SOURCE: Home Federal Bancorp, Inc.

February 15, 2007 13:00 ET

Home Federal Bancorp, Inc. Declares Quarterly Cash Dividend

NAMPA, ID -- (MARKET WIRE) -- February 15, 2007 -- Home Federal Bancorp, Inc. (NASDAQ: HOME), the parent company of Home Federal Bank, announced today that its Board of Directors declared a quarterly cash dividend of $0.055 per share on its common stock. The dividend will be paid on March 15, 2007 to stockholders of record as of March 1, 2007.

"Home Federal has performed well by continuing to gain market share and taking advantage of growth opportunities," said Daniel L. Stevens, President, Chairman, and CEO of the Company. "The result, I am pleased to report, will be the distribution of our eighth consecutive dividend since becoming public in December of 2004," continued Stevens. "We remain confident and enthusiastic about our prospects in the Southwest Idaho marketplace and beyond."

Home Federal Bancorp's first quarter highlights (at or for the periods ended December 31, 2006 compared to December 31, 2005):

--  Interest and dividend income increased 17% to $10.9 million
--  Total assets increased 10% to $767.6 million
--  Net loans increased 16% to $511.6 million
--  Non-performing assets decreased from $180,000 to zero
    
Stevens said Home Federal's 2007 business plan calls for continued growth, profitability and leveraging the company's capital.

Home Federal Bancorp is the majority-owned subsidiary of Home Federal MHC, a federally chartered mutual holding company, which owns 59.1% of the Company's outstanding shares. Home Federal MHC has filed a notice with the Office of Thrift Supervision of its intent to waive the receipt of dividends paid on the shares it owns of the Company.

Home Federal Bancorp, Inc. is a federally chartered savings and loan holding company headquartered in Nampa, Idaho. It is the parent company of Home Federal Bank, a federal savings bank that was originally organized in 1920 as a building and loan association. The Company serves the Treasure Valley region of southwestern Idaho that includes Ada, Canyon, Elmore and Gem Counties, through 15 full-service banking offices and two mortgage loan centers. The Company's common stock is traded on the NASDAQ Global Market under the symbol "HOME." The Company's stock is also included in the America's Community Bankers NASDAQ Index. For more information, visit the Company web site at www.myhomefed.com.

Forward-Looking Statements:

Statements in this news release regarding future events, performance or results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe harbors of the PSLRA. Actual results could be materially different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ include but are not limited to: the ability to maintain current dividend payments or increase dividend payouts to stockholders, regulatory capital requirements, future earnings and cash flow of the Company, regulatory changes and general economic conditions. Additional factors that could cause actual results to differ materially are disclosed in Home Federal Bancorp, Inc.'s recent filings with the Securities and Exchange Commission, including but not limited to its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements are accurate only as of the date released, and we do not undertake any responsibility to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Contact Information

  • Contact:
    Home Federal Bancorp, Inc.
    Daniel L. Stevens
    Chairman, President & CEO
    Robert A. Schoelkoph
    SVP, Treasurer & CFO
    208-466-4634
    www.myhomefed.com