diff --git a/libgfortran/io/list_read.c b/libgfortran/io/list_read.c
index 38a92e1..baf2f54 100644
--- a/libgfortran/io/list_read.c
+++ b/libgfortran/io/list_read.c
@@ -1022,7 +1022,7 @@ read_character (st_parameter_dt *dtp, int length __attribute__ ((unused)))
   for (;;)
     {
       if ((c = next_char (dtp)) == EOF)
-	goto eof;
+	goto done_eof;
       switch (c)
 	{
 	case '"':
@@ -1068,26 +1068,26 @@ read_character (st_parameter_dt *dtp, int length __attribute__ ((unused)))
      invalid.  */
  done:
   c = next_char (dtp);
- eof:
-  if (is_separator (c) || c == '!')
+ done_eof:
+  if (is_separator (c) || c == '!' || c == EOF)
     {
       unget_char (dtp, c);
       eat_separator (dtp);
       dtp->u.p.saved_type = BT_CHARACTER;
       free_line (dtp);
     }
-  else
+  else 
     {
       free_saved (dtp);
-      if (c == EOF)
-	{
-	  hit_eof (dtp);
-	  return;
-	}
       snprintf (message, MSGLEN, "Invalid string input in item %d",
 		  dtp->u.p.item_count);
       generate_error (&dtp->common, LIBERROR_READ_VALUE, message);
     }
+  return;
+
+ eof:
+  free_saved (dtp);
+  hit_eof (dtp);
 }