HARVEST HOME FINANCIAL'S ANNUAL REPORT TO STOCKHOLDERS FOR THE 
                   FISCAL YEAR ENDING SEPTEMBER 30, 1997
                                TABLE OF CONTENTS


President's Letter to Stockholders

The Business of Harvest Home Financial Corporation and
   Subsidiary

Common Stock and Related Information

Selected Consolidated Financial Data

Management's Discussion and Analysis of Financial
   Condition and Results of Operations

Comparison of Results of Operations for Fiscal Years Ended
  September 30, 1997 and 1996

Comparison of Results of Operations for Fiscal Years Ended
  September 30, 1996 and 1995

Average Yield Analysis

Rate/Volume Table

Liquidity and Capital Resources

Effect of Recent Accounting Pronouncements

Recapitalization of Deposit Insurance Fund


Report of Independent Certified Public Accountants

Consolidated Financial Statements

Directors and Officers

Stockholder Services

















Dear Stockholder:

We  are  very pleased to present Harvest Home Financial's Annual Report  to
Stockholders for the fiscal year ending September 30, 1997.

I  am  happy to report that net earnings for fiscal 1997 totaled  $627,000,
exceeding same period earnings for fiscal 1996 by $495,000, or 375%.

We  had discussed with you last year our need to maintain a growth strategy
that  would result in improved earnings and an increased return on  equity.
Consistent  with  that objective, we were able to grow  the  Bank's  assets
during  fiscal 1997 by $15.1 million, or 19.2%.  Total assets  reached  the
unprecedented  level  of  $93.8 million.  New  loan  originations  remained
strong  during  the current fiscal year, resulting in portfolio  growth  of
$3.0 million, or 7.0%

The  heart of our mission statement is that "we want to be recognized as  a
stable/secure  institution that provides a personal touch  and  treats  our
customers  as  individuals  while offering  competitive  rates  along  with
efficient  modern  services."  In keeping with our  mission  statement,  we
recently  completed remodeling our Ebenezer Road office to upgrade customer
services.   Currently, we are remodeling the North College Hill  office  to
improve services at that location.  A drive up ATM is included in the North
College Hill upgrade.

In  April 1997, we announced a share repurchase program which provided  for
the  repurchase of 46,742 shares over a six month period.  In October 1997,
we  extended  our  share  repurchase program  intending  to  repurchase  an
additional  49,000  shares over a six month period commencing  October  27,
1997.   Since  April we have successfully repurchased 43,500  shares.   The
Board   continues  to  believe  that  repurchasing  shares   benefits   the
Corporation and its stockholders.  Repurchased shares will become  treasury
shares available for general corporate purposes.

Dividends were paid quarterly totaling $.41 for the calendar year 1997.  As
a charter shareholder, the annual dividend represents a 5.6% return on your
original  tax  adjusted  investment.  Consistent with  the  Private  Letter
Ruling  received during fiscal year 1996, we can estimate 93% of your  1997
dividends will be considered tax free.  You will be advised in January 1998
as  to  the  exact percentage of the 1997 dividend distributions  that  are
considered tax free.

On  a  personal note, Vice President Richard F. Hauck will be retiring from
our management team January 1, 1998.  Mr. Hauck became part of Harvest Home
Savings Bank in March 1985 through our merger with Baltimore Savings & Loan
Company.   Mr. Hauck's experience in the savings and loan business  extends
beyond  twenty-five  years.  I know I speak for all of  his  co-workers  in
recognizing his contribution to our company and wishing Dick and Janet, his
wife,  many comfortable retirement years.  Mr. Hauck will continue to serve
as a Board member.

In  conclusion, your Board and management look forward to the  future  with
great  optimism.  Our mission remains consistent as a provider of financial
services to our community.  Technology is fast changing the way we  provide
services  but  our  desire to treat each customer as an individual  remains
steadfast.

As always, we appreciate your continued confidence and support.

Very truly yours,



John E. Rathkamp
President


  BUSINESS OF HARVEST HOME FINANCIAL CORPORATION AND SUBSIDIARY

Harvest  Home  Financial  Corporation ("HHFC", or  the  "Corporation")  was
incorporated  in February 1994 under Ohio law for the purpose of  acquiring
all  of  the  capital stock issued by Harvest Home Savings  Bank  ("Harvest
Home",  or  the  "Bank")  in connection with its conversion  from  a  state
chartered mutual savings bank to a state chartered stock savings bank  (the
"Conversion").  The Conversion was consummated on October 7, 1994 and, as a
result,  the Corporation became a unitary savings and loan holding  company
for  its  wholly-owned subsidiary, Harvest Home.  The  Corporation  has  no
significant  assets  other  than the shares  of  the  Bank's  common  stock
acquired in the Conversion and has no significant liabilities.

As  a community oriented financial institution, Harvest Home seeks to serve
the financial needs of the families and community businesses in its primary
market  area.   Harvest  Home is principally engaged  in  the  business  of
attracting  deposits  from  the  general  public,  which  are  insured   to
applicable  limits by the Savings Association Insurance Fund (the  "SAIF"),
and  using  such  deposits to originate residential  loans.   To  a  lesser
extent,  Harvest Home also originates construction loans and loans  secured
by  multi-family residential real estate, nonresidential real  estate,  and
deposits.  In addition, Harvest Home invests in mortgage-backed securities,
other   investment grade U.S. Government and agency securities, and  short-
term  interest-bearing deposits.  Harvest Home also offers  a  credit  card
program through a correspondent relationship with a commercial bank.

Harvest  Home conducts business from its main office in Cheviot,  Ohio  and
from  two  full-service  branch offices located  in  the  Cincinnati  area.
Harvest  Home's  primary market area consists of western  Hamilton  County,
Ohio,  although its market also extends to the remainder of Hamilton County
and  to  contiguous  townships in the counties  of  Butler,  Clermont,  and
Warren.
























                                

              COMMON STOCK AND RELATED INFORMATION

The  Corporation's common stock has been listed on the NASDAQ System  since
October 7, 1994 under the NASDAQ symbol HHFC.

Presented  below are the market values for the Corporation's common  stock,
as  well as the amount of cash dividends paid on the common stock, for each
quarter of fiscal 1997 and 1996.  Such values represent actual transactions
and  do  not include retail markups, markdowns or commissions.  Information
relating  to  prices has been obtained by the Corporation from  NASDAQ  for
fiscal 1997, 1996 and 1995.

                                         Market         Cash
Fiscal year ending September 30, 1997     value      dividends (1)

Quarter ending December 31, 1996          $ 9.75       $.10
Quarter ending March 31, 1997             $11.50       $.10
Quarter ending June 30, 1997              $10.88       $.10
Quarter ending September 30, 1997         $12.00       $.10

                                          Market       Cash
Fiscal year ending September 30, 1996     value        dividends (2)

Quarter ending December 31, 1995          $11.88       $ .10
Quarter ending March 31, 1996             $12.00       $ .10
Quarter ending June 30, 1996              $12.50       $ .10
Quarter ending September 30, 1996         $ 9.63       $3.10

                                          Market       Cash
Fiscal year ending September 30, 1995     value        dividends

Quarter ending December 31, 1994          $ 8.75       $.05
Quarter ending March 31, 1995             $10.00       $.07
Quarter ending June 30, 1995              $10.00       $.09
Quarter ending September 30, 1995         $11.25       $.10

As  of November 19, 1997, the Corporation had outstanding 891,357 shares of
common  stock,  held  by approximately 350 stockholders  of  record.   This
number  of stockholders does not reflect the number of persons or  entities
who  may hold stock in nominee or "street" name through brokerage firms  or
others.   In  April  1997 and October 1997, the Corporation  announced  the
implementation  of  stock  repurchase  programs  pursuant  to   which   the
Corporation would repurchase up to 5% per program of its outstanding common
stock  over  respective periods of at least six months.  The  October  1997
period remains open.  Since April 1997, the Corporation repurchased a total
of  43,500  shares of its common stock at an average price  of  $12.84  per
share.







(1)  Approximately $.37 of fiscal 1997 dividends are deemed to constitute a
return of capital.
(2)   Approximately $2.64 of fiscal 1996 dividends are deemed to constitute
a return of capital.
<TABLE>

                                   SELECTED CONSOLIDATED FINANCIAL DATA

Selected consolidated financial condition and other data:

                                          At September 30,

<CAPTION>
                                   1997      1996      1995       1994      1993
                                             (Dollars in thousands)

<S>                                <C>       <C>       <C>       <C>       <C>
Total amount of:
  Assets                           $93,832   $78,718   $69,532   $72,765   $64,925
  Cash and cash equivalents (1)      5,264     1,708     2,313    16,333     9,541
  Investment securities - at cost        0         0    18,032     9,992     6,125
  Investment securities, available
    for sale - at market             8,039    12,105         0         0         0
  Mortgage-backed securities -
    at cost                              0         0     9,009     8,243     9,545
  Mortgage-backed securities
    available for sale -
    at market                       32,466    20,429         0         0         0
  Loans receivable - net            45,229    42,267    38,245    36,319     38,012
  Deposits                          58,786    57,958    56,425    67,810     60,470
  Advances from the FHLB            24,000    10,000         0         0          0
  Stockholders' equity (2)          10,344     9,725    12,706     4,581      4,166
Number of:
  Real estate loans outstanding      1,054     1,038     1,000     1,052        975
  Deposit accounts                   8,035     8,466     8,309     6,987      7,536
  Full service offices                   3         3         3         3          3

Summary of consolidated earnings and other data:


                                             Year Ended September 30,
                                     1997      1996      1995      1994      1993
                                             (In thousands, except share data)

Interest income                    $5,983    $5,209    $4,872    $4,187    $4,584
Interest expense                    3,689     2,969     2,569     2,387     2,676
Net interest income                 2,294     2,240     2,303     1,800     1,908
Provision for loan losses               9         1        12         9        59
Net interest income after
  provision for loan losses         2,285     2,239     2,291     1,791     1,849
Other income                           64        74        50        53        56
General, administrative, and
  other expense                     1,409     2,136     1,372     1,216     1,158
Earnings before income taxes          940       177       969       628       747
Federal income taxes                  313        45       329       213       257
Net earnings                       $  627    $  132    $  640    $  415    $  490
Earnings per share                 $  .70    $  .16    $  .73       N/A       N/A


                                             Year ended September 30,
                                     1997      1996      1995      1994      1993

Interest rate spread                  2.17%     2.24%     2.48%     2.63%     2.81%
Net yield on average interest-
  earning assets                      2.76      3.07      3.27      2.82      3.07
Return on equity (net earnings
  divided by average equity)          6.09      1.05      5.09      9.49     12.50
Return on assets (net earnings
  divided by average total assets)    0.73      0.18      0.89      0.64      0.76
Equity-to-assets ratio (average
  Equity divided by average total
  assets)                            12.06     16.94     17.56      6.70      6.10
Loan loss allowance as a
  percentage of non-performing
  loans                             121.05%    67.68%    76.92%   268.57%      N/M(3)


(1)  Includes cash and due from banks, federal funds sold and interest-bearing deposits in
other financial institutions.
(2)  Consists only of retained earnings as of September 30, 1993 - 1994, inclusive.
(3)  Not meaningful.
</TABLE>
                                        
               Harvest Home Financial Corporation
                                
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

Since  its  formation,  the Corporation's activities  have  been  primarily
limited  to holding the stock of Harvest Home.  As a result, the discussion
that follows focuses largely on the operations of Harvest Home.

Harvest  Home's operating results are dependent to a significant degree  on
its net interest income, which is the difference between interest income on
loans  and  investments  and interest expense on deposits  and  borrowings.
Like most thrift institutions, the interest income and interest expense  of
Harvest Home changes as interest rates fluctuate and assets and liabilities
reprice.    Interest  rates  may  fluctuate  because  of  general  economic
conditions,  the  policies  of  various regulatory  authorities  and  other
factors beyond Harvest Home's control.  Assets and liabilities will reprice
in  accordance  with  the  contractual terms  of  the  asset  or  liability
instrument  and  in accordance with customer reaction to  general  economic
trends.

Harvest  Home's  interest-earning assets repricing within  one  year  after
September  30,  1997, are less than interest-bearing liabilities  repricing
within  the  same  period  by approximately $5.1 million,  resulting  in  a
negative   cumulative  one-year  gap  of  5.5%  of   total   assets.    The
Corporation's  interest-earning  assets repricing  within  three  years  of
September  30,  1997,  were  $5.4  million greater  than  interest  bearing
liabilities  repricing  during the same period,  resulting  in  a  positive
cumulative gap for such period of 5.9% of total assets.

In  the event that interest rates rise during the forthcoming year, Harvest
Home's  negative  cumulative  one-year gap may negatively  affect  earnings
because  interest-bearing liabilities may reprice at  a  faster  pace  than
interest-earning assets.  Further, rising interest rates could also  affect
Harvest Home's earnings in a negative manner as a result of diminished loan
demand  and  the  increased risk of delinquencies resulting from  increased
payment amounts on adjustable-rate loans.

Harvest  Home's  earnings are also vulnerable to changes in interest  rates
due  to  the  amount of adjustable-rate mortgage loans ("ARMs")  originated
with  low  margins  and  adjustment  caps.   In  the  1980s,  Harvest  Home
originated  ARMs  which provide for interest rate adjustments  every  three
years.   Moreover, many of these loans have adjustment caps of  2%  in  any
three year period.  Therefore, if interest rates rise rapidly, Harvest Home
may  be  unable to increase the interest rates on such loans as rapidly  as
the cost of liabilities increase.

Notwithstanding   the  foregoing  risks,  the  Bank  is  operating   within
management's  predetermined  level of interest  rate  risk  and  management
believes  that Harvest Home's interest rate risk posture and the strategies
discussed  below  will result in the Bank maintaining acceptable  operating
results in the current interest rate environment.

Asset and Liability Management

Harvest Home's interest rate spread is the principal determinant of income.
The  interest  rate  spread, and therefore net interest  income,  can  vary
considerably  over  time  because  asset and  liability  repricing  do  not
coincide.   Moreover, the long-term or cumulative effect of  interest  rate
changes  can  be  substantial.   Interest  rate  risk  is  defined  as  the
sensitivity of an institution's earnings and net asset values to changes in
interest  rates.  In managing its interest rate risk, Harvest  Home  begins
with  an objective to increase the interest rate sensitivity of its  assets
by  originating loans with interest rates subject to period adjustment  and
market conditions and/or shorter maturities.  Harvest Home has historically
had to rely primarily upon retail deposit accounts as a source of funds and
intends to continue to do so.  Management believes that reliance on  retail
deposit  accounts  as a source of funds compared to brokered  deposits  and
long-term  borrowings may reduce the effects of interest rate  fluctuations
because  these deposits generally represent a more stable source of  funds.
However,  in fiscal 1997 and 1996, Harvest Home has utilized FHLB  advances
as  a  source  of  financing to fund purchases of  certain  mortgage-backed
securities when favorable spreads became available.

Savings  banks have historically presented a gap analysis as a  measure  of
interest rate risk.  The gap analysis presents the projected maturities and
periods  to  repricing  of  a  savings bank's  rate  sensitive  assets  and
liabilities.  As stated previously, Harvest Home's cumulative one-year gap,
which  represents  the difference between the amount of interest  sensitive
assets  maturing  or  repricing in one year  and  the  amount  of  interest
sensitive  liabilities  maturing or repricing in  the  same  period  was  a
negative 5.5% of total assets at September 30, 1997.  A positive cumulative
gap  indicates  that  interest sensitive assets exceed  interest  sensitive
liabilities  at  a  specific date.  In a rising interest rate  environment,
institutions with positive repricing or maturity gaps generally  experience
a more rapid increase in interest income earned on assets than the interest
expense  paid  on  liabilities.  Conversely, in an environment  of  falling
interest  rates,  interest income earned on assets will generally  decrease
more rapidly than the interest expense paid on liabilities.  A negative gap
will have the opposite effect.

Forward-Looking Statements

In  addition  to  historical information contained  herein,  the  following
discussion  contains  forward-looking statements  that  involve  risks  and
uncertainties.   Economic circumstances, the Corporation's  operations  and
the  Corporation'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 interest rates in the  nation  and  the
Corporation's market area generally.

Some  of  the forward-looking statements included herein are the statements
regarding  management's determination of the amount  and  adequacy  of  the
allowance  for  losses  on  loans  and the  effect  of  certain  accounting
pronouncements.


Discussion  of Changes in Financial Condition from September  30,  1996  to
September 30, 1997

The  Corporation's assets totaled $93.8 million at September 30,  1997,  an
increase of $15.1 million, or 19.2%, from September 30, 1996.  The increase
in total assets was funded primarily by a $14.0 million increase in Federal
Home  Loan Bank advances, an $828,000, or 1.4%, increase in deposits and  a
$619,000 increase in stockholders' equity.

Cash,  federal funds sold and interest-bearing deposits in other  financial
institutions  totaled $5.3 million at September 30, 1997,  an  increase  of
$3.6 million, or 208.2%, from 1996 levels.  Federal funds sold increased by
$2.2  million, while interest-bearing deposits and cash increased  by  $1.4
million,  or  103.7%.   Investment  securities  totaled  $8.0  million   at
September  30, 1997, a decline of $4.1 million, or 33.6%, from the  balance
at  September 30, 1996.  This decline resulted primarily from the  maturity
of  $2.0  million  and  the sale of $2.0 million of  investment  securities
during the 1997 period.  The proceeds were primarily redeployed to fund new
loan originations.

Mortgage-backed securities increased by $12.0 million, or 58.9%, to a total
of  $32.5 million at September 30, 1997, compared to September 30, 1996, as
purchases of $18.2 million exceeded principal repayments and sales of  $2.6
million   and  $138,000,  respectively.   During  fiscal  1997,  management
purchased  $18.2  million  of  long-term, adjustable-rate  U.S.  Government
agency collateralized mortgage obligations with a weighted-average yield of
6.77%.   Such  purchases were funded with proceeds from Federal  Home  Loan
Bank advances.

Loans  receivable increased by $3.0 million, or 7.0%, to a total  of  $45.2
million at September 30, 1997, compared to September 30, 1996 levels.  Loan
disbursements totaled $8.9 million during fiscal 1997, as compared to $12.3
million  during  fiscal  1996,  and  were  partially  offset  by  principal
repayments  totaling $6.0 million.  Growth in the loan portfolio  consisted
primarily of one- to four-family loans, which increased by $4.3 million, or
12.2%, year to year.

At  September  30, 1997, Harvest Home's allowance for loan  losses  totaled
$115,000,  representing  .2%  of total loans and  121.1%  of  nonperforming
loans.   At  September  30,  1996, the allowance for  loan  losses  totaled
$111,000,  or  .2%  of  total  loans, and  67.7%  of  nonperforming  loans.
Nonperforming loans amounted to $95,000, or .1%, and $164,000, or  .2%,  of
total  assets  at  September  30, 1997 and  1996,  respectively.   Although
management  believes that its allowance for loan losses  at  September  30,
1997,  was  adequate based on the available facts and circumstances,  there
can  be no assurance that additions to such allowance will not be necessary
in  future periods, which could adversely affect Harvest Home's results  of
operations.

Deposits  totaled  $58.8  million at September 30,  1997,  an  increase  of
$828,000, or 1.4%, over the $58.0 million total at September 30, 1996.  The
increase  resulted  primarily  from  management's  continuing  efforts   to
maintain   a  moderate  rate  of  growth  through  marketing  and   pricing
strategies.

Federal  Home  Loan Bank advances totaled $24.0 million  at  September  30,
1997, an increase of $14.0 million, or 140.0%, over September 30, 1996,  as
management elected to fund the purchase of mortgage-backed securities  with
variable rate, long-term advances.  These advances and the related mortgage-
backed  securities  reprice  monthly  based  upon  the  LIBOR  index.    At
September 30, 1997, the advances carried a 5.82% weighted-average  interest
rate and are scheduled to mature through fiscal 2007.


Discussion  of Changes in Financial Condition from September  30,  1996  to
September 30, 1997 (continued)

Shareholders'  equity  totaled $10.3 million  at  September  30,  1997,  an
increase  of  $619,000,  or  6.4%, over September  30,  1996  levels.   The
increase  resulted primarily from net earnings of $627,000  and  a  $49,000
increase  in  unrealized gains on securities designated  as  available  for
sale, which were partially offset by dividends of $371,000 and the purchase
of treasury shares totaling $223,000.


Comparison of Results of Operations for the Fiscal Years Ended September
30, 1997 and 1996

General

Net  earnings  for the year ended September 30, 1997, totaled $627,000,  an
increase of $495,000, or 375.0%, over the $132,000 in net earnings reported
for the fiscal year ended September 30, 1996.  The increase in net earnings
resulted  primarily from a $727,000 decline in general, administrative  and
other  expense,  including  a one-time charge to recapitalize  the  Savings
Association Insurance Fund ("SAIF") totaling $368,000 which was recorded in
fiscal 1996, coupled with a $54,000 increase in net interest income,  which
were  partially offset by a $268,000 increase in the provision for  federal
income taxes.

Net Interest Income

Total  interest income amounted to $6.0 million for the fiscal  year  ended
September  30, 1997, an increase of $774,000, or 14.9%, over  fiscal  1996.
Interest  income on loans totaled $3.5 million in fiscal 1997, an  increase
of  $298,000,  or 9.4%.  This increase was due primarily to a $3.5  million
increase  in the weighted-average balance outstanding, coupled  with  an  6
basis point increase in weighted-average yield, to 7.87% in 1997.  Interest
income on mortgage-backed securities increased by $887,000, or 115.6%, as a
result  of  a  $13.4  million  increase  in  the  weighted-average  balance
outstanding,  coupled with an 25 basis point increase  in  weighted-average
yield,  to  6.38% in fiscal 1997.  Interest income on investment securities
and   interest-bearing  deposits  decreased  by  $411,000,  or  32.0%,  due
primarily  to  a  $6.8  million  decrease in the  weighted-average  balance
outstanding, which was partially offset by a 15 basis point increase in the
weighted-average yield year-to-year.

Interest  expense totaled $3.7 million for the fiscal year ended  September
30,  1997,  an increase of $720,000, or 24.3%, over the $3.0 million  total
recorded  in  fiscal  1996.   Interest expense  on  deposits  decreased  by
$28,000, or 1.0%, due primarily to a 6 basis point decrease in the weighted-
average  cost of funds, to 4.81% during fiscal 1997.  Interest  expense  on
borrowings  totaled  $903,000 during fiscal 1997, an increase  of  $748,000
over  fiscal  1996, due to a $12.7 million increase in the weighted-average
balance  of  advances  outstanding from the  Federal  Home  Loan  Bank,  as
previously discussed.

As  a  result  of  the  foregoing changes in interest income  and  interest
expense,  net  interest income increased by $54,000,  or  2.4%,  from  $2.2
million  for the fiscal year ended September 30, 1996, to $2.3 million  for
fiscal  1997.   The interest rate spread declined by 7 basis points  during
fiscal  1997 to 2.17%, while the net interest margin declined by  31  basis
points year-to-year, amounting to 2.76% in fiscal 1997.


Provision for Losses on Loans

A  provision for losses on loans is charged to earnings to bring the  total
allowance  for loan losses to a level considered appropriate by  management
based on historical experience, the volume and type of lending conducted by
the  Savings Bank, the status of past due principal and interest  payments,
general economic conditions, particularly as such conditions relate to  the
Savings Bank's market area, and other factors related to the collectibility
of  the  Savings  Bank's  loan portfolio.  As a result  of  such  analysis,
management  recorded  a $9,000 provision for losses  on  loans  during  the
fiscal  year  ended  September 30, 1997, as compared to $1,000  for  fiscal
1996.  There can be no assurance that the allowance for loan losses of  the
Savings  Bank will be adequate to cover losses on nonperforming  assets  in
the future.

Other Income

Other  income  declined by $10,000, or 13.5%, from $74,000 for  the  fiscal
year ended September 30, 1996 to $64,000 for fiscal 1997.  The decline  was
due  primarily to a $12,000 decline in the recovery from the  Ohio  Deposit
Guarantee Fund which totaled $2,000 in fiscal 1997, as compared to  $14,000
in fiscal 1996.

General, Administrative and Other Expense

General, administrative and other expense decreased by $727,000, or  34.0%,
to  a  total  of  $1.4 million for the year ended September  30,  1997,  as
compared  to $2.1 million for fiscal 1996.  The decrease resulted primarily
from a $368,000 charge recorded in fiscal 1996 to recapitalize the SAIF,  a
decrease of $229,000, or 22.2%, in employee compensation and benefits and a
$28,000,  or  12.3% decrease in other operating expenses.  The decrease  in
employee  compensation  and benefits resulted primarily  from  management's
decision  to  accelerate expenses related to the ESOP during  fiscal  1996,
which  resulted in a $200,000 charge during that period.  The  decrease  in
other  operating  expenses  resulted from a decrease  in  professional  and
reporting expenses year-to-year.

Federal Income Taxes

The provision for federal income taxes totaled $313,000 for the fiscal year
ended September 30, 1997, an increase of $268,000 over the $45,000 total in
fiscal  1996.  The increase resulted primarily from a $763,000, or  431.1%,
increase in pre-tax earnings.  The effective tax rates for the years  ended
September 30, 1997 and 1996 were 33.3% and 25.4%, respectively.


Comparison of Results of Operations for the Fiscal Years Ended September
30, 1996 and 1995

General

Net  earnings  for the year ended September 30, 1996, totaled  $132,000,  a
decline  of $508,000, or 79.4%, from the $640,000 in net earnings  reported
for  the fiscal year ended September 30, 1995.  The decline in net earnings
resulted  primarily from a $368,000 charge recorded in the  fourth  quarter
reflecting the assessment to recapitalize the Savings Association Insurance
Fund   ("SAIF"),  coupled  with  a  $396,000  increase  in  other  general,
administrative  and other expense and a $63,000 decrease  in  net  interest
income, which were partially offset by a $284,000 decrease in the provision
for federal income taxes.

Net Interest Income

Total  interest income amounted to $5.2 million for the fiscal  year  ended
September  30,  1996, an increase of $337,000, or 6.9%, over  fiscal  1995.
Interest  income on loans totaled $3.2 million in fiscal 1996, an  increase
of  $187,000,  or 6.3%.  This increase was due primarily to a $3.3  million
increase  in the weighted-average balance outstanding, which was  partially
offset  by a 19 basis point decrease in weighted-average yield to 7.81%  in
1996.  Interest income on mortgage-backed securities increased by $202,000,
or  35.8%,  as  a result of a $2.7 million increase in the weighted-average
balance  outstanding, coupled with a 39 basis point increase  in  weighted-
average  yield,  to  6.13% in fiscal 1996.  Interest income  on  investment
securities and interest-bearing deposits decreased by $52,000, or 3.9%, due
primarily  to  a  $3.2  million  decrease in the  weighted-average  balance
outstanding,  which was partially offset by a 166 basis point  increase  in
weighted-average yield year-to-year.

Interest  expense totaled $3.0 million for the fiscal year ended  September
30,  1996,  an increase of $400,000, or 15.6%, over the $2.6 million  total
recorded  in  fiscal  1995.   Interest expense  on  deposits  increased  by
$245,000,  or  9.5%,  due primarily to a 43 basis  point  increase  in  the
weighted-average  cost  of funds, to 4.87% during  fiscal  1996.   Interest
expense  on  borrowings  totaled $155,000 during fiscal  1996,  due  to  an
increase  in  advances  from  the Federal Home  Loan  Bank,  as  previously
discussed.

As  a  result  of  the  foregoing changes in interest income  and  interest
expense,  net  interest income decreased by $63,000,  or  2.7%,  from  $2.3
million  for the fiscal year ended September 30, 1995, to $2.2 million  for
fiscal  1996.  The interest rate spread declined by 24 basis points  during
fiscal  1996, to 2.24%, while the net interest margin declined by 20  basis
points year-to-year, amounting to 3.07% in fiscal 1996.

Provision for Losses on Loans

A  provision for losses on loans is charged to earnings to bring the  total
allowance  for loan losses to a level considered appropriate by  management
based on historical experience, the volume and type of lending conducted by
the  Savings Bank, the status of past due principal and interest  payments,
general economic conditions, particularly as such conditions relate to  the
Savings Bank's market area, and other factors related to the collectibility
of  the  Savings  Bank's  loan portfolio.  As a result  of  such  analysis,
management  recorded  a $1,000 provision for losses  on  loans  during  the
fiscal  year ended September 30, 1996.  There can be no assurance that  the
allowance  for  loan losses of the Savings Bank will be adequate  to  cover
losses on nonperforming assets in the future.

Other Income

Other  income increased by $24,000, or 48.0%, from $50,000 for  the  fiscal
year ended September 30, 1995 to $74,000 for fiscal 1996.  The increase was
due  primarily  to  an  increase in service fees and other  charges  during
fiscal  1996, coupled with a recovery from the Ohio Deposit Guarantee  Fund
totaling $14,000.

General, Administrative and Other Expense

General, administrative and other expense increased by $764,000, or  55.7%,
to  a  total  of  $2.1 million for the year ended September  30,  1996,  as
compared  to $1.4 million for fiscal 1995.  The increase resulted primarily
from  a  $368,000  charge  recorded in the fourth  quarter  reflecting  the
assessment to recapitalize the SAIF, an increase of $340,000, or 49.1%,  in
employee  compensation and benefits and a $44,000,  or  55.0%  increase  in
franchise  taxes.   The  increase  in employee  compensation  and  benefits
resulted  primarily from management's decision to accelerate  approximately
$200,000  in  expenses related to the Employee Stock Ownership  Plan.   The
increase  in  franchise taxes resulted from the increase  in  stockholders'
equity year-to-year.

Federal Income Taxes

The  provision for federal income taxes totaled $45,000 for the fiscal year
ended  September  30,  1996, a decrease of $284,000,  or  86.3%,  from  the
$329,000  total  in  fiscal 1995.  The decline resulted  primarily  from  a
$792,000, or 81.7%, decrease in pre-tax earnings.  The effective tax  rates
for  the  years  ended September 30, 1996 and 1995 were  25.4%  and  34.0%,
respectively.

                                        
                             AVERAGE YIELD ANALYSIS


The following table presents for the periods indicated, the total amount of 
interest income from average interest-earning assets and the resulting yields, 
and the interest expense on average interest-bearing liabilities, expressed 
both in dollars and rates, and the net interest margin.  Balances are based on 
average monthly balances which, in the opinion of management, do not differ 
materially from daily balances.

<TABLE>
<CAPTION>
                                                                       Year ended September 30,
                                                       1997                          1996                           1995
                                       Average    Interest            Average   Interest           Average    Interest  
                                     outstanding  earned/  Yield/   outstanding  earned/  Yield/  outstanding  earned/    Yield/
                                      balance      paid    rate      balance      paid    rate     balance    paid       rate  


<S>                                     <C>       <C>     <C>       <C>         <C>       <C>     <C>          <C>       <C>
Interest-earning assets:
  Loans receivable                      $43,929   $3,457    7.87%   $40,432     $3,159    7.81%   $37,159      $2,972     8.00%
  Mortgage-backed securities             25,938    1,654    6.38     12,505        767    6.13      9,835         565     5.74
  Investment securities                   9,846      675    6.86     15,250      1,026    6.73     17,095       1,092     6.39
  Interest-bearing deposits and other     3,538      197    5.57      4,896        257    5.25      6,299         243     3.86

     Total interest-earning assets       83,251    5,983    7.19     73,083      5,209    7.13     70,388       4,872     6.92

Non-interest-earning assets               2,153                       1,215                         1,229

     Total assets                       $85,404                     $74,298                       $71,617

Interest-bearing liabilities:
  Deposits
    NOW accounts                        $ 3,477      110    3.16    $ 2,753     $   74    2.69    $ 2,554      $   67       2.62%
    Passbook                              9,057      252    2.78      9,671        272    2.79     11,745         346       2.95
    Money market demand deposits          4,436      144    3.25      4,746        144    3.03      5,551         160       2.88
    Certificates                         40,909    2,280    5.57     40,639      2,326    5.72     37,978       1,996       5.26
  Borrowings                             15,615      903    5.78      2,885        155    5.37          0           0          0
    Total interest-bearing liabilities   73,494    3,689    5.02     60,694      2,969    4.89     57,828       2,569       4.44
Non-interest-bearing liabilities          1,608                       1,017                         1,210
     Total liabilities                   75,102                      61,711                        59,038

Stockholders' equity                     10,302                      12,587                        12,579

     Total liabilities and
     stockholders' equity               $85,404                     $74,298                       $71,617

Net interest income; interest rate
spread (1)                                        $2,294   2.17%                $2,240    2.24%                $2,303       2.48%

Net yield (net interest income as 
a percent of average interest-
earning assets)                                            2.76%                               3.07%                        3.27%

Ratio of average interest-earning 
assets to average interest-bearing 
liabilities                                              113.28%                             120.41%                      121.72%


(1)  Represents the difference between the average yield on interest-earning assets and
the average cost of interest-bearing liabilities.
</TABLE>
                                       

                  Harvest Home Financial Corporation
                                   
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


Rate/Volume Table

The  following table describes the extent to which changes in interest rates and
changes  in  volume of interest-earning assets and interest-bearing  liabilities
have  affected the Corporation's interest income and expense during  the  fiscal
years  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 September 30,
                                     1997 vs. 1996          1996 vs. 1995
                                        Increase               Increase
                                       (decrease)             (decrease)
                                         due to                 due to
                                  Volume  Rate  Total     Volume  Rate  Total

                                               (In thousands)

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

Interest income attributable to:
  Loans receivable                 $273   $25    $298      $258   $ (71)   $187
  Mortgage-backed securities        855    32     887       162      40     202
Investment securities              (370)   19    (351)     (122)     56    ( 66)
  Other interest-earning assets(1)  (74)   14     (60)      (62)     76      14
Total interest income               684    90     774       236     101     337

Interest expense attributable to:
  Deposits(2)                         4   (32)   (28)        (1)    246     245
  Borrowings                        735    13    748        155       0     155
Total interest expense              739    19)   720        154     246     400


Increase (decrease) in net interest income              $  54                        $ (63)

(1)   Includes  interest-bearing  deposits in other financial  institutions  and
   other interest-earning assets.
(2)  Includes interest-bearing escrow deposits.
</TABLE>


Liquidity and Capital Resources

Harvest Home's principal sources of funds are deposits, repayments on loans
and  mortgage-backed securities, maturities of investment  securities,  and
funds  provided  by  operations.  While scheduled loan and  mortgage-backed
securities   amortization  and  maturing  interest-bearing   deposits   and
investment securities are relatively predictable sources of funds,  deposit
flows  and  loan  and  mortgage-backed securities prepayments  are  greatly
influenced by economic conditions, the general level of interest rates, and
competition.  The particular sources of funds utilized by Harvest Home from
time to time are selected based on comparative costs and availability.

The  FDIC  requires  savings banks to maintain a level  of  investments  in
specified  types  of  liquid assets sufficient to protect  and  ensure  the
safety and soundness of the Savings Bank.  The FDIC has no specific minimum
guideline for liquidity.

The  primary  investing  activities of Harvest Home  include  investing  in
loans,   mortgage-backed  securities  and  investment   securities.    Such
investments are funded primarily from loans and mortgage-backed  securities
repayments,  increases in customer deposit liabilities and borrowings  from
the  Federal  Home Loan Bank.  During the fiscal year ended  September  30,
1997,  loan  originations totaled $8.9 million and purchases  of  mortgage-
backed  securities  totaled $18.2 million, representing the  deployment  of
funds  from  deposit growth, proceeds from Federal Home Loan Bank  advances
and  proceeds  from  maturity of investment securities.  Customer  deposits
increased during the fiscal year ended September 30, 1997, by $828,000  and
increased during the fiscal year ended September 30, 1996 by $1.5 million.

The  FDIC has adopted risk-based capital ratio guidelines to which  Harvest
Home   is  subject.   The  guidelines  establish  a  systematic  analytical
framework  that  makes regulatory capital requirements  more  sensitive  to
differences  in  risk  profiles  among banking  organizations.   Risk-based
capital  ratios  are  determined by allocating assets  and  specified  off-
balance  sheet  commitments to four risk weighted categories,  with  higher
levels   of  capital  being  required  for  the  categories  perceived   as
representing greater risk.

These  guidelines divide the capital into two tiers.  The first tier ("Tier
I")  includes  common  equity, certain non-cumulative  perpetual  preferred
stock  (excluding  auction rate issues) and minority  interests  in  equity
accounts  of  consolidated subsidiaries, less goodwill  and  certain  other
intangible  assets (except mortgage servicing rights and  purchased  credit
card  relationships, subject to certain limitations).  Supplementary ("Tier
II")  capital includes, among other items, cumulative perpetual  and  long-
term   limited-life  preferred  stock,  mandatory  convertible  securities,
certain  hybrid  capital  instruments,  term  subordinated  debts  and  the
allowance  for loan and lease losses, subject to certain limitations,  less
required deductions.  Savings Banks are required to maintain a total  risk-
based  capital (the sum of Tier 1 and Tier 2 capital) ratio of 8%, of which
4%  must  be  Tier  I capital.  The FDIC may, however, set  higher  capital
requirements  when  a  bank's  particular  circumstances  warrant.    Banks
experiencing or anticipating significant growth are expected to maintain  a
Tier I leverage ratio, including tangible capital positions, well above the
minimum levels.

In  addition, the FDIC established guidelines prescribing a minimum Tier  I
leverage ratio (Tier I capital to adjusted total assets as specified in the
guidelines).  These guidelines provide for a minimum Tier I leverage  ratio
of  3% for banks that meet certain specified criteria, including that  they
have the highest regulatory rating and are not experiencing or anticipating
significant  growth.  All other banks are required to  maintain  a  Tier  I
leverage  ratio  of 3% plus an additional cushion of at least  100  to  200
basis points.
 
The  following table sets forth the regulatory capital of Harvest  Home  at
September 30, 1997:

     Total Capital to Risk-Weighted Assets             25.1%
     Tier I Capital to Risk-Weighted Assets            24.8%
     Tier I Leverage Ratio                              9.3%

Effect of Recent Accounting Pronouncements


In  October 1995, the Financial Accounting Standards Board ("FASB")  issued
Statement  of Financial Accounting Standards ("SFAS") No. 123,  "Accounting
for   Stock-Based  Compensation",  establishing  financial  accounting  and
reporting  standards  for stock-based compensation  plans.   SFAS  No.  123
encourages  all  entities to adopt a new method of  accounting  to  measure
compensation  cost of all stock compensation plans based on  the  estimated
fair value of the award at the date it is granted.  Companies are, however,
allowed to continue to measure compensation cost for those plans using  the
intrinsic value based method of accounting, which generally does not result
in  compensation expense recognition for most plans.  Companies that  elect
to  remain  with  the existing accounting are required  to  disclose  in  a
footnote  to  the  financial  statements pro forma  net  earnings  and,  if
presented,  earnings per share, as if SFAS No. 123 had been  adopted.   The
accounting  requirements  of  SFAS No. 123 are effective  for  transactions
entered  into  during  fiscal years that begin  after  December  15,  1995;
however, companies are required to disclose information for awards  granted
in  their  first fiscal year beginning after December 15, 1994.  Management
has  determined  that the Corporation will continue to account  for  stock-
based compensation pursuant to Accounting Principles Board Opinion No.  25,
and therefore the disclosure provisions of SFAS No. 123 will have no effect
on its consolidated financial condition or results of operations.

In  June  1996, the FASB issued SFAS No. 125, "Accounting for Transfers  of
Financial  Assets,  Servicing Rights, and Extinguishment  of  Liabilities",
that  provides  accounting  guidance  on  transfers  of  financial  assets,
servicing of financial assets, and extinguishment of liabilities.  SFAS No.
125  introduces an approach to accounting for transfers of financial assets
that  provides a means of dealing with more complex transactions  in  which
the  seller  disposes  of only a partial interest in  the  assets,  retains
rights  or  obligations,  makes  use of special  purpose  entities  in  the
transaction,  or otherwise has continuing involvement with the  transferred
assets.  The new accounting method, referred to as the financial components
approach,  provides  that  the  carrying amount  of  the  financial  assets
transferred  be allocated to components of the transaction based  on  their
relative  fair  values.   SFAS No. 125 provides  criteria  for  determining
whether  control  of assets has been relinquished and whether  a  sale  has
occurred.  If the transfer does not qualify as a sale, it is accounted  for
as a secured borrowing.  Transactions subject to the provisions of SFAS No.
125  include,  among  others,  transfers involving  repurchase  agreements,
securitizations   of  financial  assets,  loan  participations,   factoring
arrangements, and transfers of receivables with recourse.

An  entity  that  undertakes  an obligation  to  service  financial  assets
recognizes either a servicing asset or liability for the servicing contract
(unless  related  to  a securitization of assets, and all  the  securitized
assets are retained and classified as held-to-maturity).  A servicing asset
or  liability that is purchased or assumed is initially recognized  at  its
fair  value.  Servicing assets and liabilities are amortized in  proportion
to  and  over the period of estimated net servicing income or net servicing
loss and are subject to subsequent assessments for impairment based on fair
value.

SFAS  No.  125 provides that a liability is removed from the balance  sheet
only  if  the  debtor  either pays the creditor  and  is  relieved  of  its
obligation for the liability or is legally released from being the  primary
obligor.

SFAS  No. 125 is effective for transfers and servicing of financial  assets
and extinguishment of liabilities occurring after December 31, 1997, and is
to  be  applied prospectively.  Earlier or retroactive application  is  not
permitted.  Management does not believe that adoption of SFAS No. 125  will
have  a material adverse effect on the Corporation's consolidated financial
position or results of operations.

In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share", which
requires  companies to present basic earnings per share and, if applicable,
diluted  earnings per share, instead of primary and fully diluted  earnings
per  share,  respectively.  Basic earnings per share  is  computed  without
including  potential  common  shares, i.e., no  dilutive  effect.   Diluted
earnings  per  share  is computed taking into consideration  common  shares
outstanding  and  dilutive  potential  common  shares,  including  options,
warrants, convertible securities and contingent stock agreements.  SFAS No.
128  is  effective  for  periods ending after  December  15,  1997.   Early
application is not permitted.  Based upon the provisions of SFAS  No.  128,
the  Corporation's basic and diluted earnings per share for the year  ended
September 30, 1997, would have been $.71 and $.69, respectively.

In February 1997, the FASB issued SFAS No. 129, "Disclosures of Information
about  Capital  Structure."  SFAS No. 129 consolidated existing  accounting
guidance relating to disclosure about a company's capital structure.   SFAS
No.  129  is  effective for financial statements for periods  ending  after
December 15, 1997.  SFAS No. 129 is not expected to have a material  impact
on the Corporation's financial statements.

In  June  1997,  the  FASB  issued SFAS No. 130,  "Reporting  Comprehensive
Income."   SFAS No. 130 establishes standards for reporting and display  of
comprehensive  income  and its components (revenues,  expenses,  gains  and
losses)  in a full set of general-purpose financial statements.   SFAS  No.
130  requires  that  all  items that are required to  be  recognized  under
accounting standards as components of comprehensive income be reported in a
financial  statement  that is displayed with the same prominence  as  other
financial  statements.   It  does not require a specific  format  for  that
financial  statement  but  requires that an enterprise  display  an  amount
representing  total comprehensive income for the period in  that  financial
statement.

SFAS  No.  130  requires  that an enterprise (a) classify  items  of  other
comprehensive  income  by  their nature in a financial  statement  and  (b)
display  the  accumulated balance of other comprehensive income  separately
from retained earnings and additional paid-in capital in the equity section
of a statement of financial position.  SFAS No. 130 is effective for fiscal
years  beginning  after December 15, 1997.  Reclassification  of  financial
statements  for  earlier  periods  provided  for  comparative  purposes  is
required.   SFAS No. 130 is not expected to have a material impact  on  the
Corporation's financial statements.

In  June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information."  SFAS No. 131 significantly changes
the way that public business enterprises report information about operating
segments in annual financial statements and requires that those enterprises
report  selected information about reportable segments in interim financial
reports  issued to shareholders.  It also establishes standards for related
disclosures  about  products  and  services,  geographic  areas  and  major
customers.  SFAS No. 131 uses a "management  approach"  to disclose financial
and  descriptive  information about  the way that management organizes the 
segments within the enterprise for  making  operating  decisions  and  
assessing  performance.   For  many enterprises,  the management approach 
will likely result in  more  segments being  reported.   In  addition, SFAS 
No. 131 requires  significantly  more information  to be disclosed for each 
reportable segment than is  presently being  reported  in  annual financial 
statements  and  also  requires  that selected information be reported in 
interim financial statements.  SFAS No. 131  is effective for fiscal years 
beginning after December 15, 1997.  SFAS No.  131  is  not  expected to have
a material impact on the  Corporation's financial statements.

Impact of Inflation and Changing Prices

The  consolidated  financial statements and notes thereto  included  herein
have  been  prepared  in  accordance  with  generally  accepted  accounting
principles, which require the Corporation to measure financial position and
results  of  operations in terms of historical dollars without  considering
changes  in  the  relative purchasing power of money over time  because  of
inflation.

In  management's  opinion, changes in interest rates affect  the  financial
condition  of a financial institution to a far greater degree than  changes
in  the rate of inflation.  While interest rates are greatly influenced  by
changes  in the inflation rate, they do not change at the same rate  or  in
the same magnitude as the inflation rate.  Rather, interest rate volatility
is  based  on  changes in the expected rate of inflation,  as  well  as  on
changes in monetary and fiscal policies.


Recapitalization of the Deposit Insurance Fund

The  deposit accounts of the Savings Bank and of other savings associations
are insured by the FDIC in the Savings Association Insurance Fund ("SAIF").
The  reserves of the SAIF were below the level required by law,  because  a
significant portion of the assessments paid into the fund were used to  pay
the  cost  of  prior thrift failures.  The deposit accounts  of  commercial
banks are insured by the FDIC in the Bank Insurance Fund ("BIF"), except to
the extent such banks have acquired SAIF deposits.  The reserves of the BIF
met  the  level required by law in May 1995.  As a result of the respective
reserve  levels of the funds, deposit insurance assessments paid by healthy
savings  associations exceeded those paid by healthy  commercial  banks  by
approximately  $.19  per  $100  in deposits  in  1995.   In  1996,  no  BIF
assessments are required for healthy commercial banks except for  a  $2,000
minimum fee.

Legislation  was  enacted  to recapitalize the SAIF  that  provides  for  a
special  assessment totaling $.657 per $100 of SAIF deposits held at  March
31, 1995, in order to increase SAIF reserves to the level required by law.

The Savings Bank had $56.0 million in deposits at March 31, 1995, resulting
in  an  assessment of approximately $368,000, or $243,000 after tax,  which
was charged to operations in 1996.

A  component  of the recapitalization plan provides for the merger  of  the
SAIF  and  BIF  on January 1, 1999.  The SAIF recapitalization  legislation
also  provides for an elimination of the thrift charter or of the  separate
federal  regulation of thrifts prior to the merger of the deposit insurance
funds.   As a result, the Savings Bank could be regulated as a bank holding
company  under Federal laws which would subject it to the more  restrictive
activity  limits  imposed  on national banks.  Under  separate  legislation
related  to  the  recapitalization plan, the Savings Bank  is  required  to
recapture as taxable income approximately $370,000 of its bad debt reserve,
which represents the post-1987 additions to the reserve, and will be unable
to  utilize the percentage of earnings method to compute its reserve in the
future.   The Savings Bank has provided deferred taxes for this amount  and
will  be  permitted to amortize the recapture of its bad debt reserve  over
six years.


       REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
                                
Board of Directors
Harvest Home Financial Corporation

We  have  audited  the  accompanying consolidated statements  of  financial
condition  of Harvest Home Financial Corporation as of September  30,  1997
and   1996,   and   the  related  consolidated  statements   of   earnings,
stockholders'  equity,  and cash flows for each of the  three  years  ended
September  30, 1997, 1996 and 1995. These consolidated financial statements
are the responsibility of the Corporation's management.  Our responsibility
is  to  express an opinion on these consolidated 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  Harvest
Home  Financial  Corporation as of September 30, 1997  and  1996,  and  the
consolidated results of its operations and its cash flows for each  of  the
years ended September 30, 1997, 1996 and 1995, in conformity with generally
accepted accounting principles.





Cincinnati, Ohio                        Grant Thornton, LLP
November 19, 1997








                  Harvest Home Financial Corporation
                                   
            CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
                                   
                             September 30,
                   (In thousands, except share data)
<CAPTION>
     ASSETS                                         1997        1996

<S>                                            <C>         <C>
Cash and due from banks                        $     558   $     520
Federal funds sold                                 2,600         400
Interest-bearing deposits in other
  financial institutions                           2,106         788
     Cash and cash equivalents                     5,264       1,708

Investment securities designated as
  available for sale - at market                   8,039      12,105
Mortgage-backed securities designated
  as available for sale - at market               32,466      20,429
Loans receivable - net                            45,229      42,267
Office premises and equipment - at
  depreciated cost                                   981         952
Federal Home Loan Bank stock - at cost             1,219         588
Accrued interest receivable on loans                 245         209
Accrued interest receivable on mortgage-
  backed securities                                  139         102
Accrued interest receivable on investments
  and interest - bearing deposits                    126         211
Prepaid expenses and other assets                     73          74
Prepaid federal income taxes                          51          73

     Total assets                                $93,832     $78,718

     LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                         $58,786     $57,958
Advances from the Federal Home Loan Bank          24,000      10,000
Advances by borrowers for taxes and insurance        107          96
Accrued interest payable                              89          77
Other liabilities                                    253         816
Deferred federal income taxes                        253          46
     Total liabilities                            83,488      68,993

Commitments                                           0           0

Stockholders' equity
  Common stock - 2,000,000 shares of no par
  value authorized;
    991,875 shares issued                             0           0
  Additional paid-in capital                       6,884       6,740
  Retained earnings - restricted                   5,043       4,787
  Shares acquired by Employee Stock Ownership Plan (378)       (674)
  Shares acquired by Recognition and Retention Plan(389)       (486)
  Unrealized gains (losses) on securities
    designated as available for sale, net of
    related tax effects                               40         (9)
  Less 77,018 and 57,018 shares of treasury
    stock - at cost                                (856)       (633)
     Total stockholders' equity                   10,344       9,725

     Total liabilities and stockholders' equity  $93,832     $78,718
</TABLE>

The accompanying notes are an integral part of these statements.
                  Harvest Home Financial Corporation
                                   
<TABLE>
                  CONSOLIDATED STATEMENTS OF EARNINGS
                                   
                   For the year ended September 30,
                   (In thousands, except share data)
<CAPTION>
                                            1997      1996      1995
<S>                                      <C>       <C>       <C>
Interest income
  Loans                                   $3,457    $3,159    $2,972
  Mortgage-backed securities               1,654       767       565
  Investment securities                      675     1,026     1,092
  Interest-bearing deposits and other        197       257       243
Total interest income                      5,983     5,209     4,872

Interest expense
  Deposits                                 2,786     2,814     2,569
  Borrowings                                 903       155         0
     Total interest expense                3,689     2,969     2,569

     Net interest income                   2,294     2,240     2,303

Provision for losses on loans                  9         1        12
     Net interest income after
     Provision for losses on loans         2,285     2,239     2,291

Other income
  Gain on sale of investment and
    mortgage-backed securities                 7         2        0
  Other operating income                      57        72        50
     Total other income                       64        74        50

General, administrative and other expense
  Employee compensation and benefits         803     1,032       692
  Occupancy and equipment                    257       254       239
  Federal deposit insurance premiums          28       498       137
  Franchise taxes                            121       124        80
  Other operating                            200       228       224
     Total general, administrative and
       other expense                       1,409     2,136     1,372

     Earnings before income taxes            940       177       969

Federal income taxes
  Current                                    130       150       295
  Deferred                                   183     (105)        34
     Total federal income taxes              313        45       329

     NET EARNINGS                        $   627   $   132   $   640

     EARNINGS PER SHARE                      $.70      $.16      $.73


</TABLE>
The accompanying notes are an integral part of these statements.

                                   
                       Harvest Home Financial Corporation
<TABLE>
                                        
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                        
              For the years ended September 30, 1997, 1996 and 1995
                        (In thousands, except share data)
<CAPTION>
                                                                             Unrealized
                                                               Shares        gain (loss)
                                                               acquired     on securities
                                       Additional              by stock      designated
                              Common    paid-in     Retained   benefit      as available    Treasury
                              stock     capital     earnings    plans         for sale        stock       Total

<S>                           <C>       <C>          <C>       <C>            <C>            <C>          <C>
Balance at October 1, 1994    $     0   $     0      $ 4,581   $    0         $     0        $    0       $4,581

Net proceeds from issuance
  of common stock                   0     9,473            0     (794)              0             0        8,679
Net earnings for the year
  ended September 30, 1995          0         0          640        0               0             0          640
Cash dividends of $.21 per
  share                             0         0         (200)       0               0             0         (200)
Purchase of treasury shares -
  at cost                           0         0            0        0               0          (994)        (994)

Balance at September 30, 1995   9,473     5,021         (794)       0            (994)       12,700
Net earnings for the year
  ended September 30, 1996          0         0          132        0               0             0          132
Cash dividends of $3.40
  per share                         0    (2,796)        (366)       0               0             0       (3,162)
Purchase of treasury shares -
  at cost                           0         0            0        0               0           (80)         (80)
Amortization of expense related
  to stock benefit plans            0        18            0      120               0             0          138
Purchase of shares for
  recognition and retention plan    0        45            0     (486)              0           441            0
Unrealized losses on securities
  designated as available
  for sale, net of related
  tax effects                       0         0            0        0              (9)            0           (9)

Balance at September 30, 1996       0     6,740        4,787   (1,160)             (3)        9,725

Net earnings for the year
  ended September 30, 1997          0         0          627        0               0             0          627
Cash dividends of $.40 per share    0         0         (371)       0               0             0         (371)
Purchase of treasury shares -
  at cost                           0         0            0        0               0          (223)        (223)
Amortization of expense related
  to stock benefit plans            0       144            0      393               0           537
Unrealized gains on securities
  designated as available
  for sale, net of related
  tax effects                       0         0            0        0              49             0           49

Balance at September 30, 1997  $    0    $6,884       $5,043   $ (767)         $   40        $ (856)     $10,344
</TABLE>

The accompanying notes are an integral part of these statements.
                                       24

                  Harvest Home Financial Corporation
<TABLE>
                                   
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   
                   For the year ended September 30,
                            (In thousands)


                                   
<CAPTION>
                                               1997     1996      1995
<S>                                          <C>      <C>        <C>
Cash flows from operating activities:
  Net earnings for the year                  $   627   $  132    $  640
  Adjustments to reconcile net earnings
    to net cash provided by (used in)
    operating activities:
    Amortization of deferred loan
      origination fees                           (34)     (43)      (42)
    Depreciation and amortization                 51       51        43
    Amortization of premiums on mortgage-
      backed securities                            6       14        19
    Amortization of premiums on investment
      securities                                  17       42        36
    Gain on sale of investment and mortgage-
      backed securities                           (7)      (2)        0
    Amortization expense of stock benefit plans  537      138         0  
    Provision for losses on loans                  9        1        12
    Federal Home Loan Bank stock dividends       (59)     (40)      (34)
    Increase (decrease) in cash due to
      changes in:
    Accrued interest receivable on loans         (36)     (23)       (2)
      Accrued interest receivable on mortgage-
        backed securities                        (37)     (47)      (11)
    Accrued interest receivable on investments
        and interest-bearing deposits             85      116      (156)
      Prepaid expenses and other assets            1       15        94
      Accrued interest payable                    12       53       (12)
      Other liabilities                         (563)     677       134
      Federal income taxes
        Current                                   22      (57)      (46)
        Deferred                                 183     (105)       34

Net cash provided by operating activities        814      922       709

Cash flows provided by (used in)
investing activities:
  Principal repayments on mortgage-backed
    securities                                 2,644    1,144     1,228
  Purchase of mortgage-backed securities     (18,205) (12,972)   (2,013)
  Proceeds from sale of mortgage-backed
    Securities available for sale                141      267         0
  Proceeds from maturity of mortgage-backed
    securities                                 3,500        0         0
  Proceeds from maturity of investment
    securities                                 2,003    6,000     6,000
  Proceeds from sale of investment
    securities available for sale              2,003        0         0
  Purchase of investment securities                0        0   (14,076)
  Principal repayments on loans                5,976    8,280     5,002
  Loan disbursements                          (8,913) (12,260)   (6,898)
  Purchase of Federal Home Loan Bank stock      (572)       0         0
  Purchase of office equipment                   (80)    (291)      (80)
Net cash used in investing activities        (11,503)  (9,832)  (10,837)

Net cash used in operating and investing
  activities (balance carried forward)       (10,689)  (8,910)  (10,128)

</TABLE>
<TABLE>
                                   
                  Harvest Home Financial Corporation
                                   
           CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                                   
                   For the year ended September 30,
                            (In thousands)

<CAPTION>
                                             1997      1996      1995

<S>                                        <C>       <C>       <C>
Net cash used in operating and investing
  activities (balance brought forward)     $(10,689) $ (8,910) $(10,128)

Cash flows provided by (used in)
  financing activities:
  Net increase (decrease) in deposit
    accounts                                    828     1,533   (11,385)
  Proceeds from Federal Home Loan Bank
    Advances                                 18,200    10,000         0
  Repayment of Federal Home Loan Bank
    Advances                                 (4,200)        0         0
  Advances by borrowers for taxes and
    insurance                                    11        14         8
  Net proceeds from issuance of common stock      0         0     8,679
  Dividends on common stock                    (371)   (3,162)     (200)
  Purchase of treasury stock                   (223)      (80)     (994)
Net cash provided by (used in) financing
  activities                                  14,245     8,305    (3,892)

Net increase (decrease) in cash and cash
  equivalents                                  3,556      (605)  (14,020)

Cash and cash equivalents at beginning
  of year                                      1,708     2,313    16,333

Cash and cash equivalents at end of year     $ 5,264   $ 1,708   $ 2,313

Supplemental disclosure of cash flow
information:
  Cash paid during the year for:
    Federal income taxes                     $    96   $   208   $   260

    Interest paid on deposits and borrowings $ 3,677   $ 2,916   $ 2,600


Supplemental disclosure of noncash
investing activities:
  Transfer of investment and mortgage-
    backed securities to an available
    for sale classification                  $     0   $25,732   $     0

  Unrealized gains (losses) on securities
    designated as available for sale,
    net of related tax effects               $    49   $    (9)  $     0

</TABLE>
The accompanying notes are an integral part of these statements.


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  
  During fiscal 1993, the Board of Directors of Harvest Home Savings  Bank,
  (the   "Savings  Bank")  adopted  an  overall  plan  of  conversion   and
  reorganization (the "Plan") whereby the Savings Bank would convert to the
  stock  form of ownership (the "Conversion"), followed by the issuance  of
  all  of  the  Savings Bank's outstanding stock to a newly formed  holding
  company, Harvest Home Financial Corporation (the "Corporation"), and  the
  issuance  of common shares of the Corporation to subscribing  members  of
  the  Savings  Bank.  The conversion to the stock form  of  ownership  was
  completed  on October 7, 1994, culminating in the Corporation's  issuance
  of   991,875  common  shares.   Condensed  financial  statements  of  the
  Corporation  for the years ended September 30, 1997, 1996  and  1995  are
  presented  in  Note  N.   Future  references  are  made  to  either   the
  Corporation or the Savings Bank as applicable.
  
  The  Corporation  is a savings and loan holding company whose  activities
  are  primarily  limited to holding the stock of the  Savings  Bank.   The
  Savings  Bank  conducts a general banking business in  southwestern  Ohio
  which  consists  of  attracting deposits  from  the  general  public  and
  primarily   applying  those  funds  to  the  origination  of  loans   for
  residential,  consumer and nonresidential purposes.  The  Savings  Bank's
  profitability is significantly dependent on net interest income, which is
  the  difference  between interest income generated from  interest-earning
  assets  (i.e.  loans and investments) and the interest  expense  paid  on
  interest-bearing liabilities (i.e. customer deposits and borrowed funds).
  Net  interest  income  is affected by the relative  amount  of  interest-
  earning assets and interest-bearing liabilities and the interest received
  or  paid on these balances.  The level of interest rates paid or received
  by  the  Savings  Bank can be significantly influenced  by  a  number  of
  environmental  factors, such as governmental monetary  policy,  that  are
  outside of management's control.
  
  The consolidated financial information presented herein has been prepared
  in  accordance with generally accepted accounting principles ("GAAP") and
  general accounting practices within the financial services industry.   In
  preparing  consolidated  financial statements in  accordance  with  GAAP,
  management is required to make estimates and assumptions that affect  the
  reported  amounts  of  assets  and  liabilities  and  the  disclosure  of
  contingent assets and liabilities at the date of the financial statements
  and  revenues  and expenses during the reporting period.  Actual  results
  could differ from such estimates.
  
  The  following  is a summary of the Corporation's significant  accounting
  policies which have been consistently applied in the preparation  of  the
  accompanying consolidated financial statements.
  
  1.  Principles of Consolidation
  
  The  consolidated  financial  statements  include  the  accounts  of  the
  Corporation and the Savings Bank.  All significant intercompany  balances
  and transactions have been eliminated.
  
  2.  Investment Securities and Mortgage-Backed Securities
  
  The Corporation accounts for investment and mortgage-backed securities in
  accordance with Statement of Financial Accounting Standards ("SFAS")  No.
  115  "Accounting for Certain Investments in Debt and Equity  Securities".
  SFAS  No. 115 requires that investments in debt and equity securities  be
  categorized  as  held-to-maturity,  trading,  or  available   for   sale.
  Securities classified as held-to-maturity are to be carried at cost  only
  if  the  Corporation has the positive intent and ability  to  hold  these
  securities to maturity.  Trading securities and securities designated  as
  available  for  sale are carried at fair value with resulting  unrealized
  gains   or  losses  recorded  to  operations  or  shareholders'   equity,
  respectively.
  
  In  November 1995, the Financial Accounting Standards Board (the  "FASB")
  issued  a  Special Report on Implementation of SFAS No. 115 (the "Special
  Report"),  which provided for the reclassification of securities  between
  the held-to-maturity, available for sale and trading portfolios during  a
  forty-five  day period, without calling into question management's  prior
  intent   with  respect  to  such  securities.   Management   elected   to
  restructure  the  Corporation's  securities  portfolio  pursuant  to  the
  Special  Report,  and  transferred  all  investment  and  mortgage-backed
  securities from the held-to-maturity portfolio to an available  for  sale
  classification.   At  September  30, 1997  and  1996,  the  Corporation's
  shareholders' equity reflected a net unrealized gain and a net unrealized
  loss  of  $40,000 and $9,000, respectively, on securities  designated  as
  available for sale.
  
  Realized gains and losses on sales of securities are recognized using the
  specific identification method.
  
  3.  Loans Receivable
  
  Loans receivable are stated at the principal amount outstanding, adjusted
  for  deferred  loan origination fees and the allowance for  loan  losses.
  Interest is accrued as earned unless the collectibility of the loan is in
  doubt.  Interest on loans that are contractually past due is charged off,
  or an allowance is established based on management's periodic evaluation.
  The  allowance is established by a charge to interest income equal to all
  interest  previously accrued, and income is subsequently recognized  only
  to  the  extent  that cash payments are received until,  in  management's
  judgment,  the borrower's ability to make periodic interest and principal
  payments  has returned to normal, in which case the loan is  returned  to
  accrual status.  If the ultimate collectibility of the loan is in  doubt,
  in  whole  or  in  part,  all payments received on nonaccrual  loans  are
  applied to reduce principal until such doubt is eliminated.
  
  4.  Loan Origination Fees
  
  The  Savings  Bank accounts for loan origination fees in accordance  with
  SFAS  No. 91 "Accounting for Nonrefundable Fees and Costs Associated with
  Originating  or  Acquiring  Loans and Initial  Direct  Cost  of  Leases".
  Pursuant to the provisions of SFAS No. 91, origination fees received from
  loans,  net  of direct origination costs, are deferred and  amortized  to
  interest  income  using the level-yield method, giving effect  to  actual
  loan  prepayments.   Additionally,  SFAS  No.  91  generally  limits  the
  definition of loan origination costs to the direct costs of originating a
  loan,  i.e., principally actual personnel costs.  Fees received for  loan
  commitments  that  are expected to be drawn upon, based  on  the  Savings
  Bank's  experience with similar commitments, are deferred  and  amortized
  over  the life of the loan using the level-yield method.  Fees for  other
  loan  commitments  are deferred and amortized over  the  loan  commitment
  period on a straight-line basis.

  5.  Allowance for Losses on Loans
  
  It  is  the  Savings  Bank's policy to provide valuation  allowances  for
  estimated  losses on loans based on past loss experience, trends  in  the
  level of delinquent and problem loans, adverse situations that may affect
  the  borrower's  ability to repay, the estimated value of any  underlying
  collateral and current and anticipated economic conditions in the primary
  lending  area.   When  the  collection of a  loan  becomes  doubtful,  or
  otherwise troubled, the Savings Bank records a loan charge-off  equal  to
  the  difference between the fair value of the property securing the  loan
  and  the  loan's  carrying  value.  Major  loans  (including  development
  projects)  and major lending areas are reviewed periodically to determine
  potential  problems at an early date.  The allowance for loan  losses  is
  increased  by  charges to earnings and decreased by charge-offs  (net  of
  recoveries).
  
  In  June 1993, the FASB issued SFAS No. 114, "Accounting by Creditors for
  Impairment  of a Loan," which was amended by SFAS No. 118 as  to  certain
  income recognition and financial statement disclosure provisions and  was
  effective for the Corporation in fiscal 1996.  SFAS No. 114 requires that
  impaired  loans  be  measured based upon the present  value  of  expected
  future cash flows discounted at the loan's effective interest rate or, as
  an  alternative, at the loan's observable market price or fair  value  of
  the  collateral.   The Savings Bank's current procedures  for  evaluating
  impaired loans result in carrying such loans at the lower of cost or fair
  value.
  
  The  Savings  Bank  adopted  SFAS No. 114, as  subsequently  amended,  on
  October  1,  1995,  without  material effect  on  consolidated  financial
  condition or results of operations.
  
  A  loan  is defined under SFAS No. 114 as impaired when, based on current
  information and events, it is probable that a creditor will be unable  to
  collect  all amounts due according to the contractual terms of  the  loan
  agreement.  In applying the provisions of SFAS No. 114, the Savings  Bank
  considers  its  investment in one- to four-family residential  loans  and
  consumer installment loans to be homogeneous and therefore excluded  from
  separate  identification for evaluation of impairment.  With  respect  to
  the  Savings Bank's investment in multi-family and nonresidential  loans,
  and  its  evaluation  of impairment thereof, such  loans  are  collateral
  dependent, and as a result, are carried as a practical expedient  at  the
  lower of cost or fair value.
  
  It  is the Savings Bank's policy to charge off unsecured credits that are
  more  than ninety days delinquent.  Similarly, collateral dependent loans
  which  are  more than ninety days delinquent are considered to constitute
  more  than  a minimum delay in repayment and are evaluated for impairment
  under SFAS No. 114 at that time.
  
  At  September 30, 1997 and 1996, the Savings Bank had no loans that would
  be defined as impaired under SFAS No. 114.
  
  6.  Office Premises and Equipment
  
  Office   premises  and  equipment  are  carried  at  cost   and   include
  expenditures   which  extend  the  useful  lives  of   existing   assets.
  Maintenance,  repairs and minor renewals are expensed as  incurred.   For
  financial  reporting, depreciation and amortization are provided  on  the
  straight-line  and  accelerated methods over  the  useful  lives  of  the
  assets, estimated to be forty years for buildings, ten to forty years for
  building improvements, and five to ten years for furniture and equipment.
  An accelerated method is used for tax reporting purposes.
  
  7.  Real Estate Acquired Through Foreclosure
  
  Real  estate acquired through foreclosure is carried at the lower of  the
  loan's  unpaid  principal  balance (cost) or fair  value  less  estimated
  selling expenses at the date of acquisition.  Real estate loss provisions
  are  recorded  if the properties' fair value subsequently declines  below
  the amount determined at the recording date.  In determining the lower of
  cost  or  fair  value at acquisition, costs relating to  development  and
  improvement of property are capitalized.  Costs relating to holding  real
  estate  acquired through foreclosure, net of rental income,  are  charged
  against earnings as incurred.
  
  8.  Federal Income Taxes
  
  The  Corporation accounts for federal income taxes in accordance with the
  provisions of SFAS No. 109, "Accounting for Income Taxes".  SFAS No.  109
  established financial accounting and reporting standards for the  effects
  of  income taxes that result from the Corporation's activities within the
  current and previous years.  Pursuant to the provisions of SFAS No.  109,
  a  deferred  tax liability or deferred tax asset is computed by  applying
  the  current statutory tax rates to net taxable or deductible differences
  between the tax basis of an asset or liability and its reported amount in
  the  consolidated  financial statements that will result  in  taxable  or
  deductible  amounts in future periods.  Deferred tax assets are  recorded
  only   to  the  extent  that  the  amount  of  net  deductible  temporary
  differences  or  carryforward attributes may be utilized against  current
  period  earnings,  carried  back against  prior  years  earnings,  offset
  against  taxable  temporary differences reversing in future  periods,  or
  utilized to the extent of management's estimate of future taxable income.
  A  valuation allowance is provided for deferred tax assets to the  extent
  that  the  value of net deductible temporary differences and carryforward
  attributes  exceeds  management's estimates of taxes  payable  on  future
  taxable  income.   Deferred tax liabilities are  provided  on  the  total
  amount of net temporary differences taxable in the future.
  
  The   Corporation's  principal  temporary  differences   between   pretax
  financial  income  and  taxable income result from different  methods  of
  accounting  for  deferred loan origination fees and costs,  Federal  Home
  Loan  Bank  stock  dividends, retirement expense, the general  loan  loss
  allowance  and  percentage of earnings bad debt  deductions.   Additional
  temporary differences result from depreciation computed using accelerated
  methods for tax purposes.
  
  9.  Benefit Plans
  
  The  Savings Bank provides a supplemental retirement plan to certain  key
  officers.   The  Savings Bank's obligations under the  supplemental  plan
  have been funded via the purchase of key man life insurance policies  for
  which   the   Savings  Bank  is  the  beneficiary.   Expense  under   the
  supplemental plan totaled approximately $1,000 during each of the  fiscal
  years ended September 30, 1997, 1996 and 1995.
  
  The  Savings  Bank  had provided retirement benefits  through  a  defined
  contribution pension plan to substantially all employees who had attained
  the  age of 21 and completed one year of service.  Contributions  to  the
  plan  were  made annually and amounted to 15% of base compensation.   The
  plan  was  terminated  during fiscal 1995.   The  provision  for  pension
  expense totaled $13,000 for the fiscal year ended September 30, 1995.
  
  In   conjunction   with  its  common  stock  offering,  the   Corporation
  implemented  an Employee Stock Ownership Plan (ESOP).  The ESOP  provides
  retirement  benefits for substantially all full-time employees  who  have
  completed one year of service.  The Corporation accounts for the ESOP  in
  accordance  with Statement of Position (SOP) 93-6, "Employers' Accounting
  for  Employee  Stock Ownership Plans".  SOP 93-6 changed the  measure  of
  compensation  expense recorded by employers from the  cost  of  allocated
  ESOP  shares  to the fair value of ESOP shares allocated to  participants
  during  a  fiscal year.  Expense recognized related to the  ESOP  totaled
  approximately $48,000, $342,000 and $71,000 for the years ended September
  30, 1997, 1996 and 1995, respectively.
  
  The  Corporation  also  has  a  Recognition  and  Retention  Plan  (RRP).
  Subsequent to the offering the RRP purchased 39,675 shares of its  common
  stock  in  the open market.  During fiscal 1996, 34,712 shares  available
  under the RRP were granted to executive officers and members of the Board
  of Directors of the Corporation effective upon ratification of the RRP by
  the Corporation's shareholders.  Common stock granted under the RRP vests
  ratably  over  a  five  year  period, commencing  in  December  1995.   A
  provision  of  $97,000  and $73,000 related to the  RRP  was  charged  to
  expense  for  the  fiscal  years  ended  September  30,  1997  and  1996,
  respectively.
  
  10.  Earnings Per Share and Dividends Per Share
  
  Earnings per share for the years ended September 30, 1997, 1996 and  1995
  is  based upon the weighted-average shares outstanding during the period,
  less 36,774, 65,933 and 79,350 shares, respectively, in the ESOP that are
  unallocated  and  not committed to be released.  Weighted-average  common
  shares  deemed outstanding totaled 894,201, 848,210 and 879,978  for  the
  years  ended September 30, 1997, 1996 and 1995, respectively.  There  was
  no material dilutive effect to the Corporation's stock option plan.
  
  During  fiscal  1996, the Corporation declared capital  distributions  of
  $3.40  per  common share.  Of this amount, $3.00 per share  was  paid  in
  September  1996 from funds retained by the Corporation in the  conversion
  and  was  deemed by management to constitute a return of excess  capital.
  Accordingly,  the Corporation charged the return of capital  distribution
  to  additional paid-in-capital.  Management has obtained a Private Letter
  Ruling   from  the  Internal  Revenue  Service  which  states  that   the
  Corporation's  dividend  payments in excess of accumulated  earnings  and
  profits  are  considered a tax-free return of capital for federal  income
  tax  purposes.  As a result, management believes that approximately  $.37
  and  $2.64 of the fiscal 1997 and 1996 distributions constituted  a  tax-
  free return of capital.
  
  11.  Fair Value of Financial Instruments
  
  SFAS  No.  107,  "Disclosures about Fair Value of Financial Instruments",
  requires  disclosure  of  the fair value of financial  instruments,  both
  assets  and  liabilities whether or not recognized  in  the  consolidated
  statement of financial condition, for which it is practicable to estimate
  that value.  For financial instruments where quoted market prices are not
  available,  fair  values are based on estimates using present  value  and
  other valuation methods.
 
  The  methods  used  are  greatly affected  by  the  assumptions  applied,
  including  the  discount  rate  and  estimates  of  future  cash   flows.
  Therefore, the fair values presented may not represent amounts that could
  be realized in an exchange for certain financial instruments.
  
  The  following  methods and assumptions were used by the  Corporation  in
  estimating  its  fair  value  disclosures for  financial  instruments  at
  September 30, 1997 and 1996:
  
          Cash and cash equivalents:  The carrying amounts presented in the
          consolidated statements of financial condition for cash and  cash
          equivalents are deemed to approximate fair value.
  
          Investment  and  mortgage-backed securities:  For investment  and
          mortgage-backed  securities, fair value is deemed  to  equal  the
          quoted market price.
  
          Loans  receivable:  The loan portfolio has been  segregated  into
          categories  with similar characteristics, such as one-  to  four-
          family  residential, multi-family residential and  nonresidential
          real  estate.  These loan categories were further delineated into
          fixed-rate  and adjustable-rate loans.  The fair values  for  the
          resultant loan categories were computed via discounted cash  flow
          analysis,  using current interest rates offered  for  loans  with
          similar terms to borrowers of similar credit quality.  For  loans
          on  deposit  accounts and consumer and other loans,  fair  values
          were   deemed  to  equal  the  historic  carrying  values.    The
          historical carrying amount of accrued interest on loans is deemed
          to approximate fair value.
  
          Federal  Home Loan Bank stock:  The carrying amount presented  in
          the  consolidated statements of financial condition is deemed  to
          approximate fair value.
 
          Deposits:   The  fair  value of NOW accounts, passbook  accounts,
          money  market demand and escrow deposits is deemed to approximate
          the  amount  payable  on  demand.   Fair  values  for  fixed-rate
          certificates  of deposit have been estimated using  a  discounted
          cash  flow calculation using the interest rates currently offered
          for deposits of similar remaining maturities.
  
  11.  Fair Value of Financial Instruments (continued)
 
          Advances  from  the Federal Home Loan Bank:  The  fair  value  of
          these advances is estimated using the rates currently offered for
          similar advances of similar remaining maturities.
  
          Commitments to extend credit:  For fixed-rate and adjustable-rate
          loan   commitments,  the  fair  value  estimate   considers   the
          difference between current levels of interest rates and committed
          rates.   At  September 30, 1997 and 1996, the difference  between
          the  fair value and notional amount of loan commitments  was  not
          material.
  
  Based  on  the foregoing methods and assumptions, the carrying value  and
  fair  value  of the Corporation's financial instruments at September  30,
  are as follows:
<TABLE>
<CAPTION>
                                         1997                1996
                                   Carrying  Fair      Carrying  Fair
                                    value    value      value    value
                                             (In thousands)
 
 <S>                               <C>       <C>       <C>       <C>
  Financial assets
    Cash and cash equivalents       $ 5,264   $ 5,264   $ 1,708   $ 1,708
    Investment securities             8,039     8,039    12,105    12,105
    Mortgage-backed securities       32,466    32,466    20,429    20,429
    Loans receivable                 45,229    46,244    42,267    42,695
    Stock in Federal Home
      Loan Bank                       1,219     1,219       588       588
  
                                    $92,217   $93,232   $77,097   $77,525
  Financial liabilities
    Deposits                        $58,786   $58,938   $57,958   $58,099
    Advances from Federal Home
      Loan Bank                      24,000    23,837    10,000    10,046
    Escrow deposits                     107       107        96        96
  
                                    $82,893   $82,882   $68,054   $68,241
</TABLE>
  
  12.  Cash and Cash Equivalents
  
  For  purposes of reporting cash flows, cash and cash equivalents  include
  cash and due from banks, federal funds sold and interest-bearing deposits
  in  other  financial institutions with original maturities of  less  than
  ninety days.
  
  13.  Reclassifications
  
  Certain prior year amounts have been reclassified to conform to the  1997
  consolidated financial statement presentation.


NOTE B - INVESTMENTS AND MORTGAGE-BACKED SECURITIES

  The  amortized cost and approximate fair values of investment  securities
  at September 30, 1997 and 1996 are summarized as follows:
<TABLE>
<CAPTION>
  
                                             1997
                                           Gross        Gross
                              Amortized  unrealized  unrealized    Fair
                                 cost     gains        losses      value
  
  <S>                        <C>         <C>       <C>         <C>
  
  Available for sale: (In thousands)
  
    U.S. Government agency
      obligations            $ 7,972      $67       $   0       $ 8,039
  
                                             1996
                                            Gross       Gross
                              Amortized   unrealized  unrealized   Fair
                                cost        gains       losses     value
  
  Available for sale: (In thousands)

  <S>                       <C>         <C>       <C>             <C>
  
    U.S. Government agency
      obligations            $11,992     $123      $   10          $12,105
  
  The  amortized cost and approximate fair values of U.S. Government agency
  obligations  by contractual term to maturity at September  30  are  shown
  below:
<CAPTION>
  
                                        1997                    1996
                               Amortized    Fair        Amortized   Fair
                                  Cost      value          cost     value
  
                                            (In thousands)
  
  <S>                            <C>        <C>          <C>        <C>
  Due  within one year           $3,971     $4,013       $  4,030   $ 4,065
  Due after one year through
       five years                 4,001      4,026          7,962     8,040
  
                                 $7,972     $8,039        $11,992   $12,105
  
</TABLE>
  

  The  amortized  cost,  gross  unrealized gains, gross  unrealized  losses  and
  approximate  fair values of mortgage-backed securities at September  30,  1997
  and 1996 are summarized as follows:
<TABLE>
  
<CAPTION>
                                                                       1997
 
                                                               Gross        Gross
                                                Amortized    unrealized   unrealized     Fair
                                                   cost         gains        losses     value

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

  Available for sale:                                              (In thousands)

    Federal Home Loan Mortgage Corporation:
       Participation certificates                $ 2,236      $   19       $   37       $  2,218
       Collateralized  mortgage  obligations       6,471          10            4          6,477
    Federal National Mortgage Association:
      Participation certificates                   4,058          30           53          4,035
       Collateralized mortgage obligations        19,709          65           38         19,736
  
           Total mortgage-backed securities      $32,474        $124        $ 132       $ 32,466
  
                                                                      1996
                                                                Gross        Gross
                                                Amortized    unrealized   unrealized  Fair
                                                  cost         gains        losses      value
  
Available for sale:                           (In thousands)

    Federal Home Loan Mortgage Corporation:
      Participation certificates                 $ 2,732      $   8         $  47       $  2,693
      Collateralized mortgage obligations          7,003         57            25          7,035
    Government National Mortgage Association:
      Participation certificates                      99         11             0            110
    Federal National Mortgage Association:
      Participation certificates                   4,682         17           109          4,590
      Collateralized mortgage obligations          6,040          0            39          6,001
  
  Total mortgage-backed securities               $20,556      $  93         $ 220       $ 20,429
</TABLE>
  
NOTE B - INVESTMENTS AND MORTGAGE-BACKED SECURITIES (continued)

  The amortized cost of mortgage-backed securities, by contractual terms to
  maturity,  are  shown  below.   Expected  maturities  will  differ   from
  contractual maturities because borrowers may generally prepay obligations
  without prepayment penalties.
                                               September 30,
                                               1997       1996
                                              (In thousands)
  
  Due within three years                   $  1,145    $     0
  Due in three to five years                  2,169      1,207
  Due in five to ten years                    1,253      3,778
  Due in ten to twenty years                    834      1,117
  Due after twenty years                     27,073     14,454
  
                                            $32,474    $20,556
  
  
NOTE C - LOANS RECEIVABLE

  The  composition of the loan portfolio at September 30 is  summarized  as
  follows:
<TABLE>
  
<CAPTION>
                                                 1997     1996
                                              (In thousands)

<S>                                           <C>      <C>
  Residential real estate
    One-to-four family                        $39,821  $35,491
    Home equity lines of credit                 1,130    1,197
    Multifamily                                 1,402    1,522
    Construction                                1,513    3,290
  Nonresidential real estate and land           2,554    3,281
  Deposit account                                  45       42
                                               46,465   44,823
  Less:
    Undisbursed portion of loans in process     1,019    2,320
    Deferred loan origination fees                102      125
    Allowance for loan losses                     115      111
  
                                              $45,229  $42,267
</TABLE>
  
  
  
  As  depicted  above, the Savings Bank's lending efforts have historically
  focused  on  one-to-four  family residential and multifamily  residential
  real estate loans, which comprise approximately $42.6 million, or 94%, of
  the  total  loan portfolio at September 30, 1997, and $38.9  million,  or
  92%,  of the total loan portfolio at September 30, 1996.  Generally, such
  loans have been underwritten on the basis of no more than an 80% loan-to-
  value  ratio,  which  has historically provided  the  Savings  Bank  with
  adequate collateral coverage in the event of default.  Nevertheless,  the
  Savings  Bank, as with any lending institution, is subject  to  the  risk
  that  residential  real estate values could deteriorate  in  its  primary
  lending  area of southwestern Ohio, thereby impairing collateral  values.
  However, management is of the belief that residential real estate  values
  in the Savings Bank's primary lending area are presently stable.
  
  The  Savings  Bank  has  sold participating interests  in  loans  in  the
  secondary market, retaining servicing on the loans sold.  Loans sold  and
  serviced for others totaled approximately $250,000, $350,000 and $540,000
  at  September  30, 1997, 1996 and 1995, respectively.  At  September  30,
  1997, all loans serviced for others had been sold with recourse.
  
  In the ordinary course of business, the Savings Bank has granted loans to
  some  of  its  directors, officers and their related business  interests.
  All  loans  to related parties have been made on substantially  the  same
  terms  as those prevailing at the time for unrelated third parties.   The
  aggregate   dollar  amount  of  loans  to  officers  and  directors   was
  approximately $156,000, $181,000 and $203,000 at September 30, 1997, 1996
  and 1995, respectively.  During the fiscal year ended September 30, 1997,
  no  loans  were  disbursed  to  officers and directors,  while  principal
  repayments of $25,000 were received from officers and directors.
  
  
NOTE D - ALLOWANCE FOR LOAN LOSSES

  The  activity in the allowance for loan losses is summarized  as  follows
  for the years ended September 30:
<TABLE>
<CAPTION>
                                           1997    1996   1995

                                               (In thousands)
  
<S>                                        <C>     <C>   <C>
  Balance at beginning of year             $111    $110  $  98
  Provision for losses on loans               9       1     12
  Charge-off of loans                       (5)       0      0
  
  Balance at end of year                   $115    $111   $110
  
</TABLE>
  
  
  At  September 30, 1997, the Savings Bank's allowance for loan losses  was
  comprised solely of a general loan loss allowance, which is includible as
  a component of regulatory risk-based capital.
  
  At  September 30, 1997, 1996 and 1995, the Savings Bank's nonaccrual  and
  nonperforming loans totaled $95,000, $164,000 and $143,000, respectively.
  Interest  income  which  would have been recognized  if  such  loans  had
  performed  pursuant  to  contractual terms totaled approximately  $6,000,
  $7,000 and $5,000 for the years ended September 30, 1997, 1996 and  1995,
  respectively.
  
  
NOTE E - OFFICE PREMISES AND EQUIPMENT

  Office premises and equipment are comprised of the following at September
  30:
<TABLE>
<CAPTION>
  
                                                 1997     1996
                                              (In thousands)

<S>                                           <C>      <C>
  Land and improvements                       $   119  $   119
  Office buildings and improvements             1,230    1,197
  Furniture, fixtures and equipment               492      445
  Automobile                                       14       14
                                                1,855    1,775
    Less accumulated depreciation                 874      823
  
                                              $   981   $  952
</TABLE>
  
  
NOTE F - DEPOSITS

  Deposits consist of the following major classifications at September 30:
<TABLE>
<CAPTION>
  
  Deposit type and weighted-average          1997            1996
  interest rate                         Amount    %     Amount    %
  
                                               (Dollars in thousands)
                                                        
  
  <S>                                 <C>      <C>      <C>     <C>
  NOW accounts - 2.69% in 1997 and
    2.66% in 1996                     $  2,699   4.6%$   2,647    4.6%
  Super NOW accounts - 2.75% in 1997
    and 1996                               300    .5       192     .3
  Passbook accounts - 2.79% in 1997
    and 1996                             9,143  15.6     9,530   16.4
  Money market demand deposit -
    3.00% in 1997 and 1996               4,332   7.4     4,721    8.2
         Total demand, transaction and
           passbook deposits            16,474  28.1    17,090   29.5
  
  Certificates of deposit:
    Original maturities of:
      Less than 12 months
        5.09% in 1997 and 4.94% in 1996  3,547   6.0     5,799   10.0
      12 months
        5.87% in 1997 and 5.34% in 1996 21,993  37.4    15,495   26.7
      15 months
        5.65% in 1996                       0      0     2,196    3.8
      18 months
        5.82% in 1997 and 5.86% in 1996  4,634   7.9     4,652    8.0
      24 months
        4.60% in 1996                       0      0        52     .1
      30 months
        5.79% in 1997 and 5.74% in 1996  4,297   7.3     4,494    7.8
      48 months
        5.03% in 1997 and 5.06% in 1996     72    .1       188     .3
      More than 48 months
        6.12% in 1997 and 6.13% in 1996  7,769  13.2     7,992   13.8
  
         Total certificates of deposit  42,312  71.9    40,868   70.5
  
         Total deposits                $58,786 100.0%  $57,958  100.0%
</TABLE>
  
  At  September  30, 1997 and 1996, the Savings Bank had deposit  accounts  with
  balances  greater  than  $100,000  totaling $2.5  million  and  $2.0  million,
  respectively.
  
  Interest  expense on deposit accounts is summarized as  follows  for  the
  years ended September 30:
<TABLE>
<CAPTION>
  
                                           1997    1996   1995
                                               (In thousands)
  <S>                                   <C>     <C>     <C>
  
  Money market demand deposit accounts  $   144 $   144 $  160
  Passbook accounts                         252     266    343
  Escrow accounts                             4       4      3
  NOW accounts                              101      65     58
  Super NOW accounts                          6       9      9
  Certificates of deposit                 2,280   2,326  1,996
  
                                         $2,786  $2,814 $2,569
</TABLE>
  
  Maturities  of  outstanding  certificates of deposit  are  summarized  as
  follows at September 30:
<TABLE>
<CAPTION>
  
                                                1997      1996
                                             (In thousands)
  
<S>                                          <C>       <C>
  Less than six months                       $13,423   $14,110
  Six months to one year                      19,090    14,109
  One to two years                             3,536     5,074
  Two to three years                           3,548     2,092
  Three to four years                          2,338     3,111
  Over four years                                377     2,372
  
                                             $42,312   $40,868
</TABLE>

NOTE G - ADVANCES FROM THE FEDERAL HOME LOAN BANK
  
  Advances from the Federal Home Loan Bank, collateralized at September 30,
  1997  by  pledges  of certain residential mortgage loans  totaling  $36.0
  million  and  the  Savings Bank's investment in Federal  Home  Loan  Bank
  stock, are summarized as follows:
  
    Interest Rate     Maturing fiscal       September 30,
                      year ending in       1997      1996
                                            (In thousands)
  
        6.53%                 1998      $  3,200   $     0
        5.55%                 2006             0    10,000
        5.71%                 2006         6,500         0
        5.71%                 2007        14,300         0
  
                                         $24,000   $10,000
  
  
NOTE H - COMMITMENTS

  The  Savings  Bank is a party to financial instruments with  off-balance-
  sheet  risk in the normal course of business to meet the financing  needs
  of   its   customers  including  commitments  to  extend  credit.    Such
  commitments involve, to varying degrees, elements of credit and interest-
  rate  risk  in  excess  of  the  amount recognized  in  the  consolidated
  statement  of financial condition.  The contract or notional  amounts  of
  the  commitments reflect the extent of the Savings Bank's involvement  in
  such financial instruments.
  
  The Savings Bank's exposure to credit loss in the event of nonperformance
  by  the other party to the financial instrument for commitments to extend
  credit  is  represented  by  the contractual  notional  amount  of  those
  instruments.   The Savings Bank uses the same credit policies  in  making
  commitments and conditional obligations as those utilized for on-balance-
  sheet instruments.
  
  At  September 30, 1997, the Savings Bank had commitments for unused lines
  of  credit under home equity loans of $1.7 million.  Management  believes
  that  such loan commitments are able to be funded through cash flow  from
  operations  and existing excess liquidity.  Fees received  in  connection
  with these commitments have not been recognized in earnings.
  
  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
  may  expire without being drawn upon, the total commitment amounts do not
  necessarily  represent  future  cash  requirements.   The  Savings   Bank
  evaluates each customer's creditworthiness on a case-by-case basis.   The
  amount  of collateral obtained, if it is deemed necessary by the  Savings
  Bank upon extension of credit, is based on management's credit evaluation
  of  the counterparty.  Collateral on loans may vary but the preponderance
  of  loans granted generally include a mortgage interest in real estate as
  security.
  
  
NOTE I - FEDERAL INCOME TAXES

  Federal  income taxes differ from the amounts computed at  the  statutory
  corporate tax rate for the years ended September 30, as follows:

<TABLE>
<CAPTION>
  
                                         1997    1996     1995
                                             (In thousands)
<S>                                      <C>      <C>     <C>
  Federal income taxes computed at
    statutory rate                       $320     $60     $329
  Decrease in taxes resulting from:
    Other (primarily surtax exemptions
      in 1996)                            (7)    (15)       0
  Federal income tax provision per
    Consolidated financial statements    $313     $45     $329
</TABLE>
  
  
 The  composition  of  the  Corporation's net  deferred  tax  liability  at
 September 30 is as follows:
<TABLE>
<CAPTION>
 
                                                1997     1996
                                              (In thousands)

<S>                                           <C>       <C>
  Taxes (payable) refundable on temporary
  differences at estimated corporate tax rate:
    Deferred tax assets:
      General loan loss allowance             $   39    $  38
      Deferred loan origination fees               0       19
      Unrealized loss on securities designated as
        available for sale                         0        5
      Stock benefit plans                         25       31
      SAIF recapitalization assessment             0      125
      Other                                        3        0
     Total deferred tax assets                    67      218
  
    Deferred tax liabilities:
      Percentage of earnings bad debt 
        deduction                               (125)    (125)
      Deferred loan origination costs            (17)       0
      Federal Home Loan Bank stock dividends    (156)    (136)
      Unrealized gain on securities designated
        as available for sale                   ( 19)       0
      Other                                       (3)      (3)
     Total deferred tax liabilities             (320)    (264)
  
     Net deferred tax liability                $(253)   $ (46)
</TABLE>
  
  The  Savings  Bank was allowed a special bad debt deduction  based  on  a
  percentage  of  earnings, generally limited to 8%  of  otherwise  taxable
  income  and subject to certain limitations based on aggregate  loans  and
  savings  account balances at the end of the year.  This deduction totaled
  approximately $1.7 million as of September 30, 1997.  If the amounts that
  qualify as deductions for federal income tax purposes are later used  for
  purposes  other  than  for  bad debt losses, including  distributions  in
  liquidation,  such distributions will be subject to federal income  taxes
  at the then current corporate income tax rate.  The approximate amount of
  the  unrecognized deferred tax liability relating to the  cumulative  bad
  debt  deduction  is  $450,000.   See Note L  for  additional  information
  regarding future percentage of earnings bad debt deductions.
  
NOTE J - REGULATORY CAPITAL

  The Savings Bank is subject to the regulatory capital requirements of the
  Federal  Deposit  Insurance Corporation (the "FDIC").   Failure  to  meet
  minimum  capital  requirements  can  initiate  certain  mandatory  -  and
  possibly  additional  discretionary -  actions  by  regulators  that,  if
  undertaken,  could  have a direct material effect on the  Savings  Bank's
  financial  statements.   Under  capital  adequacy  guidelines   and   the
  regulatory framework for prompt corrective action, the Savings Bank  must
  meet  specific capital guidelines that involve quantitative  measures  of
  the  Savings  Bank's  assets, liabilities, and certain  off-balance-sheet
  items  as calculated under regulatory accounting practices.  The  Savings
  Bank's capital amounts and classification are also subject to qualitative
  judgments by the regulators about components, risk weightings, and  other
  factors.
  
  During  the  calendar year, the Savings Bank was notified by its  primary
  regulator  that  it  was  categorized  as  "well-capitalized"  under  the
  regulatory framework for prompt corrective action.  To be categorized  as
  "well-capitalized" the Savings Bank must maintain minimum capital  ratios
  as set forth in the table that follows.
  
  The  FDIC  has adopted risk-based capital ratio guidelines to  which  the
  Savings   Bank  is  subject.   The  guidelines  establish  a   systematic
  analytical  framework  that  makes regulatory capital  requirements  more
  sensitive  to  differences in risk profiles among banking  organizations.
  Risk-based  capital  ratios  are  determined  by  allocating  assets  and
  specified   off-balance   sheet  commitments   to   four   risk-weighting
  categories,  with  higher  levels  of  capital  being  required  for  the
  categories perceived as representing  greater risk.
  
  These  guidelines  divide the capital into two  tiers.   The  first  tier
  ("Tier  1")  includes  common  equity, certain  non-cumulative  perpetual
  preferred stock (excluding auction rate issues) and minority interests in
  equity  accounts of consolidated subsidiaries, less goodwill and  certain
  other  intangible assets (except mortgage servicing rights and  purchased
  credit    card    relationships,   subject   to   certain   limitations).
  Supplementary ("Tier 2") capital includes, among other items,  cumulative
  perpetual   and   long-term  limited-life  preferred   stock,   mandatory
  convertible   securities,  certain  hybrid  capital   instruments,   term
  subordinated debt and the allowance for loan losses, subject  to  certain
  limitations,  less required deductions.  Savings banks  are  required  to
  maintain  a  total  risk-based capital (the sum of  Tier  1  and  Tier  2
  capital) ratio of 8%, of which 4% must be Tier 1 capital.  The FDIC  may,
  however,  set  higher capital requirements when particular  circumstances
  warrant.   Savings banks experiencing or anticipating significant  growth
  are  expected  to  maintain  capital ratios, including  tangible  capital
  positions, well above the minimum levels.
  
  In addition, the FDIC established guidelines prescribing a minimum Tier 1
  leverage  ratio (Tier 1 capital to adjusted total assets as specified  in
  the  guidelines).  These guidelines provide for a minimum Tier 1 leverage
  ratio  of  3%  for  savings banks that meet certain  specified  criteria,
  including  that  they  have the highest regulatory  rating  and  are  not
  experiencing or anticipating significant growth.  All other savings banks
  are required to maintain a Tier 1 leverage ratio of 3% plus an additional
  cushion of at least 100 to 200 basis points.
  
  As  of September 30, 1997, management believes that the Savings Bank  met
  all capital adequacy requirements to which it is subject.
<TABLE>
<CAPTION>
  
                                                            To be "well-
                                                         capitalized"under
                                         For capital      prompt corrective
                            Actual     adequacy purposes  action provisions
                         Amount  Ratio  Amount   Ratio    Amount      Ratio
  
                                        (Dollars in thousands)
  
  <S>                   <C>     <C>    <C>     <C>       <C>       <C>
  Total capital
    (to risk-weighted
     assets)             $8,679  25.1%  $2,762  8.0%      $3,453    10.0%
  
  Tier I Capital
    (to risk-weighed
     assets)             $8,564  24.8%  $1,381  4.0%      $2,072     6.0%
  
  Tier I Leverage        $8,564   9.3%  $3,698  4.0%      $4,622     5.0%
</TABLE>
  
 The  Savings Bank's management believes that, under the current regulatory
 capital  regulations, the Savings Bank will continue to meet  its  minimum
 capital  requirements in the foreseeable future.  However,  events  beyond
 the  control of the Savings Bank, such as increased interest  rates  or  a
 downturn  in  the  economy in the primary market  areas,  could  adversely
 affect  future  earnings  and, consequently, the ability  to  meet  future
 minimum regulatory capital requirements.
  
  
NOTE K - STOCK OPTION PLAN
  
  The  Board of Directors adopted a Stock Option Plan that provided for the
  issuance of 129,333 shares (adjusted) of authorized, but unissued  shares
  of  common stock at fair value at the date of grant.  During fiscal 1996,
  the  Corporation granted options to purchase 74,297 shares to members  of
  the Board of Directors and executive officers at an initial fair value of
  $12.25  per  share.  The number of shares granted under  option  and  the
  exercise price were adjusted to 96,879 and $9.42 per share, respectively,
  in  fiscal 1997 to give effect to the return of capital distribution.  As
  of  September  30,  1997,  none of the stock  options  granted  had  been
  exercised.
  
  The  Corporation applies Accounting Principles Board Opinion No.  25  and
  related  Interpretations  in  accounting  for  its  stock  option   plan.
  Accordingly, no compensation cost has been recognized for the plan.   Had
  compensation cost for the Corporation's stock option plan been determined
  based  on  the  fair value at the grant dates for awards under  the  plan
  consistent  with  the accounting method utilized in  SFAS  No.  123,  the
  Corporation's net earnings and earnings per share would have been reduced
  to the pro forma amounts indicated below:
<TABLE>
<CAPTION>
  
                                            1997          1996
  
  <S>                                       <C>           <C>
  Net earnings        As reported           $627          $132
  
                        Pro-forma           $627         $  34
  
  Earnings per share  As reported            $.70          $.16
  
                        Pro-forma            $.70          $.04
</TABLE>
  
  The  fair  value of each option grant is estimated on the date  of  grant
  using the modified Black-Scholes options-pricing model with the following
  weighted-average  assumptions used for grants in fiscal  1996:   dividend
  yield of 5.5%, expected volatility of 20.0%, a risk-free interest rate of
  6.5% and expected lives of ten years.
  
  A  summary of the status of the Corporation's fixed stock option plan  as
  of  September 30, 1997 and 1996, and changes during the periods ending on
  those dates is presented below:
<TABLE>
<CAPTION>
                                            1997               1996
                                               Weighted-          Weighted-
                                               average             average
                                               exercise            exercise
                                     Shares      price   Shares      price
  
  <S>                                <C>       <C>       <C>       <C>
  Outstanding at beginning of year   74,297    $12.25         0    $    0
  Adjustment for return of capital
    distribution                     22,582    $ 9.42         0    $    0
  Granted                                 0    $    0    74,297    $12.25
  Exercised                               0    $    0         0    $    0
  Forfeited                               0    $    0         0    $    0
  
  Outstanding at end of year         96,879    $ 9.42    74,297    $12.25
  
  Options exercisable at year-end    96,879    $ 9.42    74,297    $12.25
  Weighted-average fair value of
    options granted during the year              N/A               $ 1.99
  
</TABLE>
                                
  The following information applies to options outstanding at September 30,
  1997:
  
  Number outstanding                                    96,879
  Range of exercise prices                               $9.42
  Weighted-average exercise price                        $9.42
  Weighted-average remaining contractual life       8.25 years
  
  
NOTE L - LEGISLATIVE DEVELOPMENTS

  The   deposit  accounts  of  the  Savings  Bank  and  of  other   savings
  associations  are  insured by the Federal Deposit  Insurance  Corporation
  (the "FDIC") through the Savings Association Insurance Fund (the "SAIF").
  Prior  to  September 1996, the reserves of the SAIF were below the  level
  required  by  law  because a significant portion of the assessments  paid
  into  the  fund were used to pay the cost of prior thrift failures.   The
  deposit accounts of commercial banks are insured by the FDIC through  the
  Bank  Insurance  Fund  ("BIF"), except to  the  extent  such  banks  have
  acquired  SAIF deposits.  The reserves of the BIF met the level  required
  by  law in May 1995.  As a result of the respective reserve levels of the
  funds, deposit insurance assessments paid by healthy savings associations
  exceeded those paid by healthy commercial banks by approximately $.19 per
  $100  in  deposits  in 1995.  In 1996 and 1997, no BIF  assessments  were
  required for healthy commercial banks except for a $2,000 minimum fee.
  
  Legislation  was  enacted to recapitalize the SAIF that  provided  for  a
  special assessment totaling $.657 per $100 of SAIF deposits held at March
  31,  1995,  in order to increase SAIF reserves to the level  required  by
  law.   The Savings Bank held $56.0 million in deposits at March 31, 1995,
  resulting  in an assessment of approximately $368,000, or $243,000  after
  tax, which was charged to operations in fiscal 1996.
  
  Under  separate  legislation  related to the recapitalization  plan,  the
  Savings  Bank  is  required to recapture as taxable income  approximately
  $370,000  of  its  tax bad debt reserve, which represents  the  post-1987
  additions to the reserve, and will be unable to utilize the percentage of
  earnings  method  to compute its bad debt deduction in the  future.   The
  Savings  Bank  has provided deferred taxes for this amount  and  will  be
  permitted  to amortize the recapture of the bad debt reserve  in  taxable
  income over six years.
  
NOTE M - CORPORATE REORGANIZATION AND CONVERSION TO STOCK
  FORM

 On  May 17, 1993, the Savings Bank's Board of Directors adopted a plan  of
 conversion and reorganization (the "Plan") whereby the Savings Bank  would
 convert  to the stock form of ownership, followed by the issuance  of  all
 of  the  Savings Bank's outstanding common stock to a newly formed holding
 company, Harvest Home Financial Corporation (the "Corporation").
  
 On  October  7,  1994, the Savings Bank completed its  conversion  to  the
 stock  form of ownership, and issued all of the Savings Bank's outstanding
 common shares to the Corporation.
  
  In connection with the conversion, the Corporation sold 991,875 shares to
  depositors  of  the Savings Bank at a price of $10.00  per  share  which,
  after  consideration of offering expenses totaling $460,000,  and  shares
  purchased  by  employee benefit plans, resulted in net cash  proceeds  of
  $8.7 million.
  
 At  the date of the conversion, the Savings Bank established a liquidation
 account  in  an  amount  equal  to  retained  earnings  reflected  in  the
 statement   of  financial  condition  used  in  the  conversion   offering
 circular.   The liquidation account will be maintained for the benefit  of
 eligible  savings account holders who maintained deposit accounts  in  the
 Savings Bank after conversion.
 
 In  the  event  of a complete liquidation (and only in such  event),  each
 eligible  savings account holder will be entitled to receive a liquidation
 distribution  from  the  liquidation account in the  amount  of  the  then
 current  adjusted balance of deposit accounts held, before any liquidation
 distribution  may be made with respect to the common shares.   Except  for
 the  repurchase of stock and payment of dividends by the Savings Bank, the
 existence of the liquidation account will not restrict the use or  further
 application of such retained earnings.
 
 The  Savings Bank may not declare or pay a cash dividend on, or repurchase
 any  of  its  common shares if the effect thereof would cause the  Savings
 Bank's  stockholders'  equity  to  be  reduced  below  either  the  amount
 required   for   the   liquidation  account  or  the  regulatory   capital
 requirements for insured institutions.
  
  
NOTE N - CONDENSED FINANCIAL STATEMENTS OF HARVEST HOME FINANCIAL
  CORPORATION
 
 The  following condensed financial statements summarize the financial  position
 of  Harvest Home Financial Corporation as of September 30, 1997 and  1996,  and
 the  results  of  its operations and its cash flows for the three  years  ended
 September 30, 1997, 1996 and 1995.
<TABLE>
 
                  Harvest Home Financial Corporation
                   STATEMENTS OF FINANCIAL CONDITION
                             September 30,
                            (In thousands)
<CAPTION>
                                   
 ASSETS                                            1997       1996
 
 <S>                                          <C>        <C> 
 Cash and cash equivalents                    $     355  $     393
 Mortgage-backed securities designated as
   available for sale - at market                 1,020      1,238
 Loan receivable from ESOP                          378        674
 Investment in Harvest Home Savings Bank          8,585      7,543
 Prepaid expenses and other                          44        110
 
    Total assets                                $10,382   $  9,958
 
 LIABILITIES AND STOCKHOLDERS' EQUITY
 
 Other liabilities                           $       38  $     233
 
 Stockholders' equity
   Common stock and additional paid-in capital   11,099     10,367
   Retained earnings                                 61         0
   Unrealized gain (loss) on securities
     designated as available for sale,
     net of tax effects                              40        (9)
   Less treasury stock - at cost                  (856)      (633)
    Total stockholders' equity                   10,344      9,725
 
    Total liabilities and stockholders' equity  $10,382   $  9,958
</TABLE>
 
<TABLE>
 
                  Harvest Home Financial Corporation
                        STATEMENTS OF EARNINGS
                   For the year ended September 30,
                            (In thousands)
<CAPTION>
                                             1997    1996     1995
<S>                                          <C>     <C>      <C>
 Revenue
   Interest income                           $108    $274     $277
   Other income                                27      44       48
   Equity in earnings of Harvest Home
     Savings Bank                             602     156      496
    Total revenue                             737     474      821
 
 General and administrative expenses          100     354      104
 
    Earnings before income taxes (credits)    637     120      717
 
 Federal income taxes (credits)                10    (12)       77
 
    NET EARNINGS                             $627    $132     $640
</TABLE>
 
<TABLE>
               Harvest Home Financial Corporation
                    STATEMENTS OF CASH FLOWS
                    Year ended September 30,
                         (In thousands)
 
<CAPTION>
                                             1997    1996     1995
<S>                                         <C>   <C>      <C>
 Cash provided by (used in) operating
 activities:
   Net earnings for the year                 $627 $   132  $   640
   Adjustments to reconcile net earnings
   to net cash provided by (used in)
   operating activities
     Undistributed earnings of consolidated
       subsidiary                           (602)   (156)    (101)
     Increase (decrease) in cash due to
       changes in:
       Accretion of discounts on mortgage-
         backed securities                    (4)     (7)       0
       Prepaid expenses and other assets       66      67    (177)
       Amortization expense of employee
         benefit plans                        144      0        0
       Other liabilities                    (199)     126      111
    Net cash provided by operating
       activities                              32     162      473
 
 Cash flows provided by (used in)
 investing activities:
   Proceeds from repayment of loan to ESOP    296     120       0
   Proceeds from maturities of investment
     securities                                0    2,000       0
   Purchase of investment securities           0       0   (2,000)
   Purchase of mortgage-backed securities      0       0   (2,013)
   Principal repayments on mortgage-backed
     securities                               228     491      314
   Purchase of common shares of Harvest
     Home Savings Bank                         0       0   (3,883)
   Issuance of loan to ESOP                    0       0     (794)
    Net cash provided by (used in)
       investing activities                   524   2,611  (8,376)
 
 Cash flows provided by (used in)
 financing activities:
   Proceeds from issuance of common stock      0       0     9,473
   Payment of dividends on common stock     (371) (3,162)    (200)
   Purchase of treasury stock               (223)    (80)    (994)
   Proceeds from sale of treasury stock        0      486       0
    Net cash provided by (used in)
       financing activities                 (594) (2,756)    8,279
 
 Net increase (decrease) in cash and
   cash equivalents                          (38)      17      376
 
 Cash and cash equivalents at beginning
   of year                                    393     376       0
 
 Cash and cash equivalents at end of year    $355 $   393  $   376
</TABLE>
 
 
 
                                
               HARVEST HOME FINANCIAL CORPORATION
                     DIRECTORS AND OFFICERS
 
 
BOARD OF DIRECTORS                   OFFICERS

Walter A. Schuch                     John E. Rathkamp
Chairman of the Board                President, Chief Executive Officer
                                       and Secretary
John E. Rathkamp
Director                             Dennis J. Slattery
                                     Executive Vice President and Treasurer
Richard F. Hauck
Director                             Richard F. Hauck
                                     Vice President
Marvin J. Ruehlman
Director

Thomas L. Eckert
Director

Herbert E. Menkhaus
Director

George C. Eyrich
Director



























                                
                    HARVEST HOME SAVINGS BANK
                     DIRECTORS AND OFFICERS
 
 
John E. Rathkamp
Director, President, Chief Executive Officer and Secretary

Dennis J. Slattery
Executive Vice President, Treasurer

Richard F. Hauck
Director and Vice President

Walter A. Schuch
Director

Thomas L. Eckert
Director

Marvin J. Ruehlman
Director

Herbert E. Menkhaus
Director

George C. Eyrich
Director

                        BANKING LOCATIONS
                                
                           Main Office
                      3621 Harrison Avenue
                     Cincinnati, Ohio  45211

3663 Ebenezer Road                             7030 Hamilton Avenue
Cincinnati, Ohio  45248                        Cincinnati, Ohio  45231

















                                
                      STOCKHOLDER SERVICES


The  Fifth  Third  Bank serves as transfer agent and dividend  distributing
agent  for  HHFC's  shares.  Communications regarding  change  of  address,
transfer of shares, lost certificates and dividends should be sent to:
                         Dana S. Hushak
                         Vice President
                        Fifth-Third Bank
                  Trust and Investment Services
                       Fifth-Third Center
                     Cincinnati, Ohio  45263


                         ANNUAL MEETING

The  Annual  Meeting of Stockholders of Harvest Home Financial  Corporation
will  be  held on December 23, 1997, at 11:00 a.m., local time, at  Dante's
Restaurant,  Rybolt  Road  and I-74, Cincinnati,  Ohio.   Stockholders  are
cordially invited to attend.


                  ANNUAL REPORT ON FORM 10-KSB

A copy of HHFC's Annual Report on Form 10-KSB, as filed with the Securities
and Exchange Commission will be available at no charge to Stockholders upon
written request to:

               Harvest Home Financial Corporation
                 Attention:  Dennis J. Slattery
                      Executive Vice President
                      3621 Harrison Avenue
                      Cheviot, Ohio  45211