U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-KSB

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                   For the fiscal year ended December 31, 2001
                         Commission File Number 0-21809

                         HOME CITY FINANCIAL CORPORATION
                 (name of small business issuer in its charter)
                 Ohio                                34-1839475
                ----                                 ----------
           (State or other Jurisdiction          (IRS  Employer
         of incorporation or organization)     Identification  Number)

         2454  North  Limestone  Street                45503
         ------------------------------                -----
      (Address of principal executive offices)       (zip code)

               Issuer's  telephone  number  (937)  390-0470

       Securities  registered  under  Section  12(b)  of  the  Exchange  Act:
                                not  applicable
                                ---------------

       Securities  registered  under  Section  12(g)  of  the  Exchange  Act

                         Common  Shares  (No  Par  Value)



Check whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 12 months (or for such shorter
period  that the registrant was required to file such reports), and (2) has been
subject  to  such  filing  requirements  for  the  past  90  days.
YES  _X_     NO  ___

Check  if  there  is no disclosure of delinquent filers in response to Item
405  of  Regulation  S-B  contained  in this  form,  and  no  disclosure  will
be contained, to the best of registrant's knowledge,  in  definitive  proxy
or information  statements  incorporated  by reference  in Part III of this
Form 10-KSB or any amendment to this Form 10-KSB.[  X  ]

State  issuer's  revenues  for  the  most  recent fiscal year.  $11,421,000

State the aggregate market value of the voting stock held by non-affiliates
computed  by  reference  to the price at which the stock was sold or the average
bid  and  asked  prices of such stock, as of a specified date within the past 60
days:  As  of  March  4,  2002,  784,400  common  shares  of the Registrant were
outstanding.  The  aggregate  market  value of the shares held by non-affiliates
was  $6,640,637 based upon the closing sale price of $11.300 per share as quoted
by  The  Nasdaq  Stock  Market.

DOCUMENTS  INCORPORATED  BY  REFERENCE

The  following  sections  of  the  definitive  Proxy Statement for the 2002
Annual  Meeting  of  Shareholders  of  Home  City  Financial  Corporation  are
incorporated  by  reference  into  Part  III  of  this  Form  10-KSB:

     1.     Proposal  One  -  Election  of  Directors
     2.     Compensation  of  Directors  and  Executive  Officers
     3.     Voting  Securities  and  Ownership  of  Certain  Beneficial  Owners
            and Management
     4.     Section  16(a)  Beneficial  Ownership  Reporting  Compliance

     Transitional  Small  Business  Disclosure  Format     YES  ___  NO  _X_
                                     PART I

ITEM  1.  DESCRIPTION  OF  BUSINESS

GENERAL

Home City Financial Corporation, a unitary savings and loan holding company
incorporated  in  1996 under the laws of the State of Ohio ("HCFC"), owns all of
the  issued  and  outstanding common shares of Home City Federal Savings Bank of
Springfield, a savings association chartered under the laws of the United States
("Home  City").  In December 1996, HCFC acquired all of the common shares issued
by  Home  City  upon its conversion from a mutual savings association to a stock
savings  association (the "Conversion").  Since its formation, HCFC's activities
have  been  limited  primarily  to  holding  the  common shares of Home City. In
December 2000, HCFC incorporated Home City Insurance Agency, Inc. ("HCIA"), as a
wholly-owned  subsidiary,  which  acquired  the  business  of  a local insurance
agency.

Home City is a savings association principally engaged in the business of making
permanent  first  and  second  mortgage  loans  secured  by  one- to four-family
residential  real  estate  and nonresidential real estate located in Home City's
primary  lending  area  and  investing  in  U.S.  Government  and federal agency
obligations,  interest-bearing  deposits  in  other  financial  institutions,
mortgage-backed  securities and municipal securities.  Home City also originates
loans  for  the  construction  of  residential  real estate and loans secured by
multifamily  real estate (over four units), commercial loans and consumer loans.
The  origination  of  commercial and consumer loans, both secured and unsecured,
constitutes  a  growing  portion  of  Home City's lending activities.  Funds for
lending  and  investment  activities are obtained primarily from deposits, which
are insured up to applicable limits by the Federal Deposit Insurance Corporation
(the  "FDIC"),  repayments  of loans and mortgage-backed and related securities,
advances  from  the  Federal  Home  Loan  Bank (the "FHLB") and other short-term
borrowings.  Home  City  conducts  business  from  its  two  offices  located in
Springfield,  Ohio.  Home  City's primary lending area consists of Clark County,
Ohio,  and  adjacent  counties.

As  a  savings  and  loan  holding  company, HCFC is subject to regulation,
supervision  and  examination  by the Office of Thrift Supervision of the United
States  Department  of  the  Treasury  (the  "OTS").  As  a  savings association
chartered  under  the  laws  of  the  United  States,  Home  City  is subject to
regulation,  supervision  and examination by the OTS and the FDIC.  Home City is
also  a  member  of  the  FHLB  of  Cincinnati.

MARKET  AREA

Home  City  conducts business from its two offices, located in Springfield,
Ohio.  Springfield is located 25 miles east of Dayton, 40 miles west of Columbus
and  80  miles north of Cincinnati.  Home City s primary market area consists of
Clark County, Ohio, and adjacent counties.  Clark County, Ohio, is characterized
by  slightly lower than average levels of income and housing values and a higher
unemployment  level.  Its  strongest  employment categories are wholesale/retail
trade, services and manufacturing, with smaller numbers of residents employed in
the  finance,  insurance  and  real  estate  industry  categories.

FORWARD-LOOKING  STATEMENTS

When  used  in this Form 10-KSB, the words or phrases "will likely result,"
"are  expected  to," will continue," "is anticipated," "estimated," "projected,"
or  similar  expressions  are  intended to identify "forward-looking statements"
within  the  meaning  of  the  Private Securities Litigation Reform Act of 1995.
Such  statements  are  subject  to  certain  risks  and uncertainties, including
changes  in  economic conditions in Home City's market area, changes in policies
by regulatory agencies, fluctuations in interest rates, demand for loans in Home
City's  market  area  and competition, that could cause actual results to differ
materially  from  historical  earnings  and  those  presently  anticipated  or
projected.  Factors  listed  above could affect HCFC's financial performance and
could  cause  HCFC's actual results for future periods to differ materially from
any  statements  expressed  with  respect  to  future periods.  See Exhibit 99.2
hereto "Safe Harbor Under the Private Securities Litigation Reform Act of 1995,"
which  is  incorporated  herein  by  reference.

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

Without  limiting  the  generality  of  the  foregoing,  some  of  the
forward-looking  statements  included  herein  are  the  statements  under  the
following  headings  and  regarding  the  following  matters:

1.  Financial  Condition.  Management's  statements  regarding  the  amount  and
    adequacy  of  the allowance  for  loan  losses  at  December  31,  2001.

2.  Comparison  of Results of Operations for the Fiscal Years Ended December 31,
    2001  and  2000 -"Provision for Loan Losses".  Management's statements
    regarding the  adequacy  of  the  allowance  for  loan  losses  at
    December 31,  2001.

3.  Liquidity  and  Capital  Resources.  Management's  belief that liquidity and
    capital  reserves  are  sufficient  to meet its outstanding short- and long-
    term needs.

HCFC  does  not  undertake,  and  specifically disclaims any obligation, to
publicly  revise  any  forward-looking  statements  to  reflect  events  or
circumstances  after the date of such statements or to reflect the occurrence
of anticipated  or  unanticipated  events.

LENDING  ACTIVITIES

GENERAL.
Home  City's  primary  lending  activity  is  the  origination of
conventional mortgage loans and home equity loans secured by one- to four-family
homes  and  nonresidential  real  estate  located in Home City's primary lending
area.  Loans  for  the  construction  of  one- to four-family homes and mortgage
loans  on  multifamily properties containing five units or more are also offered
by Home City.  Home City does not originate loans insured by the Federal Housing
Administration  or loans guaranteed by the Veterans Administration.  In addition
to  mortgage  lending, Home City makes commercial loans secured by assets of the
borrower  other than real estate and secured and unsecured consumer loans.  Home
City  does  not  originate  its  loans  in  strict  accordance  with traditional
secondary  market  guidelines.

LOAN  PORTFOLIO  COMPOSITION.
The  following  table  presents  certain information with respect to the
composition of Home City's loan portfolio at the dates  indicated:

<TABLE>
<CAPTION>


                                                      At December 31,
                                                      ---------------
                                             2001                        2000
                                            -----                        ----
                                                  (Dollars in thousands)
                                                   Percent of               Percent of
                                        Amount     total loans    Amount    total loans
                                      ---------  -------------  --------  ------------
<S>                                    <C>        <C>            <C>       <C>
Residential real estate loans:
   One- to four-family (first mortgage) $ 58,021   50.07%         $ 58,525  52.50%
   Multifamily. . . . . . . . . . . . .    6,747    5.82             4,197   3.76
   Home equity (second mortgage). . . .    3,337    2.88             2,221   1.99
Nonresidential real estate loans . .      29,754   25.68            25,941  23.27
Land loans . . . . . . . . . . . . .         720    0.62               868   0.78
Construction loans . . . . . . . . .       1,477    1.27             4,692   4.21
                                        --------   -----           --- ---   -- --

      Total real estate loans. . . . .   100,056   86.34            96,444  86.51

Commercial loans:
   Secured, other than by real estate .   11,814   10.19            10,321   9.26
   Other, unsecured credit lines. . . .       86    0.08                45   0.04
                                         -------   ------           ------   -----
      Total commercial loans . . . . . .  11,900   10.27            10,366   9.30

Consumer loans:
   Loans on deposits. . . . . . . . . .      166    0.14               143   0.13
   Other consumer loans . . . . . . . .    3,768    3.25             4,524   4.06
                                          ------   -----             -----   -----
      Total consumer loans . . . . . . .   3,934    3.39             4,667   4.19
                                          ------   -----             -----   -----
Total loans. . . . . . . . . . . . .     115,890  100.00%          111,477 100.00%
                                                  =======                  =======
   Less:
   Allowance for loan losses. . . . . .     (517)                     (532)
                                         --------                    ------
Net loans. . . . . . . . . . . . . .   $ 115,373                $ 110,945
                                         =======                  =========
</TABLE>

LOAN MATURITY SCHEDULE.  The following table sets forth certain information
as  of  December 31, 2001, regarding the dollar amount of loans maturing in Home
City's portfolio based on their contractual terms to maturity.  Demand loans and
loans  having  no  stated  schedule  of  repayments  and  no stated maturity are
reported  as  due  in  one  year  or  less.

<TABLE>
<CAPTION>



                                 Due during                                Due 11-      Due more
                               the year ending    Due 4-5     Due 6-10     15           than  15
                                 December 31,     years       years        years        years
                                                  after       after        after        after
                               -------------     --------    ---------     --------     ---------
                           2002     2003    2004  12/31/01   12/31/01     12/31/01    12/31/01   Total
                         -------   ------  -----  --------    --------    --------     --------    -----
<S>                     <C>      <C>     <C>     <C>        <C>          <C>         <C>        <C>
(Dollars in thousands)
Mortgage loans:
  Residential. . . . .  $ 4,206  $  112  $  912  $   4,832   $ 18,624     $ 31,944    $ 7,475    $ 68,105
  Nonresidential . . .    4,294   1,538   1,003      1,967      9,598       12,424      1,127      31,951
Consumer loans . . . .      232     347     350        860        734        1,182        229       3,934
Commercial loans . . .    5,205     440     610      3,539      1,295          700        111      11,900
                        -------  ------  ------  ---------  ---------     ---------   - ------   --------

  Total loans. . . . .  $13,937  $2,437  $2,875  $  11,198  $  30,251    $  46,250    $ 8,942   $ 115,890
                        =======  ======  ======  =========  =========    =========   ========    ========
</TABLE>

     Of  the  loans  due  more than one year after December 31, 2001, loans with
aggregate  balances  of  $74.7  million  have fixed rates of interest, and loans
with  aggregate  balances  of  $27.3  million  have  adjustable  interest rates.

     ONE-  TO  FOUR-FAMILY  RESIDENTIAL  REAL ESTATE LOANS.  The primary lending
activity  of  Home City has been the origination of permanent conventional loans
secured  by  one- to four-family residences, primarily single-family residences,
located  within  Home City's designated lending area.  Home City also originates
loans  for  the  construction  of one- to four-family residences and home equity
loans.  Each  of  such  loans  is  secured  by a mortgage on the underlying real
estate  and  improvements  thereon,  if  any.

     OTS regulations limit the amount that Home City may lend in relationship to
the  appraised  value  of  the  real estate and improvements at the time of loan
origination.  In  accordance  with  such  regulations, Home City primarily makes
fixed-rate  first  mortgage  loans  on  single-family  or duplex, owner occupied
residences  up  to  95%  of  the  value of the real estate and improvements (the
"Loan-to-Value Ratio" or "LTV").  Low to moderate income loans are granted up to
95%  on  single-family  or duplex, owner occupied residences.  Home equity loans
secured  by first or second mortgages are generally made with a maximum combined
LTV  for the first and second mortgage of 100%.  Home City makes adjustable-rate
first  mortgage  loans for investment purposes on one- to four-family, non-owner
occupied  residences  primarily in amounts up to 80% LTV.  Home City may require
private  mortgage  insurance ("PMI") for the amount of loans in excess of 80% of
the  value of the real estate securing such loans.   Fixed-rate residential real
estate  loans  are  offered  by  Home  City  for  terms  of  up  to  15  years.

     Home  City has been originating adjustable-rate mortgage loans ("ARMs") for
several  years.  ARMs  are  offered by Home City for terms of up to 30 years and
with  various alternative features.  The interest rate adjustment periods on the
ARMs  are  either  one  year  or  three  years,  followed  by one- or three-year
adjustment  periods.  The interest rate adjustments on ARMs presently originated
by  Home  City  are  tied to changes in the weekly average yield on the one- and
three-year  U.S.  Treasury  constant  maturities  index.  Rate  adjustments  are
computed  by adding a stated margin, typically 2.75%, to the index.  The maximum
allowable  adjustment at each adjustment date is 2% with a maximum adjustment of
6%  over  the  term of the loan.  The initial rate is dependent, in part, on how
often  the  rate  can  be  adjusted.  Home  City  also  offers  ARMs  on one- to
four-family  properties  with  a  margin  of  3.0%  over the index and 2% and 6%
maximum adjustments at each adjustment date and over the term of the loan.  Home
City  originates  ARMs which have initial interest rates slightly lower than the
sum  of  the index plus the margin.  Such loans are subject to increased risk of
delinquency  or default due to increasing monthly payments as the interest rates
on  such  loans  increase  to the fully-indexed level, although such increase is
generally  lower  than  industry  standards  and  is  considered  in Home City's
underwriting  of  any  such  loans  with a one- to three-year adjustment period.

     The  aggregate  amount  of Home City's one- to four-family residential real
estate  loans  equaled  approximately  $58.0  million  at December 31, 2001, and
represented  50.07%  of loans at such date.  The largest individual loan balance
on  a  one-  to four-family loan at such date was $669,992.  At such date, loans
secured by one- to four-family residential real estate with outstanding balances
of  $514,003,  or  0.89%,  of  Home  City's one- to four-family residential real
estate  loan  balance,  were  more  than 90 days delinquent or nonaccruing.  See
"Delinquent  Loans,  Non-performing  Assets  and  Classified  Assets."

     MULTIFAMILY RESIDENTIAL REAL ESTATE LOANS.  In addition to loans on one- to
four-family  properties, Home City makes loans secured by multifamily properties
containing over four units.  Such loans are made with adjustable interest rates,
a  maximum  LTV  of  80% and a maximum term of  20 years or with a fixed rate, a
maximum  LTV  of  80%  and  a  maximum  term  of  up  to  seven  years.

     Multifamily  lending  is generally considered to involve a higher degree of
risk because the loan amounts are larger and the borrower typically depends upon
income  generated  by  the project to cover operating expenses and debt service.
The  profitability  of  a  project  can  be  affected  by  economic  conditions,
government  policies and other factors beyond the control of the borrower.  Home
City  attempts  to  reduce  the  risk  associated  with  multifamily  lending by
evaluating  the  creditworthiness  of the borrower and the projected income from
the  project  and by obtaining personal guarantees on loans made to corporations
and  partnerships.  Home  City currently requires that borrowers agree to submit
financial statements, rent rolls and tax returns annually to enable Home City to
monitor  the  loans.

     At  December  31,  2001,  loans  secured  by multifamily properties totaled
approximately  $6.7  million,  or 5.82% of Home City's total loan portfolio, all
of  which  were  secured  by  property located within Home City's primary market
area.  At  such  date,  loans secured by multifamily properties with outstanding
balances  of $232,572, or 3.45% of such loans, were more than 90 days delinquent
or  nonaccruing.  See  "Delinquent  Loans,  Non-performing Assets and Classified
Assets."  The  largest  loan  secured by a multifamily property had a balance at
December  31,  2001,  of  approximately  $1.2  million.

     HOME  EQUITY LOANS.  Home City offers home equity loans secured by first or
second mortgages on one- to four-family residential real estate located in Clark
County,  Ohio, and adjacent counties.  Such loans are made for various purposes,
including  home  improvement,  debt  consolidation  and  consumer purchases. The
interest rates on loans secured by such mortgages are adjustable, generally with
a  maximum  combined  LTV  for  the  first  and  second  mortgage  of  100%.

     At December 31, 2001, home equity loans totaled approximately $3.3 million,
or 2.88% of Home City's total loan portfolio.  All of such loans were secured by
property  located  within  Home  City's primary market area.  At such date, home
equity loans with outstanding balances of  $99,189, or 2.97% of such loans, were
90  days  delinquent  or  non-accruing.  See  "Delinquent  Loans, Non-performing
Assets  and  Classified  Assets."  The balance of the largest single home equity
loan  was  $191,282  at  December  31,  2001.

     NONRESIDENTIAL  REAL  ESTATE  LOANS.  Home City also makes loans secured by
nonresidential  real  estate  consisting  of retail stores, office buildings and
businesses.  (The  "nonresidential  real estate loans" category does not include
loans  made  for  commercial purposes that are secured by real estate, which are
described  under  the  heading  "Commercial Loans.")  Nonresidential real estate
loans  generally  are originated with terms of up to 20 years and a maximum loan
amount  of  $1.6  million.  Such  loans  generally  have  a  maximum LTV of 80%.

     Nonresidential  real  estate  lending  is generally considered to involve a
higher degree of risk than residential lending due to the relatively larger loan
amounts  and  the  effects  of  general  economic  conditions  on the successful
operation  of  income-producing properties.  If the cash flow on the property is
reduced,  for  example,  as  leases  are not obtained or renewed, the borrower's
ability  to repay may be impaired.  Home City has endeavored to reduce such risk
by  evaluating  the  credit  history  and  past performance of the borrower, the
location  of  the  real  estate,  the quality of the management constructing and
operating  the property, the debt service ratio, the quality and characteristics
of  the  income  stream  generated by the property and appraisals supporting the
property's  valuation.  Home  City  also  requires  personal  guarantees on such
loans.

     At  December  31,  2001, Home City had a total of $29.8 million invested in
nonresidential  real estate loans, all of which were secured by property located
within  Home  City's  primary  market  area.  Such loans comprised approximately
25.68%  of Home City's total loans at such date.  At such date, loans secured by
nonresidential  real  estate  with outstanding balances of $482,481, or 1.62% of
such  loans,  were  90  days delinquent or non-accruing.  See "Delinquent Loans,
Non-performing  Assets  and  Classified  Assets."  The  balance  of  the largest
nonresidential  real  estate  loan  was  $932,729.

     Federal regulations limit the amount of nonresidential mortgage loans which
an  association may make to 400% of its tangible capital.  At December 31, 2001,
Home  City's  nonresidential  mortgage  loans  totaled  266.64%  of  Home City's
tangible  capital.

     LAND LOANS.  Home City makes two varieties of land loans.  First, loans are
made  for  the acquisition of land to be developed for construction.  Such loans
are  usually  made for relatively short periods of time, generally not more than
three  years,  with  fixed  interest  rates.  Second,  loans  are  also  made to
borrowers  who  purchase  and  hold land for various reasons, such as the future
construction  of  a  residence.  Such  loans are generally originated with fixed
interest  rates and terms of up to 15 years.  Land loans are secured by the land
being  purchased  with  the  loan  proceeds  and have maximum LTVs of 65 to 80%.

     At  December  31, 2001, land loans totaled approximately $720,000, or 0.62%
of Home City's total loan portfolio. The largest land loan at December 31, 2001,
had  a  balance  of  approximately  $328,941.  All of such loans were secured by
property  located within Home City's primary market area, of which no loans were
more  than  90  days  delinquent  or  non-accruing.  See  "Delinquent  Loans,
Non-performing  Assets  and  Classified  Assets."

     CONSTRUCTION  LOANS.  Home  City  makes  loans  for  the  construction  of
residential  and  nonresidential  real  estate.  Such  loans  are  structured as
permanent  loans with fixed rates of interest and for terms of up to 15 years or
adjustable  rates  of  interest  and  terms  of  up  to  30  years.  Most of the
construction loans originated by Home City have been made to owner-occupants for
the  construction  of  single-family  homes  by  a  general  contractor.

     Construction loans generally involve greater underwriting and default risks
than  do  loans  secured  by  mortgages  on  existing  properties  due  to  the
concentration  of  principal  in a limited number of loans and borrowers and the
effects  of general economic conditions on real estate developments, developers,
managers  and  builders.  In addition, such loans are more difficult to evaluate
and  monitor.  Loan  funds  are  advanced upon the security of the project under
construction,  which  is  more  difficult  to  value  before  the  completion of
construction.  Moreover,  because  of  the  uncertainties inherent in estimating
construction  costs,  it  is relatively difficult to evaluate accurately the LTV
and the total loan funds required to complete a project.  In the event a default
on  a  construction  loan  occurs  and  foreclosure follows, Home City must take
control  of  the  project  and  attempt  either  to  arrange  for  completion of
construction  or dispose of the unfinished project.  Additional risk exists with
respect to loans made to developers who do not have a buyer for the property, as
the  developer  may  lack funds to pay the loan if the property is not sold upon
completion.  Home  City  attempts to reduce such risks on loans to developers by
requiring  personal  guarantees  and  reviewing  current  personal  financial
statements  and  tax  returns  and  other projects undertaken by the developers.

     At  December  31,  2001, a total of $1.5 million, or approximately 1.27% of
Home  City's  total  loans, consisted of construction loans.  All of Home City's
construction  loans  are  secured by property located within Home City's primary
market  area,  and  the economy of such lending area has been relatively stable.
At December 31, 2001, all of such loans were performing in accordance with their
terms.

     COMMERCIAL LOANS.  Home City also originates loans for commercial purposes.
Such  loans  are  primarily  of  two types: those secured by nonresidential real
estate  and those secured by assets of the borrower other than real estate, such
as  equipment  or  receivables.

     Various chattels, other than real estate, secured commercial loans totaling
$25.0 million at December 31, 2001. The real estate securing commercial loans at
December  31, 2001, was comprised of warehouses, office buildings and industrial
buildings.  This type of loan is made with terms of up to 20 years and a maximum
loan  amount  of  $1.6 million and may have a maximum LTV of 80% or more.  These
loans  are made with adjustable interest rates, with the interest rates based on
prime  or  one-,  three-  or  five-year  U.S.  Treasury  obligations.

     The  borrowers  of  commercial loans totaling $11.9 million at December 31,
2001, were classified as "small business borrowers."  These loans were primarily
secured  by  accounts receivable, inventory and equipment.  The commercial loans
secured  other  than  by real estate are made with terms of up to seven years, a
maximum  loan  amount  of $1.0 million and a maximum LTV of 75%. These loans are
made  with  adjustable interest rates, with the interest rates based on prime or
prime  plus  a  specified  percentage  above  prime.

     Commercial  lending  entails  significant  risks.  The loans are subject to
greater  risk  of  default  during  periods  of  adverse  economic  conditions.
Particularly  with  respect  to  loans secured by equipment, inventory, accounts
receivable  and  other  non-real  estate  assets,  the  collateral  may  not  be
sufficient  to  ensure  full payment in the event of default. Home City tries to
minimize  such risks through its prudent underwriting, which includes guidelines
to determine the acceptability of the collateral to be pledged. An evaluation is
made  of  the  real estate, if any, accounts receivable, inventory and equipment
securing  the  loan  as  to their value, marketability, strength of brand names,
stability  of  conditions  and  environmental  impact  in  order  to mitigate or
minimize  the  risk  of loss. Loan advance amounts are established in accordance
with  the  type  of  collateral  asset.  Credit guidelines have been established
relative  to  debt  service  coverage,  leveraging,  established  profitability,
guarantor  strength,  liquidity  and  sales  concentration. The guarantee of the
principals will generally be required on all loans made to closely held business
entities  and  affiliates.  The  credit  information  required  includes  fully
completed financial statements, two years' federal income tax returns, a current
credit  report  and,  generally,  a  formal  business plan.  Adequate insurance,
appropriate  regulatory  disclosures  and  both a preliminary and final lawyer's
title  opinion  or  title  insurance  are required when real estate is involved.

     At  December 31, 2001, Home City had commercial loans in the aggregate
Amount Of $11.9  million,  or  approximately  10.27%  of Home City's total
loans. At such date,  commercial  loans  with outstanding balances of $94,817,
or 0.80% of such loans,  were  90  days  delinquent  or  non-accruing.  See
"Delinquent  Loans, Non-performing  Assets  and  Classified  Assets."  The
total indebtedness of the largest  single  borrower  within  the  commercial
portfolio was $1.6 million at December  31,  2001.

     CONSUMER LOANS.  Home City makes various types of consumer loans, including
unsecured  loans  and  loans  secured  by deposits.  Such loans are made only at
fixed  rates  of  interest  for  terms  of  up  to 15 years.  Home City has been
attempting  to increase its consumer loan portfolio as part of its interest rate
risk  management  efforts  and  because a higher rate of interest is received on
consumer  loans,  although during  2001 consumer loans decreased as a percent of
Home  City's  loan  portfolio.

     Consumer  loans  may  entail  greater  credit  risk than do residential
Mortgage loans.  The  risk  of  default  on  consumer  loans  increases during
periods of recession,  high  unemployment  and  other adverse economic
conditions. Although Home  City has not had significant delinquencies on
consumer loans, no Assurance can  be  provided  that  delinquencies  will  not
increase.

     At  December 31, 2001, Home City had approximately $3.9 million, or 3.39%
of its total  loans,  invested  in  consumer  loans.  At such date, consumer
loans with outstanding  balances  of  $64,111, or 1.63%  of  such loans, were
90 days delinquent or non-accruing.  See "Delinquent Loans,  Non-performing
Assets and Classified Assets." The balance of the largest consumer  loan  was
$70,000  at  December  31,  2001.

     LOAN  SOLICITATION  AND PROCESSING.  Loan originations are developed from a
number  of sources, including continuing business with depositors, borrowers and
real  estate developers, periodic newspaper solicitations by Home City's lending
staff  and  walk-in  customers.

     Loan applications for permanent mortgage loans are taken by loan personnel.
Home  City  obtains  a  credit  report,  verification  of  employment  and other
documentation  concerning  the  credit-worthiness  of  the  borrower.  Home City
generally limits the ratio of mortgage loan payments to the borrower's income to
25% and the ratio of the borrower's total debt payments to income to 35-42%.  An
appraisal of the fair market value of the real estate on which Home City will be
granted  a  mortgage  to  secure  the  loan  is  prepared  by an independent fee
appraiser  approved  by  the  Board  of  Directors.

     Unless  Home  City  is  aware of factors which may lead to an environmental
concern, Home City generally does not require any form of specific environmental
study  at the time a loan secured by one- to four-family residential real estate
is made.  If, however, Home City is aware of any such factor at the time of loan
origination,  Home  City  requires  the  completion and satisfactory review of a
Phase I Environmental Assessment before such loan is made.  For loans secured by
multifamily  and  nonresidential real estate, a Phase I Environmental Assessment
is  generally  completed  and  satisfactorily  reviewed before the loan is made.

     Upon  the completion of the appraisal and the receipt of information on the
borrower,  the  application  for  a  loan  is  submitted  to  various management
officials for approval or rejection if the loan amount does not exceed $400,000.
If  the  loan amount exceeds $400,000, or if the application does not conform in
all  respects  with  Home  City's  underwriting  guidelines,  the application is
submitted  to  the Executive Loan Committee or the Board of Directors for review
and  for  final  disposition.  If  a  mortgage  loan application is approved, an
attorney's  opinion  of  title is obtained on the title to the real estate which
will  secure  the  mortgage  loan.  Borrowers are required to carry satisfactory
fire and casualty insurance and flood insurance, if applicable, and to name Home
City  as  an  insured  mortgagee.

     The  procedure  for  approval  of  construction  loans  is  the same as for
permanent mortgage loans, except that an appraiser evaluates the building plans,
construction specifications and estimates of construction costs.  Home City also
evaluates  the  feasibility  of  the  proposed  construction  project  and  the
experience  and  record  of the builder.  Consumer loans are underwritten on the
basis  of the borrower's credit history and an analysis of the borrower's income
and expenses, ability to repay the loan and the value of the collateral, if any.
Commercial  loans  are  underwritten on the basis of the source of the cash flow
required  to  service  the  debt  and  the  value  of the security for the loan.

     Home  City's loans carry no prepayment penalties, but do provide the entire
balance  of  the  loan is due upon sale of the property securing the loan.  Home
City  generally  enforces  such  due-on-sale  provisions.

LOAN  ORIGINATIONS,  PURCHASES AND SALES.  Home City originates a greater number
of  fixed-rate loans than adjustable-rate loans.  See "DESCRIPTION OF BUSINESS -
Loan  Maturity  Schedule."  Home  City  occasionally  will  participate in loans
originated  by  other  institutions.  During  2001  and  2000  Home City did not
participate  in  any  loans  originated  by  other  institutions.

<PAGE>
     The following table presents Home City's loan origination and participation
activity  for  the  years  indicated:

<TABLE>
<CAPTION>


                                         December 31,

                                       2001       2000
                                     ---------  ---------
                                    (Dollars in thousands)
<S>                                  <C>        <C>
Loans originated:
  One- to four-family residential (1) $ 23,500   $ 14,350
  Multifamily residential . . . . . .    1,504      1,700
  Nonresidential. . . . . . . . . . .   10,241     10,828
  Commercial. . . . . . . . . . . . .   19,921     11,271
  Consumer. . . . . . . . . . . . . .    2,289      4,404
                                      --------    --------

      Total loans originated. . . . . $ 57,455   $ 42,553

Loans purchased . . . . . . . . . .          0          0

Reductions:
  Principal repayments. . .  . . . .   (53,042)   (28,007)
  Sales of loans. . . . . . .. . .           0       (577)
  Increase in other items, net (2) .       155        132
                                       --------   --------

      Net increase. . . . . . . . . . $  4,568   $ 14,101
                                       =======     =======
</TABLE>



(1)     Includes  construction  loans.
(2)     Consists of unearned and deferred fees, costs and the allowance for loan
losses.

     OTS  regulations  generally  limit  the  aggregate  amount  that  a savings
association  may  lend  to  any  one  borrower  to an amount equal to 15% of the
association's  total  capital under the regulatory capital requirements plus any
additional  loan  reserve  not included in total capital.  A savings association
may lend to one borrower an additional amount not to exceed 10% of total capital
plus  additional  reserves  if the additional amount is fully secured by certain
forms  of  "readily  marketable  collateral."  Real  estate  is  not  considered
"readily  marketable  collateral."  In  addition,  the  regulations require that
loans  to  certain related or affiliated borrowers be aggregated for purposes of
such  limits.  An  exception to these limits permits loans to one borrower of up
to  $500,000  "for  any  purpose."

     Based on such limits, Home City was able to lend approximately $1.8 million
to  one  borrower  at  December  31,  2001.  The  largest  amount  Home City had
outstanding  to one borrower at December 31, 2001, was $1.6 million.  Such loans
were  secured  by  commercial  real  estate  properties.  All of such loans were
current  at  December  31,  2001.

     The  aggregate  amount  of  commercial  loans not primarily secured by real
estate  that  Home  City  may have outstanding may not exceed 20% of Home City's
total  assets, and any amount in excess of 10% of total assets must be for small
business  loans.  At  December  31, 2001, Home City was in compliance with those
limitations.

DELINQUENT  LOANS, NON-PERFORMING ASSETS AND CLASSIFIED ASSETS.  When a borrower
fails  to  make  a  required  payment on a loan, Home City attempts to cause the
delinquency  to  be  cured  by  contacting  the  borrower.  In  most  cases,
delinquencies  are  cured  promptly.

     When  a  loan  is  fifteen  days or more delinquent, the borrower is sent a
delinquency  notice.  When a loan is thirty days delinquent, Home City generally
telephones  the  borrower.  Depending upon the circumstances, Home City may also
inspect  the  property  and  inform  the  borrower of the availability of credit
counseling  from  Home  City  and counseling agencies.  Before a loan becomes 90
days  delinquent,  Home  City  will  make further contact with the borrower and,
depending  upon  the  circumstances, may arrange appropriate alternative payment
arrangements.  After  a loan becomes 90 days delinquent, Home City may refer the
matter  to  an  attorney  for foreclosure.  A decision as to whether and when to
initiate  foreclosure  proceedings is based on such factors as the amount of the
outstanding  loan  in  relation  to the original indebtedness, the extent of the
delinquency  and  the  borrower's ability and willingness to cooperate in curing
delinquencies.  If  a foreclosure occurs, the real estate is sold at public sale
and  may  be  purchased  by  Home  City.

      Real  estate acquired, or deemed acquired, by Home City as a result of
foreclosure  proceedings  is classified as real estate owned ("REO") until it is
sold.  When  property  is  so  acquired,  or deemed to have been acquired, it is
initially  recorded  by Home City at the lower of cost or fair value of the real
estate,  less estimated costs to sell.  Any reduction in fair value is reflected
in  a  valuation  allowance  account  established  by a charge to income.  Costs
incurred  to  carry  other  real  estate  are  charged  to  expense.

     Home  City  places  a  loan  on  nonaccrual  status  when the principal and
interest  is  delinquent  90  days  or more and deducts from income the interest
previously  accrued.

     The  following table reflects the amount of loans in a delinquent status as
of  the  dates  indicated:

<TABLE>
<CAPTION>




                                        December 31, 2001              December 31, 2000
                                       ------------------              ------------------

                                                          Percent                   Percent
                                                         of total                  of total
                                        Number    Amount    loans   Number  Amount   loans
                                      --------  ---------  ------  ------  -------  ------
                                                     (Dollars in thousands)
<S>                                   <C>       <C>        <C>     <C>     <C>      <C>
Loans delinquent for (1):
   30-59 days  . . . . . . . . . . .        44  $  1,752   1.51%      20  $  1,046   0.94%
   60-89 days  . . . . . . . . . . .        12       533   0.46       12       400   0.36
   90 days and over  . . . . . . . .        31     1,488   1.28        6        72   0.06
                                      --------  ---------  ------  ------  -------  ------

Total delinquent loans . . . . . . .        87  $  3,773   3.25%      38  $  1,518   1.36%
                                      ========  =========  ======  ======  =======  ======
</TABLE>

(1)  The number of days a loan is delinquent is measured from the day the
     payment was due  under  the  terms  of  the  loan  agreement.
<PAGE>

     The  following  table sets forth information with respect to the nonaccrual
status  of  Home  City's  loans  which  are  90  days or more past due and other
non-performing  assets  at  the  dates  indicated:

<TABLE>
<CAPTION>




                                                         December 31,
                                                         ------------
<S>                                          <C>             <C>       <C>
                                                2001        2000        1999
                                             --------     --------      -----
                                                      (Dollars in thousands)
Loans accounted for on a nonaccrual basis:
Real estate:
     Residential. .           . . . . . . .  $   613       $  72      $ 193
     Nonresidential . . . . .           . .      760           0          0
Commercial. . . . . . . . . . . . . . . . .      103           0          0
Consumer. . . . . . . . . . . . . . . . . .       11           0          0
                                             -------      ------      -----

      Total non-performing loans.  . . . . . $ 1,488       $  72      $ 193

Real estate owned . . . . . . . . . . . . .        0           0          0
                                            -------       ------      -----

      Total non-performing assets . .        $ 1,488       $  72      $ 193
                                              ======       =====       ====

      Total loan loss allowance . . . . . . .$   517       $ 532      $ 491

      Total non-performing assets as
      a percentage of total assets. . . . . .  1.03%       0.06%      0.18%

Loan loss allowance as a percent
      of non-performing loans . . . . . . .   34.77%     738.89%    254.40%
</TABLE>

     During  the fiscal year ended December 31, 2001, $18,000 in interest income
was  recognized  and  an additional $73,000 would have been recorded as interest
income on nonaccruing loans had such loans been accruing pursuant to contractual
terms.  During  such  period,  Home  City  had  no restructured loans within the
meaning  of SFAS No. 115.  There are no loans which are not currently classified
as  nonaccrual,  more  than 90 days past due or restructured but which may be so
classified  in the near future because management has concerns as to the ability
of  the  borrowers  to comply with repayment terms.  For additional information,
see  Note  D  of  the  Notes  to  Financial  Statements.

     OTS  regulations  require  that  each  thrift  institution classify its own
assets  on  a  regular  basis.  Problem  assets are classified as "substandard,"
"doubtful," or "loss."  "Substandard" assets have one or more defined weaknesses
and  are  characterized by the distinct possibility that the insured institution
will sustain some loss if the deficiencies are not corrected.  "Doubtful" assets
have  the  same  weaknesses  as  "substandard"  assets,  with  the  additional
characteristics  that  (i) the weaknesses make collection or liquidation in full
on the basis of currently existing facts, conditions and values questionable and
(ii)  there  is  a  high  possibility  of  loss.  An  asset classified "loss" is
considered  uncollectible  and  of  such little value that its continuance as an
asset  of  the  institution  is  not  warranted.  The regulations also contain a
"special  mention"  category, consisting of assets which do not currently expose
an  institution  to  a  sufficient  degree of risk to warrant classification but
which possess credit deficiencies or potential weaknesses deserving management's
close  attention.

     Generally,  Home  City  classifies  as  "substandard"  all  loans  that are
delinquent  more than 90 days, unless management believes the delinquency status
is short-term due to unusual circumstances.  Loans delinquent fewer than 90 days
may  also  be  classified  if the loans have the characteristics described above
rendering  classification  appropriate.

     The  aggregate  amount  of  Home City's classified assets at the dates
Indicated were  as  follows:

<TABLE>
<CAPTION>




                                      December 31,
<S>                             <C>     <C>    <C>
                                  2001   2000   1999
                                ------  -----  -----
                               (Dollars in thousands)
Classified assets:
   Substandard. . . . . . . . . $ 2,229  $ 905  $ 380
   Doubtful . . . . . . . . . .       0      0      0
                                 ------  -----  -----
      Total classified assets.  $ 2,229  $ 905  $ 380
                                 ======  =====  =====
</TABLE>

     Federal  examiners  are authorized to classify an association's assets.  If
an  association does not agree with an examiner's classification of an asset, it
may appeal this determination to the Regional Director of the OTS. Home City had
no  disagreements  with  the examiners regarding the classification of assets at
the  time  of  the  last  examination.

     OTS regulations require that Home City establish prudent general allowances
for  loan  losses  for  any assets classified as substandard or doubtful.  If an
asset,  or  portion  thereof,  is  classified  as  loss,  Home  City must either
establish specific allowances for losses in the amount of 100% of the portion of
the  asset  classified  loss,  or  charge  off  such  amount.

     ALLOWANCE  FOR  LOAN  LOSSES.  Home  City  maintains  an allowance for loan
losses  based  upon  a number of relevant factors, including but not limited to,
trends  in  the level of non-performing assets and classified loans, current and
anticipated  economic  conditions  in  the  primary  lending  area,  past  loss
experience,  possible losses arising from specific problem assets and changes in
the  composition  of  the  loan  portfolio.

     The single largest component of Home City's loan portfolio consists of one-
to  four-family residential real estate loans.  Substantially all of these loans
are  secured by residential real estate and required down payments of 20% of the
lower  of  the  sales price or appraisal value of the real estate.  In addition,
these  loans  are  secured by property in Home City's lending area of a 100-mile
radius  from  Springfield,  Ohio.  Home  City's practice of making loans only in
their  market  area  and  requiring a 20% down payment have contributed to a low
historical  charge-off  history.

     In addition to one- to four-family residential real estate loans, Home City
makes  additional  real  estate  loans,  including  home  equity,  multifamily
residential  real  estate,  nonresidential  real  estate and construction loans.
These loans are secured by property in Home City's lending area and also require
the  borrower  to  provide  a down payment.  Home City also makes commercial and
consumer  loans.  Although  these  types  of  loans  are considered to involve a
higher degree of risk than loans secured by one- to four-family residential real
estate,  Home  City has not experienced a higher level of charge-offs from these
types  of  loans,  than  those  secured  by one- to four-family residential real
estate.

     The  allowance  for  loan  losses  is  reviewed  quarterly  by the Board of
Directors.  The review process includes a credit analysis of loans on the "watch
list,"  past  due  loans,  new  significant borrowings and random samples of new
loans  made.  The  analysis  of  loans secured by multifamily and nonresidential
real  estate and commercial loans includes a review of tax returns and financial
statements,  and  the review of all loans includes an estimation of the value of
the collateral.  The amounts of provisions for loan losses for the periods shown
in  the  table  below  were  determined  based  upon such loan review, past loss
experience,  anticipated  growth  and prevailing economic conditions.  While the
Board  of  Directors  believes  that  it  uses the best information available to
determine  the  allowance  for  loan  losses, unforeseen market conditions could
result  in  material  adjustments,  and  net  earnings  could  be  significantly
adversely  affected,  if circumstances differ substantially from the assumptions
used  in  making  the  final  determination.

     The  following  table  sets  forth an analysis of Home City's allowance for
loan  losses  for  the  years  indicated:

<TABLE>
<CAPTION>


                                                  (Dollars in thousands)
<S>                                                    <C>     <C>
                                                        2001    2000
                                                       ------  ------

Balance at beginning of year. . . . . . . . . . . . .  $ 532   $ 491

Charge-offs:
   Residential and consumer loans . . . . . . . .      (180)    (69)
Recoveries. . . . . . . . . . . . . . . . . . . . . .     25       0
Provision for loan losses (charged to operations) . .    140     110
                                                       ------  -----
Balance at end of year. . . . . . . . . . . . . . . .  $ 517   $ 532
                                                       ======  =====

Ratio of net charge-offs (recoveries) to average net
   loans outstanding during the year. . . . . . . . .  0.13%   0.07%
Ratio of allowance for loan losses to total loans . .  0.45%   0.48%
</TABLE>

     The  following table sets forth the allocation of Home City's
allowance for loan losses  at  the  dates  indicated:

<TABLE>
<CAPTION>


                                                  (Dollars in thousands)

<S>                                                     <C>    <C>
                                                         2001   2000
                                                        -----  -----

Allowance for loan losses:
     Loans secured by nonresidential real estate . . .  $ 161  $  35
     Loans secured by one- to four-family real estate.    180    220
     Consumer loans. . . . . . . . . . . . . . . . . .     43     82
     Commercial loans. . . . . . . . . . . . . . . . .    127    121
                                                        -----   ----
                                                          511    458
     Unallocated . . . . . . . . . . . . . . . . . . .      6     74
                                                        -----   ----
Total allowance for loan losses. . . . . . . . . . . .  $ 517  $ 532
                                                        =====  =====
</TABLE>


MORTGAGE-BACKED  SECURITIES

     Home  City  maintains a portfolio of mortgage-backed securities in the form
of Government National Mortgage Association ("GNMA"), Federal Home Loan Mortgage
Corporation  ("FHLMC")  and  Federal  National  Mortgage  Association  ("FNMA")
participation  certificates.  Mortgage-backed  securities generally entitle Home
City  to  receive  a  portion  of  the  cash  flows  from  an identified pool of
mortgages.  GNMA,  FHLMC  and FNMA are government agencies.  GNMA securities are
backed  by  Federal  Housing  Authority-insured  and  Veterans
Administration-guaranteed  loans.  The  timely payment of principal and interest
on  GNMA,  FHLMC  and  FNMA securities is guaranteed by the respective agencies.



     The  following  table  sets  forth  the  composition  of  Home  City's
mortgage-backed  securities  at  the  dates  indicated:

<TABLE>
<CAPTION>




                                          December 31, 2001     December 31, 2000
                                          -------------------   -----------------
<S>                                        <C>         <C>     <C>         <C>
                                                    (Dollars in thousands)

                                            Amortized   Fair    Amortized   Fair
                                            Cost        value   cost        value
                                           ----------  ------  ----------  ------

GNMA, FHLMC and FNMA
   certificate                              $  9,664   $  9,603  $  462    $  460
                                           ----------  ------  ----------  ------

Total mortgage-backed
   securities . . . . . . . . . . . . . .   $  9,664   $  9,603  $  462    $  460
                                            ========    =======   ======== ======
</TABLE>

     The  following table sets forth information regarding scheduled maturities,
amortized  costs,  market  value  and  weighted-average  yields  of  Home City's
mortgage-backed  securities  at  December  31,  2001.  Expected  maturities will
differ  from  contractual  maturities  due  to  scheduled repayments and because
borrowers  may  have  the  right  to  call or prepay obligations with or without
prepayment  penalties.  The following table does not take into consideration the
effects  of  scheduled  repayments  or  the  effects  of  possible  prepayments.

<TABLE>
<CAPTION>




                                                             At  December  31,  2001
                       ------------------------------------------------------------------------------------------------------
                                             After one to        After five to                          Total  mortgage-backed
                       One year or less      five years          ten years            After ten years   securities portfolio
                      ----------------       ----------     ---------     ---------------     --------------------
                       Carrying   Average    Carrying  Average   Carrying   Average   Carrying   Average   Carrying   Market
                       value      yield      value     yield     value      yield     value     yield      value      value
                        ---------  --------  ---------  --------  ---------  --------  ---------  --------  ---------  -------
                                                             (Dollars in thousands)

<S>                   <C>        <C>       <C>        <C>       <C>        <C>       <C>        <C>       <C>        <C>

GNMA,
FHLMC & FNMA
   certificates. . . .  $       0        0%  $       0        0%  $  740     5.65%    $ 8,863     5.59%      $ 9,603   $ 9,603
                        ---------  --------  ---------  --------  ---------  --------  ---------  --------  ---------  -------

   Total. . . . . . . . $       0        0%  $       0        0%  $  740     5.65%    $ 8,863     5.59%      $ 9,603   $ 9,603
                        =========  ========  =========  ========  =========  ========  =========  ========  =========  =======


                         Average
                         yield
                        --------
         (Dollars in thousands)

<S>                     <C>

GNMA,
FHLMC & FNMA
   certificates.  . .     5.59%
                       --------

   Total. . . . . . .     5.59%
                         ======

</TABLE>

     For  additional  information,  see Note C of the Notes to Consolidated
Financial Statements.

INVESTMENT  ACTIVITIES

     OTS  regulations require that Home City maintain a minimum amount of liquid
assets,  which  may  be  invested  in  U.S.  Treasury obligations, securities of
various  federal  agencies,  certificates  of deposit at insured banks, bankers'
acceptances  and federal funds.  Home City is also permitted to make investments
in  certain commercial paper, corporate debt securities rated in one of the four
highest  rating  categories  by  one  or  more nationally recognized statistical
rating  organizations,  and mutual funds, as well as other investments permitted
by  federal  regulations.  See  "REGULATION"  and  "MANAGEMENT'S  DISCUSSION AND
ANALYSIS  OR  PLAN  OF  OPERATION."

<PAGE>

The following table sets forth information concerning Home City's investments at
the  dates  indicated:


<TABLE>
<CAPTION>


                                     At  December  31,          At  December  31,
                             -------------------------------    ------------------------------
                                           2001                       2000
                                           ----                       ----
                             Carrying   % of    Market  % of    Carrying  % of    Market  % of
                              value     total   value   total   value     total   value   total
                              ------  -------  ------  -------  ------  -------  ------  -------
                                                  (Dollars in thousands)

<S>                          <C>       <C>     <C>     <C>     <C>       <C>     <C>     <C>
Interest-bearing demand
     deposits in other
     financial
     institutions             $  638     7.10%  $  638   7.10%  $  72     1.25%   $  72    1.25%
Federal funds sold . . . . .   2,239    24.91    2,239  24.91     273     4.73      273    4.73
Time deposits in other
     financial institutions
                                  24     0.27       24   0.27      24     0.42       23    0.40
Investment securities:
     U.S. government and
     federal agencies
                                 356     3.96      356   3.96    1,295   22.45    1,295   22.46
Municipal securities (1) . .   1,237    13.76    1,237  13.76    1,006   17.44    1,006   17.45
Equity securities:
 FHLMC stock . . . . . . . .   1,499    16.68    1,499  16.68      887   15.38      887   15.38
 Service corporation (2) . .      28     0.31       28   0.31       28    0.49       28    0.49
 FHLB stock. . . . . . . . .   2,079    23.13    2,079  23.13    1,779   30.85    1,779   30.85
 FNMA preferred stock. . . .     888     9.88      888   9.88      403    6.99      403    6.99
                              ------  -------  ------  -------  ------  -------  ------  -------
Total investments. . . . . .  $8,988   100.00%  $8,988 100.00%  $5,767  100.00%  $5,766  100.00%
                              ======  =======  ======  =======  ======  =======  ======  =======
</TABLE>


(1)     Bonds  issued  mainly  by  local  school  districts  and municipalities.
(2)     Home  City  owns  100% of Homciti Service Corp., whose assets consist of
        common  shares  of Intrieve, Incorporated, a data service provider, and
        a 0.875% ownership  in  a  joint  venture  which  owns  The  Springfield
        Inn, a hotel in Springfield,  Ohio.

     The following tables set forth the contractual maturities, carrying values,
market  values  and  average  yields  for  Home  City's investment securities at
December  31,  2001.

<TABLE>
<CAPTION>


                                                     At December 31, 2001
                              One year or less     After one to five years         After five years
                             -----------------     -----------------------         ----------------
                              Carrying   Average      Carrying     Average     Carrying     Average
                              value      yield        value        yield       value        yield
                             ------       ------      ------      ------      ------       ------
                                                    (Dollars in thousands)

<S>                          <C>        <C>          <C>         <C>        <C>          <C>
Investment securities:
U.S. government and federal
   agency securities . . . .  $    0        0%        $    0         0%      $  356       4.02%
Municipal securities . . . .     125     4.32            100      4.00        1,012       4.84
Equity securities: (1)
   FHLMC stock . . . . . . .       0        0              0         0        1,499       5.68
   Service corporation . . .       0        0              0         0           28          0
   FNMA preferred stock. . .     888     5.90              0         0            0          0
                              ------  ------          ------    ------       ------
Total investments. . . . . .  $1,013     5.71%        $  100      4.00%      $2,895       5.13%
                              ======    ======        ======     ======      ======      ======
</TABLE>
------------------------------------------
(1)     By  their  nature,  equity  securities  have  no  maturity  date.

<TABLE>
<CAPTION>


                                       At  December  31,  2001
                               Average                         Weighted-
                               life       Carrying   Market    average
                               in years   value      value     yield
                              ---------  ------      -------    ------
                                        (Dollars in thousands)
<S>                           <C>        <C>         <C>      <C>
Investment securities:
  U.S. government and federal
    agency securities. . . . . 3.98       $  356      $  356   4.02%
Municipal securities . . . .  10.68        1,237       1,237   4.72%
Equity securities (1). . . .               2,415       2,415   5.70%
                              -           ------      ------
     Total. . . . . . . . . . . .         $4,008      $4,008
                                           =====       ======
</TABLE>


(1)     By  their  nature,  equity  securities  have  no  maturity  date.

DEPOSITS  AND  BORROWINGS

     GENERAL.  Deposits  have  traditionally  been  the  primary  source of Home
City's funds for use in lending and other investment activities.  In addition to
deposits,  Home  City  derives  funds  from FHLB advances, interest payments and
principal repayments on loans and mortgage-backed and related securities, income
on  earning  assets,  service  charges  and  gains  on  the sale of assets.  See
"MANAGEMENT'S  DISCUSSION AND ANALYSIS OR PLAN OF OPERATION."  Loan payments are
a  relatively  stable  source  of  funds,  while  deposit  inflows  and outflows
fluctuate  more  in  response  to  general  interest  rates  and  money  market
conditions.

     DEPOSITS.  Deposits  are  attracted  principally  from  within  Home City's
primary  market  area  through  the  offering  of  a  broad selection of deposit
instruments,  including  NOW  accounts, money market accounts, statement savings
accounts,  passbook  savings  accounts and term certificate accounts.  Home City
also  offers  individual  retirement  accounts  ("IRA"),  both  in  passbook and
certificate  form.  Interest  rates  paid,  maturity  terms,  service  fees  and
withdrawal  penalties  for  the  various  types  of  accounts  are  established
periodically  by  the  management  of  Home  City based on Home City's liquidity
requirements,  growth  goals  and  interest rates paid by competitors. Home City
utilizes  brokers  to  attract  deposits  on a limited basis.  Brokered deposits
approximated  $3.6  million  at  December  31,  2001.

     At  December  31,  2001,  Home City's certificates of deposit totaled $73.2
million,  or  75.89%  of  total  deposits.  Of  such amount, approximately $45.9
million  in  certificates  of  deposit  mature  within  one year.  Based on past
experience  and  Home  City's prevailing pricing strategies, management believes
that  a substantial percentage of such certificates will renew with Home City at
maturity.  If  there is a significant deviation from historical experience, Home
City  can  utilize borrowings from the FHLB and commercial banks as alternatives
to  this  source  of  funds.

<PAGE>

     The following table sets forth the dollar amount of deposits in the various
types  of  savings  programs  offered  by  Home  City  at  the  dates indicated:


<TABLE>
<CAPTION>


                                                        At  December  31,
                                             2001                        2000
                                            ------                       ----
                                                      Percent                Percent
                                                      of total               of total
                                          Amount      deposits      Amount   deposits
                                         -------      --------      -------  ---------
                                                      (Dollars in thousands)

<S>                                      <C>         <C>           <C>        <C>
Transaction accounts:
---------------------
Demand. . . . . . . . . . . . . . . . .   $ 3,230     3.35%         $ 2,102     2.80%
NOW accounts (1). . . . . . . . . . . .     2,704     2.81            1,660     2.21
Passbook/statement savings accounts (2)    17,304    17.95           12,192    16.24
                                         --------    ------         -------   -------

      Total transaction accounts. . .  .   23,238    24.11           15,954    21.25

Certificates of deposit:
-------------------------
          2.01 - 4.00%                      7,056      7.32               0        0
          4.01 - 6.00%                     35,683     37.01          13,828    18.42
          6.01 - 8.00%                     30,426     31.56          45,295    60.33
                                         ---------  -------         -------    ------

          Total certificates of deposit    73,165     75.89          59,123    78.75
                                           ------    ------         -------    -----

Total deposits (3). . . . . . . . . . .  $ 96,403    100.00%       $ 75,077   100.00%
                                         ========    ======         =======   ========
</TABLE>


(1)  Home  City's weighted-average interest rate paid on NOW accounts fluctuates
     with the general movement of interest rates. At December 31, 2001 and 2000,
     the  weighted-average  rates  on  NOW  accounts  were  1.99%  and  2.80%,
     respectively.
(2)  Home  City's  weighted-average  rate on passbook/statement savings accounts
     fluctuates  with  the  general  movement  of  interest  rates.  The
     weighted-average  interest  rate on passbook/statement savings accounts was
     3.22%  and  3.87%  at  December  31,  2001  and  2000,  respectively.
(3)  IRAs  are  included  in  the various certificates of deposit balances. IRAs
     totaled  $  7.8  million and $6.8 million as of December 31, 2001 and 2000,
     respectively.

     The  following  table  shows  rate and maturity information for Home City's
certificates  of  deposit  as  of  December  31,  2001:

<TABLE>
<CAPTION>


                                                     Amount  Due
                                              Over        Over
                                 Up to      1 year to   2 years to   Over
            Rate                 1 year     2 years     3 years      3 years    Total
            ----                 ------     -------     -------      -------    -----
                                         (Dollars in thousands)
<S>                             <C>        <C>         <C>       <C>          <C>
       2.01 - 4.00%              $ 5,697    $ 1,027     $  214    $  118       $ 7,056
       4.01 - 6.00% . . . . . . . 18,284     14,462      2,515       422        35,683
       6.01 - 8.00% . . . . . . . 21,909      7,586        681       250        30,426
                                 -------    -------     ------      ----       -------

Total certificates of deposit. . $45,890    $23,075     $3,410      $790       $73,165
                                 =======    =======     ======      ====       =======
</TABLE>

     The  following  table  presents  the  amount of Home City's certificates of
deposit  of $100,000 or more by the time remaining until maturity as of December
31,  2001.

<TABLE>
<CAPTION>


        Maturity                                Amount
        --------                                ------
                                         (Dollars in thousands)

<S>                                            <C>
Three months or less. . . .                     $ 3,587
Over 3 months to 6 months .                       4,493
Over 6 months to 12 months.                       5,240
Over 12 months. . . . . . .                       5,485
                                                 ------

Total . . . . . . . . . . .                     $18,805
                                                =======
</TABLE>

     The following table sets forth Home City's deposit account
balance activity for  the  years  indicated:

<TABLE>
<CAPTION>


                                    Year  ended  December  31,
                                    --------------------------
                                        2001         2000
                                       -----        -----
                                     (Dollars  in  thousands)

<S>                                     <C>       <C>

Beginning balance. . . . . . . . . . .   $75,077   $69,671

New deposits received less withdrawals    17,051     1,395

Interest credited. . . . . . . . . . .     4,275     4,011
                                          -------  --------

Ending balance . . . . . . . . . . . .   $96,403   $75,077
                                        ========   =======

    Net increase . . . . . . . . . .. .  $21,326   $ 5,406

    Percentage increase. . . . . . . . . . 28.41%     7.76%
</TABLE>

     BORROWINGS.  The  FHLB System functions as a central reserve bank providing
credit  for  its  member  institutions and certain other financial institutions.
See "REGULATION - Federal Home Loan Banks."  As a member in good standing of the
FHLB  of Cincinnati, Home City is authorized to apply for advances from the FHLB
of  Cincinnati,  provided  certain standards of credit worthiness have been met.
Under current regulations, an association must meet certain qualifications to be
eligible  for FHLB advances.  The extent to which an association is eligible for
such advances will depend on whether it meets one of the Qualified Thrift Lender
Tests (the "QTL Tests").  See "REGULATION - Qualified Thrift Lender Test." If an
association  meets  one  of  the  QTL Tests, it will be eligible for 100% of the
advances  permitted.  If  an  association does not meet one of the QTL Tests, it
will  be  eligible  for  such advances only to the extent it holds specified QTL
Test  assets. At December 31, 2001, Home City met at least one of the QTL Tests.


<PAGE>

     Home  City  obtained  advances from the FHLB of Cincinnati, as set forth in
the  following  table:

<TABLE>
<CAPTION>


                                           Year  ended  December  31,
                                            -------------------------
                                                2001        2000
                                               -----        ----
                                             (Dollars  in  thousands)

<S>                                             <C>       <C>
Average balance outstanding. . . . . . . . . .   $36,403   $29,681

Maximum amount outstanding at any month end
    during the year. . . . . . . . . . . . . . . $37,566   $34,951

Balance outstanding at end of year . . . . . .   $35,315   $34,951

Weighted-average interest rate during the year      5.81%     6.05%

Weighted-average interest rate at end of year.      5.64%     6.28%
</TABLE>

     Based  upon  Home  City's  eligible mortgage collateral, total FHLB
advances are limited  to  approximately  $44.5  million.

SUBSIDIARIES

     Home  City  owns all of the outstanding shares of Homciti Service Corp., an
Ohio  corporation  ("Homciti").  Homciti  owns  common  stock  in  Intrieve,
Incorporated  ("Intrieve"),  a data processing company which services Home City,
and  a  0.875%  ownership interest in a joint venture which owns the Springfield
Inn,  a  local hotel.  At December 31, 2001, the aggregate value of the Intrieve
stock  and  the  joint  venture  investment  equaled  approximately  $28,000.

COMPETITION

     Home City competes for deposits with other savings associations, commercial
banks  and  credit  unions  and  with  the issuers of commercial paper and other
securities,  such as shares in money market mutual funds. The primary factors in
competing  for  deposits  are interest rates and convenience of office location.
In  making loans, Home City competes with other savings associations, commercial
banks,  consumer  finance  companies, credit unions, leasing companies, mortgage
companies and other lenders.  Home City competes for loan originations primarily
through  the interest rates and loan fees offered and through the efficiency and
quality  of  services provided.  Competition is affected by, among other things,
the  general  availability  of  lendable  funds,  general  and  local  economic
conditions, current interest rate levels and other factors which are not readily
predictable.  Four  savings associations, six banks and seven credit unions have
offices in Clark County.  At June 30, 2001, Home City had approximately 6.11% of
all  financial  institution  deposits  in  Clark  County.

     The  size  of  financial institutions competing with Home City is likely to
increase  as a result of changes in statutes and regulations eliminating various
restrictions  on interstate and inter-industry branching and acquisitions.  Such
increased  competition  may  have  an  adverse  effect  upon  Home  City.

PERSONNEL

     As  of December 31, 2001, Home City had thirty-nine full-time employees and
three  part-time  employees and HCIA had eight full -time employees.  Management
believes  that  relations  with  its employees are good.  HCFC offers health and
life  insurance  benefits  to all eligible employees of both Home City and HCIA.
None  of  the  employees  of  Home  City and HCIA is represented by a collective
bargaining  unit.

REGULATION

     GENERAL.  As  a  savings association organized under the laws of the United
States,  Home City is subject to regulatory oversight by the OTS.  The OTS is an
office  in  the Department of the Treasury and is responsible for the regulation
and supervision of all savings associations the deposits of which are insured by
the  FDIC  in the SAIF and all federally-chartered institutions.  The OTS issues
regulations  governing  the operation of savings associations regularly examines
such institutions and imposes assessments on savings associations based on their
asset  size  to  cover  the  costs of this supervision and examination.  It also
promulgates  regulations  that  prescribe  the  permissible  investments  and
activities  of  federally-chartered  savings associations, including the type of
lending that such associations may engage in and the investments in real estate,
subsidiaries  and  securities  they  may  make.  The  OTS  also  may  initiate
enforcement  actions against savings associations and certain persons affiliated
with  them  for  violations  of laws or regulations or for engaging in unsafe or
unsound  practices.  If the grounds provided by law exist, the OTS may appoint a
conservator  or  receiver  for  a  savings  association.

     Because  Home City's deposits are insured by the FDIC, Home City is also
Subject to examination and regulation by the FDIC.  Home City must file
periodic reports with  the  OTS  concerning its activities and financial
condition. examinations are  conducted  periodically  by  the  OTS  to deter-
mine whether Home City is in compliance  with  various regulatory requirements
and is operating in a safe and sound  manner.  Home  City  is  a  member  of the
FHLB of Cincinnati.

     HCFC is also subject to regulation, examination and oversight by the OTS as
the  holding  company of Home City and is required to submit periodic reports to
the  OTS.

     REGULATORY  CAPITAL  REQUIREMENTS.  Home  City  is  required  by  OTS
regulations  to  meet  certain minimum capital requirements.  These requirements
call  for tangible capital of 1.5% of adjusted total assets, core capital (which
for  Home  City  is  equal  to tangible capital) of 4% of adjusted total assets,
except  for  associations  with  the  highest  examination rating and acceptable
levels  of  risk,  and  risk-based capital (which for Home City consists of core
capital  and  general valuation allowances) equal to 8% of risk-weighted assets.
Assets  and  certain  off-balance-sheet  items are weighted at percentage levels
ranging  from  0%  to  100%  depending  on  their  relative  risk.

     Home  City's  core  capital  ratio  at  December 31, 2001, was 7.68%.   For
information  concerning  Home  City's  capital, see "MANAGEMENT'S DISCUSSION AND
ANALYSIS  OR  PLAN  OF  OPERATION  -  Liquidity  and  Capital  Resources."

     The  OTS  has  adopted  regulations  governing  prompt corrective action to
resolve  the  problems  of  capital  deficient  and  otherwise  troubled savings
associations.  At  each  successively  lower capital category, an institution is
subject  to  more restrictive and numerous mandatory or discretionary regulatory
actions  or  limits,  and  the  OTS  has  less flexibility in determining how to
resolve  the problems of the institution.  In addition, the OTS can downgrade an
association's  designation notwithstanding its capital level, based on less than
satisfactory  examination  ratings  in areas other than capital or, after notice
and  an opportunity for hearing, if the institution is deemed to be in an unsafe
or  unsound  condition or to be engaging in an unsafe or unsound practice.  Each
undercapitalized  association  must submit a capital restoration plan to the OTS
within  45  days  after  it  becomes undercapitalized.  Such institution will be
subject  to  increased  monitoring  and  asset  growth  restrictions and will be
required  to  obtain  prior approval for acquisitions, branching and engaging in
new lines of business.  A critically undercapitalized institution must be placed
in  conservatorship  or  receivership  within  90  days  after  reaching  such
capitalization  level,  except under limited circumstances.  Home City's capital
at  December  31,  2001,  met  the  standards  for  the  highest  level, a "well
capitalized  association".

     LIMITATIONS  ON  CAPITAL  DISTRIBUTIONS.   The  OTS  imposes  various
restrictions  or  requirements  on  the  ability of associations to make capital
distributions.  Capital distributions, for purposes of such regulation, include,
without  limitation,  payments  of cash dividends, repurchases and certain other
acquisitions  by  an  association  of its shares and payments to stockholders of
another  association  in  an  acquisition  of  such  other  association.

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

     QUALIFIED  THRIFT LENDER TESTS.  Savings associations must meet one of two
Tests in  order  to  be  a qualified thrift lender ("QTL").  The first test
requires a savings  association to maintain a specified level of investments in
assets that are  designated  as qualifying thrift investments ("QTIs").
Generally, QTIs are assets  related  to  domestic  residential real estate and
manufactured housing, although  they  also  include  credit card, student and
small business loans and stock  issued by any FHLB, the FHLMC or the FNMA.
Under the QTL Test, 65% of an institution's  "portfolio  assets"  (total
assets less goodwill  and  other intangibles,  property  used  to conduct
business and 20% of liquid assets) must consist  of  QTI on a monthly average
basis in nine out of every 12 months.  The second  test  permits  a  savings
association to qualify as a QTL by meeting the definition  of  "domestic
building  and  loan  association" under the Internal Revenue  Code  of  1986,
as amended (the "Code"). In order for an institution to meet  the  definition
of  a  "domestic building  and loan association" under the Code,  at  least
60% of its assets must consist of specified types of property, including cash
loans secured by residential real estate or deposits, educational loans and
certain governmental obligations.  The OTS may grant exceptions to the QTL
Tests  under certain circumstances.  If a savings association fails to meet
either  one  of  the  QTL  Tests, the association and its holding company become
subject  to  certain  operating  and regulatory  restrictions  and  the savings
association  will  not be eligible for new FHLB advances.  At December 31,
2001, Home  City  had QTIs equal to approximately 69.7% of its total portfolio
assets.

     TRANSACTIONS  WITH  INSIDERS  AND AFFILIATES.  Loans to executive officers,
directors and principal shareholders and their related interests must conform to
the  lending  limits on loans to one borrower and the total of such loans cannot
exceed  an  association's total regulatory capital plus additional loan reserves
(or  200% of such capital amount for qualifying institutions with less than $100
million in deposits).  Most loans to directors, executive officers and principal
shareholders  must  be  approved in advance by a majority of the "disinterested"
members  of  the  board  of  directors  of the association with any "interested"
director  not  participating.  All  loans  to  directors, executive officers and
principal  shareholders  must be made on terms substantially the same as offered
in  comparable transactions to the general public or as offered to all employees
in  a  company-wide benefit program, and loans to executive officers are subject
to  additional  limitations.  Home City was in compliance with such restrictions
at  December  31,  2001.

     Savings  associations  must  also  comply  with Sections 23A and 23B of the
Federal  Reserve Act (the "FRA") pertaining to transactions with affiliates.  An
affiliate  of  a  savings association is any company or entity that controls, is
controlled  by or is under common control with the savings association.  HCFC is
an affiliate of Home City.  Generally, Sections 23A and 23B of the FRA limit the
extent  to  which  the  savings  institution  or  its subsidiaries may engage in
specified transactions with affiliates and require that all such transactions be
on terms substantially the same, or at least as favorable to the institution, as
those  provided  in  transactions  with  a  non-affiliate.  Home  City  was  in
compliance  with  these  requirements  and  restrictions  at  December 31, 2001.

     HOLDING  COMPANY  REGULATION.  HCFC  is  a savings and loan holding company
within the meaning of the Home Owners' Loan Act (the "HOLA").  As such, HCFC has
registered  with  the  OTS  and  is  subject  to  OTS  regulations, examination,
supervision  and  reporting  requirements,  in  addition  to  the  reporting
requirements  of  the  Securities  and  Exchange  Commission  (the  "SEC").

     HCFC is a unitary savings and loan holding company, (i.e., it owns only one
savings  association).  There are generally no restrictions on the activities of
a  unitary  savings  and  loan  holding company, and such companies are the only
financial  institution  holding  companies  that  may  engage  in  commercial,
securities  and  insurance  activities without limitation. The broad latitude to
engage  in  activities  under current law can be restricted, however, if the OTS
determines  that there is reasonable cause to believe that the continuation by a
savings  and  loan  holding company of an activity constitutes a serious risk to
the  financial  safety,  soundness  or  stability  of  its  subsidiary  savings
association.  Notwithstanding  the  foregoing  rules  as to permissible business
activities  of  a  unitary  savings  and  loan  holding  company, if the savings
association  subsidiary of a holding company fails to meet one of the QTL Tests,
then  such  unitary  holding  company  would  become  subject  to the activities
restrictions  applicable  to  multiple holding companies.  At December 31, 2001,
Home  City  met  at  least  one  of the QTL Tests.  See "Qualified Thrift Lender
Tests."

     DEPOSIT  INSURANCE.  The FDIC is an independent federal agency that insures
the  deposits, up to prescribed statutory limits, of federally insured banks and
thrifts  and  safeguards  the  safety  and  soundness  of  the  bank  and thrift
industries.  The  FDIC  administers  two  separate  insurance funds, the BIF for
commercial  banks  and state savings banks and the SAIF for savings associations
and  banks  that  have acquired deposits from savings associations.  The FDIC is
required  to  maintain  designated  levels  of  reserves  in  each  fund.

     Home  City  is a member of the SAIF and its deposit accounts are insured by
the  FDIC  up to the prescribed limits.  The FDIC has examination authority over
all  insured  depository institutions, including Home City, and has authority to
initiate  enforcement  actions against federally-insured savings associations if
the  FDIC  does  not  believe  the OTS has taken appropriate action to safeguard
safety  and  soundness  and  the  deposit  insurance  fund.

     The  FDIC  is  authorized to establish separate annual assessment rates for
deposit  insurance for members of the BIF and members of the SAIF.  The FDIC may
increase  assessment  rates  for  either fund if necessary to restore the fund's
ratio  of  reserves  to insured deposits to the target level within a reasonable
time  and  may  decrease  such  rates  if  such  target  level  has  been  met.

     RESERVE  REQUIREMENTS.  Federal  Reserve  Bank  ("FRB") regulations require
savings  associations  to  maintain  reserves against their transaction accounts
(primarily  NOW accounts) of 3% of deposits in net transaction accounts for that
portion  of  accounts up to $41.3 million (subject to an exemption of up to $5.7
million),  and  to  maintain  reserves  of  10%  of  deposits in net transaction
accounts  against  that portion of total transaction accounts in excess of $41.3
million.  These  percentages  are subject to adjustment by the FRB.  At December
31,  2001,  Home  City  was  in  compliance  with  its  reserve  requirements.

     FEDERAL  HOME LOAN BANKS.  The FHLBs, under the regulatory oversight of the
Federal  Housing Financing Board, provide credit to their members in the form of
advances.  Home  City is a member of the FHLB of Cincinnati and must maintain an
investment  in the capital stock of the FHLB of Cincinnati in an amount equal to
the greater of 1.0% of the aggregate outstanding principal amount of Home City's
residential  mortgage  loans, home purchase contracts and similar obligations at
the  beginning  of each year, or 5% of its advances from the FHLB.  Home City is
in  compliance  with  this  requirement with an investment in FHLB of Cincinnati
stock  of  $2,079,000  at  December  31,  2001.

     FHLB  advances  to  members such as Home City who meet one of the QTL Tests
are  generally limited to the lower of (i) 50% of the member's assets or (ii) 20
times  the member's investment in FHLB stock.  At December 31, 2001, Home City's
maximum  limit  on  advances  was  approximately  $44.5  million and Home City's
advances totaled $35.3 million.  The granting of advances is subject also to the
FHLB's  collateral  and  credit  underwriting  guidelines.

     Upon  the  origination  or  renewal  of  a  loan  or  advance,  the FHLB of
Cincinnati  is  required  by  law  to obtain and maintain a security interest in
collateral  in  one  or more of the following categories: fully disbursed, whole
first mortgage loans on improved residential property or securities representing
a  whole interest in such loans; securities issued, insured or guaranteed by the
United  States  government  or an agency thereof; deposits in any FHLB; or other
real  estate  related collateral (up to 30% of the member association's capital)
acceptable  to  the  applicable  FHLB,  if  such  collateral  has  a  readily
ascertainable  value  and  the  FHLB  can  perfect  its security interest in the
collateral.

     Each  FHLB  is  required  to establish standards of community investment or
service  that  its  members  must  maintain  for  continued  access to long-term
advances from the FHLBs.  The standards take into account a member's performance
under  the  Community  Reinvestment  Act and its record of lending to first-time
home  buyers.  All  long-term advances by each FHLB must be made only to provide
funds  for  residential  housing  finance.

     OHIO  DEPARTMENT  OF INSURANCE.  The Agency is subject to the insurance
Laws And regulations  of  the  State  of  Ohio and the Ohio Department of
Insurance.  The insurance  laws  and regulations require education and licensing
of agencies And individual  agents,  require  reports  and  impose  business
conduct  rules.

TAXATION

     FEDERAL  TAXATION.  HCFC  and  each  of  its  consolidated subsidiaries are
subject  to  the  federal  tax  laws and regulations which apply to corporations
generally.  In addition to the regular income tax, HCFC and its subsidiaries may
be subject to alternative minimum tax.  An alternative minimum tax is imposed at
a  minimum tax rate of 20% on "alternative minimum taxable income" (which is the
sum of a corporation's regular taxable income, with certain adjustments, and tax
preference  items),  less  any  available  exemption.  Such tax preference items
include  interest  on  certain tax-exempt bonds issued after August 7, 1986.  In
addition, 75% of the amount by which a corporation's "adjusted current earnings"
exceeds  its  alternative minimum taxable income computed without regard to this
preference  item  and prior to reduction by net operating losses, is included in
alternative minimum taxable income. Net operating losses can offset no more than
90%  of  alternative  minimum  taxable  income.  The  alternative minimum tax is
imposed to the extent it exceeds the corporation's regular income tax.  Payments
of  alternative  minimum  tax  may  be  used  as  credits  against  regular  tax
liabilities  in  future  years.  The  Taxpayer  Relief  Act of 1997 repealed the
alternative minimum tax for certain "small corporations" for tax years beginning
after  December  31,  1997.  A  corporation  initially  qualifies  as  a  small
corporation if it had average gross receipts of $5 million or less for the three
tax  years  ending  with  its  first tax year beginning after December 31, 1997.
Once  a corporation is recognized as a small corporation, it will continue to be
exempt  from  the  alternative  minimum  tax  for  as  long as its average gross
receipts  for  the  prior  three-year  period  does not exceed $7.5 million.  In
determining  if  a  corporation  meets  this requirement, the first year that it
achieved small corporation status is not taken into consideration.  HCFC and its
subsidiaries  are qualified as small corporations, although, for the year ending
December  31,  2001, the gross receipts for the consolidated entity exceeded the
$7.5  million  threshold.  Although  not  subject to the alternative minimum tax
currently, it is possible that in future years the consolidated entity would not
be  eligible  to  be  exempt under the Taxpayer Relief Act of 1997.  Losing this
exemption would not materially affect the consolidated tax liability of HCFC and
its  subsidiaries.

     Certain  thrift  institutions  such as Home City are allowed deductions for
bad  debts  under  methods  more  favorable to those granted to other taxpayers.
Qualified  thrift institutions may compute deductions for bad debts using either
the  specific  charge-off  method  of  Section 166 of the Code or the experience
method  of  Section  593  of  the  Code.  Under  the experience method, a thrift
institution  was  generally  allowed a deduction for an addition to its bad debt
reserve  equal  to  the  greater  of  (i)  an amount based on its actual average
experience  for  losses in the current and five preceding taxable years, or (ii)
an amount necessary to restore the reserve to its balance as of the close of the
base  year.

     Thrift  institutions that are treated as small banks are allowed to utilize
the experience method applicable to such institutions, while thrift institutions
that are treated as large banks are required to use only the specific charge-off
method.

     A thrift institution required to change its method of computing reserves
for Bad debt  will  treat such change as a change in the method of accounting,
Initiated by  the  taxpayer, and having been made with the consent of the
Secretary of the Treasury.   Section 481(a) of the Code requires certain
amounts to be recaptured with  respect  to  such change.  Generally, the
amounts to be recaptured will be determined  solely  with  respect  to  the
"applicable excess reserves" of the taxpayer.  The  amount  of  the  applicable
excess reserves will be taken into account ratably over a six-taxable-year
period, beginning with the first taxable year beginning after 1995, subject to
the residential loan requirement described below.  In  the case of a thrift
institution that becomes a large bank, the amount  of  the institution's appli-
cable excess reserves generally is the excess of  (i) the balances of its
reserve for losses on qualifying real property loans (generally  loans secured
by improved real estate) and its reserve for losses on nonqualifying  loans
(all other  types  of  loans) as of the close of its last taxable  year
beginning before January 1, 1996, over (ii) the balances of such reserves
as  of  the close of its last taxable year beginning before January 1, 1988
(i.e., the "pre-1988 reserves").  In the case of a thrift institution that
becomes a small bank, like Home City, the amount of the institution's
applicable excess  reserves  generally is the excess of (i) the balances of
its reserve for losses  on  qualifying  real  property  loans  and  its
reserve  for  losses on nonqualifying  loans  as  of the close of its last
taxable year beginning before January  1,  1996,  over  (ii)  the  greater
of the balance of (a) its pre-1988 reserves  or  (b) what the thrift's
reserves would have been at the close of its last  year  beginning  before
January  1,  1996, had the thrift always used the experience  method.

     For taxable years that begin after December 31, 1995, and before January 1,
1998,  if  a  thrift  meets the residential loan requirement for a tax year, the
recapture  of the applicable excess reserves otherwise required to be taken into
account  as  a Code Section 481(a) adjustment for the year will be suspended.  A
thrift  meets  the  residential  loan  requirement  if,  for  the  tax year, the
principal  amount of residential loans made by the thrift during the year is not
less  then  its  base amount.  The "base amount" generally is the average of the
principal  amounts  of  the  residential loans made by the thrift during the six
most  recent tax years beginning before January 1, 1996. A residential loan is a
loan  as  described  in  Section  7701(a)(19)(C)(v) (generally a loan secured by
residential  real and church property and certain mobile homes), but only to the
extent  that the loan is made to the owner of the property to acquire, construct
or  improve  the  property.

     The  balance  of  the  pre-1988  reserves  is  subject to the provisions of
Section  593(e)  as  modified  by  the Small Business Jobs Protection Act, which
require  recapture  in  the  case  of  certain  excessive  distributions  to
shareholders.  The  pre-1988  reserves  may  not be utilized for payment of cash
dividends  or  other  distributions to a shareholder (including distributions in
dissolution  or liquidation) or for any other purpose (except to absorb bad debt
losses).  Distribution  of  a  cash  dividend  by  a  thrift  institution  to  a
shareholder  is  treated  as  made:  first,  out  of the institution's post-1951
accumulated  earnings  and  profits;  second,  out of the pre-1988 reserves; and
third,  out  of  such  other  accounts  as  may  be  proper.  To  the  extent  a
distribution  by  Home  City to HCFC is deemed paid out of its pre-1988 reserves
under  these rules, the pre-1998 reserves would be reduced and Home City's gross
income  for tax purposes would be increased by the amount which, when reduced by
the  income  tax,  if  any,  attributable to the inclusion of such amount in its
gross income, equals the amount deemed paid out of the pre-1988 reserves.  As of
December  31,  2001,  Home  City's  pre-1988  reserves  for tax purposes totaled
approximately  $1.1  million.  Home  City  believes  it  had  approximately $5.8
million  of accumulated earnings and profits for tax purposes as of December 31,
2001,  which  would be available for dividend distributions, provided regulatory
restrictions  applicable to the payment of dividends are met.  No representation
can  be  made  as to whether Home City will have current or accumulated earnings
and  profits  in  subsequent  years.

     The tax returns of HCFC and its consolidated subsidiaries have been audited
or closed without audit through fiscal year 1997.  In the opinion of management,
any  examination  of  open  returns would not result in a deficiency which could
have  a material adverse effect on the consolidated financial condition of HCFC.

     OHIO  TAXATION.  HCFC  is  subject  to  the Ohio corporation franchise tax,
which,  as  applied  to  HCFC,  is  a tax measured on either net earnings or net
worth.  The  rate  of  tax  is  the  greater of (i) 5.1% on the first $50,000 of
computed  Ohio  taxable  income and 8.5% of computed taxable income in excess of
$50,000  or  (ii)  0.04%  times  taxable  net  worth.

     A  special  litter  tax  is  also applicable to all corporations, including
HCFC,  subject  to  the  Ohio  corporation  franchise  tax other than "financial
institutions."  If the franchise tax is paid on the net income basis, the litter
tax  is  equal to 0.11% of the first $50,000 of computed Ohio taxable income and
0.22% of computed Ohio taxable income in excess of $50,000. If the franchise tax
is  paid on the net worth basis, the litter tax is equal to 0.014% times taxable
net  worth.

     HCFC  may  elect to be a "qualifying holding company" and as such be exempt
from  the  net  worth  tax.  A  corporation  franchise  tax  based solely on net
earnings would still apply.  To be exempt HCFC must satisfy all the requirements
of  the  applicable  statutes including making adjustments that could affect the
taxable  net  worth  of  HCFC's  subsidiary,  Home  City.

     Home  City  is a "financial institution" for State of Ohio tax purposes. As
such,  it  is  subject  to  the  Ohio  corporate  franchise  tax  on  "financial
institutions,"  imposed annually at a rate of 1.3% of Home City's book net worth
determined  in accordance with GAAP, less statutory deductions.  As a "financial
institution"  Home  City  is not subject to any tax based upon net income or net
profits  imposed  by  the  State  of  Ohio.

RECENTLY  ISSUED  ACCOUNTING  PRONOUNCEMENTS.

     In  June  1998,  Statement  of  Financial  Accounting  Standards  No.  133,
Accounting  for  Derivative  Instruments and Hedging Activities (SFAS 133) , was
issued.  SFAS  133 establishes accounting and reporting standards for derivative
instruments,  including  certain  derivative  instruments  embedded  in  other
contracts (collectively referred to as derivatives), and for hedging activities.
The  effective  date of this Statement was deferred by the issuance of Statement
of Financial Accounting Standards 137, Accounting for Derivative Instruments and
Hedging  Activities  -  Deferral of the Effective Date of FASB Statement No. 133
(SFAS  137).  SFAS  133  was  also  amended by Statement of Financial Accounting
Standards 138, Accounting for Certain Derivative Instruments and Certain Hedging
Activities  (SFAS  138).  The  adoption  of this Statement in is not expected to
have  a  material  impact  on  the  financial  statements  of  HCFC.

     In  July 2001, the Financial Accounting Standards Board issued Statement of
Financial  Accounting  Standards  No. 141, Business Combinations (SFAS 141), and
Statement  of  Financial  Accounting  Standards  No.  142,  Goodwill  and  Other
Intangible Assets (SFAS 142). They also issued Statement of Financial Accounting
Standards  No. 143, Accounting for Obligations Associated with the Retirement of
Long-Lived  Assets (SFAS 143), and Statement Financial Accounting Standards 144,
Accounting  for  the Impairment or Disposal of Long-Lived Assets (SFAS No. 144),
in  August  and  October  2001,  respectively.

     SFAS  141  requires all business combinations initiated after June 30, 2001
be  accounted for under the purchase method. SFAS 141 supersedes APB Opinion No.
16,  Business  Combinations,  and Statement of Financial Accounting Standards No
38, Accounting for Preacquisition Contingencies of Purchased Enterprises, and is
effective  for  all  business  combinations  initiated  after  June  30,  2001.

     SFAS  142  addresses  the  financial  accounting and reporting for acquired
goodwill  and  other  intangible  assets. Under the new rules, the company is no
longer required to amortize goodwill and other intangible assets with indefinite
lives,  but  will  be  subject  to  periodic  testing  for  impairment. SFAS 142
supersedes APB Opinion No. 17, Intangible Assets. Effective January 1, 2002, the
company  will adopt SFAS 142 and is evaluating the effect that such adoption may
have  on its consolidated results of operations and financial position. However,
the  company  expects  that  a  minimial amount of its intangible assets will no
longer  be  amortized.

     SFAS  143  establishes  accounting  standards  for  the  recognition  and
measurement  of  an  asset  retirement  obligation  and  its  associated  asset
retirement  cost.  It  also  provides  accounting guidance for legal obligations
associated  with  early  retirement  of  tangible  long-lived  assets.  SFAS  is
effective  in  fiscal  years  beginning after June 15, 2002, with early adoption
permitted.  The  company expects that the provisions of SFAS 143 will not have a
material impact on its consolidated results of operations and financial position
upon  adoption.  The  company plans to adopt SFAS 143 effective January 1, 2002.

     SFAS  144  establishes  a  single  accounting  model  for the impairment or
disposal  of  long-lived  assets,  including  discontinued  operations. SFAS 144
supersedes  Statement  of Financial Accounting Standards No. 121, Accounting for
the  Impairment of Long-Lives Assets and for Long-Lived Assets Disposed Of (SFAS
121),  and  APB  Opinion No. 30, Reporting the Results of Operations - Reporting
the  Effects  of  Disposal of a Segement of Business, and Extraordinary, Unusual
and  Infrequently  Occuring  Events and Transactions. The provisions of SFAS 144
are  effective  in  fiscal  years  beginning after December 15, 2001, with early
adoption  permitted, and in general are to be applied prospectively. The company
plans  to  adopt SFAS 144 effective January 1, 2002 and does not expect that the
adoption  will  have a material impact on its consolidated results of operations
and  financial  position.

IMPACT  OF  INFLATION  AND  CHANGING  PRICES

     The  financial  statements  and  related  data  presented  herein have been
prepared  in  accordance  with  GAAP, which require the measurement of financial
position  and  results  of  operations  primarily in terms of historical dollars
without  considering changes in the relative purchasing power of money over time
because  of  inflation.

     Virtually  all  assets  and  liabilities  of  HCFC are monetary in nature.
As a result,  interest  rates  have a more significant impact on performance
than the effects  of  general  levels  of  inflation.

ITEM  2.  DESCRIPTION  OF  PROPERTY

     Home  City's  main  office  is  located  at  2454  North  Limestone Street,
Springfield, Ohio 45503, which property is owned by Home City. HCFC operates out
of Home City's main office.  HCFC reimburses Home City for the fair value of the
space  occupied.  Home City also has a branch office facility located at 63 West
Main  Street,  Springfield,  Ohio  45502,  its  former  main  office  location.

     The  following  table  sets forth certain information at December 31, 2001,
regarding  the  ownership  by Home City of the land, building, and improvements:

<TABLE>
<CAPTION>


                                                Year           Square     Net
               Location                         acquired       footage    book value(1)
               --------                         --------    -------    -------------
<S>                                                   <C>     <C>        <C>
63 West Main Street, Springfield, Ohio  45502. . . .   1975    5,839      $   329,000

2454 North Limestone Street, Springfield, Ohio 45503   1999   13,000      $ 2,655,000
</TABLE>


(1)     At  December  31, 2001, Home City's properties and equipment had a total
        net  book  value  of  $4,300,000.
(2)     For  additional  information  regarding  Home  City's  properties  and
        equipment,  see  Notes  A  and  E of Notes to Consolidated Financial
        Statements.


ITEM  3.  LEGAL  PROCEEDINGS

     None  of  Home  City,  HCIA  or  HCFC  is  presently  involved in any legal
proceedings of a material nature. From time to time, Home City is party to legal
proceedings  incidental  to  its  business  to  enforce its security interest in
collateral  pledged  to  secure  loans  made  by  Home  City.


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

     Not  Applicable.

ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

     There  were 784,400 common shares of HCFC outstanding on December 31, 2001,
held  of  record  by  approximately  333  shareholders.  Price  information with
respect  to  HCFC's  common  shares  is  quoted  on  The  Nasdaq SmallCap Market
("Nasdaq")  under  the  symbol  "HCFC."  The high and low trading prices for the
common  shares  of HCFC, as quoted by Nasdaq, by quarter are shown below as well
as  the  dividends  declared.

<TABLE>
<CAPTION>




<S>               <C>              <C>                  <C>                  <C>

                  March 31, 2001   June 30, 2001        September 30, 2001   December 31, 2001
                  ---------------  -------------------  -------------------  ------------------
High . . . . . .  $ 11.000         $ 13.760             $ 13.600             $ 13.000
Low. . . . . . .  $  9.375         $ 10.760             $ 12.640             $ 11.740
Dividend
  declared . . .  $  0.110         $  0.110             $  0.110             $  0.110

                  March 31, 2000   June 30, 2000        September 30, 2000   December 31, 2000
                 ----------------  ---------------      -------------------  -------------------
High . . . . . .  $ 13.250         $ 10.000             $ 10.375             $  9.875
Low. . . . . . .  $  9.250         $  9.250             $  9.250             $  9.125
Dividend
declared . . . .  $  0.105         $  0.105             $  0.105             $  0.110
</TABLE>


     The  income of HCFC consists of dividends that may periodically be declared
and  paid  by  the  Board of Directors of Home City on the common shares of Home
City  held  by  HCFC  and earnings on the net proceeds retained by HCFC from the
sale  of HCFC's common shares in connection with the Conversion.  In addition to
certain federal income tax considerations, OTS regulations impose limitations on
the  payment  of  dividends  and  other  capital  distributions  by  savings
associations.

     Under  OTS  regulations  applicable to converted savings associations, Home
City  is  not  permitted  to  pay  a  cash  dividend on its common shares if the
regulatory  capital  of  Home  City  would,  as  a result of the payment of such
dividend,  be  reduced  below  the  amount  required for the liquidation account
(which  was  established for the purpose of granting a limited priority claim on
the  assets  of  Home  City,  in  the  event of a complete liquidation, to those
members  of  Home  City  before the Conversion who maintain a savings account at
Home  City  after  the Conversion) or applicable regulatory capital requirements
prescribed  by  the  OTS.

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

     ITEM  6.  Management's  Discussion  and  Analysis  or  Plan  of  Operation
     --------------------------------------------------------------------------

GENERAL

     Home  City  Federal  Savings  Bank  of  Springfield converted from a mutual
federal  savings  association to a stock federal savings association on December
30, 1996.  In connection with the Conversion, 952,200 common shares of Home City
Financial  Corporation  were sold, generating net proceeds of $8.3 million after
Conversion  expenses. Of this amount, $4.6 million was utilized to purchase 100%
of  the  common  stock  of  Home  City, and the balance was utilized to purchase
investments,  loan  funds  to the Home City Financial Corporation Employee Stock
Ownership  Plan  (the  "ESOP")  and  for  other  purposes.

     At  the  time  of the Conversion the fiscal year end for both HCFC and Home
City  was  June  30.  In December 1997, the Board of Directors resolved that the
fiscal  year  end  of  both corporations be changed to December 31 from June 30.
The  following discussion and analysis of the financial condition and results of
operations  of  HCFC  and  Home City should be read in conjunction with and with
reference  to  the  consolidated  financial  statements,  and the notes thereto,
presented  in  the  Annual  Report.

     During  2001,  HCFC, pursuant to regulatory approval to repurchase up to 5%
of  its outstanding shares, repurchased 29,600 common shares at an average price
of  $12.82  per  share. During 2000, HCFC repurchased 29,390 common shares at an
average  price  of  $12.60  per  share.

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

     Without  limiting  the  generality of the foregoing, some of the forward-
Looking statements  included  herein are the statements under the following
headings and regarding  the  following  matters:

1.     Financial  Condition.  Management's  statements  regarding the amount and
adequacy  of  the  allowance  for  loan  losses  at  December  31,  2001.

2.     Comparison  of  Results of Operations for the Fiscal Years Ended December
31,  2001  and  2000-  "Provision  for  Loan  Losses".  Management's  statements
regarding  the  adequacy  of the allowance for loan losses at December 31, 2001.

3.     Liquidity  and Capital Resources.  Management's belief that liquidity and
capital  reserves  are  sufficient  to meet its outstanding short- and long-term
needs.

FINANCIAL  CONDITION

     HCFC's consolidated total assets amounted to $144.6 million at December 31,
2001,  an increase of $21.2 million, or 17.16%, over the $123.4 million in total
assets  at  December  31, 2000.  Such increase in assets was funded primarily by
the  $21.3  million  net increase in deposits, $364,000 net increase in advances
from  the Federal Home Loan Bank (the "FHLB"), and undistributed net earnings of
$483,000.

     Cash  and cash equivalents, time deposits and investment securities totaled
$18.6  million  at  December 31, 2001, an increase of $12.9 million, or 227.33%,
from  December  31,  2000.  During the year ended December 31, 2001, $147,000 of
investment  securities  matured. Such securities consisted primarily of tax-free
securities.  Those  proceeds,  together with $5.3 million received from the sale
of  securities,  were used to purchase higher yielding securities while managing
the  interest  rate  risk  position  of  the  investment  portfolio.

     Mortgage-backed  securities  totaled  $9.6  million  at  December 31, 2001,
An increase  of  $9.1  million from December 31, 2000.  The purchase of FNMA,
FHLMC and  GNMA  certificates  also  improved  portfolio  yield.

     Net  loans  receivable  totaled  $115.4  million  at  December 31, 2001, an
increase  of  $4.4  million, or 3.99%, from the $110.9 million total at December
31,  2000.  During  the year ended December 31, 2001, loan originations amounted
to  $57.5  million, with commercial lending comprising $19.9 million and one- to
four-family  mortgage  loans  comprising  $23.5 million.  Such originations were
partially  offset  by  principal  repayments  of  $53.0  million.

     Home  City's  allowance  for  loan  losses totaled $517,000 at December 31,
2001, which represented 0.45% of total loans and 34.77% of non-performing loans.
At  December 31, 2000, the allowance for loan losses totaled $532,000, an amount
which represented 0.48% of total loans and 738.89% of non-performing loans. With
the  general  slowdown in the economy and the resulting decline in market values
of  equity securities, a number of borrowers have been faced with temporary cash
flow  problems.  As a result, a number of borrowers have been temporarily unable
to adhere to their contractual repayment schedules, which directly relates to an
individual  credit  being  classified  as  a  problem  or  nonperforming  loan.
Management  has  increased  its  emphasis on the adequacy of loan loss reserves,
taking  into consideration both local and national economic factors, in order to
maintain  the  adequacy  of  the  allowance  for  loan  losses.

     Non-performing  loans  were $1,488,000 and $72,000 at December 31, 2001 and
2000,  respectively,  and  represented  1.03%  and 0.06% of total assets at each
date.  The  $1,415,000  net increase at December 31, 2001, was due to $2,168,000
in loans that became classified as non-performing, $129,000 in loans that became
classified  as  performing,  $346,000  that  was paid off, $121,000 in principal
charge-offs  and  $157,000  in  payments  received.  All  loans  classified  as
non-performing  at  December 31, 2001, were either under a workout plan or being
refinanced  elsewhere,  the  underlying  collateral  was in the process of being
sold,  or  foreclosure action was being initiated.  Although management believes
that its allowance for loan losses at December 31, 2001, was adequate based upon
the  facts  and  circumstances  available  to it, there can be no assurance that
additions  to  such  allowance  will  not  be necessary in future periods.  Such
additions  could  adversely  affect  HCFC's  results  of  operations.

     Properties  and  equipment  totaled  $4.3  million at December 31, 2001, an
increase  of  $2.0  million,  or 88.51%, from $2.3 million at December 31, 2000.
The  increase  is  comprised  of the additional cost of construction and new
equipment related to the new main office  that  opened  in  July  2001.

     Deposits  totaled  $96.4 million at December 31, 2001, an increase of $21.3
million,  or  28.41%, from  $75.1 million at December 31, 2000.  The increase is
significantly  greater  than the deposit growth trends (averaging over 10%) that
Home City has been experiencing over the past several years and is attributed to
the  new  main  office  opening  in  midyear  2001.  Home City has generally not
engaged in sporadic increases or decreases in interest rates paid or offered the
highest rates available in its deposit market.  Advances from the FHLB increased
from  $35.0 million at December 31, 2000, to $35.3 million at December 31, 2001,
an  increase  of  1.04%,  as  advances  were  used  to  fund  loan originations.

     Shareholders' equity totaled $11.7 million at December 31, 2001, a decrease
of $131,000, or 1.11%, from $11.8 million at December 31, 2000, primarily due to
the  reduction  of  unrealized  gains  on  securities  available  for  sale.

COMPARISON OF RESULTS OF OPERATIONS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2001
AND  2000

     GENERAL.  Net  income for the year ended December 31, 2001, was $782,000, a
decrease  of  $212,000,  or  21.33%, from the $994,000 in net income recorded in
2000.  The  decrease in net income resulted primarily from a $71,000 decrease in
net  interest  income,  additional  provisions for loans losses of $30,000 and a
$1.0  million  increase in noninterest expense, which were partially offset by a
$714,000  increase  in  noninterest  income  and  a  decrease of $196,000 in the
provision  for  federal  income  taxes.

     NET INTEREST INCOME.  Net interest income totaled $3.7 million for the year
ended  December 31, 2001, a decrease of $71,000, or 1.93%, from the $3.8 million
recorded  in  2000.  Interest  income  on loans increased by $597,000, or 6.49%,
during  2001  due  primarily  to an increase in the average balance of the loans
outstanding  of  $10.7  million, or 10.24%, being partially offset by a 30 basis
point (100 basis points equals one percent) decrease in yield from 8.82% in 2000
to  8.52%  in  2001.  Interest income on mortgage-backed securities increased by
$195,000,  or  812.50%, due primarily to a $3.3 million, or 846.49%, increase in
the  average  balance  of  mortgage-backed  securities  outstanding,  which  was
slightly  off-set by a decrease in the weighted-average yield year-to-year, from
6.24% in fiscal 2000 to 6.01% in 2001.  Interest income on investment securities
increased  by  $24,000, or 8.36%, for the year ended December 31, 2001, compared
to  fiscal  2000,  as the average balance increased by $922,000 year-to-year and
the related yield decreased by 52 basis points to 5.35% in 2001. Interest income
on interest-bearing deposits decreased by $1,000 for the year ended December 31,
2001,  compared  to  2000.  The  average  balance  of  interest-bearing deposits
increased  $140,000, or 53.64%. The yield on interest-bearing deposits decreased
233  basis  points to 2.82%. The average investment in federal funds sold during
2001  was  $2.3  million, compared to an average investment of $220,000 in 2000,
which  yielded  3.22%  in  2001  as  compared  to  6.23%  in  2000.

     Interest  expense on deposits increased by $626,000, or 15.89%, during
2001, due primarily to an increase in the average balance of deposits out-
standing of $12.8 million,  or 18.29%, being offset slightly by a decrease in
the weighted-average rate from 5.61% in 2000 to 5.50% in 2001.  Interest expense
on FHLB advances and long-term  borrowings  increased  by  $321,000,  or
17.86%, primarily due to an increase  in  the  average balance outstanding of
$7.0 million, or 23.58%, being offset slightly by a decrease in the weighted-
average  rate from 6.05% in 2000 to 5.82%  in  2001.

     As  a  result  of  the  foregoing  changes  in interest income and interest
expense  the  interest  rate  spread  decreased by 33 basis points, to 2.60% for
2001,  as compared to 2.93% for 2000, while the net interest margin decreased by
52  basis  points  to  2.93%  for  the  year  ended  December  31,  2001.

     PROVISION  FOR  LOAN  LOSSES.  Home  City  maintains  an allowance for loan
losses  in  an  amount  that,  in  management's  judgment, is adequate to absorb
reasonably foreseeable losses inherent in the loan portfolio.  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 that is considered adequate to absorb losses inherent
in  the  loan  portfolio  in  accordance  with  generally  accepted  accounting
principles  ("GAAP").  The  amount  of  the  provision  is based on management's
regular  review  of  the  loan  portfolio  and  consideration of such factors as
historical loss experience, generally prevailing economic conditions, changes in
the  size  and  composition of the loan portfolio and considerations relating to
specific  loans, including the ability of the borrower to repay the loan and the
estimated  value of the underlying collateral.  Although management utilizes its
best  judgment and information available, the ultimate adequacy of the allowance
is dependent upon a variety of factors, including the performance of Home City's
loan  portfolio,  the  economy, changes in real estate values and interest rates
and regulatory requirements regarding asset classifications.  As a result of its
analysis,  management  concluded  that the allowance was adequate as of December
31,  2001.  There  can  be  no  assurance that the allowance will be adequate to
cover  future  losses  on  non-performing  assets.

     Home  City  had  net  charge-offs of  $155,000 and $69,000 during the years
ended  December 31, 2001 and 2000, respectively.  Home City's charge-off history
is  a  product  of  a  variety  of  factors,  including Home City's underwriting
guidelines  and  the  composition  of its loan portfolio.  Loans secured by real
estate made up 86.34%  of Home City's loan portfolio, and loans secured by first
mortgages on one- to four-family residential real estate made up 50.07% of total
loans  at December 31, 2001.  Such loans typically present less risk to a lender
than  loans  not  secured by real estate. Substantially all of Home City's loans
are  secured  by  properties  in  its  primary  market  area.

     The  provision  for  loan  losses  was $140,000 and $110,000 for the years
Ended December  31, 2001 and 2000, respectively.  The ratio of non-performing
loans to total  loans  increased  to  1.03%  in 2001 from 0.06% in 2000.  At
December 31, 2001 and 2000, Home City had a ratio of allowance for loan losses
to total loans of  0.45%  and  0.48%,  respectively, and ratios of allowance
for loan losses to non-performing  loans  of  34.77%  and  738.89%.  Due  to
such  ratios  of non-performing  loans  to  total  loans,  historical  charge-
offs,  delinquency history,  and  the  addition of commercial and consumer
installment lending, the provisions  of  $140,000  and  $110,000  made in 2001
and  2000  were  deemed appropriate  by  management  to  absorb  reasonably
foreseeable  loan  losses.

     NONINTEREST  INCOME.  Noninterest  income  totaled  $1,012,000 for the year
ended  December 31, 2001, an increase of $714,000, or 239.60%, from the $298,000
recorded in 2000.  The increase resulted primarily from increases of $362,000 in
net  gains  recognized  on the sale of securities,  $9,000 in service charges on
deposit  accounts,  $331,000  in revenues of the insurance agency and $38,000 in
other  miscellaneous income.  The $26,000 decrease in income from life insurance
is  a  direct  result  of  the change of individuals covered under director life
insurance  policies.

     NONINTEREST  EXPENSE.  Noninterest  expense  increased  by  $1,021,000,  or
38.84%,  to  a  total  of  $3.7 million for the year ended December 31, 2001, as
compared to 2000.  Salaries and employee benefit expenses increased $647,000, or
46.71%,  primarily  as  a result of additional staffing and the related employee
benefit programs. Occupancy and equipment expense increased $193,000, or 91.47%,
data  processing  expenses  increased  $66,000,  or  41.25%, and other operating
expenses  increased  $32,000,  or  9.67%.  The increase in salaries and employee
benefits  resulted  primarily  from  costs  associated  with  staff  additions
associated  with  the  Home  City  Insurance  Agency,  the  Home  City Financial
Corporation  Employee  Stock Ownership Plan, the Home City Financial Corporation
Recognition  and  Retention  Plan,  and  normal  merit  increases  for  existing
employees.  The  increase  in the remaining items of noninterest expense was due
primarily  to  the  growth of Home City as it related to the new office building
and  the  addition  of  the  business  of  Home  City  Insurance  Agency,  Inc.

     FEDERAL  INCOME  TAXES.  The  provision  for  federal  income taxes totaled
$165,000  for  the  year  ended  December  31,  2001, a decrease of $196,000, or
54.29%,  from  the $361,000 provision recorded in fiscal 2000.  HCFC's effective
tax  rate  decreased  to 17.42% in 2001 from 26.64% in 2000, which was primarily
the  result  of  tax-exempt  income  from  insurance  proceeds,  investments and
deferred  loan  costs.

<PAGE>
YIELDS  EARNED  AND  RATES  PAID

     The following table presents certain information relating to HCFC's average
balance  sheet  information  and  reflects the average yield on interest-earning
assets  and  the  average  cost  of  customer deposits and FHLB advances for the
periods  indicated.  Such yields and costs are derived by dividing annual income
or expense by the average monthly balance of interest-earning assets or customer
deposits  and  FHLB  advances,  respectively,  for the years presented.  Average
balances  are  derived  from daily balances, which included nonaccruing loans in
the  loan  portfolio,  net  of  the  allowance  for  loan  losses.


<TABLE>
<CAPTION>




                                                                                      Year ended December 31,
                                                                                     2001                   2000
                                                                   Average        Interest                Average
                                                                   outstanding    earned/    Yield/       outstanding
                                                                   balance        paid       rate         balance
                                                                   -----------    -------    ------       -----------
                                                                                      (Dollars in thousands)
<S>                                                               <C>            <C>        <C>          <C>
Interest-earning assets:
   Interest-earning demand deposits . . . . . . . . . . . . . . . .$  401         $  12      2.82%        $  261
   Federal funds sold . . . . . . . . . . . . . . . . . . . . . . . 2,345            75      3.22            220
   Time deposits. . . . . . . . . . . . . . . . . . . . . . . . . .    24             0      1.25             24
   Investment securities (1). . . . . . . . . . . . . . . . . . . . 5,809           311      5.35          4,887
   Mortgage-backed securities . . . . . . . . . . . . . . . . . . . 3,644           219      6.01            385
   Loans receivable (2) . . . . . . . . . . . . . . . . . . . .   114,894         9,792      8.52        104,223
                                                                  -------        ------     ------       -------
      Total interest-earning assets (3) . . . . . . . . . . . .   127,117        10,409      8.19        110,000

Noninterest-earning assets:
   Less: Allowance for loan losses . . . . . . . . . . . . . . .    (531)                                  (499)
   Other non-earning assets. . . . . . . . . . . . . . . . . . .    9,216                                  4,641
                                                                  -------                                 ------
      Total assets. . . . . . . . . . . . . . .                   135,802                                114,142
                                                                  =======                              =========

Interest-bearing liabilities:
   NOW accounts . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,401         $  28     1.99%        $ 1,328
   Money market accounts. . . . . . . . . . . . . . . . . . . . . .   450            15     3.27             431
   Passbook accounts. . . . . . . . . . . . . . . . . . . . . . . .14,049           452     3.22          12,381
   Certificates of deposit. . . . . . . . . . . . . . . . . . . . .67,155         4,071     6.06          56,080
                                                                  -------        -------    -----        -------
      Total deposits. . . . . . . . . . . . . . . . . . . . . . . .83,065         4,566     5.50          70,220

Notes payable . . . . . . . . . . . . . . . . . . . . . . . . .       310            22     6.94              26
FHLB advances. . . . . . . . . . . . . . . . . . . . . . . . . .   36,403         2,096     5.81          29,681
                                                                  -------        ------    -----         -------

      Total interest-bearing liabilities. . . . . . . .           119,778         6,684     5.59          99,927

Noninterest-bearing liabilities. . . . . . . . . . . . . . . . .    4,524                                  2,944
                                                                  -------                                 ------
      Total liabilities . . . . . . . . . . . . . . . . . . . .   123,992                                102,871

Total shareholders' equity . . . . . . . . . . . . . . . . . . .   11,810                                 11,271
                                                                  -------                               --------
      Total liabilities and
           shareholders' equity. . . . . . . . . . . . . . .   . $135,802                               $114,142
                                                                  =======                              =========

Net interest income; net interest rate spread. . . . . . . . . .                $ 3,725    2.60%
                                                                                =======    =====

Net interest margin (4). . . . . . . . . . . . . . . . . . . . .                           2.93%
                                                                                         =======

Average interest-earning assets to interest-bearing liabilities.                         106.40%
                                                                                        ========



                                                               Interest     Yield/
                                                               earned/      rate
                                                               paid
                                                              (Dollars in thousands)
<S>                                                           <C>          <C>
Interest-earning assets:
   Interest-earning demand deposits . . . . . . . . . . . . .  $  13         5.15%
   Federal funds sold . . . . . . . . . . . . . . . . . . . . . . 14         6.23
   Time deposits. . . . . . . . . . . . . . . . . . . . . . . . .  0         1.25
   Investment securities (1). . . . . . . . . . . . . . . . . . .287         5.87
   Mortgage-backed securities . . . . . . . . . . . . . . . . . . 24         6.24
   Loans receivable (2) . . . . . . . . . . . . . . . . . .    9,195         8.82
                                                               ------
      Total interest-earning assets (3) . . . . . . . . . . .  9,533         8.67

Noninterest-earning assets:
   Less: Allowance for loan losses
   Other non-earning assets

      Total assets

Interest-bearing liabilities:
   NOW accounts . . . . . . . . . . . . . . . . . . . . . . . .$  37         2.80%
   Money market accounts. . . . . . . . . . . . . . . . . . . . . 15         3.49
   Passbook accounts. . . . . . . . . . . . . . . . . . . . . .  480         3.87
   Certificates of deposit. . . . . . . . . . . . . . . . . .  3,408         6.08
                                                              ------
      Total deposits. . . . . . . . . . . . . . . . . . . . .  3,940         5.61

   Notes payable . . . . . . . . . . . . . . . . . . . . .         0            0
   FHLB advances. . . . . . . . . . . . . . . . . . . . . . .  1,797         6.05
                                                              ------

               Total interest-bearing liabilities. . . . . . . 5,737         5.74%

Noninterest-bearing liabilities

       Total liabilities

Total shareholders' equity

           Total liabilities and
           shareholders' equity


Net interest income; net interest rate spread                $ 3,796         2.93%


Net interest margin (4)                                                      3.45%


Average interest-earning assets to interest-bearing liabilities            110.08%
</TABLE>



(1)     Includes  $93,000 and $33,000 of nontaxable municipal income recorded in
        2001  and  2000,  respectively. The tax-equivalent yield on investments
        is 6.17% and  7.10%  for  2001  and  2000,  respectively.
(2)     Calculated  net  of deferred loan fees, loan discounts, loans in process
        and  allowance  for  loan  losses.
(3)     Tax-equivalent  yield  on interest-earning assets is 8.23% and 8.68% for
        2001  and  2000,  respectively.
(4)     Net  interest  income  as  a percent of average interest-earning assets.

     The  table  below  describes  the  extent to which changes in interest
rates and changes  in  volume  of interest-earning assets and interest-bearing
liabilities have  affected  HCFC's interest income and expense during the
periods indicated. For  each  category of interest-earning assets and interest-
bearing liabilities, information is provided on changes attributable to (i)
changes in volume (change in  volume  multiplied by prior year rate), (ii)
changes in rate (change in rate multiplied  by  prior  year  volume) and (iii)
total changes in rate and volume. The  combined  effects  of  changes  in  both
volume  and rate, which cannot be separately  identified, have been allocated
proportionately to the change due to volume  and  the  change  due  to  rate:


<TABLE>
<CAPTION>




                                                                 Year ended December 31,
                                                    2001 vs. 2000                   2000 vs. 1999
                                                      Increase                         Increase
                                                     (decrease)                       (decrease)
                                                        due to                         due to
                                             Volume      Rate       Total     Volume    Rate     Total
                                            --------     -----      -----     ------    ----     -----
                                                              (Dollars in thousands)
<S>                                        <C>           <C>        <C>       <C>       <C>      <C>
Interest income attributable to:
   Interest-earning demand deposits. .. . .$    7         $  (8)     $  (1)    $  (8)    $  3     $   (5)
   Federal funds sold. . . . . . . . .. . .   132           (71)        61         0       14         14
   Time deposits . . . . . . . . . . .. . .                       -                0        0          0
   Investment securities . . . . . . .. . .    54           (30)        24        48       44         92
   Mortgage-backed and related securities..   203            (8)       195        (6)       1         (5)
   Loans receivable. . . . . . . . . . . ..   942          (345)       597     1,612      (73)     1,539
                                             -----         -----      ----     -----    -----     ------
      Total interest income . . . . . . . . 1,338          (462)       876     1,646      (11)     1,635

Interest expenses attributable to:
   NOW accounts. . . . . . . . . . . . .        2           (11)        (9)        4        1          5
   Money market accounts . . . . . . . . .      1            (1)         -         0        2          2
   Passbook savings accounts . . . . . . .     65           (93)       (28)       23       66         89
   Certificates of deposit . . . . . . . .    673           (10)       663       421      201        622
   Notes payable . . . . . . . . . . . .                     22         22       (25)       0        (25)
   Borrowed funds. . . . . . . . . . . . .    388           (89)       299       612      174        786
                                             -----          ----      -----      ----     ----       ----
       Total interest expense. . . . . . . .1,129          (182)       947     1,035      444      1,479
                                            -----          -----      ----     ------     ----     ------

Increase (decrease) in net interest income. $ 209        $ (280)    $ (71)     $ 611   $ (455)    $  156
                                             =====        =======   ======    ======    ======    =======
</TABLE>


ASSET  AND  LIABILITY  MANAGEMENT

     Home  City,  like other financial institutions, is subject to interest rate
risk to the extent that its interest-earning assets reprice differently than its
interest-bearing  liabilities.  As  part  of  its  effort  to monitor and manage
interest  rate  risk, Home City uses the net portfolio value ("NPV") methodology
adopted  by  the  OTS  as part of its capital regulations but the enforcement of
which  has  been  waived  by  the  OTS.

     Generally,  NPV  is  the  discounted  present  value  of  the difference
Between incoming cash flows on interest-earning and other assets and outgoing
cash flows on  interest-bearing  and other liabilities.  The application of the
methodology attempts  to  quantify  interest  rate  risk as the change in the
NPV that would result from a theoretical 200 basis point change in market
interest rates.  Both a  200  basis  point  increase  in  market  interest
rates and a 200 basis point decrease  in  market  interest  rates are
considered.   If the NPV would decrease more  than  2%  of the economic value
of the institution's assets with either an increase  or  decrease  in  market
rates, the institution must deduct 50% of the amount  of  the  decrease  in
excess  of  such  2%  in  the  calculation of the institution's  risk-based
capital.  See  "Liquidity  and  Capital  Resources."

     At  December  31,  2001, 2% of the economic value of Home City's assets was
approximately  $2.9 million. Because the interest rate risk of a 200 basis point
increase  in  market  rates  was  a $3.2 million decrease in NPV at December 31,
2001,  Home City would have been required to deduct $150,000 from its capital in
determining  whether  Home  City  met  its  risk-based  capital  requirement.

<PAGE>
     Presented below, as of December 31, 2001, is an analysis of Home City's
Interest rate risk as measured by changes in NPV for instantaneous and sustained
Parallel shifts  of  100  basis points in market interest rates.  The table also
Contains the  policy  limits  set  by  the Board of Directors of Home City as
the maximum changes  in  NPV  that  the  Board  of Directors deems advisable in
the event of various  changes  in  interest  rates.  Such  limits  have been
established with consideration  of  the  dollar  impact  of  various rate
changes and Home City's strong  capital  position.

     As  illustrated  in  the table, Home City's NPV is more sensitive to rising
rates  than  declining rates.  Such difference in sensitivity occurs principally
because,  as  rates rise, borrowers do not prepay fixed-rate loans as quickly as
they  do  when  interest rates are declining.  As a result, in a rising interest
rate  environment,  the  amount of interest Home City would receive on its loans
would  increase  relatively  slowly  as loans are slowly repaid and new loans at
higher  rates  are  made.  Moreover,  the  interest  Home  City would pay on its
deposits  would  increase  rapidly  because  Home City's deposits generally have
shorter  periods  to  repricing.  Because  Home City has not originated loans in
accordance  with traditional secondary market guidelines, the sale of fixed-rate
loans  may  be  difficult.  In  addition,  increases  in interest rates can also
result  in  the  flow  of  funds  away  from  savings  institutions  into direct
investments  or  other  investment vehicles, such as mutual funds, which may pay
higher  rates  of  return  than  savings  institutions.  Assumptions  used  in
calculating  the  amounts  in  this  table  are  OTS  assumptions.


<TABLE>
<CAPTION>


                                              At  December  31,  2001
        Change in interest
               rate             Board limit     $ change     % change
           basis points)        % change        in NPV       in NPV
           -------------        --------        ------       ------
                                 (Dollars  in  thousands)

<S>    <C>                    <C>               <C>          <C>
        +300                   (55)%             $(5,800)     (43)%
        +200                   (35)               (3,167)     (24)
        +100                   (20)               (1,438)     (11)
           0. .                  0                     0        0
        -100                   (20)                  888        7
        -200                   (35)                  --- (1)  --- (1)
        -300                   (55)                  --- (1)  --- (1)
</TABLE>

     ___________________
(1)  As  a result of the low interest rate environment at
     December 31, 2001, the OTS NPV Model did not produce results for the
     minus 200 and  300  basis  point  scenario.

     The  NPV  table  indicates that at each 100 basis point increment, the
change in Home  City's  NPV  that  would  have been caused by the respective
interest rate shock  was within the policy limits set by the Board of Directors.
The Board of Directors  considers  the  results  of  each  quarterly analysis
and factors the information into its decisions in adjusting the pricing of loans
and deposits in the  future.

     As  with  any  method of measuring interest rate risk, certain shortcomings
are  inherent  in  the  NPV  approach.  For example, although certain assets and
liabilities  may have similar maturities or periods of repricing, they may react
in  different  degrees  to changes in market rates.  Also, the interest rates on
certain  types  of assets and liabilities may fluctuate in advance of changes in
market  rates,  while  interest  rates  on other types may lag behind changes in
market  rates.  Further,  in  the  event of a change in interest rates, expected
rates of prepayment on loans and mortgage-backed securities and early withdrawal
levels  from  certificates  of  deposit  would likely deviate significantly from
those  assumed  in  making  the  risk  calculations.

     If  interest rates continue to rise from the recent levels, Home City's net
interest  income  will  be negatively affected.  Moreover, rising interest rates
may  negatively  affect  Home  City's earnings due to diminished loan demand. In
order  to  maintain  Home  City's net interest margin, management is continually
developing  and  modifying  their strategies to stimulate the demand for quality
loans and tailoring the types of loan products available that can be adjusted to
match  the current market conditions.  Additional alternative sources of funding
are  being  explored  in  anticipation  of  possible interest rate fluctuations.

<PAGE>

LIQUIDITY  AND  CAPITAL  RESOURCES

     Home  City'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  years  presented:


<TABLE>
<CAPTION>


                                                Year  ended  December  31,
                                                --------------------------
                                                  2001           2000
                                                  ----           ----
                                               (Dollars  in  thousands)


<S>                                                <C>         <C>
Net income. . . . . . . . . . . . . . . . . . .     $  782      $  994
Adjustments to reconcile net income to net cash
   from operating activities . . . . . . . . . . .    (245)        821
                                                    ------     -------
Net cash provided by operating activities . . .        537       1,815
Net cash used in investing activities . . . . .    (18,071)    (16,864)
Net cash provided by financing activities . . .     20,951      13,159
                                                  --------     -------
Net change in cash and cash equivalents . . . .      3,417      (1,890)
Cash and cash equivalents at beginning of year.      1,593       3,483
                                                   -------      ------
Cash and cash equivalents at end of year. . . .    $ 5,010     $ 1,593
                                                    ======      ======
</TABLE>


     Home  City's  principal  sources  of  funds  are  deposits,  loan  and
mortgage-backed  securities repayments, maturities of securities and other funds
provided  by  operations.  Home  City  also borrows from the FHLB of Cincinnati.
While  scheduled  loan  repayments  and  maturing  investments  are  relatively
predictable,  deposit  flows  and  early  loan  and  mortgage-backed  security
prepayments  are  more influenced by interest rates, general economic conditions
and  competition.  Home  City  maintains investments in liquid assets based upon
management's  assessment of (i) the need for funds, (ii) expected deposit flows,
(iii)  the  yields available on short-term liquid assets and (iv) the objectives
of  the asset/liability management program.  In the ordinary course of business,
part  of  such  liquid  investment  portfolio  is  composed  of  deposits  at
correspondent banks.  Although the amount on deposit at such banks often exceeds
the  $100,000 limit covered by FDIC insurance, Home City monitors the capital of
such  institutions to ensure that such deposits do not expose Home City to undue
risk  of  loss.

     OTS  regulations  require Home City to maintain an average daily balance of
liquid  assets, which may include, but are not limited to, investments in United
States  Treasury  obligations,  federal agency obligations and other investments
having  maturities  of  five years or less, in an amount sufficient to provide a
source  of relatively liquid funds upon which Home City may rely if necessary to
fund  deposit  withdrawals  or  other short-term funding needs.  At December 31,
2001,  Home  City's  regulatory  liquidity  ratio was 8.71% of its average daily
balances of net withdrawable deposit accounts and borrowings payable in one year
or  less.  At  such  date, Home City had commitments to originate loans totaling
$12.6 million and no commitments to purchase or sell loans.  Home City considers
its liquidity and capital reserves sufficient to meet its outstanding short- and
long-term  needs.  Adjustments  to  liquidity  and  capital  reserves  may  be
necessary,  however,  if loan demand increases more than expected or if deposits
decrease  substantially.  See  Note  P  of  the  Notes to Consolidated Financial
Statements.

     Home  City  is  required  by  applicable law and regulation to meet certain
minimum  capital  standards.  Such  capital standards include a tangible capital
requirement,  a  core  capital  requirement  or  leverage ratio and a risk-based
capital  requirement.  Home  City  exceeded  all  of its capital requirements at
December  31,  2001  and  2000.

     Savings  associations  are  required  to maintain "tangible capital" of not
less  than 1.5% of the association's adjusted total assets.  Tangible capital is
defined  in  OTS  regulations  as  core  capital  less  intangible  assets.

     "Core  capital"  is  comprised  of  common  stockholders' equity (including
retained  earnings), noncumulative preferred stock and related surplus, minority
interests  in  consolidated  subsidiaries,  certain nonwithdrawable accounts and
pledged  deposits  of  mutual  associations.  OTS  regulations  require  savings
associations  to maintain core capital of at least 4% of the association's total
assets,  except  for  those associations with the highest examination rating and
acceptable  levels  of  risk,  which  may maintain a minimum of 3% core capital.

     OTS  regulations  require  that  savings  associations maintain "risk-based
capital"  in  an  amount  not  less than 8% of risk-weighted assets.  Assets are
weighted  at  percentage  levels  ranging  from  0%  to  100% depending on their
relative  risk.  Risk-based  capital  is  defined  as  core capital plus certain
additional  items  of capital, which in the case of Home City includes a general
loan  loss  allowance  of  $517,000  at  December  31,  2001.

     The  following table summarizes Home City's regulatory capital requirements
and actual capital (see Note P of the Notes to Consolidated Financial Statements
for  a  reconciliation  of capital under GAAP and regulatory capital amounts) at
December  31,  2001:


<TABLE>
<CAPTION>


                                                                        Excess of actual
                                                                        capital over current
                       Actual capital        Current requirement        Requirement
                       --------------        -------------------        -----------         Applicable
                       Amount     Percent     Amount     Percent     Amount     Percent     asset total
                       ------     -------     ------     -------     ------     -------     -----------
                                                    (Dollars  in  thousands)

<S>                   <C>        <C>         <C>        <C>         <C>        <C>          <C>
Tangible capital .     $11,108    7.68%       $2,169     1.50%       $8,939     6.18%        $144,599
Core capital . . .      11,108    7.68         5,784     4.00         5,324     3.68          144,599
Risk-based capital      11,591   10.60         8,751     8.00         2,840     2.60          109,383
</TABLE>


IMPACT  OF  INFLATION  AND  CHANGING  PRICES

     The  financial  statements  and  related  data  presented  herein have been
prepared  in  accordance  with  GAAP, which require the measurement of financial
position  and  results  of  operations  primarily in terms of historical dollars
without  considering changes in the relative purchasing power of money over time
because  of  inflation.

     Virtually  all assets and liabilities of HCFC are monetary in nature.  As a
result,  interest  rates  have a more significant impact on performance than the
effects  of  general  levels  of  inflation.


ITEM 7.   Financial Statements

                              (Accountant's Letter)

                        DIXON, FRANCIS, DAVIS & COMPANY
                                1205 Weaver Drive
                              Granville, Ohio 43023


                          INDEPENDENT AUDITOR'S REPORT


The  Board  of  Directors  and  Shareholders
Home  City  Financial  Corporation
Springfield,  Ohio


     We  have  audited  the  consolidated  balance sheets of Home City Financial
Corporation  and  subsidiaries as of December 31, 2001 and 2000, and the related
consolidated  statements of income, shareholders' equity, and cash flows for the
years  then  ended.  These  consolidated  financial  statements  are  the
responsibility  of  the  Corporation's  management.  Our  responsibility  is  to
express  an  opinion  on  these  financial  statements  based  on  our  audits.

     We  conducted  our  audits  in accordance with auditing standards generally
accepted  in the United States of America.  Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.  We  believe  that  our  audits  provide  a
reasonable  basis  for  our  opinion.

     In  our opinion, the financial statements referred to above present fairly,
in  all  material  respects,  the  consolidated  financial position of Home City
Financial Corporation and subsidiaries as of December 31, 2001 and 2000, and the
consolidated results of their operations and their cash flows for the years then
ended  in conformity with accounting principles generally accepted in the United
States  of  America.






                                                 Dixon,  Francis,  Davis
                                                 &  Company

Granville,  Ohio
January  31,  2002

<PAGE>

<TABLE>
<CAPTION>


        HOME  CITY  FINANCIAL  CORPORATION  -  CONSOLIDATED  BALANCE  SHEETS
----------------------------------------------------------------------------------

                                                            (Dollars in thousands)
                                                                      December 31,
                                                                      ------------

                                                              2001       2000
                                                             -----       -----
<S>                                                          <C>        <C>
ASSETS
Cash and cash equivalents
  Cash and due from banks. . . . . . . . . . . . . . . . . .  $  2,133   $  1,248
  Interest-earning demand deposits in other banks. . . . . .       638         72
  Federal funds sold . . . . . . . . . . . . . . . . . . . .     2,239        273
                                                              ---------  ---------
    Total cash and cash equivalents. . . . . . . . . . . . .     5,010      1,593

Time deposits with original maturities of 90 days or more. .        24         24
Investment securities available-for-sale, at fair value. . .     4,008      3,619
Mortgage-backed securities available-for-sale, at fair value     9,603        460
Loans, net . . . . . . . . . . . . . . . . . . . . . . . . .   115,373    110,945
Stock in Federal Home Loan Bank. . . . . . . . . . . . . . .     2,079      1,779
Accrued interest receivable. . . . . . . . . . . . . . . . .       671        670
Properties and equipment . . . . . . . . . . . . . . . . . .     4,300      2,281
Cash surrender value of life insurance . . . . . . . . . . .     2,695      1,073
Deferred income taxes. . . . . . . . . . . . . . . . . . . .       169          0
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . .        65         70
Other intangibles. . . . . . . . . . . . . . . . . . . . . .       309        343
Other assets . . . . . . . . . . . . . . . . . . . . . . . .       317        588
                                                              ---------  ---------

   TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . .  $144,623   $123,445
                                                              =========  =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 96,403   $ 75,077
Federal Home Loan Bank advances. . . . . . . . . . . . . . .    35,315     34,951
Note payable . . . . . . . . . . . . . . . . . . . . . . . .       307        313
Accrued interest payable . . . . . . . . . . . . . . . . . .       234        227
Advance payments by borrowers for taxes and insurance. . . .       142        144
Deferred income taxes. . . . . . . . . . . . . . . . . . . .         0        127
Other liabilities. . . . . . . . . . . . . . . . . . . . . .       547        800
                                                              ---------  ---------


   TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . .   132,948    111,639

SHAREHOLDERS' EQUITY
Preferred shares, no par value; 1,000,000 shares
  authorized; none issued. . . . . . . . . . . . . . . . . .         0          0
Common shares, no par value; 5,000,000 shares
  authorized; 952,200 shares issued. . . . . . . . . . . . .         0          0
Additional paid-in capital . . . . . . . . . . . . . . . . .     6,023      6,026
Retained earnings, substantially restricted. . . . . . . . .     8,365      7,934
Treasury shares, at cost . . . . . . . . . . . . . . . . . .    (2,266)    (1,886)
Accumulated other comprehensive income . . . . . . . . . . .       112        449
Common shares purchased by:
  Employee Stock Ownership Plan. . . . . . . . . . . . . . .      (381)      (457)
  Recognition and Retention Plan . . . . . . . . . . . . . .      (178)      (260)
                                                              ---------  ---------

   TOTAL SHAREHOLDERS' EQUITY. . . . . . . . . . . . . . . .    11,675     11,806
                                                              ---------  ---------

   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . .  $144,623   $123,445
                                                              =========  =========
</TABLE>

------------------------------------
See accompanying notes.

<TABLE>
<CAPTION>


     HOME  CITY  FINANCIAL  CORPORATION  -  CONSOLIDATED  STATEMENTS  OF  INCOME
--------------------------------------------------------------------------------

                                                  (Dollars in thousands)
                                                  Year ended December 31,
                                                  -----------------------

                                                       2001     2000
                                                      -------  ------
<S>                                                   <C>      <C>
INTEREST  INCOME
Loans. . . . . . . . . . . . . . . . . . . . . . . .  $ 9,792  $9,195
Mortgage-backed securities . . . . . . . . . . . . .      219      24
Investment securities. . . . . . . . . . . . . . . .      311     287
Interest-bearing demand deposits . . . . . . . . . .       12      13
Federal funds sold . . . . . . . . . . . . . . . . .       75      14
                                                      -------  ------

  TOTAL INTEREST INCOME. . . . . . . . . . . . . . .   10,409   9,533

INTEREST EXPENSE
Deposits . . . . . . . . . . . . . . . . . . . . . .    4,566   3,940
Borrowed funds . . . . . . . . . . . . . . . . . . .    2,118   1,797
                                                      -------  ------

  TOTAL INTEREST EXPENSE . . . . . . . . . . . . . .    6,684   5,737
                                                      -------  ------

  NET INTEREST INCOME. . . . . . . . . . . . . . . .    3,725   3,796
Provision for loan losses. . . . . . . . . . . . . .      140     110
                                                      -------  ------

 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES    3,585   3,686

NONINTEREST INCOME
Service charges on deposits. . . . . . . . . . . . .       31      22
Life insurance . . . . . . . . . . . . . . . . . . .      132     158
Gain on sale of securities, net. . . . . . . . . . .      426      64
Other income . . . . . . . . . . . . . . . . . . . .      423      54
                                                      -------  ------

  TOTAL NONINTEREST INCOME . . . . . . . . . . . . .    1,012     298

NONINTEREST EXPENSES
Salaries and employee benefits . . . . . . . . . . .    2,032   1,385
Supplies, telephone and postage. . . . . . . . . . .      170      85
Occupancy and equipment. . . . . . . . . . . . . . .      404     211
FDIC deposit insurance . . . . . . . . . . . . . . .       15      14
Data processing. . . . . . . . . . . . . . . . . . .      226     160
Legal, accounting and examination. . . . . . . . . .      297     306
Franchise taxes. . . . . . . . . . . . . . . . . . .      143     137
Other expenses . . . . . . . . . . . . . . . . . . .      363     331
                                                      -------  ------

  TOTAL NONINTEREST EXPENSES . . . . . . . . . . . .    3,650   2,629
                                                      -------  ------

 NET INCOME BEFORE FEDERAL INCOME TAX EXPENSE. . . .      947   1,355

Federal income tax expense . . . . . . . . . . . . .      165     361
                                                      -------  ------

  NET INCOME . . . . . . . . . . . . . . . . . . . .  $   782  $  994
                                                      =======  ======

Earnings per common share - basic. . . . . . . . . .  $  1.05  $ 1.32
Earnings per common share - diluted. . . . . . . . .  $  0.97  $ 1.21
</TABLE>

-----------------------------
See accompanying notes.

       HOME CITY FINANCIAL CORPORATION-CONSOLIDATED STATEMENTS OF CHANGES IN
       ---------------------------------------------------------------------
                              SHAREHOLDERS' EQUITY
                              --------------------

<TABLE>
<CAPTION>




                                                         Number of shares
<S>                           <C>          <C>        <C>          <C>       <C>

                                                       Common       Common
                                                       shares       shares     Additional
                               Common       Treasury   purchased    purchased  paid-in
                               shares       shares     by ESOP      by RRP     capital
                               -----        ------     -------      ------     -------
December 31, 1999. . . . . .   952,200      (108,810)  (53,322)     (16,780)   $  6,033

Net income
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $72
Comprehensive income
Purchase of treasury shares.                 (29,390)
Shares allocated under
 Employee Stock
 Ownership Plan. . . . . . .                             7,618
Shares earned under
 Recognition and
 Retention Plan. . . . . . .                                          6,022          (7)
Dividends declared
 ($.425 per share)
                               ------       --------   -------       -------      ------
December 31, 2000. . . . . .   952,200      (138,200)  (45,704)      (10,758)      6,026

Net income
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $174
Comprehensive income
Purchase of treasury shares.                (29,600)
Shares allocated under
 Employee Stock
 Ownership Plan. . . . . . .                            7,618
Shares earned under
 Recognition and
 Retention Plan. . . . . . .                                        4,880        (3)
Dividends declared
 ($.44 per share)

December 31, 2001. . . . . .   952,200     (167,800)  (38,086)     (5,878)  $  6,023
                              ===========  =========  =======      ========  ========
</TABLE>
<TABLE>
<CAPTION>

                                                         (Dollars in thousands)
                                                               Amounts
<S>                           <C>         <C>         <C>       <C>          <C>          <C>
                                                      Accumu-
                                                      lated
                                                      other     Common      Common
                                                      compre-   shares      shares       Compre-
                              Retained    Treasury    hensive   purchased   purchased    hensive
                              earnings    shares      income    by ESOP     by RRP       income
                              ----------  ----------  --------  -----------  -----------  -------

December 31, 1999. . . . . .  $  7,288    $  (1,516)  $  309       $  (533)      $ (365)

Net income . . . . . . . . .        994                                                    $ 994
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $72. . . . . . . . .                             140                                 140
                                                                                          -------
Comprehensive income . . . .                                                              $1,134
                                                                                          =======
Purchase of treasury shares.                   (370)
Shares allocated under
 Employee Stock
 Ownership Plan. . . . . . .                                            76
Shares earned under
 Recognition and
 Retention Plan. . . . . . .                                                        105
Dividends declared
 ($.425 per share) . . . . .      (348)
                                 -----       ------     ----          ----        -----
December 31, 2000. . . . . .     7,934       (1,886)     449          (457)        (260)

Net income . . . . . . . . .       782                                                    $  782
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $174 . . . . . . . .                            (337)                               (337)
                                                                                          -------
Comprehensive income . . . .                                                              $  445
                                                                                         =======
Purchase of treasury shares.                   (380)
Shares allocated under
 Employee Stock
 Ownership Plan. . . . . . .                                            76
Shares earned under
 Recognition and
 Retention Plan. . . . . . .                                                         82
Dividends declared
 ($.44 per share). . . . . .      (351)
                              --------    ---------   ------     -----------    --------
December 31, 2001. . . . . .  $  8,365    $  (2,266)  $  112       $  (381)     $  (178)
                              =========  ==========   ======       ========     =======+
</TABLE>
--------------------------------
See accompanying notes.

<TABLE>
<CAPTION>


                 HOME CITY FINANCIAL CORPORATION - CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                   (Dollars in thousands)
                                                                                  Year ended December 31,
                                                                                 ------------------------
                                                                                         2001      2000
                                                                                      ---------  -------
<S>                                                                                 <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  $    782   $    994
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Premium amortization, net of discount accretion . . . . . . . .                        32          1
    Provision for loan losses . . . . . . . . . . . . . . . . . . .                       140        110
    (Gain) loss on sale of securities . . . . . . . . . . . . . . .                      (426)       (64)
    Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . .                       158         78
    Deferred income taxes . . . . . . . . . . . . . . . . . . . . .                      (123)        73
    Life insurance income, net of expenses. . . . . . . . . . . . .                      (112)       109
    Amortization of intangible. . . . . . . . . . . . . . . . . . .                        39          0
    Employee Stock Ownership Plan compensation expense. . . . . . .                        76         76
    Recognition and Retention Plan compensation expense . . . . . .                        79         98
  FHLB stock dividends. . . . . . . . . . . . . . . . . . . . . . .                      (134)      (110)
  Proceeds from sales of loans. . . . . . . . . . . . . . . . . . .                         0        577
  Net change in:
    Accrued interest receivable . . . . . . . . . . . . . . . . . .                        (1)      (150)
    Accrued interest payable. . . . . . . . . . . . . . . . . . . .                         7         49
    Other assets. . . . . . . . . . . . . . . . . . . . . . . . . .                       (84)      (525)
    Other liabilities . . . . . . . . . . . . . . . . . . . . . . .                       104        499
                                                                                         ------   -------
  Net cash provided by operating activities . . . . . . . . . . . .                       537      1,815

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available-for-sale. . . . . . . . . . . . .                   (15,852)    (1,817)
Proceeds from sales of securities available-for-sale. . . . . . . .                     5,341      1,450
Proceeds from maturities of securities available-for-sale . . . . .                       147         55
Collections on mortgage-backed securities available-for-sale. . . .                       714         88
Acquisition of insurance agency . . . . . . . . . . . . . . . . . .                         0       (100)
Net increase in loans . . . . . . . . . . . . . . . . . . . . . . .                    (4,568)   (14,788)
Purchases of properties and equipment . . . . . . . . . . . . . . .                    (2,177)    (1,344)
Purchase of life insurance. . . . . . . . . . . . . . . . . . . . .                    (1,510)         0
Purchase of FHLB stock. . . . . . . . . . . . . . . . . . . . . . .                      (166)      (408)
                                                                                      --------  ---------
  Net cash used in investing activities . . . . . . . . . . . . . .                   (18,071)   (16,864)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits. . . . . . . . . . . . . . . . . . . . . .                    21,326      5,406
Net change in short-term FHLB advances. . . . . . . . . . . . . . .                    (4,700)     3,700
Proceeds from new long-term FHLB advances . . . . . . . . . . . . .                    11,000     13,725
Payments on long-term FHLB advances . . . . . . . . . . . . . . . .                    (5,936)    (8,979)
Repayment on long-term debt . . . . . . . . . . . . . . . . . . . .                        (6)         0
Net change in advance payments by borrowers for taxes and insurance                        (2)        25
Purchase of common shares for Recognition and Retention Plan. . . .                         0          0
Purchase of treasury shares . . . . . . . . . . . . . . . . . . . .                      (380)      (370)
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . .                      (351)      (348)
                                                                                       -------  ---------
  Net cash provided by financing activities . . . . . . . . . . . .                    20,951     13,159
                                                                                      --------   --------

  Net increase (decrease) in cash and cash equivalents. . . . . . .                     3,417     (1,890)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR. . . . . . . . . . .                     1,593      3,483
                                                                                       -------  ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR. . . . . . . . . . . . . .                  $  5,010   $  1,593
                                                                                     =========  =========
</TABLE>
----------------------------------------
See accompanying notes.



NOTE  A  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

NATURE  OF  OPERATIONS
Home  City  Financial  Corporation  (the "corporation") is a unitary savings and
loan holding company which was organized in August of 1996. The principal assets
of  the  corporation  are the capital stock of Home City Federal Savings Bank of
Springfield  (the "bank"), the capital stock of Home City Insurance Agency, Inc.
(the  "agency")  and a loan made to the Home City Financial Corporation Employee
Stock  Ownership  Plan  (the  "ESOP")  for  the purchase of common shares of the
corporation.  The  bank  provides a variety of financial services to individuals
and  corporate  customers,  through  its  office  in Springfield, Ohio, which is
primarily  a  small  industrial  area.  The  bank's primary deposit products are
savings  accounts and certificates of deposit.  Its primary lending products are
single-family  residential loans, commercial loans and consumer loans.  The bank
owns  100%  of  its subsidiary, Homciti Service Corp., which invests in stock of
the  bank's data service provider and a local joint venture, in both of which it
has  minority interests.  The agency provides a variety of insurance products to
individuals  and  corporate  customers  in  the  Springfield  area.

The  accounting  and  reporting policies of the corporation and its subsidiaries
conform to generally accepted accounting principles and general practices within
the  financial  services industry.  The more significant accounting policies are
summarized  below.

BASIS  OF  CONSOLIDATION
The  consolidated  financial  statements include the accounts of the corporation
and  all subsidiaries.  Significant inter-company accounts and transactions have
been  eliminated.

USE  OF  ESTIMATES
The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities  and  disclosure of
contingent  assets  and  liabilities at the date of the financial statements and
the  reported  amounts  of  revenues  and  expenses during the reporting period.
Actual  results  could  differ  from  those  estimates.

Material  estimates  that  are  particularly  susceptible  to significant change
relate to the determination of the allowance for losses on loans.  In connection
with  the  determination  of  the  allowance for loan losses, management obtains
independent  appraisals  for  significant  properties.

A  majority  of  the bank's loan portfolio consists of single-family residential
loans  in  the  Springfield, Ohio area.  The regional economy depends heavily on
some  200 diversified industries.  Accordingly, the ultimate collectibility of a
substantial  portion  of  the bank's loan portfolio is susceptible to changes in
local  market  conditions.

While management uses available information to recognize losses on loans, future
additions  to the allowance for loan losses may be necessary based on changes in
local  economic  conditions.  In  addition,  regulatory agencies, as an integral
part  of their examination process, periodically review the bank's allowance for
losses  on  loans.  Such agencies may require the bank to recognize additions to
the  allowance  based  on their judgments about information available to them at
the  time  of  their  examination.  Because  of  these factors, it is reasonably
possible  that  the  allowance for loan losses may change materially in the near
term.  However,  the  amount of the change that is reasonably possible cannot be
estimated.

CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
For  purposes  of  the  consolidated  statements  of cash flows, the corporation
considers  cash  and  due  from banks, interest-bearing demand deposits in other
banks  and  federal  funds  sold  to  be  cash  equivalents.  The  following are
supplemental  disclosures  for the consolidated statements of cash flows for the
years  ended  December  31,  2001  and  2000:


<TABLE>
<CAPTION>


                                                (Dollars in thousands)


<S>                                                    <C>     <C>
                                                          2001    2000
                                                        ------  ------

Cash paid during the year for interest . .              $6,658  $5,690
Cash paid during the year for income taxes                 332     363
</TABLE>


INVESTMENT  SECURITIES
All  investment  and  mortgage-backed  securities  are  classified  as
available-for-sale.  Mortgage-backed  securities  represent  participating
interests  in pools of long-term first mortgage loans originated and serviced by
issuers of the securities.  Unrealized holding gains and losses, net of deferred
tax, on available-for-sale securities are reported as a net amount in a separate
component  of  equity  until  realized.  Gains  and  losses  on  the  sale  of
available-for-sale  securities  are determined using the specific-identification
method.  The  amortization  of  premiums  and  the  accretion  of  discounts are
recognized  in  interest  income using methods approximating the interest method
over the period to maturity.  No investment securities are considered derivative
securities.

Declines  in  the  fair value of individual securities below their cost that are
other  than  temporary  result  in write-downs of individual securities to their
value.  The  related  write-downs  are  included in earnings as realized losses.

LOANS
Loans  are  stated  at  unpaid  principal  balances, less the allowance for loan
losses,  net  deferred  loan  fees  and  loans-in-process.  Interest  income  is
recognized  on  an  accrual  basis.  Loans  are placed on nonaccrual status when
principal  or  interest  is delinquent for 90 days or more.  Any unpaid interest
previously  accrued  on those loans is reversed from income.  Interest income on
nonaccrual loans is recognized only to the extent of interest payments received.

Effective  January  1,  1995,  the  corporation  adopted  Statement of Financial
Accounting  Standards  No. 114, Accounting by Creditors for Impairment of a Loan
and Statement of Financial Accounting Standards No. 118, Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosures ("SFAS No. 114 and
118").  Under  the  corporation's  credit policies and practices, all loans with
specific  reserves  meet the definition of impaired loans under SFAS No. 114 and
118.  Loan  impairment is measured based on the present value of expected future
cash  flows  discounted at the loan's effective interest rate or, as a practical
expedient,  at  the observable market price of the loan or the fair value of the
collateral  if  the  loan is collateral dependent.  The adoption of SFAS No. 114
and  118  did not have a material effect on the corporation's financial position
or  results  of  operations.

Loan origination fees, as well as certain direct origination costs, are deferred
and  amortized  as  a yield adjustment over the contractual lives of the related
loans  using  the  interest  method.  Amortization  of  deferred  loan  fees  is
discontinued  when  a  loan  is  placed  on  nonaccrual  status.

ALLOWANCE  FOR  LOAN  LOSSES
The  allowance  for  loan losses is maintained at a level which, in management's
judgment,  is  adequate  to absorb credit losses inherent in the loan portfolio.
The  amount  of  the  allowance  is  based  on  management's  evaluation  of the
collectibility  of  the  loan  portfolio, including the nature of the portfolio,
credit  concentrations,  trends in historical loss experience, specific impaired
loans,  and  economic conditions.  The allowance is increased by a provision for
loan  losses,  which  is  charged to expense, and reduced by charge-offs, net of
recoveries.

PROPERTIES  AND  EQUIPMENT
Properties  and  equipment  are  stated  at  cost less accumulated depreciation.
Depreciation  of  property  and  equipment  is  computed  principally  on  the
straight-line  method over their estimated useful lives.  The estimated lives of
buildings  and  improvements ranged from 10 to 50 years.  The estimated lives of
equipment  ranged  from  5  to  25  years.

REAL  ESTATE  OWNED
Real  estate owned is stated at fair value less estimated costs to sell.  When a
property is acquired, the excess of the recorded investment in the property over
fair  value,  if  any,  is charged to the allowance for loan losses.  Subsequent
declines  in the estimated fair value, net operating results and gains or losses
on  disposition  of  the  property  are  included  in  other  expenses.

GOODWILL
Goodwill  represents  the  excess  of the cost of the business acquired over the
fair  value  of the net assets at the date of acquisition and is being amortized
on the straight-line basis over 15 years. No amortization expense was charged to
operations  for  2000.

COVENANT  NOT  TO  COMPETE
The  cost of the Covenant not to Compete is being amortized over the term of the
contract,  which  is  12    years.

STOCK OPTIONS
The  corporation  has  elected  to  continue  accounting  for  employee  stock
compensation  plans  under APB Opinion 25 and related interpretations.  However,
the  Corporation  discloses in the Notes to Consolidated Financial Statements in
accordance  with  SFAS No. 123, "Accounting for Stock-Based Compensation".  SFAS
123  encourages,  but  does  not  require,  companies  to recognize compensation
expense  for  grants of stock, stock options and the equity instruments based on
the  fair  value  of  those  instruments.

DERIVATIVE FINANCIAL INSTRUMENTS
The  corporation  has  no  derivative  financial  instruments.

INCOME  TAXES
The  corporation,  bank  and service corporation each filed separate tax returns
during  1998.  Beginning  with the tax year ended December 31, 1999, tax returns
were  filed  on  a  consolidated  basis  for the respective calendar years.  The
effects  of  current  or deferred taxes are recognized as a current and deferred
tax  liability  or  asset  based  on  current tax laws.  Accordingly, income tax
expense  in the consolidated statements of income includes charges or credits to
properly  reflect  the  current  and  deferred  tax  asset  or  liability.

EARNINGS  PER  SHARE
The  weighted-average  number  of  shares  of  common  stock used in calculating
earnings  per  share  was  determined by reducing outstanding shares by treasury
shares, unallocated ESOP shares and unvested Recognition and Retention Plan (the
"RRP")  shares.  The  effect  of  stock  options  on  weighted-average  shares
outstanding is calculated using the Treasury Stock method.  Fully diluted shares
outstanding  include the maximum dilutive effect of stock issuable upon exercise
of  common  stock  options  and unallocated ESOP and RRP shares of common stock.


CAPITALIZED INTEREST
The  corporation  follows  the policy of capitalizing interest as a component of
the  cost of premises and equipment constructed for its own use.  In 2000, total
interest  incurred  was  $55,000,  of  which  none  was  charged  to operations.

RECLASSIFICATIONS
Certain  amounts  have  been reclassified to conform with the 2001 presentation.


NOTE  B  -  BUSINESS  CONVERSION

In  September  1996,  the bank's Board of Directors adopted a Plan of Conversion
(the  "conversion")  whereby  the  bank  would  convert  to  the  stock  form of
ownership,  followed  by the issuance of all the bank's outstanding common stock
to  a newly formed holding company, Home City Financial Corporation. On December
30,  1996, the bank completed its conversion to the stock form of ownership, and
issued  all  of  the  bank's  outstanding  common  shares to the corporation. In
connection  with  the conversion, the corporation sold 952,200 shares at a price
of  $10.00  per  share  which, after consideration of offering expenses totaling
approximately  $437,000, and shares purchased by employee benefit plans totaling
$762,000,  resulted  in  net  cash  proceeds  of  approximately  $8.3  million.

At  the date of the conversion, the bank established a liquidation account in an
amount  equal  to  retained  earnings reflected in the balance sheet used in the
conversion  offering  circular.  The  liquidation  account is maintained for the
benefit  of  eligible savings account holders who maintained deposit accounts in
the  bank  after  conversion.


<PAGE>

NOTE  C  -  INVESTMENT  AND  MORTGAGE-BACKED  SECURITIES

The  amortized  cost of securities available-for-sale and their approximate fair
values  are  as  follows:


<TABLE>
<CAPTION>


                                                                        (Dollars in thousands)


                                                   At December 31, 2001                                  At December 31, 2000
                                                  ---------------------                                  ---------------------
<S>                                <C>                    <C>                    <C>           <C>      <C>         <C>
                                                           Gross                  Gross                              Gross
                                    amortized              unrealized             unrealized    Fair     Amortized   unrealized
                                    cost                   gains                  losses        value    cost        gains
Investment securities
----------------------            ------------            -----------            -----------   ------   ----------   -----------

Federal
  agencies . . . . . . . . . . . .  $  360                  $  0                  $  (4)        $  356   $  1,292    $  5

State &
  Municipal
  securities. . . . . . . . .        1,269                     1                    (33)         1,237        997      12

Equity securities. . . . . . .       2,148                   292                    (25)         2,415        647     674
                                    -------                 -----                  ------        ------      -----    -----

Total investment
        securities                   3,777                   293                    (62)         4,008      2,936     691

Mortgage-backed securities
----------------------------------

GNMA, FHLMC
 & FNMA
 certificates. . . . .               9,664                    30                    (91)         9,603        462       2
                                   --------                -------                 ------       -------      -----     ----

Total securities . . . .         $  13,441                $  323                $  (153)     $  13,611   $  3,398   $ 693
                                 =========                =======               ========     =========   ========== =======




<S>                                 <C>           <C>
                                    Gross
                                    unrealized    Fair
                                    losses        value
Investment securities
---------------------              -----------   -------

Federal
  agencies . . . . . . . . . . . .  $   (2)       $1,295

State &
 municipal
 securities. . . . . . . . . . . .      (3)        1,006

Equity securities. . . . . . . . .      (3)        1,318
                                    -------       ------

Total investment
    securities                          (8)        3,619

Mortgage-backed securities
----------------------------------

GNMA, FHLMC
 & FNMA
 certificates. . . . . . . . . . .      (4)          460
                                    ------------  ------

Total securities . . . . . . . . .  $  (12)       $4,079
                                    =======       ======
</TABLE>

The  amortized  cost  and  estimated  fair  value  of  investment  securities
available-for-sale  at  December  31,  2001,  by  contractual  maturity,  are as
follows:


<TABLE>
<CAPTION>




                                                           (Dollars in thousands)
<S>                                <C>                      <C>               <C>         <C>
                                           Investment                          Mortgage-backed
                                           securities                          securities
                                         --------------                         ---------------
                                    Amortized                Fair              Amortized   Fair
                                    cost                     value             cost        value
                                    ----------             ---------           ----------  ------

One year or less . . . . . . . . .  $     25                $   25             $     0     $    0
After one year through five years.       200                   200                   0          0
After five years through ten years        66                    65                 736        740
After ten years. . . . . . . . . .     1,338                 1,302               8,928      8,863
Equity securities. . . . . . . . .     2,148                 2,416                   0          0
                                    --------                 ------            ----------  ------

Total. . . . . . . . . . . . . . .  $  3,777                $4,008             $ 9,664     $9,603
                                    ========                =======            =======     ======
</TABLE>


Expected  maturities  will  differ from contractual maturities because borrowers
may  have  the  right  to  call or prepay obligations without call or prepayment
penalties.

Investment  securities  with  a  carrying  value of approximately $1,550,000 and
$314,000  were  pledged  at  December 31, 2001 and 2000, respectively, to secure
certain  deposits.

During  2001,  the  corporation  sold  securities  available-for-sale  for total
proceeds  of  approximately  $5,341,000  resulting in $429,000 in gross realized
gains  and  $3,000  in gross realized losses.  During 2000, the corporation sold
securities  available-for-sale  for  total  proceeds of approximately $1,450,000
resulting  in  $71,000  in  gross  realized  gains  and $7,000 in gross realized
losses.



NOTE  D  -  LOANS

Loans  at  December  31,  2001  and  2000,  are  summarized  as  follows:


<TABLE>
<CAPTION>


                                                            (Dollars in thousands)

<S>                                                          <C>        <C>
                                                                  2001       2000
                                                              ---------  ---------
Loans secured by real estate:
 One- to four-family residential properties. . . . . . . . .  $ 58,021   $ 58,525
 Multifamily (five or more) residential properties . . . . .     6,747      4,197
 Nonresidential properties . . . . . . . . . . . . . . . . .    29,754     25,941
 Land. . . . . . . . . . . . . . . . . . . . . . . . . . . .       720        868
 Construction. . . . . . . . . . . . . . . . . . . . . . . .     1,477      4,692
Consumer . . . . . . . . . . . . . . . . . . . . . . . . . .     7,271      6,888
Commercial . . . . . . . . . . . . . . . . . . . . . . . . .    11,900     10,366
                                                              ---------  ---------

Total. . . . . . . . . . . . . . . . . . . . . . . . . . . .   115,890    111,477
Allowance for loan losses. . . . . . . . . . . . . . . . . .      (517)      (532)
                                                              ---------  ---------

Net loans. . . . . . . . . . . . . . . . . . . . . . . . . .  $115,373   $110,945
                                                              =========  =========

An analysis of the allowance for loan losses is as follows:
                                                             (Dollars in thousands)

                                                                  2001       2000
                                                              ---------  ---------

Balance, beginning of year . . . . . . . . . . . . . . . . .  $    532   $    491

Provision for loan losses. . . . . . . . . . . . . . . . . .       140        110
Loans charged off. . . . . . . . . . . . . . . . . . . . . .      (180)       (69)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . .        25          0
                                                              ---------  ---------

Balance, end of year . . . . . . . . . . . . . . . . . . . .  $    517   $    532
                                                              =========  =========
</TABLE>


At  December  31, 2001 and 2000, the bank had no impaired loans as determined in
accordance  with  SFAS  No. 114 and No. 118.  The average recorded investment in
impaired  loans  amounted  to  approximately   $0  and  $0  for  the years ended
December  31,  2001 and 2000, respectively. No interest income on impaired loans
was  recognized for cash payments received for the years ended December 31, 2001
and  2000.  At  December  31,  2001  and  2000, the bank had nonaccrual loans of
approximately  $867,000  and $72,000, respectively, for which impairment had not
been  recognized.

<PAGE>

The  bank  has  no  commitments  to  loan  additional  funds to the borrowers of
impaired  or  nonaccrual  loans.

At December 31, 2001 and 2000, the bank serviced loans for others with principal
balances  of  $2,336,000  and  $1,990,000,  respectively.

In the ordinary course of business, the bank has and expects to continue to have
transactions,  including borrowings, with its officers, directors, shareholders,
and  their  affiliates.  In the opinion of management, such transactions were on
substantially  the same terms, including interest rates and collateral, as those
prevailing at the time of comparable transactions with other persons and did not
involve  more  than  a  normal  risk  of  collectibility  or  present  any other
unfavorable features to the bank.  All loans to such borrowers are summarized as
follows:


<TABLE>
<CAPTION>




                                     (Dollars in thousands)
<S>                                              <C>

Balance, December 31, 2000.                       $  963

New loans . . . . . . . . .                        1,433
Payments. . . . . . . . . .                         (456)
                                                  -------

Balance, December 31, 2001.                       $1,940
                                                  =======
</TABLE>


NOTE  E  -  PROPERTIES  AND  EQUIPMENT

A  summary  of  properties  and equipment at December 31, 2001 and 2000 follows:


<TABLE>
<CAPTION>




                                      (Dollars in thousands)
<S>                         <C>                      <C>

                                              2001     2000
                                             -------  -------

Land . . . . . . . . . . .                 $   830   $  114
Buildings and improvements                   2,608      442
Equipment. . . . . . . . .                   1,597      592
Construction in process. .                       0    1,709
                                             -------  -------

                                             5,035    2,857
Accumulated depreciation .                    (735)    (576)
                                             -------- -------

Total. . . . . . . . . . .                $  4,300   $2,281
                                            =======  =======
</TABLE>


The  corporation leases the premises of Home City Insurance Agency, Inc. from an
affiliate.  The  lease  is  classified  as  an  operating lease and provides for
minimum  annual  rentals of $22,000 through 2002.  The lease is renewable for up
to  three  consecutive  one-year  terms.





NOTE  F  -  CASH  SURRENDER  VALUE  OF  LIFE  INSURANCE

In  September  1995,  the  bank purchased life insurance policies on each of its
non-employee  directors.  The  bank  is  the  beneficiary  of such policies.  At
December  31,  2001  and  2000,  there  were  no  notes payable to the insurance
company.



NOTE  G  -  DEPOSITS

Deposit  account  balances  at  December  31,  2001  and 2000, are summarized as
follows:


<TABLE>
<CAPTION>




                                                (Dollars in thousands)
<S>                                         <C>          <C>      <C>      <C>
                                                  2001                   2000
                                                 ------                -------
                                              Amount.     Percent  Amount   Percent
-----------------------------                 -------     -------  -------  -------
Noninterest-bearing accounts.                $   3,230     3.4%  $ 2,102    2.8%
NOW and money market accounts                    2,704     2.8     1,660    2.2
Savings accounts. . . . . . .                   17,304    17.9    12,192   16.2
Certificates of deposit . . .                   73,165    75.9    59,123   78.8
                                             ---------   ------  -------- ------

Totals. . . . . . . . . . . .  .             $  96,403   100.0%  $ 75,077  100.0%
                                             ==========  ======= ========  ======
</TABLE>


The  aggregate  amount  of  jumbo  certificates  of deposit, each with a minimum
denomination  of  $100,000,  was  approximately  $18,805,000  and $15,444,000 at
December  31,  2001  and 2000, respectively.  Deposits in excess of $100,000 are
not  insured  by  the  FDIC.

At December 31, 2001, the scheduled maturities of certificates of deposit are as
follows:


<TABLE>
<CAPTION>



                 (Dollars in thousands)
<S>                     <C>

 2002. . . . . .  . . .  $45,890
 2003. . . . . . .  . .   23,075
 2004. . . . . . .  . .    3,410
 2005. . . . . . . .  .      180
 2006 and thereafter  .      610
                         -------

 Total . . . . . . . .   $73,165
                         =======
</TABLE>


The  bank  held related party deposits of approximately $312,000 and $847,000 at
December  31,  2001  and  2000,  respectively.



<PAGE>
NOTE  H  -  FEDERAL  HOME  LOAN  BANK  ("FHLB")  ADVANCES

Federal  Home  Loan Bank advances are comprised of the following at December 31:


<TABLE>
<CAPTION>


                                                                (Dollars in thousands)

                                                          Current
                                                          interest        BALANCE
                                                          rate        2001       2000
                                                          ---------  ------  ---------
<S>                                                      <C>         <C>        <C>
Variable-rate advances, with monthly interest payments:
 Advance due in 2001. . . . . . . . . . . . . . . . . .               $     0    $  4,700
 Advance due in 2002. . . . . . . . . . . . . . . . . .   2.20%           728         728
 Advance due in 2003. . . . . . . . . . . . . . . . . .                     0       1,500
 Advance due in 2008. . . . . . . . . . . . . . . . . .                     0       4,000
 Advance due in 2011. . . . . . . . . . . . . . . . . .   5.08%        11,000           0

Fixed-rate advances, with monthly principal
and interest payments:
 Advance due in 2001. . . . . . . . . . . . . . . . . .                      0         61
 Advance due in 2003. . . . . . . . . . . . . . . . . .   6.44%            636        692
 Advance due in 2004. . . . . . . . . . . . . . . . .     8.35%            180        240
 Advance due in 2005. . . . . . . . . . . . . . . . . .   8.32%            396        489
 Advance due in 2006. . . . . . . . . . . . . . . . . .   6.55%          1,531      1,674
 Advance due in 2007. . . . . . . . . . . . . . . . .     6.57%          1,825      1,825
 Advance due in 2008. . . . . . . . . . . . . . . . . .   5.00%          1,000      1,000
 Advance due in 2009. . . . . . . . . . . . . . . . . .   5.74%          9,500      9,500
 Advance due in 2010. . . . . . . . . . . . . . . . . .   6.01%          8,519      8,542
                                                                        ------    -------

Total Federal Home Loan Bank advances . . . . . . . . .   5.64%       $ 35,315    $34,951
                                                                      ========    =======
</TABLE>

FHLB  advances  are collateralized by all shares of FHLB stock owned by the bank
(totaling  $2,079,000)  and  by  a portion of the bank's mortgage loan portfolio
(totaling  approximately  $44,870,000).  As  of  December 31, 2001, the bank had
approximately  an  additional $13,151,000 of qualified mortgage loans that could
be  used to collateralize additional borrowings.  Based upon the bank's eligible
mortgage  collateral,  total  FHLB  advances  are  limited  to  approximately
$44,467,000.

The  aggregate  minimum  future  annual  principal payments on FHLB advances are
$1,116,000  in  2002,  $914,000 in 2003, $349,000 in 2004, $327,000 in 2005, and
$32,609,000  after  2005.



<PAGE>
NOTE  I  -  NOTE  PAYABLE

The  following  is  a  summary  of long-term debt at December 31, 2001 and 2000.


<TABLE>
<CAPTION>


                                                          (Dollars in thousands)

                                                            2001            2000
                                                            ------         ------
<S>                                                        <C>             <C>
Note payable to affiliate, due June 1, 2012,
   with monthly interest payments at 6.40%
   payable through June 1, 2003, plus ten annual
   installment payments of $39,000 beginning
   June 1, 2003 . . . . . . . . . . . . . . . . .           $ 307           $ 313
                                                            ======          =====
</TABLE>


NOTE  J  -  FEDERAL  INCOME  TAXES

The  components of income tax expense (benefit) for the years ended December 31,
2001,  2000  and  1999  are  as  follows:

<TABLE>
<CAPTION>

                                         (Dollars in thousands)

                                          2001   2000    1999
                                         -----   -----   ----
<S>                                      <C>    <C>     <C>
Federal income tax expense
 Current tax expense. . . . . .           $ 288  $ 275   $ 454
 Deferred tax expense (benefit)            (123)    86     (42)
                                          ------  -----  ------

 Total. . . . . . . . . . . . .           $ 165  $ 361   $ 412
                                          ======  =====  ======
</TABLE>


A  reconciliation  of  the  federal  statutory  tax  rate  to  the corporation's
effective  tax rate for the years ended December 31, 2001, 2000 and 1999, are as
follows:


<TABLE>
<CAPTION>


                                                      2001     2000     1999
                                                      ----     ----     ----


<S>                                                  <C>      <C>      <C>
Federal income tax statutory rate. . . . . . . . . .  34.0%    34.0%    34.0%

 Tax-exempt income, less disallowed interest expense  (9.0)    (3.8)    (2.5)
 Other, net. . . . . . . . . . . . . . . . . . . . .  (7.6)    (3.5)    (1.8)
                                                      -----    -----    -----

Actual effective income tax rate . . . . . . . . . .  17.4%    26.7%    29.7%
                                                      =====    =====    =====
</TABLE>


The  tax effect of temporary differences which comprise the significant portions
of  the  corporation's  deferred  tax  assets and deferred tax liabilities as of
December  31,  2001  and  2000  are  as  follows:
<TABLE>
<CAPTION>




                                                                 (Dollars in thousands)
                                                                 2001             2000
                                                                ------           -----
<S>                                                             <C>             <C>
Deferred tax assets
 Nonaccrual loan interest. . . . . . . . . . . . . . .           $   15          $   1
 Allowance for loan losses . . . . . . . . . . . . . .              201            158
 Employee benefits . . . . . . . . . . . . . . . . . .               90             96
 Other . . . . . . . . . . . . . . . . . . . . . . . .               19              0
                                                                 -------         ------

                                                                    325            255
                                                                  ------         ------

Deferred tax liabilities
 Accumulated depreciation. . . . . . . . . . . . . . .              (55)           (41)
 Net deferred loan costs . . . . . . . . . . . . . . .              (43)          (109)
 Net unrealized gain on securities available-for-sale.              (58)          (232)
                                                                   -----          -----

                                                                   (156)          (382)
                                                                   -----         ------

Total net deferred tax assets (liabilities). . . . . .           $   169         $(127)
                                                                 =======         ======
</TABLE>


Included  in  retained  earnings at December 31, 2001 and 2000, is approximately
$1,084,000  in  bad  debt  reserves  for  which  no  deferred federal income tax
liability  has  been recorded.  These amounts represent allocations of income to
bad  debt  deductions  for tax purposes before 1988. Reduction of these reserves
for  purposes  other  than  tax  bad  debt  losses  or  adjustments arising from
carryback  of  net  operating losses would create income for tax purposes, which
would  be subject to the then-current corporate income tax rate.  The unrecorded
deferred  liability  on  these  amounts  was  approximately  $368,000.



NOTE  K  -  DIVIDEND  RESTRICTION

The  bank,  as  a  federally  chartered savings bank, is subject to the dividend
restrictions  set  forth by the Office of Thrift Supervision (the "OTS").  Under
regulations of the OTS applicable to converted savings associations, the bank is
not  permitted  to  pay  a  cash dividend on its capital stock if its regulatory
capital would, as a result of the payment of such dividend, be reduced below the
amount required for the Liquidation Account or the applicable regulatory capital
requirements  prescribed  by  the  OTS.

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


NOTE  L  -  EARNINGS  PER  SHARE

Earnings per share ("EPS") is computed in accordance with SFAS No. 128, Earnings
per  share,  which  was  adopted  by  the  corporation  as of December 31, 1997.
Diluted  EPS  is  computed  using  the  treasury  stock method, giving effect to
potential  additional  common  shares  that  were outstanding during the period.
Potential  dilutive  common shares include shares held by the corporation's ESOP
that  are  committed  for  release, shares awarded but not disbributed under the
corporation's  RRP,  and  stock  options  granted  under  the Stock Option Plan.
Following  is  a summary of the effect of diluted securities in weighted-average
number  of  shares  (denominator)  for  the  basic and diluted EPS calculations.
There  are  no  adjustments  to  net  income.


<TABLE>
<CAPTION>




                                                       2001       2000
                                                      -------     -------
<S>                                                   <C>        <C>
Weighted-average common shares outstanding - basic .   745,990    751,216

Effect of dilutive securities on number of shares

RRP shares . . . . . . . . . . . . . . . . . . . . .     9,459     15,294
ESOP shares. . . . . . . . . . . . . . . . . . . .  .   45,704     53,322
Stock options. . . . . . . . . . . . . . . . . . .  .    4,636          0
                                                        -------   -------

Total dilutive securities. . . . . . . . . . . .  . .   59,799     68,616
                                                       -------    -------

Weighted-average common shares outstanding - diluted   805,789    819,832
                                                       =======    =======
</TABLE>


NOTE  M  -  EMPLOYEE  BENEFITS

401(K)  PROFIT  SHARING  PLAN
In  1994,  the bank initiated a 401(k) Profit Sharing Plan.  The plan covers all
of  the  bank's  employees  who  are over 21 years old with at least one year of
service.  Participants  may make salary savings contributions up to 15% of their
compensation,  75%  of  which  will  be  matched  by  the bank, up to 6% of each
employee's salary.  Profit sharing expense for the years ended December 31, 2001
and  2000,  was  $34,000  and  $28,000,  respectively.

PENSION  PLAN
The  bank  withdrew  its  participation in the Financial Institutions Retirement
Fund  (the  'Fund")  effective  January  1,  2001, at which time it enhanced the
above-mentioned  401(k)  Profit  Sharing  Plan  from a 50% to a 75% match by the
bank.  The  Fund  covered all of the bank's employees who were over 21 years old
with  at  least  one  year of service.  Therefore, pension expense for the years
ended  December  31,  2001  and  2000,  was  $0  and  $0,  respectively.

INCENTIVE  COMPENSATION  PLAN
The  bank  has  an incentive compensation plan that covers all employees who are
normally  scheduled  to  work  1,040  hours  or  more  per  year.  The  bank's
contributions  pursuant to the plan are based on a formula contained in the plan
which incorporates factors relating to the bank's performance and are contingent
upon  the  bank's  attainment  of  certain levels of earnings, as defined in the
plan.  Incentive compensation plan expense for the years ended December 31, 2001
and  2000,  was  $46,000  and  $59,000,  respectively.

NOTE  N  -  STOCK  REPURCHASE  PROGRAM

During 2001, the corporation received regulatory approval to repurchase up to 5%
of  its  outstanding  shares.  During  the  year ended December 31, 2001, 29,600
common  shares were repurchased at an average price of $12.82 per share.  During
2000,  the  corporation previously received regulatory approval to repurchase 5%
of  its  outstanding  shares.  During  the  year ended December 31, 2000, 29,390
common  shares  were  repurchased  at  an  average  price  of  $12.60 per share.

Repurchased  shares are treated as treasury shares and are available for general
corporate  purposes,  including  issuance  in  connection  with  stock-based
compensation  plans.

NOTE  O  -  STOCK-BASED  COMPENSATION  PLANS

EMPLOYEE  STOCK  OWNERSHIP  PLAN  ("ESOP")
As  part of the conversion transaction (see NOTE B), an ESOP was established for
the  benefit  of employees of the corporation and the bank, age 21 or older, who
have  completed  at  least  one  year  of  full-time service.  The ESOP borrowed
$762,000  from  the  corporation  and  used those funds to acquire 76,176 common
shares  of  the  corporation  at  $10  per  share.

Shares  issued to the ESOP are allocated to ESOP participants based on principal
and  interest  payments  made  by  the ESOP on the loan.  The loan is secured by
shares  purchased  with  the  loan  proceeds and will be repaid by the ESOP with
funds  from  the  corporation's  discretionary  contributions  to  the  ESOP and
earnings  on  ESOP  assets.  Principal  payments  are scheduled to occur in even
annual  amounts  over  a  ten-year  period.  However, in the event contributions
exceed the minimum debt service requirements, additional principal payments will
be  made.  ESOP  compensation  expense for the years ended December 31, 2001 and
2000,  was  $83,000  and  $99,000,  respectively.  Shares  held  by  the ESOP at
December  31,  2001  and  2000,  are  as  follows:


<TABLE>
<CAPTION>


                                   2001       2000
                                  ---------  ---------
<S>                               <C>        <C>
Allocated shares . .  . . . . .    37,914     26,634
Shares allocated . . . . .. . .     9,449     11,280
Additional shares acquired. . .         0          0
Shares distributed . . . .. . .         0          0
                                 ---------  ---------

 Total allocated shares. .. . .    47,363     37,914
                                 ---------  ---------

Unallocated shares . . . .. . .    54,857     66,137
Shares released for allocation     (9,449)   (11,280)
Additional shares acquired . .          0          0
                                 ---------  ---------

 Total unallocated shares. . .     45,408     54,857
                                 ---------  ---------

 Total ESOP shares . . . . . .     92,771     92,771
                                 =========  =========

Fair value of unallocated shares $544,000   $514,000
                                 =========  =========
</TABLE>



RECOGNITION  AND  RETENTION  PLAN  ("RRP")
A  recognition and retention plan was authorized at the October 20, 1997, Annual
Meeting  of Shareholders.  The RRP is a restricted stock award plan.  The RRP is
administered  by  a  committee  of  directors of the corporation.  The committee
selects recipients and terms of award pursuant to the plan.  The total number of
shares  made  available  under  the  plan  was  38,088.

RRP  awards  vest  in  five equal annual installments, subject to the continuous
employment  of  the recipients as defined under such plans. Compensation expense
for the RRP is based upon market price at the date of grant and is recognized on
a  pro  rata  basis  over  the vesting period of the awards. RRP expense for the
years  ended December 31, 2001 and 2000, was $81,000 and $110,000, respectively.
The  unamortized  unearned compensation value of the RRP is shown as a reduction
to  shareholders'  equity  in  the  accompanying  consolidated  balance  sheets.

STOCK  OPTION  PLAN  ("SOP")
A  stock  option  plan was authorized at the October 20, 1997, Annual Meeting of
Shareholders.  The  SOP  is  administered  by  a  committee  of directors of the
corporation.  The  committee  selects recipients and terms of awards pursuant to
the plan.  The maximum number of common shares which may be issued under the SOP
is 131,422 shares with a maximum term of ten years for each option from the date
of  grant.  The  initial  awards  were  granted on October 20, 1997, at the fair
value  of  the  common stock on that date ($16.125).  Due to the distribution of
capital  in  1998,  the  number  of  shares granted was increased from 71,415 to
98,565,  and  the  exercise  price  was  decreased  from $16.125 to $11.70.  The
initial awards vest in equal installments over a five-year period from the grant
date  and  expire  during  October  2007.  Unvested  options  become immediately
exercisable  in  the  event  of  death  or  disability.

Option  activity  under  the  SOP  is  as  follows:

<TABLE>
<CAPTION>


<S>                            <C>        <C>
                                           Weighted-
                                           average
                                Number of  exercise
                                shares     price
                               ---------  ---------

Outstanding December 31, 1999   98,565    $   11.70
 Granted. . . . . . . . . . .        0         0.00
 Exercised. . . . . . . . . .        0         0.00
 Canceled . . . . . . . . . .        0         0.00
                               -------     --------
Outstanding December 31, 2000   98,565        11.70
 Granted. . . . . . . . . . .        0         0.00
 Exercised. . . . . . . . . .        0         0.00
 Canceled . . . . . . . . . .        0         0.00
                               -------     --------
Outstanding December 31, 2001   98,565    $   11.70
                             =========    =========
</TABLE>



At  December  31, 2001, 32,857 shares were available for future grants under the
SOP.

Additional information regarding options outstanding as of December 31, 2001, is
as  follows:
<TABLE>
<CAPTION>




<S>        <C>               <C>          <C>
                                           Weighted-average
Exercise   Options           Options       remaining
Price      outstanding       exercisable   contractual life
---------  ----------------  -----------  ---------------
11.70      98,565            80,159        5.8 years
</TABLE>


Statement  of Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation  ("SFAS  No.  123")  which  became effective for 1996, requires pro
forma  disclosures  for  companies  that  do not adopt its fair value accounting
method  for  stock-based  employee compensation.  Accordingly, the following pro
forma  information presents net income and earnings per share had the standard's
fair value method been used to measure compensation cost for the SOP.  In future
years,  the  pro  forma  effect  of  not  applying  this standard is expected to
increase  as  additional  options  are  granted.

The  corporation's calculations were made using the Black-Scholes option pricing
model  with  the  following  weighted-average  assumptions:


<TABLE>
<CAPTION>




<S>                       <C>
                    OCTOBER 1997 GRANT
Risk-free interest rate.   6.23%
Expected dividend. . . .   2.54%
Expected lives, in years     10
Expected volatility. . .  23.96%
</TABLE>





The  weighted-average  grant-date  fair  value of options granted during October
1997  was  $3.88.  The corporation's calculations are based on a multiple option
valuation  approach  and  forfeitures  are  recognized  as  they  occur.  Had
compensation  cost  for  these  awards  been  determined  with SFAS No. 123, the
corporation's  net  income and earnings per share would have been reduced to the
following  pro  forma  amounts:
<TABLE>
<CAPTION>




                                            (Dollars in thousands,
                                            except per share data)

                                                   Year ended December 31,
                                                -------------------------
<S>                                                  <C>       <C>
Net income: . . . . . . . . . . . .                       2001   2000
                                                         -----  -----

 As reported. . . . . . . . . . . .                   $    782  $ 994
 Pro forma. . . . . . . . . . . . .                   $    782  $ 994
Earnings per common share - basic
 As reported. . . . . . . . . . . .                   $   1.05  $1.32
 Pro forma. . . . . . . . . . . . .                   $   1.05  $1.32
Earnings per common share - diluted
 As reported. . . . . . . . . . . .                   $   0.97  $1.21
 Pro forma. . . . . . . . . . . . .                   $   0.97  $1.21
</TABLE>


NOTE  P  -  REGULATORY  MATTERS

The  bank  is subject to various regulatory capital requirements administered by
its  primary  federal  regulator,  the  OTS.  Failure  to  meet  minimum capital
requirements  can  initiate  certain  mandatory,  and  possible  additional
discretionary  actions  by  regulators  that, if undertaken, could have a direct
material  effect  on  the bank and the consolidated financial statements.  Under
the  regulatory  capital  adequacy  guidelines  and the regulatory framework for
prompt  corrective  action,  the bank must meet specific capital guidelines that
involve  quantitative  measures  of  the bank's assets, liabilities, and certain
off-balance-sheet  items  as  calculated  under regulatory accounting practices.
The bank's capital amounts and classification under the prompt corrective action
guidelines  are  also  subject to qualitative judgements by the regulators about
components,  risk-weightings,  and  other  factors.

The  capital  adequacy  regulations of the OTS require that savings associations
maintain  tangible capital equal to at least 1.5% of adjusted total assets, core
capital of at least 4.0% of adjusted total assets (except for those associations
with  the  highest  examination  rating  and  acceptable  levels  of  risk), and
risk-based  capital  of  at least 8.0% of risk-weighted assets.  At December 31,
2001,  the  bank's  capital  exceeded  all  of  such  requirements.

As of December 31, 2001, the most recent notification from the OTS, the bank was
categorized  as  "Well  Capitalized"  under  the regulatory framework for prompt
corrective action.  To be categorized as adequately capitalized under the prompt
corrective  action regulations, the bank must maintain minimum total risk-based,
Tier  I  risk-based,  and  Tier  I leverage ratios as set forth in the following
tables.  There  are  no  conditions or events since the most recent notification
that  management  believes  have  changed  the  bank's  prompt corrective action
category.

The  following  reconciliation  compares  the  bank's  capital under GAAP to its
regulatory  capital,  at  December  31,  2001:
<TABLE>
<CAPTION>



                                                                   (Dollars in thousands)
<S>                                                           <C>                     <C>
                                                               Risk-based              Tier I
                                                               capital                 capital
                                                               -----------            ---------

Equity per GAAP . . . . . . . . . . . . . . . . . . . . . . .  $   11,220              $ 11,220
Less unrealized gain on securities available-for-sale,
 net of applicable income taxes . . . . . . . . . . . . . . .        (112)                 (112)
Less equity investments . . . . . . . . . . . . . . . . . . .        (154)                    0
Plus allowance for loan losses. . . . . . . . . . . . . . . .         517                     0
Plus unrealized gains on equity securities available-for-sale         120                     0
                                                                ----------              --------

Regulatory capital. . . . . . . . . . . . . . . . . . . . . .  $   11,591              $ 11,108
                                                               ==========              =========
</TABLE>



The  bank's  actual  and  required  capital  amounts  and ratios are as follows:
<TABLE>
<CAPTION>

                                                                           (Dollars in thousands)
<S>                                  <C>              <C>                 <C>         <C>         <C>         <C>
                                                                                                     To be well
                                                                            Minimum required         capitalized under
                                                                            for capital              Prompt Corrective
                                              Actual                        adequacy purposes        action provisions
                                             -------                        ------------------       -----------------
                                      Amount            Ratio               Amount     Ratio        Amount      Ratio
                                     --------          ------              -------    -------       ------      ------

As of December 31, 2001:
 Total Risk-Based Capital
   (to Risk-Weighted Assets)          $  11,591        10.6%                $  8,751   8.0%        $ 10,938    10.0%
 Tier I Capital
   (to Risk-Weighted Assets)             11,108        10.2%                     N/A   N/A            6,563     6.0%
 Tier I Capital
   (to Total Assets) . . . .             11,108         7.7%                   5,784   4.0%           7,230     5.0%
 Tangible Capital
   (to Total Assets) . . . .             11,108         7.7%                   2,169   1.5%             N/A     N/A


As of December 31, 2000:
 Total Risk-Based Capital
   (to Risk-Weighted Assets)          $  11,759        12.9%               $   7,296   8.0%        $ 9,120     10.0%
 Tier I Capital
   (to Risk-Weighted Assets)             10,831        11.9%                     N/A   N/A           5,472      6.0%
 Tier I Capital
   (to Total Assets) . . . .             10,831         8.8%                   4,917   4.0%          6,146      5.0%
 Tangible Capital
   (to Total Assets) . . . .             10,831         8.8%                   1,844   1.5%            N/A       N/A
</TABLE>



NOTE  Q  -  FINANCIAL  INSTRUMENTS  WITH  OFF-BALANCE  SHEET  RISK

In  the  normal course of business, the bank has various outstanding commitments
and  contingent  liabilities,  such  as commitments to extend credit and standby
letters  of  credit,  which  are  not  included in the accompanying consolidated
financial  statements.  The  bank's  exposure  to  credit  loss  in the event of
nonperformance  by  the other party to the financial instruments for commitments
to extend credit and standby letters of credit is represented by the contractual
or notional amount of those instruments.  The bank uses the same credit policies
in  making  such commitments as it does for instruments that are included in the
consolidated  balance  sheet.

<PAGE>

The  bank  had  outstanding  commitments  to  originate  loans  as  follows:
<TABLE>
<CAPTION>




                                                     (Dollars in thousands)
<S>                      <C>        <C>             <C>            <C>          <C>      <C>

                                 At December 31, 2001                At December 31, 2000
                                -----------------------              --------------------

                         Fixed       Adjustable                      Fixed        Adjustable
                         rate        rate            Total           rate         rate      Total
                         -------  ---------------------  -------  -----------  ------    -------

Undisbursed balance
 of loans closed-
 mortgage loans . . . .  $  1,477    $     0         $ 1,477        $  1,315     $    0   $  1,315
First mortgage
 loans. . . . . . . . .     1,138         19           1,157           2,899         98      2,997
Consumer and
 other loans. . . . . .       546        803           1,349             125        873        998
Open-end consumer loans         0      3,240           3,240               0      2,429      2,429
Commercial loans. . . .       485      4,888           5,373             500      5,140      5,640
                         --------    -------         -------        --------     -------    ------

Total . . . . . . . . .  $  3,646  $   8,950         $12,596        $  4,839     $8,540    $13,379
                         ========  =========         =======        ========    ========   =======
</TABLE>


Commitments  to  extend  credit  are agreements to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have  fixed  expiration  dates  or  other termination clauses and may
require  payment of a fee.  Since many of the commitments are expected to expire
without  being  drawn  upon,  the  total  commitment  amounts do not necessarily
represent  future  cash  requirements.  The  bank  evaluates  each  customer's
creditworthiness  on  a  case-by-case  basis.  The amount and type of collateral
obtained,  if deemed necessary by the bank upon extension of credit, is based on
management's credit evaluation.  Collateral held varies but may include accounts
receivable,  inventory,  property and equipment, and income-producing commercial
properties.

The bank has not been required to perform on any financial guarantees during the
past  three  years.  The  bank  has  not  incurred any losses on its commitments
during  the  past  three  years.

The bank maintains deposit accounts at four banks.  Accounts at each institution
are  insured  by  the  Federal  Deposit Insurance Corporation (the "FDIC") up to
$100,000.  Cash  at  three  of  these  institutions  exceeded  federally insured
limits.  The  amount  in  excess  of  the  FDIC  limit  totaled  $1,632,000.



NOTE  R  -  FAIR  VALUES  OF  FINANCIAL  INSTRUMENTS

SFAS  No.  107,  Disclosures about Fair Value of Financial Instruments, requires
disclosure of fair value information about financial instruments, whether or not
recognized  in  the  statement  of  financial  condition.  In cases where quoted
market  prices  are  not  available,  fair  values  are based on estimates using
present value or other valuation techniques.  Those techniques are significantly
affected  by  the assumptions used, including the discount rate and estimates of
future  cash  flows.  In that regard, the derived fair value estimates cannot be
substantiated by comparison to independent markets and, in many cases, could not
be  realized  in immediate settlement of the instruments.  SFAS No. 107 excluded
certain  financial  instruments  from its disclosure requirements.  Accordingly,
the aggregate fair value amounts presented do not represent the underlying value
of  the  corporation.

The  following  methods  and assumptions were used by the bank in estimating its
fair  value  disclosures  for  financial  instruments:

Cash  and  cash  equivalents:  The carrying amounts reported in the statement of
financial condition for cash and cash equivalents approximate those assets' fair
values.

Time  deposits:  Fair  values for time deposits are estimated using a discounted
cash  flow  analysis  that  applies  interest  rates  currently being offered on
certificates  to  a  schedule  of aggregated contractual maturities on such time
deposits.

Investment  securities:  Fair  values  for  investment  securities  are based on
quoted  market  prices,  where  available.  If  quoted  market  prices  are  not
available,  fair  values  are  based  on  quoted  market  prices  of  comparable
instruments.

Loans:  For  adjustable-rate  loans  that  reprice  frequently  and  with  no
significant  change  in  credit risk, fair values are based on carrying amounts.
The  fair values for other loans (for example, fixed-rate commercial real estate
and  rental  property  mortgage  loans  and commercial and industrial loans) are
estimated using discounted cash flow analysis, based on interest rates currently
being  offered  for  loans  with  similar  terms  to borrowers of similar credit
quality.  Loan  fair value estimates include judgments regarding future expected
loss  experience  and  risk characteristics.  Fair values for impaired loans are
estimated  using  discounted cash flow analysis or underlying collateral values,
where  applicable.

Deposits:  The  fair  values  disclosed  for demand deposits are, by definition,
equal  to  the  amount  payable  on demand at the reporting date (that is, their
carrying  amounts).  The  carrying  amounts  of  variable-rate,  fixed-term
money-market accounts and certificates of deposit approximate their fair values.
Fair  values  for  fixed-rate  certificates  of  deposit  are  estimates using a
discounted  cash  flow calculation that applies interest rates currently offered
on  certificates  to  a  schedule  of  aggregated  contractual  expected monthly
maturities  on  time  deposits.

Accrued  interest:  The  carrying  amount  of accrued interest approximates fair
value.

Borrowed  funds:  The  fair  values  for  borrowed  funds  are estimated using a
discounted  cash  flow  calculation  that applies interest rates currently being
offered  on  like-type  borrowed  funds.

<PAGE>

The  estimated  fair  values  of  the corporation's financial instruments are as
follows:


<TABLE>
<CAPTION>


                                                 (Dollars in thousands)

                                                     DECEMBER 31,
                                   ------------------------------------------------
                                          2001                       2000
                                          -----                     ------
<S>                               <C>            <C>          <C>             <C>
                                   Carrying       Fair         Carrying        Fair
                                   amount         value        amount          value
                                   -----------    ------       ---------      ------
Financial assets:
 Cash and cash equivalents . . .  $  5,010        $  5,010     $  1,593        $  1,593
 Time deposits . . . . . . . . .        24              23           24              23
 Investment securities . . . . .     4,008           4,008        3,619           3,619
 Mortgage-backed securities. . .     9,603           9,603          460             460
 Loans . . . . . . . . . . . . .   115,373         116,218      110,945         112,074
 Stock in Federal Home Loan Bank     2,079           2,079        1,779           1,779
 Accrued interest receivable . .       671             671          670             670
 Life insurance. . . . . . . . .     2,695           2,695        1,073           1,073

Financial liabilities:
 Deposits. . . . . . . . . . . .    96,403          97,978       75,077          75,063
 Borrowed funds. . . . . . . . .    35,315          35,225       34,951          34,901
 Accrued interest payable.             234             234          227             227
</TABLE>

The  carrying  amounts  in the preceding table are included in the balance sheet
under  the  applicable captions.  The contract or notional amounts of the bank's
financial  instruments  with off-balance sheet risk are disclosed in NOTE Q.  No
derivatives  were held by the bank for trading purposes.  It is not practical to
estimate the value of Federal Home Loan Bank stock because it is not marketable.
The  carrying  amount of that investment is reported in the consolidated balance
sheet.


<PAGE>
NOTE  S  -  PARENT  COMPANY  FINANCIAL  INFORMATION

Condensed  financial  information  for  Home  City Financial Corporation (parent
company  only)  follows:

                                    BALANCE SHEETS
<TABLE>
<CAPTION>

                                                          (Dollars in thousands)


                                                           December 31,
                                                          -------------
                                                         2001           2000
                                                        ------        ------
<S>                                                    <C>             <C>
Assets
Interest-bearing savings deposit with subsidiary bank  $   140          $   179
Investment in subsidiary bank . . . . . . . . . . . .   11,219           11,281
Investment in insurance agency. . . . . . . . . . . .       84              150
Other assets. . . . . . . . . . . . . . . . . . . . .      242              199
                                                       --------         -------

 Total assets . . . . . . . . . . . . . . . . . . . .  $ 11,685         $11,809
                                                       ========         =======

Liabilities and shareholders' equity
Accrued expense and other liabilities . . . . . . . .  $     10         $     3
Shareholders' equity. . . . . . . . . . . . . . . . .    11,675          11,806
                                                       --------         -------

 Total liabilities and shareholders' equity . . . . .  $ 11,685         $11,809
                                                       ========         =======
</TABLE>



<TABLE>
<CAPTION>


                                     STATEMENTS OF INCOME

                                                               (Dollars in thousands)


                                                              Year ended December 31,
                                                             -------------------------

                                                               2001              2000
                                                              --------         ------
<S>                                                           <C>               <C>
Income
Dividends from subsidiary bank. . . . . . . . . . . . . . .    $ 635             $ 800
Interest income . . . . . . . . . . . . . . . . . . . . . .       45                52
Other income. . . . . . . . . . . . . . . . . . . . . . . .        0                 1
                                                               ------            ------
 Total income . . . . . . . . . . . . . . . . . . . . . . .      680               853

Expense
Interest expense. . . . . . . . . . . . . . . . . . . . . .        0                 0
Other expense . . . . . . . . . . . . . . . . . . . . . . .      139               154
                                                               ------            ------
 Total expense. . . . . . . . . . . . . . . . . . . . . . .      139               154
                                                               ------            ------
Income before income taxes and undistributed
 earnings of subsidiaries . . . . . . . . . . . . . . . . .      541               699
Income tax benefit. . . . . . . . . . . . . . . . . . . . .      (32)              (24)
                                                               ------            ------
Income (loss) before undistributed earnings of subsidiaries      573               723
Undistributed earnings of subsidiaries. . . . . . . . . . .      209               271
                                                               ------            ------
 Net income . . . . . . . . . . . . . . . . . . . . . . . .  $   782             $ 994
                                                             ========            ======
</TABLE>


<TABLE>
<CAPTION>

                                     STATEMENTS OF CASH FLOWS

                                              (Dollars in thousands)
                                                    Year ended
                                                   December 31,
                                                   ------------
                                                   2001    2000
                                                  ------  ------
<S>                                              <C>     <C>
Cash flows from operating activities
Net income from operating activities . . . . . .  $ 782   $ 994
Adjustments to reconcile net income to net cash
 flows from operating activities:
Equity in undistributed earnings of subsidiaries   (209)   (271)
Deferred income taxes. . . . . . . . . . . . . .    (38)      0
Compensation expense for ESOP. . . . . . . . . .     76      76
Compensation expense for RRP . . . . . . . . . .     79      98
Net increase (decrease) in other assets. . . . .     20     (41)
Net decrease in other liabilities. . . . . . . .    (18)     (1)
                                                  ------  ------
 Net cash from operating activities. . . . . . .    692     855

Cash flows from financing activities
Payments on notes payable. . . . . . . . . . . .      0       0
Purchase of insurance agency . . . . . . . . . .      0    (160)
Purchase of treasury shares. . . . . . . . . . .   (380)   (370)
Purchase of common shares by RRP . . . . . . . .      0       0
Cash dividends paid. . . . . . . . . . . . . . .   (351)   (348)
                                                  ------  ------
 Net cash used in financing activities . . . . .   (731)   (878)

Net decrease in cash and cash equivalents. . . .    (39)    (23)
Cash and cash equivalents at beginning of year .    179     202
                                                  ------  ------

 Cash and cash equivalents at end of year. . . .  $ 140   $ 179
                                                  ======  ======
</TABLE>



NOTE  T  -  QUARTERLY  FINANCIAL  DATA  (UNAUDITED)
<TABLE>
<CAPTION>


                                          (Dollars in thousands, except per share data)
<S>                                           <C>       <C>       <C>       <C>
                                               First     Second    Third     Fourth
                                               Quarter   Quarter   Quarter   Quarter
                                               --------  --------  --------  --------
Year ended December 31, 2001:
Interest income . . . . . . . . . . . . . . .  $  2,601  $  2,609  $  2,558  $  2,641
Interest expense. . . . . . . . . . . . . . .     1,634     1,670     1,679     1,701
                                               --------  --------  --------  --------
 Net interest income. . . . . . . . . . . . .       967       939       879       940

Provision for loan losses . . . . . . . . . .        10        10         0       120
Other income. . . . . . . . . . . . . . . . .       243       170       293       306
Other expense . . . . . . . . . . . . . . . .       865       872       971       942
Provision for income taxes. . . . . . . . . .        67        38        15        45
                                               --------  --------  --------  --------
 Net income . . . . . . . . . . . . . . . . .  $    268  $    189  $    186  $    139
                                               ========  ========  ========  ========

Earnings per share - basic. . . . . . . . . .  $   0.36  $   0.25  $   0.25  $   0.19
Earnings per share - diluted. . . . . . . . .  $   0.33  $   0.23  $   0.23  $   0.18
Weighted-average common
 shares outstanding . . . . . . . . . . . . .   756,830   752,301   741,101   733,728

Year ended December 31, 2000: . . . . . . . .   756,830   752,301   741,101   733,728
Interest income . . . . . . . . . . . . . . .  $  2,244  $  2,340  $  2,372  $  2,577
Interest expense. . . . . . . . . . . . . . .     1,284     1,361     1,495     1,597
                                               --------  --------  --------  --------
 Net interest income. . . . . . . . . . . . .       960       979       877       980

Provision for loan losses . . . . . . . . . .        15        10        15        70
Other income. . . . . . . . . . . . . . . . .        47        39        36       176
Other expense . . . . . . . . . . . . . . . .       653       660       614       702
Provision for income taxes. . . . . . . . . .        98       100        79        84
                                               --------  --------  --------  --------
 Net income . . . . . . . . . . . . . . . . .  $    241  $    248  $    205  $    300
                                               ========  ========  ========  ========

Earnings per share - basic. . . . . . . . . .  $   0.32  $   0.33  $   0.27  $   0.40
Earnings per share - diluted. . . . . . . . .  $   0.29  $   0.30  $   0.25  $   0.37
Weighted-average common
 shares outstanding . . . . . . . . . . . . .   761,187   746,898   746,898   749,883
</TABLE>


NOTE  U  -  BUSINESS  COMBINATION

On  December  1, 2000, the corporation's new, wholly-owned subsidiary, Home City
Insurance Agency, Inc. ("HCIA"), acquired the book of business and certain other
assets of Rice Insurance Agency, Inc. (the "Rice Agency"). The transaction was a
business  combination  accounted for as a purchase. The results of operations of
HCIA  are  included  in  the accompanying financial statements since the date of
acquisition.

The  Asset Sale and Purchase Agreement provided for the payment of $100,000 plus
a  pro  rated  portion  of  certain  expenses to the Rice Agency for the book of
business,  a  computer  software  licensing  agreement  and trademark rights. In
addition,  HCIA  agreed to pay to the owner of the Rice Agency in exchange for a
covenant  not to compete (1) the sum of $390,000 paid in ten annual installments
of  $39,000  on  June 1 of each year commencing on June 1, 2003, and (2) monthly
payments  of interest of approximately $2,000 commencing on January 1, 2001, and
ending  on  June  1,  2003.

The  intangible  assets  resulting  from  the  acquisition  are  as  follows:

COVENANT  NOT  TO  COMPETE:  The  cost of the Covenant Not to Compete, valued at
$313,000,  is  being  amortized  on  the  straight-line  method over 12   years.

TRADEMARK RIGHTS:  The value of the trademark rights acquired, $15,000, is being
amortized  on  the  straight-line  method  over  5  years.

COMPUTER  SOFTWARE  CONTRACT:  The  value  of  the  computer  software  contract
acquired,  $15,000, is being amortized on the straight-line method over 5 years.

GOODWILL:  The  remaining value of the excess of the cost of the assets acquired
over  the  fair  value of its net assets at the date of acquisition was $70,000,
which  is  being  amortized  on  the  straight-line  method  over  15  years.

ITEM  8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
FINANCIAL  DISCLOSURE.

     None

                                    PART  III

ITEM  9.  DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS;
COMPLIANCE  WITH  SECTION  16  (A)  OF  THE  EXCHANGE  ACT  OF  THE  REGISTRANT

     The  information  set  forth  under the caption  PROPOSAL ONE - ELECTION OF
DIRECTORS  and  "SECTION  16 (a) - BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" of
the  Definitive  Proxy Statement of the Corporation dated March  13, 2002, filed
with  the  United  States  Securities  and  Exchange  Commission  (the  "Proxy
Statement")  is  incorporated  by  reference  herein.

ITEM  10.  EXECUTIVE  COMPENSATION

     The information set forth under the caption " COMPENSATION OF DIRECTORS AND
EXECUTIVE  OFFICERS  of  the  Definitive  Proxy  Statement  is  incorporated  by
reference  herein.

ITEM  11.  SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND  MANAGEMENT

     The  information  set  forth  under  the  caption  VOTING  SECURITIES  AND
OWNERSHIP  OF  CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" of the Definitive Proxy
Statement  is  incorporated  by  reference  herein.

ITEM  12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

     The  information set forth under the caption  COMPENSATION OF DIRECTORS AND
EXECUTIVE  OFFICERS  -  Certain  Transactions  with Home City" of the Definitive
Proxy  Statement  is  incorporated  by  reference  herein.

ITEM  13.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)   Exhibits

      3.1   Articles  of  Incorporation  (Incorporated  by  reference)
      3.2   Code  of  Regulations  (Incorporated  by  reference)
     10.1   Employment  Agreement  with Mr. Ulery (Incorporated by reference)
     10.2   Home  City  Financial  Corporation  1997  Stock  Option  and
            Incentive  Plan  (Incorporated  by  reference)
     10.3   Home  City  Financial  Corporation  Recognition  and  Retention
            Plan and  Trust  Agreement  (Incorporated  by  reference)
     10.4   Asset  Sale  And  Purchase  Agreement  (Incorporated  by  reference)
     21     Subsidiaries  (Incorporated  by  reference)
     99.1   Proxy  Statement  (Incorporated  by  reference)
     99.2   Safe  Harbor Under the Private Securities Litigation Reform Act of
            1995

(b)    Reports  on  Form  8-K

       No  reports  on  Form 8-K were filed during the quarter ended
       December 31, 2001.


SIGNATURES

     In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


     HOME  CITY  FINANCIAL  CORPORATION


     /s/  Douglas  L.  Ulery
     _____________________________
     Douglas  L.  Ulery
     President  and  Chief  Executive  Officer


     In  accordance  with the Exchange Act, this report has been signed below by
the  following  persons on behalf of the registrant and in the capacities on the
dates  indicated.


     /s/  Glenn  W.  Collier           /s/  John  D.  Conroy
     ____________________________      _____________________________
     Glenn  W.  Collier                John  D.  Conroy
     Director                          Chairman  of  the  Board

     March  22,  2002                  March  22,  2002
     ____________________________      _____________________________
     Date                              Date

     /s/  James  Foreman               /s/  Terry  A.  Hoppes
     ____________________________      _____________________________
     James  Foreman                    Terry  A.  Hoppes
     Director                          Director

     March  22,  2002                  March  22,  2002
     ____________________________      _____________________________
     Date                              Date

     /s/  Douglas  L.  Ulery           /s/  Charles  A.  Mihal
     ____________________________      _____________________________
     Douglas  L.  Ulery                Charles  A.  Mihal
     Director                          Treasurer  and
     President  and                    Chief Financial Officer
     Chief  Executive  Officer

     March  22,  2002                  March  22,  2002
     ____________________________      _____________________________
     Date                              Date



INDEX  TO  EXHIBITS



EXHIBIT
NUMBER.  DESCRIPTION

3.1     Articles of Incorporation
        Incorporated by reference to the Registrant's Quarterly Report
        on Form 10-QSB for the Quarter

3.2     Code of Regulations of Home City Financial Corporation
        Incorporated by reference to the March 31, 1997, 10-QSB,
        Exhibit 3 (ii)

10.1    Employment Agreement with Mr. Ulery
        Incorporated by reference to the December 31, 2000, 10-KSB,
        Exhibit 10.1

10.2    Home City Financial Corporation 1997 Stock Option and Incentive Plan
        Incorporated by reference to the Registrant's 1997 Definitive Proxy
        Statement dated September 19, 1997, Exhibit A

10.3    Home City Financial Corporation Recognition and Retention Plan
        and Trust Agreement
        Incorporated by reference to the Registrant's 1997 Difinitive Proxy
        Statement dated September 19, 1997, Exhibit B

10.4    Asset Sale And Purchase Agreement
        Incorporated by reference to Form 8-K filed by Registrant on
        December 1, 2000, Exhibit 2

21. . .  Subsidiaries of Home City Financial Corporation
         Incorporated by reference to the December 31, 2000, Form 10-KSB,
         Exhibit 21

99.1     Proxy Statement
         Incorporated by reference to the definitive Proxy Statement of
         the Registrant for the 2002 Annual Meeting ofv Shareholders of
         Home City Financial Corporation, filed with the Securities
         And Exchange Commission.

99.2     Safe Harbor Under the Private Securities Litigation Reform
         Act of 1995