|UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549
|------------------------------------------------------------------------
|**FORM 10-K**                                                           
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|**OR**                                                                  
|[    ]                                                                  
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|----------------------------------------------------------------- | ------------------------------------
|**HEMLOCK FEDERAL FINANCIAL CORPORATION**                        
|(Exact name of small business issuer as specified in its charter)
|                                                                 
|Delaware                                                          | 36-4126192                          
|(State or other jurisdiction of incorporation
or organization)    | (I.R.S. Employer Identification No.)
|                                                                  |                                     
|5700 West 159th Street, Oak Forest , Illinois                     | 60542                               
|(Address of principal executive offices)                          | (Zip Code)                          
|                                                                 

|Issuer's telephone number, including area code: | (708) 687-9400
|----------------------------------------------- | --------------

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|                            | December 31,          
|--------------------------- | ----------------------
|                            | 2003                  
|                            | Amount                
|                            | (Dollars in Thousands)
|Real Estate Loans:          |                       
|One- to four-family(1)      | $108,091              
|Multi-family                | 18,748                
|Commercial                  | 151                   
|Total real estate
loans     | 126,990               
|                            |                       
|Consumer loans:             |                       
|Deposit account             | 103                   
|Automobile                  | 61                    
|Home equity                 | 8,945                 
|Total consumer
loans        | 9,109                 
|Total loans                 | 136,099               
|                            |                       
|Less:                       |                       
|Deferred costs              | 525                   
|Allowance for losses        | (969)                 
|Total loans receivable,
net | $135,655              

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|                            | December 31,          
|--------------------------- | ----------------------
|                            | 2003                  
|                            | Amount                
|                            | (Dollars in Thousands)
|Fixed-Rate Loans:           |                       
|Real estate:                |                       
|One- to four-family (1)     | $103,501              
|Multi-family                | 18,748                
|Commercial                  | 151                   
|Total real estate loans     | 122,400               
|Consumer                    | 9,109                 
|Total fixed-rate loans      | 131,509               
|                            |                       
|Adjustable-Rate Loans       |                       
|Real estate:                |                       
|One-to four-family          | 4,590                 
|Total adjustable rate
loans | 4,590                 
|                            |                       
|Total loans                 | 136,099               
|                            |                       
|Less:                       |                       
|Deferred fees and
discounts | 525                   
|Allowance for losses        | (969)                 
|Total loans receivable,
net | $135,655              

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|                                          | Real Estate            |                                       |          
|----------------------------------------- | ---------------------- | ------------------------------------- | ---------
|                                          | One- to four-family(2) | Multi-family andCommercial RealEstate | Consumer 
|                                          | Amount                 | WeightedAverageRate                   | Amount   
|                                          | (Dollars in Thousands)
|**Due During Year(s) Ended
December 31,** |                        |                                       |          
|2004(1)                                   | $    2,284             | 4.86%                                 | $     352
|2005 and 2006                             | 1,637                  | 6.40                                  | 688      
|2007 to 2011                              | 20,182                 | 5.86                                  | 5,829    
|2012 to 2026                              | 57,045                 | 5.61                                  | 12,030   
|2027 and following                        | 26,943                 | 6.36                                  | ---      
|Total                                     | $108,091               |                                       | $18,899  

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|                                        | Year EndedDecember 31,
|--------------------------------------- | ----------------------
|                                       
|                                        | 2003                  
|                                        | (In Thousands)        
|Originations by type:                   |                       
|Adjustable rate:                        |                       
|Real estate - one- to four-family       | 644                   
|- multi-family                          | ---                   
|Total adjustable-rate                   | 644                   
|Fixed rate:                             |                       
|Real estate - one- to four-family       | 47,463                
|- multi-family                          | 7,966                 
|Non-real estate - consumer              | 6,983                 
|Total fixed-rate                        | 62,412                
|Total loans originated                  | 63,056                
|                                        |                       
|Loans acquired                          | ---                   
|                                        |                       
|Sales:                                  |                       
|Real estate - one- to four-family       | (1,515)               
|                                        |                       
|Principal repayments                    | (73,079)              
|Total reductions                        | (74,594)              
|Increase (decrease) in other items, net | (243)                 
|Net increase (decrease)                 | $(11,781)             

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|                      | Real Estate            |                         |                    |        |          |         |       
|--------------------- | ---------------------- | ----------------------- | ------------------ | ------ | -------- | ------- | ------
|                      | One- to four-family(1) | Commercial/Multi-Family | Consumer and Other | Total 
|                      | Number                 | Amount                  | Percent            | Number | Amount   | Percent | Number
|                      | (Dollars in Thousands)
|Loans delinquent for: |                        |                         |                    |        |          |         |       
|                      |                        |                         |                    |        |          |         |       
|December 31, 2003:    |                        |                         |                    |        |          |         |       
|30-59 days            | 19                     | $1,461                  | 83.39%             | ---    | $    --- | ---%    | 11    
|60-89 days            | ---                    | ---                     | ---                | ---    | ---      | ---     | ---   
|90 days and over      | 2                      | 291                     | 16.61              | ---    | ---      | ---     | ---   
|Total                 | 21                     | $1,752                  | 100.00%            | ---    | $    --- | ---%    | 11    

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|                        | December 31,
2003
|----------------------- | -----------------
|                        | (In Thousands)   
|Special Mention         | $291             
|Substandard             | ---              
|Doubtful                | ---              
|Loss                    | ---              
|Total                   | $291             
|General loss allowance  | $969             
|Specific loss allowance | ---              
|Charge-offs             | ---              

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|                                             | December 31,          
|-------------------------------------------- | ----------------------
|                                             | 2003                  
|                                             | (Dollars in Thousands)
|Non-accruing loans:                          |                       
|One- to four-family                          | 291                   
|Multi-family                                 | ---                   
|Commercial real estate                       | ---                   
|Construction or development                  | ---                   
|Consumer                                     | ---                   
|Total                                        | 291                   
|                                             |                       
|Accruing loans delinquent more than 90
days: |                       
|One- to four-family                          | ---                   
|Multi-family                                 | ---                   
|Commercial real estate                       | ---                   
|Construction or development                  | ---                   
|Consumer                                     | ---                   
|Total                                        | ---                   
|                                             |                       
|Foreclosed assets:                           |                       
|One- to four-family                          | ---                   
|Multi-family                                 | ---                   
|Commercial real estate                       | ---                   
|Construction or development                  | ---                   
|Consumer                                     | ---                   
|Total                                        | ---                   
|                                             |                       
|Renegotiated loans                           | ---                   
|                                             |                       
|Total non-performing assets                  | $ 291                 
|                                             |                       
|Total as a percentage of total assets;       | .09%                  

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|                                                                                                             | Year Ended December 31,
|------------------------------------------------------------------------------------------------------------ | -----------------------
|                                                                                                             | 2003                   
|                                                                                                             | (Dollars in Thousands) 
|                                                                                                             |                        
|Balance at beginning of period                                                                               | $969                   
|                                                                                                             |                        
|Charge-offs:                                                                                                 |                        
|One- to four-family                                                                                          | ---                    
|Multi-family                                                                                                 | ---                    
|Commercial real estate                                                                                       | ---                    
|Consumer                                                                                                     | ---                    
|                                                                                                             | ---                    
|                                                                                                             |                        
|Recoveries:                                                                                                  |                        
|One- to four-family                                                                                          | ---                    
|Multi-family                                                                                                 | ---                    
|Commercial real estate                                                                                       | ---                    
|Consumer                                                                                                     | ---                    
|                                                                                                             | ---                    
|                                                                                                             |                        
|Net charge-offs                                                                                              | ---                    
|Additions charged to operations                                                                              | ---                    
|Balance at end of period                                                                                     | $969                   
|                                                                                                             |                        
|Ratio of net charge-offs (recoveries) during
   the period to average loans outstanding
   during the period | ---%                   
|                                                                                                             |                        
|Ratio of net charge-offs (recoveries) during 
   the period to average non-performing
assets                 | ---%                   

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|                       | December 31,              
|---------------------- | --------------------------
|                       | 2003                      
|                       | Amountof loanlossAllowance
|                       | (In Thousands)            
|One- to four-family(1) | $323                      
|                       | 107                       
|Commercial real estate | 1                         
|Consumer               | 113                       
|Unallocated            | 425                       
|Total                  | $969                      

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|                                                   | December 31,          
|-------------------------------------------------- | ----------------------
|                                                   | 2003                  
|                                                   | CarryingValue         
|                                                   | (Dollars in Thousands)
|Mortgage-backed securities   held-to- maturity:    |                       
|GNMA                                               | $16,658               
|FNMA                                               | 31,788                
|FHLMC                                              | 7,766                 
|CMOs                                               | 5,302                 
|                                                   | 61,514                
|Mortgage-backed securities   
available-for- sale: |                       
|FNMA                                               | 13,260                
|FHLMC                                              | 4,208                 
|CMOs                                               | 4,965                 
|GNMA                                               | 6,732                 
|                                                   | 29,165                
|                                                   |                       
|Total mortgage-backed
   securities                | $90,679               

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|                                         | Due in          | December 31,2003  
|---------------------------------------- | --------------- | ------------------
|                                         | 6 Monthsor Less | 6 Months to 1 Year
|                                         | (In Thousands) 
|                                         |                 |                   
|Federal Home Loan Mortgage
Corporation   | $  ---          | $  ---            
|Federal National Mortgage Association    | ---             | ---               
|Government National Mortgage
Association | 3               | ---               
|CMOs                                     | ---             | ---               
|Total                                    | $    3          | $  ---            
|                                         |                 |                   
|Weighted average yield                   | 10.00%          | ---%              

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|                            | Year EndedDecember 31,
|--------------------------- | ----------------------
|                            | 2003                  
|                            | (In Thousands)        
|Purchases:                  |                       
|Adjustable-rate             | $12,995               
|Fixed-rate                  | 39,237                
|CMOs                        | 22,188                
|Total purchases             | 74,420                
|                            |                       
|Sales:                      |                       
|Adjustable-rate             | ---                   
|Fixed-rate                  | ---                   
|CMOs                        | ---                   
|Total sales                 | ---                   
|                            |                       
|Principal repayments        | (80,057)              
|Discount/premium net
change | 545                   
|Fair value net change       | (314)                 
|Net increase (decrease)     | $ (5,406)             

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|                                      | December 31,          
|------------------------------------- | ----------------------
|                                      | 2003                  
|                                      | CarryingValue         
|                                      | (Dollars in Thousands)
|Securities held-to-maturity:          |                       
|Federal agency obligations            | $18,472               
|                                      |                       
|Securities available-for sale:        |                       
|Federal agency obligations            | ---                   
|                                      |                       
|Total securities                      | $18,472               
|                                      |                       
|Average remaining life of securities: | 7 years               
|                                      |                       
|Other earning assets:                 |                       
|Interest-earning deposits with
banks  | 9,770                 
|Other equity securities               | 18,170                
|FHLB stock                            | 10,647                
|FHLMC stock                           | 7,902                 
|FNMA stock                            | 4,696                 
|Total                                 | $51,185               

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|                           | December 31, 2003     
|-------------------------- | ----------------------
|                           | Less Than 1 Year      
|                           | Amortized Cost        
|                           | (Dollars in Thousands)
|                           |                       
|Federal agency obligations | $      ---            
|Weighted average yield     | ---%                  

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|                  | Year Ended December 31,
|----------------- | -----------------------
|                  | 2003                   
|                  | (Dollars In Thousands) 
|                  |                        
|Opening balance   | $201,725               
|Deposits          | 467,431                
|Withdrawals       | (465,407)              
|Interest credited | 2,923                  
|Ending balance    | $206,672               
|Net increase      | $    4,947             
|Percent increase  | 2.45%                  

|                                   | December 31,          
|---------------------------------- | ----------------------
|                                   | 2003                  
|                                   | Amount                
|                                   | (Dollars in Thousands)
|Transactions and Savings Deposits: |                       
|Passbook Accounts .50%             | $  80,908             
|NOW Accounts .20%                  | 31,413                
|Money Market Accounts
..75%        | 10,544                
|                                   |                       
|Total Non-Certificates             | 122,865               
|                                   |                       
|Certificates:                      |                       
|0.00 - 3.99%                       | 70,105                
|4.00 - 5.99%                       | 13,183                
|6.00 - 7.99%                       | 519                   
|                                   |                       
|Total Certificates                 | 83,807                
|                                   |                       
|Total Deposits                     | $206,672              

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|                                                | Maturity        |                 
|----------------------------------------------- | --------------- | ----------------
|                                                | 3 Monthsor Less | Over3 to 6Months
|                                                | (In Thousands) 
|                                                |                 |                 
|Certificates of deposit less
   than $100,000   | $17,210         | $14,143         
|                                                |                 |                 
|Certificates of deposit of
    $100,000 or more | 1,223           | 2,719           
|                                                |                 |                 
|Total certificates of deposit                   | $18,433         | $16,862         

|                 | Year EndedDecember 31,
|---------------- | ----------------------
|                 | 2003                  
|                 | (Dollars In Thousands)
|Maximum Balance: |                       
|FHLB Advances    | $86,807               
|Notes Payable    | $  6,500              
|                 |                       
|Average Balance: |                       
|FHLB Advances    | $81,908               
|Notes Payable    | $  6,500              

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|                                                                     | December 31,          
|-------------------------------------------------------------------- | ----------------------
|                                                                     | 2003                  
|                                                                     | (Dollars in Thousands)
|                                                                     |                       
|FHLB advances;                                                       | $79,807               
|                                                                     |                       
|Weighted average interest rate during the
   period of FHLB advances | 5.20%                 
|                                                                     |                       
|Weighted average interest rate at end of
   period of FHLB advances  | 5.10%                 

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|**Location**                                       | **Year Acquired** | **Owned orLeased** | **Net Book Value atDecember 31, 2003**
|-------------------------------------------------- | ----------------- | ------------------ | --------------------------------------
|****                                               |                   |                    | (In Thousands)                        
|*Main Office:*                                     |                   |                    |                                       
|5700 West 159th StreetOak Forest, Illinois  60452  | 1974              | Owned              | $   512                               
|*Full Service Branches:*                           |                   |                    |                                       
|8855 South Ridgeland Ave.Oak Lawn, Illinois  60453 | 1975              | Leased(1)          | 140                                   
|4636 South Damen AvenueChicago, Illinois  60609    | 1990              | Leased(2)          | 10                                    
|15730 West 127th StreetLemont, Illinois  60439     | 1998              | Owned(3)           | 2,060                                 
|234 Bolingbrook DriveBolingbrook, Illinois  60440  | 2000              | Owned(4)           | 1,528                                 
|3030 West Cermak AvenueChicago, Illinois  60623    | 2000              | Owned              | 10                                    

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|Plan Category          | Number of securities tobe issued upon exercise
of outstanding options | Weighted-average
exercise price ofoutstanding options | Number of Securitiesremaining available forfuture issuance
|---------------------- | --------------------------------------------------------------------- | ----------------------------------------------------- | ----------------------------------------------------------
|1997 Stock Option Plan | 187,466                                                               | $17.69                                                | 5,117                                                     
|2002 Stock Option Plan | 41,700                                                                | $24.60                                                | 6,867                                                     

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|Annual Report Section                                                                                               | Page inAnnual Report
|------------------------------------------------------------------------------------------------------------------- | --------------------
|Report of Independent Auditors                                                                                      | 20                  
|Consolidated Statements of Financial Condition at 
   December 31, 2003 and 2002                                    | 21                  
|Consolidated Statements of Income for the Years Ended 

   December 31, 2003, 2002 and 2001                         | 22                  
|Consolidated Statements of Changes in Stockholders' Equity

   for the Years Ended December 31, 2003, 2002 and 2001 | 23-24               
|Consolidated Statements of Cash Flows for the Years Ended

   December 31, 2003, 2002 and 2001                      | 25-26               
|Notes to Consolidated Financial Statements                                                                          | 27-51               

|**RegulationS-K ExhibitNumber** | **Document**                                                                                                                                                                                                                                | **Reference toPrior Filingor Exhibit Number
Attached Hereto**
|------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------
|                                |                                                                                                                                                                                                                                             |                                                              
|2                               | Plan of acquisition, reorganization, arrangement, liquidation or succession                                                                                                                                                                 | None                                                         
|3(i)                            | Articles of Incorporation                                                                                                                                                                                                                   | *                                                            
|3(ii)                           | Amended and Restated By-Laws                                                                                                                                                                                                                | 3.2                                                          
|4                               | Instruments defining the rights of security holders, including debentures                                                                                                                                                                   | *                                                            
|9                               | Voting Trust Agreement                                                                                                                                                                                                                      | None                                                         
|10                              | Material contracts:(i)            1997 Stock Option and Incentive Plan(ii)            1997 Recognition and Retention Plan(iii)            2002 Stock Option and Incentive Plan(iv)            Employment Agreements with Executive Officers | **

******10.110.2                                           
|11                              | Statement re: computation of per share earnings                                                                                                                                                                                             | None                                                         
|13                              | Annual Report                                                                                                                                                                                                                               | 13                                                           
|14                              | Code of Ethics                                                                                                                                                                                                                              | 14                                                           
|16                              | Letter re: change in certifying accountants                                                                                                                                                                                                 | None                                                         
|18                              | Letter re: change in accounting principles                                                                                                                                                                                                  | None                                                         
|21                              | Subsidiaries of Registrant                                                                                                                                                                                                                  | 21                                                           
|22                              | Published report regarding matters submitted to vote of security holders                                                                                                                                                                    | None                                                         
|23                              | Consent of Experts and Counsel                                                                                                                                                                                                              | 23                                                           
|24                              | Power of attorney                                                                                                                                                                                                                           | Not required                                                 
|28                              | Information from reports furnished to state insurance regulatory authorities                                                                                                                                                                | None                                                         
|31.1                            | Rule 13(a)-14(a) Certification (Chief Executive Officer)                                                                                                                                                                                    | 31.1                                                         
|31.2                            | Rule 13(a)-14(a) Certification (Chief Financial Officer)                                                                                                                                                                                    | 31.2                                                         
|32                              | Section 1350 Certification                                                                                                                                                                                                                  | 32                                                           

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|                      |  | **HEMLOCK FEDERALFINANCIAL CORPORATION**                                                                                                                       
|--------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|****                  |  |                                                                                                                                                                
|Date:   March 9, 2004 |  | By:  /s/ **Maureen G. Partynski**
      Maureen G. Partynski, Chairman of
       the Board and Chief Executive Officer
      *(Duly Authorized Representative)*

|/s/ **Michael R. Stevens**
Michael R. Stevens, President and Director
Date:   March 9, 2004                                           |  | /s/ **Kenneth J. Bazarnik**
Kenneth J. Bazarnik, Director
Date:   March 9, 2004
|------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------
|/s/ **Rosanne Belczak**
Rosanne Belczak, Vice-President/
Secretary and Director
Date:   March 9, 2004                                 |  | /s/ **Donald L. Manprisio**
Donald L. Manprisio, Director
Date:   March 9, 2004
|/s/ **Frank A. Bucz**
Frank A. Bucz, Auditor/Consultant and
Director
Date:   March 9, 2004                                            |  | /s/ **G. Gerald Schiera**
G. Gerald Schiera, Director
Date:   March 9, 2004    
|/s/ **Jean M. Thornton**
Jean M. Thornton, Chief Financial Officer*Principal Financial and Accounting**Officer*
Date:   March 9, 2004 |  |                                                                                

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|Exhibit | Document                                                              
|------- | ----------------------------------------------------------------------
|3.2     | Amended and Restated Bylaws                                           
|10.1    | Employment Agreement with Maureen G. Partynski dated September 9,
2003
|10.2    | Employment Agreement with Michael R. Stevens dated September 9, 2003  
|13      | Annual Report                                                         
|14      | Code of Ethics                                                        
|21      | Subsidiaries of Registrant                                            
|23      | Consent of Crowe, Chizek and Company LLC                              
|31.1    | Rule 13(a)-14(a) Certification (Chief Executive Officer)              
|31.2    | Rule 13(a)-14(a) Certification (Chief Financial Officer)              
|32      | Section 1350 Certification                                            

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