UNITEDTable STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended June 30, 2009 OR [ ] Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 000-51117 HOME FEDERAL BANCORP, INC. OF LOUISIANA (Exact name of registrant as specified in its charter)Contents

Federal		86-1127166
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification Number)
624 Market Street, Shreveport, Louisiana		71101
(Address of Principal Executive Offices)		(Zip Code)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Registrant's Telephone Number, including area code:	(318) 222-1145
Securities registered under Section 12(b) of the Act:	None
Securities registered under Section 12(g) of the Act:
Common Stock (par value $.01 per share)
(Title of Class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Yes [ ] No [X]
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 5(d) of the Securities and Exchange Act of 1934 during the preceding 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 [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]		Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)		Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes [ ] No [X]
As of September 25, 2009, the aggregate value of the 879,705 shares of Common Stock of the Registrant issued and outstanding on such date, which excludes an aggregate of 2.5 million shares held by all directors and executives officers of the Registrant, the Registrant's Employee Stock Ownership Plan ("ESOP"), Employees' Savings and Profit Sharing Plan ("401(k) Plan"), Recognition and Retention Plan ("RRP") Trust and 2.1 million shares held by Home Federal Mutual Holding Company of Louisiana as a group, was approximately $7.0 million. This figure is based on the closing sales price of $8.00 per share of the Registrant's Common Stock on September 25, 2009. Although directors and executive officers, the ESOP, RRP and 401(k) Plan were assumed to be "affiliates" of the Registrant for purposes of this calculation, the classification is not to be interpreted as an admission of such status.
Number of shares of Common Stock outstanding as of September 25, 2009: 3,350,166
DOCUMENTS INCORPORATED BY REFERENCE
Set forth below are the documents incorporated by reference and the Part of the Form 10-K into which the document is incorporated.
(1) Portions of the Annual Report to Shareholders are incorporated into Part II, Items 5 through 8 and Part IV, Item 15 of this Form 10-K.
(2) Portions of the Definitive Proxy Statement for the 2009 Annual Meeting of Shareholders are incorporated into Part III, Items 10 through 14.

Washington, D.C. 20549

~~Home~~FORM ~~Federal Bancorp Inc. of Louisiana~~10-K

~~Form~~(Mark ~~10-K~~One) x Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

orFor the ~~Year~~fiscal ~~Ended~~year ~~June~~ended June 30, ~~2009~~2010

PART I.
Item 1.	Business	1
Item 1A.	Risk Factors	22
Item 1B.	Unresolved Staff Comments	23
Item 2.	Properties	23
Item 3.	Legal Proceedings	23
Item 4.	Submission of Matters to a Vote of Security Holders	23
PART II.
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	Selected Financial Data	24
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 7A.	Quantitative and Qualitative Disclosure About Market Risk	24
Item 8.	Financial Statements and Supplementary Data	24
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	24
Item 9A(T).	Controls and Procedures	25
Item 9B.	Other Information	25
PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	26
Item 11.	Executive Compensation	26
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	26
Item 13.	Certain Relationships and Related Transactions and Director Independence	26
Item 14.	Principal Accountant Fees and Services	27
PART IV.
Item 15.	Exhibits and Financial Statement Schedules	27

io Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934

~~PART~~Commission IFile Number 000-51117

~~Item~~HOME 1FEDERAL BANCORP, INC. ~~Business~~ OF LOUISIANA

~~General~~(Exact name of registrant as specified in its charter)

On January 18, 2005, Home Federal Bank ("Home Federal Bank" or the "Bank"), completed its reorganization to the mutual holding company form of organization and formed Home Federal Bancorp, Inc. of Louisiana ("Home Federal Bancorp" or the "Company") to serve as the stock holding company for the Association. In connection with the reorganization, the Company sold 1,423,583 shares of its common stock in a subscription and community offering at a price of $10.00 per share. The Company also issued 60% of its then outstanding common stock in the reorganization to Home Federal Mutual Holding Company of Louisiana, or 2,135,375 shares. As of June 30, 2009, Home Federal Mutual Holding Company held 63.3% of Home Federal Bancorp's issued and outstanding common stock. The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of Thrift Supervision. Effective April 8, 2009, Home Federal Bank changed its name from Home Federal Savings and Loan Association.


Federal		86-1127166

(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)

Services are provided to Home Federal Bank's customers by three branch offices and one agency office, all of which are located in the City of Shreveport, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. Home Federal Bank has purchased packages of single family loans for its portfolio from a mortgage originator in Arkansas that are secured by properties primarily located in predominantly rural areas of Louisiana, Arkansas and Texas, however, no such purchases were made during fiscal 2009. We have received the non-objection of the Office of Thrift Supervision to offer security brokerage and advisory services through an agency office but have not commenced such activities as of June 30, 2009.


624 Market Street, Shreveport, Louisiana		71101

(Address of Principal Executive Offices)		(Zip Code)

The Company's only business activities are to hold all of the outstanding common stock of Home Federal Bank. The Company is authorized to pursue other business activities permitted by applicable laws and regulations for savings and loan holding companies, which may include the issuance of additional shares of common stock to raise capital or to support mergers or acquisitions and borrowing funds for reinvestment in Home Federal Bank.


Registrant’s Telephone Number, including area code:		(318) 222-1145


Securities registered under Section 12(b) of the Act:		None


Securities registered under Section 12(g) of the Act:

~~Home~~Common ~~Federal~~Stock ~~Bancorp~~(par ~~does~~value ~~not own or lease any property, but instead uses the premises, equipment and furniture of Home Federal Bank~~$. At01 ~~the~~per ~~present time, the Company employs only persons who are officers of Home Federal Bank to serve as officers of Home Federal Bancorp and may also use the support staff of Home Federal Bank~~share) ~~from time to time. These persons are not separately compensated by Home Federal Bancorp.~~

~~Home~~(Title ~~Federal Bank is a federally chartered savings and loan association located in Shreveport, Louisiana, which is the parish seat~~ of Caddo Parish. Home Federal Bank's business consists primarily of attracting deposits from the general public and using those funds to invest in securities and originate single-family and consumer loans. Historically, Home Federal Bank has been a traditional thrift institution with an emphasis on fixed-rate long-term single-family residential first mortgage loans. As part of implementing our business strategy, we diversified the loan products we offer and increased our efforts to originate higher yielding commercial real estate loans and lines of credit and, to a lesser extent commercial business loans, in the last half of fiscal 2009. We recently hired senior management officers with significant commercial lending experience in our market area. Commercial real estate loans and lines of credit were deemed attractive due to their generally higher yields and shorter anticipated lives compared to single-family residential mortgage loans.Class)

OnIndicate ~~December~~by ~~11,~~check ~~2007,~~mark ~~the~~if ~~Company entered into an Agreement and Plan of Merger with First Louisiana Bancshares, Inc., pursuant to which~~ the ~~Company~~registrant ~~would~~is ~~acquire~~a ~~First Louisiana Bancshares and its wholly~~well-~~owned~~known ~~subsidiary,~~seasoned ~~First Louisiana Bank (the "Merger"). Simultaneously with the adoption of the Agreement and Plan of Merger~~issuer, ~~Home~~ ~~Federal~~as ~~Mutual~~defined Holding Company adopted a Plan of Conversion and Reorganization whereby Home Federal Mutual Holding Company would convert from the mutual holding company form of organization to the fully public stock holding company form of organization and offer shares of a new holding company to its members and the general public in ~~a subscription and community offering. At the close of the offering period, the orders received were not sufficient to reach the minimum of the offering range. As~~Rule 405 ~~a result, the Company’s second-step conversion and offering terminated and, as~~ of ~~August 14, 2008,~~ the ~~Company~~Securities ~~and First Louisiana Bancshares mutually agreed to terminate the Agreement and Plan of Merger~~Act. Yes ~~Completion~~o No ~~of the merger was contingent on completion of the second-step conversion.~~x

1Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

~~Market~~Indicate ~~Area~~by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 5(d) of the Securities and Exchange Act of 1934 during the preceding 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 o

~~Our~~Indicate ~~primary~~by ~~market~~check ~~area~~mark ~~for~~whether ~~loans~~the registrant has submitted electronically and ~~deposits~~posted ison inits ~~northwest~~corporate ~~Louisiana~~Website, ~~particularly~~if ~~Caddo~~any, ~~Parish~~every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229. ~~Shreveport~~405 isof this chapter) during the ~~parish~~preceding ~~seat~~12 months (or for ~~Caddo~~such ~~Parish. Our~~shorter ~~operating~~period ~~strategy~~that isthe ~~based~~registrant onwas ~~strong~~required ~~community~~to submit ~~service~~and post such files). Yes o No o

~~Our~~Indicate ~~primary~~by ~~market~~check ~~area~~mark isif ~~suburban~~disclosure inof ~~nature,~~delinquent asfilers ~~indicated~~pursuant byto ~~the~~Item 405 ~~population density~~ of ~~Caddo~~Regulation S-K ~~and Bossier Parishes~~(§229. ~~Shreveport~~405 isof ~~the~~this ~~largest~~chapter) ~~population~~is ~~center~~not incontained ~~the~~herein, ~~regional~~and ~~market~~will ~~area~~not ~~served~~be ~~by us. Services~~contained, to ~~wholesale/retail~~the ~~trade,~~best ~~manufacturing,~~of ~~casino~~registrant’s ~~gaming~~knowledge, ~~and~~in ~~government~~definitive ~~constitute~~proxy ~~the~~or ~~basis~~information ofstatements aincorporated ~~fairly~~by ~~diversified local~~reference ~~economy. Competition~~in ~~for~~Part III ~~financial~~of ~~services~~this inForm ~~our~~10-K ~~primary~~or ~~market~~any ~~area~~amendment isto ~~intense~~this Form 10-K. x

~~Competition~~Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

WeLarge ~~face~~accelerated ~~significant~~filer ~~competition~~o ~~both~~Accelerated infiler ~~attracting~~o deposits and in making loans. Our most direct competition for deposits has come historically from commercial banks, credit unions and other savings institutions located in the primary market area, including many large financial institutions which have greater financial and marketing resources available to them. In addition, we face significant competition for investors' funds from shortNon-~~term~~accelerated ~~money~~filer ~~market~~o ~~securities,~~(Do ~~mutual funds and other corporate and government securities. We do~~ not ~~rely~~check ~~upon~~if ~~any individual group or entity for~~ a ~~material~~smaller ~~portion~~reporting ofcompany) ~~our~~Smaller ~~deposits.~~reporting ~~Our~~company ~~ability to attract and retain deposits depends on our ability to generally provide a rate of return, liquidity and risk comparable to that offered by competing investment opportunities.~~x

~~Our~~Indicate ~~competition~~by ~~for~~check ~~real~~mark ~~estate~~whether ~~loans comes principally from mortgage banking companies, commercial banks, other savings institutions and credit unions. We compete for loan originations primarily through~~ the ~~interest~~registrant ~~rates~~is ~~and~~a ~~loan~~shell ~~fees~~company we(as ~~charge,~~defined ~~and~~in ~~the~~Rule 12b-2 ~~efficiency and quality~~ of ~~services we provide borrowers. Factors which~~the ~~affect~~Exchange ~~competition include general and local economic conditions, current interest rate levels and volatility in the mortgage markets~~Act). Yes ~~Competition~~o No ~~may increase as a result of the continuing reduction of restrictions on the interstate operations of financial institutions.~~x

~~Subsidiaries~~As of September 1, 2010, the aggregate value of the 852,000 shares of Common Stock of the Registrant issued and outstanding on such date, which excludes an aggregate of 352,000 shares held by all directors and executives officers of the Registrant, the Registrant’s Employee Stock Ownership Plan (“ESOP”), and Employees’ Savings and Profit Sharing Plan (“401(k) Plan”), and 2.1 million shares held by Home Federal Mutual Holding Company of Louisiana as a group, was approximately $8.3 million. This figure is based on the closing sales price of $9.70 per share of the Registrant’s Common Stock on September1, 2010. Although directors and executive officers, the ESOP, RRP and 401(k) Plan were assumed to be “affiliates” of the Registrant for purposes of this calculation, the classification is not to be interpreted as an admission of such status.

AtNumber ~~June~~of ~~30,~~shares ~~2009,~~of ~~the~~Common ~~Company~~Stock ~~had~~outstanding ~~one~~as ~~subsidiary,~~of ~~the Bank. The Bank’s only subsidiary at such date was Metro Financial Services~~September 1, ~~Inc.,~~2010: ~~an inactive~~3, ~~wholly-owned subsidiary.~~343,601

~~Employees~~DOCUMENTS INCORPORATED BY REFERENCE

~~Home~~Set ~~Federal~~forth ~~Bank~~below ~~had~~are 22the ~~full-time~~documents ~~employees~~incorporated ~~and~~by ~~two~~reference ~~part-time~~and ~~employees~~the atPart ~~June 30, 2009. None~~ of ~~these~~the ~~employees~~Form ~~are~~10-K ~~covered~~into bywhich athe ~~collective~~document ~~bargaining~~is ~~agreement, and we believe that we enjoy good relations with our personnel~~incorporated.

Lending Activities

(1)		Portions of the Annual Report to Shareholders are incorporated into Part II, Items 5 through 8 and Part IV, Item 15 of this Form 10-K.

(2)		Portions of the Definitive Proxy Statement for the 2010 Annual Meeting of Shareholders are incorporated into Part III, Items 10 through 14.

~~General. At~~Home ~~June~~Federal ~~30,~~Bancorp ~~2009, our net loan portfolio amounted to $46~~Inc.9 ~~million, representing approximately 30.3%~~ of ~~total assets at that date. Historically, our principal lending activity has been the origination of one- to four-family residential loans. At~~Louisiana ~~June 30, 2009, one~~Form 10- to four-family residential loans amounted to $22.1 million, or 46.5% of the total loan portfolio. As part of our desire to diversify the loan portfolio, we also offer consumer loans, which includes home equity loans, second mortgage loans and lines of credit and amounted to $5.8 million, or 12.1% of the total loan portfolio at June 30, 2009. In the fourth quarter of fiscal 2009 we began offering commercial real estate loans, non-real estate secured commercial loans, andK ~~lines~~For ~~of credit which totaled $14.8 million, or 31.1% of~~ the ~~loan~~Year ~~portfolio~~Ended at June 30, ~~2009.~~2010

The types of loans that we may originate are subject to federal and state laws and regulations. Interest rates charged on loans are affected principally by the demand for such loans and the supply of money available for lending purposes and the rates offered by our competitors. These factors are, in turn, affected by general and economic conditions, the monetary policy of the federal government, including the Federal Reserve Board, legislative and tax policies, and governmental budgetary matters.


PART I.

Item 1.	Business.	1

Item 1A.	Risk Factors.	29

Item 1B.	Unresolved Staff Comments.	29

Item 2.	Properties.	29

Item 3.	Legal Proceedings.	29

Item 4.	Submission of Matters to a Vote of Security Holders.	29

PART II.

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	30

Item 6.	Selected Financial Data.	31

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	33

Item 7A.	Quantitative and Qualitative Disclosure About Market Risk.	42

Item 8.	Financial Statements and Supplementary Data.	43

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	76

Item 9A(T).	Controls and Procedures.	76

Item 9B.	Other Information.	77

PART III.

Item 10.	Directors, Executive Officers and Corporate Governance.	77

Item 11.	Executive Compensation.	78

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	78

Item 13.	Certain Relationships and Related Transactions and Director Independence	78

Item 14.	Principal Accountant Fees and Services.	78

PART IV.

Item 15.	Exhibits and Financial Statement Schedules.	79
EX-23.0
EX-31.1
EX-31.2
EX-32.0

A savings institution generally may not make loans to one borrower and related entities in an amount which exceeds 15% of its unimpaired capital and surplus, although loans in an amount equal to an additional 10% of unimpaired capital and surplus may be made to a borrower if the loans are fully secured by readily marketable securities. Ini addition, upon application the Office of Thrift Supervision permits a savings institution to lend up to an additional 15% of unimpaired capital and surplus to one borrower to develop domestic residential housing units. At June 30, 2009, our regulatory limit on loans-to-one borrower was $4.7 million and the five largest loans or groups of loans-to-one borrower, including related entities, aggregated $4.5 million, $2.8 million, $2.0 million, $2.0 million and $1.6 million. Each of our five largest loans or groups of loans was performing in accordance with its terms at June 30, 2009. For our largest loan to one borrower, during fiscal 2009 we utilized the higher limit applicable for domestic residential housing units upon approval by the Office of Thrift Supervision. The $4.5 million group of loans is to a limited partnership established by the Housing Authority of Bossier City, Louisiana. The loans are secured by a first mortgage lien on real estate and low to moderate income rental units in Bossier City, Louisiana as well as a conditional assignment of rents.

2Table of Contents

~~Loans~~PART ~~to or guaranteed by general obligations of a state or political subdivision are not subject to the foregoing lending limits.~~I

~~Loan Portfolio Composition~~Item 1. ~~The~~ ~~following table shows the composition of our loan portfolio by type of loan at the dates indicated.~~Business

	June 30,
	2009						2008
	Amount			%			Amount			%
				(Dollars in Thousands)
Real estate loans:
One- to four-family residential	$	22,106			46.50	%	$	18,736			65.48	%
Commercial-real estate secured		8,193			17.24			--			--
Other mortgage		4,884			10.27			4,945			17.28
Total real estate loans		35,183			74.01			23,681			82.76
Commercial business loans		6,590			13.86			--			--
Consumer loans
Home equity loans and second mortgage loans		4,914			10.34			3,848			13.45
Savings accounts		359			.76			573			2.00
Equity lines of credit		451			.95			461			1.61
Automobile		40			.08			51			.18
Total consumer loans		5,764			25.99			4,933			17.24
Total loans		47,537			100.00	%	28,614				100.00	%
Less:
Allowance for loan losses		(466	)					(235	)
Deferred loan fees		(123	)					(116	)
Net loans receivable(1)	$	46,948					$ 28,263

Market Area

~~_________________________~~ Home Federal Bancorp’s primary market area for loans and deposits is in northwest Louisiana, particularly Caddo Parish and neighboring communities in Bossier Parish, which are located in the Shreveport-Bossier City metropolitan statistical area.

~~(1)~~ Shreveport ~~Does~~and ~~not~~Bossier ~~include~~City ~~loans~~are ~~held~~located in northern Louisiana on Interstate 20, approximately fifteen miles from the Texas state border and 185 miles east of Dallas Texas. Our primary market area has a diversified economy with employment in services, government and wholesale/retail trade constituting the basis of the local economy, with service jobs being the largest component. The majority of the services are health care related as Shreveport has become a regional hub for ~~sale~~health ~~amounting~~care. The casino gaming industry also supports a significant number of the service jobs. The energy sector has a prominent role in the regional economy, resulting from oil and gas exploration and drilling. According to $1the U.3S. Census ~~million~~Bureau, Caddo Parish and ~~$852~~Bossier Parish had estimated populations of approximately 254,000 atand ~~June~~111,000 people, 30respectively, in 2009. Between 2000 and ~~June 30~~2009, ~~2008~~the population of Caddo Parish grew 0.6% and Bossier Parish grew 13.4%, ~~respectively~~compared to an increase in the overall population of Louisiana of 6.5% for the same period.

~~Origination~~ In of2008, ~~Loans. Our lending activities are subject to~~ the ~~written~~median ~~underwriting~~household ~~standards~~income ~~and~~in ~~loan~~Caddo ~~origination~~Parish ~~procedures established by the board of directors~~ and ~~management.~~Bossier Parish ~~Loan~~was ~~originations are obtained through a variety of sources~~$37,000 ~~primarily consisting of referrals from real estate brokers~~ and ~~existing~~$49,000, ~~customers~~respectively. ~~Written~~According ~~loan~~to ~~applications are taken by one of our loan officers. The loan officer also supervises~~ the ~~procurement of credit reports, appraisals and other documentation involved with a loan~~ U. AsS. Department ~~a matter~~ of ~~practice~~Labor, wethe ~~obtain~~unemployment ~~independent~~rate ~~outside~~as ~~appraisals on substantially all~~ of ~~our~~June 2010 ~~loans. Under~~was ~~our lending policy, a title opinion must be obtained for each real estate loan~~8. We4% ~~also~~in ~~require~~Caddo ~~fire~~Parish and ~~extended~~6.3% ~~coverage casualty insurance~~ in ~~order~~Bossier Parish, compared to ~~protect the properties securing the real estate loans~~7. ~~Borrowers~~0% ~~must~~for ~~also obtain flood insurance policies when~~ the ~~property~~entire isstate inof aLouisiana ~~flood~~and ~~hazard area~~9.5% nationwide.

~~Our~~ The ~~loan~~Shreveport-Bossier ~~approval~~City ~~process~~metropolitan isstatistical ~~intended~~area tois considered ~~assess~~ the ~~borrower's~~economic ~~ability to repay the loan, the viability of the loan~~ and ~~the~~healthcare ~~value~~center ~~of the property that will secure the loan. Residential loans up to $417,000, the Fannie Mae conforming loan limit~~ for ~~single-family mortgage loans for 2009, must be approved by our loan committee~~northwest ~~which currently consists of the Chief Executive Officer~~ Louisiana, ~~the~~east ~~principal~~Texas ~~financial officer~~ and ~~the~~southwest ~~Vice President of Lending~~Arkansas. ~~Residential~~ ~~loans~~The primary employers in ~~excess~~our ofmarket ~~$417,000~~area ~~must~~are ~~be approved by~~ the ~~board~~Louisiana ofDepartment ~~directors. Commercial real estate secured loans and lines~~ of Civil ~~credit~~Service, ~~and~~Barksdale ~~commercial~~Air ~~business~~Force ~~loans up to $1.0 million must be approved by the President or the Chief Executive Officer~~Base, upLouisiana toState University ~~$2.0~~Medical ~~million~~Center ~~by both the President~~ and the ~~Chief~~Willis-Knighton ~~Executive~~Health ~~Officer, up to $3~~System.~~0 million by the loan committee~~ ~~and~~ The ingaming ~~excess~~industry ofalso ~~$3.0~~supports ~~million~~service bysector ~~the Executive Committee~~employment. ~~In accordance with past practice, all loans are ratified by our board of directors.~~

3 General. On January 18, 2005, Home Federal Bank, completed its reorganization to the mutual holding company form of organization and formed Home Federal Bancorp, Inc. of Louisiana to serve as the stock holding company for Home Federal Bank. In connection with the reorganization, Home Federal Bancorp sold 1,423,583 shares of its common stock in a subscription and community offering at a price of $10.00 per share. Home Federal Bank also issued 60% of its then outstanding common stock in the reorganization to Home Federal Mutual Holding Company of Louisiana, or 2,135,375 shares. As of June 30, 2010, Home Federal Mutual Holding Company held 63.8% of Home Federal Bancorp’s issued and outstanding common stock. Home Federal Bank is a federally chartered, stock savings bank and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of Thrift Supervision. Effective April 8, 2009, Home Federal Savings and Loan Association changed its name to Home Federal Bank.

~~During~~ Services ~~fiscal~~are ~~2008,~~provided weto ~~purchased~~Home ~~loans~~Federal ~~from~~Bank’s acustomers ~~mortgage~~by three ~~originator~~branch ~~secured~~offices byand ~~single-family~~one ~~housing~~agency ~~primarily~~office, all of which are located in ~~predominantly~~the ~~rural~~City ~~areas~~ of ~~Louisiana~~Shreveport, ~~Arkansas and Texas~~Louisiana. No ~~such~~The ~~mortgage~~area ~~loans~~served ~~were~~by Home ~~purchased~~Federal ~~during~~Bank ~~fiscal~~is ~~2009. The~~primarily ~~loans~~the ~~were~~Shreveport-Bossier ~~generally secured~~City by metropolitan ~~rural~~area; ~~properties~~however, loan and ~~the~~deposit ~~seller~~customers ~~retained~~are ~~servicing~~found dispersed ~~rights. Although~~in ~~the~~a ~~loans~~wider ~~were~~geographical ~~originated~~area ~~with~~covering ~~fixed-rates,~~much of northwest Louisiana. Home Federal Bank ~~receives~~has anpurchased ~~adjustable-rate~~packages of single ~~interest~~family ~~equal~~loans tofor ~~the~~its ~~Federal~~portfolio ~~Housing~~from ~~Finance~~a ~~Board~~mortgage ~~rate,~~originator in ~~with~~Arkansas ~~rate~~that ~~floors~~are ~~and~~secured ~~ceilings~~by properties primarily located in predominantly rural areas of ~~approximately~~Texas ~~5.0%~~and to a lesser extent, Tennessee, Arkansas, Alabama, Louisiana and ~~8.0%~~Mississippi, however, ~~respectively~~no such purchases were made during fiscal 2009 or 2010. Under the terms of the loan agreements, the seller must repurchase any loan that becomes more than 90 days delinquent. ~~At June 30, 2009, we had approximately $9.3 million of such loans~~ ~~in our portfolio with an average age of approximately six years.~~

~~The following table shows total loans originated, sold and repaid during the periods indicated.~~1

	Year Ended June 30,
	2009			2008
	(In Thousands)
Loan originations:
One- to four-family residential	$	32,160		$	14,171
Commercial – real estate secured		8,217			--
Other mortgage		--			1,455
Commercial business		6,611			--
Consumer		3,702			2,860
Total loan originations		50,690			18,486
Loans purchased		--			3,455
Total loan originations and loans purchased		50,690			21,941
Loans sold		(16,157	)		(13,611	)
Loan principal repayments		(15,609	)		(5,882	)
Total loans sold and principal repayments		(31,766	)		(19,493	)
Increase (decrease) due to other items, net (1)		(239	)		604
Net increase in loan portfolio	$	18,685		$	3,052

~~_________________________~~ Home Federal Bancorp’s only business activities are to hold all of the outstanding common stock of Home Federal Bank. Home Federal Bancorp is authorized to pursue other business activities permitted by applicable laws and regulations for savings and loan holding companies, which may include the issuance of additional shares of common stock to raise capital or to support mergers or acquisitions and borrowing funds for reinvestment in Home Federal Bank.

~~(1) Other~~ Home ~~items~~Federal ~~consist~~Bancorp ofdoes ~~deferred~~not ~~loan~~own ~~fees~~or lease any property, but instead uses the ~~allowance~~premises, ~~for~~equipment ~~loan~~and ~~losses~~furniture of Home Federal Bank. At the present time, Home Federal Bancorp employs only persons who are officers of Home Federal Bank to serve as officers of Home Federal Bancorp and ~~loans~~may ~~held~~also ~~for~~use ~~sale~~the atsupport staff ~~year~~of ~~end~~Home Federal Bank from time to time. These persons are not separately compensated by Home Federal Bancorp.

~~Although~~ Pursuant ~~federal~~to ~~laws~~the ~~and~~ regulations ~~permit~~under ~~savings~~Sections 23A ~~institutions to originate~~ and ~~purchase~~23B ~~loans~~of the ~~secured~~Federal byReserve ~~real~~Act, ~~estate~~Home ~~located~~Federal ~~throughout~~Bank ~~the~~and ~~United~~Home ~~States,~~Federal Bancorp wehave ~~concentrate~~entered ~~our~~into ~~lending~~an ~~activity~~expense insharing ~~our~~agreement. ~~primary~~Under this ~~market area in Caddo Parish~~agreement, ~~Louisiana~~Home ~~and~~Federal ~~the~~Bancorp ~~surrounding~~will ~~area. Subject~~reimburse toHome ~~our loans-to-one borrower limitation, we~~Federal ~~are~~ Bank ~~permitted~~for tothe ~~invest~~time ~~without~~that ~~limitation~~employees inof ~~residential~~Home ~~mortgage~~Federal ~~loans~~Bank ~~and~~devote up to activities ~~400%~~ of ~~our~~Home ~~capital~~Federal inBancorp, ~~loans~~the ~~secured~~portion byof ~~non-residential~~the orexpense of ~~commercial~~the ~~real~~annual ~~estate. We~~independent ~~also~~audit ~~may~~attributable ~~invest~~to inHome ~~secured~~Federal Bancorp and ~~unsecured~~all ~~consumer~~expenses ~~loans~~attributable into anHome ~~amount~~Federal Bancorp’s ~~not~~public ~~exceeding~~filing ~~35%~~obligations ofunder ~~total~~the ~~assets. This~~Securities Exchange ~~35%~~Act ~~limitation~~of ~~may~~1934. beIf ~~exceeded~~Home ~~for~~Federal ~~certain~~Bancorp ~~types~~commences ofany significant ~~consumer~~activities ~~loans,~~other ~~such~~than asholding ~~home~~all ~~equity~~of ~~and~~the ~~property~~outstanding common ~~improvement~~stock ~~loans~~of ~~secured~~Home byFederal ~~residential real property. In addition~~Bank, weHome ~~may~~Federal ~~invest~~Bancorp upand toHome Federal ~~10%~~Bank ofwill ~~our~~amend ~~total assets~~the inexpense ~~secured~~sharing ~~and~~agreement ~~unsecured~~to ~~loans~~ provide for ~~commercial,~~the ~~corporate,~~equitable ~~business~~sharing orof ~~agricultural~~all ~~purposes. At~~expenses ~~June~~of ~~30,~~such ~~2009,~~other activities wethat ~~were~~may ~~within~~be ~~each~~attributable ofto ~~the~~Home ~~above~~Federal ~~lending limits~~Bancorp.

~~During~~ Home ~~fiscal~~Federal ~~2009~~Bank is a federally chartered savings and ~~2008,~~loan association welocated ~~sold~~in ~~$16.2~~Shreveport, ~~million~~Louisiana, ~~and~~which ~~$13.6~~is ~~million~~the parish seat of ~~loans,~~Caddo ~~respectively~~Parish. We ~~recognized~~Home ~~gain~~Federal onBank’s ~~sale~~business consists primarily of ~~loans~~attracting ofdeposits ~~$1,567~~from ~~during~~the ~~fiscal~~general public ~~2009~~and using those funds to invest in securities and originate ~~$5,639~~single-family ~~during~~and ~~fiscal~~consumer ~~2008~~loans. ~~Loans~~ ~~were~~Historically, ~~sold~~Home Federal ~~during~~Bank ~~these~~has ~~periods~~been ~~primarily~~a totraditional ~~another~~thrift ~~financial~~ institution. ~~Such~~with an emphasis on fixed-rate long-term single-family residential first mortgage loans. ~~were~~As ~~sold~~part ~~against~~of ~~forward~~implementing ~~sales~~our ~~commitments~~business strategy, ~~with~~ we ~~servicing~~diversified ~~released~~the loan products we offer and ~~without~~increased ~~recourse~~our efforts ~~after~~to aoriginate ~~certain~~higher ~~amount~~yielding commercial real estate loans and lines of ~~time~~credit and, ~~typically~~to 90a ~~days. The~~lesser extent commercial business loans, ~~sold~~in ~~primarily~~the ~~consisted~~last half of ~~long-term,~~fiscal ~~fixed~~2009. ~~rate~~We ~~residential~~recently hired ~~real~~senior ~~estate~~management ~~loans. These~~officers ~~loans~~with ~~were~~significant ~~originated~~commercial lending ~~during~~experience ain ~~period~~our ofmarket ~~historically~~area. ~~low~~Commercial ~~interest~~real ~~rates~~estate loans and lines of credit were ~~sold~~deemed attractive due to ~~reduce~~their generally ~~our~~higher ~~interest~~yields ~~rate~~and ~~risk. We~~shorter ~~will~~anticipated ~~continue~~lives compared to ~~sell~~single-family ~~loans~~residential inmortgage ~~the~~loans. ~~future~~In toJuly ~~the~~2009, ~~extent~~Home Federal weBank ~~believe~~began ~~the~~offering ~~interest~~security ~~rate~~brokerage ~~environment~~and isadvisory services ~~unfavorable~~through ~~and~~its ~~interest~~agency ~~rate~~office ~~risk~~located isin ~~unacceptable~~Shreveport, Louisiana.

4 Competition. We face significant competition both in attracting deposits and in making loans. Our most direct competition for deposits has come historically from commercial banks, credit unions and other savings institutions located in the primary market area, including many large financial institutions which have greater financial and marketing resources available to them. In addition, we face significant competition for investors’ funds from short-term money market securities, mutual funds and other corporate and government securities. We do not rely upon any individual group or entity for a material portion of our deposits. Our ability to attract and retain deposits depends on our ability to generally provide a rate of return, liquidity and risk comparable to that offered by competing investment opportunities.

~~Contractual~~ Our ~~Terms~~competition tofor ~~Final~~real ~~Maturities~~estate loans comes principally from mortgage banking companies, commercial banks, other savings institutions and credit unions. ~~The~~ ~~following~~We ~~table~~compete ~~shows~~for ~~the~~loan ~~scheduled~~originations primarily ~~contractual~~through ~~maturities~~the ofinterest ~~our~~rates ~~loans~~and asloan offees ~~June~~we 30charge, and ~~2009,~~the ~~before~~efficiency ~~giving~~and ~~effect~~quality toof ~~net~~services ~~items~~we provide borrowers. ~~Demand~~ Factors ~~loans,~~which ~~loans~~affect ~~having~~competition noinclude ~~stated~~general ~~schedule~~and oflocal economic ~~repayments~~conditions, ~~and~~current nointerest ~~stated~~rate ~~maturity,~~levels and volatility ~~overdrafts~~ in ~~are~~the ~~reported~~mortgage asmarkets. ~~due~~Competition inmay ~~one~~increase ~~year~~as ora ~~less. The~~result ~~amounts~~of the ~~shown~~continuing ~~below~~reduction doof ~~not~~restrictions ~~take~~on ~~into~~the ~~account~~interstate operations ~~loan~~of ~~prepayments~~financial institutions.

	One- to Four- Family Residential		Commercial - Real Estate Secured		Other Mortgage		Commercial Business		Consumer		Total
	(In Thousands)
Amounts due after June 30, 2009 in:
One year or less	$	234	$	--	$	--		2,552	$	1,991	$	4,777
After one year through two years		47		--		--		1,390		180		1,617
After two years through three years		1,371		242		--		214		145		1,972
After three years through five years		4,633		7,300		--		1,863		678		14,474
After five years through ten years		904		651		--		571		956		3,082
After ten years through fifteen years		787		--		799		--		722		2,308
After fifteen years		14,130		--		4,085		--		1,092		19,307
Total	$	22,106	$	8,193	$	4,884	$	6,590	$	5,764	$	47,537

TheTable following table sets forth the dollar amount of all loans, before net items, due after June 30, 2009 which have fixed interest rates or which have floating or adjustable interest rates.Contents

	Fixed-Rate		Floating or Adjustable-Rate		Total
	(In Thousands)
One- to four-family residential	$	12,698	$	9,408	$	22,106
Commercial – Real Estate Secured		8,193		--		8,193
Other mortgage		4,884		--		4,884
Commercial business		6,590		--		6,590
Consumer		5,764		--		12,354
Total	$	38,129	$	9,408	$	47,537

Lending Activities

~~Scheduled~~ General. At ~~contractual~~June 30, ~~maturities~~2010, ofour ~~loans~~net doloan portfolio ~~not~~amounted ~~necessarily~~to ~~reflect~~$93.1 million, ~~the~~representing approximately ~~actual expected term of the loan portfolio~~50.3% ~~The average life~~ of ~~mortgage~~total ~~loans~~assets isat ~~substantially~~that ~~less~~date. ~~than~~Historically, our ~~their~~principal ~~average~~lending ~~contractual~~activity ~~terms~~was ~~because~~the oforigination ~~prepayments. The average life~~ of ~~mortgage~~one- ~~loans tends~~ to ~~increase when current mortgage loan rates are higher than~~ ~~rates~~ four-family onresidential ~~existing mortgage~~ loans. ~~and~~At June 30, ~~conversely~~2010, ~~decrease~~one- ~~when~~to four-family ~~rates~~residential onloans ~~current~~amounted ~~mortgage~~to ~~loans~~$36.3 million, ~~are~~or 38.7% ~~lower~~of ~~than~~the ~~existing~~total ~~mortgage~~ loan ~~rates~~portfolio. ~~(due~~As topart ~~refinancing~~ of ~~adjustable-rate~~our ~~and~~desire ~~fixed-rate~~to diversify ~~loans~~the atloan ~~lower~~portfolio, ~~rates).~~we ~~Under~~began ~~the~~to ~~latter~~offer ~~circumstance,~~commercial ~~the~~real estate ~~weighted~~loans ~~average~~and ~~yield~~commercial onbusiness loans ~~decreases~~in asfiscal ~~higher~~2009, ~~yielding~~which amounted ~~loans~~to ~~are~~$15.4 million ~~repaid~~and or$9.5 million, respectively, ~~refinanced~~ at ~~lower~~June 30, ~~rates~~2010.

~~One-~~ The types of loans that we may originate are subject to ~~Four-Family~~federal and ~~Residential~~state ~~Real~~laws ~~Estate~~and ~~Loans~~regulations. At ~~June~~Interest ~~30,~~rates ~~2009,~~charged ~~$22~~on loans are affected principally by the demand for such loans and the supply of money available for lending purposes and the rates offered by our competitors.1 ~~million~~These factors are, orin ~~46.5%~~turn, ofaffected by general and economic conditions, the ~~total~~monetary ~~loan~~policy ~~portfolio~~of the federal government, ~~before~~including ~~net~~the ~~items~~Federal Reserve Board, legislative ~~consisted~~and oftax ~~one-~~policies, toand ~~four-family~~governmental ~~residential~~budgetary ~~loans~~matters.

~~The~~ A ~~loan-to-value~~savings ~~ratio,~~institution ~~maturity~~generally may not make loans to one borrower and ~~other~~related ~~provisions~~entities in an amount which exceeds 15% of its ~~the~~unimpaired ~~loans~~capital ~~made~~and bysurplus, usalthough ~~generally~~loans ~~have~~in ~~reflected~~an ~~the~~amount equal ~~policy~~to an additional 10% of ~~making~~unimpaired ~~less~~capital ~~than~~and ~~the~~surplus ~~maximum~~may be ~~loan~~made ~~permissible~~to ~~under~~a ~~applicable~~borrower ~~regulations,~~if inthe ~~accordance~~loans ~~with~~are ~~sound~~fully ~~lending~~secured ~~practices~~by readily marketable securities. In addition, ~~market~~upon ~~conditions~~application ~~and~~the ~~underwriting~~Office of ~~standards~~Thrift ~~established~~Supervision bypermits ~~us. Our~~a ~~current~~savings ~~lending~~institution ~~policy~~to lend up on to an additional 15% of unimpaired capital and surplus to one- borrower to ~~four-family~~develop domestic residential housing units. At June 30, 2010, our regulatory limit on loans-to-one borrower ~~generally~~was ~~limits~~$4.6 million and the ~~maximum~~five ~~loan~~largest loans or groups of loans-to-~~value~~one borrower, ~~ratio~~including torelated ~~90%~~entities, aggregated $4.4 million, $4.2 million, $3.9 million, $3.8 million and $2.9 million. Each of our five largest loans or ~~less~~groups of loans was originated with strong guarantor support to known borrowers in our market area and performing in accordance with its terms at June 30, 2010. For our largest loan to one borrower, during fiscal 2010 we utilized the ~~appraised~~higher ~~value~~limit ofapplicable for domestic residential housing units upon approval by the ~~property~~Office ~~although~~of weThrift ~~will~~Supervision. The ~~lend~~$4.4 million upgroup of loans is to a ~~100%~~limited ~~loan-to-value~~partnership established ~~ratio~~by ~~with~~the ~~private~~Housing ~~mortgage~~Authority ~~insurance~~of Bossier City, Louisiana. ~~These~~ The loans are ~~amortized~~secured onby a ~~monthly~~first ~~basis~~mortgage ~~with~~lien ~~principal~~on real estate and ~~interest~~low ~~due~~to ~~each~~moderate ~~month,~~income ~~with~~rental ~~terms~~units ~~not~~ in ~~excess~~Bossier ofCity, Louisiana 30as ~~years~~well ~~and~~as ~~generally~~a ~~include~~conditional ~~"due-on-sale"~~assignment ~~clauses~~of rents.

At Loans ~~June~~to ~~30, 2009, $12.7 million,~~ or ~~57.4%,~~guaranteed of our one- to four-family residential mortgage loans were fixed-rate loans. Fixed-rate loans generally have maturities ranging from 15 to 30 years and are fully amortizing with monthly loan payments sufficient to repay the total amount of the loan with interest by ~~the~~general ~~end~~obligations of ~~the~~a ~~loan~~state or ~~term. Our~~ political ~~fixed-rate~~subdivision ~~loans generally~~ are ~~originated~~not ~~under~~subject ~~terms, conditions and documentation which permit them~~ to ~~be sold to U.S. Government-sponsored agencies, such as~~ the ~~Federal~~foregoing ~~Home Loan Mortgage Corporation, and other investors in the secondary mortgage market~~lending limits. ~~Consistent with our asset/liability management, we have sold a significant portion of our long-term, fixed rate loans over the past two years.~~

AlthoughTable we offer adjustable rate loans, substantially all of the single-family loan originations over the last few years have consisted of fixed-rate loans due to the low interest rate environment. The adjustable-rate loans held in portfolio typically have interest rates which adjust on an annual basis. These loans generally have an annual cap of 2% on any increase or decrease and a cap of 6% above or below the initial rate over the life of the loan. Such loans are underwritten based on the initial rate plus 2%.Contents

~~Commercial~~ Loan ~~Loans~~Portfolio ~~– General~~Composition. InThe ~~February 2009, we hired three commercial loan officers, including our President, Mr. Barlow, with over 12 years of commercial banking experience, particularly in the local Shreveport market. In~~following ~~addition,~~ table weshows ~~have engaged a third party to review loans, policies, and procedures as related to~~ the ~~introduction~~composition of ~~the commercial lending activity. The scope of the services to be provided includes credit underwriting, adherence to~~ our loan ~~policies~~portfolio asby ~~well~~type ~~as regulatory policies, and recommendations regarding reserve allocations. Although commercial loans are generally considered to have greater credit risk than other certain types~~ of ~~loans, management expects to mitigate such risk by~~ ~~originating~~ loan ~~such~~at ~~loans~~the indates ~~its market area to known borrowers~~indicated.

Commercial Real Estate Loans. As of June 30, 2009, Home Federal Bank had originated $8.2 million of loans secured by commercial real estate. It is the current policy of Home Federal Bank to lend in a first lien position on real property occupied as a commercial business property. Home Federal Bank offers fixed and variable rate mortgage loans. Home Federal Bank's commercial real estate loans are limited to a maximum of 85% of the appraised value and have terms up to 15 years, however, it is our preference to have terms of no more than 10 years. It is our policy that commercial real estate secured lines of credit are limited to a maximum of 85% of the appraised value of the property and shall not exceed 3 to 5 year amortizations.


	June 30,
	2010						2009
				Percent of						Percent of
	Amount			Total Loans			Amount			Total Loans
	(Dollars in thousands)

Real estate loans:
One- to four-family residential(1)	$	36,257			38.65	%	$	22,106			46.50	%
Commercial-real estate secured:
Owner occupied		14,550			15.51			8,193			17.24
Non-owner occupied		872			0.93			—			—

Total commercial-real estate secured		15,422			16.44			8,193			17.24

Multi-family residential		9,079			9.68			4,884			10.27
Commercial business		9,454			10.08			3,904			8.21
Land		8,442			9.00			2,348			4.94
Construction		7,793			8.31			338			0.71
Home equity loans and second mortgage loans		2,963			3.16			4,914			10.34
Equity lines of credit		4,069			4.33			451			0.95

Total real estate loans		93,479			99.65			47,138			99.16

Non-real estate loans:
Savings accounts		285			0.30			359			0.76
Automobile		48			0.05			40			0.08

Total non-real estate loans		333			0.35			399			0.84

Total loans		93,812			100.00	%		47,537			100.00	%

Less:
Allowance for loan losses		(489	)					(466	)
Deferred loan fees		(267	)					(123	)

Net loans receivable(1)	$	93,056					$	46,948

~~Commercial~~(1) ~~Business~~Does ~~Loans. In~~not ~~conjunction~~include ~~with our introduction of~~ loans ~~and~~held ~~lines~~for ofsale ~~credit~~amounting ~~secured~~to ~~by commercial real estate, we initiated non-real estate secured commercial lending~~$13. At4 ~~June~~million ~~30,~~and ~~2009, we had outstanding approximately~~ $61.63 million ofat ~~non-real~~June ~~estate secured commercial loans. The business lending products we offer include lines of credit~~30, ~~inventory~~2010 ~~financing~~ and ~~equipment~~June loans. Commercial business loans and lines of credit carry more credit risk than other types of commercial loans. We attempt to limit such risk by making loans predominantly to small- and mid-sized businesses located within our market area and having the loans personally guaranteed by the principals involved. We have established underwriting standards in regard to business loans which set forth the criteria for sources of repayment30, ~~borrower's capacity to repay~~2009, ~~specific financial and collateral margins and financial enhancements such as guarantees~~respectively. ~~Generally, the primary source of repayment is cash flow from the business and the financial strength of the borrower.~~

~~Consumer~~ Origination ~~Loans~~of ~~- General~~Loans. WeOur lending activities are ~~authorized~~subject to ~~make~~the ~~loans~~written ~~for~~underwriting astandards ~~wide~~and loan origination procedures established by the board of directors and management. Loan originations are obtained through a variety of sources, ~~personal~~primarily orfrom ~~consumer~~existing ~~purposes~~customers and referrals from existing customers. We ~~originate~~Written ~~consumer~~loan ~~loans~~applications inare ~~order~~taken toby ~~accommodate~~one of our ~~customers~~loan ~~and~~officers. ~~because~~The ~~such~~loan ~~loans~~officer ~~generally~~also ~~have~~supervises ~~shorter~~the procurement ~~terms~~of ~~and~~credit ~~higher~~reports, ~~interest~~appraisals ~~rates~~and ~~than~~other ~~residential~~ documentation ~~mortgage~~involved ~~loans~~with a loan. ~~The~~ ~~consumer~~As a matter of practice, we obtain independent outside appraisals on substantially all of our loans although we ~~offer~~may ~~consist~~prepare an in-house valuation depending on the characteristics of ~~home~~the ~~equity~~loan and ~~second~~the ~~mortgage~~profile ~~loans~~of the borrower. Under our lending policy, ~~loans~~a ~~secured~~title byopinion ~~deposit~~must ~~accounts~~be obtained ~~with~~for ~~us,~~each ~~equity~~real ~~lines~~estate ofloan. ~~credit,~~We ~~automobile~~also ~~loans~~require fire and extended coverage casualty insurance in order to protect the properties securing the real estate loans. ~~secured~~Borrowers bymust ~~readily~~also obtain ~~marketable~~flood ~~securities~~insurance policies when the property is in a flood hazard area.

~~Consumer~~ Our ~~loans~~loan ~~generally~~approval ~~have~~process ~~shorter~~is ~~terms~~intended ~~and~~to ~~higher~~assess ~~interest~~the borrower’s ~~rates~~ability ~~than~~to ~~residential~~repay ~~mortgage~~the ~~loans~~loan, ~~but~~the ~~generally~~viability ~~entail~~of ~~greater~~the loan ~~credit~~and ~~risk~~the ~~than~~value ~~residential~~of ~~mortgage~~the ~~loans,~~property ~~particularly~~that ~~those~~will ~~loans~~secure ~~secured~~the byloan. Residential ~~assets~~loans ~~that~~up ~~depreciate~~to ~~rapidly~~$417, ~~such as automobiles~~000, ~~boats~~the ~~and~~Fannie ~~recreational~~Mae ~~vehicles. In~~conforming ~~such cases, repossessed~~loan ~~collateral~~ limit for asingle-family ~~defaulted~~mortgage ~~consumer~~loans ~~loan~~for ~~may~~2010, ~~not~~must ~~provide~~be approved anby ~~adequate~~our ~~source~~Residential ofLoan ~~repayment~~Committee ~~for~~which ~~the~~currently consists ~~outstanding~~of ~~loan and~~ the ~~remaining~~Chief ~~deficiency~~Executive ~~often~~Officer, ~~does not warrant further substantial collection efforts against~~ the ~~borrower. In particular~~President, ~~amounts realizable on~~ the Chief ~~sale of repossessed automobiles may be significantly reduced based upon the condition of the automobiles and the fluctuating demand for used automobiles.~~Financial

~~Home Equity and Second Mortgage Loans. At June 30, 2009, we held $~~4~~.9 million of home equity and second mortgage loans compared to $3.8 million of home equity and second mortgage loans at June 30, 2008. These loans are secured by the underlying equity in the~~ borrower's residence. We do not require that we hold the first mortgage on the properties that secure the second mortgage loans. The amount of our second mortgage loans generally cannot exceed a loan-to-value ratio of 90% after taking into consideration the first mortgage loan. These loans are typically three-to-five year balloon loans with fixed rates and terms that will not exceed 10 years and contain an on-demand clause that allows us to call the loan in at any time.

6Table of Contents

~~Loans~~ Officer, onthe ~~Savings~~Senior ~~Accounts. We~~Vice ~~offer~~President ~~loans~~Mortgage ~~secured~~Lending byand ~~deposit~~the ~~accounts~~Vice President ~~held~~of ~~with~~Lending. ~~us,~~Residential ~~which~~ loans ~~amounted~~in toexcess of $~~358~~417,~~754,~~000 must orbe ~~0.76%~~approved ofby the ~~total~~board ~~loan~~of ~~portfolio,~~directors. atCommercial ~~June~~real estate ~~30,~~secured ~~2009. Such~~ loans ~~are~~and ~~originated~~lines ~~for~~of credit and commercial business loans up to ~~100%~~$1.0 million ofmust be approved by the ~~account~~President or ~~balance~~the Chief Executive Officer, ~~with~~up ato ~~hold~~$2.0 million ~~placed~~by onboth the ~~account~~President ~~restricting~~and the ~~withdrawal~~Chief ofExecutive ~~the~~Officer, ~~account~~up ~~balance~~to $3. ~~The~~0 million ~~interest~~by ~~rate on~~ the ~~loan~~Commercial isLoan ~~equal~~Committee toand ~~the~~in ~~interest~~excess of ~~rate~~$3.0 million ~~paid~~by on the ~~account~~Executive ~~plus~~Loan 2%Committee. ~~These~~ ~~loans~~In accordance ~~typically~~with ~~are~~past ~~payable~~practice, onall ~~demand~~loans ~~with~~are aratified ~~maturity~~by ~~date~~our board of ~~one year~~directors.

~~Equity~~ Historically, ~~Lines~~we ofpurchased ~~Credit. We~~loans ~~offer~~from ~~lines~~a ofmortgage ~~credit~~ originator secured by asingle-family ~~borrower's~~housing ~~equity~~primarily located in predominantly ~~real~~rural ~~estate~~areas ~~which~~of ~~loans~~Texas ~~amounted~~and to ~~$451~~a lesser extent,~~141~~ Tennessee, orArkansas, ~~0.95%~~Alabama, ofLouisiana ~~the~~and ~~total~~Mississippi. ~~loan~~No ~~portfolio,~~such mortgage atloans ~~June~~were ~~30,~~purchased during fiscal 2009 or fiscal 2010. The ~~rates~~loans were generally secured by rural properties and ~~terms~~the seller ofretained ~~such~~servicing ~~lines~~rights. Although the loans were originated with fixed-rates, Home Federal Bank receives an adjustable-rate of ~~credit~~interest ~~depend~~equal onto the ~~history~~Federal ~~and~~Housing ~~income~~Finance Board rate, with rate floors and ceilings of ~~the~~approximately ~~borrower~~5.0% and 8.0%, ~~purpose~~respectively. Under the terms of the loan ~~and~~agreements, the ~~collateral. Lines~~seller ofmust ~~credit~~repurchase ~~will~~any ~~not~~loan ~~exceed~~that becomes more than 90% days ofdelinquent. ~~the~~At ~~value~~June 30, 2010, we had approximately $8.8 million of ~~the~~such ~~equity~~loans in ~~the~~our ~~collateral~~portfolio with an average age of approximately seven years.

~~Loan Origination and Other Fees.~~ In ~~addition~~recent ~~to interest earned on loans~~periods, we ~~generally~~have ~~receive~~originated ~~loan~~and ~~origination~~sold ~~fees~~substantially orall of ~~"points"~~our ~~for~~fixed-rate ~~originating~~conforming ~~loans.~~mortgages ~~Loan~~to ~~points~~correspondent ~~are~~banks. For ~~a percentage of~~ the ~~principal~~year ~~amount~~ended ofJune 30, ~~the~~2010, ~~mortgage~~we ~~loan~~originated $113.8 million ~~and~~of ~~are~~one- ~~charged~~ to ~~the~~four-family ~~borrower~~residential inloans ~~connection~~and ~~with~~ sold ~~the~~$71.6 million ~~origination~~ of ~~the~~such ~~loan~~loans. In ~~accordance~~Our ~~with~~residential ~~accounting guidance,~~ loan originations ~~origination~~primarily ~~fees~~consist ~~and~~of ~~points~~rural ~~are~~development, ~~deferred~~FHA and ~~amortized into income as an adjustment of yield over the life of the loan~~VA loans.

~~Asset~~ The ~~Quality~~following table shows total loans originated, sold and repaid during the periods indicated.

General. Our collection procedures provide that when a loan is 10 days past due, personal contact efforts are attempted, either in person or by telephone. At 15 days past due, a late charge notice is sent to the borrower requesting payment. If the loan is still past due at 30 days, a formal letter is sent to the borrower stating that the loan is past due and that legal action, including foreclosure proceedings, may be necessary. If a loan becomes 60 days past due and no progress has been made in resolving the delinquency, a collection letter from legal counsel is sent and personal contact is attempted. When a loan continues in a delinquent status for 90 days or more, and a repayment schedule has not been made or kept by the borrower, generally a notice of intent to foreclose is sent to the borrower. If the delinquency is not cured, foreclosure proceedings are initiated. In most cases, deficiencies are cured promptly. While we generally prefer to work with borrowers to resolve such problems, we will institute foreclosure or other collection proceedings when necessary to minimize any potential loss.


	Year Ended June 30,
	2010			2009
	(In thousands)

Loan originations:
One- to four-family residential	$	113,753		$	32,160
Commercial — real estate secured (owner occupied and non-owner occupied)		8,645			8,217
Multi-family residential		7,780			—
Commercial business		12,877			2,770
Land		7,561			3,502
Construction		11,569			339
Home equity loans and lines of credit and other consumer		6,488			3,702

Total loan originations		168,673			50,690
Loans purchased		—			—

Total loan originations and loans purchased		168,673			50,690
Loans sold		(71,554	)		(16,157	)
Loan principal repayments		(50,844	)		(15,609	)

Total loans sold and principal repayments		(122,398	)		(31,766	)
Increase (decrease) due to other items, net(1)		(167	)		(239	)

Net increase in loan portfolio	$	46,108		$	18,685

~~Loans~~(1) ~~are~~Other ~~placed~~items onconsist ~~non-accrual status when management believes the probability~~ of ~~collection~~deferred ~~of interest is doubtful. When a~~ loan ~~is placed on non-accrual status~~fees, ~~previously accrued but unpaid interest is deducted from interest income. We generally discontinue~~ the ~~accrual~~allowance offor ~~interest income when the~~ loan ~~becomes 90~~losses ~~days past due as to principal or interest unless the credit is well secured~~ and weloans ~~believe~~held wefor ~~will~~sale ~~fully~~at ~~collect~~year end.

~~Real~~ Although ~~estate~~federal laws and ~~other~~regulations ~~assets~~permit wesavings institutions ~~acquire~~to asoriginate aand ~~result~~purchase ofloans ~~foreclosure~~secured or by ~~deed-~~real estate located throughout the United States, we concentrate our lending activity in~~-lieu~~ ofour ~~foreclosure~~primary ~~are~~market ~~classified~~area asin ~~real~~Caddo ~~estate~~Parish, Louisiana ~~owned~~and ~~until~~the ~~sold~~surrounding area. We ~~held~~Subject noto ~~real~~our loans-to-one borrower ~~estate~~limitation, ~~owned~~we atare ~~June~~permitted ~~30,~~to ~~2009~~invest ~~compared~~without limitation in residential mortgage loans and up to ~~$52,000~~400% of ~~real~~our capital ~~estate~~in ~~owned~~loans atsecured ~~June~~by ~~30,~~non-residential ~~2008~~or commercial real estate. We also may invest in secured and unsecured consumer

~~Delinquent Loans. The following table shows the delinquencies in our loan portfolio as of the dates indicated.~~5

JuneTable 30, 2009 June 30, 2008 30-89 90 or More Days 30-89 90 or More Days Days Overdue Overdue Days Overdue Overdue Number Principal Number Principal Number Principal Number Principal of Loans Balance of Loans Balance of Loans Balance of Loans Balance (Dollars in Thousands) One- to four-family Residential 1 $ 75 2 $ 349 -- $ -- -- $ -- Commercial - real estate secured -- -- -- -- -- -- -- -- Other mortgage -- -- -- -- -- -- -- -- Commercial business -- -- -- -- -- -- -- -- Consumer -- -- -- -- -- -- -- -- Total delinquent loans 1 $ 75 2 $ 349 -- $ -- -- $ -- Delinquent loans to total net loans .16% .74% --% --% Delinquent loans to total loans .16% . 73% --% --%Contents

7 loans in an amount not exceeding 35% of total assets. This 35% limitation may be exceeded for certain types of consumer loans, such as home equity and property improvement loans secured by residential real property. In addition, we may invest up to 10% of our total assets in secured and unsecured loans for commercial, corporate, business or agricultural purposes. At June 30, 2010, we were within each of the above lending limits.

~~Non-Performing~~ During ~~Assets. The~~fiscal ~~following~~2010 ~~table~~and ~~shows~~2009, ~~the~~we ~~amounts~~sold $71.6 million and $16.2 million of ~~our~~loans, ~~non-performing~~respectively. ~~assets~~We ~~(defined~~recognized asgain ~~non-accruing~~on sale of loans of $644,000 ~~accruing~~during fiscal 2010 and $1,567 during fiscal 2009. Loans were sold during these periods primarily to other financial institutions. Such loans 90were ~~days~~sold oragainst forward ~~more~~sales ~~past~~commitments ~~due~~with servicing released and without recourse after a certain amount of time, typically 90 days. The loans sold primarily consisted of long-term, fixed rate residential real estate ~~owned)~~loans. atThese ~~the~~loans ~~dates~~were originated ~~indicated~~ during a period of historically low interest rates and were sold to reduce our interest rate risk. We ~~did~~will ~~not~~continue ~~have~~to ~~troubled~~sell ~~debt~~loans in ~~restructurings~~the atfuture ~~either~~to ofthe extent we believe the ~~dates~~interest ~~indicated~~rate environment is unfavorable and interest rate risk is unacceptable.

	June 30,
	2009			2008
	(Dollars in Thousands)
Non-accruing loans:
One- to four-family residential	$	349		$	--
Commercial - real estate secured		--			--
Other mortgage		--			--
Commercial business		--			--
Consumer		--			--
Total non-accruing loans		349			--
Accruing loans 90 days or more past due:
One- to four-family residential		--			--
Commercial – real estate secured		--			--
Other mortgage		--			--
Commercial business		--			--
Consumer		--			--
Total accruing loans 90 days or more past due		--			--
Total non-performing loans(1)		349			--
Real estate owned, net		--			52
Total non-performing assets	$	349		$	52
Total non-performing loans as a percent of loans, net		.74	%		--	%
Total non-performing assets as a percent of total assets		.23	%		.04	%

Contractual Terms to Final Maturities. The following table shows the scheduled contractual maturities of our loans as of June 30, 2010, before giving effect to net items. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. The amounts shown below do not take into account loan prepayments.

_________________________


													Home
													Equity Loans
													and Lines
	One- to		Commercial		Multi-								of Credit
	Four-Family		Real Estate		Family		Commercial						and Other
	Residential		Secured		Residential		Business		Land		Construction		Consumer		Total
	(In thousands)

Amounts due after June 30, 2010 in:
One year or less	$	1,275	$	1,071	$	115	$	2,882	$	3,398	$	4,355	$	2,862	$	15,958
After one year through two years		1,419		520		3,909		846		4,735		2,751		245		14,425
After two years through three years		2,414		434		—		1,354		—		—		83		4,285
After three years through five years		13,198		11,770		633		4,080		309		687		4,042		34,719
After five years through ten years		1,258		1,230		—		292		—		—		133		2,913
After ten years through fifteen years		1,529		—		788		—		—		—		—		2,317
After fifteen years		15,164		397		3,634		—		—		—		—		19,195

Total	$	36,257	$	15,422	$	9,079	$	9,454	$	8,442	$	7,793	$	7,365	$	93,812

~~(1) Non-performing~~ The ~~loans~~following ~~consist~~table sets forth the dollar amount of ~~non-accruing~~all loans, before ~~plus~~net ~~accruing~~items, ~~loans~~due 90after ~~days~~June 30, 2010 which have fixed interest rates or ~~more~~which ~~past~~have ~~due~~floating or adjustable interest rates.

Classified Assets. Federal regulations require that each insured savings institution classify its assets on a regular basis. In addition, in connection with examinations of insured institutions, federal examiners have authority to identify problem assets and, if appropriate, classify them. There are three classifications for problem assets: "substandard," "doubtful" and "loss." Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a higher possibility of loss. An asset classified as loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. Another category designated "special mention" also must be established and maintained for assets which do not currently expose an insured institution to a sufficient degree of risk to warrant classification as substandard, doubtful or loss. Assets classified as substandard or doubtful require the institution to establish general allowances for loan losses. If an asset or portion thereof is classified as loss, the insured institution must either establish specific allowances for loan losses in the amount of 100% of the portion of the asset classified loss, or charge-off such amount. General loss allowances established to cover possible losses related to assets classified substandard or doubtful may be included in determining an institution's regulatory capital, while specific valuation allowances for loan losses do not qualify as regulatory capital. Federal examiners may disagree with an insured institution's classifications and amounts reserved. At June 30, 2009, we held $168,000 of assets classified special mention and $464,000 classified as substandard. The classified assets are related to one mutual fund investment and one mortgage loan.


			Floating or
	Fixed-Rate		Adjustable-Rate		Total
	(In thousands)

One-to four-family residential	$	27,351	$	8,906	$	36,257
Commercial — real estate secured		15,422		—		15,422
Multi-family residential		9,079		—		9,079
Commercial business		9,454		—		9,454
Land		8,442		—		8,442
Construction		7,793		—		7,793
Home equity loans and lines of credit and other consumer		7,365		—		7,365

Total	$	84,906	$	8,906	$	93,812

Allowance for Loan Losses. At June 30, 2009, our allowance for loan losses amounted to $465,629. The allowance for loan losses is maintained at a level believed, to the best of our knowledge, to cover all known and inherent losses in the portfolio both probable6 and reasonable to estimate at each reporting date. The level of allowance for loan losses is based on our periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing conditions. We are primarily engaged in originating single-family residential loans. Our management considers the deficiencies of all classified loans in determining the amount of allowance for loan losses required at each reporting date. Our management analyzes the probability of the correction of the substandard loans’ weaknesses and the extent of any known or inherent losses that we might sustain on them. During the fiscal year 2009, we recorded a provision for loan losses of $240,000 as compared to $0 recorded for the fiscal year 2008. The 2009 provision reflects our estimate to maintain the allowance for loan losses at a level to cover probable losses inherent in the loan portfolio.

8Table of Contents

~~The~~ Scheduled ~~increase~~contractual inmaturities ~~the~~of ~~provision~~loans ~~for~~do ~~fiscal~~not ~~year~~necessarily reflect ~~2009~~the ~~reflects~~actual expected term of the ~~increased~~loan ~~risk~~portfolio. ~~associated~~The average ~~with~~life ~~our~~of ~~commercial~~mortgage ~~lending~~loans ~~(both~~is ~~real~~substantially ~~estate~~less ~~secured~~than ~~and~~their average ~~non-real~~contractual ~~estate~~terms ~~secured),~~because asof ~~well~~prepayments. ~~our~~The ~~consideration~~average life of ~~the~~mortgage ~~downturn~~loans intends ~~the~~to ~~national~~increase ~~economy. As~~when ~~noted~~current ~~previously~~mortgage loan rates are higher than rates on existing mortgage loans and, conversely, ~~total~~decrease ~~non~~when rates on current mortgage loans are lower than existing mortgage loan rates (due to refinancing of adjustable-~~performing~~rate ~~assets~~and ~~increased~~fixed-rate byloans ~~approximately~~at ~~$297,000~~lower rates). Under the ~~over~~ latter circumstance, the ~~prior~~weighted ~~year~~average yield on loans decreases as higher yielding loans are repaid or refinanced at lower rates.

~~While~~ One- ~~management~~to ~~believes~~Four-Family ~~that~~Residential itReal ~~determines~~Estate Loans. At ~~the~~June 30, ~~size~~2010, of$36.3 million, or ~~the~~38.7%, ~~allowance~~of ~~based on~~ the ~~best~~total ~~information~~loan ~~available~~portfolio, atbefore ~~the~~net ~~time~~items, consisted ~~the~~of ~~allowance~~one- ~~will need~~ to befour-family ~~adjusted~~residential ~~as circumstances change and assumptions are updated~~loans. ~~Future adjustments to the allowance could significantly affect net income.~~

The loan-to-value ratio, ~~following~~maturity ~~table~~and ~~shows~~other ~~changes~~provisions inof ~~our~~the ~~allowance~~loans ~~for~~made ~~loan~~by ~~losses~~us generally ~~during~~have reflected the ~~periods~~policy ~~presented. We~~of ~~had~~making $9less than the maximum loan permissible under applicable regulations,~~000~~ in accordance with sound lending practices, market conditions and underwriting $standards established by us. Our current lending policy on one-0 to four-family ofresidential loans generally limits the maximum loan-to-value ratio ~~charge~~to 90% or less of the appraised value of the property although we will lend up to a 100% loan-~~offs~~to-value ratio ~~during~~with ~~fiscal~~private ~~2009~~mortgage insurance. These loans are amortized on a monthly basis with principal and ~~2008~~interest due each month, with ~~respectively~~terms not in excess of 30 years and generally include “due-on-sale” clauses.

	At or For the Year Ended June 30,
	2009			2008
	(Dollars in Thousands)
Total loans outstanding at end of period	$	47,537		$	28,614
Average loans outstanding		32,630			28,698
Allowance for loan losses, beginning of period	$	235		$	235
Provision for loan losses		240			--
Charge-offs		(9	)		--
Allowance for loan losses, end of period	$	466		$	235
Allowance for loan losses as a percent of non-performing loans		133.52	%		--	%
Allowance for loan losses as a percent of loans outstanding		.98	%		.82	%

At June 30, 2010, $27.4 million, or 75.4%, of our one- to four-family residential mortgage loans were fixed-rate loans. Fixed-rate loans generally have maturities ranging from 15 to 30 years and are fully amortizing with monthly loan payments sufficient to repay the total amount of the loan with interest by the end of the loan term. Our fixed-rate loans generally are originated under terms, conditions and documentation which permit them to be sold to U.S. Government-sponsored agencies, such as the Federal Home Loan Mortgage Corporation, and other investors in the secondary mortgage market. Consistent with our asset/liability management, we have sold a significant portion of our long-term, fixed rate loans over the past two years.

~~The~~ Although ~~following~~we ~~table~~offer ~~shows~~adjustable ~~how~~rate ~~our~~loans, ~~allowance~~substantially ~~for~~all of the single-family loan ~~losses~~originations isover ~~allocated~~the bylast ~~type~~few years have consisted of ~~loan~~fixed-rate atloans ~~each~~due to the low interest rate environment. The adjustable-rate loans held in portfolio typically have interest rates which adjust on an annual basis. These loans generally have an annual cap of 2% on any increase or decrease and a cap of 6% above or below the ~~dates~~initial ~~indicated~~rate over the life of the loan. Such loans are underwritten based on the initial rate plus 2%.

	June 30,
	2009					2008
	Amount of Allowance		Loan Category as a % of Total Loans			Amount of Allowance		Loan Category as a % of Total Loans
	(Dollars in Thousands)
One- to four-family residential	$	226		46.50	%	$	235		65.48	%
Commercial real estate		95		17.24			--		--
Other real estate secured		--		10.27			--		17.28
Commercial business		140		13.86			--		--
Consumer		5		12.13			--		17.24
Total	$	466		100.00	%	$	235		100.00	%

Commercial and Multi-Family Residential Loans — General. In February 2009, we hired three commercial loan officers, including our President, Mr. Barlow, with over 12 years of commercial banking experience, particularly in the local Shreveport market. Although commercial loans are generally considered to have greater credit risk than other certain types of loans, management expects to mitigate such risk by originating such loans in its market area to known borrowers.

9 Commercial Real Estate Loans. As of June 30, 2010, Home Federal Bank had outstanding $15.4 million of loans secured by commercial real estate. It is the current policy of Home Federal Bank to lend in a first lien position on real property occupied as a commercial business property. Home Federal Bank offers fixed and variable rate mortgage loans. Home Federal Bank’s commercial real estate loans are limited to a maximum of 85% of the appraised value and have terms up to 15 years, however, the terms are generally no more than 5 years with amortization periods of 20 years or less. It is our policy that commercial real estate secured lines of credit are limited to a maximum of 85% of the appraised value of the property and shall not exceed 3 to 5 year amortizations.

~~Investment~~ Multi-Family ~~Securities~~Residential Loans. At June 30, 2010, we had outstanding approximately $9.1 million of multi-family residential loans. Our multi-family residential loan portfolio includes income producing properties of 50 or more units and low income housing developments. We obtain personal guarantees on all properties other than those of the public housing authority for which they are not permitted.

We Commercial ~~have~~Business ~~authority to invest in various types of securities, including mortgage-backed securities, U~~Loans.S. In ~~Treasury~~conjunction ~~obligations,~~with our ~~securities~~introduction of ~~various~~loans ~~federal agencies~~ and lines of ~~state~~credit ~~and~~secured ~~municipal~~by commercial ~~governments~~real estate, ~~certificates~~we ofinitiated ~~deposit~~non-real atestate ~~federally~~secured commercial ~~insured~~lending. ~~banks~~At ~~and~~June 30, ~~savings institutions~~2010, ~~certain~~we ~~bankers'~~had ~~acceptances~~outstanding approximately ~~and federal funds~~$9. ~~Our investment~~5 million ~~strategy~~of isnon-real ~~established~~estate bysecured commercial ~~the~~loans. ~~board~~The ofbusiness ~~directors.~~lending

~~The following table sets forth certain information relating to our investment securities portfolio at the dates indicated.~~7

	June 30,
	2009		2008
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
	(In Thousands)
Securities Held-to-Maturity:
FHLB stock	$ 1,806	$ 1,806	$ 1,196	$ 1,196
Mortgage-backed securities	378	389	492	507
Total Securities Held-to-Maturity	2,184	2,195	1,688	1,703
Securities Available-for-Sale:
Corporate securities	2,415	1,727	2,400	2,163
Mortgage-backed securities	89,567	90,920	97,915	94,161
Total Securities Available-for-Sale	91,982	92,647	100,315	96,324
Total Investment Securities	$ 94,166	$ 94,842	$ 102,003	$ 98,027

~~The~~ products ~~following~~we ~~table~~offer ~~sets~~include ~~forth~~lines ~~the~~of ~~amount~~credit, inventory financing and equipment loans. Commercial business loans and lines of credit ~~investment~~carry ~~securities~~more ~~which~~credit ~~contractually~~risk ~~mature~~than ~~during~~other ~~each~~types of ~~the~~commercial loans. ~~periods~~We ~~indicated~~attempt to limit such risk by making loans predominantly to small- and ~~the~~mid-sized ~~weighted~~businesses ~~average~~located ~~yields~~within our ~~for~~market ~~each~~area ~~range~~and ofhaving ~~maturities~~the atloans ~~June~~personally ~~30,~~guaranteed ~~2009~~by the principals involved. ~~The~~ ~~amounts~~We ~~reflect~~have established underwriting standards in regard to business loans which set forth the criteria ~~fair~~for ~~value~~sources of ~~our~~repayment, ~~securities~~borrower’s atcapacity ~~June~~to repay, 30specific financial and collateral margins and financial enhancements such as guarantees. Generally, ~~2009~~the primary source of repayment is cash flow from the business and the financial strength of the borrower.

	Amounts at June 30, 2009 Which Mature in
	One Year or Less		Weighted Average Yield			Over One Year Through Five Years		Weighted Average Yield			Over Five Through Ten Years		Weighted Average Yield			Over Ten Years		Weighted Average Yield
	(Dollars in Thousands)
Bonds and other debt securities:
Mortgage-backed securities	$	--		--	%	$	39		6.13	%	$	892		3.95	%	$	90,378		5.09	%
Equity securities(1):
ARM Fund		--		--			--		--			--		--			1,727		2.97
FHLB stock		--		--			--		--			--		--			1,806		.95
Total investment securities and FHLB stock	$	--		--	%	$	39		6.13	%	$	892		3.95	%	$	93,911		4.98	%

Land Loans. As of June 30, 2010, land loans were $8.4 million, or 9.0% of the total loan portfolio. Land loans include land which has been acquired for the purpose of development and unimproved land. Our loan policy provides for loan-to-value ratios of 50% for unimproved land loans. Land loans are originated with fixed rates and terms up to five years with longer amortizations. Although land loans generally are considered to have greater credit risk than certain other types of loans, we expect to mitigate such risk by requiring personal guarantees and identifying other secondary source of repayment for the land loan other than the sale of the collateral. It is our practice to only originate a limited amount of loans for speculative development to borrowers with whom our lenders have a prior relationship.

~~________________________~~ Construction Loans. At June 30, 2010, we had outstanding approximately $7.8 million of construction loans which included loans for the construction of residential and commercial property. Our residential construction loans typically have terms of 6 to eleven months with a takeout letter from Home Federal for the permanent mortgage. Our commercial construction loans include owner occupied commercial properties, pre-sold property and speculative office property. As of June 30, 2010, we held $3.4 million of speculative construction loans, $2.3 million of which related to speculative office condominium projects, which are limited to eight units at any one time.

~~(1)~~ Home ~~None~~Equity and Second Mortgage Loans. At June 30, 2010, we held $3.0 million of home equity and second mortgage loans compared to $4.9 million of home equity and second mortgage loans at June 30, 2009. These loans are secured by the ~~listed~~underlying equity ~~securities~~in ~~has~~the borrower’s residence. We do not require that we hold the first mortgage on the properties that secure the second mortgage loans. The amount of our second mortgage loans generally cannot exceed a loan-to-value ratio ~~stated~~of ~~maturity~~90% after taking into consideration the first mortgage loan. These loans are typically three-to-five year balloon loans with fixed rates and terms that will not exceed 10 years and contain an on-demand clause that allows us to call the loan in at any time.

~~Our~~ Equity ~~investment~~Lines inof ~~equity~~Credit. We ~~securities~~offer ~~consists~~lines ~~primarily~~ of credit ~~FHLB~~secured ~~stock~~by ~~and~~ a ~~$2.4~~borrower’s ~~million~~equity ~~(book value) investment~~ in anreal ~~adjustable-rate~~estate ~~mortgage~~which loans ~~fund~~amounted ~~(referred~~ to as$4.1 million, ~~the~~or ~~ARM Fund)~~4. ~~The~~3% ~~fair value~~ of the ~~ARM~~total ~~Fund~~loan portfolio, ~~has~~at ~~traditionally correlated with the interest rate environment. At~~ June 30, ~~2009, the unrealized loss on this investment was $688,000~~2010. ~~During~~ ~~fiscal~~The ~~2009,~~rates weand ~~evaluated~~terms ~~our~~of ~~position~~such lines inof ~~the~~credit ~~ARM~~depend ~~Fund~~on ~~to determine if~~ the ~~impairment~~history ~~was~~and ~~other~~income ~~than temporary. Based on the assessment~~ of the borrower, ~~underlying~~purpose ~~assets~~ of the ~~ARM~~loan ~~Fund,~~and ascollateral. ~~well~~Lines ~~our~~of ~~ability~~credit will ~~and~~not ~~intent~~exceed to90% ~~hold~~of the ~~investment until it recovers its~~ value, weof ~~determined that~~ the ~~investment’s~~equity ~~impairment~~in ~~was~~the ~~not other than temporary~~collateral. ~~Management will continue to monitor its investment portfolio to determine whether any investment securities which~~ ~~have unrealized losses should be considered other than temporarily impaired.~~

10 Non-real Estate Loans — General. We are authorized to make loans for a wide variety of personal or consumer purposes. We originate consumer loans in order to accommodate our customers and because such loans generally have shorter terms and higher interest rates than residential mortgage loans. The consumer loans we offer consist of loans secured by deposit accounts with us, automobile loans and other unsecured loans.

~~Mortgage~~ Non-~~backed~~real ~~securities~~estate ~~represent~~loans agenerally ~~participation~~have shorter terms and higher interest inrates athan ~~pool~~residential ofmortgage ~~one-~~loans, toand ~~four-family~~generally entail orgreater ~~multi-family~~credit ~~mortgages.~~risk ~~The~~than residential mortgage ~~originators~~loans, particularly ~~use~~those ~~intermediaries~~loans ~~(generally~~secured ~~U.S.~~by ~~Government~~assets ~~agencies~~that ~~and~~depreciate rapidly, ~~government-sponsored~~such ~~enterprises)~~as toautomobiles, ~~pool~~boats and ~~repackage~~recreational ~~the~~vehicles. In ~~participation~~such ~~interests~~cases, inrepossessed ~~the~~collateral ~~form~~for a defaulted consumer loan may not provide an adequate source of ~~securities,~~repayment ~~with~~for ~~investors~~the outstanding ~~receiving~~loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. ~~principal~~In ~~and~~particular, ~~interest~~amounts ~~payments~~realizable on the ~~mortgages.~~sale ~~Such~~of repossessed ~~U.S.~~automobiles ~~Government~~may ~~agencies~~be ~~and~~significantly ~~government-sponsored~~reduced ~~enterprises~~based ~~guarantee~~ upon the ~~payment~~condition of ~~principal~~the automobiles and ~~interest~~the tofluctuating ~~investors~~demand for used automobiles.

~~Mortgage-backed~~ We ~~securities~~offer ~~are~~loans ~~typically~~secured ~~issued~~by ~~with~~deposit ~~stated~~accounts ~~principal~~held ~~amounts~~with us, ~~and~~which loans ~~the~~amounted ~~securities~~to ~~are~~$285,000, ~~backed~~or by.30% ~~pools~~ of ~~mortgages~~the ~~that~~total ~~have~~loan ~~loans~~portfolio, at ~~with~~June 30, ~~interest~~2010. ~~rates~~Such ~~that~~loans are ~~within~~originated afor ~~range~~up ~~and~~to ~~have varying maturities. The underlying pool~~ 100% of ~~mortgages,~~the ~~i.e.,~~account ~~fixed-rate or adjustable-rate~~balance, as ~~well~~with asa ~~prepayment~~hold ~~risk,~~placed ~~are passed~~ on to the ~~certificate~~account restricting ~~holder.~~the ~~The~~withdrawal ~~life~~ of athe ~~mortgage-backed~~account ~~pass-through~~balance. ~~security~~The ~~approximates~~interest rate ~~the~~on ~~life of~~ the ~~underlying mortgages.~~

Our mortgage-backed securities consist of Ginnie Mae securities ("GNMA"), Freddie Mac securities ("FHLMC") and Fannie Mae securities ("FNMA"). Ginnie Mae is a government agency within the Department of Housing and Urban Development which is intended to help finance government-assisted housing programs. Ginnie Mae securities8 are backed by loans insured by the Federal Housing Administration, or guaranteed by the Veterans Administration. The timely payment of principal and interest on Ginnie Mae securities is guaranteed by Ginnie Mae and backed by the full faith and credit of the U.S. Government. Freddie Mac is a private corporation chartered by the U.S. Government. Freddie Mac issues participation certificates backed principally by conventional mortgage loans. Freddie Mac guarantees the timely payment of interest and the ultimate return of principal on participation certificates. Fannie Mae is a private corporation chartered by the U.S. Congress with a mandate to establish a secondary market for mortgage loans. Fannie Mae guarantees the timely payment of principal and interest on Fannie Mae securities. Freddie Mac and Fannie Mae securities are not backed by the full faith and credit of the U.S. Government, but because Freddie Mac and Fannie Mae are U.S. Government-sponsored enterprises, these securities are considered to be among the highest quality investments with minimal credit risks. In September 2008, the Federal Housing Finance Agency was appointed as conservator of Fannie Mae and Freddie Mac. The U.S. Department of the Treasury agreed to provide capital as needed to ensure that Fannie Mae and Freddie Mac continue to provide liquidity to the housing and mortgage markets.

Mortgage-backedTable securities generally yield less than the loans which underlie such securities because of their payment guarantees or credit enhancements which offer nominal credit risk. In addition, mortgage-backed securities are more liquid than individual mortgage loans and may be used to collateralize our borrowings or other obligations.Contents

~~The~~ loan ~~following~~is ~~table~~equal ~~sets~~to ~~forth~~ the ~~composition~~interest ofrate ~~our~~paid ~~mortgage-backed~~on ~~securities~~the ~~portfolio~~account atplus ~~each~~2%. These ofloans ~~the~~typically ~~dates~~are ~~indicated. The~~payable ~~amounts~~on ~~reflect~~demand ~~the~~with ~~fair~~a ~~value~~maturity date of ~~our~~one ~~mortgage-backed securities at June 30, 2009 and 2008~~year.

	June 30,
	2009		2008
	(In Thousands)
Fixed rate:
GNMA	$	251	$	338
FHLMC		14,087		12,458
FNMA		75,301		79,903
Total fixed rate		89,639		92,699
Adjustable rate:
GNMA		155		181
FNMA		1,013		1,192
FHLMC		502		596
Total adjustable-rate		1,670		1,969
Total mortgage-backed securities	$	91,309	$	94,668

Loan Origination and Other Fees. In addition to interest earned on loans, we generally receive loan origination fees or “points” for originating loans. Loan points are a percentage of the principal amount of the mortgage loan and are charged to the borrower in connection with the origination of the loan. In accordance with accounting guidance, loan origination fees and points are deferred and amortized into income as an adjustment of yield over the life of the loan.

Information regarding the contractual maturities and weighted average yield of our mortgage-backed securities portfolio at June 30, 2009 is presented below. Due to repayments of the underlying loans, the actual maturities of mortgage-backed securities generally are substantially less than the scheduled maturities. The amounts ~~reflect the fair value of our mortgage-backed securities at June 30, 2009.~~ Asset Quality

11 General. During fiscal 2010, we engaged a third party to review loans, policies, and procedures. The scope of the services to be provided includes credit underwriting, adherence to our loan policies as well as regulatory policies, and recommendations regarding reserve allocations. We expect to have such reviews done annually.

	Amounts at June 30, 2009 Which Mature in
	One Year or Less		Weighted Average Yield			Over One through Five Years		Weighted Average Yield			Over Five Years		Weighted Average Yield
	(In Thousands)
Fixed rate:
GNMA	$	--		--	%	$	33		6.08	%	$	218		6.22	%
FHLMC		--		--			--		--			14,087		5.71
FNMA		--		--			--		--			75,301		4.79
Total fixed-rate		--		--			33		6.08			89,606		5.11
Adjustable rate:
GNMA		--		--			--		--			155		3.96
FNMA		--		--			6		6.15			1,007		3.75
FHLMC		--		--			--		--			502		3.89
Total adjustable-rate		--		--			6		6.15			1,664		3.81
Total	$	--		--	%	$	39	6.13		%	$	91,270		5.09	%

Our collection procedures provide that when a loan is 10 days past due, personal contact efforts are attempted, either in person or by telephone. At 15 days past due, a late charge notice is sent to the borrower requesting payment. If the loan is still past due at 30 days, a formal letter is sent to the borrower stating that the loan is past due and that legal action, including foreclosure proceedings, may be necessary. If a loan becomes 60 days past due and no progress has been made in resolving the delinquency, a collection letter from legal counsel is sent and personal contact is attempted. When a loan continues in a delinquent status for 90 days or more, and a repayment schedule has not been made or kept by the borrower, generally a notice of intent to foreclose is sent to the borrower. If the delinquency is not cured, foreclosure proceedings are initiated. In most cases, deficiencies are cured promptly. While we generally prefer to work with borrowers to resolve such problems, we will institute foreclosure or other collection proceedings when necessary to minimize any potential loss.

~~The~~ Loans ~~following~~are ~~table~~placed ~~sets~~on ~~forth~~non-accrual status when management believes the ~~purchases~~probability of collection of interest is doubtful. When a loan is placed on non-accrual status, ~~sales~~previously ~~and~~accrued ~~principal~~but unpaid ~~repayments~~interest is deducted from interest income. We generally discontinue the accrual of ~~our~~interest ~~mortgage-backed~~income ~~securities~~when ~~during~~the loan becomes 90 days past due as to principal or interest unless the credit ~~periods~~is ~~indicated~~well secured and we believe we will fully collect.

	At or For the Year Ended June 30,
	2009			2008
	(Dollars in Thousands)
Mortgage-backed securities at beginning of period	$	98,407		$	86,396
Purchases		24,253			38,907
Repayments		(13,957	)		(11,720	)
Sales		(19,048	)		(15,358	)
Amortizations of premiums and discounts, net		290			182
Mortgage-backed securities at end of period		89,945			98,407
Weighted average yield at end of period		5.09	%		4.98	%

Real estate and other assets we acquire as a result of foreclosure or by deed-in-lieu of foreclosure are classified as real estate owned until sold. We held no real estate owned at June 30, 2010 and June 30, 2009.

~~Sources of Funds~~9

General. DepositsTable are our primary source of funds for lending and other investment purposes. In addition to deposits, principal and interest payments on loans and investment securities are a source of funds. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows are significantly influenced by general interest rates and money market conditions. Borrowings may also be used on a short-term basis to compensate for reductions in the availability of funds from other sources and on a longer-term basis for general business purposes.Contents

~~Deposits. We~~ Delinquent ~~attract deposits principally from residents of Louisiana and particularly from Caddo Parish and to a lesser extent from Bossier Parish~~Loans. ~~Deposit~~The ~~account~~following ~~terms~~table ~~vary, with~~ shows the ~~principal~~delinquencies ~~differences~~in ~~being~~our ~~the~~loan ~~minimum~~portfolio ~~balance~~as ~~required,~~of the ~~time periods~~dates ~~the funds must remain on deposit and the interest rate~~ indicated. ~~We have not solicited deposits from outside Louisiana or paid fees to brokers to solicit funds for deposit.~~

We establish interest rates paid, maturity terms, service fees and withdrawal penalties on a periodic basis. Management determines the rates and terms based on rates paid by competitors, the need for funds or liquidity, growth goals and federal regulations. We attempt to control the flow of deposits by pricing our accounts to remain generally competitive with other financial institutions in the market area.


	June 30, 2010										June 30, 2009
	30-89					90 or More Days					30-89					90 or More Days
	Days Overdue					Overdue					Days Overdue					Overdue
	Number		Principal			Number		Principal			Number		Principal			Number		Principal
	of Loans		Balance			of Loans		Balance			of Loans		Balance			of Loans		Balance
	(Dollars in thousands)

One- to four-family residential		4	$	265			1	$	15			1	$	75			2	$	349
Commercial — real estate secured		—		—			—		—			—		—			—		—
Multi-family residential		—		—			—		—			—		—			—		—
Commercial business		—		—			—		—			—		—			—		—
Land		—		—			—		—			—		—			—		—
Construction		—		—			1		345			—		—			—		—
Home equity loans and lines of credit and other consumer		—		—			—		—			—		—			—		—

Total delinquent loans		4	$	265			2	$	360			1	$	75			2	$	349

Delinquent loans to total net loans				0.28	%				0.39	%				0.16	%				0.74	%
Delinquent loans to total loans				0.28	%				0.38	%				0.16	%				0.73	%

12 Non-Performing Assets. The following table shows the amounts of our non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due and real estate owned) at the dates indicated. We did not have accruing loans 90 days or more past due, real estate owned or troubled debt restructurings at either of the dates indicated.

The following table shows the distribution of, and certain other information relating to, our deposits by type of deposit, as of the dates indicated.


	June 30,
	2010			2009
	(Dollars in thousands)

Non-accruing loans:
One- to four-family residential	$	15		$	349
Commercial — real estate secured		—			—
Multi-family residential		—			—
Commercial business		—			—
Land		—			—
Construction		345			—
Home equity loans and lines of credit and other consumer		—			—

Total non-accruing loans		360			349

Accruing loans 90 days or more past due		—			—
Total non-performing loans(1)		360			349

Real estate owned, net		—			—

Total non-performing assets	$	360		$	349

Total non-performing loans as a percent of loans, net		0.39	%		0.74	%
Total non-performing assets as a percent of total assets		0.19	%		0.23	%

		June 30,
		2009			2008
		Amount	%		Amount	%
		(Dollars in Thousands)
Certificate accounts
0.00% - 0.99%	$	134	.14	%	$ 9	--	%
1.00% - 1.99%		11,970	13.90		127	.16
2.00% - 2.99%		13,030	15.13		9,074	11.58
3.00% - 3.99%		21,405	24.85		12,840	16.39
4.00% - 4.99%		12,990	15.08		24,724	31.56
5.00% - 5.99%		3,272	3.80		15,334	19.57
Total certificate accounts		62,801	72.90		62,108	79.26
Transaction accounts:
Savings		6,056	7.03		4,836	6.17
NOW		8,537	9.91		8,533	10.89
Money market		8,752	10.16		2,882	3.68
Total transaction accounts		23,345	27.10		16,251	20.74
Total deposits	$	86,146	100.00	%	$78,359	100.00	%


(1)		Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more past due.

~~The~~ Classified ~~following~~Assets. Federal ~~table~~regulations ~~shows~~require that ~~the~~each ~~average~~insured ~~balance~~savings ofinstitution ~~each~~classify ~~type~~its ofassets ~~deposit~~on ~~and~~a regular ~~the~~basis. ~~average~~In ~~rate~~addition, ~~paid~~in onconnection ~~each~~with ~~type~~examinations of insured ~~deposit~~institutions, ~~for~~federal ~~the~~examiners ~~periods indicated.~~have

	Year Ended June 30,
	2009							2008
	Average		Interest		Average			Average		Interest		Average
	Balance		Expense		Rate Paid			Balance		Expense		Rate Paid
					(Dollars in Thousands)
Savings	$	5,653	$	26		.46	%	$	4,546	$	22		.49	%
NOW		7,896		21		.27			7,176		16		.22
Money market		4,268		38		.89			2,999		12		.40
Certificates of deposit		61,780		2,378		3.85			63,893		2,985		4.67
Total deposits	$	79,597	$	2,463		3.09	%	$	78,614	$	3,035		3.86	%

TheTable followingof table shows our savings flows during the periods indicated.Contents

	Year Ended June 30,
	2009		2008
	(In Thousands)
Total deposits at beginning of period	$	78,359	$	77,710
Net deposits (withdrawals)		6,212		(1,116	)
Interest credited		1,575		1,766
Total increase in deposits	$	7,787	$	650

authority to identify problem assets and, if appropriate, classify them. There are three classifications for problem assets: “substandard,” “doubtful” and “loss.” Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a higher possibility of loss. An asset classified as loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. Another category designated “special mention” also must be established and maintained for assets which do not currently expose an insured institution to a sufficient degree of risk to warrant classification as substandard, doubtful or loss. Assets classified as substandard or doubtful require the institution to establish general allowances for loan losses. If an asset or portion thereof is classified as loss, the insured institution must either establish specific allowances for loan losses in the amount of 100% of the portion of the asset classified loss, or charge-off such amount. General loss allowances established to cover possible losses related to assets classified substandard or doubtful may be included in determining an institution’s regulatory capital, while specific valuation allowances for loan losses do not qualify as regulatory capital. Federal examiners may disagree with an insured institution’s classifications and amounts reserved. At June 30, 2010, we held $227,000 of assets classified special mention and $563,000 classified as substandard. The classified assets are related to one mutual fund investment, three mortgage loans and one construction loan.

13 Allowance for Loan Losses. At June 30, 2010, our allowance for loan losses amounted to $489,000. The allowance for loan losses is maintained at a level believed, to the best of our knowledge, to cover all known and inherent losses in the portfolio both probable and reasonable to estimate at each reporting date. The level of allowance for loan losses is based on our periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing conditions. We are primarily engaged in originating single-family residential loans. Our management considers the deficiencies of all classified loans in determining the amount of allowance for loan losses required at each reporting date. Our management analyzes the probability of the correction of the substandard loans’ weaknesses and the extent of any known or inherent losses that we might sustain on them. During the fiscal year 2010, we recorded a provision for loan losses of $36,000 as compared to $240,000 recorded for the fiscal year 2009. The 2010 provision reflects our estimate to maintain the allowance for loan losses at a level to cover probable losses inherent in the loan portfolio.

The ~~following~~increase ~~table~~in ~~presents,~~the byprovision ~~various~~for ~~interest~~fiscal ~~rate~~year ~~categories~~2010 reflects the increased risk associated with our commercial lending (both real estate secured and ~~maturities~~non-real estate secured), ~~the~~as ~~amount~~well our consideration of ~~certificates~~the ofdownturn ~~deposit~~in atthe ~~June~~national 30economy. As noted previously, ~~2009~~total non-performing assets increased by approximately $11,000 over the prior year.

		Balance at June 30, 2009 Maturing in the 12 Months Ending June 30,
Certificates of Deposit		2010		2011		2012		Thereafter		Total
		(In Thousands)
	0.00% - 0.99%	$	134	$	--	$	--	$	--	$	134
	1.00% - 1.99%		11,650		320		--		--		11,970
	2.00% - 2.99%		9,304		3,054		661		11		13,030
	3.00% - 3.99%		15,417		1,993		1,089		2,906		21,405
	4.00% - 4.99%		5,064		3,483		2,927		1,516		12,990
	5.00% - 5.99%		1,791		517		744		220		3,272
Total certificate accounts		$	43,360	$	9,367	$	5,421	$	4,653	$	62,801

While management believes that it determines the size of the allowance based on the best information available at the time, the allowance will need to be adjusted as circumstances change and assumptions are updated. Future adjustments to the allowance could significantly affect net income.

~~The following table shows the maturities of our certificates of deposit in excess of $100,000 at June 30, 2009 by time remaining to maturity.~~11

Quarter Ending:	Amount		Weighted Average Rate
	(Dollars in Thousands)
September 30, 2009	$	2,277		3.42	%
December 31, 2009		4,620		3.15
March 31, 2010		1,473		3.01
June 30, 2010		3,612		2.73
After June 30, 2010		4,411		3.85
Total certificates of deposit with balances in excess of $100,000	$	16,393		3.28	%

~~Borrowings. We~~ The ~~may~~following ~~obtain~~table ~~advances~~shows ~~from~~changes ~~the Federal Home Loan Bank of Dallas upon the security of the common stock we own~~ in ~~that bank and certain of~~ our ~~residential~~allowance ~~mortgage~~for ~~loans and mortgage-backed and other investment securities, provided certain standards related to~~loan ~~creditworthiness~~ losses ~~have~~during ~~been~~the ~~met~~periods presented. ~~These~~We ~~advances~~had ~~are made pursuant to several credit programs~~$13,000 ~~each of which has its own interest rate~~ and ~~range~~ $9,000 of ~~maturities.~~loan ~~Federal~~charge-offs ~~Home~~during ~~Loan~~fiscal ~~Bank~~2010 ~~advances are generally available to meet seasonal~~ and ~~other~~2009, ~~withdrawals of deposit accounts and to permit increased lending~~respectively.

As of June 30, 2009, we were permitted to borrow up to an aggregate total of $104.3 million from the Federal Home Loan Bank of Dallas. We had $36.0 million and $26.9 million of Federal Home Loan Bank advances outstanding at June 30, 2009 and 2008, respectively.


	At or for the Year Ended
	June 30,
	2010			2009
	(Dollars in thousands)

Total loans outstanding at end of period	$	93,812		$	47,537
Average loans outstanding		77,879			32,630
Allowance for loan losses, beginning of period	$	466		$	235
Provision for loan losses		36			240
Charge-offs		(13	)		(9	)

Allowance for loan losses, end of period	$	489		$	466

Allowance for loan losses as a percent of non-performing loans		135.83	%		133.52	%
Allowance for loan losses as a percent of loans outstanding		0.52	%		0.98	%

The following table shows ~~certain~~how ~~information~~our ~~regarding~~allowance ~~our~~for ~~borrowings~~loan losses is allocated by type of loan at oreach ~~for~~of the dates indicated:.

	At or For the Year Ended June 30,
	June 30,
	2009			2008
	2010						2009
	(Dollars in Thousands)
				Loan					Loan
FHLB advances:
				Category					Category
Average balance outstanding	$	35,853		$	20,602
	Amount of			as a % of			Amount of		as a % of
Maximum amount outstanding at any month-end during the period	$	41,134		$	27,293
	Allowance			Total Loans			Allowance		Total Loans
Balance outstanding at end of period	$	35,997		$	26,876
	(Dollars in thousands)
Average interest rate during the period		3.84	%		4.53	%
One- to four-family residential	$	30			38.65	%	$	29		46.50	%
Weighted average interest rate at end of period		3.81	%		4.27	%
Commercial real estate		95			16.44			91		17.23
Multi-family residential		70			9.68			67		10.27
Commercial business		140			10.08			133		8.21
Land		75			9.00			71		4.94
Construction		74			8.31			71		0.71
Home equity loans and lines of credit and other consumer		5			7.85			4		12.13
Total	$	489			100.00	%	$	466		100.00	%

~~At June 30, 2009, $10.0 million of our borrowings were short-term (maturities of one year or less). Such short-term borrowings had a weighted average interest rate of 3.47% at June 30, 2009.~~ Investment Securities

14 We have authority to invest in various types of securities, including mortgage-backed securities, U.S. Treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, certain bankers’ acceptances and federal funds. Our investment strategy is established by the board of directors.

~~REGULATION~~12

GeneralTable of Contents

~~Home~~ The ~~Federal~~following ~~Bank,~~table assets aforth ~~federally~~certain ~~chartered~~information ~~savings~~relating ~~and loan association, is subject~~ to federal regulation and oversight by the Office of Thrift Supervision extending to all aspects of its operations. Home Federal Bank also is subject to regulation and examination by the Federal Deposit Insurance Corporation, which insures our ~~deposits~~ our to the maximum extent permitted by law, and requirements established by the Federal Reserve Board. Federally chartered savings institutions are required to file periodic reports with the Office of Thrift Supervision and are subject to periodic examinations by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation. The investment ~~and~~securities ~~lending~~portfolio ~~authority~~at of savings institutions are prescribed by federal laws and regulations, and such institutions are prohibited from engaging in any activities not permitted by such laws and regulations. Such regulation and supervision primarily is intended for the ~~protection~~dates ~~of depositors and not for the purpose of protecting shareholders~~indicated.

Federal law provides the federal banking regulators, including the Office of Thrift Supervision and Federal Deposit Insurance Corporation, with substantial enforcement powers. The Office of Thrift Supervision's enforcement authority over all savings institutions and their holding companies includes, among other things, the ability to assess civil money penalties, to issue cease and desist or removal orders and to initiate injunctive actions. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed with the Office of Thrift Supervision.


	June 30,
	2010				2009
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)

Securities Held-to-Maturity:
FHLB stock	$	1,840	$	1,840	$	1,806	$	1,806
Mortgage-backed securities		298		323		378		389

Total Securities Held-to-Maturity		2,138		2,163		2,184		2,195

Securities Available-for-Sale:
Corporate securities		1,538		1,559		2,415		1,727
Mortgage-backed securities		58,974		62,129		89,567		90,920

Total Securities Available-for-Sale		60,512		63,688		91,982		92,647

Total Investment Securities	$	62,650	$	65,851	$	94,166	$	94,842

~~Any~~ The ~~change~~following intable ~~these~~sets ~~laws~~forth ~~and~~the ~~regulations,~~amount ~~whether~~of byinvestment securities ~~the~~which ~~Federal~~contractually ~~Deposit~~mature ~~Insurance~~during ~~Corporation,~~each ~~Office~~ of ~~Thrift~~the ~~Supervision~~periods indicated orand ~~Congress,~~the ~~could~~weighted ~~have~~average ayields ~~material~~for ~~adverse~~each ~~impact~~range onof maturities ~~Home~~at ~~Federal~~June 30, ~~Mutual~~2010. ~~Holding~~The ~~Company,~~amounts ~~Home~~reflect ~~Federal~~the ~~Bancorp~~fair value ~~and~~of ~~Home~~our ~~Federal~~securities ~~Bank~~at ~~and~~June 30, ~~our operations~~2010.

Set forth below is a brief description of certain laws relating to the regulation of Home Federal Bancorp, Home Federal Mutual Holding Company and Home Federal Bank. This description does not purport to be complete and is qualified in its entirety by reference to applicable laws and regulations.


	Amounts at June 30, 2010 which Mature in
						Over One
			Weighted			Year		Weighted			Over Five		Weighted					Weighted
	One Year		Average			Through		Average			Through		Average			Over		Average
	or Less		Yield			Five Years		Yield			Ten Years		Yield			Ten Years		Yield
	(Dollars in thousands)

Bonds and other debt securities:
Mortgage-backed securities	$	8		6.08	%	$	5		6.41	%	$	866		3.52	%	$	61,573		4.95	%
Equity securities(1):
ARM Fund		—		—			—		—			—		—			1,559		3.54
FHLB stock		—		—			—		—			—		—			1,840		.37

Total investment securities and FHLB stock	$	8		6.08	%	$	5		6.41	%	$	866		3.52	%	$	64,972		4.78	%

~~Regulation~~(1) None of ~~Home~~the ~~Federal~~listed ~~Bancorp,~~equity ~~Inc.~~securities ~~and~~has ~~Home~~a ~~Federal~~stated ~~Mutual Holding Company~~maturity.

~~Holding~~ Our ~~Company~~investment ~~Activities. Home~~in ~~Federal~~equity ~~Bancorp~~securities ~~and~~consists ~~Home~~primarily ~~Federal~~of ~~Mutual~~FHLB stock ~~Holding Company operate as unitary savings~~ and ~~loan~~a ~~holding companies~~$1. ~~Although~~5 million ~~savings~~(book ~~and~~value) ~~loan~~investment ~~holding~~in ~~companies~~an adjustable-rate ~~are~~mortgage ~~not~~fund ~~subject~~(referred to ~~specific~~as ~~capital~~the ~~requirements~~ARM orFund). ~~specific restrictions~~The on fair value of the ~~payment~~ARM ofFund ~~dividends~~has ortraditionally ~~other~~correlated ~~capital~~with ~~distributions,~~the interest ~~federal~~rate ~~regulations~~environment. doAt ~~prescribe~~June 30, ~~such~~2010, ~~restrictions~~the unrealized gain on ~~subsidiary~~this ~~savings~~investment ~~institutions~~was $21,000. asDuring ~~described~~fiscal ~~below. Home~~2010, ~~Federal~~we evaluated ~~Bank~~our ~~must~~position ~~notify~~in the ~~Office~~ARM ofFund ~~Thrift~~to ~~Supervision~~determine 30if ~~days~~the impairment ~~before~~was ~~declaring~~other ~~any~~than ~~dividend~~temporary. In ~~addition,~~Based on the ~~financial~~assessment ~~impact~~ of the aunderlying ~~holding~~assets ~~company~~of onthe ~~its~~ARM ~~subsidiary~~Fund, ~~institution~~as iswell aour ~~matter~~ability ~~that~~and intent isto ~~evaluated~~hold by the ~~Office~~investment ofuntil ~~Thrift~~it ~~Supervision~~recovers ~~and~~its value, we determined that the ~~agency~~investment’s ~~has~~impairment ~~authority~~was toother ~~order~~than temporary ~~cessation~~resulting ofin ~~activities~~an orimpairment ~~divestiture~~ charge against earning of $627,000. ~~subsidiaries~~Management ~~deemed~~will continue to ~~pose~~monitor aits ~~threat~~investment portfolio to ~~the~~determine ~~safety~~whether ~~and~~any ~~soundness~~investment ofsecurities ~~the~~which have ~~institution~~unrealized losses should be considered other than temporarily impaired.

~~Holding~~ Mortgage-backed ~~Company~~securities ~~Acquisitions. Home~~represent ~~Federal~~a ~~Bancorp~~participation ~~and~~interest ~~Home Federal Mutual Holding Company are savings and loan holding companies under the Home Owners' Loan Act, and are registered with the Office of Thrift Supervision. Federal law generally prohibits~~ in a ~~savings and~~pool ~~loan holding company, without prior Office~~ of ~~Thrift~~one- ~~Supervision~~to ~~approval,~~four-family ~~from acquiring the ownership~~ or ~~control~~multi-family ofmortgages. ~~any~~The mortgage ~~other~~originators ~~savings~~use ~~institution~~intermediaries ~~or savings and loan holding company, or all, or substantially all, of the assets or more than 5% of the voting shares of the savings institution or savings and loan holding company~~(generally U.S. Government ~~These~~agencies ~~provisions also prohibit, among other things, any director or officer of a savings~~ and ~~loan holding company, or any individual who owns or controls more than 25% of the voting~~government-sponsored ~~shares~~ enterprises) ofto ~~such~~pool ~~holding company, from acquiring control of any savings institution not a subsidiary of such savings~~ and ~~loan~~repackage ~~holding company, unless~~ the ~~acquisition~~participation isinterests in ~~approved by~~ the ~~Office~~form of ~~Thrift Supervision.~~securities,

The Office of Thrift Supervision may not approve any acquisition that would result in a multiple savings and loan holding company controlling savings institutions in more than one state, subject to two exceptions: (1) the approval of interstate supervisory acquisitions by savings and loan holding companies; and (2) the acquisition of a13 savings institution in another state if the laws of the state of the target savings institution specifically permit such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

15Table of Contents

~~Waivers~~ with ofinvestors ~~Dividends~~receiving ~~by Home Federal Mutual Holding Company. It is~~ the ~~policy~~principal ofand ainterest ~~number~~payments ~~of mutual holding companies to waive~~ on the ~~receipt of dividends declared by their subsidiary companies~~mortgages. ~~Office~~ ofSuch ~~Thrift Supervision regulations require Home Federal Mutual Holding Company to notify the Office of Thrift Supervision of any proposed waiver of its receipt of any dividends~~U. ~~The~~S. Government ~~Office~~agencies ~~of Thrift Supervision reviews dividend waiver notices on a case~~and government-~~by-case~~sponsored ~~basis,~~enterprises ~~and,~~guarantee ~~in general, does not object to any such waiver if~~ the ~~waiver~~payment of principal ~~cash dividends would not be detrimental to the safe~~ and ~~sound~~interest operation of the subsidiary institution. Home Federal Mutual Holding Company waived all its dividends paid by Home Federal Bancorp during the fiscal year ended June 30, 2009. Under Office of Thrift Supervision regulations, public stockholders are not diluted because of any dividends waived by Home Federal Mutual Holding Company would not be considered in determining an appropriate exchange ratio in the event Home Federal Mutual Holding Company converts to ~~stock form~~investors.

~~Federal~~ Mortgage-backed ~~Securities~~securities ~~Laws. Home~~are ~~Federal~~typically ~~Bancorp~~issued ~~registered~~with ~~its~~stated principal ~~common~~amounts, ~~stock~~and ~~with~~ the ~~Securities~~securities ~~and~~are ~~Exchange~~backed ~~Commission~~by ~~under~~pools ~~Section~~of mortgages ~~12(g)~~that ofhave ~~the~~loans ~~Securities~~with ~~Exchange~~interest ~~Act~~rates ofthat ~~1934. The~~are ~~Company~~within isa range ~~subject~~and tohave ~~the~~varying ~~proxy~~maturities. ~~and~~The ~~tender~~underlying ~~offer~~pool ~~rules~~of mortgages, ~~insider~~i.e., ~~trading~~fixed-rate ~~reporting~~or adjustable-rate, as well ~~requirements~~ as ~~and~~prepayment ~~restrictions~~risk, ~~and~~are ~~certain~~passed ~~other~~on ~~requirements~~to ~~under~~ the ~~Securities~~certificate ~~Exchange~~holder. ~~Act~~The life of ~~1934~~a mortgage-backed pass-through security approximates the life of the underlying mortgages.

~~The~~ Our ~~Sarbanes~~mortgage-~~Oxley~~backed ~~Act. The~~securities ~~Sarbanes-Oxley~~consist ~~Act~~ of ~~2002~~Ginnie ~~addresses~~Mae securities (“GNMA”), ~~among~~Freddie ~~other~~Mac ~~issues,~~securities ~~corporate~~(“FHLMC”) and ~~governance,~~Fannie ~~auditing~~Mae ~~and~~securities ~~accounting,~~(“FNMA”). ~~executive~~Ginnie ~~compensation,~~Mae ~~and~~is ~~enhanced~~a government ~~and~~agency ~~timely~~within ~~disclosure~~the Department of ~~corporate~~Housing ~~information.~~and ~~As directed~~Urban by Development ~~the~~which ~~Sarbanes-Oxley~~is ~~Act,~~intended ~~our~~to ~~chief~~help ~~executive~~finance government-assisted ~~officer~~housing ~~and~~programs. ~~principal~~Ginnie ~~financial~~Mae ~~officer~~securities are backed ~~required~~by toloans ~~certify~~insured ~~that~~by ~~our~~the ~~quarterly~~Federal ~~and~~Housing ~~annual~~Administration, or ~~reports~~guaranteed doby ~~not~~the ~~contain~~Veterans ~~any~~Administration. ~~untrue~~The ~~statement~~timely payment of aprincipal ~~material~~and ~~fact.~~interest ~~The~~on ~~rules~~Ginnie ~~adopted~~Mae securities is guaranteed by ~~the~~Ginnie ~~Securities~~Mae and ~~Exchange~~backed ~~Commission~~by ~~under~~the full faith and credit of the U.S. Government. ~~Sarbanes-Oxley~~Freddie ~~Act~~Mac ~~have~~is ~~several~~a ~~requirements,~~private ~~including~~corporation chartered ~~having~~by ~~these~~the ~~officers~~U.S. Government. ~~certify~~Freddie ~~that:~~Mac ~~they~~issues participation ~~are~~certificates ~~responsible~~backed ~~for~~principally ~~establishing,~~by ~~maintaining~~conventional mortgage ~~and~~loans. ~~regularly~~Freddie ~~evaluating~~Mac guarantees the ~~effectiveness~~timely payment of interest ~~our~~and ~~internal~~the ~~control~~ultimate ~~over~~return ~~financial~~of ~~reporting;~~principal ~~they~~on participation ~~have~~ certificates. ~~made~~Fannie ~~certain~~Mae ~~disclosures~~is toa ~~our~~private ~~auditors~~corporation ~~and~~chartered by the ~~audit~~U.S. Congress ~~committee~~with ofa ~~the~~mandate ~~Board~~to ofestablish ~~Directors~~a ~~about~~secondary market ~~our~~for ~~internal~~mortgage ~~control~~loans. ~~over~~Fannie ~~financial~~Mae ~~reporting;~~guarantees ~~and~~the ~~they~~timely payment ~~have~~of ~~included~~principal ~~information~~and ininterest ~~our~~on ~~quarterly~~Fannie ~~and~~Mae ~~annual~~securities. Freddie ~~reports~~Mac ~~about~~and ~~their~~Fannie ~~evaluation~~Mae ~~and~~securities ~~whether~~are ~~there~~not ~~have~~backed ~~been~~by ~~changes~~the infull faith ~~our~~and ~~internal~~credit ~~control~~of ~~over~~the ~~financial~~U.S. Government. ~~reporting~~In orSeptember in2008, the ~~other~~Federal ~~factors~~Housing ~~that~~Finance ~~could~~Agency ~~materially~~was ~~affect~~appointed ~~internal~~as ~~control~~conservator of ~~over~~Fannie ~~financial~~Mae ~~reporting~~and Freddie Mac. WeThe ~~will~~U.S. Department beof ~~subject~~the Treasury agreed to ~~the~~provide ~~requirements~~capital ofas ~~Section~~needed ~~404(b)~~to ofensure ~~the~~that Fannie ~~Sarbanes-Oxley~~Mae ~~Act~~and ~~beginning~~Freddie ~~with the~~Mac ~~fiscal~~continue ~~year~~to ~~ending~~provide ~~June~~liquidity ~~30,~~to ~~2010~~the housing and mortgage markets.

~~Home~~ Mortgage-backed ~~Federal~~securities ~~Bank~~generally yield less than the loans which underlie such securities because of their payment guarantees or credit enhancements which offer nominal credit risk. In addition, mortgage-backed securities are more liquid than individual mortgage loans and may be used to collateralize our borrowings or other obligations.

~~General. As~~ The ~~the~~following ~~primary~~table ~~federal~~sets ~~regulator~~forth ~~of Home Federal Bank,~~ the ~~Office~~composition of ~~Thrift Supervision has extensive authority over the operations of federally~~our mortgage-~~chartered~~backed ~~savings~~securities ~~institutions. As~~portfolio ~~part~~at ofeach ~~this authority, Home Federal Bank is required to file periodic reports with the Office~~ of ~~Thrift Supervision and is subject to periodic examinations by~~ the ~~Office~~dates indicated. ofThe ~~Thrift~~amounts ~~Supervision~~reflect ~~and~~ the ~~Federal~~fair ~~Deposit~~value ~~Insurance Corporation. The investment and lending authority~~ of ~~savings~~our mortgage-backed ~~institutions~~securities ~~are~~at ~~prescribed by federal laws and regulations~~June 30, ~~and~~2010 ~~such institutions are prohibited from engaging in any activities not permitted by such laws~~ and ~~regulations~~2009. ~~Such regulation and supervision is primarily intended for the protection of depositors and the Deposit~~ ~~Insurance Fund, formerly the Savings Association Insurance Fund, administered by the Federal Deposit Insurance Corporation.~~

The Office of Thrift Supervision's enforcement authority over all savings institutions and their holding companies includes, among other things, the ability to assess civil money penalties, to issue cease and desist or removal orders and to initiate injunctive actions. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed with the Office of Thrift Supervision.


	June 30,
	2010		2009
	(In thousands)

Fixed rate:
GNMA	$	205	$	251
FHLMC		2,812		14,087
FNMA		58,004		75,301
Total fixed rate		61,021		89,639
Adjustable rate:
GNMA		128		155
FNMA		881		1,013
FHLMC		422		502
Total adjustable-rate		1,431		1,670

Total mortgage-backed securities	$	62,452	$	91,309

Insurance of Accounts. The deposits of Home Federal Bank are insured to the maximum extent permitted by the Deposit Insurance Fund and are backed by the full faith and credit of the U.S. Government. As insurer, the Federal Deposit Insurance Corporation is authorized14 to conduct examinations of, and to require reporting by, insured institutions. It also may prohibit any insured institution from engaging in any activity determined by regulation or order to pose a serious threat to the Federal Deposit Insurance Corporation. The Federal Deposit Insurance Corporation also has the authority to initiate enforcement actions against savings institutions, after giving the Office of Thrift Supervision an opportunity to take such action.

EachTable FDIC insured institution is assigned to one of three capital groups which are based solely on the level of an institution's capital— "well capitalized," "adequately capitalized," and "undercapitalized." These capital levels are defined in the same manner as under the prompt corrective action system discussed below. These three groups are then divided into three subgroups which reflect varying levels of supervisory concern, from those which are considered to be healthy to those which are considered to be of substantial supervisory concern. Assessment rates for insured institutions are determined semi-annually by the Federal Deposit Insurance Corporation and currently range from zero basis points for well-capitalized healthy institutions to 27 basis points for undercapitalized institutions with substantial supervisory concern. As a result of the recent bank failures, however, the FDIC risk-based assessment rate may increase in future periods in order to recapitalize the deposit insurance fund.Contents

16 Information regarding the contractual maturities and weighted average yield of our mortgage-backed securities portfolio at June 30, 2010 is presented below. Due to repayments of the underlying loans, the actual maturities of mortgage-backed securities generally are substantially less than the scheduled maturities. The amounts reflect the fair value of our mortgage-backed securities at June 30, 2010.

In addition, all institutions with deposits insured by the Federal Deposit Insurance Corporation are required to pay assessments to fund interest payments on bonds issued by the Financing Corporation (“FICO”), a mixed-ownership government corporation established to recapitalize the predecessor to the Savings Association Insurance Fund. The FICO assessment rate set for the second quarter of 2009 was 0.0104% of insured deposits and is adjusted quarterly. These assessments will continue until the Financing Corporation bonds mature in 2019.


	Amounts at June 30, 2010 which Mature in
			Weighted			Over One		Weighted					Weighted
	One Year		Average			through		Average			Over		Average
	or Less		Yield			Five Years		Yield			Five Years		Yield
	(In thousands)

Fixed rate:
GNMA	$	8		6.08	%	$	—		—	%	$	197		7.99	%
FHLMC		—		—			—		—			2,812		5.00
FNMA		—		—			—		—			58,004		4.99

Total fixed-rate		8		6.08			—		—			61,013		5.00	%

Adjustable rate:
GNMA		—		—			—		—			128		3.14	%
FNMA		—		—			5		6.41			876		3.26
FHLMC		—		—			—		—			422		3.27

Total adjustable-rate		—		—			5		6.41			1,426		3.25

Total	$	8		6.08	%	$	5		6.41	%	$	62,439		4.93	%

On The ~~May~~following ~~22,~~table ~~2009,~~sets ~~the~~forth Federal Deposit Insurance Corporation announced a one-time special assessment of five basis points on each FDIC-insured depository institution’s assets minus its Tier 1 capital as of June 30, 2009. This special assessment is required to be accrued in the ~~period ended June 30~~purchases, ~~2009~~sales and principal ~~payable~~repayments ~~by September 30, 2009. The special assessment resulted in additional non-interest expense~~ of ~~$65,000 based on~~ our ~~assets~~mortgage-backed ~~and~~securities ~~Tier 1 capital level as of June 30, 2009. In addition,~~ during the ~~Federal~~periods ~~Deposit Insurance Corporation may assess additional special premiums in the future~~indicated.

The Federal Deposit Insurance Corporation may terminate the deposit insurance of any insured depository institution, including Home Federal Bank, if it determines after a hearing that the institution has engaged or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, order or any condition imposed by an agreement with the Federal Deposit Insurance Corporation. It also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance, if the institution has no tangible capital. If insurance of accounts is terminated, the accounts at the institution at the time of the termination, less subsequent withdrawals, shall continue to be insured for a period of six months to two years, as determined by the Federal Deposit Insurance Corporation. Management is aware of no existing circumstances which would result in termination of Home Federal Bank's deposit insurance.


	At or For the
	Year Ended June 30,
	2010			2009
	(Dollars in thousands)

Mortgage-backed securities at beginning of period	$	89,945		$	98,407
Purchases		—			24,253
Repayments		(14,555	)		(13,957	)
Sales		(16,420	)		(19,048	)
Amortizations of premiums and discounts, net		302			290

Mortgage-backed securities at end of period		59,272			89,945

Weighted average yield at end of period		4.95	%		5.09	%

On February 8, 2006, President George W. Bush signed into law legislation that merged the Bank Insurance Fund and the Savings Association Insurance Fund to form the Deposit Insurance Fund, eliminated any disparities in bank and thrift risk-based premium assessments, reduced the administrative burden Sources of ~~maintaining and operating two separate~~Funds funds and established certain new insurance coverage limits and a mechanism for possible periodic increases. The legislation also gave the FDIC greater discretion to identify the relative risks all institutions present to the Deposit Insurance Fund and set risk-based premiums.

~~Major~~ General. Deposits ~~provisions~~are our primary source of funds for lending and other investment purposes. In addition to deposits, principal and interest payments on loans and investment securities are a source of funds. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows are significantly influenced by general interest rates and money market conditions. Borrowings may also be used on a short-term basis to compensate for reductions in the availability ~~legislation~~of ~~include:~~funds from other sources and on a longer-term basis for general business purposes.

· Deposits. We ~~Merging~~attract ~~the~~deposits ~~Savings~~principally ~~Association~~from residents ~~Insurance~~of ~~Fund~~Louisiana and ~~Bank~~particularly ~~Insurance~~from ~~Fund~~Caddo Parish and Bossier Parish. Deposit account terms vary, ~~which~~with ~~became~~the ~~effective~~principal differences ~~March~~being 31the minimum balance required, ~~2006~~the time periods the funds must remain on deposit and the interest rate. We have not solicited deposits from outside Louisiana or paid fees to brokers to solicit funds for deposit. With the introduction of commercial lending in fiscal 2009, we commenced a policy of requiring commercial loan customers to have a deposit account relationship with us. This policy resulted in a significant increase in NOW accounts in fiscal 2010.

· Maintaining basic deposit and municipal account insurance coverage at $100,000 but providing for a new basic insurance coverage for retirement accounts of $250,000. Insurance coverage for basic deposit and retirement accounts could be increased for inflation every five years in $10,000 increments beginning in 2011.15

·Table Providing the FDIC with the ability to set the designated reserve ratio within a range of between 1.15% and 1.50%, rather than maintaining 1.25% at all times regardless of prevailing economic conditions.Contents

· We ~~Providing~~establish ainterest ~~one-time~~rates ~~assessment~~paid, ~~credit~~maturity ofterms, $4service fees and withdrawal penalties on a periodic basis.7 ~~billion~~Management determines tothe ~~banks~~rates and ~~savings~~terms ~~associations~~based inon ~~existence~~rates onpaid ~~December~~by competitors, 31the need for funds or liquidity, ~~1996~~growth goals and federal regulations. ~~The~~We ~~institutions~~attempt ~~qualifying~~to ~~for~~control the ~~credit~~flow ~~may~~of ~~use~~deposits by itpricing our accounts to ~~offset~~remain ~~future~~generally ~~premiums~~competitive with other ~~certain~~financial ~~limitations~~institutions in the market area.

· The ~~Requiring~~following ~~the~~table ~~payment~~shows ofthe ~~dividends~~distribution of, ~~100%~~and ofcertain ~~the~~other information ~~amount~~relating ~~that~~to, ~~the~~our ~~insurance fund exceeds 1.5% of the estimated insured~~ deposits ~~and~~by ~~the~~type ~~payment~~ of ~~50%~~deposit, ofas ~~the amount that the insurance fund exceeds 1.35%~~ of the ~~estimated~~dates ~~insured deposits (when the reserve is greater than 1~~indicated.~~35% but no more than 1.5%).~~


	June 30,
	2010					2009
			Percent of					Percent of
	Amount		Total Deposits			Amount		Total Deposits
	(Dollars in thousands)

Certificate accounts:
0.00% - 0.99%	$	12		0.01	%	$	134		0.14	%
1.00% - 1.99%		30,309		25.75			11,970		13.90
2.00% - 2.99%		16,734		14.22			13,030		15.13
3.00% - 3.99%		17,497		14.86			21,405		24.85
4.00% - 4.99%		7,865		6.68			12,990		15.08
5.00% - 5.99%		1,473		1.25			3,272		3.80

Total certificate accounts		73,890		62.77			62,801		72.90

Transaction accounts:
Savings		5,266		4.47			6,056		7.03
NOW		18,130		15.40			8,537		9.91
Money market		20,436		17.36			8,752		10.16

Total transaction accounts		43,832		37.23			23,345		27.10

Total deposits	$	117,722		100.00	%	$	86,146		100.00	%

~~Regulatory Capital Requirements. Federally insured savings institutions are required to maintain minimum levels of regulatory capital.~~ The ~~Office~~following oftable ~~Thrift~~shows ~~Supervision~~the ~~has~~average ~~established~~balance ~~capital standards consisting~~ of aeach ~~"tangible~~type ~~capital requirement," a "leverage~~of ~~capital~~ deposit ~~requirement"~~ and "athe ~~risk-based~~average ~~capital~~rate ~~requirement." The~~paid ~~Office~~on ofeach ~~Thrift~~type ~~Supervision also is authorized to impose capital requirements in excess~~ of ~~these~~deposit ~~standards~~for the onperiods ~~individual institutions on a case-by-case basis~~indicated.

Current Office of Thrift Supervision capital standards require savings institutions to satisfy the following capital requirements:


	Year Ended June 30,
	2010							2009
					Average							Average
	Average		Interest		Rate			Average		Interest		Rate
	Balance		Expense		Paid			Balance		Expense		Paid
	(Dollars in thousands)

Savings	$	5,588	$	23		0.41	%	$	5,653	$	26		0.46	%
NOW		11,523		22		0.19			7,896		21		0.27
Money market		14,377		183		1.27			4,268		38		0.89
Certificates of deposit		67,981		2,010		2.96			61,780		2,378		3.85

Total deposits	$	99,469	$	2,238		2.25	%	$	79,597	$	2,463		3.09	%

~~· tangible capital requirement - "tangible" capital equal to at least 1.5% of adjusted total assets;~~16

·Table leverage capital requirement - "core" capital equal to at least 3.0% of adjusted total assets; andContents

· The ~~risk-based~~following ~~capital~~table ~~requirement~~shows -our ~~"total"~~savings ~~capital~~flows (aduring ~~combination~~the ~~of core and "supplementary" capital) equal to at least 8~~periods indicated.~~0% of "risk-weighted" assets.~~

Core capital generally consists of common stockholders' equity (including retained earnings). Tangible capital generally equals core capital minus intangible assets, with only a limited exception for purchased mortgage servicing rights. Home Federal Bank had no intangible assets at June 30, 2009. Both core and tangible capital are further reduced by an amount equal to a savings institution's debt and equity investments in subsidiaries engaged in activities not permissible to national banks (other than subsidiaries engaged in activities undertaken as agent for customers or in mortgage banking activities and subsidiary depository institutions or their holding companies). These adjustments do not affect Home Federal Bank's regulatory capital.


	Year Ended June 30,
	2010		2009
	(In thousands)

Total deposits at beginning of period	$	86,146	$	78,359
Net deposits (withdrawals)		30,059		6,212
Interest credited		1,517		1,575

Total increase in deposits	$	31,576	$	7,787

In The ~~determining~~following ~~compliance~~table ~~with the risk-based capital requirement~~presents, aby ~~savings~~various ~~institution~~interest israte categories ~~allowed to include both core capital~~ and ~~supplementary capital in its total capital~~maturities, ~~provided that~~ the amount of ~~supplementary~~certificates ~~capital included does not exceed the savings institution's core capital. Supplementary capital generally consists~~ of general allowances for loan losses up to a maximum of 1.25% of risk-weighted assets, together with certain other items. In determining the required amount of risk-based capital, total assets, including certain off-balance sheet items, are multiplied by a risk weight based on the risks inherent in the type of assets. The risk weights range from 0% for cash and securities issued by the U.S. Government or unconditionally backed by the full faith and credit of the U.S. Government to 100%deposit ~~for loans (other than qualifying residential loans weighted~~ at ~~80%)~~June 30, ~~and repossessed assets~~2010.

Savings institutions must value securities available for sale at amortized cost for regulatory capital purposes. This means that in computing regulatory capital, savings institutions should add back any unrealized losses and deduct any unrealized gains, net of income taxes, on debt securities reported as a separate component of GAAP capital.


	Balance at June 30, 2010
	Maturing in the 12 Months Ending June 30,
Certificates of Deposit	2011		2012		2013		Thereafter		Total
	(In thousands)

0.00% - 0.99%	$	12	$	—	$	—	$	—	$	12
1.00% - 1.99%		29,338		971		—		—		30,309
2.00% - 2.99%		3,173		11,359		1,732		471		16,735
3.00% - 3.99%		1,851		1,059		3,728		10,858		17,496
4.00% - 4.99%		3,474		2,932		1,401		58		7,865
5.00% - 5.99%		521		751		201				1,473

Total certificate accounts	$	38,369	$	17,072	$	7,062	$	11,387	$	73,890

At The ~~June~~following ~~30,~~table ~~2009,~~shows ~~Home~~the ~~Federal~~maturities ~~Bank~~of ~~exceeded~~our ~~all~~certificates of deposit ~~its~~in ~~regulatory~~excess ~~capital~~of ~~requirements~~$100,000 ~~with~~at ~~tangible~~June 30, ~~core~~2010 ~~and~~by ~~risk-based~~time remaining ~~capital~~to ~~ratios of 18~~maturity.~~93%, 18.93% and 54.77%, respectively.~~

Any savings institution that fails any of the capital requirements is subject to possible enforcement actions by the Office of Thrift Supervision or the Federal Deposit Insurance Corporation. Such actions could include a capital directive, a cease and desist order, civil money penalties, the establishment of restrictions on the institution's operations, termination of federal deposit insurance and the appointment of a conservator or receiver. The Office of Thrift Supervision's capital regulation provides that such actions, through enforcement proceedings or otherwise, could require one or more of a variety of corrective actions.


			Weighted
Quarter Ending:	Amount		Average Rate
	(Dollars in thousands)

September 30, 2010	$	3,928		2.61	%
December 31, 2010		4,771		1.75
March 31, 2011		1,965		2.36
June 30, 2011		3,663		1.89
After June 30, 2011		9,808		2.96

Total certificates of deposit with balances in excess of $100,000	$	24,135		2.45	%

~~Prompt Corrective Action~~ Borrowings. ~~The~~We ~~following~~may ~~table~~obtain ~~shows~~advances from the Federal ~~amount~~Home ofLoan ~~capital~~Bank ~~associated~~of ~~with~~Dallas upon the ~~different~~security ~~capital~~of ~~categories~~the ~~set~~common stock ~~forth~~we own in ~~the~~that ~~prompt~~bank ~~corrective~~and ~~action~~certain ~~regulations~~of our residential mortgage loans and mortgage-backed and other investment securities, provided certain standards related to creditworthiness have been met. These advances are made pursuant to several credit programs, each of which has its own interest rate and range of maturities. Federal Home Loan Bank advances are generally available to meet seasonal and other withdrawals of deposit accounts and to permit increased lending.

Capital Category	Total Risk-Based Capital	Tier 1 Risk-Based Capital	Tier 1 Leverage Capital
Well capitalized	10% or more	6% or more	5% or more
Adequately capitalized	8% or more	4% or more	4% or more
Undercapitalized	Less than 8%	Less than 4%	Less than 4%
Significantly undercapitalized	Less than 6%	Less than 3%	Less than 3%

As of June 30, 2010, we were permitted to borrow up to an aggregate total of $92.6 million from the Federal Home Loan Bank of Dallas. We had $31.5 million and $36.0 million of Federal Home Loan Bank advances outstanding at June 30, 2010 and 2009, respectively.

In addition, an institution is "critically undercapitalized" if it has a ratio of tangible equity to total assets that is equal to or less than 2.0%. Under specified circumstances, a federal banking agency may reclassify a well capitalized institution as adequately capitalized and may require an adequately capitalized institution17 or an undercapitalized institution to comply with supervisory actions as if it were in the next lower category (except that the Federal Deposit Insurance Corporation may not reclassify a significantly undercapitalized institution as critically undercapitalized).

18Table of Contents

An The ~~institution~~following ~~generally~~table ~~must~~shows ~~file~~certain ainformation ~~written~~regarding capital restoration plan which meets specified requirements within 45 days of the date that the institution receives notice or is deemed to have notice that it is undercapitalized, significantly undercapitalized or critically undercapitalized. A federal banking agency must provideour ~~the~~ borrowings ~~institution~~at ~~with written notice of approval~~ or ~~disapproval~~for ~~within 60 days after receiving a capital restoration plan, subject to extensions by~~ the ~~agency. An~~dates institution which is required to submit a capital restoration plan must concurrently submit a performance guaranty by each company that controls the institution. In addition, undercapitalized institutions are subject to various regulatory restrictions, and the appropriate federal banking agency also may take any number of discretionaryindicated: ~~supervisory actions.~~

At June 30, 2009, Home Federal Bank was deemed a well capitalized institution for purposes of the above regulations and as such is not subject to the above mentioned restrictions.


	At or For the Year
	Ended June 30,
	2010			2009
	(Dollars in thousands)

FHLB advances:
Average balance outstanding	$	35,529		$	35,853
Maximum amount outstanding at any month-end during the period		42,542			41,134
Balance outstanding at end of period		31,507			35,997
Average interest rate during the period		3.43	%		3.84	%
Weighted average interest rate at end of period		3.47	%		3.81	%

~~The~~ At ~~table~~June 30, ~~below~~2010, ~~sets~~$9.6 million ~~forth~~of ~~Home~~our ~~Federal~~borrowings ~~Bank's~~were short-term ~~capital~~(maturities ~~position~~of ~~relative~~one toyear ~~its~~or ~~regulatory~~less). ~~capital~~Such ~~requirements~~short-term borrowings athad ~~June~~a weighted average interest rate of 3.45% at June 30, ~~2009:~~2010.

	Actual					Required for Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions					Excess Over Well-Capitalized Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
Total risk-based capital	$	29,629		54.77	%	$	4,328		8.00	%	$	5,410		10.00	%	$	24,219		81.74	%
Tier 1 risk-based capital		29,163		53.91			2,311		1.50			3,246		6.00			25,917		88.87
Tier 1 leverage Capital		29,163		18.93			4,623		3.00			7,704		5.00			21,459		73.58

The following table shows maturities of Federal Home Loan Bank advances at June 30, 2010, for the years indicated:

Capital Distributions. Office of Thrift Supervision regulations govern capital distributions by savings institutions, which include cash dividends, stock repurchases and other transactions charged to the capital account of a savings institution to make capital distributions. A savings institution must file an application for Office of Thrift Supervision approval of the capital distribution if either (1) the total capital distributions for the applicable calendar year exceed the sum of the institution's net income for that year to date plus the institution's retained net income for the preceding two years, (2) the institution would not be at least adequately capitalized following the distribution, (3) the distribution would violate any applicable statute, regulation, agreement or Office of Thrift Supervision-imposed condition, or (4) the institution is not eligible for expedited treatment of its filings. If an application is not required to be filed, savings institutions which are a subsidiary of a savings and loan holding company (as well as certain other institutions) must still file a notice with the Office of Thrift Supervision at least 30 days before the board of directors declares a dividend or approves a capital distribution.


Years Ended June 30,	Amount
	(In thousands)

2011	$	9,616
2012		11,422
2013		5,907
2014		1,915
2015		236
Thereafter		2,411

Total	$	31,507

Qualified Thrift Lender Test. All savings institutions are required to meet a qualified thrift lender, or QTL, test to avoid certain restrictions on their operations. A savings institution can comply with the QTL test by either qualifying as a domestic building ~~and loan association as defined in the Internal Revenue Code or meeting the Office of Thrift Supervision QTL test.~~ Subsidiaries

~~Currently~~ At June 30, 2010, the ~~Office~~Company ofhad ~~Thrift~~one ~~Supervision~~subsidiary, ~~QTL~~the ~~test~~Bank. The ~~requires that 65% of an institution'~~Bank’s ~~"portfolio~~only ~~assets"~~subsidiary ~~(as~~at ~~defined)~~such ~~consist~~date ofwas ~~certain~~Metro ~~housing~~Financial Services, ~~and consumer-related assets on a monthly average basis in nine out of every 12 months~~Inc. ~~To be a qualified thrift lender under the IRS test~~, ~~the~~an ~~savings institution must meet a "business operations test" and a "60 percent assets test~~inactive," ~~each~~wholly-owned ~~defined in the Internal Revenue Code~~subsidiary.

If the savings institution fails to maintain its QTL status, the holding company's activities are restricted. In addition, it must discontinue any non-permissible business, although the Office of Thrift Supervision may grant a grace period up to two years for good cause. Nonetheless, any company that controls a savings ~~institution that is not a qualified thrift lender must register as a bank holding company within one year of the savings institution's failure to meet the QTL test.~~ Employees

~~Statutory~~ Home ~~penalty~~Federal ~~provisions~~Bank ~~require~~had an39 full-time ~~institution~~employees ~~that~~and 3 part-time ~~fails~~employees toat ~~remain~~June 30, a2010. ~~QTL~~None toof ~~either~~these employees ~~become~~are covered by a ~~national~~collective ~~bank~~bargaining oragreement, beand we ~~prohibited~~believe ~~from~~that ~~the~~we ~~following:~~enjoy good relations with our personnel.

1918

·Table Makingof any new investments or engaging in any new activity not allowed for both a national bank and a savings association;Contents

~~· Establishing any new branch office unless allowable for a national bank; and~~REGULATION

· Set ~~Paying~~forth ~~dividends~~below ~~unless~~is ~~allowable~~a ~~for~~brief adescription ~~national~~of ~~bank~~certain laws relating to the regulation of Home Federal Bancorp, Home Federal Mutual Holding Company and Home Federal Bank. This description does not purport to be complete and is qualified in its entirety by reference to applicable laws and regulations.

~~Three years from the date a savings association should have become or ceases to be a QTL, by failing to meet either QTL test, the institution must comply with the following restriction:~~ General

· Home ~~Dispose~~Federal Bank, as a federally chartered savings bank, is subject to federal regulation and oversight by the Office of Thrift ~~any~~Supervision ~~investment~~extending orto ~~not~~all ~~engage~~aspects inof ~~any~~its ~~activity~~operations. Home ~~unless~~Federal Bank also is subject to regulation and examination by the Federal Deposit Insurance Corporation, which insures the deposits of Home Federal Bank to the maximum extent permitted by law, and requirements established by the Federal Reserve Board. Federally chartered savings institutions are required to file periodic reports with the Office of Thrift Supervision and are subject to periodic examinations by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation. The investment orand ~~activity~~lending authority of savings institutions is prescribed ~~allowed~~by ~~for~~federal ~~both~~laws aand ~~national~~regulations, ~~bank~~and such institutions are prohibited from engaging in any activities not permitted by such laws and aregulations. ~~savings~~Such ~~association~~regulation and supervision primarily are intended for the protection of depositors and not for the purpose of protecting shareholders.

At Federal ~~June~~law 30provides the federal banking regulators, ~~2009~~including the Office of Thrift Supervision and Federal Deposit Insurance Corporation, with substantial enforcement powers. The Office of Thrift Supervision’s enforcement authority over all savings institutions and their holding companies includes, among other things, the ~~qualified~~ability ~~thrift~~to ~~investments~~assess civil money penalties, to issue cease and desist or removal orders and to initiate injunctive actions. In general, these enforcement actions may be initiated for violations of ~~Home~~laws ~~Federal~~and ~~Bank~~regulations ~~were~~and ~~approximately~~unsafe 95or unsound practices.~~15%~~ Other actions or inactions may provide the basis for enforcement action, including misleading or untimely reports filed with the Office of ~~its~~Thrift ~~portfolio~~Supervision. ~~assets~~Any change in these laws and regulations, whether by the Federal Deposit Insurance Corporation, Office of Thrift Supervision or Congress, could have a material adverse impact on Home Federal Mutual Holding Company, Home Federal Bancorp and Home Federal Bank and our operations.

~~Affiliate~~ Under ~~Transaction Restrictions. Federal laws strictly limit~~ the ~~ability~~recently ofenacted ~~savings~~Dodd-Frank ~~institutions~~Wall toStreet ~~engage~~Reform inand Consumer ~~transactions~~Protection ~~with their affiliates~~Act, ~~including~~the ~~their~~powers ~~savings~~of ~~and loan holding companies. Except for certain exceptions set forth in~~ the Office of Thrift Supervision ~~regulations,~~regarding aHome ~~savings~~Federal ~~association~~Bank, ~~must~~Home ~~comply~~Federal ~~with~~Mutual Holding ~~sections~~Company ~~23A~~ and ~~23B~~Home ~~of the~~ Federal ~~Reserve~~Bancorp ~~Act~~will ~~and~~transfer ~~Regulation~~to Wother federal ~~which~~financial ~~implements~~institution ~~those~~regulatory ~~statutory~~agencies ~~provisions. Those~~on July 21, ~~statutory~~2011, ~~and~~unless ~~regulatory~~extended ~~provisions~~up ~~apply~~ to ~~transactions~~an ~~between~~additional asix months. ~~subsidiary~~See ~~institution~~“— Recently ~~and~~Enacted ~~its~~Regulatory Reform.” ~~parent~~As ~~company~~of or the ~~non-savings~~transfer ~~institution~~date, ~~subsidiaries~~all of the ~~savings~~regulatory functions ~~and~~related ~~loan~~to ~~holding~~Home ~~company~~Federal ~~and~~Bank that are ~~limited~~currently tounder the ~~10%~~jurisdiction of athe ~~savings~~Office ~~institution's~~of ~~capital~~Thrift ~~and~~Supervision ~~surplus~~will transfer ~~and,~~to ~~with~~the ~~respect~~Office toof ~~such~~the ~~parent~~Comptroller ~~company~~of ~~and~~the ~~all~~Currency. ~~such non-savings~~In ~~institution subsidiaries~~ addition, toas ~~an aggregate~~ of ~~20%~~that ofsame ~~the savings institution's capital and surplus. Further~~date, ~~loans~~all ~~and extensions~~ of ~~credit~~the ~~generally~~regulatory ~~are~~functions related ~~required~~ to beHome ~~secured by eligible collateral in specified amounts.~~ Federal ~~law~~Bancorp ~~also requires that all transactions between a savings institution~~ and ~~its~~Home ~~affiliates~~Federal beMutual onHolding Company, ~~terms~~ as ~~favorable to the~~ savings ~~institution~~and asloan ~~transactions~~holding ~~with~~companies ~~non-affiliates. Home Federal Bank believes~~ that ~~all~~are currently ~~transactions~~under ~~between~~the itjurisdiction ~~and~~of ~~its~~the ~~affiliates at~~Office ~~June~~of 30Thrift Supervision, ~~2009~~will ~~were~~transfer ~~on terms as favorable~~ to itthe asFederal ~~its~~Reserve ~~transactions with non-affiliates~~Board.

Privacy Requirements of the Gramm-Leach-Bliley Act. The Gramm-Leach-Bliley Act of 1999 provided for sweeping financial modernization for commercial banks, savings banks, securities firms, insurance companies, and other financial institutions operating in the United States. ~~Among~~ Recently Enacted ~~other~~Regulatory provisions, the Gramm-Leach-Bliley Act places limitations on the sharing of consumer financial information with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution's privacy policy and provide such customers the opportunity to "opt out" of the sharing of personal financial information with unaffiliated third parties.Reform

~~Anti-Money Laundering.~~ On ~~October 26~~July 21, ~~2001~~2010, ~~in response to~~ the ~~events of September 11, 2001, the~~ President ~~of the United States~~ signed into law the Dodd-Frank ~~Uniting~~Wall ~~and~~Street ~~Strengthening~~Reform ~~America by Providing Appropriate Tools Required to Intercept~~ and ~~Obstruct~~Consumer ~~Terrorism~~Protection Act. ~~of 2001~~The ~~(referred~~ financial toreform asand ~~the~~consumer ~~USA~~protection ~~PATRIOT~~act ~~Act). The~~imposes ~~USA~~new restrictions ~~PATRIOT~~and ~~Act~~an ~~significantly~~expanded ~~expands~~framework ~~the~~of ~~responsibilities~~regulatory ofoversight for financial institutions, including ~~savings~~depository ~~and~~institutions. In ~~loan associations~~addition, inthe ~~preventing~~new law changes the ~~use~~jurisdictions of ~~the~~existing bank ~~U.S.~~regulatory ~~financial~~agencies ~~system~~and toin ~~fund~~particular ~~terrorist~~transfers ~~activities.~~the regulation ~~Title~~of ~~III~~federal ofsavings associations from the ~~USA~~Office ~~PATRIOT~~of Thrift ~~Act~~Supervision ~~provides~~to ~~for~~the aOffice ~~significant~~of ~~overhaul~~Comptroller of the ~~U.S.~~Currency, effective ~~anti-money~~one ~~laundering~~year ~~regime.~~from ~~Among~~the ~~other~~effective ~~provisions,~~date itof ~~requires~~the ~~financial~~legislation, with ~~institutions~~a ~~operating~~potential inextension ~~the~~up ~~United States~~ to ~~develop~~six ~~new~~months. ~~anti-money~~Savings ~~laundering~~and ~~compliance programs,~~loan ~~due~~ holding ~~diligence~~companies ~~policies~~will ~~and~~be ~~controls~~regulated toby ~~ensure~~ the ~~detection~~Federal ~~and reporting of money laundering~~Reserve Board. ~~Such~~The ~~compliance~~new ~~programs~~law ~~are~~also ~~intended~~establishes toan ~~supplement~~independent ~~existing~~federal consumer ~~compliance~~protection ~~requirements,~~bureau ~~also~~within ~~applicable~~the toFederal ~~financial~~Reserve ~~institutions,~~Board. ~~under~~The following ~~the~~discussion ~~Bank~~summarizes ~~Secrecy~~significant ~~Act~~aspects ~~and~~of the ~~Office~~new law ofthat ~~Foreign~~may ~~Assets~~affect ~~Control~~Home ~~Regulations. We~~Federal ~~have~~Bank, ~~established~~Home ~~policies~~Federal Mutual Holding Company and ~~procedures~~Home toFederal ~~ensure~~Bancorp. ~~compliance~~Regulations implementing ~~with~~these ~~the~~changes ~~USA~~have ~~PATRIOT~~not ~~Act's~~been ~~provisions~~promulgated, ~~and~~so ~~the~~we cannot ~~impact~~determine of the ~~USA~~full ~~PATRIOT~~impact ~~Act~~ on our ~~operations~~business ~~has~~and ~~not~~operations at ~~been~~this ~~material~~time.

~~Emergency Economic Stabilization Act of 2008.~~ The ~~U.S.~~following ~~Congress~~aspects ~~adopted, and on October 3, 2008, President George W. Bush signed, the Emergency Economic Stabilization Act~~ of ~~2008 which authorized~~ the ~~United States Department of Treasury, to purchase from~~ financial ~~institutions and~~reform ~~their holding companies up to $700 billion in mortgage loans, mortgage-related securities~~ and certain other financial instruments, including debt and equity securities issued by financial institutions and their holding companies in a troubled asset relief program. The purpose of the troubled asset relief program is to restore confidence and stability to the U.S. banking system and to encourage financial institutions to increase their lending to customers and to each other. The troubledconsumer ~~asset~~ protection ~~relief~~act ~~program~~are isrelated ~~also expected~~ to ~~include direct purchases or guarantees of troubled assets of financial institutions. The Treasury Department has allocated $250 billion towards a capital purchase program. Under~~ the ~~capital~~operations purchase program, the Treasury Department will purchase debt or equity securities from participating institutions. We have elected not to participate in the capital purchase program primarily as a result of ~~our~~Home ~~mutual-to-stock conversion completed in~~Federal ~~January 2005.~~ Bank:

20• The Office of Thrift Supervision will be merged into the Office of the Comptroller of the Currency and the authority of the other remaining bank regulatory agencies restructured. The federal thrift charter will be preserved under the jurisdiction of the Office of the Comptroller of the Currency. • A new independent consumer financial protection bureau will be established within the Federal Reserve Board, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like Home Federal Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws. • Tier 1 capital treatment for “hybrid” capital items like trust preferred securities is eliminated subject to various grandfathering and transition rules. • The current prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011. • State law is preempted only if it would have a discriminatory effect on a federal savings association or is preempted by any other federal law. The Office of the Comptroller of the Currency must make a

The Federal Deposit Insurance Corporation increased deposit insurance on most accounts from $100,000 to $250,000, until the end of 2013. In addition, the Federal Deposit Insurance Corporation has implemented two temporary programs to provide deposit insurance for the full amount19 of most non-interest bearing transaction deposit accounts through June 30, 2010 and to guarantee certain unsecured debt of financial institutions and their holding companies through June 2012. For non-interest bearing transaction deposit accounts, including accounts swept from a non-interest bearing transaction account into a non-interest bearing savings deposit account, a 10 basis point annual rate surcharge will be applied to deposit amounts in excess of $250,000. We opted not to participate in these programs.

FederalTable Home Loan Bank System. Home Federal Bank is a member of the Federal Home Loan Bank of Dallas, which is one of 12 regional Federal Home Loan Banks that administers the home financing credit function of savings institutions. Each Federal Home Loan Bank serves as a reserve or central bank for its members within its assigned region. It is funded primarily from proceeds derived from the sale of consolidated obligations of the Federal Home Loan Bank System. It makes loans to members (i.e., advances) in accordance with policies and procedures established by the Board of Directors of the Federal Home Loan Bank. At June 30, 2009, Home Federal Bank had $36.0 million of Federal Home Loan Bank advances.Contents

Aspreemption adetermination ~~member,~~on ~~Home~~a ~~Federal~~case-by-case ~~Bank~~basis iswith ~~required~~respect to ~~purchase~~a ~~and~~particular ~~maintain~~state ~~stock~~law ~~in the Federal Home Loan Bank of Dallas in an amount equal to at least 1% of its aggregate unpaid residential mortgage loans~~ or ~~similar~~other ~~obligations~~state atlaw ~~the~~with ~~beginning~~substantively ofequivalent ~~each year~~terms. ~~At June 30, 2009, Home Federal Bank had $1,806,400 in Federal Home Loan Bank stock, which was in compliance with this requirement.~~

~~The~~• ~~Federal~~Deposit ~~Home~~insurance ~~Loan~~is ~~Banks~~permanently ~~are~~increased ~~required~~ to ~~provide~~$250,000 ~~funds~~and unlimited deposit insurance for ~~the~~noninterest-bearing ~~resolution~~transaction ofaccounts ~~troubled~~extended ~~savings~~through ~~institutions~~January ~~and~~1, to2013. ~~contribute~~• toDeposit ~~affordable~~insurance ~~housing~~assessment ~~programs~~base ~~through~~calculation ~~direct~~will ~~loans~~equal orthe ~~interest~~depository ~~subsidies~~institution’s ontotal ~~advances~~assets ~~targeted~~minus ~~for~~the ~~community~~sum ~~investment~~of ~~and~~its ~~low-~~average ~~and~~tangible ~~moderate-income~~equity ~~housing~~during ~~projects~~the assessment period. ~~These~~ ~~contributions~~• ~~have~~The ~~adversely affected~~minimum ~~the~~reserve ~~level~~ratio of ~~Federal~~the ~~Home~~Deposit ~~Loan~~Insurance ~~Bank~~Fund ~~dividends~~increased ~~paid~~to in1.35 ~~the~~percent ~~past~~of ~~and~~estimated ~~could~~annual doinsured sodeposits inor assessment base; however, the ~~future. These~~Federal ~~contributions~~Deposit ~~also~~Insurance ~~could~~Corporation ~~have~~is andirected ~~adverse~~to “offset the effect” onof the ~~value~~increased ofreserve ~~Federal~~ratio ~~Home~~for ~~Loan~~insured ~~Bank~~depository ~~stock~~institutions inwith ~~the~~total ~~future~~consolidated assets of less than $10 billion.

~~Federal Reserve System.~~ The ~~Federal~~following ~~Reserve~~aspects ~~Board~~of ~~requires~~the ~~all~~financial ~~depository~~reform ~~institutions to maintain reserves against their transaction accounts (primarily NOW~~ and ~~Super~~consumer protection ~~NOW~~act ~~checking~~are ~~accounts)~~related ~~and~~to ~~non-personal time deposits. Because required reserves must be maintained in~~ the ~~form~~operations of ~~vault~~Home ~~cash or a noninterest-bearing account at a~~ Federal Bancorp ~~Reserve~~and ~~Bank, the effect of this reserve requirement is to reduce an institution's earning assets. At June 30, 2009,~~ Home Federal ~~Bank~~Mutual ~~had~~Holding ~~met its reserve requirement.~~Company:

~~TAXATION~~• Authority over savings and loan holding companies will transfer to the Federal Reserve Board. • Leverage capital requirements and risk based capital requirements applicable to depository institutions and bank holding companies will be extended to thrift holding companies. • The Federal Deposit Insurance Act was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries. • The Securities and Exchange Commission is authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board of directors. • Public companies will be required to provide their shareholders with a non-binding vote: (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years. • A separate, non-binding shareholder vote will be required regarding golden parachutes for named executive officers when a shareholder vote takes place on mergers, acquisitions, dispositions or other transactions that would trigger the parachute payments. • Securities exchanges will be required to prohibit brokers from using their own discretion to vote shares not beneficially owned by them for certain “significant” matters, which include votes on the election of directors, executive compensation matters, and any other matter determined to be significant. • Stock exchanges, which do not include the OTC Bulletin Board, will be prohibited from listing the securities of any issuer that does not have a policy providing for (i) disclosure of its policy on incentive compensation payable on the basis of financial information reportable under the securities laws, and (ii) the recovery from current or former executive officers, following an accounting restatement triggered by material noncompliance with securities law reporting requirements, of any incentive compensation paid erroneously during the three-year period preceding the date on which the restatement was required that exceeds the amount that would have been paid on the basis of the restated financial information. • Disclosure in annual proxy materials will be required concerning the relationship between the executive compensation paid and the financial performance of the issuer. • Item 402 of Regulation S-K will be amended to require companies to disclose the ratio of the Chief Executive Officer’s annual total compensation to the median annual total compensation of all other employees. • Smaller reporting companies are exempt from complying with the internal control auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

~~Federal Taxation~~20

General. HomeTable Federal Bancorp, Home Federal Mutual Holding Company and Home Federal Bank are subject to federal income taxation in the same general manner as other corporations with some exceptions listed below. The following discussion of federal, state and local income taxation is only intended to summarize certain pertinent income tax matters and is not a comprehensive description of the applicable tax rules. Home Federal Bank's federal and state income tax returns for taxable years through December 31, 2005 have been closed for purposes of examination by the Internal Revenue Service or the Louisiana Department of Revenue. As a result, all tax returns through that date may no longer be audited by either tax authority.Contents

~~Method~~ Regulation of ~~Accounting. For federal income tax purposes,~~ Home Federal ~~Bank~~Bancorp ~~reports income~~ and ~~expenses~~Home onFederal ~~the~~Mutual ~~accrual method of accounting.~~Holding Company

~~Bad~~ Upon ~~Debt~~completion ~~Reserves. The~~of ~~Small~~the ~~Business~~conversion ~~Job~~and ~~Protection~~offering, ~~Act~~Home ofFederal Bancorp, ~~1996 eliminated~~ the ~~use~~proposed ofnew ~~the~~holding ~~reserve~~company ~~method~~which ofis ~~accounting~~a ~~for~~Louisiana corporation, ~~bad~~will ~~debt~~be ~~reserves~~a byregistered savings ~~associations,~~and ~~effective~~loan ~~for~~holding company ~~taxable~~within ~~years~~the ~~beginning~~meaning ~~after~~of ~~1995. Prior~~Section 10 toof ~~that~~the ~~time,~~ Home ~~Federal Bank was~~ ~~permitted~~ Owners’ toLoan ~~establish~~Act ~~a reserve for bad debts~~ and towill ~~make~~be ~~additions~~subject to ~~the~~Office ~~reserve. These~~of ~~additions~~Thrift Supervision ~~could,~~examination ~~within~~and ~~specified~~supervision ~~formula~~as ~~limits,~~well beas ~~deducted~~certain reporting inrequirements. ~~arriving~~The atexisting ~~taxable~~federally ~~income. As~~chartered aholding company, ~~result~~which ofalso ~~the~~is ~~Small~~named ~~Business~~Home ~~Job~~Federal ~~Protection~~Bancorp, ~~Act~~currently ofis a ~~1996,~~registered savings ~~associations~~and ~~must~~loan ~~use~~holding ~~the~~company. ~~experience~~In ~~method~~addition, because inHome ~~computing~~Federal ~~their~~Bank ~~bad~~is ~~debt~~a ~~deduction~~subsidiary ~~beginning~~of ~~with~~a ~~their~~savings ~~1996~~and ~~federal~~loan holding ~~tax~~company, ~~return. In~~it ~~addition~~is, ~~federal~~and ~~legislation~~will ~~required~~continue ~~the~~to ~~recapture~~be, ~~over~~subject ~~a six year period of the excess of tax~~to ~~bad~~ certain ~~debt~~restrictions ~~reserves~~in atdealing ~~December~~with ~~31,~~us ~~1995~~and ~~over~~with ~~those~~other ~~established~~persons affiliated aswith ofthe ~~December 31, 1987~~Bank.

21 Holding Company Acquisitions. Home Federal Bancorp and Home Federal Mutual Holding Company are savings and loan holding companies under the Home Owners’ Loan Act, as amended, and are registered with the Office of Thrift Supervision. The proposed new holding company will also be required to register as a savings and loan holding company after the conversion and offering. Federal law generally prohibits a savings and loan holding company, without prior Office of Thrift Supervision approval, from acquiring the ownership or control of any other savings institution or savings and loan holding company, or all, or substantially all, of the assets or more than 5% of the voting shares of the savings institution or savings and loan holding company. These provisions also prohibit, among other things, any director or officer of a savings and loan holding company, or any individual who owns or controls more than 25% of the voting shares of such holding company, from acquiring control of any savings institution not a subsidiary of such savings and loan holding company, unless the acquisition is approved by the Office of Thrift Supervision.

~~Taxable~~ The ~~Distributions~~Office ~~and~~of ~~Recapture. Prior~~Thrift toSupervision ~~the~~may ~~Small~~not ~~Business~~approve ~~Job~~any ~~Protection~~acquisition that ~~Act~~would ofresult ~~1996,~~in ~~bad~~a ~~debt~~multiple ~~reserves~~savings ~~created~~and ~~prior~~loan toholding ~~January~~company controlling 1,savings ~~1988~~institutions ~~were~~in ~~subject~~more tothan ~~recapture~~one ~~into~~state, ~~taxable~~subject to ~~income~~two ifexceptions: ~~Home~~(1) the ~~Federal~~approval ~~Bank~~of ~~failed~~interstate supervisory toacquisitions ~~meet~~by ~~certain~~savings ~~thrift asset~~ and ~~definitional~~loan ~~tests. New~~holding companies; ~~federal~~ and ~~legislation~~(2) the ~~eliminated~~acquisition ~~these~~of a savings ~~association~~institution ~~related~~in ~~recapture~~another state ~~rules. However,~~if ~~under~~the ~~current~~laws ~~law,~~of ~~pre-1988~~the ~~reserves~~state ~~remain~~of ~~subject~~the totarget ~~recapture~~savings ~~should~~institution specifically ~~Home~~permit ~~Federal~~such ~~Bank~~acquisitions. ~~make~~The ~~certain~~states ~~non-dividend~~vary ~~distributions~~in orthe extent ~~cease~~ to ~~maintain~~which athey ~~bank~~permit ~~charter~~interstate savings and loan holding company acquisitions.

At Restrictions ~~June~~Applicable ~~30,~~to ~~2009,~~Home ~~the~~Bancorp ~~total~~and ~~federal~~Home ~~pre-1988~~Federal Mutual ~~reserve~~Holding ~~was~~Company. Because ~~approximately~~Home ~~$3.3~~Federal Bancorp ~~million. The~~and ~~reserve~~Home ~~reflects~~Federal ~~the~~Mutual ~~cumulative~~Holding ~~effects~~Company ofoperate under federal ~~tax~~charters ~~deductions~~issued by the Office of Thrift Supervision under Section 10(o) of the Home ~~Federal~~Owners’ ~~Bank~~Loan ~~for~~Act, ~~which~~they are nopermitted ~~federal~~to ~~income~~engage ~~tax~~only ~~provisions~~in ~~have~~the ~~been~~following ~~made.~~activities:

~~Alternative~~• ~~Minimum~~investing ~~Tax. The~~in ~~Internal~~the ~~Revenue~~stock ~~Code~~of ~~imposes~~a ansavings ~~alternative~~institution; ~~minimum~~• ~~tax~~acquiring at a ~~rate~~mutual ofassociation ~~20%~~through onthe amerger ~~base~~ of ~~regular~~such ~~taxable~~association ~~income~~into ~~plus~~a ~~certain~~savings ~~tax~~institution ~~preferences. The~~subsidiary ~~alternative~~of ~~minimum~~such ~~tax~~holding iscompany ~~payable~~or toan ~~the~~interim ~~extent~~savings ~~such~~institution ~~alternative~~subsidiary ~~minimum~~of ~~tax~~such ~~income~~holding ~~is in~~company; ~~excess~~• ofmerging ~~the~~with ~~regular~~or ~~income~~acquiring ~~tax. Net~~another ~~operating~~holding ~~losses~~company, one of ~~which~~whose ~~Home~~subsidiaries ~~Federal~~is ~~Bank~~a ~~has~~savings ~~none,~~institution; ~~can~~• ~~offset~~investing noin ~~more~~a ~~than~~corporation, ~~90%~~the capital stock of ~~alternative~~which ~~minimum~~is ~~taxable~~available ~~income.~~for ~~Certain~~purchase ~~payments~~by ofa ~~alternative~~savings ~~minimum~~institution ~~tax~~under ~~may~~federal belaw ~~used~~or asunder ~~credits~~the ~~against~~law ~~regular~~of ~~tax~~any ~~liabilities~~state inwhere ~~future~~the ~~years. Home~~subsidiary ~~Federal~~savings ~~Bank~~institution ~~has~~or ~~not~~association ~~been~~is ~~subject~~located; toand • the ~~alternative~~permissible ~~minimum~~activities ~~tax~~described orbelow ~~any~~for ~~such~~non-grandfathered ~~amounts~~savings ~~available~~and asloan ~~credits~~holding ~~for carryover~~companies.

~~Net~~ Generally, ~~Operating~~companies ~~Loss~~that ~~Carryovers.~~become ~~For~~savings ~~net~~and ~~operating~~loan ~~losses~~holding companies infollowing ~~tax~~the ~~years~~May 4, ~~beginning~~1999 ~~before~~grandfather ~~August~~date 6,in ~~1997,~~the Gramm-Leach-Bliley ~~Home~~Act ~~Federal~~of ~~Bank~~ 1999 may ~~carry~~engage ~~back~~only ~~net~~in ~~operating~~the activities ~~losses~~permitted tofor ~~the~~financial ~~three~~institution ~~years~~holding ~~preceding~~companies or ~~the~~for ~~loss~~multiple ~~year~~savings and ~~then~~loan ~~forward~~holding companies. Multiple savings and loan holding companies are permitted to ~~fifteen~~engage ~~years~~in the following ~~the~~activities: ~~loss~~(i) activities ~~years. For~~permitted ~~net~~for ~~operating~~a ~~losses~~ bank inholding ~~years~~company ~~beginning~~under ~~after~~section 4(c) ~~August~~of 5,the ~~1997,~~Bank ~~net~~Holding Company ~~operating~~Act ~~losses~~(unless ~~can~~the beDirector ~~carried~~of ~~back~~the toOffice ~~the~~of ~~two~~Thrift Supervision ~~years~~prohibits ~~preceding~~or ~~the~~limits ~~loss~~such ~~year~~4(c) ~~and~~activities); (ii) furnishing ~~forward~~or toperforming ~~the~~management 20services ~~years~~for ~~following~~a subsidiary ~~the~~savings ~~loss~~association; ~~year. At~~(iii) conducting ~~June~~any insurance ~~30,~~agency ~~2009~~or escrow business; (iv) holding, managing, ~~Home~~or ~~Federal~~liquidating ~~Bank~~assets ~~had~~owned noby ~~net~~or ~~operating~~acquired ~~loss~~from ~~carry~~a subsidiary ~~forwards~~savings ~~for~~association; ~~federal~~(v) holding ~~income~~or ~~tax~~managing properties ~~purposes.~~used or occupied by a subsidiary savings association; (vi) acting as trustee

Corporate Dividends-Received Deduction. Home Federal Bancorp may exclude from its income 100% of dividends received from Home Federal Bank as a member of the same affiliated group of corporations. The corporate dividends received deduction is 80% in the case21 of dividends received from corporations which a corporate recipient owns less than 80%, but at least 20% of the distribution corporation. Corporations which own less than 20% of the stock of a corporation distributing a dividend may deduct only 70% of dividends received.

StateTable Taxationof Contents

~~Home~~ under ~~Federal~~deeds ~~Bancorp~~of istrust; ~~subject~~or to(vii) activities ~~the~~authorized ~~Louisiana~~by regulation ~~Corporation~~as ~~Income~~of ~~Tax~~March 5, ~~based~~1987, onto ~~our~~be ~~Louisiana~~engaged ~~taxable~~in ~~income. The~~by multiple ~~Corporation~~savings ~~Income~~and ~~Tax~~loan ~~applies~~holding atcompanies. ~~graduated~~Although ~~rates~~savings and ~~from~~loan 4%holding ~~upon~~companies ~~the~~are ~~first~~not ~~$25,000~~currently ofsubject ~~Louisiana~~to ~~taxable~~specific capital ~~income~~requirements toor 8%specific restrictions on ~~all~~the ~~Louisiana~~payment ~~taxable~~of dividends ~~income~~or inother ~~excess~~capital ~~of $200~~distributions,~~000. For~~ ~~these~~federal ~~purposes,~~regulations ~~"Louisiana~~do ~~taxable~~ prescribe ~~income"~~such ~~means~~restrictions ~~net~~on ~~income~~subsidiary ~~which~~savings isinstitutions, as ~~earned~~described bybelow. usHome ~~within~~Federal orBank ~~derived~~will ~~from~~be ~~sources~~required ~~within~~to notify the ~~State~~Office of ~~Louisiana,~~Thrift ~~after~~Supervision ~~adjustments~~30 days ~~permitted~~before ~~under~~declaring any ~~Louisiana~~dividend. ~~law~~In addition, ~~including~~the afinancial ~~federal~~impact ~~income~~of ~~tax~~a ~~deduction. In~~holding company ~~addition,~~on ~~Home~~its ~~Federal~~subsidiary ~~Bank~~institution ~~will~~is bea ~~subject~~matter tothat ~~the~~is evaluated ~~Louisiana~~by ~~Shares~~the ~~Tax~~Office ~~which~~of isThrift ~~imposed~~Supervision onand the ~~assessed~~agency ~~value~~has authority ofto aorder ~~company's~~cessation ~~stock. The~~of ~~formula~~activities ~~for~~or ~~deriving~~divestiture ~~the~~of subsidiaries ~~assessed~~deemed ~~value~~to ispose a threat to ~~calculate~~the ~~15%~~safety and soundness of the ~~sum of:~~institution.

( If a) ~~20%~~mutual holding company or a mutual holding company subsidiary holding company acquires, is acquired by, or merges with another holding company that engages in any impermissible activity or holds any impermissible investment, it has a period of ~~our~~two ~~capitalized~~years ~~earnings~~to cease any non-conforming activities and divest any non-conforming investments. As of the date hereof, ~~plus~~neither Home Federal Mutual Holding Company nor Home Federal Bancorp was engaged in any non-conforming activities and neither had any non-conforming investments.

~~(b)~~ All ~~80%~~savings associations subsidiaries of ~~our~~savings ~~taxable~~and ~~stockholders'~~loan holding ~~equity~~companies are required to meet a qualified thrift lender, ~~minus~~or QTL, test to avoid certain restrictions on their operations. If the subsidiary savings institution fails to meet the QTL, as discussed below, then the savings and loan holding company must register with the Federal Reserve Board as a bank holding company, unless the savings institution requalifies as a QTL within one year thereafter.

Federal Securities Laws. Home Federal Bancorp registered its common stock with the Securities and Exchange Commission under Section 12(cg) ~~50%~~of the Securities Exchange Act of 1934. Home Federal Bancorp is subject to the proxy and tender offer rules, insider trading reporting requirements and restrictions, and certain other requirements under the Securities Exchange Act of 1934. We have filed a registration statement with the Securities and Exchange Commission under the Securities Act of 1933 for our ~~real~~common stock to be issued in the conversion and ~~personal~~offering. ~~property~~If ~~assessment~~our new common stock is listed on the Nasdaq Global Market, our common stock will be deemed registered under Section 12(b) of the Securities and Exchange Act of 1934. Pursuant to Office of Thrift Supervision regulations and our Plan of Conversion and reorganization, we have agreed to maintain such registration for a minimum of three years following the conversion and offering.

~~Various~~ The ~~items~~Sarbanes-Oxley ~~may~~Act. As ~~also~~a bepublic ~~subtracted~~company, Home inFederal ~~calculating~~Bancorp is subject to the Sarbanes-Oxley Act of 2002 which addresses, among other issues, corporate governance, auditing and accounting, executive compensation, and enhanced and timely disclosure of corporate information. As directed by the Sarbanes-Oxley Act, our principal executive officer and principal financial officer are required to certify that our quarterly and annual reports do not contain any untrue statement of a ~~company's~~material ~~capitalized~~fact. ~~earnings~~The rules adopted by the Securities and Exchange Commission under the Sarbanes-Oxley Act have several requirements, including having these officers certify that: they are responsible for establishing, maintaining and regularly evaluating the effectiveness of our internal control over financial reporting; they have made certain disclosures to our auditors and the audit committee of the Board of Directors about our internal control over financial reporting; and they have included information in our quarterly and annual reports about their evaluation and whether there have been changes in our internal control over financial reporting or in other factors that could materially affect internal control over financial reporting.

~~Item~~ Regulation of ~~1A. Risk~~Home ~~Factors~~Federal Bank

~~Not~~ General. Home ~~applicable~~Federal Bank is subject to the regulation of the Office of Thrift Supervision, as its primary federal regulator and the Federal Deposit Insurance Corporation, as the insurer of its deposit accounts, and, to a limited extent, the Federal Reserve Board. Following the conversion and offering, Home Federal Bank will continue to be subject to the rules and regulations of these same regulators.

22 Insurance of Accounts. The deposits of Home Federal Bank are insured to the maximum extent permitted by the Deposit Insurance Fund and are backed by the full faith and credit of the U.S. Government. As insurer, the Federal Deposit Insurance Corporation is authorized to conduct examinations of, and to require reporting by, insured institutions. It also may prohibit any insured institution from engaging in any activity

~~Item 1B. Unresolved Staff Comments~~22

NotTable applicable.of Contents

~~Item~~ determined 2by regulation or order to pose a serious threat to the Federal Deposit Insurance Corporation. ~~Properties~~ The Federal Deposit Insurance Corporation also has the authority to initiate enforcement actions against savings institutions, after giving the Office of Thrift Supervision an opportunity to take such action.

At The ~~June~~recently 30enacted financial institution reform legislation permanently increased deposit insurance on most accounts to $250,000. ~~2009~~In addition, ~~Home~~pursuant to Section 13(c)(4)(G) of the Federal ~~Bank~~Deposit ~~conducted~~Insurance ~~its~~Act, ~~business~~the ~~from~~Federal ~~its~~Deposit ~~headquarters~~Insurance Corporation ~~office,~~has implemented two temporary programs to provide deposit insurance for the full ~~service~~amount ~~branch~~of ~~offices~~most noninterest bearing transaction deposit accounts through the end of 2013 and to ~~one~~guarantee ~~agency~~certain ~~office~~unsecured ~~located~~debt of financial institutions and their holding companies through December 2012. For noninterest bearing transaction deposit accounts, including accounts swept from a noninterest bearing transaction account into a noninterest bearing savings deposit account, a 10 basis point annual rate surcharge is applied to deposit amounts in ~~Shreveport~~excess of $250,000. ~~Louisiana~~Financial institutions could have opted out of either or both of these programs. Home Federal Bank participates in the temporary liquidity guarantee program; however, we do not expect that the assessment surcharge will have a material impact on our results of operation.

The ~~following~~Federal ~~table~~Deposit ~~sets~~Insurance ~~forth~~Corporation’s ~~certain~~risk-based premium ~~information~~system ~~relating~~provides for quarterly assessments. Each insured institution is placed in one of four risk categories depending on supervisory and capital considerations. Within its risk category, an institution is assigned to ~~Home~~an ~~Federal~~initial ~~Bank's~~base assessment ~~offices~~rate which is then adjusted to determine its final assessment rate based on its brokered deposits, secured liabilities and ~~parcel~~unsecured ofdebt. ~~land~~Assessment ~~for~~rates range from seven to 77.5 basis points, with less risky institutions paying lower assessments. In 2009, the Federal Deposit Insurance Corporation collected a ~~future~~five ~~branch~~basis ~~office~~point atspecial assessment on each insured depository institution’s assets minus its Tier 1 capital as of June 30, 2009. The amount of our special assessment, which was paid on September 30, 2009, was $65,000. In 2009, the Federal Deposit Insurance Corporation also required insured deposit institutions on December 30, 2009 to prepay 13 quarters of estimated insurance assessments. Our prepayment totaled $326,000. Unlike a special assessment, this prepayment did not immediately affect bank earnings. Banks will book the prepaid assessment as a non-earning asset and record the actual risk-based premium payments at the end of each quarter. In addition, all institutions with deposits insured by the Federal Deposit Insurance Corporation are required to pay assessments to fund interest payments on bonds issued by the Financing Corporation, a mixed-ownership government corporation established to recapitalize the predecessor to the Deposit Insurance Fund. These assessments will continue until the Financing Corporation bonds mature in 2019.

Description/Address	Leased/Owned	Net Book Value of Property	Amount of Deposits
		(In Thousands)
Building 624 Market Street Shreveport, LA	Owned	$ 172	$ 34,215
Building/ATM 6363 Youree Drive Shreveport, LA	Owned(1)	19	35,327
Building/ATM 8990 Mansfield Road Shreveport, LA	Owned	178	17,850
Agency Office 6425 Youree Drive, Suite 100 Shreveport, LA	Leased	N/A	--
Lot 2 River Crest, Unit #1 Bossier Parish, LA	Owned	436	--

~~______________________~~ Regulatory Capital Requirements. Federally insured savings institutions are required to maintain minimum levels of regulatory capital. Current Office of Thrift Supervision capital standards require savings institutions to satisfy a tangible capital requirement, a leverage capital requirement and a risk-based capital requirement. The tangible capital must equal at least 1.5% of adjusted total assets. Leverage capital, also known as “core” capital, must equal at least 3.0% of adjusted total assets for the most highly rated savings associations. An additional cushion of at least 100 basis points is required for all other savings associations, which effectively increases their minimum Tier 1 leverage ratio to 4.0% or more. Under the Office of Thrift Supervision’s regulation, the most highly-rated banks are those that the Office of Thrift Supervision determines are strong associations that are not anticipating or experiencing significant growth and have well-diversified risk, including no undue interest rate risk exposure, excellent asset quality, high liquidity and good earnings. Under the risk-based capital requested, “total” capital (a combination of core and “supplementary” capital)

~~(1) The building is owned by Home Federal Bank but the land is subject to an operating lease which has been renewed on November 30, 2008 for a five year period.~~23

ItemTable 3. Legalof ProceedingsContents

~~Home~~ must ~~Federal~~equal ~~Bancorp~~at ~~and~~least ~~Home~~8.0% ~~Federal~~of ~~Bank~~“risk-weighted” ~~are~~assets. The ~~not~~Office ~~involved~~of inThrift ~~any~~Supervision ~~pending~~also ~~legal~~is ~~proceedings~~authorized ~~other~~to ~~than~~impose capital ~~nonmaterial~~requirements ~~legal~~in ~~proceedings~~excess ~~occurring~~of inthese ~~the~~standards ~~ordinary~~on ~~course~~individual institutions ofon ~~business~~a case-by-case basis.

~~Item~~ Core 4.capital ~~Submission~~generally consists of ~~Matters~~common stockholders’ equity (including retained earnings). Tangible capital generally equals core capital minus intangible assets, with only a limited exception for purchased mortgage servicing rights. Home Federal Bank had no intangible assets at June 30, 2010. Both core and tangible capital are further reduced by an amount equal to a savings ~~Vote~~institution’s ofdebt ~~Security~~and ~~Holders~~equity investments in subsidiaries engaged in activities not permissible to national banks (other than subsidiaries engaged in activities undertaken as agent for customers or in mortgage banking activities and subsidiary depository institutions or their holding companies). These adjustments do not affect Home Federal Bank’s regulatory capital.

~~Not~~ In ~~applicable~~determining compliance with the risk-based capital requirement, a savings institution is allowed to include both core capital and supplementary capital in its total capital, provided that the amount of supplementary capital included does not exceed the savings institution’s core capital. Supplementary capital generally consists of general allowances for loan losses up to a maximum of 1.25% of risk-weighted assets, together with certain other items. In determining the required amount of risk-based capital, total assets, including certain off-balance sheet items, are multiplied by a risk weight based on the risks inherent in the type of assets. The risk weights range from 0% for cash and securities issued by the U.S. Government or unconditionally backed by the full faith and credit of the U.S. Government to 100% for loans (other than qualifying residential loans weighted at 80%) and repossessed assets.

~~PART~~ Savings IIinstitutions must value securities available for sale at amortized cost for regulatory capital purposes. This means that in computing regulatory capital, savings institutions should add back any unrealized losses and deduct any unrealized gains, net of income taxes, on debt securities reported as a separate component of capital, as defined by generally accepted accounting principles.

~~Item~~ At ~~5. Market~~June 30, ~~for~~2010, ~~Registrant's~~Home ~~Common~~Federal ~~Equity~~Bank exceeded all of its regulatory capital requirements, ~~Related~~with ~~Stockholder~~tangible, ~~Matters~~core and risk-based ~~Issuer~~capital ~~Purchases~~ratios of ~~Equity~~16.47%, ~~Securities~~16.47% and 33.67%, respectively.

~~(a)~~ Any ~~The~~savings ~~information~~institution ~~required~~that ~~herein,~~fails any of the capital requirements is subject to possible enforcement actions by the Office ~~extent~~of ~~applicable~~Thrift Supervision or the Federal Deposit Insurance Corporation. Such actions could include a capital directive, isa cease ~~incorporated~~and bydesist ~~reference~~order, ~~from~~civil ~~page~~money 54penalties, the establishment of ~~Home~~restrictions ~~Federal's~~on ~~2009~~the ~~Annual~~institution’s ~~Report~~operations, termination toof ~~Shareholders~~federal ~~filed~~deposit asinsurance ~~Exhibit~~and 13the ~~hereto~~appointment ~~("2009~~of a ~~Annual~~conservator ~~Report")~~or receiver. The ~~information~~Office ~~for~~of ~~all~~Thrift Supervision’s ~~equity~~capital ~~based~~regulation ~~and~~provides ~~individual~~that ~~compensation~~such actions, ~~arrangements~~through isenforcement ~~incorporated~~proceedings byor ~~reference~~otherwise, ~~from~~could require ~~Item~~one 11or ~~hereof~~more of a variety of corrective actions.

~~(b)~~ Prompt ~~Not~~Corrective ~~applicable~~Action. The following table shows the amount of capital associated with the different capital categories set forth in the prompt corrective action regulations.


	Total Risk-Based	Tier 1 Risk-Based	Tier 1 Leverage
Capital Category	Capital	Capital	Capital

Well capitalized	10% or more	6% or more	5% or more
Adequately capitalized	8% or more	4% or more	4% or more
Undercapitalized	Less than 8%	Less than 4%	Less than 4%
Significantly undercapitalized	Less than 6%	Less than 3%	Less than 3%

~~(c)~~ In ~~The~~addition, ~~following~~an ~~table~~institution ~~represents~~is ~~the~~“critically undercapitalized” ~~repurchasing~~if ~~activity~~it has a ratio of tangible equity to total assets that is equal to or less than 2.0%. Under specified circumstances, a federal banking agency may reclassify a well capitalized institution as adequately capitalized and may require an adequately capitalized institution or an undercapitalized institution to comply with supervisory actions as if it were in the ~~stock~~next ~~repurchase~~lower ~~program~~category ~~during~~(except that the Federal ~~fourth~~Deposit ~~quarter~~Insurance ofCorporation ~~fiscal~~may ~~2009:~~not reclassify a significantly undercapitalized institution as critically undercapitalized).

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
Month #1 April 1, 2009 - April 30, 2009		436	$	6.20		436		118,864
Month #2 May 1, 2009 - May 31, 2009		--		--		--		118,864
Month #3 June 1, 2009 - June 30, 2009		--		--		--		118,864
Total	436		$	6.20		436		118,864

An institution generally must file a written capital restoration plan which meets specified requirements within 45 days of the date that the institution receives notice or is deemed to have notice that it is undercapitalized, significantly undercapitalized or critically undercapitalized. A federal banking agency must

~~Notes to this table:~~24

(a)Table On August 26, 2008, the Company issued a press release announcing that the Board of Directors authorized a stock repurchase program (the "program") on August 13, 2008.Contents

~~(b)~~ provide ~~The~~the ~~Company~~institution ~~was~~with ~~authorized~~written tonotice ~~repurchase~~of ~~10%~~approval or disapproval ~~125~~within 60 days after receiving a capital restoration plan,~~000~~ ofsubject to extensions by the ~~outstanding~~agency. ~~shares~~An institution ~~other~~which ~~than~~is ~~shares~~required ~~held~~to submit a capital restoration plan must concurrently submit a performance guaranty by ~~Home~~each company ~~Federal~~that ~~Mutual~~controls ~~Holding~~the ~~Company~~institution. In addition, undercapitalized institutions are subject to various regulatory restrictions, and the appropriate federal banking agency also may take any number of discretionary supervisory actions.

~~(c)~~ At ~~The~~June 30, ~~program~~2010, ~~does~~Home Federal Bank was deemed a well capitalized institution for purposes of the prompt corrective action regulations and as such is not ~~have~~subject anto ~~expiration~~the ~~date~~above mentioned restrictions.

~~Item~~ Capital 6Distributions. ~~Selected~~Office ~~Financial~~of ~~Data~~Thrift Supervision regulations govern capital distributions by savings institutions, which include cash dividends, stock repurchases and other transactions charged to the capital account of a savings institution to make capital distributions. A savings institution must file an application for Office of Thrift Supervision approval of the capital distribution if either (1) the total capital distributions for the applicable calendar year exceed the sum of the institution’s net income for that year to date plus the institution’s retained net income for the preceding two years, (2) the institution would not be at least adequately capitalized following the distribution, (3) the distribution would violate any applicable statute, regulation, agreement or Office of Thrift Supervision-imposed condition, or (4) the institution is not eligible for expedited treatment of its filings. If an application is not required to be filed, savings institutions which are a subsidiary of a savings and loan holding company (as well as certain other institutions) must still file a notice with the Office of Thrift Supervision at least 30 days before the board of directors declares a dividend or approves a capital distribution.

~~The~~ An ~~information~~institution ~~required~~that byeither ~~this~~before ~~section~~or isafter ~~included~~a inproposed capital distribution fails to meet its then applicable minimum capital requirement or that has been notified that it needs more than normal supervision may not make any capital distributions without the ~~section~~prior ~~titled~~written ~~“Selected~~approval ~~Consolidated~~of ~~Financial~~the ~~Data”~~Office of Thrift Supervision. In addition, the ~~Company’s~~Office ~~2009~~of ~~Annual~~Thrift ~~Report~~Supervision tomay prohibit ~~Shareholders~~a ~~and~~proposed iscapital ~~hereby~~distribution, ~~incorporated~~which ~~herein~~would otherwise be permitted by ~~reference~~Office ~~from~~of ~~exhibit~~Thrift ~~13.0~~Supervision ~~hereto~~regulations, if the Office of Thrift Supervision determines that such distribution would constitute an unsafe or unsound practice.

~~Item~~ Under 7federal rules, an insured depository institution may not pay any dividend if payment would cause it to become undercapitalized or if it is already undercapitalized. ~~Management's~~ ~~Discussion~~In addition, federal regulators have the authority to restrict or prohibit the payment of dividends for safety and ~~Analysis~~soundness reasons. The FDIC also prohibits an insured depository institution from paying dividends on its capital stock or interest on its capital notes or debentures (if such interest is required to be paid only out of ~~Financial~~net ~~Condition~~profits) or distributing any of its capital assets while it remains in default in the payment of any assessment due the FDIC. Alliance Bank is currently not in default in any assessment payment to the FDIC. Pennsylvania law also restricts the payment and ~~Results~~amount of ~~Operations~~dividends, including the requirement that dividends be paid only out of accumulated net earnings.

~~The~~ Qualified ~~information~~Thrift Lender Test. All savings institution subsidiaries of savings and loan holding companies are required ~~herein~~to ismeet ~~incorporated~~a byqualified ~~reference~~thrift ~~from~~lender, ~~pages~~or 3QTL, test to avoid 10certain restrictions on their operations. A savings institution can comply with the QTL test by either qualifying as a domestic building and loan association as defined in the Internal Revenue Code or meeting the Office of Thrift Supervision QTL test. Currently, the ~~2009~~Office ~~Annual~~of ~~Report~~Thrift Supervision QTL test requires that 65% of an institution’s “portfolio assets” (as defined) consist of certain housing and consumer-related assets on a monthly average basis in nine out of every 12 months. To be a qualified thrift lender under the IRS test, the savings institution must meet a “business operations test” and a “60 percent assets test,” each defined in the Internal Revenue Code.

~~Item~~ If ~~7A. Quantitative~~a ~~and~~savings ~~Qualitative~~association ~~Disclosure~~fails ~~About~~to ~~Market~~remain ~~Risk~~a QTL, it is immediately prohibited from the following:

~~Not~~• ~~applicable~~Making any new investments or engaging in any new activity not allowed for both a national bank and a savings association; • Establishing any new branch office unless allowable for a national bank; and • Paying dividends unless allowable for a national bank.

~~Item 8. Financial Statements and Supplementary Data~~25

TheTable information required herein is incorporated by reference from pages 11 to 53 of the 2009 Annual Report.Contents

~~Item~~ Any 9company that controls a savings institution that is not a qualified thrift lender must register as a bank holding company within one year of the savings institution’s failure to meet the QTL test. ~~Changes~~Three years from the date a savings association should have become or ceases to be a QTL, the institution must dispose of any investment or not engage in any activity unless the investment or activity is allowed for both a national bank and ~~Disagreements~~a ~~With~~savings ~~Accountants~~association. onUnder ~~Accounting~~the Dodd-Frank Wall Street Reform and ~~Financial~~Consumer ~~Disclosure~~Protection Act, a savings institution not in compliance with the QTL test is also prohibited from paying dividends and is subject to an enforcement action for violation of the Home Owners’ Loan Act, as amended.

~~Not~~ At ~~applicable~~June 30, 2010, Home Federal Bank believes that it meets the requirements of the QTL test.

24 Community Reinvestment Act. All federal savings associations have a responsibility under the Community Reinvestment Act and related regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. An institution’s failure to comply with the provisions of the Community Reinvestment Act could result in restrictions on its activities. Home Federal Bank received a “satisfactory” Community Reinvestment Act rating in its most recently completed examination.

~~Item~~ Limitations 9Aon Transactions with Affiliates. Transactions between savings associations and any affiliate are governed by Sections 23A and 23B of the Federal Reserve Act as made applicable to savings associations by Section 11 of the Home Owners’ Loan Act. An affiliate of a savings association is any company or entity which controls, is controlled by or is under common control with the savings association. In a holding company context, the holding company of a savings association (Tsuch as Home Federal Bancorp) and any companies which are controlled by such holding company are affiliates of the savings association. Generally, ~~Controls~~Section 23A limits the extent to which the savings association or its subsidiaries may engage in “covered transactions” with any one affiliate to an amount equal to 10% of such association’s capital stock and surplus, ~~Procedures~~and contain an aggregate limit on all such transactions with all affiliates to an amount equal to 20% of such capital stock and surplus. Section 23B applies to “covered transactions” as well as certain other transactions and requires that all transactions be on terms substantially the same, or at least as favorable, to the savings association as those provided to a non-affiliate. The term “covered transaction” includes the making of loans to, purchase of assets from and issuance of a guarantee to an affiliate and similar transactions. Section 23B transactions also include the provision of services and the sale of assets by a savings association to an affiliate. In addition to the restrictions imposed by Sections 23A and 23B, a savings association is prohibited from (i) making a loan or other extension of credit to an affiliate, except for any affiliate which engages only in certain activities which are permissible for bank holding companies, or (ii) purchasing or investing in any stocks, bonds, debentures, notes or similar obligations of any affiliate, except for affiliates which are subsidiaries of the savings association.

In addition, Sections 22(ag) ~~Our~~and ~~management~~(h) of ~~evaluated,~~the ~~with~~Federal Reserve ~~the~~Act ~~participation~~as made applicable to savings associations by Section 11 of ~~our~~the ~~principal~~Home ~~executive~~Owners’ ~~officer~~Loan ~~and~~Act ~~principal~~place restrictions ~~financial~~on ~~officer~~loans to executive officers, ~~the~~directors ~~effectiveness~~and principal shareholders of ~~our~~the ~~disclosure~~savings ~~controls~~association and ~~procedures~~its affiliates. Under Section 22(ash), ~~defined~~loans into ~~Rule~~a ~~13a-15(e)~~director, an executive officer and ~~15d-15(e)~~to ~~under~~a ~~the~~greater ~~Securities~~than ~~Exchange~~10% ~~Act~~shareholder of ~~1934)~~a savings asassociation, ofand ~~the~~certain ~~end~~affiliated interests of ~~the~~either, may ~~period~~not ~~covered~~exceed, bytogether ~~this~~with ~~report.~~all ~~Based~~other onoutstanding loans to such ~~evaluation~~person and affiliated interests, ~~our~~the ~~principal~~savings association’s ~~executive~~loans ~~officer~~to ~~and~~one ~~principal~~borrower ~~financial~~limit ~~officer~~(generally ~~have~~equal to ~~concluded~~15% ~~that~~of ~~our~~the ~~disclosure~~association’s ~~controls~~unimpaired capital and surplus). ~~procedures~~Section 22(h) ~~are~~also ~~designed~~requires that loans to directors, ~~ensure~~executive ~~that~~officers ~~information~~and ~~required~~principal toshareholders be ~~disclosed~~made on byterms ussubstantially the same as offered in comparable transactions to other persons unless the ~~reports~~loans ~~that~~are wemade ~~file~~pursuant to a benefit or ~~submit~~compensation ~~under~~program ~~the~~that ~~Securities~~(i) is ~~Exchange~~widely available ~~Act~~to employees of ~~1934~~the isassociation ~~recorded~~and (ii) does not give preference to any director, ~~processed~~executive officer or principal shareholder, ~~summarized~~or ~~and~~certain ~~reported~~affiliated ~~within~~interests of either, over other employees of the ~~time~~savings ~~periods~~association. ~~specified~~Section 22(h) also inrequires prior board approval for certain loans. In addition, the ~~SEC~~aggregate amount of extensions of credit by a savings association to all insiders cannot exceed the association’s ~~rules~~unimpaired capital and ~~regulations~~surplus. Furthermore, Section 22(g) places additional restrictions on loans to executive officers. Home Federal Bank currently is subject to Section 22(g) and ~~are~~(h) of ~~operating~~the Federal Reserve Act and at June 30, 2010, was in ancompliance ~~effective~~with ~~manner~~the above restrictions.

~~(b)~~ Anti-Money ~~Management’s~~Laundering. All ~~Report~~financial institutions, onincluding ~~Internal~~savings ~~Control~~associations, ~~Over~~are ~~Financial~~subject ~~Reporting~~to federal laws that are designed to prevent the use of the U.S. financial system to fund terrorist activities. Financial

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that,26 in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

InternalTable control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements prepared for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.Contents

~~Under~~ institutions ~~the~~operating ~~supervision~~in ~~and with~~ the ~~participation~~United ofStates ~~management,~~must ~~including~~develop anti-money ~~our~~laundering ~~principal~~compliance ~~executive officer and principal financial officer~~programs, wedue ~~conducted~~diligence policies anand ~~evaluation~~controls ofto ensure the ~~effectiveness~~detection ofand ~~our internal control over financial~~ reporting ~~based~~of money onlaundering. ~~the~~Such ~~framework~~compliance inprograms ~~Internal~~are ~~Control~~intended -to supplement ~~Integrated~~compliance ~~Framework~~requirements, ~~issued~~also byapplicable ~~the~~to ~~Committee~~financial institutions, ofunder ~~Sponsoring Organizations of~~ the ~~Treadway~~Bank ~~Commission.~~Secrecy ~~Based~~Act onand ~~our evaluation under~~ the ~~framework~~Office inof Foreign ~~Internal~~Assets Control -Regulations. ~~Integrated~~Home ~~Framework,~~Federal ~~management~~Bank ~~concluded~~has established ~~that~~policies ~~our~~and ~~internal~~procedures ~~control~~to ~~over~~ensure ~~financial~~compliance ~~reporting~~with these ~~was effective as of June 30, 2009~~provisions.

~~This~~ Federal ~~Annual~~Home ~~Report~~Loan ~~does~~Bank ~~not~~System. Home ~~include~~Federal Bank anis ~~attestation~~a ~~report~~member of the ~~Company’s~~Federal ~~registered~~Home ~~public~~Loan ~~accounting~~Bank ~~firm~~of ~~regarding~~Dallas, ~~internal~~which is ~~control~~one ~~over~~of ~~financial~~12 ~~reporting~~regional Federal Home Loan Banks that administers a home financing credit function primarily for its members. ~~Management’s~~Each Federal ~~report~~Home ~~was~~Loan ~~not~~Bank ~~subject~~serves toas ~~attestation~~a byreserve ~~the~~or ~~Company’s~~central ~~registered~~bank ~~public~~for its ~~accounting~~members ~~firm~~within ~~pursuant~~its toassigned ~~temporary~~region. ~~rules~~The Federal Home Loan Bank of Dallas is funded primarily from proceeds derived from the ~~Securities~~sale of consolidated obligations of the Federal Home Loan Bank System. It makes loans to members (i.e., advances) in accordance with policies and ~~Exchange~~procedures ~~Commission~~established ~~that~~by ~~permit~~the board of directors of the ~~Company~~Federal toHome ~~provide~~Loan ~~only~~Bank. ~~management’s~~At June 30, ~~report~~2010, inHome ~~this~~Federal ~~Annual~~Bank ~~Report~~had $31.5 million of Federal Home Loan Bank advances and $61.1 million available on its credit line with the Federal Home Loan Bank.

~~(c)~~ As Noa ~~change~~member, Home Federal Bank is required to purchase and maintain stock in the ~~Company's~~Federal ~~internal~~Home ~~control~~Loan ~~over~~Bank ~~financial~~of ~~reporting~~Dallas ~~(as~~in ~~defined~~an amount in ~~rules~~accordance ~~13a-15(f)~~with ~~and~~the ~~15d-15(f)~~Federal ~~under~~Home ~~the~~Loan ~~Securities~~Bank’s capital ~~Exchange~~plan ~~Act~~and ofsufficient ~~1934)~~to ~~occurred~~ensure ~~during~~that the ~~most~~Federal ~~recent~~Home ~~fiscal~~Loan Bank ~~quarter~~remains ~~that~~in ~~has~~compliance ~~materially~~with ~~affected~~its minimum capital requirements. At June 30, or2010, isHome ~~reasonably~~Federal ~~likely~~Bank tohad $1.8 million ~~materially~~in ~~affect~~Federal Home Loan Bank stock, ~~its~~which ~~internal~~was ~~control~~in compliance ~~over~~with ~~financial~~the ~~reporting~~applicable requirement.

~~Item~~ The 9BFederal Home Loan Banks are required to provide funds for the resolution of troubled savings institutions and to contribute to affordable housing programs through direct loans or interest subsidies on advances targeted for community investment and low- and moderate-income housing projects. ~~Other~~These contributions ~~Information~~have adversely affected the level of Federal Home Loan Bank dividends paid in the past and could do so in the future. These contributions also could have an adverse effect on the value of Federal Home Loan Bank stock in the future.

~~Not~~ Federal ~~applicable~~Reserve System. The Federal Reserve Board requires all depository institutions to maintain reserves against their transaction accounts (primarily NOW and Super NOW checking accounts) and non-personal time deposits. The required reserves must be maintained in the form of vault cash or an account at a Federal Reserve Bank. At June 30, 2010, Home Federal Bank had met its reserve requirement.

2527

PARTTable IIIof Contents

~~Item 10. Directors, Executive Officers and Corporate Governance~~ TAXATION

The information required herein is incorporated by reference from the sections captioned "Information with Respect to Nominees for Director, Continuing Directors and Executive Officers" and "Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management -Section 16(a) Beneficial ~~Ownership Reporting Compliance" in the Registrant's Proxy Statement to be filed with the Securities and Exchange Commission within 120 days of June 30, 2009 ("Proxy Statement").~~ Federal Taxation

~~Code of Ethics~~ General. Home Federal Bancorp, ~~has~~Home ~~adopted~~Federal Mutual aHolding ~~Code~~Company ofand ~~Ethics~~Home ~~that~~Federal ~~applies~~Bank toare ~~its~~subject ~~principal~~to federal ~~executive~~income ~~officer~~taxation ~~and~~in ~~principal~~the ~~financial~~same ~~officer,~~general asmanner ~~well~~ as ~~directors,~~ other corporations ~~officers~~with ~~and~~some ~~employees~~exceptions oflisted ~~Home~~below. ~~Federal~~The ~~Bancorp~~following discussion of federal and ~~Home~~state ~~Federal~~income ~~Bank. A~~taxation ~~copy~~is ofonly ~~the~~intended to ~~Code~~summarize ofcertain ~~Ethics~~pertinent ~~may~~income betax ~~obtained~~matters ~~without~~and ~~charge~~is ~~upon~~not ~~request~~a comprehensive ~~made~~description toof ~~Clyde~~the D.applicable ~~Patterson,~~tax ~~Home~~rules. Home Federal ~~Bancorp,~~Bank’s ~~Inc.,~~tax ~~624~~returns ~~Market~~have ~~Street,~~not ~~Shreveport,~~been ~~Louisiana~~audited ~~71101~~during the past five years.

~~Item~~ Method 11of Accounting. For ~~Executive~~federal ~~Compensation~~income tax purposes, Home Federal Bank reports income and expenses on the accrual method of accounting and used a June 30 tax year in 2009 for filing its federal income tax return.

Bad Debt Reserves. The ~~information~~Small ~~required~~Business ~~herein~~Job Protection isAct ~~incorporated~~of 1996 eliminated the use of the reserve method of accounting for bad debt reserves by ~~reference~~savings ~~from~~associations, effective for taxable years beginning after 1995. Prior to that time, Home Federal Bank was permitted to establish a reserve for bad debts and to make additions to the ~~section~~reserve. ~~captioned~~These ~~"Management~~additions could, ~~Compensation"~~within specified formula limits, be deducted in arriving at taxable income. As a result of the ~~Proxy~~Small ~~Statement~~Business Job Protection Act of 1996, savings associations must use the experience method in computing their bad debt deduction beginning with their 1996 federal tax return. In addition, federal legislation required the recapture over a six year period of the excess of tax bad debt reserves at December 31, 1995 over those established as of December 31, 1987.

~~Item~~ Taxable 12Distributions and Recapture. ~~Security~~Prior ~~Ownership~~to the Small Business Job Protection Act of ~~Certain~~1996, ~~Beneficial~~bad ~~Owners~~debt ~~and~~reserves created ~~Management~~prior to January 1, 1988 were subject to recapture into taxable income if Home Federal Bank failed to meet certain thrift asset and ~~Related~~definitional ~~Stockholder~~tests. ~~Matters~~New federal legislation eliminated these savings association related recapture rules. However, under current law, pre-1988 reserves remain subject to recapture should Home Federal Bank make certain non-dividend distributions or cease to maintain a bank charter.

~~Security~~ At ~~Ownership~~June 30, of2009, ~~Certain~~the ~~Beneficial~~total ~~Owners~~federal ~~and~~pre-1988 ~~Management. The~~reserve ~~information~~was approximately ~~required~~$3.3 million. ~~herein~~The isreserve ~~incorporated~~reflects bythe cumulative ~~reference~~effects ~~from~~of ~~the~~federal ~~section~~tax ~~captioned~~deductions ~~"Beneficial~~by ~~Ownership~~Home ofFederal Bank ~~Common~~for ~~Stock~~which byno ~~Certain~~federal ~~Beneficial~~income ~~Owners~~tax ~~and Management"~~provisions inhave ~~the~~been ~~Proxy Statement~~made.

~~Equity~~ Alternative ~~Compensation~~Minimum ~~Plan Information~~Tax. The ~~following~~Internal ~~table~~Revenue Code ~~provides~~imposes ~~information~~an asalternative ofminimum ~~June~~tax ~~30,~~at ~~2009~~a ~~with~~rate ~~respect~~of to20% ~~shares~~on a base of ~~common~~regular ~~stock~~taxable ~~that~~income ~~may~~plus becertain ~~issued~~tax ~~under~~preferences. ~~our~~The alternative ~~existing~~minimum ~~equity~~tax ~~compensation~~is ~~plans,~~payable ~~which~~to ~~consist~~the extent such alternative minimum tax income is in excess of the regular ~~2005~~ income ~~Stock~~tax. ~~Option~~Net ~~Plan~~operating ~~and~~losses, ~~2005~~of ~~Recognition~~which ~~and~~Home ~~Retention~~Federal ~~Plan~~Bank has none, ~~both~~can offset no more than 90% of ~~which~~alternative ~~were~~minimum ~~approved~~taxable income. byCertain ~~our~~payments ~~shareholders~~of alternative minimum tax may be used as credits against regular tax liabilities in future years. Home Federal Bank has not been subject to the alternative minimum tax or any such amounts available as credits for carryover.

Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)			Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights (b)			Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)
Equity compensation plans approved by securityholders		183,348	(1)	$	9.85	(1)		18,545
Equity compensation plans not approved by security holders	--			--			--
Total		183,348		$	9.85			18,545

Corporate Dividends-Received Deduction. Home Federal Bancorp may exclude from its income 100% of dividends received from Home Federal Bank as a member of the same affiliated group of corporations. The corporate dividends received deduction is 80% in the case of dividends received from corporations which a corporate recipient owns less than 80%, but at least 20% of the distribution corporation. Corporations which own less than 20% of the stock of a corporation distributing a dividend may deduct only 70% of dividends received.

~~___________________~~ State Taxation

~~(1)~~ Home ~~Includes~~Federal Bancorp is subject to the Louisiana Corporation Income Tax based on our Louisiana taxable income. The Corporation Income Tax applies at graduated rates from 4% upon the first $25,~~214~~000 ~~shares~~of ~~subject~~Louisiana taxable income to ~~restricted~~8% ~~stock~~on ~~grants~~all Louisiana taxable income in excess of $200,000. For these purposes, “Louisiana taxable income” means net income which ~~were~~is ~~not~~earned ~~vested~~by asus within or derived from sources within the State of ~~June~~Louisiana, 30after adjustments permitted under Louisiana law, ~~2009~~including a federal income tax deduction. ~~The~~In ~~weighted-average~~addition, ~~exercise~~Home Federal ~~price~~Bank ~~excludes~~will ~~such~~be ~~restricted~~subject ~~stock~~to ~~grants~~the Louisiana Shares Tax which is imposed on the assessed value of a company’s stock. The formula for deriving the assessed value is to calculate 15% of the sum of:

~~Item~~ (a) 20% ~~13. Certain~~of ~~Relationships~~our ~~and~~capitalized ~~Related~~earnings, ~~Transactions and Director Independence~~plus

~~The~~ (b) 80% ~~information required herein is incorporated by reference from the section captioned "Indebtedness~~ of ~~Management~~our ~~and~~taxable ~~Related~~stockholders’ ~~Party~~equity, ~~Transactions" in the Proxy Statement.~~minus

26 (c) 50% of our real and personal property assessment.

~~Item~~ Various ~~14.~~items ~~Principal~~may ~~Accountant~~also ~~Fees~~be ~~and~~subtracted ~~Services~~in calculating a company’s capitalized earnings.

The information required herein is incorporated by reference from the section captioned "Ratification of Appointment of Independent Registered Public Accounting Firm - Audit Fees" in the Proxy Statement.28

PARTTable IVof Contents

Item 15 1A. ~~Exhibits~~ ~~and~~Risk ~~Financial Statement Schedules~~Factors

~~(a) The~~ Not ~~following documents are filed as part of this report and are incorporated herein by reference from the Registrant's 2009 Annual Report:~~applicable.

~~Report~~Item 1B. ofUnresolved ~~Independent~~Staff ~~Registered Public Accounting Firm.~~Comments

~~Consolidated~~ Not ~~Balance Sheets as of June 30, 2009 and June 30, 2008~~applicable.

~~Consolidated Statements of Operations for the Years Ended June 30, 2009 and 2008~~Item 2. Properties

~~Consolidated~~ We ~~Statements~~currently ofconduct ~~Comprehensive~~business ~~Income~~from ~~for~~our ~~the~~main ~~Years~~office, ~~Ended~~two full-service ~~June~~banking 30offices and one agency office located in Shreveport, ~~2009~~Louisiana. The following table sets forth certain information relating to Home Federal Bank’s offices and ~~2008~~two parcels of land for future branch offices at June 30, 2010.

Consolidated Statements of Changes in Stockholders' Equity for the Years Ended June 30, 2009 and 2008.

Net Book Value

Amount of

Description/Address

Leased/Owned

of Property

Deposits

(In thousands)

Building

624 Market Street
Shreveport, LA

Owned

241

45,241

Building/ATM

6363 Youree Dr.
Shreveport, LA

Owned

(1)

328

51,497

Building/ATM

9300 Mansfield Rd., Suite 101
Shreveport, LA

Leased

—

20,984

Agency Office

6425 Youree Drive, Suite 100
Shreveport, LA

Leased

—

Lot 2

River Crest, Unit #1
Bossier Parish, LA

Owned

436

—

Lot

2555 Viking Drive
Bossier City, LA

Owned

1,526

—

~~Consolidated~~(1) ~~Statements~~The ofbuilding ~~Cash~~is ~~Flows~~owned ~~for~~but the ~~Years~~land ~~Ended~~is ~~June~~subject to an operating lease which was renewed on November 30, ~~2009~~2008 ~~and~~for ~~2008~~a five year period.

~~Notes~~Item 3. toLegal ~~Consolidated Financial Statements.~~Proceedings

~~The~~ Home ~~following~~Federal ~~exhibits~~Bancorp and Home Federal Bank are ~~filed~~not asinvolved ~~part~~in ofany ~~the~~pending ~~Form~~legal ~~10-K,~~proceedings other ~~and~~than ~~this~~nonmaterial ~~list~~legal ~~includes~~proceedings occurring in the ~~Exhibit~~ordinary ~~Index:~~course of business.

No.	Exhibits	Location
3.1	Federal Stock Charter of Home Federal Bancorp, Inc. of Louisiana	(1)
3.2	Amended and Restated Bylaws of Home Federal Bancorp, Inc. of Louisiana	Filed Herewith
4.0	Stock Certificate of Home Federal Bancorp, Inc. of Louisiana	(1)
10.1	Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan	(2)
10.2	Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement	(2)
13.0	Annual Report to Shareholders	Filed Herewith
23.0	Consent of LaPorte, Sehrt, Romig & Hand	Filed Herewith
31.1	Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer	Filed Herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer	Filed Herewith
32.0	Section 1350 Certifications	Filed Herewith

Item 4. Submission of Matters to a Vote of Security Holders

~~______________________________~~ Not applicable.

~~(1) Incorporated herein by reference from Home Federal Bancorp's Registration Statement on Form SB-2, as amended, filed with the SEC on September 15, 2004 (File No. 333-119026).~~29

(2)Table Incorporatedof herein by reference from Home Federal Bancorp's Definitive Schedule 14A filed with the SEC on June 29, 2005 (File No. 000-51117).Contents

27PART II

~~SIGNATURES~~Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

~~Pursuant to the requirements of Section 13 or 15~~ (da) Home ofFederal ~~the~~Bancorp’s ~~Securities~~common ~~Exchange~~stock ~~Act~~is ofquoted ~~1934,~~ on the ~~registrant~~OTC ~~had~~Bulletin Board ~~duly~~under ~~caused this report to be signed on its behalf by~~ the ~~undersigned,~~symbol ~~thereunto duly authorized~~“HFBL.”

~~HOME~~ Presented ~~FEDERAL~~below ~~BANCORP~~is the high and low bid information for Home Federal Bancorp’s common stock and cash dividends declared for the periods indicated. The over-the-counter market quotations reflect inter-dealer prices, ~~INC~~without retail mark-up, mark-down or commission and may not necessarily represent actual transactions. OFInformation ~~LOUISIANA~~relating to bid quotations has been obtained from the Nasdaq Stock Market, Inc.

Date: September 28, 2009


	Stock Price per Share				Cash Dividends
Quarter Ended:	High Bid		Low Bid		per Share

Fiscal 2010:
June 30, 2010	$	9.00	$	7.55	$	0.06
March 31, 2010		8.55		8.55		0.06
December 31, 2009		8.55		7.25		0.06
June 30, 2009		7.75		6.25		0.06
Fiscal 2009:
June 30, 2009		7.50		5.60		0.06
March 31, 2009		7.00		5.60		0.06
December 31, 2008		7.15		5.00		0.05
September 30, 2008		9.30		6.85		0.05

~~By: /s/Daniel~~ At R.September 3, 2010, ~~Herndon~~ Home Federal Bancorp had approximately 149 shareholders of record.

~~Daniel~~The R.information ~~Herndon~~for all equity based and individual compensation arrangements is incorporated by reference from Item 11 hereof.

~~Chairman,~~(b) ~~President,~~Not ~~and Chief Executive Officer~~applicable.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.30

Name	Title	Date
/s/Daniel R. Herndon Daniel R. Herndon	Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)	September 28, 2009
/s/James R. Barlow James R. Barlow	Director	September 28, 2009
/s/Walter T. Colquitt III Walter T. Colquitt III	Director	September 28, 2009
/s/David A. Herndon III David A. Herndon III	Director	September 28, 2009
/s/Scott D. Lawrence Scott D. Lawrence	Director	September 28, 2009
/s/Mark M. Harrison Mark M. Harrison	Director	September 28, 2009
/s/Clyde D. Patterson Clyde D. Patterson	Director and Executive Vice President (Principal Financial and Accounting Officer)	September 28, 2009
/s/Henry M. Hearne Henry M. Hearne	Director	September 28, 2009
/s/Woodus K. Humphrey Woodus K. Humphrey	Director	September 28, 2009
/s/Amos L. Wedgeworth Jr. Amos L. Wedgeworth Jr.	Director	September 28, 2009

28(c) The following table presents information regarding the Company’s stock repurchase program. The Company did not repurchase any shares of common stock during the fourth quarter of fiscal 2010:


			Total Number of	Maximum Number
	Total		Shares Purchased	of Shares That May
	Number of	Average	as Part of Publicly	Yet Be Purchased
	Shares	Price Paid	Announced Plans	Under the Plans or
Period	Purchased	per Share	or Programs	Programs
Month #1 April 1, 2010 — April 30, 2010		$			93,637
Month #2 May 1, 2010 — May 31, 2010	—	—	—		93,637
Month #3 June 1, 2010 — June 30, 2010	—	—	—		93,637

Total	—	$			93,637

Notes to this table:

(a)		On August 26, 2008, the Company issued a press release announcing that the Board of Directors authorized a stock repurchase program (the “program”) on August 13, 2008.

(b)		The Company was authorized to repurchase 10% or 125,000 of the outstanding shares other than shares held by Home Federal Mutual Holding Company.

(c)		The program does not have an expiration date.

Item 6. Selected Financial Data

Set forth below is selected consolidated financial and other data of Home Federal Bancorp. The information at or for the years ended June 30, 2010 and 2009 is derived in part from the audited financial statements that appear in this Form 10-K. The information at or for the years ended June 30, 2008, 2007 and 2006, is also derived from audited financial statements that do not appear in this Form 10-K.


	At June 30,
	2010		2009		2008		2007		2006
	(Dollars in thousands, except per share amounts)

Selected Financial and Other Data:
Total assets	$	185,145	$	154,766	$	137,715	$	118,785	$	114,000
Cash and cash equivalents		8,837		10,007		7,363		3,972		4,930
Securities available for sale		63,688		92,647		96,324		83,752		83,694
Securities held to maturity		2,138		2,184		1,688		1,408		1,425
Loans held-for-sale		13,403		1,277		852
Loans receivable, net		93,056		46,948		28,263		26,689		20,866
Deposits		117,722		86,146		78,359		77,710		71,279
Federal Home Loan Bank advances		31,507		35,997		26,876		12,368		13,417
Total Stockholders’ equity		33,365		31,310		27,874		27,812		28,539


	As of or for the Year Ended June 30,
	2010		2009		2008			2007		2006

Selected Operating Data:
Total interest income	$	9,169	$	7,596	$	7,004		$	6,590	$	5,664
Total interest expense		3,458		3,838		3,968			3,448		2,433

Net interest income		5,711		3,758		3,036			3,142		3,231
Provision for loan losses		36		240		—			1		—

Net interest income after provision for loan losses		5,675		3,518		3,036			3,141		3,231
Total non-interest income		864		363		198			240		145
Total non-interest expense(1)		5,196		3,113		3,359			2,417		2,415

Income (loss) before income tax expense (benefit)		1,343		768		(125	)		964		961
Income tax expense (benefit)		673		253		(43	)		327		327

Net income (loss)	$	670	$	515	$	(82	)	$	637	$	634

Earnings (loss) per share of common stock:
Basic	$	0.21	$	0.16	$	(0.03	)	$	0.19	$	0.19
Diluted	$	0.21	$	0.16	$	(0.03	)	$	0.19	$	0.19

(Footnotes on following page)


	As of or for the Year Ended June 30,
	2010			2009			2008			2007			2006

Selected Operating Ratios(2):
Average yield on interest-earning assets		5.59	%		5.21	%		5.39	%		5.69	%		5.35	%
Average rate on interest-bearing liabilities		2.56			3.32			4.00			3.84			2.98
Average interest rate spread(3)		3.03			1.89			1.39			1.85			2.37
Net interest margin(3)		3.48			2.58			2.33			2.71			3.05
Average interest-earning assets to average interest-bearing liabilities		121.43			126.37			131.06			128.93			129.49
Net interest income after provision for loan losses to non-interest expense		109.22			113.01			90.38			129.95			133.82
Total non-interest expense to average assets		3.08			2.09			2.52			2.00			2.14
Efficiency ratio(4)		79.46			80.21			103.87			71.49			71.53
Return on average assets		0.40			0.35			(0.06	)		0.53			0.56
Return on average equity		2.09			1.70			(0.25	)		2.13			2.10
Average equity to average assets		18.98			20.35			24.83			24.82			26.81
Dividend payout ratio		43.73			57.86			—			52.90			49.37
Asset Quality Ratios(5):
Non-performing loans as a percent of total loans receivable		0.38	%		0.72	%		—	%		0.46	%		—	%
Non-performing assets as a percent of total assets		0.19			0.23			0.04			0.10			—
Allowance for loan losses as a percent of total loans receivable		0.52			0.98			0.82			0.92			1.11
Net charge-offs to average loans receivable		0.02			0.03			—			—			—
Allowance for loan losses as a percent of non-performing loans		135.83			133.52			—			202.59			—
Bank Capital Ratios(5):
Tangible capital ratio		16.47	%		18.93	%		20.21	%		22.79	%		23.48	%
Core capital ratio		16.47			18.93			20.21			22.79			23.48
Total capital ratio		33.67			54.77			73.08			80.63			87.78
Other Data:
Full service offices		4			4			3			3			3
Employees (full-time)		39			22			17			17			17


(1)		Includes merger and stock issuance related expense of $133,000 and $883,000 for the years ended June 30, 2009 and 2008, respectively.

(2)		With the exception of end of period ratios, all ratios are based on average monthly balances during the indicated periods.

(3)		Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets.

(4)		The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income.

(5)		Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General

Our profitability depends primarily on our net interest income, which is the difference between interest and dividend income on interest-earning assets, principally loans, investment securities and interest-earning deposits in other institutions, and interest expense on interest-bearing deposits and borrowings from the Federal Home Loan Bank of Dallas. Net interest income is dependent upon the level of interest rates and the extent to which such rates are changing. Our profitability also depends, to a lesser extent, on non-interest income, provision for loan losses, non-interest expenses and federal income taxes. Home Federal Bancorp, Inc. of Louisiana had net income of $670,000 in fiscal 2010 and net income of $515,000 in fiscal 2009.

Historically, our business consisted primarily of originating single-family real estate loans secured by property in our market area. Typically, single-family loans involve a lower degree of risk and carry a lower yield than commercial real estate, construction, commercial business and consumer loans. During fiscal 2009, we hired three commercial loan officers and began to offer commercial real estate loans, commercial business loans and real estate secured lines of credit which typically have higher rates and shorter terms than single-family loans. Although our loans continue to be primarily funded by certificates of deposit, which typically have a higher interest rate than passbook accounts, it is now our policy to require commercial customers to have a deposit relationship with us, which has increased our balance of NOW accounts in recent periods. The combination of these factors has resulted in higher interest rate spreads in fiscal 2010. Due to the low interest rate environment, we have sold substantially all of our fixed rate single-family residential loan originations in recent periods. We have also sold investment securities as available-for-sale to realize gains in the portfolio. Because of a decrease in our cost of funds and the volume increase of interest earning assets, our net interest margin increased during fiscal 2010 and our net interest income increased to $5.7 million for fiscal 2010 as compared to $3.8 million for fiscal 2009. We expect to continue to emphasize consumer and commercial lending in the future in order to improve the yield on our portfolio. In July, 2009, we began offering security brokerage and advisory services at our new agency office through Tipton Wealth Management. In the future, we expect to continue to diversify our services by adding an annuity product at our branch offices and brokered certificates of deposit also offered through Tipton Wealth Management.

During fiscal 2008, Home Federal Bancorp entered into an Agreement and Plan of Merger with First Louisiana Bancshares, Inc., pursuant to which Home Federal Bancorp would acquire First Louisiana Bancshares and its wholly-owned subsidiary, First Louisiana Bank. Simultaneously with the adoption of the Agreement and Plan of Merger, Home Federal Mutual Holding Company adopted a Plan of Conversion and Reorganization whereby Home Federal Mutual Holding Company would convert from the mutual holding company form of organization to the fully public stock holding company form of organization and offer shares of a new holding company to its members and the general public in a subscription and community offering. At the close of the offering period in August 2008, as a result of market conditions at that time, the orders received were not sufficient to reach the required minimum of the offering range. As a result, Home Federal Bancorp’s second-step conversion and offering terminated and, as of August 14, 2008, Home Federal Bancorp and First Louisiana Bancshares mutually agreed to terminate the Agreement and Plan of Merger. Completion of the merger was contingent on completion of the second-step conversion. During fiscal 2009, Home Federal Bancorp incurred related merger and stock issuance expenses of $133,000.

Home Federal Bancorp’s operations and profitability are subject to changes in interest rates, applicable statutes and regulations and general economic conditions, as well as other factors beyond our control.

Business Strategy

Our business strategy is focused on operating a growing and profitable community-oriented financial institution. Following the conversion and offering, we expect to:


	•	Continue to Grow and Diversify Our Loan Portfolio by, among other things, emphasizing our origination of commercial real estate and business loans. Home Federal Bancorp’s traditional lending


		activity historically had been concentrated on the origination of single-family residential loans and, to a lesser degree, consumer loans. Beginning in 2009, we hired three senior commercial loan officers to develop a loan portfolio more consistent with that of a community bank. At June 30, 2010, our commercial real estate loans amounted to $15.4 million, or 16.4% of the total loan portfolio, compared to $8.2 million, or 17.2% at June 30, 2009. Our commercial business loans at June 30, 2010 amounted to $9.5 million or 10.1% of the total loan portfolio compared to $3.9 million, or 8.2% at June 30, 2009. Commercial real estate, commercial business, construction and development and consumer loans all typically have higher yields and are more interest sensitive than long-term single-family residential mortgage loans. We plan to continue to grow and diversify our loan portfolio, and we intend to continue to grow our holdings of commercial real estate and business loans. In addition, the net proceeds to be received from the conversion and offering will increase our loan-to-one borrower limits, which will permit us to originate and retain larger balance, commercial real estate and business loans.


	•	Diversify Our Products and Services. We intend to continue to emphasize increasing the amount of our commercial business products to provide a full-service banking relationship to our commercial customers. We have also introduced mobile and Internet banking and remote deposit capture, to better serve our commercial clients. Additionally, we have developed new deposit products focused on expanding our deposit base to new types of customers.

	•	Managing Our Expenses. In recent periods, we have incurred significant additional expenses related to personnel and infrastructure. While our total non-interest expense increased $2.1 million in fiscal 2010 compared to 2009, we expect such increases will moderate in the future.

	•	Enhancing Core Earnings. We expect to improve our interest rate spread by emphasizing commercial real estate and business loans which generally bear interest rates higher than residential real estate loans and selling most of our fixed rate residential mortgage loan originations. The weighted average yield on our loan portfolio for the year ended June 30, 2010 was 6.7% and average interest rate spread for the year ended June 30, 2010 was 3.0% as compared to 1.9% for the year ended June 30, 2009. Likewise, we have increased the amount of low cost deposits including non-interest-bearing checking accounts which resulted in a reduction in Home Federal Bancorp’s weighted average cost of its deposits, the primary component of its interest expense for fiscal 2010.

	•	Expanding Our Franchise in our Market Area and Contiguous Communities. We intend to pursue opportunities to expand our market area by opening additional de novo banking offices and possibly, through acquisitions of other financial institutions and banking related businesses (although we have no current plans, understandings or agreements with respect to any specific acquisitions). We expect to focus on contiguous areas to our current locations in Caddo and Bossier Parishes. Our first branch office in North Bossier is expected to open in October 2010 and may develop a site in South Bossier in the future.

	•	Maintain Our Asset Quality. At June 30, 2010, our non-performing assets totaled $360,000 or 0.19% of total assets. We had no real estate owned or troubled debt restructurings at June 30, 2010. We intend to continue to stress maintaining high asset quality after the conversion and offering even as we continue to grow our institution and diversity our loan portfolio. Home Federal Bancorp does not, nor has it in the past, originated or purchased sub-prime mortgage loans.

	•	Cross-Selling Products and Services and Emphasizing Local Decision. We have promoted cross-selling products and services in our branch offices and emphasized our local decision making and streamlined loan approval process. We presently have two full-time loan underwriters at Home Federal Bank.

Critical Accounting Policies

In reviewing and understanding financial information for Home Federal Bancorp, you are encouraged to read and understand the significant accounting policies used in preparing our consolidated financial statements. These policies are described in Note 1 of the notes to our consolidated financial statements included in this

document. Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

Allowance for Loan Losses. We have identified the evaluation of the allowance for loan losses as a critical accounting policy where amounts are sensitive to material variation. The allowance for loan losses represents management’s estimate for probable losses that are inherent in our loan portfolio but which have not yet been realized as of the date of our consolidated balance sheet. It is established through a provision for loan losses charged to earnings. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries are added to the allowance. The allowance is an amount that management believes will cover known and inherent losses in the loan portfolio, based on evaluations of the collectability of loans. The evaluations take into consideration such factors as changes in the types and amount of loans in the loan portfolio, historical loss experience, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, estimated losses relating to specifically identified loans, and current economic conditions. This evaluation is inherently subjective as it requires material estimates including, among others, exposure at default, the amount and timing of expected future cash flows on impacted loans, value of collateral, estimated losses on our commercial and residential loan portfolios and general amounts for historical loss experience. All of these estimates may be susceptible to significant changes as more information becomes available.

While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. Historically, our estimates of the allowance for loan loss have not required significant adjustments from management’s initial estimates. In addition, the Office of Thrift Supervision, as an integral part of their examination processes, periodically reviews our allowance for loan losses. The Office of Thrift Supervision may require the recognition of adjustments to the allowance for loan losses based on their judgment of information available to them at the time of their examinations. To the extent that actual outcomes differ from management’s estimates, additional provisions to the allowance for loan losses may be required that would adversely impact earnings in future periods.

Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and gives current recognition to changes in tax rates and laws. Realizing our deferred tax assets principally depends upon our achieving projected future taxable income. We may change our judgments regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances if our judgments change.

Changes in Financial Condition

Home Federal Bancorp’s total assets increased $30.4 million, or 19.6%, to $185.1 million at June 30, 2010 compared to $154.8 million at June 30, 2009. This increase was primarily due to an increase in loans receivable and loans held-for-sale of $58.2 million, an increase in premises and equipment of $2.1 million, a decrease in available-for-sale securities of $29.0 million, and a decrease in cash and cash equivalents of $1.2 million, compared to the prior year period.

Loans receivable, net increased $46.2 million, or 98.5%, from $46.9 million at June 30, 2009 to $93.1 million at June 30, 2010. The increase in loans receivable, net was attributable primarily to increases in

commercial real estate and commercial business loans, land loans and construction loans which in the aggregate totaled $41.1 million at June 30, 2010 compared to $14.8 million at June 30, 2009, an increase of $26.3 million. One-to-four family residential loans increased $14.2 million, and home equity and second mortgage loans increased $1.7 million at June 30, 2010 compared to the prior year period. At June 30, 2010, the balance of purchased loans approximated $8.9 million, which consisted solely of one-to-four family residential loans, including $8.8 million of loans from the mortgage originator in Arkansas. We did not purchase any loans in fiscal 2009 or 2010.

As part of implementing our business strategy, during the second half of fiscal 2009 we diversified the loan products we offer and increased our efforts to originate higher yielding commercial real estate loans and lines of credit and commercial business loans. In February 2009, we hired three commercial loan officers, including Home Federal Bank’s President and Chief Operating Officer, Mr. Barlow, with over 12 years of commercial banking experience, particularly in the local Shreveport market. Commercial real estate loans and lines of credit and commercial business loans were deemed attractive due to their generally higher yields and shorter anticipated lives compared to single-family residential mortgage loans. As of June 30, 2010, Home Federal Bank had $15.4 million of commercial real estate loans and $9.5 million of commercial business loans compared to $8.2 million of commercial real estate loans and $6.3 million of commercial business loans at June 30, 2009. Although commercial loans are generally considered to have greater credit risk than other certain types of loans, management expects to mitigate such risk by originating such loans in our market area to known borrowers.

Securities available-for-sale decreased $28.9 million, or 31.2%, from $92.6 million at June 30, 2009 to $63.7 million at June 30, 2010. This decrease resulted primarily from the reduction of new investment acquisitions, the sale of securities and normal principal paydowns, offset by market value increases in the portfolio. During the past two years, there have been significant loan prepayments due to the heavy volume of loan refinancing. However, when interest rates were at their cyclical lows, management was reluctant to invest in long-term, fixed rate mortgage loans for the portfolio and instead sold the majority of the long-term, fixed rate mortgage loan production. Prior to fiscal 2010, we attempted to strengthen our interest-rate risk position and favorably structure our balance sheet to take advantage of a rising rate environment by purchasing investment securities classified as available-for-sale.

Cash and cash equivalents decreased $1.2 million, or 12.0%, from $10.0 million at June 30, 2009 to $8.8 million at June 30, 2010. The net decrease in cash and cash equivalents was attributable primarily to the growth in our deposits and sales and principal payments from our securities, offset by the funding of our loan growth and repayment of advances from Federal Home Loan Bank.

Total liabilities increased $28.3 million, or 22.9%, from $123.5 million at June 30, 2009 to $151.8 million at June 30, 2010 due primarily to an increase of $31.5 million, or 36.5%, in our deposits, offset by a decrease in advances from the Federal Home Loan Bank of $4.5 million, or 12.5%. The increase in deposits was attributable primarily to increases in our NOW Accounts, money market accounts and certificates of deposit. Money market accounts increased $11.6 million as the result of an expansion of commercial deposit accounts. Certificates of deposit increased $11.1 million, or 17.7%, from $62.8 million at June 30, 2009 to $73.9 million at June 30, 2010. NOW Accounts increased $9.6 million from $8.5 million at June 30, 2009 to $18.1 million at June 30, 2010. We also received deposits from other financial institutions participating in the U.S. Department of the Treasury’s Troubled Asset Relief Program.

Stockholders’ equity increased $2.1 million, or 6.7%, to $33.4 million at June 30, 2010 from $31.3 million at June 30, 2009, due primarily to a change of $1.7 million in the Company’s accumulated other comprehensive income, and net income of $670,000 for the year ended June 30, 2010, less dividends of $293,000 paid during the year ended June 30, 2010. The change in accumulated other comprehensive income was primarily due to the change in net unrealized loss on securities available for sale due to recent declines in interest rates. The net unrealized loss on securities available-for-sale is affected by interest rate fluctuations. Generally, an increase in interest rates will have an adverse impact while a decrease in interest rates will have a positive impact.

Average Balances, Net Interest Income, Yields Earned and Rates Paid. The following table shows for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be.


				June 30,
	Yield/			2010							2009
	Rate							Average							Average
	at June 30,			Average				Yield/			Average				Yield/
	2010			Balance		Interest		Rate			Balance		Interest		Rate
								(Dollars in thousands)

Interest-earning assets:
Investment securities		4.78	%	$	78,880	$	3,942		5.00	%	$	107,683	$	5,333		4.95	%
Loans receivable		5.70			77,879		5,218		6.70			32,630		2,238		6.86
Interest-earning deposits		0.07			7,163		9		0.13			5,578		25		0.45

Total interest-earning assets		5.20	%		163,922		9,169		5.59	%		145,891		7,596		5.21	%

Non-interest-earning assets					4,787							2,730

Total assets				$	168,709						$	148,621

Interest-bearing liabilities:
Savings accounts		0.42	%		5,588		23		0.41	%		5,653		26		0.46	%
NOW accounts		0.12			11,523		22		0.19			7,896		21		0.27
Money market accounts		1.19			14,377		183		1.27			4,268		38		0.89
Certificate accounts		2.66			67,981		2,010		2.96			61,780		2,378		3.85

Total deposits		1.90			99,469		2,238		2.25			79,597		2,463		3.09
FHLB advances		3.47			35,529		1,219		3.43			35,853		1,375		3.84

Total interest-bearing liabilities		2.23	%		134,998		3,457		2.56	%		115,450		3,838		3.32	%

Non-interest-bearing liabilities					1,696							2,927

Total liabilities					136,694							118,377
Total Stockholders’ Equity(1)					32,015							30,244

Total liabilities and equity				$	168,709						$	148,621

Net interest-earning assets				$	28,924						$	30,441

Net interest income; average interest rate spread(2)						$	5,712		3.03	%			$	3,758		1.89	%

Net interest margin(3)									3.48	%						2.58	%

Average interest-earning assets to average interest-bearing liabilities									121.43	%						126.37	%


(1)		Includes retained earnings and accumulated other comprehensive loss.

(2)		Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on interest-bearing liabilities.

(3)		Net interest margin is net interest income divided by net average interest-earning assets.

Rate/Volume Analysis. The following table describes the extent to which changes in interest rates and changes in volume of interest-related assets and liabilities have affected Home Federal Bancorp’s interest income and interest expense during the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (i) changes in volume (change in volume multiplied by prior year rate), (ii) changes in rate (change in rate multiplied by current year volume), and (iii) total change in rate and volume. The combined effect of changes in both rate and volume has been allocated proportionately to the change due to rate and the change due to volume.


	2010 vs. 2009									2009 vs. 2008
	Increase (Decrease) Due to									Increase (Decrease) Due to
							Total									Total
							Increase									Increase
	Rate			Volume			(Decrease)			Rate			Volume			(Decrease)
	(In thousands)

Interest income:
Investment securities	$	39		$	(1,427	)	$	(1,388	)	$	(98	)	$	651		$	553
Loans receivable, net		(126	)		3,103			2,977			(118	)		284			166
Interest-earning deposits		(23	)		7			(16	)		(104	)		(23	)		(127	)

Total interest-earning assets		(110	)		1,683			1,573			(320	)		912			592

Interest expense:
Savings accounts		(3	)		(1	)		(4	)		(1	)		5			4
NOW accounts		(9	)		10			1			3			2			5
Money market accounts		55			90			145			21			5			26
Certificate accounts		(605	)		239			(366	)		(508	)		(99	)		(607	)

Total deposits		(562	)		338			(224	)		(485	)		(87	)		(572	)
FHLB advances		(145	)		(12	)		(157	)		(249	)		691			442

Total interest-bearing liabilities		(707	)		326			(381	)		(734	)		604			(130	)

Increase (Decrease) in net interest income	$	597		$	1,357		$	1,954		$	414		$	308		$	722

Comparison of Operating Results for the Years Ended June 30, 2010 and 2009

General. Net income amounted to $670,000 for the year ended June 30, 2010, reflecting a change of $155,000 compared to net income of $515,000 for the year ended June 30, 2009. This change was due to an increase of $501,000 in non-interest income and a $2.2 million increase in net interest income after provision for loan losses, offset by an increase of $2.1 million in non-interest expense and an increase of $420,000 in the provision for income taxes.

Net Interest Income. Net interest income amounted to $5.7 million for fiscal year 2010, an increase of $1.9 million, or 52.0%, compared to $3.8 million for fiscal year 2009. The increase was due primarily to an increase of $1.6 million in total interest income, and a $380,000 decrease in interest expense.

The average interest rate spread increased from 1.89% for fiscal 2009 to 3.03% for fiscal 2010 while the average balance of net interest-earning assets decreased from $30.4 million to $28.9 million during the same periods. The percentage of average interest-earning assets to average interest-bearing liabilities decreased to 121.4% for fiscal 2010 compared to 126.4% for fiscal 2009. The increase in the average interest rate spread reflects the lower interest rates paid on interest bearing liabilities and management’s decision to temporarily invest in lower rate securities available for sale rather than long-term, fixed rate residential mortgage loans. Additionally, Home Federal Bancorp’s average cost of funds decreased 76 basis points in fiscal 2010 compared to fiscal 2009 as the Federal Reserve was reducing short-term rates. Lower certificate of deposit interest rates in our market area led us to decrease the average rates paid on certificates of deposit 89 basis points in fiscal 2010 compared to fiscal 2009. Net interest margin increased to 3.4% in fiscal 2010 compared to 2.58% for fiscal 2009.

Interest income increased $1.6 million, or 21.1%, to $9.2 million for fiscal 2010 compared to $7.6 million for fiscal 2009. Such increase was primarily due to an increase in the average balance of total interest earning assets as well as an increase in the average yield. The increase in average yields on interest earning assets reflects an increase in higher yielding loans during fiscal 2010. The decrease in the average balance of investment securities was due to security sales and normal principal payments while no purchase of new securities were made. The increase in the average balance of loans receivable was primarily due to new loans originated by our new commercial lending activities.

Interest expense decreased $380,000, or 9.9%, to $3.5 million for fiscal 2010 compared to fiscal 2009 primarily as a result of decreases in the average rates paid on interest-bearing liabilities, partially offset by increases in the average balance of interest-bearing deposits.

Provision for Loan Losses. The allowance for loan losses is established through a provision for loan losses charged to earnings as losses are estimated to have occurred in our loan portfolio. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and prevailing economic conditions. The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information or events, it is probable that we will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. When a loan is impaired, the measurement of such impairment is based upon the fair value of the collateral of the loan. If the fair value of the collateral is less than the recorded investment in the loan, we will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard. Substandard loans are those loans which are in excess of ninety days delinquent. 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. When, in management’s judgment, the borrower’s ability to make interest and principal payments is back to normal, the loan is returned to accrual status.

A provision of $240,000 was made to the allowance in the last quarter of fiscal 2009, primarily in response to the increase in commercial lending during the period. A provision of $36,000 was made to the allowance in the last quarter of fiscal 2010, also in response to our increase in commercial lending during this period. We held two residential mortgage loan at June 30, 2010 classified as substandard compared to one at June 30, 2009.

Non-Interest Income. Non-interest income amounted to $864,000 for the year ended June 30, 2010, an increase of $501,000, or 138.0%, compared to non-interest income of $363,000 for the year ended June 30, 2009. The increase was primarily due to a $471,000 increase in gain on sale of securities, and a $642,000 increase in gain on sale of loans, partially offset by an impairment charge on investment securities of $627,000.

Non-Interest Expense. Non-interest expense increased $2.1 million, or 67.7%, in fiscal 2010, largely due to increases in compensation and benefits of $1.6 million, legal and examination fees of $124,000, occupancy expenses of $176,000 and miscellaneous non-interest expenses of $295,000. The increase in compensation and benefits expense was primarily attributable to the hiring of new loan officers, additional personnel and operating costs associated with our new and expanding commercial loan activities. Non-interest expense also increased as a result of increases in advertising expense, and other general overhead expenses, including printing and office supplies expense. Occupancy expense increased primarily due to our new agency office which opened in July 2009.

Provision for Income Tax Expense. The provision for income taxes amounted to $673,000 and $253,000 for the fiscal years ended June 30, 2010 and 2009, respectively. Our effective tax rate was 50.11% for fiscal 2010 and 32.75% for fiscal 2009. The effective tax rate for fiscal 2010 was above the maximum 34% corporation tax rate because no future deferred tax benefit on investment losses could be recognized.

Exposure to Changes in Interest Rates

Our ability to maintain net interest income depends upon our ability to earn a higher yield on interest-earning assets than the rates we pay on deposits and borrowings. Our interest-earning assets consist primarily of securities available-for-sale and long-term residential and commercial mortgage loans which have fixed rates of interest. Consequently, our ability to maintain a positive spread between the interest earned on assets and the interest paid on deposits and borrowings can be adversely affected when market rates of interest rise.

Although long-term, fixed-rate mortgage loans made up a significant portion of our interest-earning assets at June 30, 2010, we sold a substantial amount of our loans we originated for sale and maintained a significant portfolio of securities available-for-sale during the past few years in order to better position Home Federal Bancorp for a rising rate environment. At June 30, 2010 and 2009, securities available-for-sale amounted to $63.7 million and $92.6 million, respectively, or 34.4% and 59.9%, respectively, of total assets at such dates. Although this asset/liability management strategy has adversely impacted short-term net income, it provides us with greater flexibility to reinvest such assets in higher-yielding single-family, consumer and commercial business loans in a rising interest rate environment.

Quantitative Analysis. The Office of Thrift Supervision provides a quarterly report on the potential impact of interest rate changes upon the market value of portfolio equity. Management reviews the quarterly reports from the Office of Thrift Supervision which show the impact of changing interest rates on net portfolio value. Net portfolio value is the difference between incoming and outgoing discounted cash flows from assets, liabilities, and off-balance sheet contracts.

Net Portfolio Value. Our interest rate sensitivity is monitored by management through the use of a model which internally generates estimates of the change in our net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the present value of expected cash flows from assets, liabilities, and off-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The following table sets forth our NPV as of June 30, 2010:


									NPV as % of Portfolio
Change in Interest Rates in	Net Portfolio Value								Value of Assets
Basis Points (Rate Shock)	Amount		$ Change			% Change			NPV Ratio			Change
	(Dollars in thousands)

300	$	30,323	$	(7,943	)		(20.76	)%		16.84	%		(2.82	)%
200		33,578		(4,688	)		(12.25	)		18.11			(1.55	)
100		36,349		(1,917	)		(5.01	)		19.09			(0.57	)
Static		38,266		—			—			19.66			—
(50)		38,636		370			0.97			19.69			0.03
(100)		38,661		396			1.03			19.60			(0.05	)

Qualitative Analysis. Our ability to maintain a positive “spread” between the interest earned on assets and the interest paid on deposits and borrowings is affected by changes in interest rates. Our fixed-rate loans generally are profitable if interest rates are stable or declining since these loans have yields that exceed our cost of funds. If interest rates increase, however, we would have to pay more on our deposits and new borrowings, which would adversely affect our interest rate spread. In order to counter the potential effects of dramatic increases in market rates of interest, we have underwritten our mortgage loans to allow for their sale in the secondary market. Total loan originations amounted to $168.7 million for fiscal 2010 and $50.7 million for fiscal 2009, while loans sold amounted to $71.6 million and $16.2 million during the same respective periods. More significantly, we have invested excess funds from loan payments and prepayments and loan sales in investment securities classified as available-for-sale. As a result, Home Federal Bancorp is not as

susceptible to rising interest rates as it would be if its interest-earning assets were primarily comprised of long-term fixed rate mortgage loans. With respect to its floating or adjustable rate loans, Home Federal Bancorp writes interest rate floors and caps into such loan documents. Interest rate floors limit our interest rate risk by limiting potential decreases in the interest yield on an adjustable rate loan to a certain level. As a result, we receive a minimum yield even if rates decline farther and the interest rate on the particular loan would otherwise adjust to a lower amount. Conversely, interest rate ceilings limit the amount by which the yield on an adjustable rate loan may increase to no more than six percentage points over the rate at the time of origination. Finally, we intend to place a greater emphasis on shorter-term consumer loans and commercial business loans in the future.

Liquidity and Capital Resources

Home Federal Bancorp maintains levels of liquid assets deemed adequate by management. Our liquidity ratio averaged 53.21% for the quarter ended June 30, 2010. We adjust our liquidity levels to fund deposit outflows, repay our borrowings and to fund loan commitments. We also adjust liquidity as appropriate to meet asset and liability management objectives.

Our primary sources of funds are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, loan sales and earnings and funds provided from operations. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. We set the interest rates on our deposits to maintain a desired level of total deposits. In addition, we invest excess funds in short-term interest-earning accounts and other assets, which provide liquidity to meet lending requirements. Our deposit accounts with the Federal Home Loan Bank of Dallas amounted to $2.8 million and $3.8 million at June 30, 2010 and 2009, respectively.

A significant portion of our liquidity consists of securities classified as available-for-sale and cash and cash equivalents. Our primary sources of cash are net income, principal repayments on loans and mortgage-backed securities and increases in deposit accounts. If we require funds beyond our ability to generate them internally, we have borrowing agreements with the Federal Home Loan Bank of Dallas which provide an additional source of funds. At June 30, 2010, we had $31.5 million in advances from the Federal Home Loan Bank of Dallas and had $61.1 million in additional borrowing capacity.

At June 30, 2010, the Company had outstanding loan commitments of $14.2 million to originate loans. At June 30, 2010, certificates of deposit scheduled to mature in less than one year, totaled $38.4 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal, in a rising interest rate environment. We intend to utilize our high levels of liquidity to fund our lending activities. If additional funds are required to fund lending activities, we intend to sell our securities classified as available-for-sale as needed.

Home Federal Bank is required to maintain regulatory capital sufficient to meet tangible, core and risk-based capital ratios of at least 1.5%, 3.0% and 8.0%, respectively. At June 30, 2010, Home Federal Bank exceeded each of its capital requirements with ratios of 16.47%, 16.47% and 33.67%, respectively.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, as defined by Securities and Exchange Commission rules, and have not had any such arrangements during the two years ended June 30, 2010. See Notes 8 and 15 to the Notes to Consolidated Financial Statements contained in this Annual Report.

Impact of Inflation and Changing Prices

The consolidated financial statements and related financial data presented herein regarding Home Federal Bancorp have been prepared in accordance with accounting principles generally accepted in the United States

of America which generally require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation. Unlike most industrial companies, virtually all of our assets and liabilities are monetary in nature. As a result, interest rates generally have a more significant impact on Home Federal Bancorp’s performance than does the effect of inflation. Interest rates do not necessarily move in the same direction or in the same magnitude as the prices of goods and services, since such prices are affected by inflation to a larger extent than interest rates.

Item 7A. Quantitative and Qualitative Disclosure About Market Risk

Not applicable.

Item 8. Financial Statements and Supplementary Data

To the Board of Directors

Home Federal Bancorp, Inc.

of Louisiana and Subsidiary

Shreveport, Louisiana

Report of Independent Registered Public Accounting Firm

We have audited the accompanying consolidated balance sheets of Home Federal Bancorp, Inc. of Louisiana (the Company) and its wholly-owned subsidiary Home Federal Bank (the Bank) as of June 30, 2010 and 2009, and the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Home Federal Bancorp, Inc. of Louisiana and Subsidiary, as of June 30, 2010 and 2009, and the consolidated results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

We were not engaged to examine management’s assessment of the effectiveness of Home Federal Bancorp, Inc. of Louisiana and Subsidiary’s internal control over financial reporting as of June 30, 2010, included in the Company’s 10-K filing with the Securities and Exchange Commission. Accordingly, we do not express an opinion thereon.

A Professional Accounting Corporation

Metairie, Louisiana

August 18, 2010

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2010 AND 2009


	2010			2009
	(In thousands)

ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $4,698 and $8,508 for 2010 and 2009, Respectively)	$	8,837		$	10,007
Securities Available-for-Sale		63,688			92,647
Securities Held-to-Maturity		2,138			2,184
Loans Held-for-Sale		13,403			1,277
Loans Receivable, Net		93,056			46,948
Accrued Interest Receivable		560			543
Premises and Equipment, Net		3,049			982
Other Assets		414			178

Total Assets	$	185,145		$	154,766


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits	$	117,722		$	86,146
Advances from Borrowers for Taxes and Insurance		205			137
Advances from Federal Home Loan Bank of Dallas		31,507			35,997
Other Accrued Expenses and Liabilities		1,425			1,082
Deferred Tax Liability		921			94

Total Liabilities		151,780			123,456

Stockholders’ Equity
Preferred Stock — No Par Value; 2,000,000 Shares Authorized; None Issued and Outstanding
Common Stock — $.01 Par Value; 8,000,000 Shares Authorized; 3,558,958 Shares Issued; 3,348,237 Shares Outstanding at June 30, 2010 and 3,373,464 Shares Outstanding at June 30, 2009		14			14
Additional Paid-In Capital		13,655			13,608
Treasury Stock, at Cost — 210,721 Shares at June 30, 2010; 185,494 Shares at June 30, 2009		(2,094	)		(1,887	)
Unearned ESOP Stock		(826	)		(883	)
Unearned RRP Trust Stock		(145	)		(269	)
Retained Earnings		20,665			20,288
Accumulated Other Comprehensive Income		2,096			439

Total Stockholders’ Equity		33,365			31,310

Total Liabilities and Stockholders’ Equity	$	185,145		$	154,766

The accompanying notes are an integral part of these consolidated financial statements.

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED JUNE 30, 2010 AND 2009


	2010			2009
	(In thousands, except per share data)

Interest Income
Loans, Including Fees	$	5,218		$	2,238
Mortgage-Backed Securities		3,874			5,221
Investment Securities		69			112
Other Interest-Earning Assets		8			25

Total Interest Income		9,169			7,596

Interest Expense
Deposits		2,238			2,463
Federal Home Loan Bank Borrowings		1,220			1,375

Total Interest Expense		3,458			3,838

Net Interest Income		5,711			3,758
Provision for Loan Losses		36			240

Net Interest Income after Provision for Loan Losses		5,675			3,518

Non-Interest Income
Gain on Sale of Loans		644			2
Gain on Sale of Securities		796			325
Other Income		55			36
Impairment Charge on Securities		(627	)		—
Loss on Sale of Real Estate		(4	)		—

Total Non-Interest Income		864			363

Non-Interest Expense
Compensation and Benefits		3,383			1,783
Occupancy and Equipment		406			230
Franchise and Bank Shares Tax		150			150
Merger and Stock Issuance Costs		—			133
Other Expenses		1,257			817

Total Non-Interest Expense		5,196			3,113

Income Before Income Taxes		1,343			768
Provision for Income Tax Expense		673			253

Net Income	$	670		$	515

Earnings Per Share
Basic	$	0.21		$	0.16
Diluted	$	0.21		$	0.16

The accompanying notes are an integral part of these consolidated financial statements.

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED JUNE 30, 2010 AND 2009


	2010			2009
	(In thousands)

Net Income	$	670		$	515

Other Comprehensive Income, Net of Tax
Unrealized Holding Gains Arising During the Period		1,968			3,480
Reclassification Adjustment for Gains Included in Net Income		(311	)		(407	)

Total Other Comprehensive Income		1,657			3,073

Total Comprehensive Income	$	2,327		$	3,588

The accompanying notes are an integral part of these consolidated financial statements.

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED JUNE 30, 2010 AND 2009


												Accumulated
			Additional			Unearned						Other			Unearned						Total
	Common		Paid-In			ESOP			Retained			Comprehensive			RRP Trust			Treasury			Stockholders’
	Stock		Capital			Stock			Earnings			Income (Loss)			Stock			Stock			Equity
	(In thousands)

Balance — June 30, 2008	$	14	$	13,567		$	(940	)	$	20,071		$	(2,634	)	$	(395	)	$	(1,809	)	$	27,874
ESOP Compensation Earned		—		(16	)		57			—			—			—			—			41
Distribution of RRP Trust Stock		—		—			—			—			—			126			—			126
Dividends Paid		—		—			—			(298	)		—			—			—			(298	)
Stock Options Vested		—		57			—			—			—			—			—			57
Acquisition of Treasury Stock		—		—			—			—			—			—			(78	)		(78	)
Net Income		—		—			—			515			—			—			—			515
Other Comprehensive Income, Net of Applicable Deferred Income Taxes		—		—			—			—			3,073			—			—			3,073

Balance — June 30, 2009		14		13,608			(883	)		20,288			439			(269	)		(1,887	)		31,310
ESOP Compensation Earned		—		(10	)		57			—			—			—			—			47
Distribution of RRP Trust Stock		—		—			—			—			—			124			—			124
Dividends Paid		—		—			—			(293	)		—			—			—			(293	)
Stock Options Vested		—		57			—			—			—			—			—			57
Acquisition of Treasury Stock		—		—			—			—			—			—			(207	)		(207	)
Net Income		—		—			—			670			—			—			—			670
Other Comprehensive Income, Net of Applicable Deferred Income Taxes		—		—			—			—			1,657			—			—			1,657

Balance — June 30, 2010	$	14	$	13,655		$	(826	)	$	20,665		$	2,096		$	(145	)	$	(2,094	)	$	33,365

The accompanying notes are an integral part of these consolidated financial statements.

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2010 AND 2009


	2010			2009
	(In thousands)

Cash Flows from Operating Activities
Net Income	$	670		$	515
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities
Gain on Sale of Loans		(644	)		(2	)
Loss on Sale of Real Estate		4			—
Net Amortization and Accretion on Securities		(302	)		(290	)
Amortization of Deferred Loan Fees		(275	)		(18	)
Provision for Loan Losses		36			240
Depreciation of Premises and Equipment		126			71
Gain on Sale of Securities		(796	)		(325	)
ESOP Compensation Expense		47			41
Deferred Income Tax (Benefit)		(27	)		203
Stock Option Expense		57			57
Recognition and Retention Plan Expense		118			125
Impairment Charge on Investments		627			—
Changes in Assets and Liabilities:
Origination and Purchase of Loans Held-for-Sale		(83,679	)		(16,582	)
Sale and Principal Repayments on Loans Held-for-Sale		72,198			16,159
Accrued Interest Receivable		(17	)		8
Other Operating Assets		(249	)		(125	)
Other Operating Liabilities		348			229

Net Cash (Used in) Provided by Operating Activities		(11,758	)		306

Cash Flows from Investing Activities
Loan Originations and Principal Collections, Net		(46,275	)		(18,923	)
Proceeds from Sale of Real Estate		174			—
Deferred Loan Fees Collected		419			25
Acquisition of Premises and Equipment		(2,371	)		(172	)
Activity in Available-for-Sale Securities:
Proceeds from Sales of Securities		17,466			19,373
Principal Payments on Mortgage-Backed Securities		14,474			13,842
Purchases		—			(24,269	)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		81			114
Purchases		(34	)		(610	)
Proceeds from Disposition of Foreclosed Real Estate		—			42

Net Cash Used in Investing Activities		(16,066	)		(10,578	)

Cash Flows from Financing Activities
Net Increase in Deposits		31,576			7,786
Proceeds from Advances from Federal Home Loan Bank		21,000			47,950
Repayment of Advances from Federal Home Loan Bank		(25,490	)		(38,829	)
Dividends Paid		(293	)		(298	)
Acquisition of Treasury Stock		(207	)		(78	)
Net Increase (Decrease) in Advances from Borrowers for Taxes and Insurance		68			(40	)
Stock Purchase Deposit Escrow		—			4,556
Stock Purchase Deposit Escrow Refunded		—			(8,131	)

Net Cash Provided by Financing Activities		26,654			12,916

Net (Decrease) Increase in Cash and Cash Equivalents		(1,170	)		2,644
Cash and Cash Equivalents, Beginning of Year		10,007			7,363

Cash and Cash Equivalents, End of Year	$	8,837		$	10,007

Supplemental Disclosure of Cash Flow Information
Interest Paid on Deposits and Borrowed Funds	$	3,501		$	3,826
Income Taxes Paid		614			89
Market Value Adjustment for Gain on Securities Available-for-Sale		2,511			4,655

The accompanying notes are an integral part of these consolidated financial statements.

HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1.	Summary of Significant Accounting Policies

Nature of Operations

On January 18, 2005, Home Federal Bank (the Bank), formerly known as Home Federal Savings and Loan Association, completed its reorganization to the mutual holding company form of organization and formed Home Federal Bancorp, Inc. of Louisiana (the Company) to serve as the stock holding company for the Bank. In connection with the reorganization, the Company sold 1,423,583 shares of its common stock in a subscription and community offering at a price of $10.00 per share. The Company also issued 60% of its outstanding common stock in the reorganization to Home Federal Mutual Holding Company of Louisiana, or 2,135,375 shares.

The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of Thrift Supervision. The Bank provides financial services to individuals, corporate entities and other organizations through the origination of loans and the acceptance of deposits in the form of passbook savings, certificates of deposit, and demand deposit accounts. Services are provided by four offices, all of which are located in Shreveport, Louisiana.

The Bank is subject to competition from other financial institutions, and is also subject to the regulations of certain Federal and State agencies and undergoes periodic examinations by those regulatory authorities.

Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Home Federal Bank. All significant intercompany balances and transactions have been eliminated.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and deferred taxes.

Significant Group Concentrations of Credit Risk

Most of the Company’s activities are provided to customers of the Bank by four offices, all of which are located in the city of Shreveport, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.


Note 1.	Summary of Significant Accounting Policies (Continued)

At June 30, 2010 and 2009, cash and cash equivalents consisted of the following:


	2010		2009
	(In thousands)

Cash on Hand	$	320	$	406
Demand Deposits at Other Institutions		6,625		4,919
Federal Funds Sold		1,892		4,682

Total	$	8,837	$	10,007

Securities

Securities are being accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 320, Investments — Debt and Equity Securities. ASC 320 requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically.

Investments in non-marketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.

Securities that are acquired and held principall

Filing Compare · HOME FEDERAL BANCORP, INC. OF LOUISIANA