<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

               For the quarterly period ended June 30, 1998

                                       OR

           [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

          For the transition period from                 to 
                                        ---------------     ---------------

                         Commission File Number 0-27522

                         PITTSBURGH HOME FINANCIAL CORP.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Pennsylvania                                    25-1772349
  -------------------------------                   ---------------------
  (State or other jurisdiction of                     (I.R.S. Employer
   incorporation or organization)                   Identification Number)

            438 Wood Street
        Pittsburgh, Pennsylvania                          15222
---------------------------------------                ----------
(Address of principal executive office)                (Zip Code)

                                 (412) 281-0780
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X     No
                                             -----     -----

        Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: As of August 14,
1998, there were issued and outstanding 1,969,369 shares of the Registrant's
Common Stock, par value $.01 per share.



<PAGE>   2



                         PITTSBURGH HOME FINANCIAL CORP.

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                PAGE
                                                                                                ----
<S>                                                                                            <C>
PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements

         Consolidated Statements of Financial Condition as of June 30, 1998
         (unaudited) and September 30, 1997                                                        3

         Consolidated Statements of Income for the three and nine
         months ended June 30, 1998 (unaudited) and 1997 (unaudited).                              4

         Consolidated Statement of Changes in Stockholders' Equity
         for the nine months ended June 30, 1998
         (unaudited)                                                                               5

         Consolidated Statements of Cash Flows for the
         nine months ended June 30, 1998 (unaudited) and 1997 (unaudited).                         6

         Notes to Unaudited Consolidated Financial Statements                                      7

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations                                                                    12

Item 3.  Quantitative and Qualitative Disclosures About Market Risk                               17

PART II. OTHER INFORMATION


Item 1.  Legal Proceedings                                                                        18
Item 2.  Changes in Securities                                                                    18
Item 3.  Defaults Upon Senior Securities                                                          18
Item 4.  Submission of Matters to a Vote of Security-Holders                                      18
Item 5.  Other Information                                                                        18
Item 6.  Exhibits and Reports on Form 8-K                                                         19

SIGNATURES
</TABLE>



<PAGE>   3


                         PITTSBURGH HOME FINANCIAL CORP.
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                                           June 30,
                                                                            1998               September 30,
                                                                         (Unaudited)                1997
                                                                        --------------         -------------
<S>                                                                     <C>                    <C>          
ASSETS
Cash                                                                    $   3,011,891          $   1,844,534
Interest-bearing deposits                                                   6,816,567              3,379,240
                                                                        -------------          -------------
                                                                            9,828,458              5,223,774

Investment securities trading (cost of $2,448,350 and $904,875)             2,300,013                955,587
Investments and mortgage-backed securities; available for sale            127,198,445             64,387,368
Investments and mortgage-backed securities; held to maturity
   (fair value of $10,071,200 and $10,054,039)                             10,004,302             10,017,166
Loans receivable, net of allowance of $1,567,192 and
   $ 1,419,196                                                            206,450,571            181,338,949
Accrued interest receivable                                                 2,894,350              2,026,718
Premises and equipment, net                                                 3,268,128              2,699,396
Goodwill                                                                      277,872                302,632
Federal Home Loan Bank stock - at cost                                      7,863,400              5,110,000
Deferred income taxes                                                              --                142,119
Foreclosed real estate                                                      1,075,654                907,398
Other assets                                                                1,372,013                192,673
                                                                        -------------          -------------
                    Total assets                                        $ 372,533,206          $ 273,303,780
                                                                        =============          =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                                $ 148,453,810          $ 138,730,862
FHLB Advances                                                             155,266,730            101,700,000
Reverse repurchase agreements                                              25,000,000                     --
Guaranteed preferred beneficial interest in subordinated debt              11,500,000                     --
Advances by borrowers for taxes and insurance                               3,832,925              1,649,312
Deferred income taxes                                                          50,412                     --
Accrued income taxes payable                                                    8,173                275,749
Other liabilities                                                           2,586,289              2,133,472
                                                                        -------------          -------------
                    Total liabilities                                     346,698,339            244,489,395

STOCKHOLDERS' EQUITY

Preferred stock, $.01 par value, 5,000,000 shares authorized,
   none issued                                                                     --                     --
Common stock, $.01 par value, 10,000,000 shares authorized,
   2,182,125 shares issued and outstanding                                     21,821                 21,821
Additional paid-in capital                                                 16,303,535             21,017,411
Treasury stock - at cost, 212,756 shares                                   (2,948,004)            (2,948,004)
Unearned shares of  employee stock ownership plan                          (1,551,794)            (1,669,498)
Unearned shares of recognition and retention plan                            (708,770)              (868,250)
Accumulated other comprehensive income                                        970,000                597,000
Retained earnings (substantially restricted)                               13,748,079             12,663,905
                                                                        -------------          -------------
                    Total stockholders' equity                             25,834,867             28,814,385


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $ 372,533,206          $ 273,303,780
                                                                        =============          =============
</TABLE>



See accompanying notes to unaudited consolidated financial statements.



                                       3
<PAGE>   4


                         PITTSBURGH HOME FINANCIAL CORP.
                        CONSOLIDATED STATEMENTS OF INCOME



<TABLE>
<CAPTION>
                                                                Three months ended                  Nine months ended
                                                                     June 30,                            June 30,
                                                                   (Unaudited)                         (Unaudited)
                                                           ---------------------------       -----------------------------
                                                              1998            1997              1998              1997
                                                           ----------      -----------       -----------      ------------
<S>                                                        <C>             <C>               <C>              <C>         
Interest income:
   Loans receivable                                        $4,148,337      $ 3,398,959       $11,872,912      $  9,529,250
    Mortgage-backed securities                              1,014,119          632,328         2,445,537         1,531,693
     Investment securities
         Taxable                                            1,008,784          521,302         2,796,902         1,407,190
         Tax exempt                                            98,214           76,264           298,031           238,551
    Interest-bearing deposits                                 102,268           50,569           267,961           230,351
                                                           ----------      -----------       -----------      ------------
           Total interest income                            6,371,722        4,679,422        17,681,343        12,937,035

 Interest expense:
    Deposits                                                1,723,158        1,631,438         5,117,539         4,743,005
    Advances and escrows                                    2,417,493        1,198,035         6,229,652         2,916,891
    Guaranteed preferred beneficial interest
      in subordinated debt                                    249,529               --           421,988                --
                                                           ----------      -----------       -----------      ------------
           Total interest expense                           4,390,180        2,829,473        11,769,179         7,659,896
                                                           ----------      -----------       -----------      ------------

 Net interest income before provision for loan losses       1,981,542        1,849,949         5,912,164         5,277,139

 Provision for loan losses                                    120,000          105,000           360,000           255,000
                                                           ----------      -----------       -----------      ------------
 Net interest income after provision for loan losses        1,861,542        1,744,949         5,552,164         5,022,139

 Noninterest income:
    Service charges and other fees                            147,267           82,802           439,393           260,751
    Other income                                               15,919            8,630            43,359            29,249
    Net gain on trading account and available
     for sale securities                                        1,601          151,815           188,333           151,815
    Loss on sale of REO                                            --          (16,142)               --           (16,142)
                                                           ----------      -----------       -----------      ------------

           Total noninterest income                           164,787          227,105           671,085           425,673

 Noninterest expenses:
    Compensation and employee benefits                        758,357          642,828         2,253,803         1,851,859
    Premises and occupancy costs                              132,775          110,754           422,995           339,994
    Amortization of goodwill                                    8,254            8,254            24,761            19,259
    Federal insurance premium                                  21,941           21,998            66,532            43,333
    Marketing                                                  80,536           52,815           183,074           133,129
    Data processing costs                                      62,520           70,873           178,037           194,071
    Other expenses                                            202,274          190,977           682,844           678,057
                                                           ----------      -----------       -----------      ------------
           Total noninterest expense                        1,266,657        1,098,499         3,812,046         3,259,702

 Income before income taxes                                   759,672          873,555         2,411,203         2,188,110
 Income taxes                                                 264,686          326,300           834,686           775,300
                                                           ----------      -----------       -----------      ------------
Net income                                                 $  494,986      $   547,255       $ 1,576,517      $  1,412,810
                                                           ==========      ===========       ===========      ============

Basic earnings per share                                   $     0.28      $      0.30       $      0.90      $       0.75
                                                           ==========      ===========       ===========      ============
Diluted earnings per share                                 $     0.27      $      0.29       $      0.86      $       0.74
                                                           ==========      ===========       ===========      ============
</TABLE>



See accompanying notes to unaudited consolidated financial statements.


                                       4
<PAGE>   5


                         PITTSBURGH HOME FINANCIAL CORP.
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                       FOR THE PERIOD ENDED JUNE 30, 1998






<TABLE>
<CAPTION>
                                                                                
                                                                        Additional
                                           Comprehensive   Common        Paid In             Retained
                                              Income       Stock         Capital             Earnings
                                           ------------- ----------     ----------         ------------ 

<S>                                           <C>          <C>          <C>                <C>           
Balance as of September 30, 1997                           $21,821      $21,017,411        $ 12,663,905  
ESOP shares released                                            --           71,691                  --  
RRP amortization                                                --               --                  --  
                                                                                                         
Cash dividends declared                                         --               --            (492,343) 
                                                                                                         
Return of capital                                               --       (4,785,567)                 --  
                                                                                                         
Change in unrealized                                                                                     
 gain on investment securities                                                                           
 available for sale, net of taxes           373,000             --               --                  --  
Net income for period                    $1,576,517             --               --           1,576,517  
                                         ----------  
Comprehensive Income                     $1,949,517                                                      
                                         ==========        -------      -----------        ------------

Balance as of June 30, 1998                                $21,821      $16,303,535        $ 13,748,079  
                                                           =======      ===========        ============
</TABLE>



<TABLE>
<CAPTION>
                                                      Unearned                           Accumulated
                                                      shares of        Unearned             other                 Total
                                        Treasury   Employee Stock      shares of         comprehensive         Stockholders'
                                          Stock     Ownership Plan        RRP               income                Equity
                                     ------------  ---------------    ------------       -------------        --------------

<S>                                  <C>             <C>                 <C>                 <C>               <C>        
Balance as of September 30, 1997     $(2,948,004)    $(1,669,498)        $(868,250)          $597,000          $28,814,385
ESOP shares released                          --         117,704                --                 --              189,395
RRP amortization                              --              --           159,480                 --              159,480

Cash dividends declared                       --              --                --                 --            (492,343)

Return of capital                             --              --                --                 --          (4,785,567)

Change in unrealized
 gain on investment securities
 available for sale, net of taxes             --              --                --            373,000              373,000
Net income for period                         --              --                --                 --            1,576,517
Comprehensive Income
                                     -----------     -----------         ---------           --------         ------------
Balance as of June 30, 1998          $(2,948,004)    $(1,551,794)        $(708,770)          $970,000         $ 25,834,867
                                     ===========     ===========         =========           ========         ============
</TABLE>


 See accompanying notes to unaudited consolidated financial statements.



                                       5
<PAGE>   6

                         PITTSBURGH HOME FINANCIAL CORP
                      CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                          For the nine months ended June 30,
                                                                                             1998                   1997
                                                                                          ------------         ------------
                                                                                                     (Unaudited)
<S>                                                                                       <C>                  <C>         
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                                $  1,576,517         $  1,412,811
Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation and goodwill                                                                 191,873              148,523
     Amortization and accretion of premiums and discounts on
       assets and deferred loan fees                                                        (1,499,948)             482,510
     Amortization of ESOP plan                                                                 117,704              128,944
     Amortization of RRP                                                                       159,480              141,760
     Provision for loan losses                                                                 360,000              255,000
     Purchase of equity securities, trading                                                 (8,190,693)          (2,203,523)
     Sale of equity securities, trading                                                      6,958,081            1,017,073
     Release of ESOP shares                                                                     71,691               34,260
     Deferred tax benefit                                                                      192,531              347,632
     Other, net                                                                             (2,048,441)            (913,904)
                                                                                          ------------         ------------
Net cash provided by operating activities                                                   (2,111,205)             851,086

CASH FLOWS FROM INVESTING ACTIVITIES
Loan orginations                                                                           (60,351,859)         (63,796,412)
Loan principle repayments                                                                   34,803,387           26,727,516
Proceeds from loan sales                                                                            --              617,700
Net REO activity                                                                              (168,256)                  --
Purchases of:
     Available for sale securities                                                         (93,288,586)         (27,150,565)
Purchases of:
     Held to maturity securities                                                                    --          (10,000,000)
Proceeds from sales, maturities and principal repayments of:
     Available for sale securities                                                          29,953,667           11,744,695
Purchase of land                                                                              (153,250)                  --
Purchases of premises and equipment                                                           (824,756)            (988,594)
Other, net                                                                                      50,161             (556,731)
                                                                                          ------------         ------------
Net cash (used) provided by investing activities                                           (89,979,492)         (63,402,391)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in checking, passbook, and money market
     deposit accounts                                                                        2,171,468            2,690,305
Net increase in certificates of deposit                                                      7,551,480           11,738,232
Increase in advances by borrowers for taxes and insurance                                    2,183,613            1,618,723
Increase in advances from the Federal Home Loan Bank                                        53,566,730           47,700,000
Increase in repurchase agreements                                                           25,000,000                   --
Increase in Guaranteed preferred beneficial interest in subordinated debt                   11,500,000                   --
Return of capital                                                                           (4,785,567)                  --
Cash dividends paid to shareholders                                                           (492,343)            (474,339)
Purchase of Recognition and Retention Plan shares                                                   --           (1,063,170)
Purchase of treasury stock                                                                          --           (2,948,004)

Net cash provided  by financing activities                                                  96,695,381           59,261,747

Net decrease in cash and cash equivalents                                                    4,604,684           (3,289,558)
Cash and cash equivalents at beginning of year                                               5,223,774            7,561,710
                                                                                          ------------         ------------
Cash and cash equivalents at end of year                                                  $  9,828,458         $  4,272,152
                                                                                          ============         ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION 
Cash paid during the year for:
     Interest (includes interest credited on deposits of $4,159,241 and $4,743,005
          in 1998 and 1997 respectively)                                                  $ 10,217,558         $  7,659,896
                                                                                          ============         ============

Income taxes paid                                                                         $  1,211,750         $    986,534
                                                                                          ============         ============

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

Foreclosed mortgage loans transferred to real estate owned                                     483,903              382,809

Unrealized gain on securities available for sale                                               565,000              579,500
Deferred income taxes                                                                         (192,000)            (197,500)
                                                                                          ------------         ------------
Accumulated other comprehensive income                                                    $    373,000         $    382,000
                                                                                          ============         ============
</TABLE>


See accompanying notes to unaudited consolidated financial statements.



                                       6
<PAGE>   7


                         PITTSBURGH HOME FINANCIAL CORP.

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Basis of Presentation

        The accompanying unaudited consolidated financial statements of
        Pittsburgh Home Financial Corp. (the "Company") have been prepared in
        accordance with instructions to Form 10-Q. Accordingly, they do not
        include all of the information and footnotes required by generally
        accepted accounting principles for complete financial statements.
        However, such information reflects all adjustments (consisting solely of
        normal recurring adjustments) which are, in the opinion of management,
        necessary for a fair statement of results for the interim periods.

        The results of operations for the three and nine months ended June 30,
        1998 are not necessarily indicative of the results to be expected for
        the year ending September 30, 1998. The unaudited consolidated financial
        statements and notes thereto should be read in conjunction with the
        audited financial statements and notes thereto for the year ended
        September 30, 1997.


Note 2 - Business

        The Company's Bank subsidiary, Pittsburgh Home Savings Bank (the
        "Bank"), is a state chartered stock savings bank primarily engaged in
        attracting retail deposits from the general public and using such
        deposits to originate loans (primarily single-family residential loans.)
        The Bank conducts business from eight offices in Allegheny and Butler
        counties of western Pennsylvania and primarily lends in this geographic
        area. The Bank is subject to competition from other financial
        institutions and other companies which provide financial services. The
        Bank is subject to the regulations of certain federal and state agencies
        and undergoes periodic examinations by those regulatory authorities.

        The Company's trust subsidiary, Pittsburgh Home Capital Trust I (the
        "Trust") was formed to issue $11.5 million of 8.56% Cumulative Trust
        Preferred Securities. These securities represent undivided beneficial
        interests in Pittsburgh Home Capital Trust I. The Trust purchased junior
        subordinated deferrable interest debentures which were issued by the
        Company.

Note 3 - Principles of Consolidation

        The consolidated financial statements include the accounts of Pittsburgh
        Home Financial Corp. and its wholly owned subsidiaries, Pittsburgh Home
        Savings Bank and Pittsburgh


                                       7

<PAGE>   8


        Home Capital Trust I. All significant intercompany balances and
        transactions have been eliminated in consolidation.

Note 4 - Conversion

        The Company is a Pennsylvania corporation which is the holding company
        for the Bank. The Company was organized by the Bank for the purpose of
        acquiring all of the capital stock of the Bank in connection with its
        conversion from a mutual stock organization to the stock holding company
        form which was completed on April 1, 1996 (the "Conversion").

        In the Conversion, 2,182,125 shares of common stock were sold at a
        subscription price of $10.00 per share, resulting in net proceeds of
        approximately $21.0 million. In exchange for 50% of the net conversion
        proceeds ($10.5 million), the Company acquired 100% of the stock of the
        Bank and retained the remaining $10.5 million at the holding company
        level.

Note 5 - Earnings per share

        Earnings per share are based on the weighted average number of shares of
        common stock. In 1997, the Financial Accounting Standards Board ("FASB")
        issued Statement No. 128, "Earnings per Share". Statement 128 replaced
        the calculation of primary and fully diluted earnings per share with
        basic and diluted earnings per share. Unlike primary earnings per share,
        basic earnings per share excludes any dilutive effects of options and
        unvested stock grants. Diluted earnings per share is very similar to the
        previously reported fully diluted earnings per share. Earnings per share
        amounts for all periods have been presented, and where appropriate,
        restated to conform to the Statement 128 requirements.




                                       8

<PAGE>   9



The following table sets forth the computation of basic and diluted earnings per
share:




<TABLE>
<CAPTION>
                                                             Three months ended                     Nine months ended
                                                                  June 30,                              June 30,
                                                          1998               1997               1998               1997
                                                          ----               ----               ----               ----
<S>                                                   <C>                <C>                <C>                <C>
Numerator for basic and diluted earnings
per share - net income                                $  494,986         $  547,255         $1,576,517         $1,412,810

Denominator:
  Denominator for basic earnings per
     share - weighted-average shares                   1,748,003          1,797,255          1,746,005          1,863,960
   Effect of dilutive securities:
   Employee stock options                                 59,617             39,885             60,052             32,608
   Unvested Management Recognition Plan stock             22,348             21,524             22,304             10,815
                                                      -------------------------------------------------------------------
  Dilutive potential common shares                        81,965             61,409             82,356             43,423
                                                      -------------------------------------------------------------------
  Denominator for diluted earnings per
     share - adjusted weighted-average
     shares and assumed conversions                    1,829,968          1,858,634          1,828,361          1,907,383
                                                      ===================================================================
  Basic earnings per share                            $     0.28         $     0.30         $     0.90         $     0.75
                                                      ===================================================================
  Diluted earnings per share                          $     0.27         $     0.29         $     0.86         $     0.74
                                                      ===================================================================
</TABLE>



        In accordance with Statement 128, unreleased shares held by the Employee
        Stock Ownership Plan (ESOP) (140,494 and 154,162 shares at June 30, 1998
        and 1997 respectively) and unvested shares held for the Recognition and
        Retention Plan (RRP) (66,920 and 87,825 shares at June 30, 1998 and
        1997, respectively) have been excluded from basic average shares
        outstanding. Such shares are included in basic average shares
        outstanding as they are released for allocation (ESOP) or become vested
        (RRP). Unvested RRP shares and stock options are included in diluted
        average shares outstanding based upon the treasury stock method.

Note 6 - Return of Capital

        On December 19, 1997, the Company paid a special one-time cash
        distribution of $2.50 per share. The Company obtained a private letter
        ruling from the Internal Revenue Service which allowed them to treat
        $2.43 per share of this distribution as a return of capital. The return
        of capital was reflected as a reduction to additional paid-in-capital in
        the Company's financial statements. For the stockholders, the return of
        capital is treated as a reduction in the cost basis of the shares and is
        not subject to income taxes until the



                                       9
<PAGE>   10


        shares are sold. The remaining $.07 per share was treated as an ordinary
        dividend. The total distribution paid was $4,923,423 on 1,969,369 shares
        of stock.


Note 7 - Employee Stock Ownership Plan (ESOP)

        In connection with the Conversion, the Company established an ESOP for
        the benefit of eligible employees. The ESOP Trust borrowed $1.9 million
        from the Company and purchased 174,570 shares, equal to 8% of the total
        number of shares issued in the Conversion. The Company accounts for its
        ESOP in accordance with SOP 93-6, "Employers Accounting for Employee
        Stock Ownership Plans," which requires the Company to recognize
        compensation expense equal to the fair value of the ESOP shares during
        the periods in which they become committed to be released. To the extent
        that the fair value of ESOP shares differs from the cost of such shares,
        this differential will be charged or credited to equity. Management
        expects the recorded amount of expense to fluctuate as continuing
        adjustments are made to reflect changes in the fair value of the ESOP
        shares. Employers with internally leveraged ESOPs, such as the Company,
        will not report the loan receivable from the ESOP as an asset and will
        not report the ESOP debt from the employer as a liability.

Note 8 - Stock Option Plan

        On October 15, 1996, the Stock Option Plan was approved by the Company's
        stockholders. A total of 218,212 shares of common stock may be issued
        pursuant to the Stock Option Plan and 195,511 shares were awarded as of
        June 30, 1998. These options are subject to vesting provisions as well
        as other provisions of the Stock Option Plan. No options have been
        exercised through June 30, 1998.

Note 9 - Recognition and Retention Plan and Trust (RRP)

        On October 15, 1996, the RRP was approved by the Company's stockholders.
        A total of 87,285 shares of common stock are available for awards
        pursuant to the RRP and 86,990 shares were awarded as of June 30, 1998.
        Awards will vest in equal installments over a five year period, with the
        first installment vesting on the first anniversary date of the grant and
        each additional installment vesting on the four subsequent anniversaries
        of such date, subject to various requirements as more fully described in
        the plan documents. Compensation cost related to RRP shares earned
        during the nine month period ended June 30, 1998 and 1997 were $159,480
        and $141,760 respectively.

        The Company has purchased on the open market shares of common stock to
        fully fund the RRP. The cost of unearned RRP shares is recorded as a
        reduction of stockholders' equity.



                                       10
<PAGE>   11


Note 10 - Recent Accounting and Regulatory Developments

        The Financial Accounting Standards Board released Statement of Financial
        Accounting Standard Number 125, "Accounting for Transfers and Servicing
        of Financial Assets and Extinguishments of Liabilities" ("SFAS 125") in
        June 1996. SFAS 125 is effective for transfers and servicing of
        financial assets and extinguishments of liabilities occurring after
        December 31, 1996 and is to be applied prospectively. SFAS 125
        establishes standards for resolving issues related to the circumstances
        under which the transfer of financial assets should be considered as
        sales of all or part of the assets or as secured borrowings and about
        when a liability should be considered extinguished. The Company does not
        anticipate any material impact on statements of income and financial
        condition from the adoption of this statement.

        As of January 1, 1998, the Company adopted Statement Number 130,
        "Reporting Comprehensive Income." Statement 130 establishes new rules
        for the reporting and display of comprehensive income and its
        components; however, the adoption of this Statement had no impact on the
        Company's net income or shareholders' equity. Statement 130 requires
        unrealized gains or losses on the Company's available-for-sale
        securities, which prior to adoption were reported separately in
        stockholders' equity to be included in other comprehensive income. Prior
        year financial statements have been reclassified to conform to the
        requirements of Statement Number 130.

        During the nine months ended June 30, 1998 and 1997, total comprehensive
        income amounted to $1,949,517 and $1,794,810, respectively.

Note 11 -Capital Trust I

        In January 1998, the Company formed a trust subsidiary, Pittsburgh Home
        Capital Trust I ("the Trust"), and on January 30, 1998, the Trust sold
        $11.5 million of 8.56% Cumulative Trust Preferred Securities to the
        public. The Preferred Securities represent undivided beneficial
        interests in the Trust. The Trust used the proceeds from the sale of the
        preferred securities to purchase junior subordinated deferrable interest
        debentures which were issued by the Company. The Company will use the
        proceeds for general corporate purposes. The subordinated debentures are
        redeemable at anytime after January 30, 2003 by the Company. The
        subordinated debentures will mature on January 30, 2028.



                                       11



<PAGE>   12




                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL CONDITION

        At June 30, 1998, the Company's total assets amounted to $372.5 million
compared with $273.3 million at September 30, 1997, an increase of 36.3%. Cash
and interest-bearing deposits increased $4.6 million, or 88.5%, to $9.8 million
at June 30, 1998, compared to $5.2 million at September 30, 1997. Investment
securities trading increased $1.3 million, or 140.6% from $956,000 at September
30, 1997 to $2.3 million at June 30, 1998. During fiscal 1997, the Company
implemented a wholesale leveraging strategy designed to take advantage of its
excess capital. The Company determined to invest in mortgage-backed securities
and U.S. government and agency obligations, at a positive interest rate spread
over the funding obligation, which has primarily been Federal Home Loan Bank
("FHLB") advances. Investments and mortgage-backed securities (held to maturity
and available for sale) increased by $62.8 million, or 84.4%, from $74.4 million
at September 30, 1997. During the period ended June 30, 1998, the Company
purchased $90.3 million in investments and mortgage-backed securities. Loans
receivable, net of allowance, increased $25.1 million, or 13.9%, to $206.4
million at June 30, 1998 compared to $181.3 million at September 30, 1997. The
growth is primarily attributable to increases in residential mortgage loans.

        Total liabilities increased by $102.2 million, or 41.8%, to $346.7
million at June 30, 1998 compared to $244.5 million at September 30, 1997. The
Company's trust subsidiary, Pittsburgh Home Capital Trust I, sold $11.5 million
of 8.56% Cumulative Trust Preferred Securities on January 30, 1998. The
guaranteed preferred beneficial interest in subordinated debt totaled $11.5
million at June 30, 1998. Deposits increased by $9.8 million, or 7.1% to $148.5
million at June 30, 1998 compared to $138.7 million at September 30, 1997. The
increase in deposits is attributable, in part, to the Bank's newest supermarket
branch located in the Pittsburgh area. The Company is continuing to increase its
FHLB advances and other sources of borrowings to increase liquidity and used
those funds to reinvest in assets at higher yields. Advances from the FHLB
increased $53.6 million or 52.7% to $155.3 million at June 30, 1998 compared to
$101.7 million at September 30, 1997. During the quarter ended June 30, 1998,
the Company also entered into reverse repurchase agreements amounting to $25.0
million.

        Total stockholders' equity decreased $3.0 million or 10.3% to $25.8
million at June 30, 1998 compared to $28.8 million at September 30, 1997. The
decrease was primarily attributable to a special return of capital dividend
totaling $4.9 million that the Company paid on December 19, 1997, which was
partially offset by net income during the period.



                                       12

<PAGE>   13



RESULTS OF OPERATIONS

        GENERAL. The Company reported net income of $495,000 and $1.6 million
for the three and nine months ended June 30, 1998, respectively, compared to
$547,000 and $1.4 million for the three and nine months ended June 30, 1997.
Basic and diluted earnings per share were $.28 and $.27, respectively, for the
quarter ended June 30, 1998, compared to $.30 and $.29, respectively, for the
same quarter of 1997. Basic and diluted earnings per share for the nine month
period were $.90 and $.86, respectively, compared to $.75 and $.74,
respectively, for the same period of 1997. The $52,000, or 9.5% decrease and
$164,000 or 11.6% increase in net income for the three and nine months ended
June 30, 1998, respectively, compared to the same periods in 1997, is primarily
attributable to the increase in net interest income before provision for loan
losses of $132,000 or 7.1% for the quarter and $635,000 or 12.0% for the nine
month period. Included in interest expense for the 1998 periods is $250,000
related to the $11.5 million of trust preferred securities that the Company's
trust subsidiary, Pittsburgh Home Capital Trust I, sold on January 30, 1998. The
Company recognized pre-tax net gains on trading account and available for sale
securities of $1,600 for the quarter and $188,000 for the nine months ended June
30, 1998 as compared to $152,000 for the three and nine month periods in 1997.
Noninterest income (excluding trading account and available for sale gains)
increased $88,000 or 116.9% for the quarter and $209,000 or 76.3% for the nine
month period. These increases were partially offset by an increase in the
provision for loan losses of $15,000 or 14.3% for the quarter and $105,000 or
41.2% for the nine month period, an increase in noninterest expense of $169,000
or 15.4% for the quarter and $552,000 or 16.9% for the nine month period, and a
decrease in the provision for income taxes of $61,000 or 18.7% for the quarter
and an increase of $60,000 or 7.7% for the nine month period.

        INTEREST INCOME. Interest income increased $1.7 million or 36.2%, and
$4.8 million or 37.2% for the three and nine months ended June 30, 1998,
respectively, compared to the same periods in 1997. The increase was due to the
increase in investment purchases and loan origination activity. The average
balance of investments and mortgage-backed securities totaled $127.0 million and
$103.2 million with weighted average yields of 6.68% and 7.16% for the three and
nine months ended June 30, 1998, respectively, an increase of 93.3% and 70.8%,
respectively, from $65.7 million and $60.3 million with weighted average yields
of 7.21% and 6.93% for the same periods ended June 30, 1997. The increase in
investments is attributable to the Company's wholesale leveraging strategy. The
investments and mortgage-backed securities purchased have been funded with
advances from the FHLB and reverse repurchase agreements. The average balance on
loans receivable increased by $37.7 million and $41.1 million for the three and
nine months ended June 30, 1998, respectively, which were partially offset by a
5 basis point and 10 basis point decline in the average yield earned thereon.



                                       13
<PAGE>   14



        INTEREST EXPENSE. Interest expense increased $1.6 million or 57.1% and
$4.1 million or 53.2% for the three and nine months ended June 30, 1998,
respectively, compared to the same periods in 1997. The increase was due
primarily to a $107.9 million and $95.9 million increase in average
interest-bearing liabilities for the three and nine months ended June 30, 1998
when compared to the same periods in 1997. Average deposits increased $7.5
million and $11.2 million for the three and nine months ended June 30, 1998,
respectively, when compared to the same period in 1997. Average borrowed funds
increased $88.7 million and $78.1 million for the three and nine months ended
June 30, 1998, respectively, when compared to the same periods in 1997. Such
increases were primarily due to the Bank's new branch, as well as increased
borrowings. Interest expense associated with the guaranteed preferred beneficial
interest in subordinated debt totaled $250,000 and $422,000 for the three and
nine months ended June 30, 1998. On March 6, 1998, the Bank purchased a $25.0
million notional value interest rate cap from the FHLB. This purchase was in
connection with the Bank's ongoing management of its interest rate risk
position. The cap is being used as an off-balance sheet hedge to the Bank's risk
associated with its shorter term liabilities. The cost of the cap is being
amortized as a yield adjustment to interest expense over the five year term of
the transaction. Interest expense associated with the amortization of the rate
cap totaled $17,000 for the nine months ended June 30, 1998.

        PROVISION FOR LOAN LOSSES. During the three and nine months ended June
30, 1998, the Company recorded provisions for losses on loans of $120,000 and
$360,000 compared to $105,000 and $255,000 for the comparable periods in 1997.
The Company has increased its originations of single-family loans during the
past several years, which management attributes to be the primary reason for
$3.5 million in non-performing loans at June 30, 1998. Management does not
attribute the increase to any specific weakness within the Company or in the
marketplace generally. Although management utilizes its best judgment in
providing for losses with respect to its non-performing assets, there can be no
assurance that the Company will be able to dispose of such non-performing assets
without establishing additional provisions for losses on loans or further
reductions in the carrying value of its real estate owned.

        NONINTEREST INCOME. Noninterest income decreased by $62,300 or 27.4% for
the three months ended June 30, 1998 and increased $245,000 or 57.6% for the
nine months ended June 30, 1998, compared to the same periods ended June 30,
1997. In April 1997, the Board authorized a trading account whereby up to $2.5
million could be invested in trading account securities, with not more than $1.0
million in any single issue, to be accounted for as trading securities in
accordance with SFAS No. 115. Under Board authorization, there is no limit on
the types of securities that the Company may invest in provided that the
securities are approved under the Company's investment policy, although to date
the Company has limited its investments to equity securities of financial
institutions. At June 30, 1998, the Company had an aggregate of $2.3 million
invested in 16 securities. Due to a decline in market conditions, the Company
only recognized a pre-tax net gain on trading account and available for sale
securities of $1,600 for the quarter ended June 30, 1998. The Company recognized
pre-tax net gains on


                                       14

<PAGE>   15


trading account and available for sale securities of $188,000 for the nine
months ended June 30, 1998 as compared to $152,000 for the three and nine months
ended June 30, 1997. Non-interest income (excluding the trading gains) increased
$88,000 or 116.9% for the quarter and $209,000 or 76.3% for the nine month
period.

        NONINTEREST EXPENSES. Noninterest expenses increased by $169,000 or
15.4% and $552,000 or 16.9% for the three and nine months ended June 30, 1998,
compared to the same periods in 1997. The increase was primarily attributable to
a $115,000 and $402,000 increase in compensation and employee benefits, a
$22,000 and $83,000 increase in net occupancy expense, and a $28,000 and $50,000
increase in marketing expense. The increase in salaries and employee benefits is
due to normal salary increases and the hiring of new employees. The increase in
net occupancy expense and marketing expense is primarily the result of the
addition of a new branch.


PROVISION FOR INCOME TAXES. The Bank incurred provisions for income taxes of
$265,000 and $835,000 for the three and nine months ended June 30, 1998,
compared with $326,000 and $775,000 for the same periods in 1997. The effective
tax rates during the three and nine months ended June 30, 1998 and 1997 were
34.9% and 34.6%, and 37.3% and 35.4% respectively.

LIQUIDITY AND CAPITAL RESOURCES

        The Company's primary sources of funds are deposits, borrowings,
repayments, prepayments and maturities of outstanding loans, maturities of
investment securities and other short-term investments, and funds provided from
operations. While scheduled loan repayments and maturing investment securities
and short-term investments are relatively predictable sources of funds, deposit
flows and loan prepayments are greatly influenced by the movement of interest
rates in general, economic conditions and competition. The Company manages the
pricing of its deposits to maintain a deposit balance deemed appropriate and
desirable. In addition, the Company invests in short-term investment securities
and interest-earning assets which provide liquidity to meet lending
requirements. Although the Company's deposits have historically represented the
majority of its total liabilities, the Company also utilizes other borrowing
sources, primarily advances from the FHLB of Pittsburgh. At June 30, 1998, the
Company had $155.3 million of outstanding advances from the FHLB of Pittsburgh
and $25.0 million of reverse repurchase agreements.

        Liquidity management is both a daily and long-term function of business
management. The Bank uses its sources of funds primarily to meet its ongoing
commitments, to pay maturing savings certificates and savings withdrawals, to
fund loan commitments and to maintain a portfolio of mortgage-backed and
investment securities. At June 30, 1998, the total approved loan commitments
outstanding amounted to $10.1 million, and unused lines of credit amounted to
$934,000. Certificates of deposit scheduled to mature in one year or less at
June 30, 1998, totaled $73.3 million. Management believes that a significant
portion of maturing deposits will remain with the Bank.


                                       15

<PAGE>   16



        As of June 30, 1998, the Bank's regulatory capital was well in excess of
all applicable regulatory requirements. At June 30, 1998, the Bank's Tier 1
risk-based, total risk-based and Tier 1 leverage capital ratios amounted to
19.03%, 18.10% and 8.18%, respectively, compared to regulatory requirements of
4.0%, 8.0% and 4.0%, respectively.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995


        In addition to historical information, forward-looking statements are
contained herein that are subject to risks and uncertainties that could cause
actual results to differ materially from those reflected in the forward-looking
statements. Factors that could cause future results to vary from current
expectations, include, but are not limited to, the impact of economic conditions
(both generally and more specifically in the markets in which the Company
operates), the impact of competition for the Company's customers from other
providers of financial services, the impact of government legislation and
regulation (which changes from time to time and over which the Company has no
control), and other risks detailed in this Form 10-Q and in the Company's other
Securities and Exchange Commission ("SEC") filings. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements, to reflect
events or circumstances that arise after the date hereof. Readers should
carefully review the risk factors described in other documents the Company files
from time to time with the SEC.


IMPACT OF YEAR 2000.

        Some of the Company's older computer programs including those used by
certain third party providers, were written using two digits rather than four to
define the applicable year. As a result, those computer programs have
time-sensitive software that recognize a date using "00" as the year 1900 rather
than the year 2000. This could cause a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.

The Company is currently performing an assessment and may have to modify or
replace portions of its software so that its computer systems will function
properly with respect to dates in the year 2000 and thereafter. The total Year
2000 project cost is estimated to have an immaterial impact.

The project is estimated to be completed not later than December 31, 1998, which
is prior to any anticipated impact on its operating system. The Company believes
that with modifications to existing software and conversions to new software,
the Year 2000 Issue will not pose significant operational problems for its
computer systems or those of the third party providers. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Company.



                                       16
<PAGE>   17



The Company has initiated communications with all of its significant suppliers
and large customers to determine the extent to which the Company's interface
systems are vulnerable to those third parties' failure to remediate their own
Year 2000 Issues. There is no guarantee that the systems of other companies on
which the Company's systems rely will be timely converted and would not have an
adverse effect on the Company's systems.

The cost of the project and the date on which the Company believes it will
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events, including
the continued availability of certain resources and other factors. However,
there can be no guarantee that these estimates will be achieved and actual
results could differ materially from those anticipated. Specific factors that
might cause such material differences include, but are not limited to, the
availability and cost of personnel trained in this area, the ability to locate
and correct all relevant computer codes, and similar uncertainties.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        Quantitative and qualitative disclosures about market risk are presented
at September 30, 1997 in Item 7A of the Company's Annual Report on Form 10-K,
filed with the SEC on December 24, 1997. Management believes there have been no
material changes in the Company's market risk since September 30, 1997.


                                       17

<PAGE>   18





                         PITTSBURGH HOME FINANCIAL CORP.

                                     PART II

Item 1. Legal Proceedings

        Neither the Company nor the Bank is involved in any pending legal
        proceedings other than non-material legal proceedings occurring in the
        ordinary course of business.

Item 2. Changes in Securities

        Not applicable.

Item 3. Defaults Upon Senior Securities

        Not applicable.

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

        Not applicable.


Item 5. Other Information

        Deadlines for Shareholder Proposals

        Pursuant to Rule 14a-5(e) under the Securities Exchange Act of 1934, as
        amended effective June 29, 1998:

        (1) The deadline for submitting shareholder proposals for inclusion in
            the Company's proxy statement and form of proxy for the Company's
            1999 Annual Meeting of Stockholders pursuant to Rule 14a-8 is 
            August 21, 1998.

        (2) The date after which notice of a shareholder proposal submitted
            outside the processes of Rule 14a-8 is considered untimely is
            October 24, 1998.




                                       18
<PAGE>   19




Item 6. Exhibits and Reports on Form 8-K

        (a)  Exhibits:

             3.1  Amended and Restated Articles of Incorporation of
                  Pittsburgh Home Financial Corp.*

             3.2  Bylaws of Pittsburgh Home Financial Corp.*

             27   Financial Data Schedule

        * Incorporated by reference from the Registration Statement on
          Form S-1 (Registration No. 33-99658) filed by the Registrant with the
          SEC on November 21, 1995, as amended.


          (b) No Form 8-K reports were filed during the quarter.


                                       19
<PAGE>   20





                                   SIGNATURES


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



                                    PITTSBURGH HOME FINANCIAL CORP.


Date: August 14, 1998
                                    By: /s/ J. Ardie Dillen
                                        ----------------------------------  
                                        J. Ardie Dillen
                                        Chairman, President and
                                        Chief Executive Officer


Date: August 14, 1998
                                    By: /s/ Michael J. Kirk
                                        ----------------------------------  
                                        Michael J. Kirk
                                        Executive Vice President and Chief
                                        Financial Officer