liabilities when the likelihood of loss is
probable and an amount or range of loss can be reasonably estimated. Management
does not believe there were any such matters that will have a material effect on
the financial statements as of December 31, 2002.

Some financial instruments, such as loan commitments, credit lines, letters of
credit and overdraft protection, are issued to meet customer financing needs.
These are agreements to provide credit or to support the credit of others, as
long as conditions established in the contract are met, and usually have
expiration dates. Commitments may expire without being used. Off-balance sheet
risk to credit loss exists up to the face amount of these instruments, although
material losses are not anticipated. The same credit policies are used to make
such commitments as are used for loans, including obtaining collateral at the
exercise of the commitment.

A summary of the notional or contractual amounts of financial instruments with
off-balance sheet risk at December 31, 2002 and June 30, 2002 follows.


<TABLE>
<CAPTION>
                                                                 December 31,     June 30,
                                                                     2002           2002
                                                                     ----           ----
<S>                                                            <C>             <C>
Lines of credit-variable rate                                  $  4,508,000    $ 4,085,000
1-4 family residential real estate-variable rate                    624,000        167,000
1-4 family residential real estate-fixed rate                       476,000        844,000
Commercial real estate-variable rate                                400,000        560,000
Credit card arrangements-fixed rate                               1,458,000      1,387,000
</TABLE>

The interest rate on fixed-rate commitments ranged from 5.625% to 6.250% at
December 31, 2002 and ranged from 6.75% to 13.90% at June 30, 2002. The interest
rates on variable rate commitments ranged from 4.75% to 18.99% at December 31,
2002 and 5.25% to 18.99% at June 30, 2002.

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

                                                                             14.

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

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

NOTE 6 - EARNINGS PER SHARE

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

<TABLE>
<CAPTION>
                                              Three Months Ended          Six Months Ended
                                                 December 31,               December 31,
                                                 ------------               ------------
                                               2002          2001         2002          2001
                                               ----          ----         ----          ----
<S>                                        <C>          <C>           <C>          <C>
Basic
    Net income                             $   484,385  $   384,542   $   910,206  $   749,652
                                           ===========  ===========   ===========  ===========

    Weighted average common shares
      outstanding                            1,626,231    1,663,290     1,630,798    1,672,984
    Less:  Average unallocated ESOP shares    (118,245)    (143,397)     (121,307)    (146,532)
    Less:  Average nonvested RRP shares        (28,580)     (42,379)      (30,315)     (44,226)
                                           -----------  -----------   -----------  -----------
    Average shares                           1,479,406    1,477,514     1,479,177    1,482,226
                                           ===========  ===========   ===========  ===========

    Basic earnings per common share        $      0.33  $      0.26   $      0.62  $      0.51
                                           ===========  ===========   ===========  ===========

Diluted
    Net income                             $   484,385  $   384,542   $   910,206  $   749,652
                                           ===========  ===========   ===========  ===========

    Weighted average common shares
      outstanding  for basic earnings per
      common share                           1,479,406    1,477,514     1,479,177    1,482,226
    Add:  Dilutive effects of average
      nonvested RRP shares, net of tax
      benefits                                     542           --           315           --
    Add:  Dilutive effects of assumed
       exercises of stock options               50,390       44,486        51,188       44,675
                                           -----------  -----------   -----------  -----------
    Average shares and dilutive potential
      common shares                          1,530,338    1,522,000     1,530,680    1,526,901
                                           ===========  ===========   ===========  ===========

    Diluted earnings per common share      $      0.32  $      0.25   $      0.59  $      0.49
                                           ===========  ===========   ===========  ===========
</TABLE>

Unearned RRP shares did not have a dilutive effect on earnings per share for the
three and six months ended December 31, 2001, as the fair value of the RRP
shares on the date of grant was greater than the average market price for the
period.


NOTE 7 - OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss) components and related taxes were as follows.

<TABLE>
<CAPTION>
                                              Three Months Ended          Six Months Ended
                                                 December 31,               December 31,
                                                 ------------               ------------
                                               2002          2001         2002          2001
                                               ----          ----         ----          ----
<S>                                        <C>          <C>           <C>          <C>
Unrealized holding gains (losses) on
  available-for-sale securities            $   (88,635) $  (208,178)  $   301,427  $   151,980
Tax effect                                      30,211       70,780      (102,410)     (51,673)
                                           -----------  -----------   -----------  -----------

Other comprehensive income (loss)          $   (58,424) $  (137,398)  $   199,017  $   100,307
                                           ===========  ===========   ===========  ===========
</TABLE>

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

                                                                             14.

<PAGE>


                         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, 2002 compared to June
30, 2002, and the consolidated results of operations for the three and six
months ended December 31, 2002 compared with the same periods in 2001. 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 report 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 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, 2002 were $140.0 million compared to $132.3 million
at June 30, 2002, an increase of $7.7 million, or 5.8%. The increase in total
assets was primarily in loans, which increased $7.2 million.

Securities available for sale increased from $4.4 million at June 30, 2002 to
$7.3 million at December 31, 2002. To leverage excess capital, the Corporation
borrowed funds and invested in obligations of states and political subdivisions
and purchased an additional $2.7 million during the six months ended December
31, 2002. Mortgage-backed securities, which totaled $9.7 million at June 30,
2002, declined $2.1 million to $7.6 million due to principal paydowns.

Loan growth, which totaled $7.2 million, occurred primarily in real estate
loans, and in particular, in one- to four-family residential real estate loans
and loans secured by land. The growth was due to competitive pricing in the
current low interest rate environment. Beginning in the quarter ended June 30,
2002, management elected to stop selling the one- to four-family residential
real estate loans and portfolio them using select-payment mortgage matched
advances from the Federal Home Loan Bank, which provides a similar repayment
stream, as a funding source. However, beginning in the quarter ended December
31, 2002, management elected to sell one-to-four family residential real estate
loans again due to the current interest rate environment. Commercial loans
increased $1.1 million due to efforts to attract business customers. Consumer
and other loans had a modest increase since June 30, 2002.

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

                                                                             16.

<PAGE>

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

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

Total deposits increased $0.9 million from $79.8 million at June 30, 2002, to
$80.7 million at December 31, 2002. NOW and money market accounts increased by
$498,000, savings accounts increased by $899,000 and certificates of deposit
increased by $540,000. These increases were partially offset by a $1.0 million
decrease in noninterest bearing demand accounts. The activity during the quarter
reversed a trend that had occurred throughout fiscal 2002 where customers were
moving funds out of certificates of deposit into transaction accounts. As a
result of the shift in accounts, the certificates of deposit portfolio as a
percent of total deposits increased from 49.9% at June 30, 2002 to 50.0% at
December 31, 2002. Almost all certificates of deposit mature in less than five
years, with the majority maturing in the next year.

Federal Home Loan Bank ("FHLB") advances totaled $37.4 million at December 31,
2002, compared to $28.8 million at June 30, 2002, an increase of $8.6 million.
The Corporation utilized the additional advances to fund loan growth and
purchase obligations of states and political subdivisions that are classified as
available for sale. At December 31, 2002, $1.5 million was outstanding on the
Bank's $10.0 million cash-management line of credit with the FHLB. No borrowings
were outstanding under the line of credit at June 30, 2002. During the six
months ended December 31, 2002, two $2.0 million, fixed-rate advances matured.
The Corporation added a $2.0 million fixed-rate advance, a $5.0 million
fixed-rate convertible advance and select pay mortgage-matched advances totaling
$4.3 million.


COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS
  ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001

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 $484,385 for the three months ended December 31, 2002, compared
to $384,542 for the three months ended December 31, 2001. The increase in net
income for the three months ended December 31, 2002 was the result of an
increase in net interest income and an increase in noninterest income, partially
offset by an increase in noninterest expense.

Net interest income totaled $1,476,298 for the three months ended December 31,
2002, compared to $1,340,593 for the three months ended December 31, 2001,
representing an increase of $135,705, or 10.1%. The net interest margin
decreased slightly from 4.40% for the three months ended December 31, 2001 to
4.37% for the three months ended December 31, 2002.

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

                                                                             17.

<PAGE>

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

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

Interest and fees on loans increased $93,365, or 4.3%, from $2,173,254 for the
three months ended December 31, 2001 to $2,266,619 for the three months ended
December 31, 2002. The increase was due to a higher average balance of loans
resulting from strong loan demand partially offset by a decline in yield on
loans.

Interest earned on securities decreased $23,372, or 10.7%, from $218,628 for the
three months ended December 31, 2001 to $195,255 for the three months ended
December 31, 2001. The decrease was a result of a decline in the yield on
securities.

Interest expense on deposits decreased $140,638 from $685,019 for the three
months ended December 31, 2001, to $544,381 for the three months ended December
31, 2002. The decrease in interest expense was the result of a decline in the
cost of funds more than offsetting an increase in the average balance of
deposits. The decrease in the cost of funds was primarily due to general market
conditions.

Interest on FHLB advances increased $70,498 or 17.9%, from $394,848 for the
three months ended December 31, 2001, compared to $465,346 for the three months
ended December 31, 2002. The increase in interest expense was the result of an
increase in the average balance of FHLB advances partially offset by a decrease
in interest rates on advances. The additional borrowings were used to provide
funding for loan growth and purchase obligations of state and political
subdivisions.

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 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, 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 for the three months ended December 31, 2002 and
December 31, 2001 totaled $65,000 and $50,000, respectively. The allowance for
loan losses totaled $507,000 or 0.43% of gross loans, at December 31, 2002,
compared to $499,000, or 0.45% of gross loans, at June 30, 2002. Nonperforming
loans have decreased from $1.3 million at June 30, 2002 to $276,000 primarily
due to two large loans totaling approximately $738,000 being brought current.
The Corporation has not experienced significant 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
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.

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

                                                                             18.

<PAGE>

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

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


For the three months ended December 31, 2002, noninterest income totaled
$199,650 compared to $123,720 for the three months ended December 31, 2001. The
primary reason for the increase is due to the Corporation's earnings from its
33% ownership in Coshocton County Title Agency ("CCTA"). CCTA was formed in June
2002 by the Corporation and two other investors to provide title insurance on
properties. The Corporation's income from its ownership of CCTA during the three
months ended December 31, 2002 is the result of the high level of loan refinance
activity in this current low interest rate environment. Beginning in the quarter
ended June 30, 2002, management elected to stop selling the one- to four-family
residential real estate loans and portfolio them using select-payment mortgage
matched advances from the Federal Home Loan Bank, which provides a similar
repayment stream, as a funding source. However, beginning in the quarter ended
December 31, 2002, management elected to sell one-to-four family residential
real estate loans again due to the current interest rate environment.

Noninterest expense totaled $881,263 for the three months ended December 31,
2002, compared to $829,271 for the same period in 2001. This increase was due
primarily to increases in salaries and employee benefits, occupancy and
equipment, state franchise taxes and computer processing. Salaries and employee
benefits expense increased $56,679, or 11.8% as the result of normal annual
merit increases, an increase in the cost of health insurance and additional
expense recognized for the Corporation's ESOP because of the increase in the
Corporation's average stock price compared to last year. Occupancy and equipment
expense increased $11,828, or 17.8%, as a result of increases in depreciation
and maintenance contracts related to the Corporation's change of data processing
vendors in February 2002. The increase in computer processing was also due to
the Corporation's change in core data processors and the additional features of
the new system. State franchise taxes increased because of the higher capital
levels of the Bank. Other noninterest expense declined as the prior three month
period included conversion costs related to the change of data processing
vendors.

The volatility of income tax expense is primarily attributable to the change in
income before income taxes, the impact the Corporation's stock price has on the
stock-based employee benefit plans, and, for the current period, tax exempt
income on obligations of state and political subdivisions. The provision for
income taxes totaled $245,300 for the three months ended December 31, 2002,
compared to $200,500 for the three months ended December 31, 2001. The effective
tax rate was 33.6% for the three months ended December 31, 2002, compared to
34.3% for the three months ended December 31, 2001.


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

                                                                             19.

<PAGE>

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

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



COMPARISON OF RESULTS OF OPERATIONS FOR THE SIX MONTHS
  ENDED DECEMBER 31, 2002 AND DECEMBER 31, 2001

Net income was $910,206 for the six months ended December 31, 2002, compared to
$749,652 for the six months ended December 31, 2001. The increase in net income
for the six months ended December 31, 2002 was the result of an increase in net
interest income and an increase in noninterest income, partially offset by an
increase in noninterest expense.

Net interest income totaled $2,875,612 for the six months ended December 31,
2002, compared to $2,581,185 for the six months ended December 31, 2001,
representing an increase of $294,427, or 11.4%. The net interest margin
increased from 4.26% for the six months ended December 31, 2001 to 4.31% for the
six months ended December 31, 2002.

Interest and fees on loans increased $138,556, or 3.2%, from $4,343,506 for the
six months ended December 31, 2001 to $4,482,062 for the six months ended
December 31, 2002. The increase was due to a higher average balance of loans
resulting from strong loan demand partially offset by a decline in yield on
loans.

Interest earned on securities totaled $393,068 for the six months ended December
31, 2002, compared to $448,587 for the six months ended December 31, 2001. The
decrease was a result of a decline in the yield on securities.

Interest expense on deposits decreased $318,092 from $1,444,026 for the six
months ended December 31, 2001, to $1,125,934 for the six months ended December
31, 2002. The decrease in interest expense was the result of a decline in the
cost of funds more than offsetting an increase in the average balance of
deposits. The decrease in the cost of funds was primarily due to general market
conditions.

Interest on FHLB advances totaled $921,179 for the six months ended December 31,
2002, compared to $822,533 for the six months ended December 31, 2001. The
increase in interest expense was the result of an increase in the average
balance of FHLB advances partially offset by a decrease in interest rates on
advances. The additional borrowings were used to provide funding for loan growth
and purchase obligations of state and political subdivisions.

The provision for loan losses for the six months ended December 31, 2002 and
December 31, 2001 totaled $95,000 and $65,000, respectively. The allowance for
loan losses totaled $507,000 or 0.43% of gross loans, at December 31, 2002,
compared to $499,000, or 0.45% of gross loans, at June 30, 2002. The reason for
the increase is due to higher net charge-offs for the six months ended December
31, 2002, compared to the six months ended December 31, 2001. However, the
allowance for loan losses as a percentage of loans at December 31, 2002, is
lower than June 30, 2002, due to a decline in nonperforming loans.

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

                                                                             20.

<PAGE>

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

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

For the six months ended December 31, 2002, noninterest income totaled $332,229
compared to $239,476 for the six months ended December 31, 2001. The primary
reason for the increase is due to the Corporation's earnings from its 33%
ownership in CCTA. The Corporation's income from its ownership of CCTA during
the six months ended December 31, 2002 is the result of the high level of loan
refinance activity in this current low interest rate environment.

Noninterest expense totaled $1,740,435 for the six months ended December 31,
2002, compared to $1,613,609 for the same period in 2001. This increase was due
primarily to increases in salaries and employee benefits, occupancy and
equipment, state franchise taxes and computer processing. Salaries and employee
benefits expense increased $102,174, or 10.8% as the result of normal annual
merit increases, an increase in the cost of health insurance and additional
expense recognized for the Corporation's ESOP because of the increase in the
Corporation's average stock price compared to last year. Occupancy and equipment
expense increased $32,367, or 26.1%, as a result of increases in depreciation
and maintenance contracts related to the Corporation's change of data processing
vendors in February 2002. The increase in computer processing was also due to
the Corporation's change in core data processors and the additional features of
the new system. State franchise taxes increased because of the higher capital
levels of the Bank. Other noninterest expense declined as the prior six month
period included conversion costs related to the change of data processing
vendors.

The volatility of income tax expense is primarily attributable to the change in
income before income taxes, the impact the Corporation's stock price has on the
stock-based employee benefit plans, and, for the current period, tax exempt
income on obligations of state and political subdivisions. The provision for
income taxes totaled $462,200 for the six months ended December 31, 2002,
compared to $392,400 for the six months ended December 31, 2001. The effective
tax rate was 33.7% for the six months ended December 31, 2002, compared to 34.4%
for the six months ended December 31, 2001.

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, 2002 and
2001.

<TABLE>
<CAPTION>
                                                                             Six Months
                                                                         Ended December 31,
                                                                         2002           2001
                                                                         ----           ----
<S>                                                                  <C>           <C>
                                                                       (Dollars in thousands)
Net income                                                            $      910    $      750
Adjustments to reconcile net income to net cash from
  operating activities                                                       334           445
                                                                      ----------    ----------
Net cash from operating activities                                         1,244         1,195
Net cash from investing activities                                       (10,295)       (4,428)
Net cash from financing activities                                         8,651         3,983
                                                                      ----------    ----------
Net change in cash and cash equivalents                                     (400)          750
Cash and cash equivalents at beginning of period                           2,932         2,598
                                                                      ----------    ----------

Cash and cash equivalents at end of period                            $    2,532    $    3,348
                                                                      ==========    ==========
</TABLE>

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

                                                                             21.

<PAGE>

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

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

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.

At December 31, 2002, the Corporation had commitments to originate variable and
fixed-rate residential and commercial real estate mortgage loans totaling
$682,000. 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 5 of the Notes to Consolidated Financial Statements.

The Bank is required by regulations to meet certain minimum capital
requirements. 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 3.0% to 4.0% of adjusted total assets (depending on the
Bank's examination rating) 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, 2002, and June 30, 2002, the
Bank complied with all regulatory capital requirements. Based on the Bank's
computed regulatory capital ratios, the Bank is considered well capitalized
under the applicable requirements at December 31, 2002 and June 30, 2002.
Management is not aware of any matter subsequent to the last regulatory
notification that would cause the Bank's capital category to change.

At December 31, 2002 and June 30, 2002, the Bank's actual capital levels and
minimum required levels were as follows.

<TABLE>
<CAPTION>
                                                                                To Be
                                                                          Well Capitalized
                                                     For Capital       Under Prompt Corrective
                                 Actual           Adequacy Purposes      Action Regulations
                          Amount      Ratio       Amount      Ratio       Amount       Ratio
                          ------      -----       ------      -----       ------       -----
                                                (Dollars in thousands)
<S>                      <C>          <C>       <C>            <C>      <C>           <C>
December 31, 2002
Total capital (to risk-
  weighted assets)        $17,710      20.4%     $ 6,931        8.0%     $  8,664      10.0%
Tier 1 (core) capital (to
  risk-weighted assets)    17,203      19.9        3,465        4.0         5,198       6.0
Tier 1 (core) capital (to
  adjusted total assets)   17,203      12.3        5,574        4.0         6,968       5.0
Tangible capital (to
  adjusted total assets)   17,203      12.3        2,090        1.5           N/A

June 30, 2002
Total capital (to risk-
  weighted assets)        $16,524      20.4%     $ 6,492        8.0%     $  8,115      10.0%
Tier 1 (core) capital (to
  risk-weighted assets)    16,025      19.7        3,246        4.0         4,869       6.0
Tier 1 (core) capital (to
  adjusted total assets)   16,025      12.1        5,278        4.0         6,598       5.0
Tangible capital (to
adjusted total assets)     16,025      12.1        1,979        1.5           N/A
</TABLE>

--------------------------------------------------------------------------------
                                                                             22.
<PAGE>


                         HOME LOAN FINANCIAL CORPORATION
                         ITEM 3. CONTROLS AND PROCEDURES

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

Within the 90-day period prior to the filing date of this report, the Chief
Executive Officer and Chief Financial Officer of the Corporation evaluated the
effectiveness of the Corporation's disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14(c) and 15d-14(c) under the Securities
Exchange Act of 1934). Based on their evaluation, the Chief Executive Officer
and Chief Financial Officer have concluded that the Corporation's disclosure
controls and procedures are effective to ensure that information required to be
disclosed by the Corporation in this report is recorded, processed, summarized
and reported within the time periods specified in Securities and Exchange
Commission rules and forms. Subsequent to the date of their evaluation, there
were no significant changes in the Corporation's internal control or in other
factors that could significantly affect its internal control.

--------------------------------------------------------------------------------
                                                                             23.

<PAGE>


                         HOME LOAN FINANCIAL CORPORATION
                           PART II - OTHER INFORMATION

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

Item 1.  Legal Proceedings
         None

Item 2.  Changes in Securities
         None

Item 3.  Defaults Upon Senior Securities
         Not applicable

Item     4. Submission of Matters to a Vote of Security Holders
         The Annual Meeting of the Shareholders of the Corporation was held on
         October 8, 2002. The following members of the Board of Directors of the
         Corporation were reelected by the votes set forth below for terms
         expiring in 2003:

<TABLE>
<CAPTION>
                                                           FOR         WITHHELD
                                                           ---         --------
<S>                                                    <C>              <C>
         Neal J. Caldwell                               1,253,636        5,290
         Robert C. Hamilton                             1,254,036        4,890
         Robert D. Mauch                                1,254,036        4,890
         Douglas L. Randles                             1,255,036        3,890
         Marion M. Sutton                               1,253,836        5,090
</TABLE>

         At the Annual Meeting, the shareholders also voted to ratify the
         selection of Crowe, Chizek and Company LLP as the auditors of the
         Corporation for the current fiscal year, with the following votes being
         cast:

<TABLE>
<CAPTION>
                      FOR                AGAINST            ABSTAIN
                      ---                -------            -------
<S>                                     <C>                <C>
                   1,255,060               3,717              149
</TABLE>

Item 5.  Other Information
         None

Item 6.  Exhibits and Reports on Form 8-K
         (a) No current reports on Form 8-K were filed by the Corporation during
             the quarter ended December 31, 2002.

--------------------------------------------------------------------------------
                                                                             24.

<PAGE>


                         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 7, 2003                 /s/ Robert C. Hamilton
       ------------------------          -----------------------------------
                                         Robert C. Hamilton
                                         President and Chief Executive Officer





Date:   February 7, 2003                 /s/ Preston W. Bair
       ------------------------          -----------------------------------
                                         Preston W. Bair
                                         Secretary, Treasurer and Chief
                                         Financial Officer


--------------------------------------------------------------------------------
                                                                             25.
<PAGE>

                         HOME LOAN FINANCIAL CORPORATION
                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER


I, Robert C. Hamilton, certify that:

1)  I have reviewed this quarterly report on Form 10-QSB of Home Loan Financial
    Corporation;

2)  Based on my knowledge, this quarterly report does not contain any untrue
    statement of a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under which such
    statements were made, not misleading with respect to the period covered by
    this quarterly report;

3)  Based on my knowledge, the financial statements, and other financial
    information included in this quarterly report, fairly present in all
    material respects the financial condition, results of operations and cash
    flows of the registrant as of, and for, the periods presented in this
    quarterly report;

4)  The registrant's other certifying officers and I are responsible for
    establishing and maintaining disclosure controls and procedures (as defined
    in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

    a)  designed such disclosure controls and procedures to ensure that material
        information relating to the registrant, including its consolidated
        subsidiaries, is made known to us by others within those entities,
        particularly during the period in which this quarterly report is being
        prepared;

    b)  evaluated the effectiveness of the registrant's disclosure controls and
        procedures as of a date within 90 days prior to the filing date of this
        quarterly report (the "Evaluation Date"); and

    c)  presented in this quarterly report our conclusions about the
        effectiveness of the disclosure controls and procedures based on our
        evaluation as of the Evaluation Date;

5)  The registrant's other certifying officers and I have disclosed, based on
    our most recent evaluation, to the registrant's auditors and the audit
    committee of registrant's board of directors (or persons performing the
    equivalent function):

    a)  all significant deficiencies in the design or operation of internal
        controls which could adversely affect the registrant's ability to
        record, process, summarize and report financial data and have identified
        for the registrant's auditors any material weaknesses in internal
        controls; and

    b)  any fraud, whether or not material, that involves management or other
        employees who have a significant role in the registrant's internal
        controls; and

6)  The registrant's other certifying officers and I have indicated in this
    quarterly report whether or not there were significant changes in internal
    controls or in other factors that could significantly affect internal
    controls subsequent to the date of our most recent evaluation, including any
    corrective actions with regard to significant deficiencies and material
    weaknesses.

Date:      February 7, 2003
      --------------------------
/s/ Robert C. Hamilton
--------------------------------
Robert C. Hamilton
President and Chief Executive Officer

--------------------------------------------------------------------------------
                                                                             26.
<PAGE>

                         HOME LOAN FINANCIAL CORPORATION
                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER


I, Preston W. Bair, certify that:

1)  I have reviewed this quarterly report on Form 10-QSB of Home Loan Financial
    Corporation;

2)  Based on my knowledge, this quarterly report does not contain any untrue
    statement of a material fact or omit to state a material fact necessary to
    make the statements made, in light of the circumstances under which such
    statements were made, not misleading with respect to the period covered by
    this quarterly report;

3)  Based on my knowledge, the financial statements, and other financial
    information included in this quarterly report, fairly present in all
    material respects the financial condition, results of operations and cash
    flows of the registrant as of, and for, the periods presented in this
    quarterly report;

4)  The registrant's other certifying officers and I are responsible for
    establishing and maintaining disclosure controls and procedures (as defined
    in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
    a)  designed such disclosure controls and procedures to ensure that material
        information relating to the registrant, including its consolidated
        subsidiaries, is made known to us by others within those entities,
        particularly during the period in which this quarterly report is being
        prepared;
    b)  evaluated the effectiveness of the registrant's disclosure controls and
        procedures as of a date within 90 days prior to the filing date of this
        quarterly report (the "Evaluation Date"); and
    c)  presented in this quarterly report our conclusions about the
        effectiveness of the disclosure controls and procedures based on our
        evaluation as of the Evaluation Date;

5)  The registrant's other certifying officers and I have disclosed, based on
    our most recent evaluation, to the registrant's auditors and the audit
    committee of registrant's board of directors (or persons performing the
    equivalent function):
    a)  all significant deficiencies in the design or operation of internal
        controls which could adversely affect the registrant's ability to
        record, process, summarize and report financial data and have identified
        for the registrant's auditors any material weaknesses in internal
        controls; and
    b)  any fraud, whether or not material, that involves management or other
        employees who have a significant role in the registrant's internal
        controls; and

6)  The registrant's other certifying officers and I have indicated in this
    quarterly report whether or not there were significant changes in internal
    controls or in other factors that could significantly affect internal
    controls subsequent to the date of our most recent evaluation, including any
    corrective actions with regard to significant deficiencies and material
    weaknesses.

Date:      February 7, 2003
      -------------------------

/s/ Preston W. Bair
-------------------------------
Preston W. Bair
Secretary, Treasurer and Chief Financial Officer

--------------------------------------------------------------------------------
                                                                             27.

<PAGE>


                         HOME LOAN FINANCIAL CORPORATION
                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
<S>            <C>                              <C>
    3.1         Articles of Incorporation of     Incorporated by reference to the Registration
                Home Loan Financial Corporation  Statement on Form S-1 filed by HLFC on
                                                 December 16, 1997 (the "S-1") with the
                                                 Securities and Exchange Commission (the"SEC"),
                                                 Exhibit 3.1.

    3.2         Certificate of Amendment to      Incorporated by reference to Pre-Effective
                Articles of Incorporation of     Amendment No. 1 to the S-1 filed with the SEC
                Home Loan Financial Corporation  on February 3, 1998, Exhibit 3.2.

    3.3         Code of Regulations of Home      Incorporated by reference to the S-1, Exhibit
                Loan Financial Corporation       3.3.

    10          Employment Contract for Robert   Incorporated by reference to the Form 10-KSB
                C. Hamilton                      filed by HLFC on September 28, 1998 (the
                                                 "10-KSB") with the SEC, Exhibit 10.

    11          Statement Regarding              See Note 6 to the consolidated financial
                Computation of Earnings per      statements.
                Share

    99.1        Certification of the Chief
                Executive Officer Pursuant to
                Section 906 of the
                Sarbanes-Oxley Act of 2002

    99.2        Certification of the Chief
                Financial Officer Pursuant to
                Section 906 of the
                Sarbanes-Oxley Act of 2002
</TABLE>

--------------------------------------------------------------------------------
                                                                             28.