U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[ X ]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED SEPTEMBER 30, 1997
[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
_________ TO __________
Commission file number - 333-12501
HOME CITY FINANCIAL CORPORATION
_______________________________________________________________
(Exact name of small business issuer as specified in its charter)
OHIO 34-1839475
________________________________ _________________________________
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
63 West Main Street
Springfield, Ohio 45502
_______________________________________ ________
(Address of principal executive offices) (Zip Code)
(937) 324-5736
_________________________
(Issuer's telephone number)
N/A
___________
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X* No
___ ___
As of November 3, 1997, 904,590 shares of common stock of the Registrant were
outstanding. There were no preferred shares outstanding.
*The Registrant's Registration Statement on Form S-1 was declared effective on
November 12, 1996. Prior to December 30, 1996, the Registrant conducted no
business except the offering of its shares and preparation to acquire Home
City Federal Savings Bank of Springfield. The financial information contained
in this Form 10-QSB for periods prior to December 30, 1996 is, therefore, that
of Home City Federal Savings Bank of Springfield.
<PAGE>
<TABLE>
<CAPTION>
HOME CITY FINANCIAL CORPORATION
SPRINGFIELD, OHIO
FORM 10-QSB
INDEX
________________________________________________________________________________
Page Number
<S> <C>
PART I FINANCIAL INFORMATION
Item. 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- 3
September 30, 1997, and June 30, 1997
Condensed consolidated statements of income -- 4
Three months ended September 30, 1997 and 1996
Condensed consolidated statements of cash flows -- 5
Three months ended September 30, 1997 and 1996
Notes to condensed consolidated financial 6
statements -- September 30, 1997, and June 30, 1997
Item 2. Management's Discussion and Analysis of Financial 7
Condition and Results of Operations
PART II OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Changes in Securities and Use of Proceeds 10
Item 3. Defaults upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOME CITY FINANCIAL CORPORATION
Springfield, Ohio
CONSOLIDATED BALANCE SHEETS
________________________________________________________________________________________
<--------Dollars in thousands-------->
(Unaudited) (Unaudited)
September 30, June 30,
1997 1997
____ ____
<S> <C> <C>
Assets
Cash and cash equivalents
Cash and due from banks $ 1,013 $ 461
Interest-bearing demand deposits in other banks 564 1,397
Federal funds sold 300 200
_______ _______
Total cash and cash equivalents 1,877 2,058
Time deposits with original maturities of 90 days or more 361 361
Investment securities available-for-sale, at fair value 5,223 8,634
Mortgage-backed and related securities available-for-sale,
at fair value 712 730
Loans (net of unearned interest) 60,253 56,480
Less: Allowance for loan losses (442) (445)
_______ _______
Loans, net 59,811 56,035
Properties and equipment 499 488
Accrued interest receivable 401 407
Cash surrender value of life insurance 1,077 1,070
Other assets 149 181
_______ _______
Total assets $70,110 $69,964
_______ _______
Liabilities and Shareholders' Equity
Deposits
Demand accounts $ 1,078 $ 540
NOW accounts 800 675
Savings accounts 7,726 7,863
Time deposits, $100,000 or more 8,335 7,647
Other time deposits 33,693 33,500
_______ _______
Total deposits 51,632 50,225
Advances from Federal Home Loan Bank 4,311 5,108
Accrued interest payable 64 59
Advance payments by borrowers for taxes and insurance 50 21
Deferred income taxes Other liabilities 197 172
_______ _______
Total liabilities 56,360 55,685
_______ _______
Shareholders' Equity
Preferred shares of no par value; 1,000,000 shares
authorized; no shares issued and outstanding 0 0
Common shares of no par value; 5,000,000 shares authorized;
952,200 shares issued at September 30, 1997,
and June 30, 1997 0 0
Additional paid-in capital 9,085 9,085
Retained earnings, substantially restricted 5,867 5,696
Unrealized gain on securities available-for-sale,
net of applicable deferred income taxes 271 260
Employee Stock Ownership Plan (ESOP) (unallocated shares) (762) (762)
Less cost of common shares in treasury - 47,610 and
-0- shares at September 30, 1997, and June 30, 1997,
respectively (711) 0
_______ _______
Total shareholders' equity 13,750 14,279
_______ _______
Total liabilities and shareholders' equity $70,110 $69,964
_______ _______
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOME CITY FINANCIAL CORPORATION
Springfield, Ohio
CONSOLIDATED STATEMENTS OF INCOME
_______________________________________________________________________________________________
<----Dollars in thousands, except per share amounts---->
(Unaudited) (Unaudited)
3 Months Ended 3 Months Ended
September 30, September 30,
1997 1996
____ ____
<S> <C> <C>
Interest income
Loans $ 1,370 $ 1,103
Mortgage-backed securities 12 49
Investment securities 111 32
Federal funds sold 6 11
Time deposits 4 16
Interest-bearing demand deposits in other banks 9 8
_______ _______
Total interest income 1,512 1,219
_______ _______
Interest expense
Interest on interest-bearing checking accounts 5 2
Interest on savings deposits 46 57
Interest on certificates of deposit 654 591
Interest on advances from Federal Home Loan Bank 66 41
_______ _______
Total interest expense 771 691
_______ _______
Net interest income 741 528
Provision for loan losses 8 1
_______ _______
Net interest income after provision
for loan losses 733 527
Noninterest income
Service charges on deposit accounts 2 1
Life insurance 13 15
Loss on sale of mortgage-backed securities 0 0
Other income 3 1
_______ _______
Total noninterest income 18 17
_______ _______
Noninterest expense
Salaries and employee benefits 171 130
Supplies, telephone and postage 10 9
Occupancy and equipment 29 25
FDIC deposit insurance 8 287
Data processing 24 14
Legal, accounting and examination 53 23
Franchise taxes 43 19
Other expense 46 50
_______ _______
Total noninterest expense 384 557
_______ _______
Net income (loss) before federal income tax expense 367 (13)
Federal income tax expense 124 (3)
_______ _______
Net income (loss) $ 243 $ (10)
_______ _______
_______________________________________________________________________________________________
Per share data:
Net income per share of common stock $0.29 N/A
Weighted average shares 839,507 N/A
_______________________________________________________________________________________________
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HOME CITY FINANCIAL CORPORATION
Springfield, Ohio
CONSOLIDATED STATEMENTS OF CASH FLOWS
______________________________________________________________________________________________________
<-----Dollars in thousands----->
(Unaudited) (Unaudited)
3 Months Ended 3 Months Ended
September 30, September 30,
1997 1996
____ ____
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 243 $ (10)
Adjustments to reconcile net income to net cash
provided by operating activities:
Premium amortization, net of discount accretion 1 9
Provision for loan losses 8 1
Gain on sale of available-for-sale securities 1 0
Depreciation 11 10
Deferred income taxes 28 (48)
Life insurance income, net of expenses (7) (13)
Changes in operating assets and liabilities:
(Increase) decrease in accrued interest receivable 6 (8)
Decrease in other assets 32 3
Increase in accrued interest payable 5 4
Increase in other liabilities 25 367
_______ _______
Net cash provided by operating activities 353 315
_______ _______
Cash flows from investing activities:
Net decrease in time deposits 0 700
Principal collections on mortgage-backed securities,
available-for-sale 23 145
Proceeds from sales of available-for-sale securities 400 0
Proceeds from maturities of available-for-sale securities 3,000 0
Net increase in loans (3,784) (2,538)
Purchases of properties and equipment (22) (11)
Purchase of Federal Home Loan Bank stock (7) (7)
_______ _______
Net cash used in investing activities (390) (1,711)
_______ _______
Cash flows from financing activities:
Net increase in deposits 1,407 2,086
Net increase (decrease) in short-term FHLB advances (700) 325
Payments on long-term FHLB advances (97) (555)
Net increase in advance payments
by borrowers for taxes and insurance 29 25
Purchase of treasury shares (711) 0
Dividends paid (72) 0
_______ _______
Net cash provided by (used in) financing activities (144) 1,881
_______ _______
Net increase (decrease) in cash and cash equivalents (181) 485
Cash and cash equivalents at beginning of period 2,058 1,843
_______ _______
Cash and cash equivalents at end of period $ 1,877 $ 2,328
_______ _______
<FN>
The accompany notes are an integral part of these financial statements.
</FN>
</TABLE>
<PAGE>
HOME CITY FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1997, and June 30, 1997
________________________________________________________________________________
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
In September 1996, the Board of Directors of Home City Federal Savings Bank
of Springfield (the "Company") adopted a Plan of Conversion (the "Plan")
whereby the Company would convert to the stock form of ownership, followed by
the issuance of all the Company's outstanding stock to a newly formed holding
company, Home City Financial Corporation (the "Corporation"). Pursuant to the
Plan, the Corporation offered common shares for sale to certain depositors of
the Company and members of the community. The conversion was completed on
December 30, 1996, and resulted in the issuance of 952,200 common shares of
the Corporation which, after consideration of offering expenses totaling
approximately $447,000 and $762,000 in shares purchased by the ESOP (the
"Employee Stock Ownership Plan"), resulted in net capital proceeds of $8.3
million. Condensed financial statements of the Corporation are presented
herein. Future references are made either to the Corporation or the Company
as applicable.
The Corporation is a savings and loan holding company whose activities are
primarily limited to holding the stock of the Company. The Company conducts a
general banking business in west central Ohio which consists of attracting
deposits from the general public and applying those funds to the origination
of loans for residential, consumer and non- residential purposes. The
Company'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 interest received or paid on these
balances. The level of interest rates paid or received by the Company can be
significantly influenced by a number of environmental factors, such as
governmental monetary policy, that are outside of management control.
Earnings per common share were computed by dividing net income by the weighted
average number of shares outstanding for the three-month period ended
September 30, 1997. The weighted average number of shares outstanding for the
three-month period ended September 30, 1997, were 839,507. Unreleased ESOP
shares are not considered to be outstanding shares for the purpose of
determining the weighted-average number of shares used in the earnings per
common share calculation.
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 during the reporting
period. Actual results could differ from such estimates.
NOTE B - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with instructions to Form 10-QSB and Article
10 of Regulation S-X and Rule 310 of Regulation SB. Accordingly, they do not
include all information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included.
Operating results are not necessarily indicative of the results that may be
expected for the year ended June 30, 1998.
<PAGE>
HOME CITY FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
________________________________________________________________________________
The following focuses on the consolidated financial condition of the
Corporation at September 30, 1997, compared to June 30, 1997, and the results
of operations for the three-month period ended September 30, 1997, compared to
the same period in 1996. The purpose of this discussion is to provide a
better understanding of the consolidated financial statements and footnotes
included in the Form 10-QSB. The Corporation is not aware of any market or
institutional trend, events or uncertainties that will have or are reasonably
likely to have a material effect on liquidity, capital resources or operations
except as discussed herein. Other than as discussed herein, the Corporation
is not aware of any current recommendations by regulatory authorities which
would have such effect if implemented.
Financial Condition
Liquidity
Liquidity relates to the Company's ability to meet cash demands of its
customers and their credit needs. Liquidity is provided by the Company's
ability to readily convert assets to cash and readily marketable, short-term
assets, such as federal funds sold and deposits in other banks.
Cash and cash equivalents, time deposits with original maturities of 90
days or more, investment securities available-for-sale, and mortgage-backed
securities available-for-sale were $8.17 million at September 30, 1997, a
decrease of $3.61 million from the June 30, 1997, total. Such decrease was
attributable to the funding of additional loans and the purchase of 47,610
commonshares of the Corporation. The Company's liquidity ratio was 8.97% at
September 30, 1997, which exceeded the regulatory requirement of 5%.
Liability liquidity relates to the Company's ability to retain existing
deposits, obtain new deposits and borrow in the marketplace. Total deposits
increased $1.41 million for the three months ended September 30, 1997,
compared to June 30, 1997. During the first three months of fiscal 1998, the
decrease of $137,000 in savings accounts was offset by increases of $538,000
in non-interest-bearing demand deposit accounts, $125,000 in "NOW" accounts,
$193,000 in other time certificates of deposit and $688,000 in Jumbo or
negotiable rate certificates (i.e., time deposits of $100 thousand or
more).
Access to funds from the Federal Home Loan Bank (the "FHLB") in the form
of short- and long-term advances is a supplemental source of cash to meet
liquidity needs.
Capital Resources
Shareholders' equity totaled $13.75 million at September 30, 1997,
compared to $14.28 million at June 30, 1997. This decrease was primarily due
to the purchase of 47,610 common shares being offset by current period earnings
of $243,000 and a net increase in the unrealized holding gain on securities
available-for-sale of $11,000. As of September 30, 1997, the Corporation's
ratio of shareholders' equity to assets was 19.61%, compared to 20.41% at
June 30, 1997.
Regulatory Capital Requirements
The Company is required by applicable law and regulation to meet certain
minimum capital requirements. These requirements call for tangible capital of
1.5% of adjusted total assets, core capital (which for the Company is equal to
tangible capital) of 3% of adjusted total assets, and risk-based capital
(which for the Company consists of core capital and general valuation
allowances) equal to 8% of risk-weighted assets. Assets and certain
off-balance-sheet items are weighted at percentage levels ranging from 0% to
100% depending on their relative risk.
<PAGE>
The following table summarizes the Company's regulatory capital
requirements and actual capital at September 30, 1997:
<TABLE>
<CAPTION>
Excess of actual capital
Actual Capi Current requirements over current requirements Applicable
Amount Percent Amount Percent Amount Percent asset total
______ _______ ______ _______ ______ _______ ___________
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Tangible
Capital $10,544 15.19% $ 1,041 1.5% $ 9,503 13.69% $69,394
Core
Capital 10,544 15.19 2,082 3.0 8,462 12.19 69,394
Risk-based
Capital 10,987 26.57 3,308 8.0 7,679 18.57 41,355
</TABLE>
Changes in Financial Condition
General. The Corporation's consolidated total assets were $70.11 million
at September 30, 1997, reflecting an increase of $146,000, or 0.21%, over the
$69.96 million at June 30, 1997. This growth was primarily attributable to an
increase in loans outstanding which were funded primarily by the proceeds from
the sales and maturities of investment securities and secondarily by increases
in total deposits.
Cash and Cash Equivalents, Time Deposits, Investment Securities, and
Mortgage-backed Securities. Cash and cash equivalents, time deposits with
original maturities of 90 days or more, investment securities, and mortgage-
backed securities decreased by $3.61 million between June 30, 1997, and
September 30, 1997. The primary changes were consisted of decreases in
investment securities from $8.63 million to $5.22 million, and cash and cash
equivalents from $2.06 million to $1.88 million at June 30, 1997 and
September 30, 1997, respectively.
Loans Receivable. Net loans receivable equaled $59.81 million at
September 30, 1997, compared to $56.04 million at June 30, 1997, an increase
of 6.74%, attributable to the continued demand for mortgage loans coupled with
the growth of the consumer loan product line, which was introduced in January
of 1996. Average total loans outstanding for the three-month period ended
September 30, 1997, equaled $58.61 million, compared to $47.04 million
for the same three-month period ended September 30, 1996, which represents an
<PAGE>
increase of $11.57 million, or 24.60%. Approximately 15.63% of this increase
was experienced in the installment loan portfolio (i.e., consumer loans).
Management is continuing to emphasize single-family residential lending.
Deposits. Total deposits increased by $1.41 million, or 2.80%, during
the first three months of fiscal year 1998. Total time deposits increased by
$881,000, or 2.14%, while demand and savings deposits increased a net amount
of $526,000, or 5.79%, during the three-month period ended September 30, 1997.
Advances from the FHLB decreased $797,000, or 15.60%, during the first
quarter of fiscal year 1998. Liabilities other than deposits and advances
from the FHLB increased by $65,000. Such increase was primarily attributed
to $29,000 of additional deposits by borrowers for taxes and insurance and to
the recording of accounts payable related to operating expenses and income
taxes.
Results of Operations
General. The Corporation recorded a consolidated net income of $243,000
for the three months ended September 30, 1997, compared to a net loss of
$10,000 for the same quarter in 1996.
<PAGE>
Three Months Ended September 30, 1997, Compared to Three Months Ended
September 30, 1996
Net Interest Income. The Corporation's net interest income for the three
months ended September 30, 1997, increased by 40.34%, from $528,000 to
$741,000, compared to the same period in 1996. The net interest margin, which
consists of net interest income as a percentage of average interest-earning
assets, increased from 3.87% for the three months ended September 30, 1996, to
4.36% for the same period in 1997, primarily as a result of the growth in
earning assets. During the same period, the net interest spread, which
reflects average yield on interest-earning assets less average costs of
interest-bearing liabilities, decreased 14 basis points, to 3.27%. Average
loans outstanding increased by $11.56 million as compared to 1996, which
contributed approximately $271,000 to the net interest income, while the
change in average yield on loans outstanding from 9.38% to 9.35% decreased the
net interest income by approximately $4,000. Average investment securities
increased by $4.71 million as compared 10 1996, contributing approximately
$73,000 to net interest income, while the average yield on investments increased
from 5.41% to 6.28%, increasing net interest income by approximately $6,000.
Average deposits increased by $3.24 million as compared to 1996, which reduced
net interest income by approximately $45,000, while the average cost of deposits
increased from 5.49% to 5.57%, decreasing net interest income by approximately
$10,000.
Provision for Loan Losses. The allowance for loan losses was established
and is maintained by periodic charges to the provision for loan loss, an
operating expense, in order to provide for the risk of loss inherent in the
Company's loan portfolio. Loan losses and recoveries are charged or
credited, respectively, to the allowance for loan losses as they occur.
The allowance and provision for loan losses is determined by management
upon consideration of such factors as the size and character of the loan
portfolio, loan loss experience, problem loans and economic conditions in the
Company's market area. Management attempts to minimize the risk associated
with each loan by evaluating each loan independently based upon criteria which
include, but are not limited to, (a) the purpose of the loan, (b) the credit
history of the borrower, (c) the borrower's financial standing and trends, (d)
the market value of the collateral involved, and (e) the down payment
received. Quarterly reviews of the loan portfolio are conducted to identify
problem loans and to determine appropriate courses of action on a loan-by-loan
basis. While management believes that it uses the best information available
to determine the allowance for loan losses, unforeseen market conditions could
result in material adjustments, and net earnings could be significantly
adversely affected, if circumstances differ substantially from the assumptions
used in making the final determination. Increases in the loan portfolio,
increases in the types of loans carrying greater risk of loss, increases in
non-performing loans and changes in the local and national economy all could
cause the allowance for loan losses to be insufficient.
The Company added $8,000 to the allowance for loan losses during the
quarter ended September 30, 1997, due to the increase in loans receivable and
the increase in consumer loans, which are generally considered to have a
greater risk of loss than one- to four-family mortgage loans. The Company
recognized $11,000 in loan losses during the quarter.
Noninterest Income and Expense. Noninterest income was $18,000 for the
three months ended September 30, 1997, compared to $17,000, for the same
period in 1996. This increase was a result of the increases of $1,000 in
service charge income on deposit accounts and an increase of $2,000 in other
income, being offset by a decrease of $2,000 in life insurance income.
Noninterest expense decreased by $173,000 for the three months ended September
30, 1997, compared to the same period in 1996. The decrease was primarily
attributed to the $263,000 special assessment associated with the
recapitalization of the Savings Association Insurance Fund (the "SAIF") which
was recorded in the quarter ended September 30, 1996, offset by increased costs
of employee salaries and benefit plans, professional fees (legal and accounting)
due to the Corporation's public company reporting requirements, corporate
franchise tax and other miscellaneous operating expenses.
<PAGE>
HOME CITY FINANCIAL CORPORATION
PART II - OTHER INFORMATION
________________________________________________________________________________
ITEM 1 - LEGAL PROCEEDINGS
None
ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
Not Applicable
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On October 20, 1997, the Corporation held its annual meeting
of Shareholders.
<TABLE>
<CAPTION>
Each of the five directors nominated were elected to terms
expiring in 1998 by the following votes:
<S> <C> <C>
John D. Conroy For: 768,405 Withheld: 4,800
_______ _______
P. Clark Engelmeier For: 768,905 Withheld: 4,300
_______ _______
James Foreman For: 765,940 Withheld: 7,265
_______ _______
Terry A. Hoppes For: 768,705 Withheld: 4,500
_______ _______
Douglas L. Ulery For: 768,905 Withheld: 4,300
_______ _______
</TABLE>
Three other matters were submitted to the shareholders, for which
the following votes were cast:
<TABLE>
<CAPTION>
1. Approval of the Home City Financial Corporation 1997 Stock
Option and Incentive Plan:
<S> <C> <C> <C>
For: 563,689 Against: 36,917 Abstain: 10,316 Broker Non-votes: 162,283
_______ ______ ______ _______
<CAPTION>
2. Approval of the Home City Financial Corporation Recognition and
Retention Plan and Trust Agreement:
<S> <C> <C> <C>
For: 541,164 Against: 37,867 Abstain: 22,032 Broker Non-votes: 172,142
_______ ______ ______ _______
<CAPTION>
3. Ratification of the selection of Robb, Dixon, Francis, Davis,
Oneson & Company as the auditors of Home City Financial Corporation
for the current year:
<S> <C> <C> <C>
For: 767,900 Against: 425 Abstain: 4,880 Broker Non-votes: 0
_______ ______ ______ _______
</TABLE>
<PAGE>
ITEM 5 - OTHER INFORMATION
None
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibit 27: Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter ended
September 30, 1997.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1933, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
HOME CITY FINANCIAL CORPORATION
Date: /s/ November 13, 1997 /s/ Douglas L. Ulery
___________________________ _______________________________
Douglas L. Ulery
President
Date: /s/ November 13, 1997 /s/ Charles A. Mihal
___________________________ _______________________________
Charles A. Mihal
Treasurer and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheets as of September 30, 1997 and June 30,1997,and the
related Consolidated Income Statements for the three months ended September 30,
1997 and 1996,and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0001022103
<NAME> HOME CITY FINANCIAL CORPORATION
<MULTIPLIER> 1,000
<CURRENCY> U.S.DOLLAR
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 1,013
<INT-BEARING-DEPOSITS> 925
<FED-FUNDS-SOLD> 300
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,935
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 60,253
<ALLOWANCE> 442
<TOTAL-ASSETS> 70,110
<DEPOSITS> 51,632
<SHORT-TERM> 500
<LIABILITIES-OTHER> 417
<LONG-TERM> 3,811
0
0
<COMMON> 0
<OTHER-SE> 13,750
<TOTAL-LIABILITIES-AND-EQUITY> 70,110
<INTEREST-LOAN> 1,370
<INTEREST-INVEST> 132
<INTEREST-OTHER> 10
<INTEREST-TOTAL> 1,512
<INTEREST-DEPOSIT> 705
<INTEREST-EXPENSE> 771
<INTEREST-INCOME-NET> 741
<LOAN-LOSSES> 8
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 384
<INCOME-PRETAX> 367
<INCOME-PRE-EXTRAORDINARY> 243
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 243
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.29
<YIELD-ACTUAL> 4.36
<LOANS-NON> 572
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 417
<ALLOWANCE-OPEN> 445
<CHARGE-OFFS> 11
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 442
<ALLOWANCE-DOMESTIC> 442
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 94
</TABLE>
