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, 2000
                         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)

   63 West Main Street, Springfield, Ohio                           45502
   --------------------------------------                           -----
   (Address of principal executive offices)                       (zip code)

                      Issuer's telephone number  (937)324-5736

            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),

                            Preferred 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.  $9,831,000

     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  6,  2001,  810,900  common  shares  of the Registrant were
outstanding.  The  aggregate  market  value of the shares held by non-affiliates
was  $6,744,529 based upon the closing sale price of $11.000 per share as quoted
by  The  Nasdaq  Stock  Market.

     DOCUMENTS  INCORPORATED  BY  REFERENCE

     The  following  sections  of  the  definitive  Proxy Statement for the 2001
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"), to
provide  for  the  sale  of  insurance  related  products.

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 office 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 main office, 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 lower
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,  2000.

2.  Comparison  of Results of Operations for the Fiscal Years Ended December 31,
2000  and  1999  -"Provision for Loan Losses"  Management's statements regarding
the  adequacy  of  the  allowance  for  loan  losses  at  December  31,  2000.

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

4.  New  Legislation.  Management's  expectation that the Gramm-Leach-Bliley Act
will  not  have  a material effect on the activities in which Home City and HCFC
currently  engage,  except  to  the  extent that competition from other types of
financial  institutions  may increase as they engage in activities not permitted
prior  to  the  enactment  of  the  Gramm-Leach-Bliley  Act.

     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 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,
                                                             -----------------------
                                                        2000                         1999
                                                      --------                     --------
                                                              (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)        $ 55,729          49.17%        $ 51,887      50.70%
Multifamily                                    3,797           3.35            3,423       3.34
Home equity (second mortgage)                  2,979           2.63            2,277       2.23
Nonresidential real estate loans              10,001           8.82            9,853       9.63
Land loans                                     1,010           0.89            1,681       1.64
Construction loans                             4,692           4.14            5,580       5.45
                                           ---------          -------       --------      ------

Total real estate loans                       78,208          69.00           74,701      72.99

Commercial loans:
Secured by real estate                        17,874          15.77           11,750      11.48
Other                                         10,321           9.11            9,389       9.18
                                           ---------          -------       --------      ------

Total commercial loans                        28,195          24.88           21,139      20.66

Consumer loans:
Loans on deposits                                143           0.12              193       0.19
Other consumer loans                           6,799           6.00            6,309       6.16
                                           ---------          -------        -------      ------

Total consumer loans                           6,942           6.12            6,502       6.35
                                           ---------          -------        -------      ------

Total loans                                  113,345         100.00%         102,342     100.00%
                                                             =======                     =======
Less:
Unearned and deferred income, net               (553)                           (569)
Loans in process                              (1,315)                         (4,438)
Allowance for loan losses                       (532)                           (491)
                                           ----------                       ---------

Net loans                                   $110,945                        $ 96,844
                                           ==========                       =========

</TABLE>


LOAN MATURITY SCHEDULE.  The following table sets forth certain information
as  of  December 31, 2000, 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 more
                         Due during the       Due 4-5      Due 6-10      Due 11-15     than 15
                    year ending December 31,  years after  years after   years after   years after
                      2001     2002    2003   12/31/00     12/31/00      12/31/00      12/31/00      Total
                      ----     ----    ----   -----------  -----------   -----------   -----------   -----
                                                (Dollars in thousands)
<S>                   <C>      <C>     <C>    <C>          <C>           <C>           <C>        <C>
Mortgage loans:
Residential           $ 4,027  $  218  $  173  $   3,475   $  17,851     $  31,214     $   3,894  $  60,852
Nonresidential            160     224     111        514       4,960         7,085         2,443     15,497
Consumer loans            371     268     489      1,019         693         3,984           109      6,933
Commercial loans        8,141   1,614   1,080      4,789       4,085         6,501         1,985     28,195
                      -------  ------  ------  ---------   ---------     ---------     ---------   --------

Total loans           $12,699  $2,324  $1,853  $   9,797   $  27,589     $  48,784     $   8,431   $111,477
                      =======  ======  ======  =========   =========     =========     =========   ========
</TABLE>

Of  the  loans  due  more than one year after December 31, 2000, loans with
aggregate balances of $69.9 million have fixed rates of interest, and loans with
aggregate  balances  of  $28.8  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 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 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 in
amounts  up to 80% LTV.  Home City generally requires private mortgage insurance
("PMI") for the amount of loans in excess of 80% of the value of the real estate
securing  such  loans.  PMI  is required for the amount of any loan in excess of
85%  of the value of the real estate and improvements for low-to-moderate income
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, three years or a fixed rate for 5 to 10 years followed
by one-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  $55.7  million  at December 31, 2000, and
represented  49.17%  of loans at such date.  The largest individual loan balance
on  a  one-  to four-family loan at such date was $699,000.  At such date, loans
secured by one- to four-family residential real estate with outstanding balances
of $72,000, or 0.13%, 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  15  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,  2000,  loans  secured  by multifamily properties totaled
approximately $3.8 million, or 3.35% of Home City's total loan portfolio, all of
which  were  secured by property located within Home City's primary market area,
and  all  of  which were performing in accordance with their terms.  The largest
loan  secured  by  a multifamily property had a balance at December 31, 2000, of
approximately  $1.6  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, with a maximum
combined  LTV  for  the  first  and  second  mortgage  of  100%.

At December 31, 2000, home equity loans totaled approximately $3.0 million,
or 2.63% of Home City's total loan portfolio.  All of such loans were secured by
property  located within Home City's primary market area and all were performing
in  accordance  with their terms.  The balance of the largest single home equity
loan  was  $442,000  at  December  31,  2000.

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 15 years and a maximum loan
amount  of  $1.6  million.  Such  loans  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,  2000, Home City had a total of $10.0 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
8.82%  of  Home City's total loans at such date.  At such date, Home City had no
nonresidential  loans  that  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  $843,000.

Federal regulations limit the amount of nonresidential mortgage loans which
an  association may make to 400% of its tangible capital.  At December 31, 2000,
Home City's nonresidential mortgage loans totaled 92.34% 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,  2000,  land loans totaled approximately $1.0 million, or
0.89% of Home City's total loan portfolio. The largest land loan at December 31,
2000,  had  a balance of approximately $347,000.  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,  2000, a total of $4.7 million, or approximately 4.14% 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, 2000, all of such loans were performing in accordance with their
terms.

COMMERCIAL LOANS.  Home City also originates loans for commercial purposes.
Such  loans  are  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.

Commercial  loans  totaling  $17.9 million at December 31, 2000, were secured by
nonresidential  real  estate.  The  real  estate  securing  commercial  loans at
December  31, 2000, was comprised of warehouses, office buildings and industrial
buildings.  This  type  of  loan is made with terms of up to 20 years, a maximum
loan amount of $1.6 million and a maximum LTV of 80%.  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 $10.3 million at December 31,
2000, 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, 2000, Home City had commercial loans in the aggregate amount of
$28.2 million, or approximately 24.88% of Home City's total loans, each of which
was  performing  in  accordance  with  its terms.  The total indebtedness of the
largest  single  borrower  within  the  commercial portfolio was $1.1 million at
December  31,  2000.

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 2000 consumer loans decreased as a percent of
Home  City's  loan portfolio.  See "MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF  OPERATIONS."

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, 2000, Home City had approximately $6.9 million, or 6.12% of its
total  loans,  invested  in  consumer loans, and no such loans were more than 90
days delinquent or nonaccruing. See "Delinquent Loans, Non-performing Assets and
Classified  Assets."  The  balance  of the largest consumer loan was $150,000 at
December  31,  2000.

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 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  2000  and  1999  Home City did not
participate  in  any  loans  originated  by  other  institutions.


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

<TABLE>
<CAPTION>



                                                           December 31,
                                                      2000               1999
                                                    --------           --------
                                                      (Dollars in thousands)
Loans originated:
<S>                                                <C>                <C>
One- to four-family residential (1)                $14,350            $21,978
Multifamily residential                              1,700                692
Nonresidential                                       5,457                913
Commercial - secured by real estate                  5,371              6,362
Commercial - other                                  11,271              9,726
Consumer                                             4,404              4,744
                                                   -------            -------

Total loans originated                             $42,553            $44,415

Loans purchased                                          0                  0

Reductions:
Principal repayments                               (28,007)           (23,780)
Sales of loans                                        (577)              (750)
 Increase (decrease) in other items, net (2)           132                (27)
                                                   --------          ---------

Net increase                                       $14,101            $19,858
                                                   =========         =========
<FN>



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

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,  2000.  The  largest  amount  Home City had
outstanding  to one borrower at December 31, 2000, was $1.6 million.  Such loans
were  secured  by  commercial  real  estate  properties.  All of such loans were
current  at  December  31,  2000.

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, 2000, 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, 2000            December 31, 1999
                                            -----------------            -----------------


                                                              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                                 20       $  1,046   0.94%     19      $   738  0.75%
60-89 days                                 12            400   0.36       5          289  0.30
90 days and over                            6             72   0.06       5          193  0.20
                                   ----------       --------   -----  -----      -------  ----

Total delinquent loans                     38       $  1,518   1.36%     29      $ 1,220  1.25%
                                   ==========       ========   =====  =====      =======  =====
<FN>

(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.
</TABLE>

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,
                                                             -----------------------
                                                            2000       1999      1998
                                                          --------   --------   -------
                                                              (Dollars in thousands)
<S>                                                       <C>        <C>        <C>
Loans accounted for on a nonaccrual basis:
Real estate:
Residential                                               $    72     $   193   $   186
Nonresidential                                                  0           0         0
Commercial                                                      0           0         0
Consumer                                                        0           0         0
                                                         ---------    --------  --------

Total non-performing loans                                $    72         193       186

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

Total non-performing assets                               $    72     $   193   $   186
                                                          ========    ========  ========

Total loan loss allowance                                 $   532    $    491   $   486

Total non-performing assets as
  a percentage of total assets                               0.06%       0.18%     0.22%

Loan loss allowance as a percent
of non-performing loans                                    738.89%     254.40%   261.29%
</TABLE>

During  the fiscal year ended December 31, 2000, $42,000 in interest income
was  recognized  and  an  additional $4,000 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,
                                        -----------------------
                                           2000   1999   1998
                                           -----  -----  -----
                                         (Dollars in thousands)
<S>                                       <C>     <C>    <C>
Classified assets:
Substandard                               $ 905   $ 380  $ 366
Doubtful                                      0       0      0
Loss                                         56      47     47
                                          -----   -----  -----
Total classified assets                   $ 961   $ 427  $ 413
                                          =====   =====  =====
</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 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  experienced  charge-offs from loans secured by one- to
four-family  residential  real  estate  and  automobiles.

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)

                                                                      2000       1999
                                                                     ------     ------
<S>                                                                  <C>        <C>
Balance at beginning of year                                         $ 491      $ 486

Charge-off                                                             (69)       (31)
Recoveries                                                               0          2
Provision for loan losses (charged to operations)                      110         34
                                                                     ------     ------
Balance at end of year                                               $ 532      $ 491
                                                                     ======     ======

Ratio of net charge-offs (recoveries) to average net
 loans outstanding during the year                                    0.07%      0.03%
Ratio of allowance for loan losses to total loans                     0.48%      0.51%
</TABLE>

For  the  fiscal year ended December 31, 2000, $35,000 of the allowance for
loan  losses  was  allocated  to  loans  secured  by nonresidential real estate,
$220,000  was  allocated  to  loans  secured by one- to four-family real estate,
$82,000  was  allocated  to  consumer  loans,  and  $121,000  was  allocated  to
commercial  loans.  For  the fiscal year ended December 31, 1999, $25,000 of the
allowance  for loan losses was allocated to loans secured by nonresidential real
estate,  $201,000  was  allocated  to  loans secured by one- to four-family real
estate,  $95,000  was allocated to consumer loans, and $103,000 was allocated to
commercial  loans.

MORTGAGE-BACKED  SECURITIES

Home  City  maintains a portfolio of mortgage-backed securities in the form
of  Government  National  Mortgage  Association  ("GNMA")  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 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 and FNMA securities is guaranteed by  the respective agencies and backed
by  the  full  faith  and  credit  of  the  U.S.  Government.

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

<TABLE>
<CAPTION>

                           December 31, 2000     December 31, 1999
                           -----------------     -----------------
                                    (Dollars in thousands)


                            Amortized    Fair   Amortized    Fair
                               Cost     value      cost     value
                            ----------  ------  ----------  ------
<S>                         <C>         <C>     <C>         <C>
GNMA and FNMA certificates  $      462  $  460  $      429  $  424
                            ----------  ------  ----------  ------
Total mortgage-backed
   securities               $      462  $  460  $      429  $  424
                            ==========  ======  ==========  ======
</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,  2000.  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, 2000
                                                               --------------------

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

<S>              <C>       <C>        <C>        <C>       <C>       <C>      <C>       <C>       <C>        <C>      <C>
GNMA &
   FNMA
   certificates  $0        $0         $0         $0        $331      6.30%    $129      6.71%     $460       $460     6.42%
                 --        --         --         --        ----      -----    ----      -----     ----       ----     -----
   Total         $0        $0         $0         $0        $331      6.30%    $129      6.71%     $460       $460     6.42%
<FN>

For  additional  information,  see  Note  C  of  the  Notes  to  Consolidated  Financial  Statements.
</TABLE>


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."


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

<TABLE>
<CAPTION>

                                     At December 31,                        At December 31,
                                    ----------------                        ---------------
                                         2000                                     1999
                                         ----                                     ----
                            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     $   72     1.25%  $   72   1.25%        $  282     5.97%  $  282   5.97%


Federal funds sold             273      4.73     273   4.73              0        0        0      0
Time deposits in other
 financial institutions
                                24      0.42      23   0.40             24     0.51       21   0.45
Investment securities:
 U.S. government and
  federal agencies
                             1,295     22.45   1,295  22.46          1,865    39.49    1,865  39.51
 Municipal securities (1)    1,006     17.44   1,006  17.45            629    13.32      629  13.33
Equity securities:
 FHLMC stock                   887     15.38     887  15.38            523    11.07      523  11.08
 Service corporation (2)        28      0.49      28   0.49             28     0.59       28   0.59
 FHLB stock                  1,779     30.85   1,779  30.85          1,372    29.05    1,372  29.07
 FNMA preferred stock          403      6.99     403   6.99              0        0        0      0
                           -------    ------- ------ ------        -------   -------  ------ -------
Total investments          $ 5,767    100.00% $5,766 100.00%        $4,723   100.00%  $4,720 100.00%
                           =======    ======= ====== =======       =======   =======  ====== =======

<FN>

(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.
</TABLE>


The  following  tables  set  forth  the contractual maturities, carrying values,
market  values  and  average  yields  for  Home  City s investment securities at
December  31,  2000:

<TABLE>
<CAPTION>


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

                                 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%       $1,295         6.35%     $    0         0%
Municipal securities             170       4.15           347         4.94         489      4.89
Equity securities: (1)
   FHLMC stock                     0          0             0            0         887      2.30
   Service corporation             0          0             0            0          28         0
   FNMA preferred stock            0          0             0            0         403      5.69
                               -----       ----        -------        -----       -----     ----
Total investments               $170       4.15%       $1,642         6.05%     $1,807      3.72%
                               =====       =====       ======         =====     ======      =====

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

<PAGE>
</TABLE>

<TABLE>
<CAPTION>



                                                   At December 31, 2000
                                                   --------------------
                                     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                     2.64         $ 1,295     $ 1,295    6.35%
Municipal securities                  5.09           1,006       1,006    4.78%
Equity securities (1)                                1,318       1,318    3.29%
                                                   -------     -------
Total                                              $ 3,619     $ 3,619
                                                   =======     =======

<FN>

(1)     By  their  nature,  equity  securities  have  no  maturity  date.
</TABLE>

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  $6.5  million  at  December  31,  2000.

At  December  31,  2000,  Home City's certificates of deposit totaled $59.1
million,  or  78.75%  of  total  deposits.  Of  such amount, approximately $29.0
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.

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,
                                                                 -----------------------
                                                              2000                 1999
                                                            -------               -------
                                                                   Percent              Percent
                                                                  of total             of total
                                                        Amount    deposits     Amount   deposits
                                                       --------  ---------    -------  --------
                                                                  (Dollars in thousands)
<S>                                                      <C>         <C>        <C>        <C>
Transaction accounts:
---------------------
Demand                                                   $2,102      2.80%      $1,912     2.75%
NOW accounts (1)                                          1,660      2.21        1,480     2.12
Passbook/statement savings accounts (2)                  12,192     16.24       12,241    17.57
                                                         ------     -----       ------    -----
Total transaction accounts                               15,954     21.25       15,633    22.44

Certificates of deposit:
------------------------
4.01 - 6.00%                                             13,828     18.42       29,702    42.63
6.01 - 8.00%                                             45,295     60.33       24,336    34.93
                                                         ------     -----       ------    -----

Total certificates of deposit                            59,123     78.75       54,038    77.56
                                                         ------     -----       ------    -----

Total deposits (3)                                      $75,077    100.00%     $69,671   100.00%
                                                        =======    =======     =======   =======

<FN>

(1)     Home  City's  weighted-average  interest  rate paid on NOW accounts fluctuates with the
general  movement  of interest rates. At December 31, 2000 and 1999, the weighted-average rates
on  NOW  accounts  were  2.80%  and  2.71%,  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  3.87%  and  3.34%  at  December  31, 2000 and 1999,
respectively.
(3)     IRAs  are  included in the various certificates of deposit balances.  IRAs totaled $6.8
million  and  $6.7  million  as  of  December  31,  2000  and  1999,  respectively.
</TABLE>

The  following  table  shows  rate and maturity information for Home City's
certificates  of  deposit  as  of  December  31,  2000:

<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>
4.01 - 6.00%                            $ 9,891    $ 3,623     $   295      $    19    $13,828
6.01 - 8.00%                             19,135     19,540       6,132          488     45,295
                                        -------    -------     -------      -------    -------

Total certificates of deposit           $29,026    $23,163     $ 6,427      $   507    $59,123
                                        =======    =======     =======      =======    =======
</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,  2000:

<TABLE>
<CAPTION>



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

<S>                               <C>
Three months or less               $ 1,539
Over 3 months to 6 months            2,003
Over 6 months to 12 months           5,330
Over 12 months                       6,572
                                   -------

Total                              $15,444
                                   =======
</TABLE>

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

<TABLE>
<CAPTION>



                               Year ended December 31,
                              -------------------------
                               2000                1999
                              ------              ------
                                (Dollars in thousands)
<S>                         <C>                 <C>
Beginning balance           $ 69,671            $ 60,499

Deposits                     150,647             119,853
Withdrawals                 (149,252)           (113,933)
                            ---------           ---------
Net increase before
interest credited              1,395               5,920

Interest credited              4,011               3,252
                            ---------           ---------
Ending balance              $ 75,077            $ 69,671
                            =========           =========

Net increase                $  5,406            $  9,172

Percentage increase             7.76%              15.16%
</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, 2000, Home City met at least one of the QTL Tests.

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


<TABLE>
<CAPTION>



                                                      Year ended December 31,
                                                    -------------------------
                                                         2000         1999
                                                         ----         ----
                                                       (Dollars in thousands)
<S>                                                    <C>          <C>
Average balance outstanding                            $29,707      $18,497

Maximum amount outstanding at any month end
during the year                                        $34,951      $26,505

Balance outstanding at end of year                     $34,951      $26,505

Weighted-average interest rate during the year            6.05%        5.46%

Weighted-average interest rate at end of year             6.28%        5.67%
</TABLE>

Based  upon  Home  City's  eligible mortgage collateral, total FHLB advances are
limited  to  approximately  $49.3  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, 2000, 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, 2000, Home City had approximately 5.02% 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, 2000, Home City had twenty-nine full-time employees and
six  part-time  employees  and  HCIA had seven 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 determine 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.

On  November  12,  1999,  the  Gramm-Leach-Bliley  Act  (the "GLB Act") was
enacted into law.  The GLB Act repealed prior laws which had generally prevented
banks  from  affiliating  with  securities  and  insurance firms and makes other
significant  changes  in  the  financial  services  in  which  various  types of
financial  institutions  may  engage.

Prior  to the GLB Act, unitary savings and loan holding companies which met
certain  requirements were the only financial institution holding companies that
were  permitted  to  engage in any type of business activity, whether or not the
activity  was a financial service.  The GLB Act continues those broad powers for
unitary  thrift  holding  companies in existence on May 4, 1999, including HCFC.
Any thrift holding company formed after May 4, 1999, however, will be subject to
the  same restrictions as multiple thrift holding companies, which generally are
limited  to  activities  that  are  considered  incidental  to  banking.

The  GLB  Act  authorizes  a new "financial holding company," which can own
banks  and  thrifts  and  which  are  also  permitted  to engage in a variety of
financial activities, including insurance and securities underwriting and agency
activities, as long as the depository institutions it owns are well capitalized,
well  managed  and  meet  certain  other  tests.

The  GLB Act is not expected to have a material effect on the activities in
which  the  HCFC  and  Home  City  currently  engage,  except to the extent that
competition  from  other  types  of  financial institutions may increase as they
engage  in  activities  not  permitted  prior  to  enactment  of  the  GLB  Act.

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, 2000, was 8.84%.   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,  2000,  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, 2000,
Home  City  had QTIs equal to approximately 73.9% 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,  2000.

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, 2000.

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, 2000,
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.

Federal  legislation,  which was effective September 30, 1996, provided for
the  recapitalization  of the SAIF by means of a special assessment of $.657 per
$100 of SAIF deposits held at March 31, 1995, in order to increase SAIF reserves
to the level required by law.  Certain banks holding SAIF deposits were required
to  pay  the  same  special assessment on 80% of deposits at March 31, 1995.  In
addition, the cost of prior thrift failures is now being shared by both the SAIF
and  the  BIF.  Home  City had $40.1 million in deposits at March 31, 1995. Home
City  paid  a  special  assessment  of  $263,000 on November 27, 1996, which was
recorded  as  of  September  30,  1996.

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 $42.8 million (subject to an exemption of up to $5.5
million),  and  to  maintain  reserves  of  10%  of  deposits in net transaction
accounts  against  that portion of total transaction accounts in excess of $42.8
million.  These  percentages  are subject to adjustment by the FRB.  At December
31,  2000,  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  $1,779,000  at  December  31,  2000.

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, 2000, Home City's
maximum  limit  on  advances  was  approximately  $49.3  million and Home City's
advances totaled $35.0 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, 1996.
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. For the year ending December
31,  2000  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  would  be 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.  Any  adjustments  under  Section  481(a)  of  the Code required to be
recaptured  with respect to such change generally 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  applicable  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,  2000,  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,
2000,  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 1996.  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.

Due  to  legislative  changes  enacted July 1, 1997, HCFC may elect to be a
"qualifying holding company" and as such be exempt from the net worth tax. To be
exempt  it  must  satisfy all the requirements of the enacted law which includes
related  member  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,"  which  for  tax year 2000 and thereafter is imposed 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.

SFAS  NO.  133, "RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS."  In June 1998, SFAS
No.  133,  Accounting  for  Derivative  Instruments  and Hedging Activities, was
issued.  SFAS  No.  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  SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities -
Deferral of the Effective Date of FASB Statement No. 133.  SFAS No. 133 was also
amended  by  SFAS  No.  138,  Accounting  for Certain Derivative Instruments and
Certain  Hedging  Activities.  The  adoption  of  this  Statement in 2001 is not
expected  to  have  a  material  impact  on  the  financial  statements of HCFC.

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  present  main  office  is  located  at  63  West Main Street,
Springfield, Ohio 45502, which property is owned by Home City. HCFC operates out
of  Home  City's  present  main  office.  HCFC reimburses Home City for the fair
value  of the space occupied.  Home City also leases administrative office space
across  the street. Home City is also constructing a new main office building at
2454  North  Limestone  Street,  Springfield,  Ohio  45504.

The  following  table  sets forth certain information at December 31, 2000,
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  $      333,000

2454 North Limestone Street, Springfield, Ohio 45504       1999   13,000  $    1,709,000
(under construction)

<FN>

(1)     At  December 31, 2000, Home City's properties and equipment had a total net book
value  of  $2,281,000.
(2)     For  additional  information regarding Home City's properties and equipment, see
Notes  A  and  E  of  Notes  to  Consolidated  Financial  Statements.
</TABLE>

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.



                                     PART II


ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

There  were 814,000 common shares of HCFC outstanding on December 31, 2000,
held  of  record  by  approximately  339  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>



            March 31, 2000   June 30, 2000   September 30,2000   December 31,2000
            ---------------  --------------  ------------------  -----------------
<S>         <C>              <C>             <C>                 <C>
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

            March 31, 1999   June 30, 1999   September 30,1999   December 31,1999
            ---------------  --------------  ------------------  -----------------
High        $        17.500  $       16.375  $           14.000  $          14.000
Low         $        13.500  $       14.000  $           12.750  $          12.000
Dividend
  declared  $          0.10  $         0.10  $             0.10  $           0.105
</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  2000,  HCFC, pursuant to regulatory approval to repurchase up to 5%
of  its outstanding shares, repurchased 29,390 common shares at an average price
of $12.60 per share. During 1999, HCFC repurchased 16,000 common shares at
an  average  price  of  $13.25  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,  2000.

2.     Comparison  of  Results of Operations for the Fiscal Years Ended December
31,  2000  and  1999  -  "Provision  for  Loan Losses".  Management's statements
regarding  the  adequacy  of the allowance for loan losses at December 31, 2000.

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

4.     New  Legislation.  Management's  expectations that the Gramm-Leach-Bliley
Act  will  not  have  a material effect on the activities in which Home City and
HCFC currently engage, except to the extent that competition from other types of
financial  institutions  may increase as they engage in activities not permitted
prior  to  the  enactment  of  the  Gramm-Leach-Bliley  Act.


FINANCIAL  CONDITION

HCFC's consolidated total assets amounted to $123.5 million at December 31,
2000,  an increase of $15.5 million, or 14.38%, over the $108.0 million in total
assets  at  December  31, 1999.  Such increase in assets was funded primarily by
the $5.4 million net increase in deposits, $8.4 million net increase in advances
from  the Federal Home Loan Bank (the "FHLB"), and undistributed net earnings of
$646,000.

Cash  and cash equivalents, time deposits and investment securities totaled
$5.7  million  at  December  31,  2000,  a decrease of $826,000, or 12.61%, from
December  31,  1999.  During  the  year  ended  December  31,  2000,  $55,000 of
investment  securities  matured. Such securities consisted primarily of tax-free
securities.  Those  proceeds,  together with $1.5 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 $460,000 at December 31, 2000, an increase of
$36,000  from  December  31,  1999.  The  purchase  of  a  FNMA certificate also
improved  portfolio  yield.

Net  loans  receivable  totaled  $110.9  million  at  December 31, 2000, an
increase  of  $14.1  million,  or  14.56%,  from the $96.8 million total at
December  31,  1999.  During the year ended December 31, 2000, loan originations
amounted  to $42.6 million, with commercial lending comprising $16.6 million and
one-  to four-family mortgage loans comprising $14.4 million.  Such originations
were  partially  offset  by  principal  repayments  of  $-28.0  million.

Home  City's  allowance  for  loan  losses totaled $532,000 at December 31,
2000,  which represented 0.48% of total loans and 738.89% of non-performing
loans.  At December 31, 1999, the allowance for loan losses totaled $491,000, an
amount  which  represented  0.51%  of  total loans and 254.40% of non-performing
loans.  With  the  increased  emphasis  on  the  adequacy  of loan loss reserves
throughout  the industry and with both local and national economic factors taken
into  consideration,  the  allowance  for  loan  losses  as  a  percentage  of
non-performing  loans  was  increased.

Non-performing  loans  were  $72,000  and $193,000 at December 31, 2000 and
1999,  respectively,  and  represented 0.06% and 0.18% of total assets at each
date.  The  $121,000  net  decrease at December 31, 2000, was due to $423,000 in
loans  that  became  classified  as non-performing, $94,000 in loans that became
classified  as  performing,  $350,000  that  were paid off, $29,000 in principal
charge-offs  and  $71,000  in  transfers  to  other real estate owned. All loans
classified  as  non-performing at December 31, 2000, 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, 2000, 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  $2.3  million at December 31, 2000, an
increase  of  $1.3  million, or 124.73%, from $1.0 million at December 31, 1999.
The  increase  is  comprised  of construction in process related to the new main
office  scheduled  to  open  in  July  2001.

Deposits  totaled  $75.1  million at December 31, 2000, an increase of $5.4
million,  or  7.76%,  from  $69.7 million at December 31, 1999.  The increase is
slightly less than the deposit growth trends (averaging over 10%) that Home City
has  been experiencing over the past several years.  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  $26.5  million  at December 31, 1999, to $35.0 million at December 31,
2000,  an  increase  of 31.87%, as advances were used to fund loan originations.

Shareholders'  equity  totaled  $11.8  million  at  December  31,  2000, an
increase  of  $590,000,  or  5.26%,  from  $11.2  million  at December 31, 1999.

COMPARISON OF RESULTS OF OPERATIONS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2000
AND  1999

GENERAL.  Net income for the year ended December 31, 2000, was $994,000, an
increase of $18,000, or 1.84%, over the $976,000 in net income recorded in 1999.
The  increase  in  net income resulted primarily from a $156,000 increase in net
interest  income,  a  $175,000  increase  in  noninterest  income  and a $51,000
decrease  in the provision for federal income taxes, which were partially offset
by  a  $288,000  increase  in  noninterest expense and a $76,000 increase in the
provision  for  loan  losses.

NET INTEREST INCOME.  Net interest income totaled $3.8 million for the year
ended  December  31,  2000,  an  increase  of  $156,000, or 4.29%, over the $3.6
million  recorded  in 1999.  Interest income on loans increased by $1.5 million,
or  20.10%,  during  2000 due primarily to an increase in the average balance of
the loans outstanding of $18.1 million, or 21.06%, being partially offset by a 7
basis  point  (100 basis points equals one percent) decrease in yield from 8.89%
in  1999  to  8.82%  in  2000.  Interest  income  on  mortgage-backed securities
decreased by $5,000, or 17.24%, due primarily to a $111,000, or 22.38%, decrease
in  the  average  balance  of  mortgage-backed securities outstanding, which was
slightly off-set by an increase in the weighted-average yield year-to-year, from
5.91% in fiscal 1999 to 6.24% in 2000.  Interest income on investment securities
increased  by $92,000, or 47.18%, for the year ended December 31, 2000, compared
to  fiscal  1999,  as the average balance increased by $976,000 year-to-year and
the related yield increased by 90 basis points to 5.87% in 2000. Interest income
on interest-bearing deposits decreased by $5,000 for the year ended December 31,
2000,  compared  to  1999.  The  average  balance  of  interest-bearing deposits
decreased  $194,000, or 42.64%. The yield on interest-bearing deposits increased
118  basis  points  to  5.15%.  There  were no investments in federal funds sold
during  1999,  compared  to  an  average  investment  of $220,000 in 2000, which
yielded  6.23%.

Interest  expense on deposits increased by $718,000, or 22.28%, during 2000, due
primarily  to an increase in the average balance of deposits outstanding of $8.2
million,  or  13.21%, coupled with an increase in the weighted-average rate from
5.19%  in  1999  to  5.61%  in  2000.  Interest expense on FHLB advances and
short-term  borrowings  increased  by  $761,000,  or 73.46%, primarily due to an
increase in the average balance outstanding of $10.8 million, or 57.38%, coupled
with  an  increase  in  the weighted-average rate from 5.49% in 1999 to 6.05% in
2000.

As  a  result  of  the  foregoing  changes  in interest income and interest
expense  the  interest  rate  spread  decreased by 49 basis points, to 2.93% for
2000,  as compared to 3.42% for 1999, while the net interest margin decreased by
55  basis  points  to  3.45%  for  the  year  ended  December  31,  2000.

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,  2000.  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 $69,000 and $29,000 during the years ended
December  31,  2000 and 1999, 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
69%  of Home City's loan portfolio, and loans secured by first mortgages on one-
to  four-family  residential  real estate made up 49% of total loans at December
31,  2000.  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  $110,000 and $36,000 for the years ended
December  31, 2000 and 1999, respectively.  The ratio of non-performing loans to
total loans decreased to 0.06% in 2000 from 0.20% in 1999.  At December 31, 2000
and  1999,  Home City had a ratio of allowance for loan losses to total loans of
0.48%  and  0.51%,  respectively,  and  ratios  of  allowance for loan losses to
non-performing  loans  of  738.89%  and  254.40%.  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 $110,000 and $36,000 made in 2000 and 1999 were deemed appropriate
by  management  to  absorb  reasonably  foreseeable  loan  losses.

NONINTEREST INCOME.  Noninterest income totaled $298,000 for the year ended
December  31,  2000,  an  increase  of  $175,000,  or 142.28%, from the $123,000
recorded  in 1999.  The increase resulted primarily from increases of $83,000 in
income  from  life  insurance  policies,  $6,000  in  service charges on deposit
accounts,  $64,000 in net gains recognized on the sale of securities and $22,000
in  other  miscellaneous  fee  income.  A  receipt  of  $72,000 resulting from a
director life insurance policy was the primary reason for the increase in income
from  life  insurance  policies.

NONINTEREST EXPENSE.  Noninterest expense increased by $288,000, or 12.30%,
to  a total of $2.6 million for the year ended December 31, 2000, as compared to
1999.  Salaries  and  employee  benefit  expenses increased $213,000, or 18.17%,
primarily  as  a  result of additional staffing and the related employee benefit
programs.  Occupancy  and  equipment  expense  increased $16,000, or 8.21%, data
processing  expenses  increased $19,000, or 13.48%, and other operating expenses
increased  $30,000,  or  9.97%.  The  increase in salaries and employee benefits
resulted  primarily  from  costs  associated with staff additions, 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,  consulting  regarding  the purchase of the business of Rice Insurance
Agency,  Inc.,  and  the  reporting  requirements  of  a  public  company.

FEDERAL  INCOME  TAXES.  The  provision  for  federal  income taxes totaled
$361,000 for the year ended December 31, 2000, a decrease of $51,000, or 12.38%,
from  the $412,000 provision recorded in fiscal 1999.  HCFC's effective tax rate
decreased  to  26.64%  in  2000 from -----29.68% in 1999 which was primarily the
result  of  tax-exempt  income from insurance proceeds, investments and deferred
loan  costs.


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,
                                                       -----------------------

                                              2000                                   1999
                                              ----                                   ----

                                  Average      Interest                   Average      Interest
                              outstanding       earned/     Yield/    outstanding       earned/     Yield
                                  balance          paid       rate        balance          paid      rate
                              -----------      --------     ------    -----------      --------     -----
                                                        (Dollars in thousands)
<S>                               <C>           <C>         <C>           <C>           <C>         <C>
Interest-earning assets:
Interest-bearing demand deposits  $    261      $     13    5.15%         $    455      $     18     3.97%
Federal funds sold                     220            14    6.23                 0             0     0.00
Time deposits                           24             0    1.25                24             0     1.25
Investment securities (1)            4,887           287    5.87             3,911           195     4.97
Mortgage-backed securities             385            24    6.24               496            29     5.91
Loans receivable (2)               104,223         9,195    8.82            86,092         7,656     8.89
                                  --------      --------    -----         --------      --------
 Total interest-earning assets (3) 110,000         9,533    8.67            90,978         7,898     8.68

Noninterest-earning assets:
 Less: Allowance for loan losses      (499)                                   (494)
 Other non-earning assets            4,641                                   4,642
                                  --------                                   ------
   Total assets                   $114,142                                $ 95,126
                                  =========                               ========

Interest-bearing liabilities:
NOW accounts                      $  1,328            37    2.80%         $  1,176            32     2.71%
Money market accounts                  431            15    3.49               427            13     3.11
Passbook accounts                   12,381           480    3.87            11,708           391     3.34
Certificates of deposit             56,080         3,408    6.08            48,713         2,786     5.72
                                  --------      --------                  --------      --------
   Total deposits                   70,220         3,940    5.61            62,024         3.222     5.19

 Notes payable                           0             0       0               379            25     6.59
FHLB advances                       29,707         1,797    6.05            18,497         1,011     5.46%
                                  --------      --------    -----          -------      --------

Total interest-bearing liabilities  99,927         5,737    5.74%           80,900         4,258     5.26

Noninterest-bearing liabilities      2,944                                   3,195
                                  ---------                                -------
 Total liabilities                 102,871                                  84,095

Total shareholders' equity:         11,271                                  11,031
                                  --------                                 -------
 Total liabilities and
   shareholders' equity           $114,142                                $ 95,126
                                  ========                                ========

Net interest income; net interest               $  3,796    2.93%                         $3,640     3.42%
   rate spread                                  ========    =====                         ======     =====

Net interest margin (4)                                     3.45%                                    4.00%
                                                            =====                                    =====
Average interest-earning assets to
interest-bearing liabilities                              110.08%                                  112.46%
                                                          =======                                  =======
<FN>

(1)     Includes $33,000 and $33,000 of nontaxable municipal income recorded in 2000 and 1999, respectively. The tax-equivalent
yield  on  investments  is  7.10%  and  6.53%  for  2000  and  1999,  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  8.68%  and  8.70%  for  2000  and  1999,  respectively.
(4)     Net  interest  income  as  a  percent  of  average  interest-earning  assets.

<PAGE>
</TABLE>

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,
                                                                     -----------------------
                                                                2000 vs. 1999                   1999 vs. 1998
                                                                -------------                   -------------

                                                                      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-bearing demand deposits                        $       (8)  $        3   $   (5)  $    (4)  $   (3)  $   (7)
Federal funds sold                                               0           14       14        (3)       0       (3)
Time deposits                                                    0            0        0         0        0        0
Investment securities                                           48           44       92        (1)       7        6
Mortgage-backed and related securities                          (6)           1       (5)       (7)       0       (7)
Loans receivable                                             1,612          (73)   1,539     1,447    (346))   1,101
                                                       ------------  -----------  -------  --------  -------  -------
Total interest income                                        1,646          (11)   1,635     1,432     (342)   1,090

Interest expenses attributable to:
NOW accounts                                                     4            1        5        10        7       17
Money market accounts                                            0            2        2         4        0        4
Passbook savings accounts                                       23           66       89        69       66      135
Certificates of deposit                                        421          201      622       244     (126)     118
      Notes payable                                            (25)           0      (25)      (24)      (2)     (26)
Borrowed funds                                                 612          174      786       596      (72)     524
                                                        -----------  ----------  -------  --------  -------  -------
Total interest expense                                       1,035          444    1,479       899     (127)     772
                                                        -----------  ----------  -------  --------  -------  -------

Increase (decrease) in net interest income              $      611   $     (455)  $  156   $   533   $ (215)  $  318
                                                        ==========   ===========  =======  ========  =======  =======
</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
recently  adopted  by the OTS as part of its capital regulations.  Although Home
City is not currently subject to the NPV regulation because such regulation does
not  apply  to institutions with less than $300 million in assets and risk-based
capital  in excess of 12%, the application of the NPV methodology may illustrate
Home  City's  interest  rate  risk.

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,  2000, 2% of the economic value of Home City's assets was
approximately  $2.5 million. Because the interest rate risk of a 200 basis point
increase  in  market  rates  was  a $3.6 million decrease in NPV at December 31,
2000,  Home City would have been required to deduct $550,000 from its capital in
determining  whether  Home  City  met  its  risk-based  capital  requirement.

Presented  below,  as  of  December 31, 2000, 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, 2000
                                              --------------------

Change in interest rate    Board limit       $change       % change
(basis points)               % change         in NPV        in NPV
------------------------  ------------         ---------- ----------
                                    (Dollars in thousands)
<S>      <C>               <C>               <C>           <C>
         +300              (45)%             $(5,657)      (40)%
         +200              (25)               (3,660)      (26)
         +100              (10)               (1,712)      (12)
           0                 0                     0         0
         -100              (10)                1,221         9
         -200              (25)                2,719        19
         -300              (45)                4,549        32
</TABLE>

The  NPV table indicates that at each 100 basis point increment, the change
in  Home City's NPV that would have been caused by an increase in interest rates
was  either  within  or  slightly  over  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.



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,
                                                             ------------------------
                                                             2000                1999
                                                           --------           ---------
                                                              (Dollars in thousands)
<S>                                                       <C>                 <C>
Net income                                                $    994            $    976
Adjustments to reconcile net income to net cash
from operating activities                                      821                 831
                                                          ---------           ---------
Net cash provided by operating activities                    1,815               1,807
Net cash used in investing activities                      (17,254)            (21,984)
Net cash provided by financing activities                   13,549              21,750
                                                          ---------           ---------
Net change in cash and cash equivalents                     (1,890)              1,573
Cash and cash equivalents at beginning of year               3,483               1,910
                                                          ---------           ---------
Cash and cash equivalents at end of year                  $  1,593            $  3,483
                                                          =========           =========
</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  presently  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 equal to 4% of
the  sum  of  Home  City's  average  daily  balance  of net withdrawable deposit
accounts and borrowings payable in one year or less.  The liquidity requirement,
which  may  be changed from time to time by the OTS to reflect changing economic
conditions,  is  intended  to  provide  a source of relatively liquid funds upon
which  Home  City  may  rely  if  necessary to fund deposit withdrawals or other
short-term  funding  needs.  At  December  31,  2000,  Home  City's  regulatory
liquidity ratio was 5.41%.  At such date, Home City had commitments to originate
loans totaling $13.4 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,  2000  and  1999.

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  $532,000  at  December  31,  2000.

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,  2000:

<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     $10,831    8.84%        $ 1,837     1.50%      $ 8,994   7.34%         $122,477
Core capital          10,831    8.84           4,899     4.00         5,932   4.84           122,477
Risk-based capital    11,759   12.89           7,296     8.00         4,463   4.89            91,195

</TABLE>


On February 8, 2000, Home City committed to capital expenditures of $2.8 million
for  the  construction  of  a  new  main  office  and  operations  center.

NEW  LEGISLATION

On  November  12,  1999,  the  Gramm-Leach-Bliley  Act  (the "GLB Act") was
enacted into law.  The GLB Act repealed prior laws which had generally prevented
banks  from  affiliating  with  securities  and  insurance firms and makes other
significant  changes  in  the  financial  services  in  which  various  types of
financial  institutions  may  engage.

Prior  to the GLB Act, unitary savings and loan holding companies which met
certain  requirements were the only financial institution holding companies that
were  permitted  to  engage in any type of business activity, whether or not the
activity  was a financial service.  The GLB Act continues those broad powers for
unitary  thrift  holding  companies in existence on May 4, 1999, including HCFC.
Any thrift holding company formed after May 4, 1999, however, will be subject to
the  same restrictions as multiple thrift holding companies, which generally are
limited  to  activities  that  are  considered  incidental  to  banking.

The  GLB  Act  authorizes  a new "financial holding company," which can own
banks  and  thrifts  and  which  are  also  permitted  to engage in a variety of
financial activities, including insurance and securities underwriting and agency
activities, as long as the depository institutions it owns are well capitalized,
well  managed  and  meet  certain  other  tests.

The  GLB Act is not expected to have a material effect on the activities in
which Home City and HCFC currently engage, except to the extent that competition
from  other  types  of  financial  institutions  may  increase as they engage in
activities  not  permitted  prior  to  enactment  of  the  GLB  Act.

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

                          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, 2000 and 1999, 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 generally accepted auditing
standards.  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, 2000 and 1999, and the
consolidated results of their operations and their cash flows for the years then
ended  in  conformity  with  generally  accepted  accounting  principles.

Dixon,  Francis,  Davis
&  Company
Granville,  Ohio
January  29,  2001

<TABLE>
<CAPTION>

HOME CITY FINANCIAL CORPORATION - CONSOLIDATED BALANCE SHEETS



                                                                        (Dollars in thousands)
                                                                             December 31,
                                                                        -----------------------
                                                                        2000             1999
                                                                       ------           ------
ASSETS
-------------------------------------------------------------
<S>                                                                    <C>              <C>
Cash and cash equivalents
 Cash and due from banks                                               $  1,248         $  3,201
 Interest-bearing demand deposits in other banks                             72              282
 Federal funds sold                                                         273                0
                                                                       --------         --------
   Total cash and cash equivalents                                        1,593            3,483

Time deposits with original maturities of 90 days or more                    24               24
Investment securities available-for-sale, at fair value                   3,619            3,045
Mortgage-backed securities available-for-sale, at fair value                460              424
Loans, net                                                              110,945           96,844
Stock in Federal Home Loan Bank                                           1,779            1,372
Accrued interest receivable                                                 670              520
Properties and equipment                                                  2,281            1,015
Cash surrender value of life insurance                                    1,073            1,181
Deferred income taxes                                                         0               18
Goodwill                                                                    490                0
Other assets                                                                588               63
                                                                       --------         --------

   TOTAL ASSETS                                                        $123,522         $107,989
-------------------------------------------------------------          =========        ========

LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------------------------------------------
LIABILITIES
Deposits                                                               $ 75,077         $ 69,671
Federal Home Loan Bank advances                                          34,951           26,505
Note payable                                                                390                0
Accrued interest payable                                                    227              177
Advance payments by borrowers for taxes and insurance                       144              119
Deferred income taxes                                                       127                0
Other liabilities                                                           800              301
                                                                       --------         --------


   TOTAL LIABILITIES                                                    111,716           96,773
-------------------------------------------------------------

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                                                6,026            6,033
Retained earnings, substantially restricted                               7,934            7,288
Treasury shares, at cost                                                 (1,886)          (1,516)
Accumulated other comprehensive income                                      449              309
Common shares purchased by:
 Employee Stock Ownership Plan                                             (457)            (533)
 Recognition and Retention Plan                                            (260)            (365)
                                                                       --------          --------

   TOTAL SHAREHOLDERS' EQUITY                                            11,806           11,216
-------------------------------------------------------------          --------          --------

   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $123,522          $107,989
                                                                       ========          ========
</TABLE>




See  accompanying  notes.
<TABLE>
<CAPTION>





              HOME CITY FINANCIAL CORPORATION - CONSOLIDATED STATEMENTS OF INCOME



                                                            (Dollars in thousands)
                                                            Year ended December 31,
                                                             -----------------------
                                                          2000                1999
                                                        --------            --------
INTEREST  INCOME
<S>                                                      <C>                <C>
Loans                                                    $9,195             $7,656
Mortgage-backed securities                                   24                 29
Investment securities                                       287                195
Interest-bearing demand deposits                             13                 18
Federal funds sold                                           14                  0
                                                         ------             -------

 TOTAL INTEREST INCOME                                    9,533              7,898

INTEREST EXPENSE

Deposits                                                  3,940              3,222
Borrowed funds                                            1,797              1,036
                                                         ------             -------

 TOTAL INTEREST EXPENSE                                   5,737              4,258
                                                         ------             -------

 NET INTEREST INCOME                                      3,796              3,640
Provision for loan losses                                   110                 34
                                                         ------             -------

 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES      3,686              3,606

NONINTEREST INCOME
Service charges on deposits                                  22                 16
Life insurance                                              158                 75
Gain on sale of securities, net                              64                  0
Other income                                                 54                 32
                                                         ------             -------

 TOTAL NONINTEREST INCOME                                   298                123

NONINTEREST EXPENSES
Salaries and employee benefits                            1,385              1,172
Supplies, telephone and postage                              85                 76
Occupancy and equipment                                     211                195
FDIC deposit insurance                                       14                 36
Data processing                                             160                141
Legal, accounting and examination                           306                255
Franchise taxes                                             137                165
Other expenses                                              331                301
                                                         ------             -------

 TOTAL NONINTEREST EXPENSES                               2,629              2,341
                                                         ------             -------

 NET INCOME BEFORE FEDERAL INCOME TAX EXPENSE             1,355              1,388


Federal income tax expense                                  361                412
                                                         ------             -------

 NET INCOME                                              $  994             $  976
                                                         ======             =======

Earnings per common share - basic                        $ 1.32             $ 1.25
Earnings per common share - diluted                      $ 1.21             $ 1.12

</TABLE>

<TABLE>
<CAPTION>


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

                                           Number of shares
                               --------------------------------------

                                                             Common      Common
                                                             shares      shares
                                    Common     Treasury    purchased    purchased
                                    shares      shares      by ESOP      by RRP
                                   --------   ----------  -----------  -----------
<S>                                <C>         <C>         <C>          <C>
December 31, 1998                  952,200     (92,810)    (60,940)     (19,041)
Net income
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $108
Comprehensive income
Purchase of treasury shares                    (16,000)
Purchase of common shares
 by Recognition and
 Retention Plan                                                           (2,500)
Shares allocated under
 Employee Stock
 Ownership Plan                                              7,618
Shares earned under
 Recognition and
 Retention Plan                                                            4,761
Dividends declared
 ($.405 per share)

December 31, 1999                  952,200     (108,810)   (53,322)      (16,780)

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

December 31, 2000                 952,200      (138,200)   (45,704)      (10,758)
                                  =======      =========   ========      ========

                                                                       Accumu-
                                                                        lated
                                                                        other     Common     Common
                                Additional                             compre-    shares     shares     Compre-
                                  paid-in     Retained    Treasury     hensive  purchased   purchased   hensive
                                  capital     earnings     shares      income    by ESOP     by RRP     income
                                ----------    --------    --------     -------  ---------   ---------   -------

<S>                              <C>         <C>         <C>           <C>       <C>         <C>         <C>
December 31, 1998                $6,013      $6,658      $(1,304)      $ 517     $(609)      $(405)

Net income                                      976                                                      $ 976
Other comprehensive income
 Change in unrealized
 gain (loss) on securities
 available-for-sale, net of
 deferred income
 tax of $108                                                            (208)                             (208)
                                                                                                          -----
Comprehensive income                                                                                      $768
                                                                                                          =====
Purchase of treasury shares                                 (212)
Purchase of common shares
 by Recognition and
 Retention Plan                                                                                 (43)
Shares allocated under
 Employee Stock
 Ownership Plan                      26                                             76
Shares earned under
 Recognition and
 Retention Plan                      (6)                                                         83
Dividends declared
 ($.405 per share)                             (346)
                                 ------      -------      -------     -------    ------      -------

December 31, 1999                $6,033      $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                                                                                    $1,134
                                                                                                        ======
Purchase of treasury shares                                  (370)
Shares allocated under
 Employee Stock
 Ownership Plan                                                                     76
Shares earned under
 Recognition and
 Retention Plan                      (7)                                                       105
Dividends declared
 ($.425 per share)                             (348)
                                 -------     -------       -------    ------     ------      ------

December 31, 2000                $6,026      $7,934       $(1,886)    $ 449      $(457)      $(260)
                                 ======      =======      ========    ======     ======      ======

</TABLE>
-----------------------
See accompanying notes.
<TABLE>
<CAPTION>
                HOME CITY FINANCIAL CORPORATION - CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                  (Dollars in thousands)
                                                                                  Year ended December 31,
                                                                                 -------------------------
                                                                                   2000               1999
                                                                                 -------            -------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                              <C>                <C>
Net income                                                                       $   994            $   976
Adjustments to reconcile net income to net cash
 provided by operating activities:
   Premium amortization, net of discount accretion                                     1                 (4)
   Provision for loan losses                                                         110                 34
   (Gain) loss on sale of securities                                                 (64)                 0
   Depreciation                                                                       78                 70
   Deferred income taxes                                                              73                (42)
   Life insurance income, net of expenses                                            109                (52)
   Employee Stock Ownership Plan compensation expense                                 76                101
   Recognition and Retention Plan compensation expense                                98                 77
 FHLB stock dividends                                                               (110)               (66)
 Proceeds from sales of loans                                                        577                750
 Net change in:
   Accrued interest receivable                                                      (150)               (80)
   Accrued interest payable                                                           49                 62
   Other assets                                                                     (525)                (6)
   Other liabilities                                                                 499                (13)
                                                                                ---------          ---------
 Net cash provided by operating activities                                         1,815              1,807

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available-for-sale                                        (1,817)            (1,777)
Proceeds from sales of securities available-for-sale                               1,450                236
Proceeds from maturities of securities available-for-sale                             55              1,276
Collections on mortgage-backed securities available-for-sale                          88                128
Acquisition of insurance agency                                                     (490)                 0
Net increase in loans                                                            (14,788)           (20,642)
Purchases of properties and equipment                                             (1,344)              (501)
Purchase of FHLB stock                                                              (408)              (704)
                                                                                ----------         ---------
 Net cash used in investing activities                                           (17,254)           (21,984)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits                                                           5,406              9,172
Net change in short-term FHLB advances                                             3,700               (713)
Proceeds from new long-term FHLB advances                                         13,725             16,065
Payments on long-term FHLB advances                                               (8,979)              (418)
Proceeds from long-term debt                                                         390                  0
Repayment on short-term debt                                                           0             (1,800)
Net change in advance payments by borrowers for taxes and insurance                   25                 45
Purchase of common shares for Recognition and Retention Plan                           0                (43)
Purchase of treasury shares                                                         (370)              (212)
Cash dividends paid                                                                 (348)              (346)
                                                                                 --------           --------
 Net cash provided by financing activities                                        13,549             21,750
                                                                                 --------           --------

 Net increase (decrease) in cash and cash equivalents                             (1,890)             1,573

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                     3,483              1,910
                                                                                 --------           --------

CASH AND CASH EQUIVALENTS AT END OF YEAR                                         $ 1,593            $ 3,483
                                                                                 =======            ========
</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,  2000  and  1999:

<TABLE>
<CAPTION>



                                                     (Dollars in thousands)

                                                     2000              1999
                                                    ------            ------
<S>                                                 <C>               <C>
Cash paid during the year for interest              $5,690            $4,196
Cash paid during the year for income taxes             363               517

</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.  No amortization
expense  was  charged  to  operations  for  2000.

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 2000 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.

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, 2000                             At December 31, 1999
                                               --------------------                             --------------------


                                                   Gross         Gross                            Gross        Gross
                                    Amortized   unrealized    unrealized    Fair   Amortized   unrealized    unrealized    Fair
                                       cost        gains        losses     value      cost        gains        losses     value

Investment securities
----------------------------------
<S>                                 <C>         <C>          <C>           <C>     <C>         <C>          <C>           <C>
Federal
  agencies                          $    1,292  $         5  $        (2)  $1,295  $    1,890  $         0  $       (25)  $1,865

State &
 municipal
 securities                                997           12           (3)   1,006         642            4          (17)     629

Equity securities                          647          674           (3)   1,318          39          512            0      551
                                    ----------  -----------  ------------  ------  ----------  -----------  ------------  ------


Total investment        securities       2,936          691           (8)   3,619       2,571          516          (42)   3,045

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

GNMA and
 FNMA
 certificates                              462            2           (4)     460         429            0           (5)     424
                                    ----------  -----------  ------------  ------  ----------  -----------  ------------  ------

Total securities                    $    3,398  $       693  $       (12)  $4,079  $    3,000  $       516  $       (47)  $3,469
                                    ==========  ===========  ============  ======  ==========  ===========  ============  ======
</TABLE>

The  amortized  cost  and  estimated  fair  value  of  investment  securities
available-for-sale  at  December  31,  2000,  by  contractual  maturity,  are as
follows:

<TABLE>
<CAPTION>



                                                           (Dollars in thousands)
                                                   Investment              Mortgage-backed
                                                   securities                 securities
                                                   -----------             ---------------
                                          Amortized          Fair        Amortized    Fair
                                            cost            value           cost     value
                                         ----------        ------       ----------   -----
<S>                                       <C>               <C>          <C>        <C>
One year or less                          $  170            $  170       $    0     $    0
After one year through five years          1,634             1,642            0          0
After five years                             485               489          462        460
Equity securities                            647             1,318            0          0
                                          ------            -------      ------     -------

Total                                     $2,936            $3,619       $  462     $  460
                                          ======            ======       ======     =======
</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 $314,000 and
$500,000  were  pledged  at  December 31, 2000 and 1999, respectively, to secure
certain  deposits.

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.  During 1999, the corporation sold
securities  available-for-sale  for  total  proceeds  of approximately $236,000,
resulting  in  no  gross  realized  gains  or  losses.


NOTE  D  -  LOANS

Loans  at  December  31,  2000  and  1999,  are  summarized  as  follows:

<TABLE>
<CAPTION>



                                                                           (Dollars in thousands)

                                                                              2000       1999
                                                                            ---------  --------
<S>                                                                         <C>        <C>
Loans secured by real estate:
 One- to four-family residential properties                                 $ 58,525   $50,771
 Multifamily (five or more) residential properties                             4,197     2,249
 Nonresidential properties                                                    25,941    21,464
 Land                                                                            868     1,392
 Construction                                                                  4,692     5,580
Consumer                                                                       6,933     6,490
Commercial                                                                    10,321     9,389
                                                                            ---------  --------

Total                                                                        111,477    97,335
Allowance for loan losses                                                       (532)     (491)
                                                                            ---------  --------

Net loans                                                                   $110,945   $96,844
                                                                            =========  ========
</TABLE>

<TABLE>
<CAPTION>



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

                                                               2000    1999
                                                              ------  ------
<S>                                                           <C>     <C>
Balance, beginning of year                                    $ 491   $ 486

Provision for loan losses                                       110      34
Loans charged off                                               (69)    (31)
Recoveries                                                        0       2
                                                              ------  ------

Balance, end of year                                          $ 532   $ 491
                                                              ======  ======
</TABLE>

At  December  31, 2000 and 1999, 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 $16,000 for the years ended
December  31, 2000 and 1999, respectively.  Interest income on impaired loans of
$0 and $0 was recognized for cash payments received for the years ended December
31, 2000 and 1999.  At December 31, 2000 and 1999, the bank had nonaccrual loans
of  approximately  $72,000  and $193,000, respectively, for which impairment had
not  been  recognized.

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

At December 31, 2000 and 1999, the bank serviced loans for others with principal
balances  of  $1,990,000  and  $1,694,000,  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, 1999   $1,061

New loans                         6
Payments                       (104)
                             -------

Balance, December 31, 2000   $  963
                             =======
</TABLE>


NOTE  E  -  PROPERTIES  AND  EQUIPMENT

A  summary  of  properties  and equipment at December 31, 2000 and 1999 follows:

<TABLE>
<CAPTION>



                                              (Dollars in thousands)

                                                     2000     1999
                                                    -------  -------
<S>                         <C>                     <C>      <C>
Land                                                $  114   $  114
Buildings and improvements                             442      442
Equipment                                              592      543
Construction in process                              1,709      421
                                                    -------  -------

                                                     2,857    1,520
Accumulated depreciation                              (576)    (505)
                                                    -------  -------

Total                                               $2,281   $1,015
                                                    =======  =======
</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 2001.  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
outside  directors.  The  bank is the beneficiary of such policies.  At December
31,  2000  and  1999,  there  were  no  notes  payable to the insurance company.

NOTE  G  -  DEPOSITS

Deposit  account  balances  at  December  31,  2000  and 1999, are summarized as
follows:

<TABLE>
<CAPTION>

                                                 (Dollars in thousands)
                                                2000                   1999
                                               ------                 ------
                                         Amount     Percent      Amount   Percent
                                        -------    --------     -------   -------
<S>                                     <C>          <C>        <C>         <C>
Noninterest-bearing accounts            $ 2,102      2.8%       $ 1,912     2.7%
NOW and money market accounts             1,660      2.2%         1,480     2.1%
Savings accounts                         12,192     16.2%        12,241    17.6%
Certificates of deposit                  59,123     78.8%        54,038    77.6%
                                        -------     -----       -------    -----

Totals                                  $75,077    100.0%       $69,671   100.0%
                                        =======    ======       =======   ======
</TABLE>

The  aggregate  amount  of  jumbo  certificates  of deposit, each with a minimum
denomination  of  $100,000,  was  approximately  $15,444,000  and $12,682,000 at
December  31,  2000  and 1999, respectively.  Deposits in excess of $100,000 are
not  insured  by  the  FDIC.

At December 31, 2000, the scheduled maturities of certificates of deposit are as
follows:

                                                          (Dollars in thousands)

<TABLE>
<CAPTION>
<S>                                               <C>                  <C>
                                                  2001                  $28,733
                                                  2002                   23,392
                                                  2003                    6,488
                                                  2004                      379
                                                  2005 and thereafter       131
                                                                        -------

                                                  Total                 $59,123
                                                                        =======
</TABLE>

The  bank  held related party deposits of approximately $847,000 and $740,000 at
December  31,  2000  and  1999,  respectively.

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        2000     1999
                                                                  ------------  --------  -------
<S>                                                                  <C>        <C>        <C>
Variable-rate advances, with monthly interest payments:
 Advance due in 2001                                                 6.75%      $  4,700  $     0
 Advance due in 2003                                                 6.58%         1,500    1,500
 Advance due in 2007                                                 6.57%         1,825    1,600
 Advance due in 2008                                                 6.39%         5,000    5,000
 Advance due in 2009                                                 5.74%         9,500   12,500
 Advance due in 2010                                                 6.40%         8,000        0

Fixed-rate advances, with monthly principal
and interest payments:
 Advance due in 2000                                                   --              0    1,047
 Advance due in 2001                                                 6.30%            61      131
 Advance due in 2002                                                 6.95%           728      728
 Advance due in 2003                                                 6.40%           692      745
 Advance due in 2004                                                 8.35%           240      300
 Advance due in 2005                                                 8.30%           489      581
 Advance due in 2006                                                 6.54%         1,674    1,809
 Advance due in 2010                                                 3.30%           542      564
                                                                                   -----    -----

Total Federal Home Loan Bank advances                                 6.29%      $34,951  $26,505
                                                                                 =======  =======

</TABLE>

FHLB  advances  are collateralized by all shares of FHLB stock owned by the bank
(totaling  $1,779,300)  and  by  a portion of the bank's mortgage loan portfolio
(totaling  approximately  $44,650,000).  As  of  December 31, 2000, the bank had
approximately  an  additional $16,999,000 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
$49,319,000.

The  aggregate  minimum  future  annual  principal payments on FHLB advances are
$5,136,000  in  2001,  $1,116,000 in 2002, $2,414,000 in 2003, $349,000 in 2004,
and  $25,936,000  after  2004.

NOTE  I  -  NOTE  PAYABLE

The  following  is  a  summary  of long-term debt at December 31, 2000 and 1999.

<TABLE>
<CAPTION>

                                                           (Dollars in thousands)

                                                            2000            1999
                                                           ------          -----
<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                                            $  390          $   0
                                                           ======          =====
</TABLE>

NOTE  J  -  FEDERAL  INCOME  TAXES

The  components of income tax expense (benefit) for the years ended December 31,
2000,  1999  and  1998  are  as  follows:

<TABLE>
<CAPTION>

                                          (Dollars in thousands)
                                          2000     1999     1998
                                        -------   ------   ------
<S>                                     <C>       <C>      <C>
Federal income tax expense
 Current tax expense                    $  275    $ 454    $ 456
 Deferred tax expense (benefit)             86      (42)      (9)
                                        ------    -----    ------

 Total                                  $  361    $ 412    $ 447
                                        ======    =====    ======
</TABLE>

A  reconciliation  of  the  federal  statutory  tax  rate  to  the corporation's
effective  tax rate for the years ended December 31, 2000, 1999 and 1998, are as
follows:

<TABLE>
<CAPTION>

                                                      2000   1999   1998
                                                      -----  -----  -----
<S>                                                   <C>    <C>    <C>
Federal income tax statutory rate                     34.0%  34.0%  34.0%

 Tax-exempt income, less disallowed interest expense  (3.8)  (2.5)  (1.9)
 Other, net                                           (3.5)  (1.8)  (0.1)
                                                      -----  -----  -----

Actual effective income tax rate                      26.7%  29.7%  32.0%
                                                      =====  =====  =====
</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,  2000  and  1999  are  as  follows:

<TABLE>
<CAPTION>



                                                                 (Dollars in thousands)
                                                                 2000             1999
                                                                ------           ------
<S>                                                            <C>              <C>
Deferred tax assets
 Nonaccrual loan interest                                      $    1           $    2
 Allowance for loan losses                                        158              149
 Employee benefits                                                 96               86
 Other                                                              0               38
                                                               ------           -------

                                                                  255              275
                                                               ------           -------

Deferred tax liabilities
 Accumulated depreciation                                         (41)             (39)
 Net deferred loan costs                                         (109)             (59)
 Net unrealized gain on securities available-for-sale            (232)            (159)
                                                               ------           --------

                                                                 (382)            (257)
                                                               -------          --------

Total net deferred tax assets (liabilities)                    $ (127)           $  18
                                                               =======          ========
</TABLE>

Included  in  retained  earnings at December 31, 2000 and 1999, 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 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.  EPS
for  periods  prior  to 1997 are not presented because the bank did not complete
its  Reorganization  until December 30, 1996.  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 released 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>

                                                       2000     1999
                                                      -------  -------
<S>                                                   <C>      <C>
Weighted-average common shares outstanding - basic    751,216  776,547

Effect of dilutive securities on number of shares

RRP shares                                             15,294   20,208
ESOP shares                                            53,322   60,940
Stock options                                               0   17,497
                                                      -------  -------

Total dilutive securities                              68,616   98,645
                                                      -------  -------

Weighted-average common shares outstanding - diluted  819,832  875,192
                                                      =======  =======
</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, 2000
and  1999,  was  $28,000  and  $15,000,  respectively.

PENSION  PLAN
The  bank  withdrew  its  participation in the Financial Institutions Retirement
Fund  (the  'Fund")  effective  January  1,  2000, 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,  2000  and  1999,  was  $0  and  $53,000,  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, 2000
and  1999,  was  $59,000  and  $53,000,  respectively.

NOTE  N  -  STOCK  REPURCHASE  PROGRAM

During 2000, the corporation received regulatory approval to repurchase up to 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.  During
1999,  the  corporation previously received regulatory approval to repurchase 5%
of  its  outstanding  shares.  During  the  year ended December 31, 1999, 16,000
common  shares  were  repurchased  at  an  average  price  of  $13.25 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, 2000 and
1999,  was  $99,000  and  $75,000,  respectively.  Shares  held  by  the ESOP at
December  31,  2000  and  1999,  are  as  follows:

<TABLE>
<CAPTION>

                                    2000       1999
                                  ---------  ---------
<S>                               <C>        <C>
Allocated shares                    26,634     15,236
Shares allocated                    11,280      9,448
Additional shares acquired               0      2,051
Shares distributed                       0       (101)
                                  ---------  ---------

 Total allocated shares             37,914     26,634
                                  ---------  ---------

Unallocated shares                  66,137     60,940
 Shares released for allocation    (11,280)    (9,448)
Additional shares acquired               0     14,645
                                  ---------  ---------

 Total unallocated shares           54,857     66,137
                                  ---------  ---------

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

Fair value of unallocated shares  $514,000   $827,000
                                  =========  =========
</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, 2000 and 1999, was $110,000 and $85,000, 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>

                                          Weighted-
                                           average
                               Number of   exercise
                                shares      price
                               ---------  ----------
<S>                            <C>        <C>
Outstanding December 31, 1998     98,565  $    11.70
 Granted                               0        0.00
 Exercised                             0        0.00
 Canceled                              0        0.00
                               ---------  ----------
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
                               =========  ==========
</TABLE>

At  December  31, 2000, 32,857 shares were available for future grants under the
SOP.

Additional information regarding options outstanding as of December 31, 2000, is
as  follows:

<TABLE>
<CAPTION>

                                     Weighted-average
Exercise     Options      Options       remaining
price      outstanding  exercisable  contractual life
---------  -----------  -----------  ----------------
<S>        <C>          <C>          <C>
11.70          98,565       61,762         6.8 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>

OCTOBER 1997 GRANT
<S>                       <C>
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:                                          2000       1999
                                                   -------    ------

 As reported                                        $ 994      $ 976
 Pro forma                                          $ 994      $ 935
Earnings per common share - basic
 As reported                                       $ 1.32      $1.25
 Pro forma                                         $ 1.32      $1.20
Earnings per common share - diluted
 As reported                                       $ 1.21      $1.12
 Pro forma                                         $ 1.21      $1.07
</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,
2000,  the  bank's  capital  exceeded  all  of  such  requirements.

As of December 31, 2000, 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,  2000:

<TABLE>
<CAPTION>

                                                                       (Dollars in thousands)
                                                                     Risk-based          Tier I
                                                                       capital           capital
                                                                     -----------        --------
<S>                                                                    <C>               <C>
Equity per GAAP                                                        $11,281           $11,281
Less unrealized gain on securities available-for-sale,
 net of applicable income taxes                                           (450)             (450)
Less equity investments                                                   (180)                0
Plus allowance for loan losses                                             532                 0
Plus unrealized gains on equity securities available-for-sale              576                 0
                                                                       --------          --------

Regulatory capital                                                     $11,759           $10,831
                                                                       =======           ========
</TABLE>

<TABLE>
<CAPTION>

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

                                                 (Dollars in thousands)

                                                                            To be well
                                                    Minimum required    capitalized under
                                                       for capital      Prompt Corrective
                                      Actual        adequacy purposes   Action Provisions
                                      ------        -----------------   -----------------
                                Amount     Ratio    Amount     Ratio    Amount     Ratio
                                ------     -----    ------     -----    ------     -----
<S>                            <C>        <C>      <C>        <C>      <C>        <C>
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


As of December 31, 1999:
 Total Risk-Based Capital
   (to Risk-Weighted Assets)  $11,014     14.9%    $ 5,932    8.0%     $ 7,415    10.0%
 Tier I Capital
   (to Risk-Weighted Assets)   10,523      9.7%        N/A     N/A       4,449     6.0%
 Tier I Capital
   (to Total Assets)           10,523      9.7%      4,348    4.0%       5,435     5.0%
 Tangible Capital
   (to Total Assets)           10,523      9.7%      1,630    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.

The  bank  had  outstanding  commitments  to  originate  loans  as  follows:

<TABLE>
<CAPTION>

                                         (Dollars in thousands)
                            At December 31, 2000            At December 31, 1999
                            --------------------            --------------------


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

Undisbursed balance
of loans closed-
<S>                      <C>       <C>          <C>      <C>       <C>         <C>
 mortgage loans          $1,315    $    0      $ 1,315   $4,438    $    0     $ 4,438
First mortgage
 loans                    2,899        98        2,997      316       259         575
Consumer and
 other loans                125       873          998       81         0          81
Open-end consumer loans       0     2,429        2,429        0     1,455       1,455
Commercial loans            500     5,140        5,640        0     4,672       4,672
                         ------    ------       ------     ----    ------      -------

Total                    $4,839    $8,540      $13,379   $4,835    $6,386     $11,221
                         ======    =======     =======   ======    ======     ========
</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 two of these institutions exceeded Federally insured limits.
The  amount  in  excess  of  the  FDIC  limit  totaled  $777,000.

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.

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

<TABLE>
<CAPTION>

                                            (Dollars in thousands)
                                                  DECEMBER  31,
                                 --------------------------------------------
                                          2000                  1999
                                          ----                  ----

                                 Carrying       Fair    Carrying      Fair
                                   amount      value      amount     value
                                 --------      -----    --------     -----
<S>                              <C>        <C>        <C>          <C>
Financial assets:
 Cash and cash equivalents        $  1,593   $  1,593   $  3,483     $  3,483
 Time deposits                          24         23         24           21
 Investment securities               3,619      3,619      3,045        3,045
 Mortgage-backed securities            460        460        424          424
 Loans                             110,945    112,074     96,844       98,066
 Stock in Federal Home Loan Bank     1,779      1,779      1,372        1,372
 Accrued interest receivable           670        670        520          520
 Life insurance                      1,073      1,073      1,181        1,181

Financial liabilities:
 Deposits                           75,077     75,063     69,671       70,485
 Borrowed funds                     34,951     34,901     26,505       26,531
 Accrued interest payable              227        227        177          177

</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.

NOTE  S  -  PARENT  COMPANY  FINANCIAL  INFORMATION

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

<TABLE>
<CAPTION>



                                BALANCE SHEETS
                                                         (Dollars in thousands)

                                                               December 31,
                                                               ------------

                                                          2000            1999
                                                          ----            ----
<S>                                                     <C>             <C>
Assets
Interest-bearing savings deposit with subsidiary bank   $   179         $   202
Investment in subsidiary bank                            11,281          10,860
Investment in insurance agency                              150               0
Other assets                                                199             158
                                                        -------         -------

 Total assets                                           $11,809         $11,220
                                                        =======         =======

Liabilities and shareholders' equity
Accrued expense and other liabilities                   $     3         $     4
Shareholders' equity                                     11,806          11,216
                                                        -------         -------

 Total liabilities and shareholders' equity             $11,809         $11,220
                                                        =======         =======
</TABLE>

<TABLE>
<CAPTION>
                                  STATEMENTS OF INCOME
                                                         (Dollars in thousands)

                                                        Year ended December 31,
                                                        -----------------------
<S>                                                      <C>            <C>
                                                           2000           1999
                                                           ----           ----
Income
Dividends from subsidiary bank                           $    800        $  2,390
Interest income                                                52              60
Other income                                                    1               0
                                                         --------        --------
 Total income                                                 853           2,450

Expense
Interest expense                                                0              25
Other expense                                                 154             139
                                                         --------        --------
 Total expense                                                154             164
                                                         --------        --------
Income before income taxes and undistributed
 earnings of subsidiaries                                     699           2,286
Income tax benefit                                            (24)            (35)
                                                         --------        --------
Income (loss) before undistributed earnings of subsidiaries   723           2,321
Undistributed earnings of subsidiaries                        271          (1,345)
                                                         --------        --------
 Net income                                              $    994        $    976
                                                         ========        ========

</TABLE>

<TABLE>
<CAPTION>

                              STATEMENTS OF CASH FLOWS
                                                           (Dollars in thousands)
                                                                  Year ended
                                                                 December 31,
                                                           ----------------------
<S>                                                       <C>             <C>
                                                             2000            1999
                                                             ----            ----
Cash flows from operating activities
Net income from operating activities                       $    994       $    976
Adjustments to reconcile net income to net cash
 flows from operating activities:
Equity in undistributed earnings of subsidiaries               (271)         1,345
Deferred income taxes                                             0              2
Compensation expense for ESOP                                    76            101
Compensation expense for RRP                                     98             77
Net increase in other assets                                    (41)           (45)
Net decrease in other liabilities                                (1)            (4)
                                                           ---------      ---------
 Net cash from operating activities                             855          2,452

Cash flows from financing activities
Payments on notes payable                                         0         (1,800)
Purchase of insurance agency                                   (160)             0
Purchase of treasury shares                                    (370)          (212)
Purchase of common shares by RRP                                  0            (43)
Cash dividends paid                                            (348)          (346)
                                                           ---------      ---------
 Net cash used in financing activities                         (878)        (2,401)

Net increase (decrease) in cash and cash equivalents            (23)            51
Cash and cash equivalents at beginning of year                  202            151
                                                           ---------      ---------

 Cash and cash equivalents at end of year                  $    179       $    202
                                                           =========      =========

</TABLE>

NOTE  T  -  QUARTERLY  FINANCIAL  DATA  (UNAUDITED)

<TABLE>
<CAPTION>

                                           (Dollars in thousands, except per share data)
                                                First     Second    Third     Fourth
                                               Quarter   Quarter   Quarter   Quarter
                                               --------  --------  --------  --------
<S>                                            <C>       <C>       <C>       <C>
Year ended December 31, 2000:
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

Year ended December 31, 1999:
Interest income                                $  1,826  $  1,920  $  2,000  $  2,152
Interest expense                                    968     1,009     1,081     1,200
                                               --------  --------  --------  --------
 Net interest income                                858       911       919       952

Provision for loan losses                            17        12         5         0
Other income                                         21        38        31        33
Other expense                                       539       582       576       644
Provision for income taxes                          104       105       110        93
                                               --------  --------  --------  --------
 Net income                                    $    219  $    250  $    259  $    248
                                               ========  ========  ========  ========

Earnings per share - basic                     $   0.28  $   0.32  $   0.33  $   0.32
Earnings per share - diluted                   $   0.25  $   0.28  $   0.30  $   0.29
Weighted-average common
 shares outstanding                             778,465   776,909   776,909   773,904

</TABLE>

NOTE  U  -  BUSINESS  COMBINATION

On December 1, 2000, the corporation's newly formed insurance agency subsidiary,
Home  City  Insurance  Agency,  Inc.,  acquired  the  book of business from Rice
Insurance  Agency,  Inc., Springfield, Ohio, in a business combination accounted
for  as a purchase.  The agency is an Ohio corporation, primarily engaged in the
selling  of  insurance  products.  The  results  of operations of the agency are
included in the accompanying financial statements since the date of acquisition.
The  total cost of the acquisition was $540,000, which exceeds the fair value of
the net assets of Rice Insurance Agency, Inc. included in the purchase agreement
by  $490,000.

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 23, 2001, 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
        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
        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

        A  Form 8-K Current Report was filed with the Securities and Exchange
        Commission on  December  1, 2000, reporting the acquisition of the
        business of Rice Insurance  Agency,  Inc.

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


3/26/01                                      3/26/01
----------------------------                 ------------------------------
Date                                         Date


/s/  James  Foreman                          /s/  Terry  A.  Hoppes


____________________________                 _____________________________
James  Foreman                               Terry  A.  Hoppes
Director                                     Director


3/26/01                                      3/26/01
----------------------------                 ------------------------------
Date                                         Date


/s/  Douglas  L.  Ulery                      /s/  Charles  A.  Mihal


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


3/26/01                                      3/26/01
----------------------------                 -----------------------------
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 ended March 31,
                                            1997 (the "March 31, 1997, 10-QSB")
                                            Exhibit 3(I).


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



10.1 Employment Agreement with Mr. Ulery

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

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

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

21   Subsidiaries of Home City Financial
     Corporation

99.1 Proxy  Statement                       Incorporated by reference to the
                                            definitive Proxy Statement of the
                                            Registrant for the 2001 Annual
                                            Meeting of 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